18 January 2019
Update
| Sector:
Metals
NMDC
Buy
BSE SENSEX
36,387
S&P CNX
10,907
CMP: INR91
TP: INR111(+22%)
Iron ore dispatches to grow even without Donimalai
17mtpa capacity already renewed; Maintain Buy
We met the management of NMDC for a business update. Key highlights:
Karnataka mining complex:
Donimalai and Kumarswamy are NMDC’s two
mining leases (ML) in Karnataka with permitted annual production of 7mtpa
each. Donimalai operations are temporarily shut pending a hearing in the
High Court regarding unreasonable demand of 80% share in revenue as a
condition for renewing the ML. Management is very confident of winning the
case because (1) this judgment will have unprecedented impact on all Public
Sector Undertakings (PSUs), (2) the mining act doesn’t provide for it, and (3)
it will stifle merchant mining. The next court hearing is on 22 January 2019.
Chhattisgarh mining complex:
Two MLs with total capacity of 17mtpa have
already been renewed, which is half of current production. ML of 7mtpa
deposit 11B is valid up to September 2037 (20 years) and 10mtpa deposit 13
is valid up to 2067 (50 years). Renewal of other leases is in process. NMDC is
currently shipping about 23mtpa iron ore from this complex. In the worst
case if outcome in the Donimalai judgment is not favorable, NMDC will still
have 17mtpa profitable capacity. Further, NMDC is confident that the
Chhattisgarh government will not be as demanding as the Karnataka
government. The Chhattisgarh government is aware that MLs will not fetch
much price from private miners in auction because of the Naxal problem in
the area.
Targeting 30-31mt dispatches in FY19 even without Donimalai:
NMDC has
already dispatched 22.1mt in nine months and is targeting another 9mt
dispatches in 4Q. A slightly better volume can be achieved in FY20 aided by
higher exports.
Strengthening evacuation infra:
NMDC is creating a storage yard near
Jagdalpur, which will debottleneck dispatches from Chhattisgarh by 4-5mt
(to 28mt). This will help dispatches of 35mt even without Donimalai. KK line
is being doubled in phases. The project will be fully completed during FY21.
3mtpa steel plant at Nagarnar
will be commissioned during FY20. About
1000 people have been recruited at various levels (mostly retirees from SAIL,
RINL, NINL), O&M has been outsourced.
Maintain Buy:
We believe that NMDC will eventually get its MLs renewed
without sharing any revenues as per the Mining Act Amendment 2015, but
are not sure how long the legal battle will drag. The steel plant may have
some teething troubles in the initial years, but it is likely to be a valuable
asset. It will enjoy low cost iron ore, economy of scale, high productivity from
state-of-art technology, and it doesn’t have legacy issues like SAIL. We value
the stock at INR111/share based on 3xEV/EBITDA for book value and for
CWIP at end-FY20. Maintain
Buy.
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
NMDC IN
3,164
287 / 4
152 / 86
-5/-5/-40
434
27.6
Financials Snapshot (INR b)
Y/E March
2019E 2020E 2021E
Sales
108.1
96.2 141.3
EBITDA
62.3
48.8 60.6
Adj. PAT
39.9
31.8 37.7
Adj. EPS (INR)
12.6
10.1 11.9
EPS Gr(%)
-3.6 -20.4 18.6
BV/Sh. (INR)
82.0
84.9 89.6
RoE (%)
15.9
12.0 13.7
RoCE (%)
15.2
11.5 13.1
P/E (x)
7.2
9.1
7.6
P/BV
1.1
1.1
1.0
Shareholding pattern (%)
As On
Dec-18 Sep-18 Dec-17
Promoter
72.4
72.4
74.9
DII
19.0
19.4
17.4
FII
3.9
3.7
3.6
Others
4.7
4.5
4.1
FII Includes depository receipts
Stock Performance (1-year)
160
140
120
100
80
NMDC
Sensex - Rebased
Sanjay Jain – Research Analyst
(SanjayJain@MotilalOswal.com); +91 22 6129 1523
Dhruv Muchhal – Research Analyst
(Dhruv.Muchhal@MotilalOswal.com); +91 22 6129 1549
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.
 Motilal Oswal Financial Services
NMDC
Exhibit 1: Key operating metrics
Iron ore production - m tons
Iron ore sales volume - m tons
Blended realization - INR/t
Operating expenses - INR/t
Royalty/FDT/Cess
Selling
Mining
EBITDA - INR/t
FY11
25.2
26.2
4,320
1,036
355
432
249
3,284
FY12
27.8
27.3
4,125
855
375
53
427
3,270
FY13
27.2
26.3
4,074
1,112
491
311
309
2,963
FY14
30.0
30.5
3,954
1,278
442
442
394
2,676
FY15
31.0
30.5
4,049
1,383
573
383
427
2,666
FY16
28.6
28.8
2,239
1,025
371
145
510
1,214
FY17
34.0
35.6
2,479
1,217
429
204
585
1,262
FY18
35.6
36.1
3,220
1,468
615
177
675
1,752
FY19E
FY20E
29.6
32.0
30.9
32.0
3,458
3,005
1,474
1,481
599
547
174
280
701
654
1,985
1,524
Source: MOSL
Exhibit 2: Mining leases
Mines
Lease
area
(Ha)
Extraction
capacity
Lease
Validity
(mtpa)
Original extended
Proven
reserves
(m tons)
Fe %
Merchant mining
Kirandul Complex, Chhattisgarh
Deposit 14
Deposit 14 NMZ
Deposit 11C
Bacheli Complex, Chhattisgarh
Deposit 5
Deposit 10
Deposit 11A
Deposit 11B
Donimalai Complex, Karnataka
Donimalai
Kumarswamy
JV with CMDC, Chhattisgarh
Deposit 13
322.4
506.7
5
7
0.7
10
5
7
2015
2015
2017
2015
2015
2017
New
2018
2022
2020
2020
2020
2020
2020
2020
2037
?
2022
2067
132.2
63.9
0.7
43.5
142.4
25.6
114.3
22.1
130.9
64.7
65.8
64.7
65.4
65.9
65.5
540.1
309.3
874.9
608
4
7
10
45.7
66.3
319.6
65.5
995.2
Source: MOSL, Company
Exhibit 3: Target price Calculations
Y/E March
Iron ore
EBITDA per ton (INR)
Volumes (m tons)
Steel
EBITDA per ton (INR)
Volumes (m tons)
EBITDA
Target EV/EBITDA(x)
Target EV
Less: Net Debt
Add: CWIP
Equity Value
Target price (INR/share)
2016
1,214
28.8
2017
1,262
35.6
2018
1,752
36.1
2019E
1,996
31.2
2020E
1,524
32.0
2021E
1,721
35.2
5,000
1.0
65,591
5.0
327,955
-37,635
80,199
445,790
141
34,998
44,944
63,198
62,327
-132,666
97,229
-52,893
118,314
-49,381
125,199
-48,274
145,199
48,756
3.0
146,268
-38,225
165,199
349,692
111
Source: MOSL, Company
18 January 2019
2
 Motilal Oswal Financial Services
NMDC
Financials and Valuations
Income Statement (Consolidated)
Y/E March
Net sales
Total Expenses
Iron ore cost (INR/ton)
Steel cost (INR/t)
EBITDA
% of Net Sales
EBITDA per ton ore
EBITDA per ton steel
Depn. & Amortization
EBIT
Net Interest
Other income
PBT before EO
EO income
PBT after EO
Tax
Rate (%)
Reported PAT
Adjusted PAT
Change (%)
Balance Sheet
Y/E March
Share Capital
Reserves
Share holders funds
Loans
Defferred tax liability (net)
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Investments
Curr. Assets
Inventories
Sundry Debtors
Cash and Bank
Loans and Advances
Curr. Liability & Prov.
Sundry Creditors
Other Liabilities & prov.
Net Current Assets
Application of Funds
2016
64,556
29,559
1025
34,998
54.2
1,214
2,078
32,920
17,744
50,664
-1,848
48,816
14,769
30.3
34,047
35,335
-49.1
2017
88,294
43,350
1217
44,944
50.9
1,262
1,962
42,982
9,088
52,070
-8,933
43,137
17,038
39.5
26,099
31,504
-10.8
2018
116,149
52,951
1468
63,198
54.4
1,752
2,560
60,638
371
5,197
65,464
-5,309
60,155
22,093
36.7
38,062
41,421
31.5
2019E
108,054
45,727
1464
62,327
57.7
1,996
2,822
59,504
205
3,742
63,041
-1,782
61,260
22,456
36.7
38,803
39,932
-3.6
2020E
96,153
47,397
1481
48,756
50.7
1,524
3,299
45,457
1,311
46,768
46,768
14,966
32.0
31,802
31,802
-20.4
2021E
141,301
80,710
2293
31,000
60,591
42.9
1,721
5,000
5,667
54,924
529
55,453
55,453
17,745
32.0
37,708
37,708
18.6
2016
3,965
297,146
301,110
14,970
1,222
317,302
37,304
18,234
19,070
97,229
6,954
210,203
6,370
18,961
147,636
37,237
16,154
3,244
12,909
194,050
317,302
2017
3,164
222,026
225,189
6,112
231,301
39,724
20,196
19,528
118,314
7,270
111,909
5,400
10,435
52,893
43,181
25,719
1,988
23,731
86,190
231,301
2018
3,164
240,374
243,538
5,001
7,141
255,680
49,473
22,756
26,717
125,199
7,865
126,311
5,717
14,727
54,382
51,484
30,411
1,595
28,815
95,900
255,680
2019E
3,164
256,398
259,562
5,001
7,141
271,704
53,473
25,579
27,895
145,199
7,865
125,482
5,921
14,802
53,275
51,484
34,736
5,921
28,815
90,746
271,704
2020E
3,164
265,420
268,584
5,001
7,141
280,726
57,473
28,878
28,596
165,199
7,865
113,151
5,269
13,172
43,226
51,484
34,084
5,269
28,815
79,067
280,726
2021E
3,164
280,348
283,512
5,001
7,141
295,654
157,473
34,544
122,929
80,199
7,865
121,219
7,743
19,356
42,636
51,484
36,558
7,743
28,815
84,661
295,654
18 January 2019
3
 Motilal Oswal Financial Services
NMDC
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 (%)
EV (USD/t)
Return Ratios (%)
EBITDA Margins
Net Profit Margins
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Debtor (Days)
Inventory (Days)
Creditors (Days)
Growth (%)
Sales
EBITDA
PAT
Leverage Ratio (x)
Current Ratio
Debt/Equity
E: MOSt Estimates
Cash Flow Statement
Y/E March
Pre-tax profit
Depreciation
(Inc)/Dec in Wkg. Cap.
Tax paid
CF from Op. Activity
(Inc)/Dec in FA + CWIP
CF from Inv. Activity
Dividend (incl. tax)
CF from Fin. Activity
(Inc)/Dec in Cash
Add: opening Balance
Closing Balance
2016
8.9
9.4
75.9
11.0
172.4
10.2
9.6
1.2
3.5
6.5
12.1
2.5
54.2
54.7
11.3
11.0
37.4
1.7
0.2
50
20
20
-47.8
-57.0
-49.1
13.0
-0.4
2017
10.0
10.6
71.2
5.2
74.9
9.1
8.6
1.3
2.7
5.2
5.7
2.4
50.9
35.7
13.5
11.5
44.0
2.2
0.4
43
22
8
36.8
28.4
-10.8
4.4
-0.2
2018
13.1
13.9
77.0
5.3
52.9
7.0
6.5
1.2
2.1
3.8
5.8
2.6
54.4
35.7
17.7
17.1
63.4
2.3
0.5
46
18
5
31.5
40.6
31.5
4.2
-0.2
2019E
12.6
13.5
82.0
6.0
58.7
7.2
6.7
1.1
2.2
3.8
6.6
2.6
57.7
37.0
15.9
15.2
56.4
2.0
0.4
50
20
20
-7.0
-1.4
-3.6
3.6
-0.2
2020E
10.1
11.1
84.9
6.0
71.6
9.1
8.2
1.1
2.6
5.1
6.6
2.7
50.7
33.1
12.0
11.5
47.6
1.7
0.3
50
20
20
-11.0
-21.8
-20.4
3.3
-0.1
2021E
11.9
13.7
89.6
6.0
60.4
7.6
6.6
1.0
1.8
4.1
6.6
2.7
42.9
26.7
13.7
13.1
32.6
0.9
0.5
50
20
20
47.0
24.3
18.6
3.3
-0.1
2016
48,816
2,078
93
-17,373
29,159
-20,242
-21,576
-58,694
-44,379
-36,796
184,431
147,636
2017
43,137
1,962
13,117
-18,942
39,679
-23,505
-23,821
-19,553
-110,601
-94,743
147,636
52,893
2018
60,155
2,560
-8,221
-23,057
34,211
-16,635
-17,229
-20,122
-15,493
1,489
52,893
54,382
0
2019E
61,260
2,822
4,047
-22,456
45,673
-24,000
-24,000
-22,780
-22,780
-1,107
54,382
53,275
0
2020E
46,768
3,299
1,630
-14,966
36,731
-24,000
-24,000
-22,780
-22,780
-10,049
53,275
43,226
0
2021E
55,453
5,667
-6,185
-17,745
37,190
-15,000
-15,000
-22,780
-22,780
-590
43,226
42,636
0
18 January 2019
4
 Motilal Oswal Financial Services
NMDC
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*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 (MCX) & National Commodity & Derivatives Exchange Ltd. (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. Details of associate entities of Motilal Oswal Securities Limited are available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
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
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. Details of pending Enquiry Proceedings of Motilal Oswal Securities Limited are available on the website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
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
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 whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOSL has not received any compensation or other benefits from third party in connection with the research report
10 MOSL has not engaged in market making activity for the subject company
****************************************************************
****************************************************************
18 January 2019
5
 Motilal Oswal Financial Services
NMDC
The associates of MOSL may have:
-
financial interest in the subject company
-
actual/beneficial ownership of 1% or more securities in the subject company
-
received compensation/other benefits from the subject company in the past 12 months
-
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.
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acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
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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)
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received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOSL also earns DP income from
clients which are not considered in above disclosures.
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.
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.
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: 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. 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 Real Estate Investment Advisors II Pvt. Ltd. offers Real Estate
products. * Motilal Oswal Private Equity Investment Advisors Pvt. Ltd. offers Private Equity products.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench. The existing registration no(s) of MOSL would be used until receipt of new MOFSL registration numbers.
18 January 2019
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