Sector Update | 22 February 2018
Automobiles
PV volume momentum intact
Growth driven by compact UVs, compact car and compact sedan segment
We analyzed the brand-wise data for the domestic PV industry. PV industry
volume momentum continued with ~8% growth FY18YTD, driven by compact UVs,
compact sedan and compact car segments grew 28.5%, 7.5% and 7.4% YoY,
respectively. However, the mini segment declined 1.6%, and the mid-size and UV-2
segments grew just 1% and 0.4% YoY, respectively. Key highlights:
Premiumization trend continues with share of product priced >INR800k
increasing to ~43% of domestic PV volumes (v/s ~41% in FY17).
MSIL’s market share has corrected in last couple of month to ~49% now (partly
impacted by old Swift phase-out), with FY18YTD share at ~50%. Baleno ramp-
up continues with record volumes of 17.7k units (+70% YoY) while Ignis
recording all-time high volumes of ~5.4k units (+13% YoY).
Ciaz
sales recovered sharply post adverse GST rate on hybrids, with monthly
volumes are back at 5.1k units, enabling it to partially regain lost market share
in the mid-size segment (29.5% in January 2018).
TTMT’s PV volume growth of 18.2% YoY in YTDFY18 was led by new products,
which grew 145% YoY, despite phasing out of old models (decline of
~52%).TTMT’s market share recovery continues with ~7.7% market share in
Jan-18 (v/s 5.7% market share in FY17).
While M&M is witnessing good growth for Bolero (~33% YTD) and Scorpio
(~9% YTD) benefitting from rural recovery, it market share loss continues with
UV market share at ~25.4% in FY18YTD (v/s ~29.4% in FY17; ~26.2% in Jan-18).
Record Baleno and Ignis dispatches drive MSIL’s market share in compact segment
MSIL’s compact segment volumes grew 23.3% YoY in YTDFY18, primarily led by
increase in
Baleno
and
Ignins
volumes.
Baleno
volumes grew 64% YoY in YTDFY18 to an average of 15.8k units per
month (v/s 9.8k units in YTDFY17). In January 2018,
Baleno
volumes came in at a
record 17.8k units.
Ignis
volumes grew 13.3% YoY in January 2018 to a record 5.5k units.
Consequently, MSIL’s market share in the compact segment has increased by
7pp to 52% in YTDFY18 (v/s 45% in YTDFY17).
Growth in other compact models like
Swift
and
Celerio
remained muted at 0.3%
YoY each. With the launch of new
Swift,
its volumes are expected to increase
gradually – already has bookings of 40k units. Inventory build-up due to this is
visible in dispatches of 14.2k units in January against 11.8k units in December.
Good initial response to MSIL’s
S-Cross
(facelift) also helped volumes to average
~3,750 units/month since the October 2017 launch.
Ciaz
volumes back to 5k units; regains some market share lost to Honda
GST impact on mild hybrid models has been partially offset by rise in sale of
petrol variants. As a result of the same,
Ciaz
volumes had witnessed limited
impact post increase in tax under GST.
Kenichi Ayukawa,
MD and CEO,
Maruti Suzuki, said:
“Simply looking at the model-
wise sales, still Alto is number
one! Other bigger size vehicles
are becoming popular and the
first time customers are
directly buying the Dzire, Swift
or the Baleno. Still there are
customers who prefer small
cars and we have to take care
of those people. Some
customers are directly buying
the Swift or the Dzire but some
are upgrading from Alto,
Wagon R to Swift and Dzire or
Ciaz. We have these kind of
customers and have to take
care of them.”
Jinesh Gandhi – Research Analyst
(Jinesh@MotilalOswal.com); +91 22 3982 5416
Research Analyst:
Deep Shah
(deep.shah@MotilalOswal.com); 6129 1533 |
Suneeta Kamath
(suneeta.kamath@MotilalOswal.com); 6129 1534
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors
21 February 2018
are advised to refer through important disclosures made at the last page of the Research Report.
1

Automobiles
Mayank Pareek,
Passenger Car Business unit,
Tata Motors, said:
“While Tiago continues to lead the
growth in cars at 27%, the Nexon
and HEXA have attracted new set
of SUV buyers, resulting in 188%
growth in UVs. We continue to be
optimistic and hope this growth
momentum continues.”
Kenichi Ayukawa,
MD and CEO, Maruti Suzuki,
said:
“We will try to maintain our
market share. Nobody wants to
see any reduction in volumes and
we are not much concerned about
the target of maintaining the
market share. We try to expand
our business across the country.
Hence, eventually or fortunately
we are getting additional market
share.”
Its volumes in January 2018 came in at 5.1k units (v/s 3.5k in 3QFY18), winning
back some market share lost (29.5% in January 2018 v/s 23.4% in 3QFY18).
Hyundai also gained market share in the mid-size segment, with the launch of
new
Verna
in August 2017, resulting in average market share at 24% in August-
January (v/s 4% in the previous three months).
TTMT phasing out old models; focus on revamping product portfolio
TTMT’s PV volumes grew 18.2% YoY in YTDFY18 to 167.2k units.
This was led by healthy response to new products – volumes of
Tiago, Hexa,
Tigor
and
Nexon
grew 145%.
The decline of 52.4% in old models indicates the company’s strategy to phase
out old models to revamp the product portfolio.
Nexon
(compact UV) has received healthy response since its launch in August
2017, resulting in market share of 4.4%. Its volumes were 4.9k units in January
2018, the highest ever since launch.
Its market share in the PV segment (ex-vans) increased to 5.8% in YTDFY18 (v/s
5.3% in YTDFY17).
MM’s UV-1 market share under pressure; recovery in UV-2 segment continues
MM continued to lose market share in the UV-1 segment to 20.3% in YTDFY18
(v/s 24.7% in YTDFY17), as
KUV100
volumes declined 33% YoY, despite the
launch of
KUV100 NXT
in October 2017.
However, on the back of rural recovery,
Baleno’s
volumes grew 33% YoY in
YTDFY18, partially negating the weakness in
KUV100
and
Quanto
models.
MM’s market share in the UV-2 segment expanded to 43.4% (v/s 41.7%), as
Scorpio
volumes grew 9.2% YoY v/s muted industry growth of 0.1% YoY in the
UV-2 segment in YTDFY18.
Ford
Ecosport
– highest ever volumes of 6.8k units since launch in June 2013
Ford reported highest-ever monthly volumes of 6.8k for its compact UV,
Ecosport, since its launch in June 2013 (v/s average of 3.5k in April-December
2017).
Consequently, its market share in the UV-1 segment increased to 11% in January
2018 (v/s average of 6.9% in April-December 17).
The growth in volumes was led by the launch of all new
Ecosport
in November
2017, priced similar to old model.
Renault sales declined 21% in YTDFY18, as
Duster
and
Kwid
struggle
Duster
sales declined significantly by 26% YoY in YTDFY18, resulting in persistent
market share decline in the UV-1 segment.
Sales of
Kwid
too declined 20.4% YoY in YTDFY18, resulting in a market share
loss of 3.4% YoY to 14.2% in YTDFY18.
MSIL gains share across segments except mid-size
MSIL gained market share in every segment except mid-size, as
Ciaz
sales were
impacted due to increase in GST.
Its market share in the compact segment expanded the most by 7% to 52% in
YTDFY18 (v/s 45.3% in FY17).
Its market share in the compact sedan segment too expanded by a healthy 5% to
60.8% in YTDFY18 (v/s 55.5% in FY17).
Initial signs of rural recovery benefitted MSIL the most, resulting in market share
gains of 230bp to 71% in YTDFY18 (68.7% in FY17) in the mini segment, taking
away share from Renalut’s
Kwid.
2
21 February 2018

Automobiles
Brezza
continues to help market share expansion in the UV-1 segment. In
YTDFY18, market share expanded 105bp to 39.6% (38.6% in YTDFY17).
MSIL has lost market share in the mid-size segment to 30.6% in YTDFY18 (v/s
33.3% in YTDFY17), led by dual impact of (a) competitive pressure post launch of
Hyundai’s new
Verna,
and (b) increase in pricing post GST, leading to decline in
volumes. Hyunai has gained ~9% share of the segment, with the launch of new
Verna.
Honda’s market share increased ~100bp to 29.3% in YTDFY18.
Valuation and view
We prefer 4Ws over 2Ws and CVs due to stronger volume growth and a stable
competitive environment.
While we expect 2W volumes to benefit from a rural recovery in the near term,
competitive intensity remains high in the segment due to changing customer
preferences.
Our top picks in Autos are MSIL & MSS in large caps and AL & AMRJ in mid-
caps.
We also like MM as the best bet on a rural market recovery.
Exhibit 1: Domestic PV industry growth is not broad based
as mini, mid-size and UV2 growth remain muted (%)
YTDFY18
28.5
Exhibit 2: MSIL gains market share across segments except
mid-size largely led by new product launch (%)
FY16
80
68 71
42 46
52
FY17
FY18 YTD
58 55 61
25
33 31
25
37 40
47 47 50
7.4
-1.6
7.5
1.0
Mid-size
UV1
0.4
UV2
Mini
Mini
Compact Compact
segment
sedan
Compact Compact Mid size
sedan
UV1
Domestic
PV
Source: SIAM, MOSL
Source: SIAM, MOSL
Exhibit 3:
Baleno
drive compact segment volume for MSIL
Baleno volume (000 units)
Average volume per month (000 units)
13.2
10.1
Exhibit 4: Lead to market share gain in compact segment (%)
52
43
38
34
46
42
120.8
FY17
158.4
YTDFY18
Source: SIAM, MOSL
FY13
FY14
FY15
FY16
FY17
FY18 YTD
Source: SIAM, MOSL
21 February 2018
3

Automobiles
Exhibit 5: Limited impact on mild hybrid models due to GST;
Ciaz
sales back to 5k mark due to preference for petrol trim
Jun-17
Sep-17
Dec-17
Jul-17
Oct-17
Jan-18
Aug-17
Nov-17
Exhibit 6:
Ignis
volume above 5k for the first time since
launch in Jan-17
CIAZ
Ertiga
Scorpio
Source: SIAM, MOSL
Source: SIAM, MOSL
Exhibit 7: Launch of
S-cross
facelift drive volumes; initial
customer feedback positive
Exhibit 8: Share of new models in sales mix improving in
TTMT-PV, led by revamped product portfolio
Share of new products in sales mix (%)
Source: SIAM, MOSL
Source: SIAM, MOSL
Exhibit 9: Intensifying competition impact MM market share
in UV1 segment (%)…
Maruti
Ford
11
0
14
0
45
11
0
16
16
0
36
29
FY13
21
FY14
M&M
Hyundai
11
0
16
12
10
30
21
FY15
Honda
Others
11
17
11
5
2
30
25
FY16
Renault
6
18
9
4
1
24
37
FY17
6
17
7
3
8
20
40
FY18YTD
Exhibit 10: …however recovers market share in UV2
segment (%)
M&M
7
30
7
26
6
4
32
Toyota
7
8
29
GM
16
6
35
Others
16
6
36
23
1
33
55
53
57
56
43
FY17
42
43
FY13
FY14
FY15
FY16
FY17YTD FY18YTD
Source: SIAM, MOSL
Source: SIAM, MOSL
21 February 2018
4

Automobiles
Exhibit 11:
Kwid
sales declines as customer up trade to
premium hatchbacks in urban markets
Renault Kwid
Exhibit 12: Sharp decline in
Duster
sales led by intensifying
competition in UV1 segment
Renault Duster
Source: SIAM, MOSL
Source: SIAM, MOSL
Exhibit 13: Share of UVs continues to increase
Mini
Compact
14
10
10
9
8
28
21
FY13
Compact Sedan
11
9
12
7
12
27
23
FY14
9
8
12
8
15
27
20
FY15
Mid Size
8
7
14
8
14
30
19
FY16
UV1
UV2
7
7
17
6
12
30
20
FY17
Others
8
7
20
6
12
30
18
FY18 YTD
32
6
4
10
4
24
20
FY12
Source: SIAM, MOSL
Exhibit 14: Premiumization continues (% of total domestic PV)
PVs >INR500k
PVs >INR800k
61
64
65
68
51
35
22
FY12
FY13
35
56
35
39
40
41
43
FY14
FY15
FY16
FY17
FY18 YTD
Source: SIAM, MOSL
21 February 2018
5

Automobiles
Exhibit 15: Comparative
valuations
CMP
INR
Auto OEM's
Bajaj Auto
Hero MotoCorp
TVS Motor
M&M
Maruti Suzuki
Tata Motors
Ashok Leyland
Eicher Motors
Auto Ancillaries
Bharat Forge
Exide Industries
Amara Raja Batt.
BOSCH
Endurance Tech
Motherson sumi
Mahindra CIE
2,971
3,482
631
721
8,650
359
132
26,805
752
207
797
18,914
1,267
311
232
Buy
Neutral
Neutral
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Neutral
Buy
Buy
Buy
Rating
TP
(INR)
4,031
3,986
741
886
10,972
515
158
34,764
880
268
1,035
21,951
1,554
437
297
P/E (x)
FY19E
17.1
17.4
25.1
16.4
23.4
6.2
21.3
25.5
28.1
20.3
23.0
31.8
32.9
24.9
19.4
FY20E
14.7
16.4
18.6
14.9
18.4
6.1
17.2
20.1
21.4
17.8
19.2
25.8
24.5
17.8
15.6
EV/EBITDA (x)
FY19E
12.4
10.8
15.9
12.8
14.7
2.7
10.7
21.2
16.4
11.9
11.7
18.9
16.2
1.2
10.5
FY20E
10.4
9.9
11.8
11.3
11.9
2.4
8.8
17.1
13.1
10.6
9.7
15.4
12.8
0.6
8.6
RoE (%)
FY19E
25.3
32.0
35.3
14.4
22.8
24.3
24.7
34.6
23.5
14.4
18.3
17.9
23.8
25.4
11.8
FY20E
26.2
29.9
35.6
14.7
24.5
19.6
26.4
33.2
25.5
14.7
18.8
19.6
26.6
29.3
12.9
Div Yld (%)
FY19E
2.5
2.7
0.6
1.4
1.3
0.1
1.7
0.7
0.7
1.1
0.7
1.1
0.5
1.0
0.0
FY20E
2.9
3.0
0.8
1.4
1.6
0.1
1.9
0.7
0.8
1.5
0.8
1.3
1.0
1.5
0.0
EPS
CAGR (%)
FY18-20E
15.8
7.2
56.0
13.2
30.8
44.7
25.3
26.9
32.1
20.4
21.0
26.2
37.0
47.0
28.6
21 February 2018
6

Automobiles
NOTES
21 February 2018
7

Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
> - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
Automobiles
*In case the recommendation given by the Research Analyst becomes inconsistent with the investment rating legend, the Research Analyst shall within 28 days of the inconsistency, take appropriate measures to make the recommendation consistent with the investment rating legend.
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
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. The matter is closed and MOSL had to pay Rs. 2
lakhs towards penalty for misplacement of original POA of client.
MOSL, it’s associates, Research Analyst or their relative may have any financial interest in the subject company. MOSL and/or its associates and/or Research Analyst may have beneficial ownership of 1% or more securities in the subject company at
the end of the month immediately preceding the date of publication of the Research Report.
MOSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act
as principal in, and buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial
instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and other related information and opinions.;
however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOSL even though there
might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
Research Analyst may have served as director/officer, etc. in the subject company in the last 12 month period. MOSL and/or its associates may have
received any compensation from the subject company in the past 12 months.
In the last 12 months period ending on the last day of the month immediately preceding the date of publication of this research report, MOSL or any of its associates may have:
a)
managed or co-managed public offering of securities from subject company of this research report,
b)
received compensation for investment banking or merchant banking or brokerage services from subject company of this research report,
c)
received compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company of this research report.
d)
Subject Company may have been a client of MOSL or its associates during twelve months preceding the date of distribution of the research report.
MOSL and it’s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report. To enhance transparency, MOSL has incorporated a Disclosure of Interest Statement in
this document. This should, however, not be treated as endorsement of the views expressed in the report. MOSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result,
the recipients of this report should be aware that MOSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant banking, investment banking or
brokerage service transactions.
Terms & Conditions:
This report has been prepared by MOSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and may not be altered in any way, transmitted to, copied or distributed, in part
or in whole, to any other person or to the media or reproduced in any form, without prior written consent of MOSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report
is not recommendatory in nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied,
is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to
buy or sell or subscribe for securities or other financial instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOSL will not treat recipients as customers by
virtue of their receiving this report.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the
specific recommendations and views expressed by research analyst(s) in this report.
Disclosure of Interest Statement
Analyst ownership of the stock
Companies where there is interest
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: SEBI Registration: INZ000158836 (BSE/NSE/MSE); 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
21 February 2018
8