7 November 2017
2QFY18 Results Update | Sector: Cement
Prism Cement
Buy
BSE SENSEX
33,371
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, INRm
Free float (%)
S&P CNX
10,350
PRSC IN
Weak performance by cement; TBK profitability improves
503
Volume growth muted:
Standalone revenue was flat YoY (-12% QoQ) at
37.2/0.6
INR11.6b (est. of INR13.2b) in 2QFY18. Cement volumes stood at 1.12mt
130 / 72
(-3% YoY; -24% QoQ) due to the sand mining ban in UP/Bihar and partially in
-2/-19/-14
MP – the company’s focus markets. We expect cement realizations to be
43
lower by 2-3% QoQ, given lower prices in its focus markets.
25.1
CMP: INR111
TP: INR128(+15%)
Financials & Valuations (INR b)
2018E 2019E
Y/E Mar
Net Sales
52.0
55.0
EBITDA
3.7
5.4
PAT
1.4
2.5
EPS (INR)
2.7
5.0
Gr. (%)
905
81
BV/Sh (INR)
21.1
25.5
RoE (%)
13.7
21.3
RoCE (%)
10.6
14.0
P/E (x)
40.5
22.3
P/BV (x)
5.2
4.3
2020E
55.5
6.5
3.3
6.6
33
31.6
23.1
17.5
16.8
3.5
Estimate change
TP change
Rating change
TBK losses reduced:
TBK segment’s revenue fell 9% YoY (-3% QoQ) to
INR4.15b (est. of INR4.54b), as the prior-year period included excise duty in
revenues. Volumes increased YoY after declining in the previous quarters.
EBIT loss in TBK reduced to INR50m from INR181m in 2QFY17. The segment
recorded near EBITDA breakeven in the quarter.
EBITDA hurt by lower realization, cost push:
EBITDA rose 52% YoY (-51%
QoQ) to INR376m, with the margin at 3.2% (-2.53pp QoQ; +1.1pp YoY).
Cement costing increased led by higher power & fuel cost/t (higher petcoke
prices). Cement EBITDA/ton stood at INR331 (-INR20 YoY; -INR316 QoQ) on
weak realizations/cost push. PAT was -INR239m v/s -INR213m in 2QFY17.
RMC segment:
RMC sales stood at INR3.1b (-5% QoQ, +3% YoY). EBIT loss
for RMC was INR34m, as against a loss of INR66m in 1QFY18.
Valuation view:
Our SOTP value for PRSC is INR128/share (EV of
USD110/ton, 5x FY20E RMC EBITDA and 9x FY20E TBK EBITDA). PRSC is a
pure play on a recovery in central India, which is likely to see a strong
improvement in profitability, driven by higher consolidation over the last 12-
18 months. Additionally, the region is unlikely to see meaningful capacity
addition for the next 18-24 months, while there could be some pricing
volatility over the next 2-3 quarters due to the ramp-up of JPA’s assets.
However, the key monitorable would be a turnaround in TBK’s profitability,
which has seen a marked improvement in 2QFY18. Maintain
Buy.
FY18
2Q
3QE
4QE
1.12
1.23
1.63
-3.4
5.0
4.7
3,939 4,069 5,127
-10.7
-4.0
13.7
-14.7
3.3
26.0
11,624 12,818 14,321
0.2
13.0
1.0
376
594 1,485
3.2
4.6
10.4
360
360
380
464
427
401
209
313
400
-239
120 1,104
0
36
235
0.0
30.0
21.3
-239
84
869
-239
84
869
-2.1
0.7
6.1
FY17
5.21
-1.5
4,508
8.1
50,196
-4.9
2,811
5.6
1,602
1,834
906
281
106
37.8
175
175
0.3
(INR Million)
FY18
FY18
2QE
5.47
1.20
5.0
2.0
4,508
4570
0.0
5.2
-1.1
51,984 13,207
3.6
13.9
3,217
509
6.2
3.9
1,479
380
1,761
410
1,250
313
1,226
32
345
10
28.2
30.0
881
23
881
23
1.7
0.2
Var
(%)
-7
-14
-12
-26
Quarterly Performance (Standalone)
Y/E March
FY17
1Q
2Q
3Q
4Q
Sales Dispatches (m ton)
1.53
1.16
1.17
1.56
YoY Change (%)
12.3 -13.7
-4.3
14.6
Realization (INR/ton)
4,160 4,413 4,239 4,509
YoY Change (%)
9.2
5.1
3.6
29.3
QoQ Change (%)
19.3
6.1
-3.9
6.4
Net Sales
12,869 11,599 11,345 14,186
YoY Change (%)
-1.3 -11.5
-9.2
2.3
EBITDA
952
248
251 1,163
Margins (%)
7.4
2.1
2.2
8.2
Depreciation
409
399
401
394
Interest
554
392
544
344
Other Income
229
331
231
312
PBT
219
-213
-463
738
Tax
63
0
7
36
Rate (%)
28.6
0.0
-1.6
4.9
Reported PAT
156
-213
-470
702
Adj PAT
156
-213
-470
702
Margins (%)
1.2
-1.8
-4.1
4.9
1Q
1.48
-3.0
4,620
11.1
2.5
13,221
2.7
762
5.8
380
469
328
241
74
30.7
167
167
1.3
-839
-1156
Abhishek Ghosh – Research analyst
(Abhishek.Ghosh@MotilalOswal.com); +91 22 3982 5436
Pradnya Ganar – Research analyst
(Pradnya.Ganar@motilaloswal.com); +91 22 3980 4322
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.

Prism Cement
Exhibit 1: Volume declined by 3% YoY
Realizations (INR/ton)
Volumes (mt)
Exhibit 2: Cement EBITDA/ton flat YoY
1.5
1.2 1.2
1.6 1.5
1.1
1,000
800
600
400
200
3,300
2,800
Cement EBITDA (INR/Ton) (LHS)
Cement cost(INR/t) (RHS)
4,300
3,800
1.3 1.4 1.4
0.9
1.2 1.1
1.4 1.5
1.3 1.3
1.5
1.4 1.3
1.2
1.4
Source: Company, MOSL
Source: Company, MOSL
Exhibit 3: RMC business increased 3% YoY in 2QFY18
RMC Revenues (INR m)
5
3
0
1
0
-1
0
0
0
PBIT Margin (%)
2
1 1
2
4 3
-1 0
3
-2
Exhibit 4: TBK revenues declined by 9% YoY in 2QFY18
TBK Revenues (INR m)
PBIT Margin (%)
2
-1
1.0
0.5
0.3 0.4 0.1 -0.2
-0.7 -0.8 -1.3
-1.2
-1.5
-1.6
-2.7
-4.1-4.0
-6.7
-1.2
-5.2
-5.0
Source: Company, MOSL
Source: Company, MOSL
Exhibit 5: EBITDA trend
7.4
3.1
-0.2
-2.3
7.5 8.1
EBITDA (INR m)
5.4 4.7
2.0
2.2
4.2
5.3
2.1 2.2
EBITDA Margins (%)
8.2
7.4
5.8
3.2
3.0
Source: Company, MOSL
7 November 2017
2

Prism Cement
Valuation and views
Growth headroom limited, but market mix strong:
Given ~80% capacity
utilization and limited expansion plans, PRSC’s cement business offers limited
scope for a growth outperformance. However, it has an advantage in terms of
market mix (north MP, east UP, and Bihar) – low supply visibility, high
consolidation, and better regional growth visibility. Benefits of various measures
– higher pet coke mix, blending and better power efficiency – have begun
translating into improved profitability.
TBK segment – return of cost competitiveness taking longer:
Despite its strong
brand, the drag in PRSC’s TBK (tiles, bath and kitchen) segment profitability has
been an overhang. Operational issues (disruption in energy supply and cost),
which led to severe cost inflation in the past, are behind. PRSC has installed
three coal gassifiers, drilled onshore micro gas wells in Andhra Pradesh, and put
in place connectivity of natural gas in Karnataka. Yet, margins are taking longer
to improve (losses v/s the normal 6-8%) due to (a) weak demand and (b) a delay
in premiumization plan (shift in product mix towards vitrified tiles).
Profitability and balance sheet strength to get strategic priority over growth:
Operational overhangs of the past are now behind. Strategy would ride on
prudent capital allocation and cost competitiveness to normalize profitability.
Conversion of cash on the back of limited capex should drive deleveraging.
Valuation view:
Our SOTP value for PRSC is INR128/share (EV of USD110/ton, 5x
FY20E RMC EBITDA and 9x FY20E TBK EBITDA). PRSC is a pure play on a recovery
in central India, which is likely to see a strong improvement in profitability,
driven by higher consolidation over the last 12-18 months. Additionally, the
region is unlikely to see meaningful capacity addition for the next 18-24 months,
while there could be some pricing volatility over the next 2-3 quarters due to
the ramp-up of JPA’s assets. However, the key monitorable would be a
turnaround in TBK’s profitability, which has seen a marked improvement in
2QFY18. Maintain Buy.
7 November 2017
3

Prism Cement
Financials and Valuations
Income Statement (Consolidated)
Y/E March
Net Sales
Change (%)
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income - Rec.
PBT bef. EO Exp.
EO Expense/(Income)
PBT after EO Exp.
Current Tax
Deferred Tax
Tax Rate (%)
Reported PAT
PAT Adj for EO items
Change (%)
Margin (%)
2013
47,427
5.8
45,085
95.1
2,342
4.9
1,598
744
1,903
313
-846
-16
-830
-235
0
28.3
-595
-607
115.3
-1.3
2014
49,443
4.3
48,244
97.6
1,199
2.4
1,766
-567
2,415
363
-2,619
-1,341
-1,278
-462
0
36.1
-817
-1,673
175.7
-3.4
2015
55,718
12.7
53,098
95.3
2,621
4.7
1,368
1,252
2,536
556
-729
-621
-108
-255
0
236.7
147
996
-159.6
1.8
2016
51,684
-7.2
48,822
94.5
2,862
5.5
1,841
1,021
2,814
2,070
277
39
237
235
-251
-6.5
253
295
-70.4
0.6
2017
49,607
-4.0
46,558
93.9
3,049
6.1
1,918
1,131
2,166
1,437
402
-15
417
299
-24
65.8
143
137
-53.4
0.3
2018E
51,984
4.8
48,267
92.8
3,717
7.2
1,479
2,238
1,761
1,250
1,726
0
1,726
345
0
20.0
1,381
1,381
905.1
2.7
(INR Million)
2019E
54,953
5.7
49,552
90.2
5,401
9.8
1,642
3,759
1,720
1,300
3,339
0
3,339
835
0
25.0
2,504
2,504
81.3
4.6
2020E
55,506
1.0
49,002
88.3
6,504
11.7
1,712
4,792
1,660
1,300
4,432
0
4,432
1,108
0
25.0
3,324
3,324
32.7
6.0
Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Deferred Liabilities
Total Loans
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Provisions
Net Current Assets
Appl. of Funds
E: MOSL Estimates
2013
5,034
5,864
10,897
919
16,084
27,900
31,984
11,890
20,094
839
3,782
14,983
4,674
4,779
375
5,155
12,599
12,164
434
2,384
27,900
2014
5,034
5,047
10,081
452
18,333
28,866
34,553
13,607
20,946
626
3,473
14,083
4,622
5,258
525
3,679
12,535
12,130
405
1,548
28,866
2015
5,034
4,658
9,691
136
18,828
28,655
35,418
14,935
20,483
688
3,378
15,744
5,500
5,574
797
3,873
14,113
13,648
465
1,631
28,655
2016
5,034
4,371
9,405
0
18,524
27,929
22,526
2,092
20,433
683
3,296
15,752
4,717
6,087
1,152
3,797
15,000
14,285
715
752
27,929
2017
5,034
4,523
9,557
0
16,308
25,864
23,585
3,693
19,892
945
3,819
12,698
3,997
6,055
667
1,979
15,039
14,518
521
-2,342
25,864
2018E
5,034
5,610
10,643
0
16,308
26,951
25,731
5,173
20,558
300
3,819
11,435
4,747
5,063
-1,540
3,165
12,710
12,659
52
-1,275
26,951
(INR Million)
2019E
5,034
7,819
12,853
0
14,308
27,161
27,231
6,815
20,416
300
3,819
11,498
4,919
4,919
-1,454
3,115
12,422
12,297
125
-924
27,161
2020E
5,034
10,848
15,882
0
9,308
25,190
29,231
8,527
20,704
300
3,819
8,576
4,637
4,803
-3,844
2,981
11,759
11,592
166
-3,183
25,190
7 November 2017
4

Prism Cement
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
EV/Ton (US$)
Dividend Yield (%)
Return Ratios (%)
RoIC
RoE
RoCE
Working Capital Ratios
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Leverage Ratio (x)
Current Ratio
Debt/Equity
2013
-1.2
2.0
21.6
0.0
0.0
2014
-3.3
0.2
20.0
0.0
0.0
2015
2.0
4.7
19.3
0.0
0.0
56.1
23.6
5.8
1.3
27.9
147.1
0.0
2.4
-5.4
3.0
1.8
37.0
35.1
1.2
1.5
-1.5
-15.9
-0.5
1.7
34.8
36.7
1.1
1.8
-7.1
10.1
-8.7
1.9
38.2
35.8
1.1
1.9
2016
0.6
4.2
18.7
0.0
0.0
189.7
26.2
5.9
1.4
25.4
145.7
0.0
4.7
3.1
11.7
1.8
32.1
37.9
1.1
2.0
2017
0.3
4.1
19.0
0.0
0.0
406.6
27.2
5.8
1.4
23.1
156.8
0.0
1.8
1.4
3.3
1.8
28.8
39.4
0.8
1.7
2018E
2.7
5.7
21.1
0.5
21.3
40.5
19.5
5.2
1.4
19.8
155
0.5
8.0
13.7
10.6
2.0
34.1
32.7
0.9
1.5
2019E
5.0
8.2
25.5
0.5
11.8
22.3
13.5
4.3
1.3
13.2
100
0.5
11.5
21.3
14.0
2.0
33.6
30.5
0.9
1.1
2020E
6.6
10.0
31.6
0.5
8.9
16.8
11.1
3.5
1.2
10.6
150
0.5
14.5
23.1
17.5
2.1
30.6
29.1
0.7
0.6
Cash Flow Statement
Y/E March
Oper. P/L before Tax
Interest/Dividends Recd.
Depreciation
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
EO expense
CF from Operating incl EO
(inc)/dec in FA
Free Cash Flow
(Pur)/Sale of Investments
CF from investments
Issue of Shares
(Inc)/Dec in Debt
Interest Paid
Dividend Paid
CF from Fin. Activity
Inc/Dec of Cash
Add: Beginning Balance
Closing Balance
E: MOSL Estimates
2013
744
313
1,598
-2
-2,275
377
-24
353
-2,697
-2,344
118
-2,579
7
3,401
-1,903
0
1,504
-191
565
374
2014
-567
363
1,766
-5
987
2,543
-133
2,410
-2,356
54
310
-2,046
0
2,249
-2,415
0
-166
198
375
525
2015
1,252
556
1,368
-62
190
3,304
316
3,620
-927
2,693
95
-832
-536
494
-2,536
0
-2,578
209
525
693
2016
1,021
2,070
1,841
-483
1,233
5,682
-234
5,448
12,898
18,345
82
12,980
-539
-304
-2,814
0
-3,657
14,771
797
15,568
2017
1,131
1,437
1,918
-551
2,609
6,544
-359
6,185
-1,322
4,863
-524
-1,846
9
-2,216
-2,166
0
-4,373
-33
1,152
1,119
2018E
2,238
1,250
1,479
-345
-3,273
1,349
0
1,349
-1,500
-151
0
-1,500
0
0
-1,761
-294
-2,056
-2,207
667
-1,540
(INR Million)
2019E
3,759
1,300
1,642
-835
-266
5,600
0
5,600
-1,500
4,100
0
-1,500
0
-2,000
-1,720
-294
-4,014
86
-1,540
-1,454
2020E
4,792
1,300
1,712
-1,108
-131
6,564
0
6,564
-2,000
4,564
0
-2,000
0
-5,000
-1,660
-294
-6,954
-2,390
-1,454
-3,844
7 November 2017
5

Prism Cement
Corporate profile
Company description
Prism Cement Limited is one of India’s leading
integrated Building Materials Company, with a wide
range of products from cement, ready-mixed
concrete, tiles, bath products to kitchens. The
company has three Divisions, viz. Prism Cement, H
& R Johnson (India), and RMC Readymix (India).
Cement business has a capacity of 7mt.
Exhibit 1: Sensex rebased
Source: MOSL/Bloomberg
Exhibit 2: Shareholding pattern (%)
Sep-17
Promoter
DII
FII
Others
74.9
9.4
6.4
9.4
Jun-17
74.9
9.3
6.5
9.3
Sep-16
74.9
6.5
9.6
9.0
Source: Capitaline
Exhibit 3: Top holders
Holder Name
HDFC TRUSTEE COMPANY LIMITED-HDFC
EQUITY FUND
NATIONAL WESTMINSTER BANK PLC AS
TRUSTEE OF THE JUPITER INDIA FUND
ICICI PRUDENTIAL VALUE FUND - SERIES 4
CLSA GLOBAL MARKETS PTE. LTD.
MORGAN STANLEY ASIA (SINGAPORE) PTE.
% Holding
7.8
1.7
1.5
1.1
1.0
Source: Capitaline
Note: FII Includes depository receipts
Exhibit 4: Top management
Name
Shobhan M Thakore
Vijay Aggarwal
Vivek Krishan Agnihotri
Atul R Desai
Joydeep Mukherjee
Aneeta S Kulkarni
Designation
Chairman
Managing Director
Executive Director
Executive Director & CEO
Executive Director & CEO
Company Secretary
Exhibit 5: Directors
Name
Rajan Raheja
James Brooks
Name
Ameeta A Parpia
Source: Capitaline
*Independent
Exhibit 6: Auditors
Name
D C Dave & Co
G M Kapadia & Co
Savita Jyoti Associates
Type
Cost Auditor
Statutory
Secretarial Audit
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY18
FY19
FY20
MOSL
forecast
2.7
5.0
6.6
Consensus
forecast
2.5
5.5
6.9
Variation (%)
9.9
-9.6
-3.6
Source: Bloomberg
Source: Capitaline
7 November 2017
6

Prism Cement
NOTES
7 November 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.
Prism Cement
Disclosure of Interest Statement
Analyst ownership of the stock
Prism Cement
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
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