Sector Update | 1 April 2019
Automobiles
Diverging trends in Mar’19 wholesales
MSIL exceeds estimates, but RE volumes fall short
Mar’19 auto wholesales were a mixed bag. PV volumes remained weak (-0.7% YoY) for yet
another month, although some names benefitted from new product launches. CV volumes
declined 0.5% YoY, with growth in LCVs (+2.1% YoY) more than offset by a decline (-2.5%
YoY) in M&HCV volumes. Tractor volume growth decelerated to 21.5% YoY (+20.5% MoM)
off a high base; muted farm sentiment in key markets too acted as a major speed-breaker.
The month of March
was slow in the
domestic market due to
postponement of
festive season to April
and lower Rabi sowing
than expected.
Rajesh Jejurikar,
President, Farm
Equipment Sector,
M&M
Key highlights from Mar’19 wholesales data (including exports):
PVs – broad-based volume recovery still elusive:
PV volumes remained weak for
the ninth consecutive month in Mar’19. Notably, there are no signs of a broad-
based recovery yet from the impact of higher fuel prices and an increase in
financing/insurance cost, etc. While MSIL’s dispatches declined 1.6% YoY, the
new product launch in UVs led to 9% YoY growth in MM’s (PV) wholesales. For
FY19, PV sales were up 5.7%.
CVs – AL in line, TTMT exceeds estimate:
CV wholesales were mixed in Mar’19 –
AL’s volumes were in line, while TTMT exceeded our estimate. M&HCV volumes
declined 2.5% YoY, while LCV volumes increased 2% YoY. TTMT attributed the
muted sales trend to subdued market sentiment, high interest rates, the lagged
effect of the implementation of the revised axle load norms, the downtrend in
the IIP growth index, and the high base. However, for FY19, both M&HCV/LCV
segments grew in the range of 14-19%.
Tractors – ESC continues outperforming MM:
Tractor volumes declined 21.5%
YoY (+20.5% MoM), led by a high base and muted farm sentiment in key
markets. ESC’s volumes grew by 1% YoY (+64% MoM), continuing to outpace
MM’s tractor volume growth (-30.9% YoY; +3.7% MoM). For FY19, tractor sales
grew 6.8%.
Positive surprise (Var %)
Maruti Suzuki (+11%)
Hero MotoCorp (+5%)
Tata Motors (+11%)
TVS Motors (+7.3%)
In-line (Var %)
Ashok Leyland (+0.6%)
M&M (-3.5%)
Escorts (-0.7%)
VECV (+0.5%)
Negative surprise (Var %)
Royal Enfield (-10%)
Valuation and view:
We prefer PVs over CVs/2Ws as the segment is better placed to
face BS-6 challenge and a stable competitive environment. Our top picks in autos are
MSIL and MSS among large caps, and ENDU and EXID among midcaps.
Exhibit 1: Snapshot of volumes for Mar’19 (incl. exports)
YoY (%)
MoM (%)
Feb-19
chg
chg
2W
1,092,122
1,210,908
-9.8
1,130,381
-3.4
Cars
122,588
135,361
-9.4
120,521
1.7
Uvs + MPVs
105,073
93,938
11.9
93,088
12.9
Total PVs
227,661
229,299
-0.7
213,609
6.6
M&HCVs
49,495
50,789
-2.5
37,687
31.3
LCVs
41,319
40,454
2.1
32,563
26.9
Total CVs
90,814
91,243
-0.5
70,250
29.3
Tractors
31,593
40,267
-21.5
26,218
20.5
* 2W: HMCL, TVSL, EIM; PVs: MSIL, MM & TTMT; CVs: TTMT, AL, MM, EIM; Tractors: MM, ESC
Company Sales
Mar-19
Mar-18
FY19
14,426,807
1,529,352
1,041,874
2,571,226
441,759
389,454
831,213
426,848
FY18
13,136,968
1,497,973
934,552
2,432,525
388,011
328,488
716,499
399,740
(%) chg
9.8
2.1
11.5
5.7
13.9
18.6
16.0
6.8
Jinesh Gandhi – Research Analyst
(Jinesh@MotilalOswal.com); +91 22 6129 1524
Research Analyst: Deep Shah
(Deep.S@MotilalOswal.com); +91 22 6129 1533
Suneeta Kamath
(Suneeta.Kamath@MotilalOswal.com); +91 22 6129 1534
Investors are advised to refer through important disclosures made at the last page of the Research Report.
1 April 2019
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
1

Automobiles
MARUTI SUZUKI: Above estimate at 158k units; domestic sales down 0.7% YoY, exports down 12.9% YoY
MSIL’s volumes were down 1.6% YoY to 158.1k (our estimate: 142.1k) in Mar’19 due to a decline in both domestic
(-0.7% YoY to 147.6k units v/s our estimate of 132.8k units) and export (-12.9% YoY to 10.5k units v/s our estimate
of 9.3k units) volumes.
UV volumes grew 12.3% YoY to 25.6k units (our estimate: 20.6k units).
Dispatches of Ciaz declined 15% YoY to 3.7k units (our estimate: 2.3k units).
Sales of new WagonR are reported under the compact segment, while those of old WagonR are reported under
the mini segment. Hence, sales of both the segments are not comparable YoY.
MSIL’s FY19 domestic sales grew 6% to 1.75m units.
Snapshot of volumes for March-19
YoY
Company Sales
Maruti Suzuki
LCVs
Vans
Mini Segment
Compact (incl Dzire Tour)
Mid Size - CIAZ
UVs
Total Domestic
Export
Mar-19
158,076
2,582
16,438
16,826
82,532
3,672
25,563
147,613
10,463
Mar-18
160,598
1,412
13,689
37,511
68,885
4,321
22,764
148,582
12,016
YoY (%)
chg
-1.6
82.9
20.1
-55.1
19.8
-15.0
12.3
-0.7
-12.9
MoM
MoM (%)
Feb-19
chg
148,682
6.3
2,188
18.0
14,565
12.9
24,751
-32.0
72,678
13.6
3,084
19.1
21,834
17.1
139,100
6.1
9,582
9.2
FY19
1,862,449
23,874
178,606
379,050
861,804
46,169
264,197
1,753,700
108,749
FY18
1,779,574
10,033
155,137
427,183
748,475
58,913
253,759
1,653,500
126,074
(%) chg
4.7
138.0
15.1
-11.3
15.1
-21.6
4.1
6.1
-13.7
FY19
Monthly
Run rate
169,314
2,170
16,237
34,459
78,346
4,197
24,018
159,427
9,886
M&M: Dispatches in line at 82.6k units; Auto sales up 7.3% YoY, Tractor sales down 30.9% YoY
MM’s automotive segment volumes grew 7.3% YoY to 62.9k units (our estimate: 59k units).
UV volumes increased 9% YoY (+10.7% MoM) to 54k (our estimate: 50k units). Passenger UV sales grew 4.9% YoY,
while pick-ups/SCV sales declined 2.5% YoY. 3W volumes grew 5.2% YoY to 6.9k units.
Tractor volumes declined significantly by 31% YoY (+3.7% MoM) to 19.7k units (our estimate: 26.6k units).
MM’s total volumes grew 8.3% to 935.8k units in FY19.
Snapshot of volumes for March-19
YoY
Company Sales
Mahindra & Mahindra
UV (incl. pick-ups)
LCV & M&HCV
Three-Wheelers
Tractors
Mar-19
82,640
54,057
1,952
6,943
19,688
Mar-18
87,129
49,608
2,442
6,602
28,477
YoY (%)
chg
-5.2
9.0
-20.1
5.2
-30.9
MoM
MoM (%)
Feb-19
chg
74,983
10.2
48,846
10.7
1,507
29.5
5,652
22.8
18,978
3.7
FY19
935,811
519,427
19,249
66,699
330,436
FY18
863,693
472,517
17,228
54,625
319,323
FY19
Monthly Run
(%) chg
rate
8.3
85,074
9.9
47,221
11.7
1,750
22.1
6,064
3.5
30,040
ESCORTS: Volumes in line at 11.9k units (+1% YoY)
Escorts’ volumes grew 1% YoY (+64.4% MoM); domestic sales declined 1.1% YoY to 11.4k units.
Export volumes were at 474 units, up 103.4% YoY.
FY19 volumes grew 20% to 96.4k units.
Snapshot of volumes for March-19
YoY
Company Sales
Escorts
Mar-19
11,905
Mar-18
11,790
YoY (%)
chg
1.0
MoM
MoM (%)
Feb-19
chg
7,240
64.4
FY19
Monthly Run
(%) chg
rate
19.9
8,765
FY19
96,412
FY18
80,417
1 April 2019
2

Automobiles
TATA MOTORS: Above estimate at 74.2k units; CV volumes up 1% YoY
TTMT’s CV volumes grew 1% YoY (+34% MoM), led by a 1.9% increase in M&HCV volumes to 24.8k (our estimate:
20.1k units) and a 0.3% rise in LCV volumes to 31.3k (our estimate: 29.6k).
UV volumes grew 14.4% YoY to 9k, driven by continued momentum in Nexon and the launch of Harrier. Car
volumes declined 28% YoY (-13% MoM) to 9.1k units (our estimate: 16.6k units).
TTMT’s exports declined 11% YoY to 6k units due to new regulations, political uncertainty in Sri Lanka and a slump
in Middle-East.
Snapshot of volumes for March-19
YoY
Company Sales
Tata Motors
HCV's
LCV's
CV's
Cars
UV's
Mar-19
74,179
24,785
31,284
56,069
9,095
9,015
Mar-18
76,030
24,321
31,204
55,525
12,628
7,877
YoY (%) chg
-2.4
1.9
0.3
1.0
-28.0
14.4
MoM
MoM (%)
Feb-19
chg
60,151
23.3
17,968
37.9
23,914
30.8
41,882
33.9
10,426
-12.8
7,843
14.9
FY19
Monthly Run
(%) chg
rate
14.4
66,452
18.5
20,539
13.2
26,529
15.4
47,068
-2.7
12,144
49.9
7,240
FY19
730,977
225,930
291,823
517,753
133,580
79,644
FY18
638,936
190,683
257,786
448,469
137,328
53,139
AL: Dispatches in line (-4.1% YoY); HCV sales down 6% YoY, LCV sales up 1.9% YoY
Wholesales came in line at 21.5k units (-4.1% YoY, +18% MoM).
HCV dispatches declined 6% YoY (+20.6% MoM) to 16k units (in-line), while LCV dispatches increased 1.9% YoY to
5.5k units (in-line).
AL’s FY19 sales grew 12.9% to 197.4k units.
Snapshot of volumes for March-19
YoY
Company Sales
Ashok Leyland
CV (ex LCV)
LCV
Mar-19
21,535
16,034
5,501
Mar-18
22,453
17,057
5,396
YoY (%)
chg
-4.1
-6.0
1.9
MoM
MoM (%)
Feb-19
chg
18,245
18.0
13,291
20.6
4,954
11.0
FY19
197,369
142,861
54,508
FY18
174,836
131,395
43,441
FY19
Monthly Run
(%) chg
rate
12.9
17,943
8.7
12,987
25
4,955
EICHER MOTORS: RE wholesales of 60.8k units significantly below estimate of 67.6k units
Royal Enfield volumes declined 20.1% YoY (-2.9% MoM) to 60.8k units (our estimate: 67.6k).
Dispatches in the domestic market declined 21.3% YoY to 58.4k, while exports increased 27.6% YoY to 2.4k units.
RE’s FY19 sales grew 0.7% to 826k units.
VECV volumes declined 7.8% YoY to 8.7k (in-line), with domestic LMD and HD volumes down YoY by 6.8% and
26.3%, respectively; buses volumes grew 13.6% YoY.
Snapshot of volumes for March-19
YOY
Eicher Motors
Royal Enfield
VECV
Domestic LMD
Domestic HD
Domestic Buses
VTI
Total Domestic
Exports
Mar-19
60,831
8,676
4,145
1,533
1,651
131
7,460
1,216
Mar-18
76,087
9,411
4,447
2,080
1,453
166
8,146
1,265
YoY (%) chg
-20.1
-7.8
-6.8
-26.3
13.6
-21.1
-8.4
-3.9
MoM
MoM (%)
Feb-19
chg
62,630
-2.9
6,428
35.0
3,258
27.2
1,134
35.2
945
74.7
160
-18.1
5,497
35.7
931
30.6
FY19
Monthly Run
(%) chg
rate
0.7
75,100
10.7
6,633
14.2
3,428
7.3
1,207
2.4
977
16.2
111
10.6
5,723
11.2
910
FY19
826,098
72,968
37,705
13,281
10,746
1,226
62,958
10,010
FY18
820,492
65,933
33,010
12,373
10,494
1,055
56,932
9,001
1 April 2019
3

Automobiles
TVS Motors: Dispatches down 0.4% YoY (+8.7% MoM) to 325.3k units (our estimate: 303.4k)
Motorcycle volumes grew 5% YoY (+15.1% MoM) to 141.1k units (our estimate: 124.7k units).
Scooter dispatches declined 2.5% YoY (+13.3% MoM) to 98.5k units (our estimate: 89.4k units).
Mopeds sales declined 11.3% YoY (-6.3% MoM) to 71.3k units (our estimate: 75.8k units).
Total 3W sales grew 32.6% YoY (+5.1% MoM) to 14.4k units (our estimate: 13.3k units).
Total domestic volumes declined 6.8% YoY (+6.9% MoM) to 248.9k units (our estimate: 237.7k units).
Total export volumes grew 28.1% YoY (+14.8% MoM) to 76.4k units (our estimate: 65.6k units).
Snapshot of volumes for March-19
YoY
Company Sales
TVS Motor
Motorcycles
Scooters
Mopeds
Three-Wheelers
Total Domestic
Total Exports
Mar-19
325,345
141,086
98,477
71,338
14,444
248,940
76,405
Mar-18
326,659
134,412
100,972
80,381
10,894
267,031
59,628
YoY (%)
chg
-0.4
5.0
-2.5
-11.3
32.6
-6.8
28.1
MoM
MoM (%)
Feb-19
chg
299,353
8.7
122,551
15.1
86,935
13.3
76,125
-6.3
13,742
5.1
232,783
6.9
66,570
14.8
FY19
Monthly Run
(%) chg
rate
12.9
355,797
15.0
141,754
14.6
118,283
2.3
81,538
58.5
14,221
9.0
286,548
32.7
69,249
FY19
3,913,763
1,559,297
1,301,115
896,917
156,434
3,152,025
761,738
FY18
3,466,110
1,355,576
1,134,918
876,932
98,684
2,891,895
574,215
Hero MotoCorp: Dispatches of 581.3k units above estimate of 553.5k units
Wholesales came in above estimate at 581.3k units (-20.4% YoY, -5.8% MoM).
For FY19, HMCL’s sales grew 3% to 7.8m units.
Snapshot of volumes for March-19
YoY
Company Sales
Hero MotoCorp
Mar-19
581,279
Mar-18
730,473
YoY (%)
chg
-20.4
MoM
MoM (%)
Feb-19
chg
617,215
-5.8
FY19
7,819,151
FY18
7,591,569
FY19
Monthly Run
(%) chg
rate
3.0
710,832
Exhibit 2: Comparative valuations
CMP
Auto OEM's
Bajaj Auto
Hero MotoCorp
TVS Motor
M&M
Maruti Suzuki
Tata Motors
Ashok Leyland
Eicher Motors
Escorts
Auto Ancillaries
Bharat Forge
Exide Industries
Amara Raja Batteries
BOSCH
Endurance Tech
Motherson Sumi
CEAT
(INR)*
2,918
2,559
480
661
6,843
187
91
20,195
776
512
215
723
18,067
1,150
154
1,137
Rating
Buy
Neutral
Neutral
Buy
Buy
Neutral
Buy
Buy
Neutral
Buy
Buy
Buy
Neutral
Buy
Buy
Buy
TP
(INR)
3,075
2,871
557
833
7,922
152
109
23,373
754
568
274
861
20,147
1,476
204
1,370
P/E (x)
FY19E
18.1
15.2
32.7
16.1
29.0
-30.9
13.0
24.2
14.2
21.5
24.6
25.3
33.2
33.1
29.2
17.6
FY20E
16.3
14.4
22.7
14.1
24.2
11.9
12.5
20.7
12.8
18.7
20.2
20.1
28.6
25.7
20.4
13.8
EV/EBITDA (x)
FY19E
13.0
8.8
16.3
12.3
15.9
4.4
8.4
19.0
11.2
12.6
13.1
12.7
22.6
15.0
9.6
9.2
FY20E
10.9
8.2
12.1
10.3
13.5
3.5
6.5
16.9
9.8
10.9
10.9
10.1
19.2
12.0
6.8
7.9
RoE (%)
FY19E
23.0
27.6
22.4
14.3
15.8
-2.6
26.4
28.9
20.0
21.9
12.5
15.6
15.9
20.7
16.8
9.6
FY20E
22.9
27.3
27.1
13.9
17.0
7.9
24.0
27.3
18.8
21.5
13.9
17.2
17.9
22.8
21.0
11.2
Div Yield (%)
FY19E
2.1
4.1
0.8
1.5
1.5
0.2
2.8
0.6
0.6
1.0
1.2
0.6
1.0
0.5
0.9
0.6
FY20E
2.4
4.5
1.0
1.5
1.8
0.2
2.9
0.6
0.6
1.2
1.5
0.8
1.2
1.0
1.3
0.8
EPS CAGR
(%)
FY18-20E
8.7
-2.1
23.1
7.0
3.0
-17.2
10.3
10.5
23.7
21.8
14.1
14.3
16.0
24.1
18.1
13.6
1 April 2019
4

Automobiles
NOTES
1 April 2019
5

Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
> - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
Automobiles
* In case the recommendation given by the Research Analyst 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 BSE 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/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 actual/beneficial ownership of 1% or more securities in the subject
company at the end of the month immediately preceding the date of publication of the Research Report.
MOSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short
position in, act as principal in, and buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in
the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and other related information and
opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOSL even though
there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
Research Analyst may have served as director/officer, etc. in the subject company in the last 12 month period. MOSL and/or its associates may
have received any compensation from the subject company in the past 12 months.
In the last 12 months period ending on the last day of the month immediately preceding the date of publication of this research report, MOSL or any of its associates may have:
a)
managed or co-managed public offering of securities from subject company of this research report,
b)
received compensation for investment banking or merchant banking or brokerage services from subject company of this research report,
c)
received compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company of this research report.
d)
Subject Company may have been a client of MOSL or its associates during twelve months preceding the date of distribution of the research report.
MOSL and it’s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report. To enhance transparency, MOSL has incorporated a Disclosure of Interest Statement in
this document. This should, however, not be treated as endorsement of the views expressed in the report. MOSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result,
the recipients of this report should be aware that MOSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant banking, investment banking or
brokerage service transactions.
Terms & Conditions:
This report has been prepared by MOSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and may not be altered in any way, transmitted to, copied or distributed, in part
or in whole, to any other person or to the media or reproduced in any form, without prior written consent of MOSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report
is not recommendatory in nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied,
is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to
buy or sell or subscribe for securities or other financial instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOSL will not treat recipients as customers by
virtue of their receiving this report.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the
specific recommendations and views expressed by research analyst(s) in this report.
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.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced
in any form, without prior written consent. This report and information herein is solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in
this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of
independent judgment by any recipient. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document
(including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be suitable for all investors. Certain transactions -including
those involving futures, options, another derivative products as well as non-investment grade securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy,
completeness or fairness of the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as endorsement of the
views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make modifications and alternations to this statement as may be required from time to time without any prior approval.
MOSL, its associates, their directors and the employees may from time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to perform
investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a separate, distinct and independent of each other. The recipient should take this
into account before interpreting the document. This report has been prepared on the basis of information that is already available in publicly accessible media or developed through analysis of MOSL. The views expressed are those of the analyst, and
the Company may or may not subscribe to all the views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or
published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such
distribution, publication, availability or use would be contrary to law, regulation or which would subject MOSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all
jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. Neither the Firm, not its directors, employees, agents or representatives shall
be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information.
The person accessing this information specifically agrees
to exempt MOSL or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOSL
or any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022-3980 4263; www.motilaloswal.com. Correspondence Address: Palm Spring Centre, 2nd Floor, Palm
Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 3080 1000. Compliance Officer: Neeraj Agarwal, Email Id:
na@motilaloswal.com,
Contact No.:022-30801085.
Registration details of group entities: MOSL: SEBI Registration: INZ000158836 (BSE/NSE/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.
Disclosure of Interest Statement
Analyst ownership of the stock
Companies where there is interest
No
1 April 2019
6