11 April 2018
C
orner
O
ffice
the
Interaction with the CEO
Brightening the portfolio…
…valuations remain fair, though
We met Mr. Ullas Kamath, Joint Managing Director of Jyothy Laboratories (JYL), to understand
the company’s strategy to drive growth over the next few years. Key takeaways:
Jyothy Laboratories
Multiple drivers in place to drive medium-term growth
1. Ujala Crisp and Shine:
This product fits well into JYL’s niche and innovative product
portfolio. It was launched initially in Kerala, with the potential to reach a customer
Mr Ullas Kamath
Joint Managing Director
base of over 30m people. JYL initially targets to make
Ujala Crisp and Shine
an
INR1b sales product in south India, and then take the brand to other states – but
Mr Ullas Kamath is a
one state at a time. It targets a turnover of INR2.5b from this brand over 4-5 years.
qualified Chartered
2. Personal care:
JYL aims to step up its presence in the Ayurveda space with its
Accountant and Company
Secretary. He has topped it
brands
Margo
and
Neem
(both acquired from Henkel’s portfolio).
Margo
reaches
with a Degree in Law and
around 1m outlets, mostly in east and south India. Encouragingly, the recent
has attended the Advanced
advertisements on
Margo
have able to create good top-of-mind awareness. Over
Management Programme at
the last four years, JYL has grown Margo from an INR600m to an INR2b brand. JYL
Wharton Business School
aims to generate revenue of INR5b from its personal care portfolio (Margo +
Neem
and Harvard Business
School.
– a product that is at a premium to
Colgate Dental cream,
but generating revenue
of only INR300m, half of which are from exports to Malaysia).
Margo
alone is
Under his leadership, the
expected to contribute INR3b of sales over the next 2-3 years. Its positioning is
company has diversified and
unique with 15% of the ingredients comprising of neem oil, a level that has been
become a multi-product
FMCG company. He has
maintained across its history. Management is looking at extending the Margo
spearheaded the successful
franchise to face wash and hand wash.
Margo
commands 55-60% gross margins,
setting up of Fabric Spa and
which will only expand as JYL enters more premium products. In fact,
the Henkel acquisition. He
management’s targets at least 50% gross margins from all of its new products
has also won the CA
Business Achiever Award -
across categories.
SME category – at ICAI
3. Hair care:
JYL is still in the R&D phase in its hair care segment. It will be looking at
Awards 2008.
the premium hair oil space first, with a product similar to peer brand
Indulekha.
4. Dishwash brands (Exo and
Pril):
With
Exo,
JYL is the number-2 player in the
INR105b dishwash market, which is growing at ~8%. The company sees a huge market share-led growth
opportunity, given the significant market share gap between the market leader (HUL) and JYL. The company
aims to increase its share from 12% now to 15% in the near term, and eventual reach 20% in the next five years.
The brand enjoys a 60% market share in Kerala, 35% in Karnataka, 22% in Tamil Nadu (TN) and 20% in Andhra
Pradesh (AP). JYL aims to build its overall market share by growing its presence in TN and AP to begin with. The
category is also premiumizing from low-quality powder to dish wash cakes and from cakes to liquids. JYL has
Pril,
which is a strong brand in the liquid dish wash segment. The company is extending
Pril
into the premium end of
the dishwash cake segment, and
Exo
from dishwash cakes to lower-end liquids.
5. Maxo:
After regaining the lost market share in the household insecticides business,
Maxo
is expected to do
better in the coming years, led by government initiatives (such as Swachh Bharat) and lower competitive
intensity.
Mortein
(Reckitt) has not been doing well in the market, as is the case globally.
Allout
(SC Johnson) has
also lost focus on liquids. Both these brands are losing share to
GoodKnight
(GCPL) and
Maxo
(JYL).
GoodKnight
is very strong in south India and
Maxo
in east India.
Krishnan Sambamoorthy
(Krishnan.Sambamoorthy@motilaloswal.com); +91 22 6129 1545
Vishal Punmiya
(Vishal.Punmiya@motilaloswal.com); +91 22 6129 1547
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.

C
orner
O
ffice
6. Fabric care:
JYL will maintain its strategy to target the lower end of the fabric care category with
Ujala
washing
powder.
Henko
is aimed toward the premium class focusing on modern trade with “Henko Matic” liquid
detergents focusing on modern trade.
7. New categories:
JYL has introduced its toilet cleaner product in south India under the brand name of
T-Shine.
The brand, positioned as India’s first acid free toilet cleaner, has been doing well in the region, and could benefit
from the shift from the unorganized to organized segment. The product is at priced at an INR5 premium to
market leader
Harpic
(Reckitt).
T-Shine
will also be rolled out in TN, followed by AP and then Karnataka. Floor
cleaner is another category where JYL has set its eye, with a product likely to hit the market in the next fiscal.
8. Inorganic growth:
While JYL is targeting its organic growth at industry plus 5%, it is also open to take inorganic
opportunities. Mr Kamath is himself directly involved in exploring inorganic opportunities that come the
company’s way. One of JYL’s policies has been to target an acquisition every five years, and Mr Kamath believes
that the time is right for another acquisition of around INR10b. Ideally, JYL is seeking a profitable regional brand
that it can take national. The company only seeks to acquire brand and technology. By FY22, management seeks
to have INR10b of its sales from newly acquired products.
the
Other key takeaways
JYL will end FY18 with EBITDA margins of 15-16%.
Reach:
JYL has a retail reach of ~3m outlets.
GST benefits:
Procurement has been better + getting benefits of input tax credit (ITC) + shift from unorganized
to organized in certain categories + reduction in the number of depots in north India + converting factories to
depots, etc. Management expects GST-led gains equivalent to 1% of sales in FY19.
Ad spends:
Ad spends are expected to be in the range of 14-15% of sales. Currently, 50% of spends are toward
promotions. JYL would like to lower this to 25% in the next few years. In recent years, promotions have been
high because of lower commodity costs and consequent offers.
Valuation and view
Expected earnings growth over FY17-20 appears moderate for a company that is much smaller in terms of size
compared to mid-cap peers. RoE is also at a discount to peers at ~18.5% and 21.8% in FY19 and FY20,
respectively. Considering this, valuations of 19x FY20E EV/ EBITDA and 28x FY20E EPS do not offer scope for a
significant upside. Targeting 20x March’20E EV/ EBITDA (a 20% discount to staples peer average), we get a target
price of INR405. Maintain
Neutral.
Exhibit 2:
Brand mix for JYL as on 9MFY18 (%)
2.6%
11.1%
8.8%
8.7%
11.3%
8.1%
24.8%
Source: Company, MOSL
Ujala
24.6%
Henko
Exo
Pril
Maxo
Margo
Others
Laundry service
Source: Company, MOSL
Exhibit 1:
Category mix for JYL as on 9MFY18 (%)
2.0%
10.3%
8.7%
2.6%
43.7%
Fabric Care
Dishwashing
Household Insecticides
Personal Care
Other Products
Laundry services
32.7%
11 April 2018
2

C
orner
O
ffice
Exhibit 3:
Expect revenue CAGR of 17.6% over FY18-20
Revenue (INR b)
64.6
47.3
21.0
(4.2)
9.1
FY12
11.0
FY13
3.6
13.2
FY14
15.1
FY15
15.9
FY16
16.8
19.4
48.4
14.2
5.7
20.5
5.7
23.9
44.9
FY12
FY13
FY14
FY15
FY16
FY17 FY18E FY19E FY20E
Source: Company, MOSL
47.1
47.3
47.4
46.8
47.7
48.4
48.8
Revenue growth (%)
the
Exhibit 4:
Gross margin to improve by 110bp over FY18-20
Gross Margin (%)
17.3
FY17 FY18E FY19E FY20E
Source: Company, MOSL
Exhibit 5:
…while EBITDA margins to expand 70bp
EBITDA Margin (%)
15.1
14.0
11.8
9.3
FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E
Source: Company, MOSL
11.9
10.8
15.2
15.5
15.9
Exhibit 6:
EBITDA is expected to deliver CAGR of 20.2% over
FY18-20
EBITDA (INRb)
53.9
36.2
12.9
21.0
3.7
0.8
FY12
1.3
FY13
1.6
FY14
1.6
FY15
2.2
FY16
2.5
14.6
3.3
2.6
3.2
3.8
21.3
19.1
EBITDA Growth (%)
FY17 FY18E FY19E FY20E
Source: Company, MOSL
Exhibit 7:
PAT is expected to deliver CAGR of 26.7% over
FY18-20
PAT (INRb)
PAT Growth (%)
176.6
53.6
(40.9)
0.4
FY12
0.6
FY13
0.9
FY14
1.3
FY15
44.8
48.7
(42.0)
0.7
FY16
2.0
(24.8)
29.3
24.0
Exhibit 8:
..with return ratios improving slightly over the
same period
RoE (%)
119.5
16.8
12.5
9.4
6.2
10.5
5.8
FY12
FY13
FY14
FY15
9.7
9.1
7.1
17.3 11.4
14.3
16.7
ROCE (%)
21.1
14.3
21.8
18.5
1.5
2.0
2.5
FY17 FY18E FY19E FY20E
Source: Company, MOSL
FY16
FY17 FY18E FY19E FY20E
Source: Company, MOSL
11 April 2018
3

C
orner
O
ffice
Exhibit 9:
JYL’s key revenue drivers going forward
the
Source: Company, MOSL
Exhibit 10:
: JYL has introduced its toilet cleaner product in south India under the brand name of T-Shine
Source: Company, MOSL
11 April 2018
4

C
orner
O
ffice
Financials and valuations
Consolidated - Income Statement
Y/E March
Net Sales
Change (%)
Other Operating Income
Total Income from Operations
Change (%)
Cost of Materials Consumed
% of Sales
Personnel Expenses
% of Sales
Other Expenses
% of Sales
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT after EO Exp.
Current Tax
Tax Rate (%)
Adjusted PAT
Change (%)
the
FY15
15,053
14.2
95.4
15,148
14.4
7,775
51.6
1,790
11.9
3,954
26.3
13,518
89.8
1,630
10.8
325
1,305
138
99
1,204
-6
-0.5
1,272
48.7
FY16
15,909
5.7
18.3
15,928
5.1
8,360
52.6
1,810
11.4
3,537
22.2
13,707
86.2
2,220
14.0
314
1,906
618
143
1,431
693
48.4
738
-42.0
FY17
16,812
5.7
18.3
16,830
5.7
8,941
53.2
1,752
10.4
3,591
21.4
14,285
85.0
2,545
15.1
301
2,244
565
107
1,787
-255
-14.3
2,042
176.6
FY18E
17,267
2.7
20.1
17,287
2.7
9,029
52.3
1,899
11.0
3,730
21.6
14,658
84.9
2,629
15.2
384
2,245
424
123
1,944
408
21.0
1,536
-24.8
FY19E
20,542
19.0
22.1
20,564
19.0
10,595
51.6
2,260
11.0
4,519
22.0
17,374
84.6
3,190
15.5
391
2,800
445
160
2,514
528
21.0
1,986
29.3
(INR Million)
FY20E
23,866
16.2
24.4
23,890
16.2
12,216
51.2
2,625
11.0
5,251
22.0
20,092
84.2
3,798
15.9
396
3,402
467
184
3,119
655
21.0
2,464
24.0
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Minority Interest
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 & Others
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Appl. of Funds
E: MOSL Estimates
FY15
181
7,616
7,797
14
5
7,310
15,126
12,976
2,236
10,740
177
1,935
5,315
1,852
574
792
2,096
3,041
800
896
1,345
2,273
15,126
FY16
181
8,280
8,461
17
253
6,116
14,848
13,104
2,426
10,678
177
835
5,983
1,827
941
648
2,567
2,825
1,031
1,042
752
3,158
14,848
FY17
182
10,708
10,890
-67
69
5,636
16,529
13,697
2,726
10,970
88
285
7,744
1,964
1,228
1,034
3,518
2,558
1,490
487
581
5,186
16,529
FY18E
182
10,374
10,556
-67
69
5,636
16,195
14,104
3,111
10,993
88
285
8,481
2,072
1,209
3,115
2,085
3,651
1,554
609
1,488
4,830
16,195
FY19E
182
10,700
10,881
-67
69
5,636
16,520
14,854
3,502
11,352
88
285
9,209
2,465
1,438
2,867
2,439
4,413
1,849
761
1,803
4,796
16,520
(INR Million)
FY20E
182
11,503
11,684
-67
69
5,636
17,323
15,604
3,898
11,706
88
285
10,164
2,864
1,671
2,827
2,802
4,919
2,148
951
1,820
5,245
17,323
11 April 2018
5

C
orner
O
ffice
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Debt/Equity
FY15
7.0
8.8
43.1
4.0
66.6
FY16
4.1
5.8
46.7
5.0
143.5
FY17
11.2
12.9
59.9
6.0
62.5
33.8
29.5
6.3
4.4
28.8
1.6
0.3
16.8
9.7
10.5
1.0
44.9
13.9
37.6
0.9
9.1
7.1
7.7
1.1
41.9
21.6
45.0
0.7
21.1
17.3
18.1
1.0
42.6
26.7
60.8
0.5
FY18E
8.5
10.6
58.1
7.0
96.9
44.9
35.9
6.5
4.1
27.1
1.8
22.0
14.3
11.4
12.7
1.1
43.8
25.6
62.8
0.5
FY19E
10.9
13.1
59.9
8.0
85.6
34.7
29.0
6.3
3.5
22.4
2.1
8.0
18.5
14.3
17.0
1.2
43.8
25.6
63.7
0.5
FY20E
13.6
15.7
64.3
8.0
69.0
28.0
24.1
5.9
3.0
18.8
2.1
9.1
21.8
16.7
19.6
1.4
43.8
25.6
64.2
0.5
the
Consolidated - Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
CF from Operating incl EO
(inc)/dec in FA
(Pur)/Sale of Investments
CF from Investments
Issue of Shares
(Inc)/Dec in Debt
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
E: MOSL Estimates
FY15
1,211
325
-6
254
1,785
1,785
-142
-1,326
-1,468
0
529
-847
87
-231
86
707
792
FY16
782
314
248
-1,029
314
314
-252
1,100
849
519
-1,694
-1,060
927
-1,307
-144
792
648
FY17
2,081
301
-184
-1,642
556
556
-503
550
46
501
-981
-1,275
1,539
-216
386
648
1,034
FY18E
1,576
384
0
2,437
4,397
4,397
-407
0
-407
1,701
-501
-1,488
-1,622
-1,910
2,081
1,034
3,115
FY19E
2,026
391
0
-214
2,203
2,203
-750
0
-750
501
-501
-1,701
0
-1,701
-248
3,115
2,867
(INR Million)
FY20E
2,504
396
0
-489
2,411
2,411
-750
0
-750
501
-501
-1,701
-1
-1,702
-41
2,867
2,827
11 April 2018
6

C
orner
O
ffice
NOTES
the
11 April 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
C
orner
O
ffice
the
*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), Multi Commodity Exchange of India Limited(MCX) and National Commodity & Derivatives Exchange Limited(NCDEX) 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 and Insurance Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance 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
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
Jyothy Laboratories
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.:022-38281085.
Registration details of group entities.: MOSL: SEBI Registration: INZ000158836 (BSE/NSE/MCX/NCDEX); CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412. AMFI: ARN 17397. Investment Adviser:
INA000007100.IRDA Corporate Agent-CA0541. 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
11 April 2018
8