Q4FY19 Results Update | Sector: Utilities
31 May 2019
Coal India
BSE SENSEX
39,832
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
S&P CNX
11,946
COAL IN
6,207
1558.6 / 22.3
303 / 212
-2/-7/-27
1604
29.0
CMP: INR253
TP: INR307(+22%)
Buy
Better grades and lower CoP drive outperformance
Valuations attractive; dividend yield of 7-8%; Maintain Buy
Financials & Valuations (INR b)
Y/E Mar
2019 2020E 2021E
Net Sales
995.5 1,023.6 1,065.7
EBITDA
300.5 303.5 325.0
PAT
174.6 180.1 192.0
EPS (INR)
28.3
29.2
31.2
Gr. (%)
47.9
3.1
6.6
BV/Sh (INR)
42.9
49.4
56.2
RoE (%)
66.0
59.2
55.4
RoCE (%)
85.7
68.0
62.8
P/E (x)
8.9
8.6
8.1
P/BV (x)
5.9
5.1
4.5
Estimate change
TP change
Rating change
Valuations attractive; Maintain Buy
Revenue grew 6% YoY to ~INR285b (our estimate: INR283b) in 4QFY19, led by
an increase of
(a)
~4% YoY in FSA realization (INR1,460/t v/s our estimate of
INR1,388),
(b)
30% in e-auction realization (INR2,754/t v/s our estimate of
INR2,619) and
(c)
~2% in volumes (163.1mt; volume mix was weak). FSA
realization was supported by better grade management and mine mix.
Cash cost (ex-OBR) increased 5% YoY to INR1,110/t due to a higher wage bill
(includes INR6.5b for prior-period pension provision and INR3-4b for bonus
provisions). Excluding the wage bill, cash cost was down ~4% YoY.
Adj. EBITDA (ex-OBR) increased 4% YoY to ~INR104b, driven by higher
realization and volumes, partly offset by the higher wage bill.
Adj. PAT was down 2% YoY to INR60.3b (our estimate: INR54.5b) owing to
lower other income and a stronger base. The beat to our estimate was driven
by lower-than-expected cash cost of production (CoP) and higher-than-
expected other income.
For FY19, adj. EBITDA (ex-OBR) grew 48% YoY to INR300.5b and adj. PAT was
up 47% YoY to INR174.6b led by the benefit of price hike, lower cash CoP and
volume growth, partly offset by the higher wage bill.
COAL has managed to keep its cost under control on the back of productivity
measures and shutting down of old mines – we expect this trend to continue.
Notably, cash CoP is down ~1% over the last two years. Excluding the wage
cost, the decline in cash CoP is even steeper.
We raise our adj. PAT estimate by ~1%/4% to INR180.1b/INR192b for FY20/21,
given higher FSA realization and lower CoP.
The stock trades attractively at ~4x FY20E EV/adj. EBITDA (v/s historical
average of 7x), P/E of ~8x (v/s average of ~14x) and offers a dividend yield of
~7-8%. We value the stock on 5x FY20E EV/EBITDA at INR307. Maintain
Buy.
var
(%)
1
32
47
(46)
48
15
25
10
10
Quarterly Performance (Consolidated) – INR m
Y/E March
Sales
Change (%)
Adj. EBITDA
As of % Sales
Depreciation
OBR
Interest
Other Income
PBT
Tax
Tax Rate (%)
Reported PAT
Adjusted PAT
Change (%)
1Q
191,617
4.0
34,151
17.8
6,699
-1,069
1,209
12,066
39,378
15,860
40.3
23,518
23,518
-23.3
FY18
FY19
FY18
FY19
FY19
2Q
3Q
4Q
1Q
2Q
3Q
4Q
4QE
181,483 216,433 269,092 240,708 218,840 250,458 285,463 858,624 995,469 283,573
11.9
6.0
16.1
25.6
20.6
15.7
6.1
9.8
15.9
5.4
12,888 55,405 100,646 65,435 51,194 79,655 104,199 203,089 300,483 78,731
7.1
25.6
37.4
27.2
23.4
31.8
36.5
23.7
30.2
27.8
7,146
7,511
9,308
7,452
8,069
8,611 10,372 30,664 34,504
7,049
578
9,226 24,847
8,835
8,023 11,777 22,077 33,583 50,712
4,583
1,007
974
1,127
1,103
8
620
1,019
4,318
2,750
1,880
6,107
8,409 20,002 12,824 16,084 11,633 18,196 46,583 58,737 12,305
10,264 46,102 11,521 60,869 51,178 70,281 88,927 107,264 271,255 77,525
6,576 16,052
-1,420 23,025 20,317 24,623 28,659 37,067 96,625 22,983
64.1
34.8
-1.7
37.8
39.7
35.0
32.2
34.6
35.6
29.6
3,689 30,050 12,942 37,843 30,861 45,657 60,268 70,198 174,630 54,542
3,689 30,050 61,686 37,843 30,861 45,657 60,268 118,942 174,630 54,542
-38.5
4.2
127.0
60.9
736.7
51.9
-2.3
28.3
46.8
-11.6
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.
Dhruv Muchhal – Research Analyst
(Dhruv.Muchhal@MotilalOswal.com); +91 22 6129 1549
Aniket Mittal – Research Analyst
(aniket.mittal@motilaloswal.com); 91 22 7198 5585
 Motilal Oswal Financial Services
Coal India
Other highlights
Volumes: FSA volumes increased 13% YoY to 142mt. This was at the cost of e-
auction volumes, which declined 4% YoY to 16.7mt (share of 11%, the lowest 4Q
ever).
FSA revenues include incentive income of ~INR8-9b v/s INR7b in FY18.
Employee cost increased ~15% YoY to INR107b due to prior-period pension
provision of INR6.5b and bonus provision of ~INR3-4b.
OBR adjustment was down 11% YoY to INR22.1b.
Other income was down 9% YoY to INR18.2b
Exhibit 1: Key operating parameters
Y/E March
1Q
Volume (m tons)
Production
Sales/Offtake
- FSA
- E-auction
- Washed Coal
- others
Realization (INR/t)
- FSA
- E-auction
- Washed Coal
- others
Per ton (INR)
Revenue
cash EBIDTA
PAT
Costs
118.8
137.9
107.1
27.3
2.7
0.8
1,201
1,586
3,649
3,333
1,335
248
171
1,087
FY18
2Q
113.0
131.3
104.6
23.3
2.9
0.6
1,224
1,614
2,582
3,050
1,331
98
28
1,233
3Q
152.0
151.7
121.9
26.4
2.8
0.7
1,182
1,998
2,975
3,179
1,365
365
198
1,000
4Q
183.5
159.6
126.4
29.3
3.1
0.8
1,403
2,112
2,923
3,373
1,573
631
387
943
1Q
136.9
153.5
130.4
19.4
2.6
0.7
1,298
2,399
2,427
2,943
1,460
426
247
1,034
FY19
2Q
119.6
137.3
116.8
17.7
2.4
0.7
1,282
2,592
2,602
3,182
1,485
373
225
1,113
FY18
3Q
156.0
154.1
135.8
14.7
2.9
0.7
1,334
2,847
2,866
3,425
1,517
517
296
1,001
4Q
194.4
163.3
142.4
16.7
3.3
1.0
1,460
2,754
2,879
3,559
1,636
638
369
997
567.4
580.5
460.0
106.2
11.5
2.9
1,257
1,839
3,023
3,249
1,407
350
205
1,058
606.9
608.2
525.4
68.5
11.2
3.1
1,348
2,632
2,713
3,306
1,527
494
287
1,033
FY19E
FY19
4Q
167.1
167.1
140.6
22.2
3.1
1.3
1,388
2,619
3,473
2,370
1,599
471
326
1,128
VAT.
(%)
YoY QoQ
(2.3)
1.3
(24.9)
7.8
(23.4)
5
5
(17)
50
2
35
13
(12)
6%
2%
13%
-43%
7%
18%
4%
30%
-2%
6%
4%
1%
-4%
6%
25%
6%
5%
14%
14%
34%
9%
-3%
0%
4%
8%
23%
25%
0%
Source: MOFSL, Company
Exhibit 2: Target Price calculations
Adjusted EBIDTA
Target EV/EBITDA (x)
Target EV
Net debt
Target Equity value
TP (INR/share)
FY14
210,472
FY15
211,621
FY16
215,423
FY17
150,634
FY18
203,089
FY19
300,483
FY20E
303,502
5.0
1,517,509
-376,235
1,893,744
307
Source: MOFSL
-559,930
-555,040
-471,951
-383,904
-410,544
-419,599
31 May 2019
2
 Motilal Oswal Financial Services
Coal India
Exhibit 3: Adjusted P&L
Revenue
Power FSA
Non Power FSA
Eauction/MoU
Sales (mt)
YoY (%)
Power FSA
Share (%)
Non Power FSA
Eauction/MoU
Revenue per ton
YoY (%)
Power FSA
Non Power FSA
Eauction/MoU
Cost of Mining (ex. OB)
CoP per ton
YoY (%)
Labor & social OH
Contract
R&M
Others
Adjusted EBIDTA
Power FSA
Share (%)
Non Power FSA
Share (%)
Eauction/MoU
Share (%)
EBITDA per ton
FY15
741,201
511,628
72,150
157,423
489
3.8
385
79
41
63
1,515
1.2
1,328
1,777
2,484
529,580
1,082
3.0
617
174
171
120
211,621
94,569
45
28,215
13
88,837
42
432
FY16
780,073
537,007
69,584
173,481
534
9.2
409
76
40
86
1,459
-3.6
1,314
1,758
2,013
564,649
1,056
-2.4
584
208
155
109
215,423
105,197
49
27,772
13
82,454
38
403
FY17
783,719
494,293
86,547
202,879
543
1.6
380
70
50
113
1,443
-1.1
1,301
1,738
1,793
633,085
1,166
10.4
626
227
152
161
150,634
51,209
34
28,491
19
70,933
47
277
FY18
858,624
529,901
63,029
265,695
580
6.8
424
73
36
120
1,480
2.6
1,250
1,752
2,214
655,535
1,130
-3.1
616
220
143
151
203,089
50,682
25
22,363
11
130,044
64
350
FY19
995,469
662,357
102,148
230,964
608
4.9
471
77
55
83
1,637
10.6
1,407
1,864
2,791
694,986
1,143
1.1
644
220
144
134
300,483
124,551
41
39,539
13
136,393
45
494
FY20E
1,023,584
699,565
102,150
221,868
645
6.1
499
77
55
91
1,587
-3.0
1,402
1,857
2,435
720,082
1,116
-2.3
599
236
143
138
303,502
142,615
47
40,748
13
120,139
40
471
FY21E
1,065,691
734,539
102,150
229,002
680
5.4
524
77
55
101
1,567
-1.2
1,402
1,857
2,263
740,733
1,089
-2.4
563
243
142
140
324,957
163,932
50
42,237
13
118,788
37
478
Source: MOFSL
Exhibit 4: Coal India P/E – x
P/E (x)
26
21
16
11
6
Avg (x)
Max (x)
Min (x)
+1SD
-1SD
21.8
17.2
13.9
10.5
7.8
8.1
Source: Bloomberg, Company
31 May 2019
3
 Motilal Oswal Financial Services
Coal India
Financials and Valuations
Income Statement
Y/E Mar
Net Sales
Change (%)
EBITDA
EBITDA Margin (%)
Depreciation
EBIT
2014
706,075
1.2
210,472
29.8
52,830
157,643
580
71,719
14
228,795
77,679
34.0
0
151,116
159,881
-9.5
2014
63,164
360,881
424,045
1,715
-19,717
406,678
414,795
266,951
147,844
43,158
0
831,704
55,681
82,410
561,644
131,969
616,028
616,028
0
215,676
406,678
2015
741,201
5.0
211,621
28.6
61,465
150,156
73
65,706
50
215,839
78,573
36.4
0
137,266
137,266
-14.1
2015
63,164
340,367
403,531
4,019
-19,591
388,617
448,080
286,929
161,150
51,594
0
873,074
61,838
85,219
559,060
166,958
697,201
697,201
0
175,873
388,617
2016
780,073
5.2
211,148
27.1
56,373
154,775
3,862
59,406
0
210,319
71,719
34.1
0
138,601
138,601
1.0
2016
63,164
285,168
348,332
11,921
-20,445
340,855
234,137
26,824
207,314
59,044
73
841,406
75,692
114,476
483,872
167,367
766,982
766,982
0
74,425
340,855
2017
783,719
0.5
150,634
19.2
55,823
94,811
4,117
55,156
0
145,850
51,660
35.4
0
94,190
94,190
-32.0
2017
62,074
183,194
245,268
30,078
-27,328
251,477
276,883
55,984
220,900
103,078
106
809,377
89,453
107,359
413,982
198,584
881,984
881,984
0
-72,607
251,477
2018
858,624
9.6
203,089
23.7
64,246
138,843
4,318
46,583
-73,844
107,264
37,067
34.6
0
70,198
118,942
26.3
2018
62,074
136,392
198,466
15,309
-53,551
163,849
325,733
84,805
240,928
137,710
3,443
839,286
64,439
86,892
425,854
262,102
1,057,518
1,057,518
0
-218,232
163,849
2019
995,469
15.9
300,483
30.2
85,216
215,268
2,750
58,737
0
271,255
96,625
35.6
0
174,630
174,630
46.8
2019
61,627
202,912
264,539
22,027
-42,692
247,943
405,051
119,308
285,742
136,984
4,622
857,149
55,839
54,986
441,626
304,697
1,036,554
1,036,554
0
-179,405
247,943
2020E
1,023,584
2.8
303,502
29.7
93,664
209,838
2,778
50,204
0
257,264
77,179
30.0
0
180,085
180,085
3.1
2020E
61,627
242,531
304,158
22,027
-42,692
287,562
485,051
156,212
328,839
136,984
4,622
893,655
78,521
112,174
398,262
304,697
1,076,538
1,076,538
0
-182,883
287,562
(INR Million)
2021E
1,065,691
4.1
324,957
30.5
98,104
226,854
2,806
50,204
0
274,252
82,276
30.0
0
191,977
191,977
6.6
2021E
61,627
284,765
346,393
22,027
-42,692
329,796
565,051
193,115
371,935
136,984
4,622
956,259
81,752
116,788
453,022
304,697
1,140,004
1,140,004
0
-183,745
329,796
Interest
Other Income
Extraordinary items
PBT
Tax
Tax Rate (%)
Min. Int. & Assoc. Share
Reported PAT
Adjusted PAT
Change (%)
Balance Sheet
Y/E Mar
Share Capital
Reserves
Net Worth
Debt
Deferred Tax
Total Capital Employed
Gross Fixed Assets
Less: Acc Depreciation
Net Fixed Assets
Capital WIP
Investments
Current Assets
Inventory
Debtors
Cash & Bank
Loans & Adv, Others
Curr Liabs & Provns
Curr. Liabilities
Provisions
Net Current Assets
Total Assets
(INR Million)
31 May 2019
4
 Motilal Oswal Financial Services
Coal India
Financials and Valuations
Ratios
Y/E Mar
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation(x)
P/E
Price / Book Value
EV/EBITDA
Dividend Yield (%)
EV /ton of Reserves
Profitability Ratios (%)
RoE
RoCE
RoIC
Turnover Ratios (%)
Asset Turnover (x)
Debtors (No. of Days)
Inventory (No. of Days)
Creditors (No. of Days)
Leverage Ratios (%)
Net Debt/Equity (x)
2014
25.3
33.7
67.1
29.0
129.5
11.4
4.3
6.0
10.1
57.9
35.6
34.4
-51.3
1.7
43
29
4
-1.3
2015
21.7
31.5
63.9
20.7
112.9
16.7
5.7
8.2
5.7
79.7
34.0
34.5
-45.5
1.9
42
30
5
-1.4
2016
22.6
31.5
55.1
27.4
145.5
12.9
5.3
6.4
9.4
63.1
41.0
39.9
-49.9
2.3
54
35
15
-1.4
2017
15.2
24.2
39.5
19.9
160.3
19.3
7.4
9.5
6.8
65.9
38.4
32.7
-26.2
3.1
50
42
18
-1.6
2018
19.2
29.5
32.0
16.5
103.3
14.8
8.9
6.6
5.8
62.1
35.4
58.4
-27.2
5.2
37
27
19
-2.1
2019
28.3
42.2
42.9
13.1
55.5
8.9
5.9
3.8
5.2
52.1
66.0
85.7
-37.5
4.0
40
28
18
-1.6
2020E
29.2
44.4
49.4
19.0
78.0
8.6
5.1
3.9
7.5
54.1
59.2
68.0
-50.0
3.6
40
28
18
-1.2
2021E
31.2
47.1
56.2
20.2
78.0
8.1
4.5
3.5
8.0
51.6
55.4
62.8
-61.4
3.2
40
28
18
-1.2
Cash Flow Statement
Y/E Mar
Adjusted EBITDA
Non cash opr. exp (inc)
(Inc)/Dec in Wkg. Cap.
Tax Paid
Other operating activities
CF from Op. Activity
(Inc)/Dec in FA & CWIP
Free cash flows
(Pur)/Sale of Invt
Others
CF from Inv. Activity
Inc/(Dec) in Net Worth
Inc / (Dec) in Debt
Interest Paid
Divd Paid (incl Tax) & Others
CF from Fin. Activity
Inc/(Dec) in Cash
Add: Opening Balance
Closing Balance
2014
210,472
20,597
2,442
-88,264
0
145,247
-41,164
104,083
-13,799
78,554
23,590
0
-12,634
-580
-240,289
-253,503
-84,665
646,310
561,644
2015
211,621
21,428
6,487
-95,721
0
143,815
-49,014
94,801
9,615
43,256
3,857
0
1,935
-73
-152,119
-150,257
-2,585
561,644
559,060
2016
211,148
25,840
-26,697
-78,754
0
131,538
-57,857
73,681
-1
47,005
-10,852
0
9,902
-207
-205,569
-195,874
-75,188
559,060
483,872
2017
150,634
37,046
60,216
-89,427
0
158,469
-86,761
71,707
-50
34,433
-52,379
-45,531
18,169
-306
-148,311
-175,980
-69,890
483,872
413,982
2018
203,089
-54,587
138,450
-74,329
0
212,623
-85,293
127,330
-3,332
23,747
-64,878
0
-14,778
-370
-120,725
-135,873
11,872
413,982
425,854
2019
300,483
-93,514
63,491
-96,625
0
173,836
-78,591
95,245
-1,180
26,296
-53,474
-11,678
6,718
-2,750
-96,878
-104,589
15,773
425,854
441,626
2020E
303,502
25,031
-96,646
-77,179
0
154,708
-80,000
74,708
0
25,173
-54,827
0
0
-2,778
-140,466
-143,244
-43,364
441,626
398,262
(INR Million)
2021E
324,957
29,395
-5,579
-82,276
0
266,498
-80,000
186,498
0
20,809
-59,191
0
0
-2,806
-149,742
-152,547
54,760
398,262
453,022
31 May 2019
5
 Motilal Oswal Financial Services
Coal India
NOTES
31 May 2019
6
 Motilal Oswal Financial Services
Coal India
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 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 Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, 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. MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are
available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a
registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and
National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National
Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance
Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate entities of Motilal Oswal Financial Services Limited are
available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL 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 MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOFSL 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 MOFSL 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 Financial Services 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 MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated
from MOFSL 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 MOFSL & 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 Financial Services Limited (MOFSL) 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 MOFSL 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 MOFSL , 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., MOFSL 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”,
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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
31 May 2019
7
 Motilal Oswal Financial Services
Coal India
********************************************************************************************************************************
The associates of MOFSL 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 MOFSL 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 MOFSL 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 MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL 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 MOFSL 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 MOFSL. 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. MOFSL 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. MOFSL, 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 MOFSL. 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 MOFSL 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 MOFSL or any of its
affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such
misuse and further agrees to hold MOFSL 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 71934200/ 022-71934263;
Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth
Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is
a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt.
Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL.
Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no
assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance
Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* 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.
31 May 2019
8