Maruti Suzuki
BSE SENSEX
34,465
S&P CNX
10,564
20 April 2018
Update
| Sector:
Automobiles
CMP: INR9,039
TP: INR10,560(+17%)
Upgrade cycle to continue led by higher volumes and margins
Buy
More of the same: increasing share, margins & growth
Stock Info
Bloomberg
Equity Shares (m)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
M.Cap. (INR b)
M.Cap. (USD b)
Avg Val, INRm
Free float (%)
MSIL IN
302.1
10000 / 6183
-2/10/27
2,741.8
41.7
4231.0
43.8
Financials Snapshot (INR b)
2018E 2019E 2020E
Y/E Mar
Sales
794.6 933.2 1,093.6
EBITDA
123.8 149.4 189.8
Adj. PAT
81.4 103.6 134.7
Cons.Adj.EPS(INR)
275.1 349.0 452.3
EPS Gr. (%)
10.6 26.9
29.6
BV/Sh. (INR)
1,365 1,575 1,859
RoE (%)
19.7 21.8
24.0
RoCE (%)
27.8 30.2
33.1
P/E (x)
33.0 26.0
20.1
P/CE (x)
24.8 20.1
16.1
Shareholding pattern (%)
As On
Dec-17 Sep-17 Dec-16
Promoter
56.2
56.2
56.2
DII
11.0
11.5
12.4
FII
25.8
25.3
24.5
Others
7.0
7.0
6.9
FII Includes depository receipts
Stock Performance (1-year)
Maruti Suzuki
Sensex - Rebased
10,000
9,000
8,000
7,000
6,000
Demand recovery getting broad based, led by rural markets:
We see demand
recovery from rural areas as model like Alto witnessed ~5.6% growth in FY18
following six years of de-growth (except FY15). Coupled with rural recovery,
this is a reflection of first-time buyers making a comeback. MSIL would be the
biggest beneficiary of rural market recovery due to (a) its unparalleled reach,
(b) large part of its dealer addition being targeted at rural markets, and (c) over
35% of volumes coming from rural markets.
Expanding market reach would aid faster than industry growth:
MSIL is
targeting ~4k sales outlets (~2.8k in FY18E, implying 12.8% CAGR in FY18-20E)
and ~5k workshops (~3.3k in FY18) by 2020. To support dealer viability, it is
also investing in land parcels for leasing it to dealers on long-term leases. MSIL
should grow much faster than the industry, led by ~13% CAGR in distribution
network and continued healthy growth with existing dealers due to favorable
product lifecycle.
Upgrading customer experience through Nexa, Arena and True value:
MSIL
has taken initiatives to strengthen its distribution moat by transforming the
entire network on the pillars of design, technology and experience. It is
converting the existing mainstream dealerships to the Arena format, migrating
the pre-owned car network to the new True Value format, and is building the
Nexa service network for Nexa customers.
Timely capacity addition to ensure double digit growth:
We believe MSIL has
headroom to squeeze more production from its existing operations, as visible
in March 2018 annualized production of ~2.07m units as well as addition of
~60k units from phase 2 of Gujarat plant from January 2019. While this implies
producible capacity of 2.13m units for FY19, considering maintenance
shutdowns and other holiday, we believe it should be able to attain our volume
estimate of ~2m for FY19 (~12.5% growth). We estimate volume CAGR of 13%
in FY18-20 (v/s 11.6% CAGR in FY16-18) given increase in producible capacity.
Lower royalty, localization at Gujarat plant to drive margin expansion:
We
expect MSIL’s EBIT margin to improve by 220bp to ~14.3% in FY20 due to (a)
continued mix improvement, (b) discount reduction, (c) lower royalty, (d)
ramp-up at Gujarat plant, and (e) benefits of operating leverage.
Valuation:
We believe earnings upgrade cycle for MSIL to continue, driven by
higher volumes and margins. Our FY19/20 consol. EPS is higher by 5%/13%
than the consensus, led by higher margins. The stock trades at 26x/20.1x
FY19/20E consol. EPS. Maintain
Buy
with a 1yr TP of INR10,525 (~25x Mar-20
core EPS + ~INR1,544 cash/share). Over 3 years, we estimate total return of
15.3% CAGR with TP of ~INR14,213 (~25x Mar-22 core EPS + INR2,323
cash/share + INR330 of cumulative dividend).
Jinesh Gandhi - Research analyst
(Jinesh@MotilalOswal.com); +91 22 3982 5416
Research analyst: Deep Shah
(Deep.S@MotilalOswal.com); +91 22 61291533/
Suneeta Kamath
(Suneeta.Kamath@MotilalOswal.com); +91 22 61291534
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.

Maruti Suzuki
Demand recovery getting broad-based
We see recovery in demand from rural areas. A rural-centric model,
Alto
saw
5.6% growth in FY18, following six years of de-growth (except FY15).
Coupled with rural recovery, this is a reflection of first-time buyers making a
comeback. Over 50% of demand for the mini segment (entry level) is driven by
first-time buyers.
MSIL is a direct beneficiary of recovery in rural demand, as over 35% of its
domestic sales come from rural markets.
While MSIL has been growing in rural markets due to network expansion,
growth momentum in rural markets picking up, as reflected in ~19% growth in
3QFY18 (v/s overall domestic growth of 6.1%).
MSIL would be the biggest beneficiary of rural market recovery due to (a) its
unparalleled reach, (b) large part of its dealer addition being targeted at rural
markets, and (c) over 35% of volumes coming from rural markets.
Exhibit 1: Recovery in Alto sales after six years, supported by rural recovery and first-time buyers coming back
Alto sales (units)
308,288
266,785
258,281
-3.2
-8.3
-11.1
-13.5
FY13
FY14
264,492
263,422
FY16
FY17
235,236
FY18 YTD
Source: SIAM
2.4
Growth %
5.6
-0.4
241,635
FY12
FY15
Exhibit 2: Rural markets account for a third of total sales
Rural volume (000 units)
28
32
35
35
% of total volume
33
35
Exhibit 3: Rural recovery helps outpace urban growth
Rural growth %
22
15
11
17
12
4
21
25
FY12
Source: Company, MOSL
FY13
FY14
FY15
FY16
FY17
FY18E
Source: Company, MOSL
Expanding coverage to aid faster than market growth
MSIL is targeting ~4,000 outlets by 2020 against ~2,790 outlets in FY18E. It is
expanding its network to significantly increase presence in urban as well as rural
areas. This implies 12.8% CAGR in sales network over FY18-21E.
Along with the network expansion, MSIL is also focusing on upgrading the
quality of network through better infrastructure and superior customer
experience.
20 April 2018
2

Maruti Suzuki
Apart from service network expansion, MSIL is taking several initiatives to bring
aftersales service closer to the customer. It added ~182 new dealer workshops
during FY18, taking the network to 3,382 workshops.
It also plans to expand the sales network for its LCV. Currently, it is retailed
through ~162 outlets in 140 cities in 25 states. With increasing network, its
market share grew from 0.8% in FY17 to 6% in FY18 (till February 2018).
MSIL sees potential threat to customer satisfaction in future, if the dealerships
need to relocate to remote locations due to unaffordable land lease rentals. To
obviate this risk and support dealers, it has initiated strategic investments in
land in prominent as well as upcoming locations for expansion of sales and
service outlets. The acquired land will be leased out to dealers for long term.
MSIL should grow much faster than the industry, led by ~13% CAGR in
distribution network and continued healthy growth with existing dealers due to
favorable product lifecycle.
Exhibit 4: MSIL’s distribution network to strengthen; expect ~13% CAGR in sales network over FY18-21
Existing Dealer (Ex Nexa)
Nexa
Commercial
Total Sales outlet
2,790
300
2,300
FY18E
FY21E
Source: Company, MOSL
190
4,000
802
802
FY10
933
933
FY11
1,100
1,100
FY12
1,204
1,204
FY13
1,310
1,310
FY14
1,619
1,619
FY15
1,947
127
1,820
FY16
2,312
252
2,020
FY17
Exhibit 5: Increasing reach across value chain
Workshops
Nexa
Traditional outlets
Nexa Service
290
252
40
1184
2300
3300
FY17
True value
Commercial
300
1500
3010
5000
FY20
Source: Company, MOSL
400
Exhibit 6: MSIL’s True Value outlets growing rapidly
TrueValue Outlets
1,334
1,484
867
409
450
600
1,007
1,184
FY12
FY13
FY14
FY15
FY16
FY17 FY18E FY20E
Source: Company, MOSL
Upgrading customer experience through Nexa, Arena and True Value
With the successful rollout of
Nexa
(new premium network to improve
aspirational value of the
Maruti
brand), MSIL has taken initiatives to strengthen
its distribution moat by transforming the entire network on the pillars of design,
technology and experience. It is converting the existing mainstream dealerships
to the
Arena
format, migrating the pre-owned car network to the new
True
Value
format, and is building the
Nexa
service network for
Nexa
customers.
20 April 2018
3

Maruti Suzuki
“Target is to improve
customer delight. If they are
satisfied, they have good
feeling, they will return to
us and we can get new
business for future,” Mr
Ayukawa, MD, MSIL
MSIL had launched 30
Arena
outlets until 3QFY18 and intended to add another
32 in 4QFY18. Over the next 2-3 years, it plans to convert all mainstream
showrooms to the
Arena
format.
MSIL is aggressively targeting the pre-owned car market (largely unorganized)
with the twin objective of (a) serving new first-time car buyers, and (b) retaining
existing customers by offering attractive resale value.
It intends to induct a first-time buyer into
True Value
to build loyalty towards
Maruti;
70-75% of
True Value
customers upgrade to new vehicles in 1-2 years.
MSIL is planning to set up ~300
True Value
outlets in the next few years. These
would be standalone outlets and not attached with new car showrooms.
It already has 1,184
True Value
outlets as of FY17 and has added another ~150
outlets in FY18.
True Value
sold ~350k used cars in FY17, and the target is to sell
~600k by FY20.
Exhibit 8: MSIL revamping mainstream outlets to Arena
format
Exhibit 7: MSIL’s premium sales channel, Nexa
Source: Industry
Source: Industry
Exhibit 9: Upgrading used car buying experience through
True Value
Exhibit 10: Nexa service – new aftersales service format
exclusive for Nexa customers
Source: Industry
Source: Industry
20 April 2018
4

Maruti Suzuki
Timely capacity addition to ensure double-digit growth
MSIL currently has an average waiting period of 2-4 months for its models like
Baleno, Brezza,
new
S-Cross
and new
Swift.
Suzuki Motor Gujarat (SMG), 100% parent owned, has started the first phase of
the Gujarat plant with initial capacity of 0.25m units. Total production from the
Gujarat plant phase-1 is estimated at ~150k units in FY18.
It has started work on phase 2 and 3 of capacity expansion, with additional 250k
capacity each, which would be operational by January 2019 and January 2020,
respectively.
With increase in production, Gujarat plant localization should increase to 60-
70% (~15% currently), resulting in a decline in logistics cost.
We believe MSIL has headroom to squeeze more production from its existing
operations, as visible in March 2018 annualized production of ~2.07m units as
well as addition of ~60k units from phase 2 of Gujarat plant from January 2019.
While this implies producible capacity of 2.13m units for FY19, considering
maintenance shutdowns and other holiday, we believe MSIL should be able to
attain our volume estimate of ~2m for FY19 (~12.5% growth).
We estimate volume CAGR of 13% in FY18-20 (v/s 11.6% CAGR in FY16-18) given
increase in producible capacity.
Exhibit 11: March 2018 annualized production run-rate of 2.07m units
Annualised production (mn)
Source: Johnson Matthey Battery Systems, MOSL
Exhibit 12: Timely capacity additions help ensure growth
Capacity ('000 units)
95
104
84
109
102
90 93
86
Cap. Util (%) - RHS
102 103
95 98 94
Exhibit 13: Plant-wise capacity break-up (in ‘000)
Gurgaon
Manesar
Gujarat
76
560
700
560
700
810
700
810
700
810
700
40
845
715
250
900
750
313
900
750
563
900
750
750
900
750
Source: Company, MOSL
Source: Company, MOSL
20 April 2018
5

Maruti Suzuki
Exhibit 14: Production from Gujarat plant to increase
gradually
Production from Gujarat plant (000 units)
% of total volume
23.7
14.0
0.6
10,000
FY17
8.4
150,000
FY18E
280,000
FY19E
540,000
FY20E
FY18E
FY20-21E
Source: Company, MOSL
15%
Exhibit 15: Gradual increase in localization at Gujarat to be
margin accretive
Localization level
60%
Source: Company, MOSL
Exhibit 16: Key vendors are putting up capacity at Gujarat for MSIL
Auto Ancillary
Munjal Kiriu
JBM Group
Lumax Ind.
PPAP Auto
Krishna Group
SKH Metals
Minda Ind.
Segment/ component
Brake parts
Stampings
Lightings
Injection moulding parts
Seating, door trims, high tensile steel parts, plastic components, mirrors and trims
Sheet metals
Alloy wheels
Blow molding components
Airbags
4W switches
Wheel Assemblies
Automotive glass
Steel Wheels
Lightings
Injection moulding, laser marking, electroplating on plastics
Time frame
Commissioned in Sep-17
Started in 3QFY18
Inaugurated on Nov-17
Commissioned in 4QFY18
Commissioned in 4QFY18
Commissioned in 4QFY18
Starting from May-18
Starting from Dec-18
Starting from Apr-19
Phase - 2 by Dec-19 (Phase 1 in Apr-17)
Starting from Apr-19
Starting from 4QFY19
Commissioning by Aug-18
Commissioning by Jan-19
Starting in FY19
Source: Company, MOSL
Asahi India
Wheels India
Hella India
Jay Auto
Lower royalty, localization at Gujarat plant to drive margin expansion
MSIL indicated downward revision in royalty rates for all new models (including
new
Dzire
and
Swift)
starting from
Ignis
(January 2017 onwards) subject to
approval by Suzuki Motor’s board. This will lead to margin expansion, as MSIL
paid average ~5.3% of net sales as royalty to Suzuki in the last two quarters.
Ramp-up and localization at Gujarat plant will also drive margin expansion, as
we expect steady-state margins of Gujarat plant to be 100-150bp higher than
the blended margins. This would be driven by (a) better efficiencies at Gujarat
plant, (b) fiscal incentives for sales in Gujarat, and (c) lower labor cost.
We estimate contribution of Gujarat plants to volumes to increase from ~8.4%
in FY18 to ~23.7% by FY20. Gujarat plant localization is expected to improve to
60-70% (~15% currently) in few years, resulting in a decline in logistics cost.
Further, lease rental income generated out of leased land to dealers would
generate additional income of ~INR800m in FY20.
We expect MSIL’s EBIT margin to improve by 220bp to ~14.3% in FY20 due to (a)
continued mix improvement, (b) discount reduction, (c) lower royalty, (d) ramp-
up at Gujarat plant, and (e) benefits of operating leverage.
20 April 2018
6

Maruti Suzuki
Exhibit 17: EBITDA margin to expand ~180bp over FY18-20E
0.5
0.4
15.6
FY18 Margins
Lower
discount
Product Mix Op. lev+Guj.
Plant
Royalty
0.4
0.9
0.5
17.4
Commodity FY20 Margins
prices
Source: Company, MOSL
Exhibit 18: Royalty to reduce by ~50bp over FY18-20E…
Royalty in JPY(% of sales)
Royalty in INR(% of sales)
0.5
Exhibit 19: INR-based royalty on new models to reduce
forex exposure
% of revenues on INR Royalty
57
58
0.7
4.2
47
1.9
2.9
2.3
2.1
11
FY17
16
5.1
5.6
5.7
5.3
5.6
5.2
FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E
Source: Company, MOSL
FY18E
FY19E
FY20E
FY21E
Source: Company, MOSL
Exhibit 20: Gujarat plant’s margins to improve substantially,
driven by operating leverage
EBIT Margins (%)
MSIL (ex Guj)
Gujarat
MSIL (incl Guj)
Exhibit 21: Gujarat plant would benefit from lower wages
Min Daily Wage Rate for Auto Ind (INR/day)
350
12.9
12.1
12.9
11.4
12.7
14.2
14.6 14.3
305
3.3
FY18
FY19
FY20
Source: Company, MOSL
Gujarat
Haryana
Source: Company, MOSL
20 April 2018
7

Maruti Suzuki
Exhibit 22: SGST incentive to contribute ~40bp to MSIL’s margins by FY20
Gujarat plant volume
Gujarat state contbn to MSIL (%)
Total Domestic Volume
Sales in Gujarat (units)
Realization (INR/unit)
Sales in Gujarat (INR m)
SGST Rate
SGST incentive (INR m)
% of Guj. plant Revenues
% of Total Revenues
FY18
150,000
8.9
1,653,912
13,350
446,536
5,961
14%
835
1.2
0.1
FY19
280,000
8.9
1,877,792
24,920
466,109
11,615
14%
1,626
1.2
0.2
FY20
540,000
8.9
2,145,543
48,060
479,841
23,061
14%
3,229
1.2
0.4
Source: Company, MOSL
Partnership with Toyota evolving
Suzuki’s partnership with Toyota is evolving gradually, with current areas of
partnership in the form of sharing of EV technology and select models.
This partnership will give MSIL much needed access to Toyota’s EV technology,
where parent Suzuki is lacking.
Based on this partnership, MSIL will be launching battery EV in India by 2020.
Also, Suzuki will supply the
Baleno
and
Vitara Brezza
models to Toyota, while
Toyota will supply the
Corolla
model to Suzuki in India.
The vehicles will be sold by respective subsidiaries of Toyota and Suzuki based in
India through their sales networks.
We await details on the schedule of the start of supply, quantum of supply,
pricing and specification of vehicles.
We believe this arrangement is win-win for MSIL and Toyota, as it addresses
weak areas of both the players, though it would result in co-competition at the
market place.
20 April 2018
8

Maruti Suzuki
Valuation and view
A foreword on the long-term view on the PV industry:
Indian passenger vehicle
industry growth has undershot expectations in the last five years (FY13-18), with
~4% CAGR in volumes, impacted by several factors including weaker economic
growth, poor monsoon in FY15/16 and other regulatory impacts. We expect
volumes for the industry to recover, driven by high aspirations, improving
affordability and low penetration (<30 cars per 1,000 population). We believe the PV
industry would reach an inflection point at USD3,000-4,000 PCI by FY21, driving
strong sustainable demand for passenger vehicles. Hence, we estimate PV industry
volumes to grow at 10.9% CAGR over FY18-22 (on low base of ~4% CAGR).
Multi-year favorable product lifecycle for MSIL:
We believe MSIL could emerge
as the biggest beneficiary of impending demand recovery, considering its
stronghold in the worst-impacted entry-level segment as well as favorable
product lifecycle. MSIL’s new launches targeted toward filling gaps in its
portfolio are likely to improve its overall product mix. We believe MSIL would
gain further market share, driven by 13% volume CAGR over FY18-20. This,
coupled with improvement in mix and reduction in discounts, would drive
revenue CAGR of ~17% over FY18-20.
EBIT margin to improve 220bp over FY18-20, driven by improving mix, lower
discounts and operating leverage:
We believe MSIL’s EBIT margin has bottomed
out in 1QFY18 at ~9.4%. It should increase to ~14.3% in FY20 due to (a)
continuance of mix improvement, (b) discount reduction, (c) lower royalty, (d)
ramp-up at Gujarat plant, and (e) benefits of operating leverage. There would be
near-term pressure on margins, emanating from stronger JPY and run-away
inflation in aluminum prices.
Strong margins, asset-light model to result in strong FCF generation and RoE
improvement:
The Gujarat plant arrangement with its parent Suzuki will make
MSIL’s business asset-light, allowing the management to focus more on
marketing. We expect strong cumulative FCF generation of ~INR229b over FY18-
20, after budgeting for annual capex of ~INR135b. RoE is estimated to improve
430bp to ~24%.
Structural improvement in business to drive further re-rating:
All business
parameters such as industry consolidation, market share improvement, reduced
JPY exposure and improving share of premium products have improved MSIL’s
positioning considerably. We see headroom for further improvement in
dividend payout. Consequently, we expect financial parameters to exhibit
improvements over five years. In summary, the moat for MSIL is expected to
strengthen further, which should lead to further re-rating of the stock.
Buy with TP of ~INR10,560:
We remain positive on MSIL, considering (a) multi-
year favorable product lifecycle, (b) improvement in product mix (increasing
share of premium products), aiding realizations and consequently margins, (c)
reducing JPY exposure, (d) lower capex intensity, (e) improvement in FCF
conversion, and (f) high FCF generation and sharp improvement in RoIC. We
believe earnings upgrade cycle for MSIL to continue, driven by higher volumes
and margins. Our FY19/20 consol. EPS is higher by 5%/13% than the consensus,
9
20 April 2018

Maruti Suzuki
led by higher margins. We value MSIL at 25x March 2020E core EPS, at ~35%
premium to 5-year/10-year averages, to factor in further improvement in MSIL’s
positioning (refer exhibits 23 and 24). The stock trades at 26x/20.1x FY19E/20E
EPS. Maintain
Buy
with a TP of INR10,560 (~25x March 2020E core EPS +
~INR1,545 cash/share). Over three years, we expect the stock to return ~15%
per year. Our three-year forward TP is ~INR13,808 (~25x March 2022E core EPS
+ INR2,229 cash/share + INR330 of cumulative dividend).
Exhibit 23: MSIL – Business construct
Key Operating Parameters
FY18E
FY19E
FY20E
FY21E
FY22E
FY12-17 CAGR Remarks
Avg (FY17-
22E)
3.2%
9.6 With PCI reaching inflection point
CAGR
of USD3-4k by FY21, we expect
strong growth in PV industry to
sustain beyond FY21.
6.7% 11.6 Volumes to grow at ~11.6% CAGR
CAGR
(v/s 9.6% for the industry), driven
by recovery in the industry and
launch of 2 new models per year
for MSIL
43.0
Market share expected to remain
stable due to strong product
pipeline, further improvement in
quality & quantity (~2x in 4 years)
of sales network and stable
competitive environment
7.8
Favorable mix, discount
moderation and operating
leverage would off-set cost
pressures, resulting in stable
margins
33.7%
CAGR
37.4%
CAGR
29.8
19.5
RoCEs to improve by 360bp due
to lower capex intensity
20.0 Consol EPS to grow at 20% CAGR
21.4
12.4
Dom. Industry Vols (M unit)
3.33
3.66
4.02
4.43
4.87
Volumes (M units)
1.78
2.00
2.28
2.49
2.71
Dom. Market share (%)
49.7
51.3
53.3
53.1
52.7
EBIT Margins (%)
12.1
12.7
14.3
14.3
14.4
Key Financial Indicators
Consol EPS (INR/Sh)
Core Consol EPS (INR/Sh)
FCFF (INR/Sh)
RoIC (%)
RoCE (%)
Dividend (INR/sh)
Target Price
Core PE (x)
Core Value (INR/Sh)
Net Cash (INR/sh)
Cum Div (FY18-20)
Target Price - Mar'21 (INR/Sh)
275
218
171
71.9
27.8
85
349
271
242
84.1
30.2
110
452
361
347
110.8
33.1
135
516
403
365
123.5
31.9
145
586
450
411
134.6
30.9
165
25
11,249
2,229
330
13,808
18.6 We assign 35% premium to factor in for
structural improvement in business
positioning for MSIL on all counts,
reflecting in sharp improvement in captial
efficiencies, FCF conversion and dividend
payouts. Stock could further re-rate
driven by a) further clarity on MSILs
preparedness for EVs, b) further increase
in dividend payouts.
Source: MOSL
20 April 2018
10

Maruti Suzuki
Exhibit 24: Paradigm shift in every operating parameter
Parameters
New Entrants (# of players)
Market share (%)
Rural contribution (%)
Contribution from premium segment
Gross Margins (%)
EBITDA Margins (%)
Net JPY Exposure (% of sales)
R&D (% of sales)
Capex (% of sales)
FCF conversion (FCF as % of PAT)
RoE (%)
Dividend Payout (%)
1 year forward PE (x)
2010-17
4
41
27
0
26
11.5
18
1
7
57
16
16
18.6
2018-22
1
45-48
38-40
25
30-32
16-17.5
<5
1.5-2
5
~80
22
35-38
20-25
Exhibit 25: Despite superior positioning as against consumer durable companies, MSIL trades at 25-50% discount
Category
Category Penetration (% of Population)
Category Growth 5 yrs (FY11-16, CAGR %)
Market Share (%) *
Level of consolidation (Sh. of Top-5 players) *
Gross Fixed Asset Turnover (x)
Working cap cycle (Days)
ROIC
ROCE
ROE
Valuation
PE
FCF Yield
Voltas
A/C
4
7.6
22
75
13
37
46
17
18
26.0
2.7
Whirlpool
Fridge
31
17
12
94
3.5
-1
18
23
35.3
2.2
Crompton Consumer
Fans
85
11.3
20
56
9
-8
55
39
90
30.0
3.7
Havells
Fans
85
11.3
12
56
4
27
68
26
25
30.0
3.3
Maruti
PV
2
9
47
85
2.2
-60
93
32
23
20.3
3.8
* Including unorganized Source: MOSL, Company
Exhibit 26: Snapshot of revenue model
000 units
A1 (M800)
% of Dom vols
MPV (Vans)
Growth (%)
% of Dom vols
A2 (other hatchbacks)
Growth (%)
% of Dom vols
A3 (Dzire, Ciaz)
Growth (%)
% of Dom vols
Uvs (Ertiga, Compact SUV)
Growth (%)
% of Dom vols
Total Domestic
Growth (%)
% of Total vols
Exports
Growth (%)
% of Total vols
Total Volumes
Growth (%)
ASP (INR 000/unit)
Growth (%)
Net Sales (INR b)
Growth (%)
FY14
17
1.6
102
-7.6
9.7
672
0.7
63.8
202
14.4
19.1
61
-22.8
5.8
1,054
0.2
91.2
101
-16
9
1,155
-1.4
372
18.5
436
22
FY15
0
0.0
129
26.3
11.0
730
8.6
62.3
244
20.9
20.8
68
11.6
5.8
1,171
11.1
90.6
122
20
9
1,292
11.9
379
1.9
438
0
FY16
0
0.0
143
11.2
11.0
779
6.8
59.7
288
18.3
22.1
94
38.4
7.2
1,305
11.5
91.3
124
2
9
1,429
10.6
387
2.0
500
14
FY17
1
0.1
152
6.0
10.5
832
6.7
57.6
264
-8.4
18.3
196
107.3
13.6
1,445
10.7
92.1
124
0
8
1,569
9.8
403
4.1
575
15
FY18E
10
0.6
155
1.8
9.4
937
12.6
56.6
300
13.6
18.1
252
28.9
15.3
1,654
14.5
92.9
126
1
7
1,779
13.4
434
7.7
680
18
FY19E
12
0.6
162
5.0
8.6
1,050
12.1
55.9
375
25.0
20.0
278
10.3
14.8
1,878
13.5
93.8
124
-1
6
2,002
12.5
447
3.0
795
17
FY20E
13
0.6
172
6.0
8.0
1,181
12.5
55.0
437
16.5
20.4
343
23.1
16.0
2,146
14.3
94.1
133
7
6
2,279
13.8
466
4.4
933
17
20 April 2018
11

Maruti Suzuki
Exhibit 27: Comparative valuation
CMP
(INR)*
Auto OEM's
Bajaj Auto
2,860
Hero MotoCorp
3,740
TVS Motor
670
M&M
798
Maruti Suzuki
9,039
Tata Motors
336
Ashok Leyland
155
Eicher Motors
31,200
Auto Ancillaries
Bharat Forge
762
Exide Industries
243
Amara Raja Batteries 849
BOSCH
19,422
Endurance Tech
1,305
Motherson Sumi
351
Mahindra CIE
236
Buy
Neutral
Neutral
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Neutral
Buy
Buy
Buy
Rating
TP
(INR)
3,550
3,922
710
889
10,560
523
179
34,772
869
286
1,000
19,096
1,531
437
274
P/E (x)
FY19E
17.0
18.5
29.9
17.0
25.9
6.0
21.4
29.8
28.9
24.5
25.0
33.3
34.1
28.1
19.4
FY20E
14.5
16.9
20.7
15.6
20.0
5.8
16.8
23.2
21.9
20.0
21.2
28.0
25.6
20.1
15.5
EV/EBITDA (x)
FY19E
12.3
11.3
17.9
13.5
16.4
2.7
11.2
24.8
16.6
14.1
12.8
19.7
16.6
10.2
10.1
FY20E
10.1
10.2
12.8
11.9
12.9
2.4
8.7
20.0
13.3
11.7
10.7
16.5
13.2
7.3
8.1
RoE (%)
FY19E
24.6
32.2
32.0
14.8
21.8
23.9
27.6
35.5
23.3
14.0
18.0
17.5
23.8
25.4
11.7
FY20E
26.0
30.9
35.1
15.2
24.0
19.8
29.2
34.2
25.4
15.3
18.3
18.7
26.4
29.3
12.9
Div Yield (%)
FY19E
2.6
2.5
0.6
1.3
1.2
0.1
1.5
0.6
0.7
0.9
0.6
1.0
0.5
0.9
0.0
FY20E
3.0
2.8
0.7
1.3
1.5
0.1
1.6
0.6
0.8
1.3
0.7
1.2
1.0
1.3
0.0
EPS CAGR
(%)
FY18-20E
15.5
9.1
51.3
13.5
28.2
52.8
30.1
28.5
31.9
22.9
19.0
23.0
35.2
47.0
25.8
Source: MOSL
20 April 2018
12

Maruti Suzuki
Maruti Suzuki | Story in Charts: Further strengthening its moat
Exhibit 28: Market share gains continue in most segments
FY13
Mini
Compact
Compact-
Sedan
Mid-Size
UV1
Domestic PV
75.4
34.2
80.6
2.7
27.4
39.4
FY14
76.7
37.6
63.8
2.2
21.1
42.1
FY15
81.4
43.1
53.7
15.4
21.4
45.0
FY16
79.8
42.0
58.1
25.2
25.6
46.8
FY17
67.8
46.2
54.8
32.8
38.2
47.4
FY18
71.3
52.2
61.8
30.0
38.8
50.0
(10.8)
3.3
(1.4)
Exhibit 29: Expect ~13% volume CAGR over FY18-20, led by
ramp-up in Gujarat plant and product refreshes
Total volumes ('000 units)
11.9
10.6
9.8
Growth (%)
13.4
12.5
13.8
Source: Company, MOSL
FY12
FY13
FY14
FY15
FY16
FY17 FY18E FY19E FY20E
Source: Company, MOSL
Exhibit 30: Discounts to moderate over FY18-20E
Discounts (INR/Car)
4.0
as a % of Realizations
Exhibit 31: Mix to improve in favor of premium products
over next couple of years
Upto 400k
Price 600-800k
2
10
19
2.8 2.6
69
65
2
11
22
23
24
1
23
0
24
3
23
26
6
26
23
44
Price 400-600k
Price 800k and above
6
34
20
40
6
41
18
36
5
41
19
34
7
40
18
35
3.3 3.3
3.8
5.0 4.7
4.5
3.2
3.8
3.3
52
52
47
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18EFY19EFY20E
Source: Company, MOSL
Source: Company, MOSL
Exhibit 32: Fixed cost as % of sales
Fixed Cost as % Sales
7.7%
8.6% 8.6%
9.7%
8.9%
8.6% 7.9%
7.5%
Exhibit 33: EBITDA margins and EBITDA per car
EBITDA (INR '000/car)
13.3
9.7
7.1
22
9.7
13.4
EBITDA Margins (%)
15.4 15.4 15.6 16.0
17.4
5.5% 5.5%
7.1%
11.8
39
28
36
45
52
62
67
70
75
83
Source: Company, MOSL
Source: Company, MOSL
20 April 2018
13

Maruti Suzuki
Exhibit 34: EPS (INR) and growth in EPS (%)
88.0
EPS
Growth (%) - RHS
44.5 38.4
33.4
9.6
Exhibit 35: Dividend payout (%) and cash balance (INR b)
Cash (INR b)
Dividend Payout (%)
37.1
27.3 30.0
9.7
8.1
11.0
15.4
12.2
15.2
24.5
23.7
37.9 38.6 36.4
39.9
46
-21.1
87
-7.8
80
57
-29.2
79
16.3
92 123 178 246 269 343 446
Source: MOSL, Company
Source: MOSL, Company
Exhibit 36: Despite significant capex, FCF to remain strong
(INR b)
FCF conversion (FCF as % of PAT)
7.7
4.9
79
-6
8.3 8.7 8.0
Capex (% of sales)
Exhibit 37: ROE v/s ROIC (%)
120
100
80
60
40
20
0
ROE
ROIC
6.5
6.3
5.7
4.8 4.1
4.6 5.0
109 93
63
78
70
43
-25
24
51
85
Source: Company, MOSL
Source: Company, MOSL
20 April 2018
14

Maruti Suzuki
Financials and Valuations
Income Statement
Y/E March
Operating Other Income
Net Op Income
Change (%)
EBITDA
EBITDA Margins (%)
Depreciation
EBIT
EBIT Margins (%)
Interest
Other Income
EO Expense
PBT
Tax
Effective tax Rate (%)
PAT
Change (%)
% of Net Sales
Adj. PAT
Change (%)
2013
9,753
435,879
22.5
42,296
9.7
18,612
23,684
5.4
1,898
8,124
0
29,910
5,989
20.0
23,921
46.3
5.6
23,921
46.3
2014
11,470
437,918
0.5
51,871
11.8
20,844
31,027
7.1
1,759
7,317
0
36,585
8,755
23.9
27,830
16.3
6.5
27,830
16.3
2015
13,651
499,706
14.1
67,129
13.4
24,703
42,426
8.5
2,060
8,316
0
48,682
11,570
23.8
37,112
33.4
7.6
37,112
33.4
2016
10,969
575,381
15.1
88,844
15.4
28,202
60,642
10.5
815
14,610
0
74,437
20,794
27.9
53,643
44.5
9.5
53,643
44.5
2017
11,254
680,348
18.2
104,710
15.4
26,021
78,689
11.6
894
22,798
1,180
99,413
26,036
26.2
73,377
36.8
11.0
74,248
38.4
2018E
13,735
794,594
16.8
123,756
15.6
27,552
96,204
12.1
900
20,988
0
116,292
34,888
30.0
81,404
10.9
10.4
81,404
9.6
2019E
16,614
933,240
17.4
149,413
16.0
30,790
118,624
12.7
900
28,198
0
145,921
42,317
29.0
103,604
27.3
11.3
103,604
27.3
(INR Million)
2020E
19,646
1,093,578
17.2
189,840
17.4
33,928
155,912
14.3
900
33,327
0
188,339
53,677
28.5
134,662
30.0
12.5
134,662
30.0
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Loans
Deferred Tax Liability
Capital Employed
Gross Fixed Assets
Less: Depreciation
Net Fixed Assets
Capital WIP
Investments
Curr.Assets, Loans
Inventory
Sundry Debtors
Cash & Bank Balances
Loans & Advances
Others
Current Liab. & Prov.
Sundry Creditors
Provisions
Net Current Assets
Appl. of Funds
E: MOSL Estimates
2013
1,510
184,279
185,790
14,928
4,087
204,805
198,007
100,015
97,992
19,422
70,783
78,683
18,407
14,237
7,750
23,940
14,349
62,076
53,335
8,741
16,608
204,805
2014
1,510
208,270
209,781
16,851
5,866
232,498
227,018
119,114
107,904
26,214
101,179
70,061
17,060
14,137
6,298
28,895
3,672
72,860
64,103
8,757
-2,800
232,497
2015
1,510
252,709
254,219
1,802
884
256,905
147,111
26,989
120,122
18,169
139,514
74,809
26,859
11,157
183
2,639
33,971
95,709
84,106
11,603
-20,900
256,905
2016
1,510
297,332
298,842
774
1,943
301,559
153,218
28,118
125,100
10,069
199,322
84,909
31,321
13,222
391
1,744
38,231
117,841
105,748
12,093
-32,932
301,559
2017
1,510
360,201
361,711
4,836
4,640
371,187
186,558
53,666
132,892
12,523
282,284
82,234
32,622
11,992
131
1,216
36,273
138,746
126,001
12,745
-56,512
371,187
2018E
1,510
410,742
412,252
4,836
4,640
421,728
234,081
81,218
152,863
10,000
282,284
135,043
39,185
17,416
40,953
1,216
36,273
158,462
140,292
18,170
-23,419
421,728
2019E
1,510
474,405
475,915
4,836
4,640
485,391
279,081
112,008
167,073
10,000
282,284
205,229
46,023
20,455
101,263
1,216
36,273
179,195
157,385
21,810
26,034
485,391
(INR Million)
2020E
1,510
560,049
561,559
4,836
4,640
571,035
324,081
145,935
178,146
10,000
282,284
304,747
53,930
23,969
189,359
1,216
36,273
204,141
177,153
26,989
100,606
571,035
20 April 2018
15

Maruti Suzuki
Financials and Valuations
Ratios
Y/E March
Basic (INR)
Adjusted EPS
Consol EPS
Cash EPS
Book Value per Share
DPS
Div. payout (%)
Valuation (x)
Consol. P/E
Cash P/E
EV/EBITDA
EV/Sales
P/BV
Dividend Yield (%)
FCF Yield (%)
Profitability Ratios (%)
RoIC
RoE
RoCE
Turnover Ratios
Debtors (Days)
Inventory (Days)
Creditors (Days)
Work. Cap. (Days)
Asset Turnover (x)
2013
79.2
81.7
143.4
615
8.0
11.7
2014
92.1
94.4
163.4
694
12.0
15.2
2015
122.9
126.0
207.8
842
25.0
24.5
72.0
43.7
38.8
5.4
10.8
0.3
1.2
18.3
12.9
15.5
11
17
60
-32
2.1
18.8
13.3
16.5
11
16
75
-48
1.8
26.7
14.6
19.8
8
23
88
-57
1.9
2016
177.6
182.0
275.3
989
35.0
23.7
49.9
33.0
28.6
4.5
9.2
0.4
2.1
39.9
18.0
25.0
8
23
100
-69
1.9
2017
245.8
248.6
334.8
1,197
75.0
37.1
36.5
27.1
23.5
3.7
7.6
0.8
2.5
60.9
20.3
27.3
6
21
98
-72
1.8
2018E
269.5
275.1
366.3
1,365
85.0
37.9
33.0
24.8
19.6
3.1
6.7
0.9
1.9
71.9
19.7
27.8
7
21
93
-65
1.9
2019E
343.0
349.0
450.9
1,575
110.0
38.6
26.0
20.1
15.8
2.6
5.8
1.2
2.7
84.1
21.8
30.2
7
21
88
-59
1.9
2020E
445.8
452.3
564.6
1,859
135.0
36.4
20.1
16.1
12.0
2.1
4.9
1.5
3.8
110.8
24.0
33.1
7
22
85
-56
1.9
Cash Flow Statement
Y/E March
Profit before Tax
Interest
Depreciation
Direct Taxes Paid
(Inc)/Dec in WC
Other Items
CF from Oper.Activity
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Invest.
CF from Inv. Activity
Change in Networth
Inc/(Dec) in Debt
Interest Paid
Dividends Paid
CF from Fin. Activity
Inc/(Dec) in Cash
Add: Op. Balance
Closing Balance
2013
29,910
-4,470
18,612
-5,333
5,123
43,842
-38,100
5,742
2,359
-35,741
0
-5,493
-2,003
-2,167
-9,663
-1,562
24,362
22,799
2014
36,585
-7,636
20,844
-8,320
7,562
49,035
-34,927
14,108
-14,002
-48,929
0
3,373
-1,615
-2,417
-659
-553
7,750
7,197
2015
48,682
2,060
24,703
-10,407
7,457
-9,288
63,207
-31,487
31,720
-12,613
-44,100
0
-13,282
-2,098
-4,241
-19,621
-514
697
183
2016
74,437
815
28,202
-19,099
14,631
-14,141
84,845
-26,327
58,518
-45,947
-72,274
0
-2,353
-921
-9,090
-12,364
207
183
390
2017
99,413
894
26,021
-23,173
21,940
-22,248
102,847
-33,723
69,124
-58,092
-91,815
0
2,527
-1,095
-12,725
-11,293
-261
391
130
2018E
116,292
900
27,552
-34,888
7,729
-20,988
96,597
-45,000
51,597
20,988
-24,012
0
0
-900
-30,864
-31,764
40,821
131
40,952
(INR Million)
2019E
145,921
900
30,790
-42,317
10,857
-28,198
117,954
-45,000
72,954
28,198
-16,802
0
0
-900
-39,941
-40,841
60,310
40,953
101,263
2020E
188,339
900
33,928
-53,677
13,525
-33,327
149,688
-45,000
104,688
33,327
-11,673
0
0
-900
-49,019
-49,919
88,097
101,263
189,359
20 April 2018
16

Maruti Suzuki
NOTES
20 April 2018
17

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
Maruti Suzuki
*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
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.
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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
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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
Maruti Suzuki
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.
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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
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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
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets services license and an exempt financial adviser in Singapore,
as per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore.
Persons in Singapore should contact MOCMSPL in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”, of which some of
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Singapore Person must immediately discontinue any use of this Report and inform MOCMSPL.
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
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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
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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
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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
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