Indraprastha Gas
BSE SENSEX
37,536
S&P CNX
11,301
12 March 2019
Update | Sector: Oil & Gas
CMP: INR297
TP: INR389 (+31%)
Buy
Far away from the electric shock
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 (%)
IGL IN
700
208.2 / 3
320 / 215
1/11/-13
687
55.0
The Delhi Cabinet aims to introduce 1,000 electric buses by Jun’20. This is in addition
to CNG buses (500 low-floor and 500 normal).
We note that Energy Efficiency Services Ltd (EESL) has not progressed much with the
earlier order of 10,000 electric cars. More so, the recent tender of additional 10,000
cars has been quashed indefinitely.
Multiple medium term triggers exist in the form of (a) intercity/highway travel on
CNG, (b) higher conversion of LCVs, (c) increasing differential of diesel vehicles v/s
petrol/CNG post the BS-VI implementation, (d) increasing launches from OEMs, (e)
newer applications, (f) stricter enforcement of pollution norms in industries, and (g)
growth in existing and newer areas.
Financials Snapshot (INR b)
Y/E March
2019E 2020E 2021E
Net Sales
56.1
68.3
79.7
EBITDA
12.4
13.8
15.7
PAT
7.6
8.9
10.2
EPS (INR)
10.9
12.7
14.6
Gr. (%)
15.7
16.7
14.6
BV/Sh (INR)
58.8
68.0
79.1
RoE (%)
20.0
20.1
19.9
RoCE (%)
18.9
19.1
19.0
P/E (x)
27.3
23.4
20.4
P/BV (x)
5.1
4.4
3.8
Shareholding pattern (%)
As On
Dec-18 Sep-18 Dec-17
Promoter
DII
FII
Others
45.0
23.7
19.9
11.4
45.0
22.2
21.1
11.7
45.0
18.6
24.8
11.6
Electric vehicles not ready to take off
EESL floated its first tender for 10,000 EVs in Aug’17, with the first phase of 500
cars to be delivered by Nov’17 and the rest by Jun’18. The tender was closed
after much delay in Jan’18, with revised delivery deadline of Mar’19.
Only 10% of the contracted EVs were delivered by end-Dec’18, extending the
timeline further to Sep’19.
EESL’s tender in Nov’17 for 250 charging stations was finally awarded after
cancellation of the first tender (Sept’17) and the follow on snap-bid (Oct’17),
pitiful when compared against the ~4,000 charging stations required for
efficient running of 10,000 EVs.
The second tender for additional 10,000 EVs in Apr’18 got cancelled as the
automobile companies awaited government policies on specifications for the
charging infrastructure.
FII Includes depository receipts
Stock Performance (1-year)
Indraprastha Gas
Sensex - Rebased
360
320
280
240
200
Expect insignificant impact on volumes in the medium term
Hence, we believe that EVs may have an impact only in the longer run. In the
short- to medium-term, new areas like Rewari, Karnal and Muzzafarnagar
would add 0.2mmscmd capacity each in the next 3-4 years.
Haryana City Gas sells 0.4mmscmd; of this, it sources 0.25mmscmd from IGL
with margins to IGL being minimal. Post the takeover, IGL may increase sales
volume to ~1-1.5mmscmd within three years.
Newly awarded geographical areas in the tenth round — (a) Kaithal (Haryana),
(b) Ajmer, Pali and Rajsamand (Rajasthan), and (c) Kanpur, Fatehpur and
Hamirpur (Uttar Pradesh) – would further add to the growth in the medium
term.
Implementation of BS-VI would increase the cost differential of diesel vehicles
over petrol/CNG vehicles. Increasing penetration of natural gas with
implementation of the ninth and tenth round of CGD bidding is expected to
boost intercity/highway travel on CNG.
Swarnendu Bhushan
(Swarnendu.Bhushan@MotilalOswal.com); +91 22 6129 1529
Sarfraz Bhimani
(Sarfraz.Bhimani@MotilalOswal.com); +91 22 61291566
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.

Indraprastha Gas
Valuation and recommendation
We do not expect EVs to be a threat to IGL in the short-to medium-term. We
expect volume growth to stay strong at 12%/11% in FY20/21. In the short term,
EBITDA/scm may increase due to the INR appreciation. However, we remain
conservative with estimate of INR5.8/INR5.9 in FY20/21.
Both IGL’s subsidiaries — MNGL and CUGL – have been growing at a steady
pace. Contribution from JVs for 9MFY19 stands at INR695m, +25% YoY.
We expect ROEs of 20.1%/19.9% in FY20/21. The stock is trading at 23.4x FY20
standalone EPS of INR12.7. We expect standalone EPS CAGR of 16% during
FY18-21. We move our valuation from Dec’20 to FY21, valuing IGL at 24x
(unchanged) FY21 standalone EPS of INR14.6, adding the contribution from its
JVs. With a target price of INR389 (earlier: INR381), we reiterate our
Buy
recommendation for the stock.
12 March 2019
2

Indraprastha Gas
So far, electric vehicles have failed to take off
In the beginning, EESL
1
planned replacing ~500,000 cars over 3-4 years in
government offices with EVs (link).
It launched its first tender for 10,000 EVs in Aug’17, with first batch of 500 cars
to be delivered in Nov’17 and the rest by Jun’18.
The tender was closed after much delay in Jan’18 with revised deadline of
Mar’19, due to lack of charging infrastructure.
EESL floated tender for charging stations in Sep’17 for 4,000 vehicles and a snap-
bid in Oct’17 for 300 vehicles to meet its requirement of first 10,000 EVs.
However, both the tender and the bid were cancelled due to complaints from
bidders on lack of clarity in the charging specifications.
In Nov’17, yet another tender was floated for 250 charging stations and was
finally awarded to Exicom Power Solutions and EVI Technologies (link). However,
at least 4,000 stations are required for efficient running of 10,000 EVs.
Tata Motors and Mahindra and Mahindra won the tender for supplying Tata
Tigor and E-Verito models, respectively, the costs being much higher at ~1.1m
per car (~50% higher than the ICE variant).
EESL floated the second tender for additional 10,000 EVs in Apr’18. This was
later scrapped as automobile companies awaited government policies on
specifications for charging infrastructure.
Even the deadline for the first tender of 10,000 EVs has been extended from
Mar’19 to Sep’19, as many states are yet to decide on their EV policies, resulting
in delivery of only 1,000 vehicles.
0F
Exhibit 1: EESL timeline trajectory since 2HCY17
First Tender floated for 10,000 cars
First phase: 500 cars by Nov-17
Rest of the cars by June-18
First tender was closed
Delay was due to lack of
charging infrastructures
Second Tender floated for 10,000 cars
Later got cancelled
as the automobile
companies await government policies
Aug-17
Sep-17
Oct-17
Snap Bid for 300
charging stations
Later got cancelled
Nov-17
Floated a tender for 250
charging stations
Awarded
Jan-18
Apr-18
Jan-19
Extended timeline
for
first tender to Sep-19
Floated a tender for 4000
charging stations
Later got cancelled
Source: EESL, ET Energy World, Business Today , MOFSL
FAME-II policy has several restrictions
FAME-II policy has a total of INR88b in subsidies for 2Ws, 3Ws, 4Ws and buses.
The rest — INR12b – is for setting up charging infrastructure.
The policy comes with numerous riders that make the implementation difficult,
these include:
Individuals can avail subsidies for 2Ws, while only fleet operators would get
subsidies for 4Ws. The buses need to be on operating lease from
manufacturers to State Transport Corporations, the capex as well as the
maintenance cost being the responsibility of the manufacturers.
Uniform incentive of INR10,000 per KWh; which means that subsidy for a
bus would come down from INR10m in FAME-I to INR5m in FAME-II.
1
A JV of four PSU power companies (NTPC, PFC, REC and POWERGRID) working towards the Indian government aim to achieve 30% e-mobility by 2030 under the
National Electric Mobility Mission Plan (NEMMP).
12 March 2019
3

Indraprastha Gas
To encourage local manufacturing, electric power trains would attract 15%
import duty and import duties on batteries would increase from 5% to 15%
in two years.
Buses need to ensure that 40% of the components are localized; while for
the other categories of vehicles 50% components need to be localized. It
remains to be seen how Indian manufacturers will comply with this,
considering that batteries and power train account for a substantial part of
the manufacturing cost of EVs — a space where Indian manufacturers have
no expertise.
Growth avenues abound
In the existing areas, IGL serves ~23,950 buses. Delhi Transport Corporation
(DTC) has ~3,900 buses, of which ~2,000 are always grounded due to lack of
maintenance.
DTC aims to procure 500 low-floor, 500 normal CNG buses and 1,000 electric
buses. Additionally, the UP State Road Transport Corporation is likely to add 250
CNG buses.
In Delhi, due to restriction on plying of diesel vehicles, IGL is witnessing
conversion of LCVs to CNG, payback is estimated at lower than a year. Our
thematic report (link) had highlighted how implementation of BS-VI would
increase the cost of diesel vehicles v/s petrol/CNG variants due to costly after-
treatment packages. We expect this to aid in the adoption of CNG vehicles.
Deloitte has conducted the valuation for Haryana City Gas Distribution Ltd
(HCGDL). Post the valuation, Gurugram would be completely under IGL’s
control. Currently, HCGDL sells 0.4mmsmcd of gas, of this, IGL supplies
0.25mmscmd, with IGL commanding very low margin on this volume. Within
three years of the takeover, we expect sales volume to rise to 1-1.5mmscmd.
IGL has already opened up five CNG stations in Rewari. It plans to operationalize
Karnal and Muzzafarnagar soon. Each area is expected to add 0.2mmscmd in the
next few years.
IGL has won three areas in the tenth round; these include (a) Kaithal (Haryana),
(b) Ajmer, Pali and Rajsamand (Rajasthan), and (c) Kanpur, Fatehpur and
Hamirpur (Uttar Pradesh). These areas would also add to the medium-to long-
term growth.
IGL aims to open ~50 CNG stations each year over the next few years, which
would improve convenience, availability and result in higher conversion of
vehicles.
Even IGL’s subsidiaries — MNGL and CUGL – have been showing steady growth
with 9MFY19 PAT at INR1,390m, +25% YoY.
12 March 2019
4

Indraprastha Gas
Exhibit 2: Contribution from JVs (PAT, INR m)
IGL's Share in CUGL and MNGL
210
170
205
170
170
235
190
270
180
180
60
Source: Company, MOFSL
Valuation and recommendation
Our research suggests that while EVs are likely to impact IGL in the longer run,
they are not a threat in the short-to medium-term.
In the short-to medium-term, there are numerous triggers for volume growth.
We expect volume growth of 12%/11% in FY20/21. We expect EBITDA/scm of
INR5.8/INR5.9 in FY20/21.
IGL is trading at 23.4x FY20 standalone EPS of INR12.7. Standalone EPS CAGR for
FY18-21 is expected at ~16%.
We roll over our valuation from Dec’20 to FY21. Valuing the stock at 24x
(unchanged) FY21 standalone EPS of INR14.6 and adding contribution from the
JVs, we reiterate our
Buy
recommendation on the stock.
Exhibit 3: Major Assumptions
Y-End: March (INR m)
Exchange Rate (Rs/US$)
Gas volumes
CNG volumes (mmscm)
PNG volumes (mmscm)
Total sales volume (mmscm)
EBITDA (INR/scm)
EPS
1,028
356
1,384
5.6
5.1
1,072
330
1,402
5.6
6.3
1,125
342
1,466
5.1
6.0
1,266
407
1,673
6.0
8.6
1,413
479
1,892
5.8
9.4
1,583
544
2,127
5.8
10.9
1,756
628
2,384
5.8
12.7
1,924
722
2,647
5.9
14.6
FY14
60.6
FY15
60.0
FY16
65.4
FY17
67.0
FY18
64.5
FY19E
70.4
FY20E
73.1
FY21E
74.2
Source: Company, MOFSL
Exhibit 4: Valuation of IGL
SOTP Valuation
SA FY21 EPS
Target P/E (x)
Standalone value
JV value (post 20% discount)
Fair value
14.6
24.0
351
39
389
Source: Company, MOFSL
12 March 2019
5

Indraprastha Gas
Story in charts
Exhibit 5: Sales growth to continue with FY18-21 CAGR for
PNG at ~15% and CNG at ~11%
PNG (mmscm)
CNG (mmscm)
25
28
Exhibit 6: IGL passes any cost increase to maintain its
margins through its CNG and PNG consumer
prices
Realization (INR/scm)
26
25
23
24
26
29
30
17
628 722
479 544
333 356 330 342 407
180 282
21
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 7: IGL has been able to maintain its profitability (PAT
in INR/scm)
PAT (INR/scm)
Exhibit 8: Price pass-through ensures stable EBITDA/scm for
IGL
EBITDA (INR/scm)
5.7
5.2
4.9
5.8
5.3
5.9
5.8
5.8
5.9
2.6 2.5 2.6 2.6
3.1 2.9
3.7 3.9
3.4 3.5 3.6
5.6
5.6
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 9: IGL’s return ratios (%)
28
28
ROE (%)
26
22
24
23
22
19
23
18
20
17
20
20
19
19
21
21
ROCE (%)
Exhibit 10: IGL 1-year forward P/E Chart
40.0
32.0
20
20
20
19
24.0
16.0
8.0
0.0
P/E (x)
Min (x)
Avg (x)
+1SD
Max (x)
-1SD
31.8
21.0
13.5
1.3
6.0
23.2
Source: Company, MOFSL
Source: Company, MOFSL
12 March 2019
6

Indraprastha Gas
Financials and Valuations
Income Statement
Y/E March
Net Sales
Change (%)
Raw Materials Cons
Employee Costs
Other Exp (incl Stock Adj)
EBITDA
% of Net Sales
Depreciation
Interest
Other Income
PBT
Tax
Rate (%)
PAT
Adj. PAT
Change (%)
Adj. PAT
2014
39,174
16.4
26,815
596
3,990
7,773
19.8
2,195
441
259
5,395
1,795
33.3
3,600
3,600
1.7
0.09
2014
1,400
16,232
17,632
3,212
963
21,807
18,953
2,624
0
1,173
371
2,196
2,514
493
197
5,712
1,001
-943
21,808
2015
36,699
-6.3
23,816
660
4,404
7,820
21.3
1,487
298
456
6,490
2,113
32.6
4,377
4,377
21.6
2016
36,858
0.4
22,761
784
5,566
7,747
21.0
1,563
99
299
6,385
2,194
34.4
4,191
4,191
-4.3
2017
38,148
3.5
20,837
917
6,756
9,638
25.3
1,671
12
652
8,607
2,896
33.6
5,711
6,048
44.3
2018
45,921
20.4
24,914
1,061
8,813
11,133
24.2
1,813
17
1,021
10,325
3,617
35.0
6,708
6,604
9.2
2019E
56,126
22.2
33,014
1,220
9,532
12,361
22.0
1,970
20
1,367
11,737
4,098
34.9
7,639
7,639
15.7
2020E
68,301
21.7
39,068
1,403
14,002
13,829
20.2
2,063
0
1,746
13,512
4,594
34.0
8,918
8,918
16.7
(INR M)
2021E
79,748
16.8
45,736
1,613
16,747
15,653
19.6
2,371
0
2,209
15,491
5,267
34.0
10,224
10,224
14.6
-916.03
(INR M)
2021E
1,400
53,958
55,358
0
2,253
57,611
25,916
10,860
0
11,477
918
3,933
23,759
149
1,110
20,300
210
9,358
57,611
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Loans
Deferred Tax
Capital Employed
Net Fixed Assets
Capital WIP
Pre operative Exp.
Investments
Curr. Assets, L & Adv.
Inventory
Debtors
Cash & Bank Balance
Loans & Advances
Other Current Assets
Current Liab. & Prov.
Liabilities
Provisions
Net Current Assets
Application of Funds
E: MOFSL Estimates
2015
1,400
19,581
20,981
1,453
1,272
23,706
19,558
2,541
0
2,909
409
2,352
2,315
489
163
5,866
1,163
-1,302
23,706
2016
1,400
23,764
25,164
0
1,650
26,815
20,192
2,669
0
2,592
576
2,511
4,538
80
655
6,847
151
1,362
26,815
2017
1,400
27,866
29,266
0
1,806
31,072
21,172
3,518
0
6,770
517
2,014
6,086
103
682
9,580
210
-388
31,072
2018
1,400
33,729
35,129
0
2,253
37,382
24,320
3,860
0
11,477
524
2,261
5,580
149
1,110
11,690
210
-2,275
37,382
2019E
1,400
39,730
41,130
0
2,253
43,383
24,350
6,860
0
11,477
646
2,768
10,520
149
1,110
14,287
210
696
43,383
2020E
1,400
46,191
47,591
0
2,253
49,844
24,287
9,860
0
11,477
786
3,368
16,403
149
1,110
17,386
210
4,220
49,844
12 March 2019
7

Indraprastha Gas
Financials and Valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout
Valuation (x)
P/E
Cash P/E
EV / EBITDA
EV / Sales
Price / Book Value
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
RoIC
Turnover Ratios
Debtors (No. of Days)
Asset Turnover (x)
Leverage Ratio
Net Debt / Equity (x)
Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Deferred tax
Direct Taxes Paid
(Inc)/Dec in Wkg. Capital
CF from Op. Activity
(Inc)/Dec in FA & CWIP
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Inv. Activity
Issue of Shares
Inc / (Dec) in Debt
Dividends Paid (incl.tax)
Others
CF from Fin. Activity
Inc / ( Dec) in Cash
Add: Opening Balance
Closing Balance
E: MOFSL Estimates
2014
5.1
8.3
25.2
1.1
21.4
57.9
36.0
26.9
5.3
11.8
0.4
22.1
19.0
24.9
20
1.9
0.0
2015
6.3
8.4
30.0
1.2
19.2
47.6
35.5
26.5
5.7
9.9
0.4
22.7
20.1
27.2
16
1.6
0.0
2016
6.0
8.2
35.9
1.2
20.0
49.7
36.2
26.3
5.5
8.3
0.4
18.2
16.8
24.6
15
1.5
-0.2
2017
8.6
11.0
41.8
1.7
19.7
34.5
27.0
21.0
5.3
7.1
0.6
21.0
19.8
33.3
17
1.3
-0.2
2018
9.4
12.0
50.2
2.0
21.2
31.6
24.8
18.2
4.4
5.9
0.7
20.8
19.6
38.9
21
1.3
-0.2
2019E
10.9
13.7
58.8
2.0
18.3
27.3
21.7
16.0
3.5
5.1
0.7
20.0
18.9
43.6
22
1.4
-0.3
2020E
12.7
15.7
68.0
3.0
23.5
23.4
19.0
13.9
2.8
4.4
1.0
20.1
19.1
58.3
22
1.5
-0.3
2021E
14.6
18.0
79.1
3.0
20.5
20.4
16.5
11.8
2.3
3.8
1.0
19.9
19.0
74.2
22
1.5
-0.4
(INR M)
2021E
15,491
2,371
0
-5,267
2,218
14,812
-5,000
9,812
0
-5,000
0
0
-2,457
0
-2,457
7,356
16,403
23,759
0
2014
5,395
2,195
119
-1,795
-601
5,314
-2,386
2,928
253
-2,133
0
-279
-901
3
-1,177
2,004
510
2,514
0
2015
6,490
1,487
309
-2,113
160
6,333
-2,010
4,323
-1,736
-3,746
0
-1,759
-983
-45
-2,787
-199
2,514
2,315
0
2016
6,385
1,563
378
-2,194
-440
5,691
-2,325
3,367
317
-2,008
0
-1,453
-983
975
-1,461
2,223
2,315
4,538
0
2017
8,607
1,671
156
-2,896
3,298
10,835
-3,499
7,336
-4,179
-7,678
0
0
-1,310
-299
-1,609
1,548
4,538
6,086
0
2018
10,325
1,813
447
-3,617
1,382
10,349
-5,304
5,045
-4,707
-10,011
0
0
-1,688
844
-844
-506
6,086
5,580
0
2019E
11,737
1,970
0
-4,098
1,969
11,578
-5,000
6,578
0
-5,000
0
0
-1,638
0
-1,638
4,940
5,580
10,520
0
2020E
13,512
2,063
0
-4,594
2,359
13,340
-5,000
8,340
0
-5,000
0
0
-2,457
0
-2,457
5,883
10,520
16,403
0
12 March 2019
8

Indraprastha Gas
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
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst
shall within following 30 days 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
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Indraprastha Gas
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
********************************************************************
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.
-
acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
-
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)
-
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.
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