24 February 2020
Company Update
| Sector:
Hospitality
Indian Hotels
Buy
BSE SENSEX
40,363
S&P CNX
11,829
CMP: INR138
TP: INR189 (+37%)
Strategy execution on track
Support from industry yet to follow
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
IH IN
1,189
164 / 2.3
164 / 121
-2/-8/-16
186
60.9
Indian Hotels (IHIN) appears to be firing well on its ‘Aspiration 2022’ target on EBITDA
margin (expansion of 800bp), revenue (improvement of 3-4%), cost (reduction by 3-5%),
project addition (15 every year) and portfolio (equal proportion of owned and managed
rooms). At its third Capital Markets meet, the company articulated execution toward this
goal – it will achieve 400bp margin expansion by FY20 and the proportion of managed
rooms has already reached 43% (as of 9MFY20). Key highlights from the meet:
Looking beyond near term; hotel industry still in upcycle
Financials Snapshot (INR b)
Y/E Mar
2020E 2021E
Sales
47.2
51.7
EBITDA
11.3
13.6
PAT
4.0
5.2
EBITDA (%)
23.9
26.4
EPS (INR)
3.4
4.4
EPS Gr. (%)
43.0
30.3
BV/Sh. (INR)
39.2
42.7
Ratios
Net D/E
0.7
0.6
RoE (%)
8.9
10.7
RoCE (%)
7.2
7.9
Payout (%)
21.7
19.4
Valuations
P/E (x)
40.9
31.4
EV/EBITDA (x)
18.3
14.8
Div Yield (%)
0.4
0.5
FCF Yield (%)
(7.7)
4.4
2022E
55.6
15.8
6.8
28.4
5.7
30.4
47.5
0.4
12.7
9.2
17.0
24.1
12.4
0.6
5.5
India’s hotel industry performance this fiscal has been impacted by various
factors, including Jet Airways shutdown, general elections, protests (albeit to a
smaller extent) in the NCR region, and the lack of pick-up in corporate demand
due to the economic slowdown.
However, Mr Achin Khanna from Hotelivate (hospitality consulting firm)
appeared sanguine about the underlying theme on the back of the prospects
of a favorable demand-supply scenario. While supply CAGR is estimated at 5%
over FY20-24, demand growth will likely outpace that rate going forward
(interestingly, demand growth has ranged from 9-14% over the last 14 years,
including some very challenging years).
Although bookings have been cancelled following the outbreak of coronavirus,
domestic demand has been good enough to compensate for the same. The
shift of wedding destinations from South East Asia to India in the wake of
coronavirus has also supported the bookings trend.
As part of its ‘Aspiration 2022’ goal, IHIN targets to strike a balance between
managed and owned rooms at 50:50. The company has progressed well on
this front with 43% managed rooms as of 9MFY20 versus 32% as of FY18 (incl.
pipeline rooms).
IHIN has signed 27 hotels (3,542 rooms) in 9MFY20, higher than 22 (3,258
rooms) in FY19. With that, the company has outpaced industry in terms of
room addition under management contracts, in our view. Asset owners are
fast getting associated with IHIN because of (a) inclination toward being
associated with the ‘Taj’ brand and (b) transparent contract terms.
IHIN estimates income from management contracts at INR2,350m in FY20,
which has ~70% flow through to EBITDA. It expects further ramp up as hotels
launched in FY20 stabilize going forward.
Overall management contract pipeline stands at 4,727 rooms, which is ~50%
of rooms that generate management fee income (total of ~9,500 rooms and
fees are also earned from owned managed hotels, JV, subsidiary and
associates).
Staying asset light – room addition under management contracts
Shareholding pattern (%)
As On
Dec-19 Sep-19 Dec-18
Promoter
39.1
39.1
39.1
DII
35.5
41.1
28.2
FII
11.8
0.0
14.0
Others
13.7
19.8
18.7
FII Includes depository receipts
Stock Performance (1-year)
Indian Hotels
Sensex - Rebased
180
165
150
135
120
Research Analyst : Sumant Kumar
(Sumant.Kumar@MotilalOswal.com); +91 22 61291569
Darshit Shah
(Darshit.Shah@MotilalOswal.com); +91 22 61291546
|
Yusuf Inamdar
(yusuf.inamdar@motilaloswal.com); +91 22 71934239
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
Indian Hotels
From a ‘Branded House’ to a ‘House of Brands’ – generating additional
revenue stream
IHIN had guided for generating an additional revenue stream by capitalizing on
the existing brands (Chambers)/launching new brands (Ama, nui&nau, launch
‘Anuka’ brand in Taj SATS for directly offering services to B2C segment, Brew
Pub with AB InBev and Paper Moon).
For instance, IHIN has re-launched ‘Chambers’ and added 115 new members;
150 have migrated to its global membership which cumulatively generated
revenue of INR320m in four months.
Of total capital employed of INR75b, 52% pertains to hotel assets which
generate >16% RoCE.
Of the balance capital employed, IHIN is monetizing its non-core assets (sale of
residential apartments and land in Pune generated INR1.5b) and unlocking value
of latent assets (Ginger hotel addition in Mumbai).
Additionally, the company is efficiently allocating capital by the sale and
manage-back method, thereby releasing capital (sale of Gateway Vizag and
Vivanta Trivandrum generated cash flow of INR1.7b).
Thus, we believe these initiatives would free up capital for expansion, debt
reduction and efficient capital allocation, which in turn would drive the return
ratios.
Management targets to generate double-digit return on incremental capital
employed (capex and renovation).
IHIN rebranded and re-launched 13 of its 64 Ginger properties under the lean-
luxury segment, which led to a 26% increase in ARRs in 3QFY20. Around 24% of
the portfolio would be rebranded by FY20, which will eventually increase to 50%
by FY21.
Roots Corporation, which operates the Ginger brand, generated revenue of
INR2,035m, which management targets to increase to INR4,500-5,000m by
2022.
Intimation of disapproval has been received for its 371-room owned Ginger
property in Mumbai. IHIN will soon commence the construction and will incur
cost of INR2,000m. It is to be noted that the hotel is constructed on the existing
landbank only. IHIN expects 50-60% EBITDA margin for the hotel.
IHIN is well on track to achieve its ‘Aspiration 2022’ goal and has made good
progress on other strategic initiatives like rebranding of Ginger, monetizing of
existing landbank, selling non-core assets, JV with GIC to add rooms and creating
alternative revenue streams (like re-launching of Chambers, Ama).
More importantly, the underlying thesis of favorable demand-supply led growth
in India’s hotels industry remains intact. This will also work in favor of IHIN.
We maintain our estimates: revenue/EBITDA/PAT CAGR (FY20-22) of
9%/18%/30% to INR55.6b/INR15.8b/INR6.8b.
We value the stock at 16x FY22E EV/EBITDA. On an SOTP (consol. and JV &
associate) basis, we arrive at a target price of INR189. Maintain
Buy.
Core hotel assets generate >16% RoCEs
Rebranding of Ginger hotel yielding higher ARRs
Valuation and view
24 February 2020
2
 Motilal Oswal Financial Services
Indian Hotels
Exhibit 1: Valuation Methodology
Particulars
IHCL- ex JV/ Associate
EV
Less: Net Debt
Less: Minority Interest
Sub Total
JV/Associate
Taj GVK (IHCL's share - 25.5%) - JV
Oriental Hotel (IHCL's share - 35.7%) - Associate
Sub Total
Target Price
CMP
Upside (%)
Methodology
EV/EBITDA (x)
Metrics
EBITDA
FY22E
15,813
Multiple
(x)
16.0
Value/
Value share
(INRm) (INR)
253,002
-23,601
-7,999
221,402
2,101
1,377
3,478
224,879
213
(20)
(7)
186
1.8
1.2
2.9
189
138
37%
20% discount to MCAPAttributable Mcap
20% discount to MCAPAttributable Mcap
2,627
1,721
0.8
0.8
Source: MOFSL
Other key takeaways from the Capital Market Day
Chennai and Kolkata market would take some time to absorb higher inventory
supply.
IHIN would acquire balance 15% stake in Searock from the other party in the
next one month.
Cost initiatives:
PBT losses from the US and UK hotels (which stood at USD6.6m in 9MFY18) have
turned into profit of USD1.9m in 9MFY20.
The company is working on several initiatives to reduce power cost, using
shared services for laundry, rationalizing its F&B menu and others.
Taj SATS
Taj SATS is the market leader in the flight catering business with 34% market
share and operates six kitchens.
As part of its initiative to simplify the holding structure, Taj SATS has acquired
Taj Madras Flight Kitchen.
It intends to launch a new brand – Anuka – which will offer services directly to
B2C customers.
24 February 2020
3
 Motilal Oswal Financial Services
Indian Hotels
Exhibit 2: Hotel industry cycles in India
Source: Hotelivate, Company, MOFSL
Exhibit 3: Growth in branded/traditional chain-affiliated room inventory
Source: Hotelivate, Company, MOFSL
Exhibit 4: Branded/traditional chain-affiliated room inventory by positioning
Source: Hotelivate, Company, MOFSL
24 February 2020
4
 Motilal Oswal Financial Services
Indian Hotels
Exhibit 5: Room inventory in pipeline – City wise
Source: Hotelivate, Company, MOFSL
Exhibit 6: Aspiration 2022 – 800bp margin expansion
Source: Company, MOFSL
24 February 2020
5
 Motilal Oswal Financial Services
Indian Hotels
Exhibit 7: From a branded house to a house of brands - IHIN
Source: Company, MOFSL
Exhibit 8: Change in Ginger brands repositioning
Source: Company, MOFSL
24 February 2020
6
 Motilal Oswal Financial Services
Indian Hotels
Exhibit 9: Ginger rebranding impact
Source: Company, MOFSL
Exhibit 10: Cost initiatives to drive performance
Source: Company, MOFSL
24 February 2020
7
 Motilal Oswal Financial Services
Indian Hotels
Exhibit 11: Development strategy across brands
Source: Company, MOFSL
Exhibit 12: Portfolio of rooms over years including pipeline rooms
Mgmt contract rooms as a % of total rooms
Rooms
Hotels
28%
141
16,920
FY16
31%
32%
160
39%
179
43%
200
155
18,361
FY17
18,965
FY18
22,231
FY19
25,023
9MFY20
Source: Company, MOFSL
Exhibit 13: New hotel signings trend
New Rooms Signed
No. of hotels
27
22
14
8
632
FY16
1,174
FY17
5
468
FY18
3,258
FY19
3,542
9MFY20
Exhibit 14: Hotel openings accelerated in FY20
New Rooms Opened
10
8
5
5
No. of hotels
12
1,065
FY16
442
FY17
625
FY18
524
FY19
1,556
9MFY20
Source: Company, MOFSL
Source: Company, MOFSL
24 February 2020
8
 Motilal Oswal Financial Services
Indian Hotels
Exhibit 15: US and UK hotel losses have reduced
US & UK PBT (USDm)
1.9
-7.9
-6.7
-6.6
-1.2
Source: Company, MOFSL
Exhibit 16: Revenue streams of IHIN
Source: Company, MOFSL
Exhibit 17: Approach to funding expansion
Source: Company, MOFSL
24 February 2020
9
 Motilal Oswal Financial Services
Indian Hotels
Exhibit 18: Return on capital employed is >16% on the hotel asset
Source: Company, MOFSL
Exhibit 19: Expect revenue CAGR of 9% over FY20-22
Consol Revenue (INRm)
Growth (%)
Exhibit 20: Expect EBITDA CAGR of 18% over FY20-22
Consol EBITDA (INRm)
EBITDA Margin (%)
28.4%
26.4%
23.9%
10%
5%
10%
8%
13.7%
15.2%
16.3%
18.4%
0%
-4%
FY16
FY17
2%
FY18
FY19
FY20E
FY21E
FY22E
FY16
FY17
FY18
FY19
FY20E
FY21E
FY22E
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 21: Standalone ARR to clock 8% CAGR over FY20-22
ARR - IHIN Standalone (INR/day)
10%
6%
2%
-3%
FY15
FY16
FY17
FY18
FY19
FY20E FY21E FY22E
Source: Company, MOFSL
3%
0%
Growth (%)
9%
8%
Exhibit 22: Standalone occupancy trend
Occupancy Rate - IHIN Standalone (%)
71%
67%
68%
69%
72%
64%
65%
66%
FY15
FY16
FY17
FY18
FY19
FY20E FY21E FY22E
Source: Company, MOFSL
24 February 2020
10
 Motilal Oswal Financial Services
Indian Hotels
Exhibit 23: Adj PAT trend
Adj. PAT (INRm)
Exhibit 24: Net debt to equity trend
Net Debt to Equity (INRm)
Net Debt to Equity Ratio (x)
1.6
1.2
0.7
0.6
30,144
FY21E
784
-1,485
FY16
-524
FY17
FY18
2,802
4,008
5,224
6,813
41,729
30,451
FY17
0.4
18,262
FY18
0.4
18,739
FY19
34,609
FY20E
0.4
23,601
FY22E
FY19
FY20E
FY21E
FY22E
FY16
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 25: RoE and RoCE trend
RoE (%)
RoCE (%)
6.6%
2.8%
3.4%
3.8%
4.6%
5.9%
2.3%
-1.0%
-6.2%
FY15
FY16
FY17
FY18
FY19
FY20E
FY21E
-2.1%
8.9%
7.2%
10.7%
7.9%
Source: Company, MOFSL
24 February 2020
11
 Motilal Oswal Financial Services
Indian Hotels
Financials and Valuations
Consolidated - Income Statement
Y/E March
Total Income from Operations
Change (%)
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Minority Interest
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY15
41,886
3.0
37,001
88.3
4,886
11.7
2,913
1,973
1,756
987
1,204
-3,529
-2,325
1,146
-49.3
310
-3,781
-252
NA
-0.6
FY16
40,230
-4.0
34,709
86.3
5,521
13.7
2,848
2,673
3,756
997
-86
-827
-913
906
-99.3
493
-2,312
-1,485
NA
-3.7
FY17
40,206
-0.1
34,110
84.8
6,096
15.2
2,994
3,102
3,238
549
413
-108
306
1,137
372.2
-200
-632
-524
NA
-1.3
FY18
41,036
2.1
34,332
83.7
6,704
16.3
3,012
3,692
2,690
617
1,618
225
1,843
1,211
65.7
-376
1,009
784
NA
1.9
FY19
45,120
10.0
36,823
81.6
8,297
18.4
3,279
5,019
1,901
834
3,951
66
4,017
1,571
39.1
-422
2,868
2,802
257.4
6.2
FY20E
47,191
4.6
35,902
76.1
11,289
23.9
4,077
7,212
3,400
1,099
4,911
8
4,919
854
17.4
49
4,016
4,008
43.0
8.5
FY21E
51,725
9.6
38,087
73.6
13,638
26.4
4,427
9,211
3,366
1,204
7,050
0
7,050
2,326
33.0
-501
5,224
5,224
30.3
10.1
INRm
FY22E
55,624
7.5
39,812
71.6
15,813
28.4
4,611
11,202
3,114
1,295
9,384
0
9,384
3,097
33.0
-526
6,813
6,813
30.4
12.2
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Minority Interest
Total Loans
Deferred Tax Liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Goodwill on Consolidation
Capital WIP
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Appl. of Funds
FY15
808
21,465
22,272
7,378
50,741
2,516
82,908
86,887
28,727
58,160
4,832
3,057
15,869
16,951
1,030
3,029
5,035
7,857
15,961
3,645
10,711
1,605
990
82,908
FY16
989
24,813
25,803
7,429
45,260
2,382
80,874
64,751
2,661
62,090
5,527
2,900
15,152
12,305
802
2,420
1,825
7,258
17,099
3,240
11,846
2,013
-4,794
80,874
FY17
989
24,188
25,177
7,378
33,830
2,820
69,206
57,923
5,506
52,417
5,737
2,227
12,437
13,173
804
2,721
2,471
7,177
16,785
3,370
11,305
2,110
-3,612
69,206
FY18
1,189
40,622
41,811
7,774
24,270
3,563
77,418
63,356
7,385
55,971
5,655
1,970
15,965
14,184
857
3,286
2,703
7,338
16,328
3,513
10,349
2,465
-2,143
77,418
FY19
1,189
42,291
43,480
7,999
23,260
3,768
78,506
69,051
10,663
58,388
5,835
1,162
13,351
17,102
804
3,214
2,409
10,675
17,331
3,253
11,579
2,500
-229
78,506
FY20E
1,189
45,437
46,626
7,999
40,567
3,768
98,959
91,300
14,740
76,560
5,835
2,232
15,351
16,952
784
3,232
1,846
11,090
17,971
3,246
12,111
2,614
-1,019
98,959
FY21E
1,189
49,645
50,835
7,999
39,567
3,768
102,167
95,086
19,167
75,919
5,835
2,446
17,351
19,841
832
3,543
3,311
12,155
19,225
3,364
13,274
2,586
616
102,167
(INR m)
FY22E
1,189
55,298
56,487
7,999
34,567
3,768
102,820
99,043
23,777
75,266
5,835
2,489
17,351
22,452
869
3,657
4,853
13,072
20,573
3,517
14,275
2,781
1,879
102,820
24 February 2020
12
 Motilal Oswal Financial Services
Indian Hotels
Financials and Valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
EV/ Adj Rooms (INRm)
EBITDA/ Room (INR)
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/Equity
FY15
-0.2
2.2
18.7
0.0
-0.9
FY16
-1.2
1.1
21.7
0.0
0.0
NA
120.4
6.4
5.3
38.6
0.0
2.1
22.8
3,710
-1.0
2.8
5.1
0.5
0.5
9
26
32
1.1
1.1
1.8
-6.2
3.4
8.9
0.6
0.5
7
22
29
0.7
0.7
1.6
FY17
-0.4
2.1
21.2
0.2
-53.9
NA
66.5
6.5
5.0
33.1
0.2
8.0
21.2
4,107
-2.1
3.8
-14.9
0.7
0.6
7
25
31
0.8
1.0
1.2
FY18
0.7
3.2
35.2
0.3
41.9
209.3
43.2
3.9
4.6
28.4
0.2
-0.1
19.3
4,313
2.3
4.6
2.3
0.6
0.5
8
29
31
0.9
1.4
0.4
FY19
2.4
5.1
36.6
0.5
25.3
58.6
27.0
3.8
4.2
23.0
0.4
-0.4
18.9
5,144
6.6
5.9
5.2
0.7
0.6
7
26
26
1.0
2.6
0.4
FY20E
3.4
6.8
39.2
0.6
21.7
40.9
20.3
3.5
4.4
18.3
0.4
-10.6
20.4
6,821
8.9
7.2
8.4
0.5
0.5
6
25
25
0.9
2.1
0.7
FY21E
4.4
8.1
42.7
0.7
19.4
31.4
17.0
3.2
3.9
14.8
0.5
6.0
19.3
7,628
10.7
7.9
7.8
0.5
0.5
6
25
24
1.0
2.7
0.6
FY22E
5.7
9.6
47.5
0.8
17.0
24.1
14.4
2.9
3.5
12.4
0.6
7.6
18.2
8,506
12.7
9.2
9.5
0.6
0.5
6
24
23
1.1
3.6
0.4
Consolidated - Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
FY15
-2,325
2,913
1,267
-197
-206
1,452
3,496
4,948
-3,111
1,836
-4,501
954
-6,658
0
6,865
-1,774
-180
0
4,911
3,200
1,836
5,036
FY16
-912
2,848
3,293
-900
948
5,278
910
6,188
-3,657
2,531
5,028
1,196
2,567
0
-9,850
-1,880
-235
-1
-11,966
-3,211
5,036
1,825
FY17
306
2,994
3,015
-868
-599
4,848
498
5,345
4,193
9,538
4,425
496
9,114
0
-11,719
-1,637
-458
0
-13,814
645
1,826
2,471
FY18
1,618
3,012
2,073
-1,425
-1,033
4,246
675
4,920
-5,094
-174
-1,462
912
-5,644
14,999
-9,498
-4,089
-447
-7
957
233
2,471
2,704
FY19
4,017
3,279
1,068
-1,571
-2,208
4,584
0
4,584
-5,067
-483
2,614
834
-1,619
0
-1,010
-1,901
-725
378
-3,258
-294
2,704
2,409
FY20E
4,919
4,077
2,302
-854
226
10,670
0
10,670
-23,319
-12,649
-2,000
1,099
-24,221
0
17,307
-3,400
-871
-49
12,987
-564
2,409
1,846
(INR Million)
FY21E
7,050
4,427
2,161
-2,326
-170
11,141
0
11,141
-4,000
7,141
-2,000
1,204
-4,796
0
-1,000
-3,366
-1,016
501
-4,880
1,465
1,846
3,311
FY22E
9,384
4,611
1,818
-3,097
279
12,995
0
12,995
-4,000
8,995
0
1,295
-2,705
0
-5,000
-3,114
-1,161
526
-8,748
1,542
3,311
4,853
24 February 2020
13
 Motilal Oswal Financial Services
Indian Hotels
NOTES
24 February 2020
14
 Motilal Oswal Financial Services
Indian Hotels
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
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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.
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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
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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
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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
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Specific Disclosures
1 MOFSL, 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 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, 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 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
********************************************************************************************************************************
24 February 2020
15
 Motilal Oswal Financial Services
Indian Hotels
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,
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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
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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.
24 February 2020
16