Sector Update | 3 June 2019
Cement
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Price hikes across regions
Is consolidation finally reflecting in pricing power or is it transient?
Refer our report dated
15 March 2019
Across India, cement players hiked prices by INR20/bag in Apr’19; followed by another
hike of INR10-30/bag in May’19, which was partly rolled back towards end-May.
Pan-India, current prices are INR25/bag higher than the average prices witnessed in
4QFY19. Prices have increased (v/s 4QFY19 average prices) by INR40/bag in the North,
INR6/bag in the South, INR37/bag in Central India, INR23/bag in the East, and by
INR26/bag in the West. Further, we have observed that the price hikes are more
prominent in markets (the North and Central India) that have seen substantial
consolidation in the last few years.
We are currently factoring in INR7-8/bag increase in realization for FY20/21. Should
the current price hikes sustain, it will lead to an earnings upgrade of over 25% for
large-cap companies and over 50% upgrade for mid-cap companies (given higher
sensitivity to realization). Also, valuations seem almost in line with LPA for large-cap
companies and at substantial discount for others.
On the cost front, prices of imported coal have reduced by 20% from 4QFY19 average.
Diesel prices have increased by 1% over 4QFY19 average following the rally in crude
prices. However, crude price decline in the last week of May should bode well for the
cost curve of companies, in case prices sustain.
Post industry consolidation of the last few years, we believe the cement industry is
now on the verge of growth. This in turn should lead to higher prices, enabling
significant upgrade in our earnings estimate. Also, demand uptick in 2HFY20 will be
critical for sustainability of prices and for upgrades to take place.
Current all-India cement prices
are higher by INR25/bag as
compared to 4QFY19 average
prices.
Substantial price hikes across regions since Mar’19...
While prices in the East and the West increased by INR14-18/bag in Apr’19,
prices in the North and Central India rose by INR30-35/bag and were sustainable
to a great extent. Dealers across regions indicated that April and May witnessed
slowdown in demand due to elections.
Prices in the South increased 4% QoQ in 4QFY19 led by significant price hikes in
Feb’19 and partial rollback in Mar’19. In Apr’19, frequent attempts at hiking
prices failed in the South, with prices increasing a moderate 1% MoM and
companies even offering discounts.
Additionally, May’19 also saw significant price hikes — of about INR10/bag in
the North and INR4-6/bag in the East, West and Central India. But, the South
witnessed a price decline of INR3/bag in May’19.
Effectively, all-India prices have increased by INR25/bag from 4QFY19 levels,
with an increase of INR40/bag in the North, INR6/bag in the South, INR37/bag in
Central India, INR23/bag in the East and INR26/bag in the West.
…with maximum hike in markets that saw substantial consolidation
Maximum level of consolidation was witnessed in Central India – currently share
of the top-5 players has increased to 84% from 72% in FY15. Much of this can be
attributed to UTCEM’s acquisition of JPA and Century Textiles’ cement assets.
The North has also seen considerable consolidation with the top-5 players
accounting for 74% (66% in FY15) market share currently. Consolidation in the
Source: MOFSL, Company
Pradnya Ganar – Research analyst
(Pradnya.Ganar@motilaloswal.com); +91 22 7193 4322
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors
8 August 2016
are advised to refer through important disclosures made at the last page of the Research Report.
1

Cement
Central India has witnessed
highest consolidation, followed
by the North and the East
Eastern region has also been healthy as current market share of the top-5
players in the region stands at 59% (54% in FY15).
The rapid capacity expansion in the South has not resulted in consolidation in
the region. The western region has not witnessed much consolidation in the past
four years, despite UTCEM’s acquisition of JPA and CTIL’s assets.
With UTCEM’s completion of three significant acquisitions (JPA, CTIL and Binani),
we believe the industry is moving towards consolidation, which should make a
strong case for pricing.
Price hikes imminent to earn required cost of capital
In
order to achieve pre-tax ROCE of 12% with replacement cost of INR8,500/t for
greenfield and INR4,300 for brownfield, the required EBITDA/t should be
~INR1,806/t and INR1,084/t, respectively.
Source: MOFSL, Company
Also, with UTCEM acquiring Binani’s assets for ~INR80b and considering it ramps
up capacity by 5mt at capex of USD50/t, the required EBITDA/t comes in at
~INR1,556/t, making a strong case for the industry to take a price hike.
Assuming current price hikes sustain till end-FY20, valuations appear attractive
Realizations of our cement universe (aggregate) remained flat in FY17 and
increased by INR160/t YoY in FY18; while for FY19, it increased by INR80/t. We
have built in realization growth of INR140-150/t for FY20/FY21.
However, assuming the recent price hikes in Apr-May 2019 are sustainable till
FY20, we analysed its effect on profitability and valuations of our coverage
universe.
We did a sensitivity analysis of the change in EBITDA and EPS for INR1/bag price
increase. The upgrade in EBITDA came in at 2-3%. EPS upgrade for large-cap
companies was 3-4% and up to 13% for smaller companies (~13% for ICEM and
~11% JKLC).
If the current price hikes (~INR40/bag in the North, ~INR37 in Central India,
~INR23 in the East, ~INR6 in the South and ~INR26 in the West) sustain till FY20,
we expect highest EBITDA/t and EPS upgrade for companies with exposure to
the North and Central India.
While the upgrade in EBITDA/t for large-caps is over 25%, the upgrade in
EBITDA/t for mid-caps is over 50% on higher sensitivity to realizations. We do
not expect much upside for South-based companies like TRCL and ICEM, but
DALBHARA should see 12-17% upside in EPS.
Valuations seem attractive after factoring in current prices. Valuations for
UltraTech and SRCM are ~6-12% discount to LPA. Valuations would be at
substantial discount to LPA (35-60%) for ACC, ACEM, BCORP and JKLC.
At current cement prices, JKLC, ACC and SRCM can achieve ROCE greater than
15%. The maximum target price upgrade is achieved for BCORP (+89%), JKLC
(+68%), ACC (+33%).
Prices of coal soften; crude remains volatile
Prices of imported coal have reduced by 20% from 4QFY19 average; diesel prices
have inched up by 1% over the 4QFY19 average following the rally in crude
prices. However, crude price decline in the last week of May should bode well
for the cost curve of companies in case prices sustain.
3 June 2019
2

Cement
Valuation view
Based on our pricing estimates, efficient players like Shree, UTCEM, Ramco and
Dalmia are trading at 10-50% premium on current prices. If we assume the
current pricing to sustain, valuations will fall more in line with LPA for these
players (except for Ramco) and at around 30-60% discount to 10-year LPA for
other players.
Post industry consolidation of the last few years, we believe the cement industry
is now on the verge of growth. This in turn should lead to higher prices, enabling
significant upgrade in our earnings estimate. Also, demand uptick in 2HFY20 will
be critical for sustainability of prices and for upgrades to take place.
Effective utilization for the industry has improved from close to 65% in FY18 to
71% in FY19. We expect demand to grow at CAGR of 7.5% over FY19-21, driven
by infrastructure and low-cost housing programs. However, huge capacity
addition over the next two years should result in utilizations improving only by
200bp to 73%.
For our companies under our coverage universe, we expect EBITDA/t CAGR of
10% over FY19-21 to ~INR972/t by FY21. RoCE of the cement universe should
increase from 8.2% in FY19 to 10.2% in FY21.
We prefer companies with higher exposure to the North, as this region is pegged
to witness maximum improvement in capacity utilization over the next two
years. Our top pick to play the North theme is
JK Cement.
We also like
ACC,
which is in capex growth mode and should witness improvement in profitability.
Exhibit 1:
Cement - Valuation summary
CMP
ACC
ACEM
UTCEM
SRCM
BCORP
DBEL
ICEM
JKCE
JKLC
MCEM
ORCMNT
PRISM
SNGI
1,748
238
4,785
21,666
677
1,138
119
1,068
392
821
119
97
70
RECO
Buy
Neutral
Buy
Buy
Buy
Buy
Neutral
Buy
Buy
Buy
Buy
Buy
Buy
FY19
10.8
6.1
9.1
13.6
5.8
2.9
1.3
11.3
5.3
12.1
4.6
14.5
3.2
ROE (%)
FY20E
11.3
6.3
10.1
15.9
7.5
3.4
3.0
11.5
9.0
14.1
8.3
15.6
5.0
FY21E
13.3
7.1
11.5
18.2
9.8
5.5
4.5
13.0
13.7
15.5
13.7
14.8
4.7
FY19
30.5
24.8
53.5
59.8
20.4
72.8
49.9
31.3
58.0
37.6
51.1
31.1
30.1
PE (x)
FY20E
26.4
22.8
42.3
46.1
15.0
60.4
21.4
25.5
32.2
29.0
26.9
25.6
18.6
FY21E
20.5
19.9
31.2
34.5
10.7
36.2
14.1
20.3
19.1
22.9
14.6
23.8
18.8
EV/EBITDA (x)
FY19 FY20E FY21E
13.8
12.2
9.5
14.3
12.8
11.3
21.5
18.1
14.5
26.0
19.5
15.5
8.3
7.2
6.1
12.2
11.3
9.4
10.5
8.1
6.8
11.3
10.9
8.6
11.8
9.9
7.2
19.6
15.8
13.2
11.5
9.4
7.4
10.6
9.5
8.9
14.1
13.0
8.1
EV/Ton (USD)
FY19 FY20E FY21E
122
112
106
127
127
123
219
196
186
262
224
205
71
72
66
130
116
102
58
53
52
105
88
83
62
56
51
165
140
140
62
55
59
73
72
69
61
45
43
3 June 2019
3

Cement
Story in charts
Exhibit 2:
All India prices increased ~INR20/bag in Apr’19 and again by INR5/bag in May’19
Prices in INR/bag
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Central
North
East
West
South
All India
Source: MOFSL, Company
Exhibit 3:
Cement realizations for our coverage universe
increased INR159/t YoY in FY18. We expect realizations to
increase by INR150-160 for FY20 and FY21.
Cement Realization (INR/t)
4%
1%
0%
YoY growth (%)
4%
3%
Exhibit 4:
Current all-India cement prices are higher by
INR25/bag as compared to 4QFY19 average prices.
Prices in INR/bag
4QFY19
May-19
4,278
FY17
4,437
FY18
4,496
FY19
4,657
FY20E
4,810
FY21E
North
East
West
South
Central
All India
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 5:
EBITDA/t required for incremental greenfield capacities is as high as INR1,806/t
to achieve 12% post-tax ROCE
EBITDA/t (INR/t)
EBITDA at 80% utilization for 1mt capacity (INR mn)
Capex (USD/t)
Capex (INR mn)
Depreciation at 5% of capex (INR mn)
EBIT (INR mn)
ROCE
1806
1445
121
8500
425.0
1020
12%
Source: Company
3 June 2019
4

Cement
Exhibit 6:
EBITDA/t required to meet the cost of capital for
UTCEM on the acquired Binani assets is INR1,556/t
EBITDA/t required for meeting 12% of ROCE
1806
1084
1556
Exhibit 7:
Central India has witnessed highest consolidation,
followed by the North and the East
Market share of top 5 players
FY15
FY17
FY19
Greeenfield
Brownfield
UTCEM's Binani
acquistion
Source: MOFSL, Company
Central
East
North
South
West
Source: MOFSL, Company
Exhibit 8:
EPS sensitivity for ~INR1/bag price change for FY20/FY21
EBITDA Upgrade (%)
Company
ACC
ACEM
UTCEM
SRCM
TRCL
ICEM
JKCE
JKLC
BCORP
DALBHARA
ORCMNT
FY20
3%
2%
2%
1%
2%
3%
2%
4%
3%
2%
3%
FY21
2%
2%
2%
1%
2%
3%
2%
3%
2%
2%
3%
EPS Upgrade (%)
FY20
3%
3%
4%
3%
3%
13%
3%
10%
6%
8%
10%
FY21
3%
3%
3%
2%
2%
9%
3%
7%
5%
6%
6%
Source: MOFSL, Company
Exhibit 9:
Scenario analysis if current cement prices sustain till FY20-end
EBITDA
(INR/Ton)
FY20
FY21
998
1110
1179
1491
1025
582
1058
794
1103
1141
679
1118
1214
1268
1606
1143
626
1147
862
1186
1206
789
EBITDA
Upgrade (%)
FY20
FY21
46%
33%
26%
28%
0%
2%
20%
72%
43%
4%
17%
39%
34%
24%
25%
0%
2%
18%
64%
39%
4%
15%
EPS (INR/Sh)
FY20
102
9
163
679
28
6
59
34
91
22
7
FY21
123
11
210
862
36
8
72
43
112
35
11
EPS
Upgrade (%)
FY20
FY21
54%
39%
44%
44%
0%
6%
42%
177%
102%
17%
50%
44%
35%
37%
37%
0%
4%
37%
111%
77%
12%
31%
RoCE (%)
FY20
16.6
9.0
11.3
19.0
11.5
4.7
11.2
18.1
10.6
5.7
8.3
FY21
17.2
9.5
12.1
20.1
12.7
5.6
11.9
19.8
11.3
7.0
9.4
EV/EBITDA (x)
FY20
8.1
9.4
14.4
14.9
15.6
8.3
8.8
5.2
4.5
10.6
7.9
FY21
6.3
8.2
11.6
11.9
13.1
6.9
6.9
3.6
3.7
8.9
6.2
Company
ACC
ACEM
UTCEM
SRCM
TRCL
ICEM
JKCE
JKLC
BCORP
DALBHARA
ORCMNT
Source: MOFSL, Company
3 June 2019
5

Cement
Exhibit 10:
Scenario analysis if current elevated prices sustain till FY20-end
CFO (INR m)
Company
ACC
ACEM
UTCEM
SRCM
TRCL
ICEM
JKCE
JKLC
BCORP
DALBHARA
ORCMNT
FY20
35465
16075
108065
44640
10556
5231
11416
9359
18118
11255
5392
FY21
29929
38132
68431
47462
12692
9512
12821
9008
17791
28022
6464
CFO
Upgrade (%)
FY20
FY21
25%
20%
15%
18%
0%
2%
18%
56%
37%
6%
26%
31%
21%
28%
21%
0%
1%
14%
38%
28%
3%
10%
FCF (INR m)
FY20
27465
2075
-145
32640
-1444
2231
-4084
8959
7818
-7245
-4608
FY21
13929
24132
52431
39212
-4008
6512
11321
8608
9916
9522
-36
FCF
Upgrade (%)
FY20
FY21
34%
N/A
99%
26%
0%
5%
30%
69%
164%
8%
19%
102%
37%
40%
26%
0%
2%
16%
40%
63%
8%
94%
Net Debt:
EBITDA (x)
FY20
FY21
-1.8
-0.9
0.6
-1.0
1.0
3.7
2.1
0.3
2.0
1.5
3.9
-1.8
-1.2
0.2
-1.5
1.1
2.9
1.2
-0.5
1.5
1.2
3.2
Net Debt:
Equity (x)
FY20
FY21
-0.5
-0.1
0.2
-0.4
0.3
0.5
0.8
0.1
0.6
0.3
1.5
-0.5
-0.2
0.1
-0.6
0.3
0.5
0.5
-0.2
0.5
0.3
1.4
Source: MOFSL, Company
Exhibit 11:
Valuations of UTCEM and Shree that are at premium to LPA currently, appear attractive after building in pricing
improvement
Company
ACC
ACEM
UltraTech
SRCM
BCORP
ICEM
JKCE
JKLC
Ramco
DALBHARA
ORCMNT
LPA for 10 years
Valuation On
(A) today's price (B)
12.8
12.8
13.2
12.6
6.7
8.0
7.9
9.2
10.4
9.1
8.2
11.7
13.4
14.4
17.5
6.1
7.9
9.5
9.8
15.3
11.4
9.0
Discount/
premium
of (B) over (A)
-8%
4%
9%
39%
-8%
-1%
20%
6%
47%
26%
9%
Valuation
after building
price hikes(C)
6.3
8.2
11.6
11.9
3.7
6.9
6.9
3.6
13.1
8.9
6.2
Discount/
premium
of (C )over (A)
-51%
-36%
-12%
-6%
-44%
-13%
-13%
-61%
26%
-2%
-25%
Source: MOFSL, Company
Exhibit 12:
Scenario analysis for upgrade in TP in case current pricing sustains
Company
ACC
ACEM
UTCEM
SRCM
TRCL
ICEM
JKCE
JKLC
BCORP
DALBHARA
ORCMNT
Target
EV/EBITDA (x)
14
11
14.5
15
13
7
8
8
6
10
7
TP (INR/Sh)
2545
260
6505
28697
883
121
1417
729
1100
1378
157
Upgrade
in TP (%)
33%
24%
26%
23%
0%
3%
23%
68%
89%
4%
32%
Implied
EV/T (USD)
149
157
234
288
140
53
106
93
96
124
72
Source: MOFSL, Company
3 June 2019
6

Cement
Exhibit 13:
Prices of imported coal are down by 20% from
4QFY19 average
Imported coal price/ t in INR
30%
36%
15%
-4%
6%
44%
YoY increase (%)
31%
6%
-24%
4,707 4,929 5,284 5,732 6,416 7,075 6,908 6,069 4,860
20%
Exhibit 14:
Prices of diesel are 1% higher than 4QFY19
average
Diesel price (INR/ltr)
29%
11% 13%
8% 11%
YoY growth in Diesel prices
25% 24%
17%
3%
-1%
55.0 58.8 55.9 58.8 61.4 66.3 69.5 73.0 72.0 68.0 68.5
Source: MOFSL, Company
Source: MOFSL, Company
3 June 2019
7

Cement
NOTES
3 June 2019
8

Cement
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.
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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”, of
which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOSL has not received any compensation or other benefits from third party in connection with the research report
10 MOSL has not engaged in market making activity for the subject company
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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.
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