8 November 2017
Results Update | Sector: Utilities
CESC
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/ Vol m
Free float (%)
S&P CNX
10,350
CESC IN
CMP: INR991
TP: INR1,360(+38%)
133
130.4 / 2.0
1080 / 539
-9/-9/45
608
50.1
In-line results; Spencer’s sales weak, EBITDA positive
Demerger process on track; maintain Buy
Financials & Valuations (INR b)
Y/E Mar
FY17 FY18E FY19E
Net Sales
139.0 148.3 157.7
EBITDA
31.6
36.7
38.5
PAT
6.9
11.8
13.2
EPS (INR)
51.9
88.9
99.3
Gr. (%)
14.7
71.4
11.7
BV/Sh (INR)
797.4 874.3 961.6
RoE (%)
6.5
10.6
10.8
RoCE (%)
7.3
8.4
8.6
P/E (x)
19.0
11.1
9.9
P/BV (x)
1.2
1.1
1.0
CESC’s standalone PAT grew 2.1% YoY to INR2.47b, marginally below estimate.
T&D loss (provisional) declined 100bp YoY (30bp QoQ) to 10.8%. Sales grew 4%
YoY to 2.75BU. Realization was up 2.8% YoY to INR7.57/kWh. The tariff for
FY18 is pending regulatory approval, delaying cost and capex recovery.
However, this was offset by impressive reduction in T&D losses (drives
incentive income) and power exports.
Spencer – sales down, but EBITDA positive on efficiency gains:
Average sales
declined 5% while same-store sales declined 1% YoY, as it continues to face
GST-led disruption. The change in liquor license policy in AP and Telengana,
and renovations at a couple of larger format stores were additional drags.
EBITDA was, however, positive (negative margin of 1.3% in FY17) on various
cost initiatives. Store count and area were unchanged QoQ at 124 and
1,186ksf, respectively. Sales have recovered from October and licensing issue is
resolved in one state. The target is to achieve positive PAT in 4QFY18.
Dhariwal – operations stable:
Dhariwal (600MW) operated at PLF of 43.81%.
The capacity under PPA is operating as expected.
Estimate change
TP change
Rating change
Demerger to unlock value; maintain Buy
The NCLT-directed shareholder meeting for approval of the demerger is scheduled
on December 15, 2017. The demerger into four separate businesses would drive
value through unlocking the potential of the distribution and retail businesses.
Distribution business will get re-rated on reduced volatility in earnings and cost of
equity. Spencers too will command better valuation after expected turnaround in
FY18. CESC has already received exchange and SEBI approval for demerger. Listing
is likely sometime in March/April 2018. The SOTP value is INR1,360/share. Buy.
FY17
2Q
3Q
20,160 16,200
13.8
5.3
5,910
3,150
34.9
5.7
29.3
19.4
990
980
1,160
1,080
320
300
600
-960
3,480
2,350
1,060
830
30.5
35.3
2,420
1,520
2,420
1,520
24.1
35.7
FY18
2Q
3QE
20,880 16,368
3.6
1.0
5,050
3,975
-14.6
26.2
24.2
24.3
1,080
1,028
1,260
1,197
350
275
-90
0
3,150
2,024
680
445
21.6
22.0
2,470
1,579
2,470
1,579
2.1
3.9
FY18
2QE
18,869
-6.4
5,253
-11.1
27.8
1,039
1,286
293
0
3,222
709
22.0
2,513
2,513
3.8
Var.
(%)
11
-4
Quarterly Performance (Standalone) – INR million
Y/E March
Sales
Change (%)
EBITDA
Change (%)
As of % Sales
Depreciation
Interest
Other Income
Regulatory (inc)/exp
PBT
Tax
Effective Tax Rate (%)
Reported PAT
Adjusted PAT
Change (%)
1Q
20,120
18.1
5,110
32.4
25.4
960
1,150
260
620
2,640
900
34.1
1,740
1,740
14.5
4Q
15,720
6.3
2,040
-57.1
13.0
1,160
1,090
590
-3,410
3,790
840
22.2
2,950
2,950
19.0
1Q
21,840
8.5
6,070
18.8
27.8
1,050
1,210
400
1,940
2,270
490
21.6
1,780
1,780
2.3
4QE
14,236
-9.4
4,513
121.2
31.7
1,134
1,299
322
-1,850
4,252
958
22.5
3,294
3,294
11.7
FY17
72,200
12.2
16,210
1.4
22.5
4,090
4,480
1,470
-3,150
12,260
2,380
19.4
9,880
8,630
22.1
FY18E
73,324
1.6
19,607
21.0
26.7
4,292
4,966
1,347
0
11,696
2,573
22.0
9,123
9,123
5.7
4
-2
19
-2
-2
-2
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

CESC
Exhibit 1: Standalone – operating metrics
Units sold
change yoy
Realization
T&D loss
Gross generation
change yoy
Generation fuel cost
Power purchase
Power purchase cost
MU
%
INR/kWh
%
MU
%
INR/kWh
MU
INR/kWh
1QFY16
2,562
0.2
6.6
11.8
2,074
-14.3
2.0
1,034
2QFY16
2,566
-1.0
6.8
11.8
1,976
-19.6
2.1
1,125
3QFY16
2,239
13.9
6.8
11.8
1,598
-20.4
2.2
1,047
4QFY16
2,097
15.2
7.0
10.5
1,340
-21.7
1.1
1,025
1QFY17
2,782
8.6
7.1
12.1
1,912
-7.8
2.3
1,409
4.9
2QFY17
2,654
3.4
7.4
11.8
1,716
-13.2
2.1
1,398
5.0
3QFY17
2,090
-6.7
7.5
11.8
1,170
-26.8
2.2
1,290
5.1
4QFY17
1,994
-4.9
7.9
0.0
1,215
-9.3
2.4
1,049
5.5
1QFY18
2,853
2.6
7.7
11.1
1,736
-9.2
2.2
1,605
4.8
2QFY18
2,759
4.0
7.6
10.8
1,738
1.3
2.2
1,509
5.1
Source: MOSL, Company
Exhibit 2: Spencer – operating metrics
Store count
Hyper
Super
Daily (small format)
Store area
Hyper
Super
Daily (small format)
Sales - avg
Sales - like-for-like
Store EBITDA
x
x
x
x
k.sq.f
k.sq.f
k.sq.f
k.sq.f
INR/sq.f.m
INR/sq.f.m
INR/sq.f.m
1QFY16
118
34
13
71
1,056
797
98
161
1,477
1,540
92
2QFY16
120
36
13
71
1,116
857
98
161
1,471
1,539
83
3QFY16
121
38
13
70
1,166
911
98
157
1,492
1,623
89
4QFY16
118
36
12
70
1,083
839
87
157
1,246
1,501
69
1QFY17
118
36
13
69
1,086
839
92
155
1,578
1,584
97
2QFY17
119
37
14
68
1,112
856
102
154
1,588
1,682
108
3QFY17
124
39
17
68
1,189
908
129
152
1,714
1,790
121
4QFY17 1QFY18 2QFY18
124
124
124
39
38
38
17
18
19
68
68
67
1,176
1,185
1,186
895
891
880
129
142
156
152
152
150
1,612
1,530
1,507
1,813
1,615
1,588
90
94
Source: MOSL, Company
Exhibit 3: Target price derivation
Stake
%
a. Distribution
Kolkata
Noida
Franchisee
b. Generation
Kolkata
Haldia
Dhariwal reg. (300MW)
Dhariwal merchant
Crescent Power
RE
c. Spencer
d. Others
Firstsource
Mall
Consolidated value (a+b+c+d)
Less: Debt
Market value
No. of shares
Target price
100.0
49.6
Reg.
Equity
INR m
6,840
29,985
2,243
RoE
%
20.9
25.0
CoE
%
Gr
%
P/BV
x
Equity
value
INR m
91,227
12,463
Norm.
Debt
INR m
30,698
EV
INR m
135,496
121,926
12,463
1,107
112,315
23,884
45,746
19,956
15,000
3,227
4,502
26,216
24,407
20,158
4,249
298,434
117,238
181,195
133
1,360
10.2
5.0
3.0
10.2
7.0
5.6
@ 7x FY19E EBITDA
11.9
0.0
1.8
11.9
0.0
1.8
11.9
0.0
1.6
300MW @ INR 50m/MW
11.9
1.3
@ 7x FY19E EBITDA
@1x FY19E sales
@ 9x FY19E attri. PAT
@ 9x FY19E EV/EBITDA
100.0
100.0
100.0
67.8
12,618
11,305
5,823
2,648
20.9
22.0
19.0
15.3
22,121
20,819
9,261
3,391
26,216
17,883
1,763
24,928
10,694
-164
55.5
2,275
Source: MOSL, Company
8 November 2017
2

CESC
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
75,567
28.3
12,661
16.8
3,645
9,016
4,304
1,437
418
6,567
1,758
26.8
215
4,594
4,176
53.8
2013
1,256
50,180
51,436
96,608
0
285
155,753
86,189
976
51,937
4,342
16,201
14,314
17,081
57,383
57,383
0
-5,446
155,753
2014
101,109
33.8
16,226
16.0
4,714
11,512
5,660
1,734
0
7,585
1,856
24.5
813
4,916
4,916
17.7
2014
1,256
55,094
56,350
119,164
0
332
184,925
119,719
737
50,798
5,383
15,302
12,422
17,692
64,838
64,838
0
-14,040
184,925
2015
110,666
9.5
18,945
17.1
5,889
13,056
9,565
1,490
0
4,981
1,992
40.0
1,004
1,985
1,985
-59.6
2015
1,332
58,958
60,290
142,020
0
832
213,146
186,270
735
65,858
6,625
17,066
16,453
25,714
66,235
66,235
0
-377
213,146
2016
121,242
9.6
29,792
24.6
7,665
22,128
14,943
2,637
-40
9,781
3,130
32.0
666
5,985
6,024
203.5
2016
1,332
104,705
106,037
148,676
0
38,307
303,939
243,065
3,537
93,781
6,967
14,132
17,894
54,788
63,993
63,993
0
29,789
303,939
2017
139,035
14.7
31,574
22.7
8,164
23,410
14,972
2,987
-5
11,421
3,810
33.4
706
6,905
6,909
14.7
2017
1,332
104,895
106,227
156,266
0
38,873
313,466
246,156
4,224
104,646
8,454
15,596
22,931
57,665
65,585
65,585
0
39,061
313,466
2018E
148,260
6.6
36,667
24.7
8,507
28,160
14,058
2,381
0
16,483
3,875
23.5
766
11,842
11,842
71.4
2018E
1,332
115,138
116,470
152,022
0
38,873
320,706
269,774
4,698
110,149
8,331
19,104
25,049
57,665
67,834
67,834
0
42,315
320,706
2019E
157,688
6.4
38,511
24.4
8,891
29,621
13,745
2,673
0
18,549
4,283
23.1
1,033
13,234
13,234
11.7
2019E
1,332
126,773
128,105
147,297
0
38,873
329,180
273,093
5,229
116,483
8,796
19,964
30,058
57,665
69,544
69,544
0
46,939
329,180
(INR Million)
2020E
166,329
5.5
39,982
24.0
9,266
30,716
13,431
2,906
0
20,191
4,656
23.1
1,139
14,396
14,396
8.8
Balance Sheet
Y/E Mar
Share Capital
Reserves
Net Worth
Debt
Consumer Security Deposits
Deferred Tax
Total Capital Employed
Net Fixed Assets
Investments
Current Assets
Inventory
Debtors
Cash & Bank
Loans & Adv, Others
Curr Liabs & Provns
Curr. Liabilities
Provisions
Net Current Assets
Total Assets
(INR Million)
2020E
1,332
139,570
140,902
143,656
0
38,873
340,069
275,691
5,823
125,929
9,258
20,759
38,247
57,665
71,293
71,293
0
54,636
340,069
8 November 2017
3

CESC
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
33.2
62.3
409.5
7.0
21.1
8.0
4.3
0.6
0.0
9.7
2.6
8.4
6.8
2014
39.1
76.7
448.6
8.0
20.4
12.8
6.5
1.1
0.0
11.0
1.6
9.1
6.7
2015
14.9
59.1
452.6
9.0
60.4
40.4
10.2
1.3
0.0
11.4
1.5
3.4
6.3
2016
45.2
102.8
796.0
10.0
22.1
10.5
4.6
0.6
0.0
6.9
2.1
7.2
8.4
2017
51.9
113.1
797.4
10.0
19.3
19.0
8.7
1.2
0.0
8.8
1.0
6.5
7.3
2018E
88.9
152.7
874.3
10.0
11.2
11.1
6.4
1.1
0.0
7.4
1.0
10.6
8.4
2019E
99.3
166.1
961.6
10.0
10.1
9.9
5.9
1.0
0.0
6.8
1.0
10.8
8.6
2020E
108.1
177.6
1057.7
10.0
9.3
9.1
5.5
0.9
0.0
6.3
1.0
10.7
8.7
0.0
78
21
1.4
0.0
55
19
1.6
0.0
56
22
1.8
0.0
43
21
1.1
0.0
41
22
1.1
0.0
47
21
1.0
0.0
46
20
0.8
0.0
46
20
0.7
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
12,661
1,968
5,406
-1,479
0
18,556
-36,148
-17,591
0
-1,776
-37,924
10
24,494
-5,465
359
19,399
31
14,283
14,314
2014
16,226
1,125
7,301
-2,141
0
22,511
-34,209
-11,698
0
1,582
-32,627
37
19,282
-11,134
40
8,225
-1,891
14,314
12,422
2015
18,945
2,729
-10,274
-2,506
0
8,895
-19,509
-10,614
0
1,337
-18,172
5,021
20,980
-11,978
-714
13,309
4,031
12,422
16,453
2016
29,792
4,128
-5,805
-3,311
0
24,804
-12,675
12,129
0
1,096
-11,580
117
6,390
-15,303
-3,014
-11,809
1,415
16,453
17,868
2017
31,574
4,387
-5,868
-3,618
0
26,475
-14,720
11,755
0
-142
-14,862
158
8,622
-15,036
-1,336
-7,592
4,021
17,894
21,915
2018E
36,667
0
-1,136
-3,875
0
31,656
-12,019
19,638
0
2,381
-9,637
0
-4,245
-14,058
-1,599
-19,901
2,118
22,931
25,049
2019E
38,511
0
385
-4,283
0
34,614
-12,210
22,404
0
2,673
-9,536
0
-4,725
-13,745
-1,599
-20,068
5,009
25,049
30,058
(INR Million)
2020E
39,982
0
492
-4,656
0
35,817
-11,864
23,953
0
2,906
-8,958
0
-3,641
-13,431
-1,599
-18,670
8,189
30,058
38,247
8 November 2017
4

CESC
Corporate profile
Company description
CESC, an RPG-SG Group Company is one of the
oldest integrated power utilities in India with
presence in mining, generation, and distribution of
power. Installed generation capacity stands at
1.2GW and distribution network encompasses 2.3m
consumers in Kolkata and Howrah region. CESC has
presence in retail business “Spencer” which has
~1.17msf area under operations.
Source: MOSL/Bloomberg
Exhibit 1: Sensex rebased
Exhibit 2: Shareholding pattern (%)
Sep-17
Promoter
DII
FII
Others
49.9
22.1
16.4
11.5
Jun-17
49.9
40.9
0.0
9.2
Sep-16
49.9
19.0
23.2
7.9
Source: Capitaline
Exhibit 3: Top holders
Holder Name
Hdfc Trustee Company Limited-Hdfc Equity
Fund
Hdfc Trustee Company Limited - Hdfc Top
200 Fund
BNK Capital Markets
Hdfc Trustee Company Limited - Hdfc
Prudence Fund
LIFE INSURANCE CORPORATION OF INDIA
% Holding
4.4
2.1
1.9
1.7
1.7
Source: Capitaline
Note: FII Includes depository receipts
Exhibit 4: Top management
Name
Sanjiv Goenka
Aniruddha Basu
Subhasis Mitra
Designation
Chairman
Managing Director
Company Secretary
Exhibit 5: Directors
Name
Brij Mohan Khaitan
K Jairaj
Pratip Chaudhuri
Name
Chandra Kumar Dhanuka
PRADIP KUMAR KHAITAN
Rekha Sethi
Source: Capitaline
*Independent
Exhibit 6: Auditors
Name
Lovelock & Lewes
S M Gupta & Co
S R Batliboi & Co LLP
Shome & Banerjee
Type
Statutory
Secretarial Audit
Statutory
Cost Auditor
Source: Capitaline
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY18
FY19
FY20
MOSL
forecast
88.9
99.3
108.1
Consensus
forecast
77.1
94.9
106.4
Variation (%)
15.4
4.7
1.6
Source: Bloomberg
8 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.
CESC
Disclosure of Interest Statement
Analyst ownership of the stock
CESC
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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