1 November 2017
2QFY18 Results Update | Sector: Utilities
JSW Energy
BSE SENSEX
33,600
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, INRm/ Vol m
Free float (%)
S&P CNX
10,441
JSW IN
1,640
139.9 / 2.2
88 / 54
8/24/7
601
25.0
CMP: INR85
TP: INR51(-40%)
Sell
In-line; sharp reduction in net debt and interest cost
Merchant prices higher, but coal prices also increasing; Maintain Sell
JSW Energy’s (JSWE) 2QFY18 EBITDA declined 8% YoY to INR8.8b (in-line). PAT was
up 37% YoY to INR2.9b due to certain one-offs in other income (+230% YoY to
INR1.7b). Standalone EBITDA increased ~23% YoY (to INR2b) due to higher
realization and low-cost imported coal inventory. However, it was more than offset
by weakness at the Barmer power plant. Other key highlights:
Impressive reduction in net debt of INR10b QoQ to ~INR127b on receivables
and some recovery from JPVL (INR1.5b of INR10b). Balance sheet at 1.13x D:E
is very strong.
Reduced interest cost by 72bp QoQ/104bp YoY to 9.3%.
It has applied for long-term PPA with the regulator of Haryana and Punjab for
open capacity of 376MW at the Karcham Wangtoo plant. Our estimates do not
change materially, as our merchant price estimate is similar to the PPA rates.
JSWE will set-up a 36MW captive power plant for JSW Cement at a capex of
INR1.6b over the next two years. Tariff will be on a regulated structure.
On the electric vehicle venture, it has signed an MoU with the Gujarat state to
set-up manufacturing capacity. It is in process of developing partnerships,
product and technology strategy, and hiring talent.
Upgrade estimates on other income and lower interest cost; Maintain Sell
We have increased merchant price estimate for 3Q, but coal prices have also
increased. Resultantly, EBITDA has minor changes. PAT is upgraded by 21%/22% to
INR6.6b/5.4b for FY18/19E on beat in other income and lower interest cost. JSWE’s
merchant power capacities are exposed to the over-supplied power market and
imported coal prices. The venture into EVs, though exciting, has increased the risk
profile. We are building in planned investment of INR40b over the next three-years,
but do not ascribe any value to this investment. For single-digit RoEs, the stock is
trading at 1.3x FY19E P/BV. We maintain
Sell
with an SOTP-based TP of INR51/sh.
1Q
22,316
-8.9
13,628
8,688
38.9
2,428
3,963
1,025
3,323
1,114
33.5
36
2,173
2,173
-40.7
FY18
2Q
3QE
20,490 21,598
0.1
13.4
11,667 14,729
8,824 6,869
43.1
31.8
2,449 2,446
3,910 3,850
1,705
300
4,170
873
1,202
236
28.8
27.0
-1
60
2,969
577
2,969
577
36.6
169.7
FY17
4QE
23,230
24.8
17,033
6,197
26.7
2,377
3,614
573
778
-82
-10.6
-30
891
891
267.9
82,634
-17.1
49,391
33,244
40.2
9,692
16,848
2,170
8,875
2,685
30.3
-106
6,295
6,295
-51.2
FY18E
87,635
6.1
57,057
30,577
34.9
9,700
15,337
3,604
9,144
2,469
27.0
66
6,609
6,609
5.0
FY18 vs Est
2QE
(%)
20,671
-1
1.0
11,993
-3
8,678
2
42.0
2,473
-1
3,924
0
600
184
2,881
45
778
27.0
60
2,043
45
2,043
-6.0
Financials & Valuations (INR b)
Y/E Mar
2017 2018E 2019E
Net Sales
826.3 876.3 888.7
EBITDA
33.2
30.6
29.8
PAT
6.3
6.6
5.4
EPS (INR)
3.8
4.0
3.3
Gr. (%)
-51.5
5.1 -18.7
BV/Sh (INR)
63.2
64.8
65.7
RoE (%)
6.3
6.3
5.0
RoCE (%)
8.6
8.2
7.8
P/E (x)
22.2
21.2
26.0
P/BV (x)
1.3
1.3
1.3
Estimate change
TP change
Rating change
Quarterly Performance (Consolidated) – INR million
Y/E March
Net Sales
YoY Change (%)
Total Expenditure
EBITDA
Margins (%)
Depreciation
Interest
Other Income
PBT
Tax
Rate (%)
MI and Associates
Reported PAT
Adj PAT
YoY Change (%)
1Q
24,500
16.3
13,328
11,173
45.6
2,398
4,293
416
4,899
1,248
25.5
-14
3,665
3,665
32.1
FY17
2Q
3Q
4Q
20,470 19,043 18,621
-19.1 -28.1 -30.6
10,843 12,468 12,752
9,627 6,575 5,869
47.0
34.5
31.5
2,471 2,444 2,379
4,356 4,229 3,970
516
505
732
3,316
407
253
1,167
249
22
35.2
61.2
8.6
-25
-56
-11
2,174
214
242
2,174
214
242
-42.3 -93.3 -92.1
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.
Dhruv Muchhal – Research Analyst
(Dhruv.Muchhal@MotilalOswal.com); +91 22 6129 1549
Sanjay Jain – Research Analyst
(SanjayJain@MotilalOswal.com); +91 22 6129 1523

JSW Energy
Standalone EBITDA was up ~23% YoY to INR2b on higher realization (up 27% YoY
to INR4.43/kWh), shutdown at low margin Maharashtra PPA at Ratnagiri plant
and benefit of low cost coal inventories. Lower O&M expenses also aided
EBITDA. Generation was down 5% YoY to 2.1bu.
Barmer EBITDA declined ~27% YoY to INR2.2b due to revision in the tariff order
(not in the base). EBITDA run-rate was similar QoQ.
Hydro EBITDA was marginally higher by ~2% YoY to ~INR5b, as higher generation
(of 9.3% YoY) was offset by lower realization.
Exhibit 1: Generation and PLFs
FY16
Ratnagiri
Deemed PLF
Vijaynagar
Deemed PLF
Barmer
Deemed PLF
Hydro
Deemed PLF
Total
MU
%
MU
%
MU
%
MU
%
1Q
1,574
66.0
1,405
81.0
1,501
80.0
0
0.0
4,480
2Q
2,038
84.0
1,430
81.0
1,504
86.0
585
72.0
5,557
3Q
1,955
81.0
1,689
96.0
1,715
85.0
609
24.0
5,968
4Q
2,078
92.0
1,734
99.0
1,676
86.0
406
14.0
5,894
1Q
1,987
86.0
1,292
74.0
1,434
85.0
1,702
69.0
6,415
FY17
2Q
1,699
82.0
533
31.0
1,377
86.0
2,347
94.0
5,956
3Q
1,407
65.0
927
53.0
1,628
85.0
682
24.0
4,644
4Q
971
47.0
1,317
77.0
1,387
82.0
342
14.0
4,017
FY18
1Q
1,556
71.0
1,190
69.0
1,445
86.0
1,944
78.0
6,400
2Q
1,361
57.0
760
42.6
-36.1
43.0
1,430
3.8
-1.0
83.0
2,565
9.3
31.9
90.0
6,116
2.7
-4.4
Source: MOSL, Company
YoY
%
-19.9
QoQ
%
-12.5
Exhibit 2: Generation and PLFs
FY16
1Q
Standalone
Units
Realization
Fuel cost
Other cost
EBITDA
EBITDA
Barmer
Units
Realization
EBITDA
EBITDA
Hydro
Units
Realization
EBITDA
EBITDA
Consolidated
Realization
Fuel (ex-hydro)
MU
2,979
INR/kWh 4.19
INR/kWh 2.52
INR/kWh 0.21
INR/kWh 1.46
INR m
4,361
MU
1,501
INR/kWh 4.14
INR/kWh 2.35
INR m
3,530
MU
INR/kWh
INR/kWh
INR m
INR/kWh
INR/kWh
4.62
2.17
2Q
3,468
4.06
2.45
0.22
1.39
4,826
1,504
4.13
2.31
3,480
585
3.16
3.01
1,760
4.48
2.15
3Q
3,644
4.28
2.34
0.17
1.77
6,463
1,715
3.60
1.83
3,140
609
4.22
3.78
2,300
4.38
2.05
4Q
3,812
4.17
2.26
0.18
1.73
6,603
1,676
4.18
1.89
3,170
406
4.14
3.15
1,280
4.48
2.16
1Q
3,279
3.84
2.31
0.17
1.37
4,480
1,434
4.17
1.92
2,750
1,702
2.61
2.31
3,940
3.76
2.21
2Q
2,232
3.48
2.53
0.21
0.74
1,652
1,377
4.68
2.22
3,060
2,347
2.23
2.10
4,930
3.37
2.40
FY17
3Q
2,334
3.75
2.87
0.27
0.60
1,402
1,628
4.00
1.78
2,890
682
4.13
3.67
2,500
4.02
2.51
FY18
4Q
2,288
4.43
3.19
0.57
0.66
1,520
1,387
4.35
2.11
2,930
342
5.91
4.91
1,680
4.64
2.74
1Q
2,746
4.09
3.05
0.35
0.69
1,882
1,445
3.72
1.56
2,260
1,944
2.64
2.57
4,990
3.49
2.51
2Q
2,121
4.43
3.10
0.37
0.96
2,028
1,430
3.72
1.56
2,230
2,565
2.02
1.96
5,020
YoY
%
-5.0
27.2
22.6
74.5
29.2
22.8
3.8
-20.6
-29.8
-27.1
9.3
-9.4
-6.8
1.8
QoQ
%
-22.8
8.3
1.5
6.8
39.5
7.7
-1.0
0.1
-0.3
-1.3
31.9
-23.5
-23.8
0.6
3.35
-0.6
-3.9
2.64
9.7
4.8
Source: MOSL, Company
1 November 2017
2

JSW Energy
Exhibit 3: SOTP valuation
NPV of PPAs
Merchant capacity
Vijaynagar
Ratnagiri
Karcham Wangtoo
Jaigarh Power Transco
JSW Steel
Total value
Less: Net Debt
Add: Advance to JPVL @ 80% of value o/s
Equity value (FY20E discounted @ 14%)
No. of shares (mn)
Value per share (INR/sh)
MW
2,977
1,463
860
427
176
FY17
FY18E
FY19E
FY20E
131,351
87,780
5,092
15,759
5,092
17,334
5,092
19,068
74,001
1,640
45
84,361
1,640
51
5,092
20,975
245,198
155,794
6,768
96,172
1,640
59
Source: MOSL, Company
1 November 2017
3

JSW Energy
Financials and Valuations
Income Statement
Y/E Mar
Net Sales
Change (%)
EBITDA
EBITDA Margin (%)
Depreciation
EBIT
Interest
Other Income
Extraordinary items
PBT
Tax
Tax Rate (%)
Min. Int. & Assoc. Share
Reported PAT
Adjusted PAT
Change (%)
2013
89,343
46.0
27,932
31.3
6,615
21,317
9,628
2,134
-1,966
11,857
2,733
23.1
-29
9,037
9,037
431.4
2013
16,401
45,637
62,038
120,726
1,524
184,740
160,288
21,335
138,953
9,772
2,714
52,062
4,415
18,487
10,825
18,334
19,041
14,837
4,204
33,021
184,740
2014
87,054
-2.6
32,514
37.3
8,100
24,415
12,059
2,022
-3,777
10,600
2,836
26.8
51
7,547
7,547
-16.5
2014
16,401
49,311
65,712
114,643
1,933
182,791
166,247
30,006
136,241
6,146
2,535
47,416
4,158
11,976
12,016
19,266
9,653
5,449
4,204
37,763
182,791
2015
93,802
7.8
36,234
38.6
7,898
28,337
11,375
2,301
-342
18,921
5,150
27.2
86
13,495
13,495
78.8
2015
16,401
58,780
75,180
105,127
2,930
183,784
169,858
38,047
131,810
4,536
2,327
55,430
5,483
11,723
17,376
20,849
10,416
6,062
4,353
45,014
183,784
2016
98,245
4.7
40,261
41.0
8,543
31,719
14,981
2,351
1,500
20,589
5,563
27.0
129
14,474
14,474
7.3
2016
16,268
80,773
97,041
166,607
4,341
268,002
204,963
8,443
196,520
3,206
9,369
41,763
6,358
29,063
4,327
2,015
8,079
7,566
513
33,684
249,237
2017
82,634
-15.9
33,244
40.2
9,692
23,552
16,848
2,170
0
8,875
2,690
30.3
-65
6,290
6,290
-56.5
2017
16,280
87,405
103,685
158,803
5,801
268,312
206,625
18,167
188,457
5,269
13,599
40,322
5,967
21,828
10,032
2,495
6,897
6,335
562
33,425
247,200
2018E
87,635
6.1
30,577
34.9
9,700
20,877
15,337
3,604
0
9,144
2,469
27.0
86
6,609
6,609
5.1
2018E
16,280
90,058
106,338
155,803
6,349
268,599
212,625
27,867
184,757
5,269
13,599
34,775
5,282
14,406
12,592
2,495
5,822
5,259
562
28,953
239,027
2019E
88,873
1.4
29,751
33.5
10,140
19,611
15,342
3,185
0
7,454
2,013
27.0
86
5,376
5,376
-18.7
2019E
16,280
91,478
107,758
151,803
6,797
266,552
223,625
38,007
185,617
5,269
13,599
31,935
5,357
14,609
9,474
2,495
5,889
5,327
562
26,046
236,980
(INR Million)
2020E
96,089
8.1
31,974
33.3
11,180
20,794
15,388
2,842
0
8,248
2,227
27.0
86
5,956
5,956
10.8
Balance Sheet
Y/E Mar
Share Capital
Reserves
Net Worth
Debt
Deferred Tax
Total Capital Employed
Gross Fixed Assets
Less: Acc Depreciation
Net Fixed Assets
Capital WIP
Investments
Current Assets
Inventory
Debtors
Cash & Bank
Loans & Adv, Others
Curr Liabs & Provns
Curr. Liabilities
Provisions
Net Current Assets
Total Assets
(INR Million)
2020E
16,280
93,478
109,757
165,803
7,292
283,133
249,625
49,187
200,437
5,269
13,599
34,091
5,792
15,795
10,008
2,495
6,285
5,723
562
27,806
253,560
1 November 2017
4

JSW Energy
Financials and Valuations
Ratios
Y/E Mar
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation(x)
P/E
Cash P/E
Price / Book Value
EV/Sales
EV/EBITDA
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
Turnover Ratios (%)
Asset Turnover (x)
Debtors (No. of Days)
Inventory (No. of Days)
Leverage Ratios (%)
Net Debt/Equity (x)
2013
6.7
10.7
37.8
2.0
29.8
2014
6.9
11.8
40.1
2.0
29.0
2015
8.4
13.3
45.8
2.0
23.7
14.1
9.0
2.6
0.0
7.8
1.7
18.5
11.4
17.7
12.8
19.6
13.9
2016
7.9
13.1
59.2
2.0
25.3
8.8
5.3
1.2
0.0
6.9
2.9
15.1
12.6
2017
3.8
9.7
63.2
2.0
52.1
22.2
8.8
1.3
0.0
8.7
2.3
6.3
8.6
2018E
4.0
9.9
64.8
2.0
49.6
21.2
8.6
1.3
0.0
9.3
2.3
6.3
8.2
2019E
3.3
9.5
65.7
2.0
61.0
26.0
9.0
1.3
0.0
9.5
2.3
5.0
7.8
2020E
3.6
10.4
66.9
2.0
55.1
23.5
8.2
1.3
0.0
9.2
2.3
5.5
7.8
0.5
75.5
18.0
1.8
0.5
50.2
17.4
1.5
0.5
45.6
21.3
1.2
0.4
108.0
23.6
1.7
0.3
96.4
26.4
1.4
0.3
60.0
22.0
1.3
0.3
60.0
22.0
1.3
0.3
60.0
22.0
1.4
Cash Flow Statement
Y/E Mar
Adjusted EBITDA
Non cash opr. exp (inc)
(Inc)/Dec in Wkg. Cap.
Tax Paid
Other operating activities
CF from Op. Activity
(Inc)/Dec in FA & CWIP
Free cash flows
(Pur)/Sale of Invt
Others
CF from Inv. Activity
Inc/(Dec) in Net Worth
Inc / (Dec) in Debt
Interest Paid
Divd Paid (incl Tax) & Others
CF from Fin. Activity
Inc/(Dec) in Cash
Add: Opening Balance
Closing Balance
2013
27,932
-1,185
-6,874
-2,627
0
17,246
-9,783
7,464
0
1,420
-8,363
0
3,819
-9,710
-953
-6,844
2,040
8,786
10,825
2014
32,514
-2,341
-4,894
-2,588
0
22,691
-4,940
17,751
0
2,030
-2,910
0
-2,701
-12,052
-3,838
-18,591
1,191
10,825
12,016
2015
36,234
861
1,322
-4,489
0
33,929
-6,772
27,156
0
1,475
-5,297
0
-8,124
-11,328
-3,820
-23,272
5,359
12,016
17,376
2016
40,261
3,006
-4,902
-2,989
0
35,376
-349
35,027
0
-31,671
-32,020
0
2,768
-14,891
-4,102
-16,224
-12,868
17,376
4,508
2017
33,244
1,539
1,818
-2,387
0
34,214
-3,715
30,499
0
469
-3,246
0
-5,289
-16,796
-3,927
-26,012
4,957
4,327
9,284
2018E
30,577
0
-1,428
-1,920
0
27,229
-6,000
21,229
0
3,604
-2,396
0
-3,000
-15,337
-3,936
-22,273
2,560
10,032
12,592
2019E
29,751
0
-210
-1,565
0
27,975
-11,000
16,975
0
3,185
-7,815
0
-4,000
-15,342
-3,936
-23,278
-3,117
12,592
9,474
(INR Million)
2020E
31,974
0
-1,226
-1,732
0
29,016
-26,000
3,016
0
2,842
-23,158
0
14,000
-15,388
-3,936
-5,324
534
9,474
10,008
1 November 2017
5

Disclosures:
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Securities Ltd. (MOSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOSL, the Research Entity (RE) as defined in the Regulations, is engaged in the business of providing Stock
broking services, Investment Advisory Services, Depository participant services & distribution of various financial products. MOSL is a subsidiary company of Motilal Oswal Financial Service Ltd. (MOFSL). MOFSL is a listed
public company, the details in respect of which are available on
www.motilaloswal.com.
MOSL is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National Stock
Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Metropolitan Stock Exchange Of India Ltd. (MSE) for its stock broking activities & is Depository participant with Central Depository Services Limited
(CDSL) & National Securities Depository Limited (NSDL) and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products. Details of associate entities of Motilal Oswal Securities Limited are
available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/Associate%20Details.pdf
Pending Regulatory Enquiries against Motilal Oswal Securities Limited by SEBI:
SEBI pursuant to a complaint from client Shri C.R. Mohanraj alleging unauthorized trading, issued a letter dated 29th April 2014 to MOSL notifying appointment of an Adjudicating Officer as per SEBI regulations to hold
inquiry and adjudge violation of SEBI Regulations; MOSL requested SEBI to provide all documents, records, investigation report relied upon by SEBI which were referred in Show Cause Notice and also sought personal
hearing. The matter is currently pending.
MOSL, it’s associates, Research Analyst or their relative may have any financial interest in the subject company. MOSL and/or its associates and/or Research Analyst may have beneficial ownership of 1% or more securities in
the subject company at the end of the month immediately preceding the date of publication of the Research Report.
MOSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a)
from time to time, have a long or short position in, act as principal in, and buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and
earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other
potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s),
as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOSL even though there might exist an inherent conflict of interest in some of the stocks mentioned in the
research report.
Research Analyst may have served as director/officer, etc. in the subject company in the last 12 month period. MOSL and/or its associates may have received any compensation from the subject company in
the past 12 months.
In the last 12 months period ending on the last day of the month immediately preceding the date of publication of this research report, MOSL or any of its associates may have:
a)
managed or co-managed public offering of securities from subject company of this research report,
b)
received compensation for investment banking or merchant banking or brokerage services from subject company of this research report,
c)
received compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company of this research report.
d)
Subject Company may have been a client of MOSL or its associates during twelve months preceding the date of distribution of the research report.
MOSL and it’s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report. To enhance transparency, MOSL has incorporated a Disclosure
of Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the report. MOSL and / or its affiliates do and seek to do business including investment banking with
companies covered in its research reports. As a result, the recipients of this report should be aware that MOSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research
Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.
Terms & Conditions:
This report has been prepared by MOSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and may not be altered in any way, transmitted to,
copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of MOSL. The report is based on the facts, figures and information that are considered
true, correct, reliable and accurate. The intent of this report is not recommendatory in nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not
been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice.
The report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments for the clients. Though
disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOSL will not treat recipients as customers by virtue of their receiving this report.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or
indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
JSW Energy
Disclosure of Interest Statement
Analyst ownership of the stock
JSW Energy
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
1 November 2017
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