Sector Update |
Telecom | Update
18 March 2020
Telecom
Our earlier telecom update
SC dismisses reassessment of AGR liability
Next hearing to decide on DoT’s staggered payment plea
After dismissing the review and modification pleas filed earlier by the telcos for a
th
relief on the large AGR liability, India’s apex court on 18 Mar’20 maintained its iron-
fist stance, warning the DoT/telcos of potential contempt charges and ruling out pleas
for reassessment or self-assessment of telecom dues.
Consequently, Bharti/VIL will now have to pay the entire AGR liability toward license
and SUC charges of ~INR440b/INR580b (instead of INR343b/INR442b provisioned in
2QFY20 and the recent self-assessment figures of INR130b/INR210b).
However, in a slight relief to telcos, the SC after two weeks will hear the DoT’s
proposal for a staggered payment of AGR dues by telcos over a period of 20 years at
an 8% MCLR rate. According to our workings, Bharti/VIL will have to make annual
payment of INR27b/INR53b.
As the next option, telcos can file a curative petition, while the DoT/TRAI could offer a
relief on regulatory payments (annual license/SUC fees) and floor price to reduce the
burden, although clarity on this is limited.
As discussed in our earlier report “SC
dismisses modification plea on AGR liability”,
the
ongoing developments point toward far-reaching consequences on not just the
telecom sector but also the banking sector and the economy as VIL faces a risk of
shutdown with large-scale debt default (INR1.2t), job losses and subscriber
churn/annoyance.
In our view, Bharti should weather this storm through its recent fund raise. A duopoly
market will likely benefit it (along with RJio) with incremental EBITDA potential of
INR100b in FY22 even after building in network cost increase with blue-sky EBITDA of
~INR550b (on pre-Ind-AS 116). We thus remain positive on Bharti.
SC sticks to its guns on AGR liability
The Supreme Court (SC) has ruled out any reassessment or self-assessment of AGR
liabilities, stating that it would tantamount to fraud on the court and contempt of its
orders. Moreover, it maintained that operators will have to pay their full dues. It
also lashed out on the DoT officers and telecom managements for not complying
with the order and warned of contempt proceedings. The only relief is that the apex
court has agreed to consider in the next hearing after two weeks the government's
plea on allowing the affected telcos to stagger their payments over 20 years.
However, it is yet unclear whether or not it would accept 20 years as the reasonable
time for staggered payment.
DoT reverses stand
After raising demand notice for an immediate payment of complete AGR liability last
month, the DoT reversed its stand, (a) requesting that telcos be allowed to spread
payment of dues over 20 years and (b) accepting plea for self-assessment of AGR
dues. In our view, this highlights that the DoT has taken cognizance of the large-
scale consequences given the size of payment against the stretched balance sheets
of telcos. The DoT can potentially offer relief toward annual license and SUC of total
11% to ease the regulatory burden and also support a floor tariff (ongoing TRAI
consultation) to improve profitability. However, it is unclear if the government may
reduce its receipts to support the bleeding sector.
Research Analyst: Aliasgar Shakir
(Aliasgar.Shakir@motilaloswal.com); +91 22 6129 1565
Suhel Shaikh
(Suhel.Ahmad@MotilalOswal.com); +91 22 5036 2611;
Anshul Aggarwal
(Anshul.Aggarwal@motilaloswal.com); +91 22 5036 2511
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
Telecom | Update
Telecom sector likely to undergo tumultuous times; far-reaching
ramifications on multiple sectors
According to our workings, VIL needs ~40% ARPU increase to achieve EBITDA of
INR300b in order to bridge the gap of INR150b EBITDA in FY22 against cash
requirement toward (a) INR165b deferred spectrum liability, (b) INR52b annual AGR
payment, (c) cash interest cost of INR30b and (d) capex of ~INR50b. This is assuming
there is no further subscriber churn which also appears unlikely given weak network
capability and weak consumer sentiment. As discussed in our earlier note -
SC
dismisses modification plea on AGR liability,
SC’s verdict could have serious
repercussion on the telecom and banking sectors in particular and the economy in
general as VIL faces an imminent risk of shutdown, leading to large magnitude of
debt default, job losses and customer annoyance. Even with the will, VIL – with a
stressed balance sheet (only INR125.3b cash as of 3QFY20 – VIL paid INR65b for AGR
dues in 4QFY20) – will find it difficult to pay such a large magnitude of liability in
such a short period. To put it in perspective, VIL has gross debt of INR1.2t (without
considering AGR liability), of which ~INR900b is government’s deferred spectrum
debt, while ~INR250b is bank debt. It has 300m subscribers (~25% of India’s
population) and ~13.5k employees. This is merely the direct impact, while the
indirect impact on network vendors and other stakeholders could be even worse.
Will we eventually reach a duopoly market?
Both VIL and the government have limited options available to mitigate the issue. In
the adverse event of VIL shutting down, it could have repercussions on the
remaining two players’ network and costs due to the current network sharing
structure in the industry. The exponential pace of data volume growth coming from
unlimited plans has already burdened the networks with subpar speeds. VIL’s 118m
broadband customers and 3.8b GB of data traffic could increase Bharti/RJio’s traffic
volume by 30-40%. Managements have indicated that they have options for
debottlenecking network through spectrum refarming, densification and backhaul
through massive mimo and fiberization. Yet, the magnitude of the increase could
clearly strain networks and bring in the risk of an increase in capex intensity.
However, assuming RJio/Bharti get subscriber share of 40:60 from VIL, both telcos
could see EBITDA addition of INR150b/INR100b with 50% margin, implying a jump of
29%/22% on FY22E EBITDA to INR671b/INR547b.
Bharti, RJio well prepared
Bharti has prepared itself with a plan-B by raising INR215b in Jan’20 by way of QIP
(INR144b) and FCCB (INR71b), while additional INR50-60b could be generated
through FCF. The rest ~INR170b (against AGR dues of INR440b) could be funded by
bank loans. Bharti’s present net debt stands at INR847b (as of 3QFY20 – post that
Bharti raised INR215b and paid INR180 for AGR dues) with EBITDA of ~INR400b in
FY21 (net debt to EBITDA of 2.2x). So, incremental INR170b would still keep net debt
manageable at ~INR1,020b with 2.6x net debt to EBITDA. Similarly, RJio after its
recent capital reorganization is well placed with net debt of much lower levels of
INR600b. RJio is expected to generate EBITDA of INR521b in FY22 and garner
incremental EBITDA of INR258b/INR150b due to potential ARPU increase/eating into
VIL’s market share.
18 March 2020
2
 Motilal Oswal Financial Services
Telecom | Update
Postiive on Bharti, RJIo
We maintain our SOTP-based TP of INR650 on Bharti, assigning 12x on FY22E India
wireless EBITDA and 6x on Africa. If we assume a duopoly scenario, Bharti can
generate incremental EBITDA of INR100b, assuming it gets 40% revenue share and
50% EBITDA margin (building incremental network cost and higher capex intensity).
Thus, it can garner EBITDA of INR550b in FY22, without factoring any further ARPU
increase. At 10x EV/EBITDA, it could derive a blue-sky TP of INR825. We maintain
our TP of INR500/share on RJio which could see additional gains due to ARPU
increase or eating into VIL’s market share.
Exhibit 1: Annual payout for AGR dues by Bharti over 20yrs
Bharti Airtel AGR Payout
AGR dues as per Bharti
Additional amount paid
Total Amount Paid towards AGR
AGR as per DoT
Balance to be paid (NPV)
Period in yrs (N)
Discount rate (I/Y)
Annual Payout (PMT)
Amount (INRb)
130.0
50.0
180.0
440
260.0
20
8%
26.5
Source: MOFSL, Company
Exhibit 2: Annual payout for AGR dues by VIL over 20yrs
VIL AGR Payout
AGR dues as per VIL
Total Amount Paid towards AGR
AGR as per DoT
Balance to be paid (NPV)
Period in yrs (N)
Discount rate (I/Y)
Annual Payout (PMT)
Amount (INRb)
215.3
65.0
580.0
515.0
20
8%
52.5
Source: MOFSL, Company
Exhibit 3: Price hike required by VIL to survive
(Amount in INR b)
Capex
Cash Interest
Deferred spectrum liability
AGR payment
Total requirement
EBITDA (pre IND AS 116)
Incremental EBITDA required
Incremental revenue required
ARPU (INR)
Subscribers (m)
ARPU hike required (INR)
New ARPU (INR)
Increase in ARPU required (%)
FY22
52
30
165
52
300
153
147
210
135
332
53
188
39%
Source: MOFSL, Company
Exhibit 4: At 39% ARPU hike (needed by VIL to survive),
BHARTI/RJIL’s incremental EBITDA
Company
(Amount in INR b)
EBITDA
ARPU (INR)
Increase in ARPU due to VIL price hike (%)
New ARPU
Subscribers (m)
Incremental revenue
Incremental EBITDA
New EBITDA
Increase in EBITDA (%)
Bharti
RJio
FY22
FY22
447
521
179
163
39%
39%
249
227
297
483
248
369
174
258
621
779
39%
50%
Source: MOFSL, Company
Exhibit 5: Duopoly market a big EBITDA trigger
BHARTI/RJio gain 40%/60% of VIL’s subscribers
Particulars
% of VIL customers acquired
Customer acquired by incumbents
Increase in annual revenue (INRb)
Incremental EBITDA at 50% (INRb) - A
FY22E EBITDA - B
New EBITDA post acquisition of VIL subs (A+B)
Increase in EBITDA (%) - A/B
Total VIL subscribers (m)
FY20E ARPU (post price hikes)
Annual ARPU (INR)
Bharti
40%
122
200
100
447
547
22%
304
137
RJio
60%
182
300
150
521
671
29%
1,645
Source: Company, MOFSL
18 March 2020
3
 Motilal Oswal Financial Services
Telecom | Update
Exhibit 6: Duopoly market a big EBITDA trigger
BHARTI/RJio gain 50%/50% of VIL subscribers
Particulars
% of VIL customers acquired
Customer acquired by incumbents
Increase in annual revenue (INRb)
Incremental EBITDA at 50% (INRb) - A
FY22E EBITDA – B
New EBITDA post acquisition of VIL subs (A+B)
Increase in EBITDA (%) - A/B
Total VIL subscribers (m)
FY20E ARPU (post price hikes)
Annual ARPU (INR)
Bharti
50%
152
250
125
447
572
28%
304
137
RJio
50%
152
250
125
521
646
24%
1,645
Source: Company, MOFSL
Total Outstanding as
Interest on
on 5/July/2019 as per
Penalty
the Demand by DoT
12
79
39
217
3
21
0
0
15
85
37
198
52
283
0
2
3
25
0
1
34
165
0
0
0
0
1
3
20
100
3
20
1
10
169
926
Total Outstanding
229
Exhibit 7: Telco-wise license fee outstanding, according to DOT demand (INR b) (based on media articles)
Company
Aircel
Bharti Airtel
BSNL
Etisalat
Idea
Vodafone
Total Vodafone Idea
Loop Telecom
MTNL
Quadrant
RCOM
Reliance Jio Infocomm Ltd.
S Tel
Sistema Shyam
TTSL
Telenor
Videocon
Total
Company
Bharti Airtel
Tata Group
Telenor
Total Vodafone Idea
Vodafone
Aircel
RCom
RJio
Others
Total
License fee dues as
Interest on
License License Fee
per demand raised
balance License Penalty
Fee Paid Balance
by DoT
Fee
68
46
22
33
11
361
306
55
98
24
27
20
6
9
3
0
0
0
0
0
140
119
21
39
9
201
153
48
91
23
341
272
69
130
32
4
3
1
1
0
32
23
9
9
4
2
1
0
1
0
124
88
36
77
18
0
0
0
0
0
0
0
0
0
0
6
5
1
1
0
104
80
23
46
11
16
11
5
8
3
9
5
4
3
2
1,093
861
232
417
109
Principal
49
7
1
10
18
5
7
0
-
98
Interest
128
19
1
23
46
13
23
0
-
253
Penalty
21
3
0
4
9
3
5
0
-
44
Exhibit 8: Telco-wise SUC outstanding, according to DOT demand (INR b) (based on media articles)
Outstanding dues
198
29
2
37
73
20
35
0
-
395
110
20
35
0
15
410
Exhibit 9: VIL has hardly cash to sustain next 2-3 quarters
Particulars
EBITDA (4QFY20E)
Cash & CE (3QFY20)
Total Cash available for 4QFY20
Capex
Non Spectrum Interest Cost
Spectrum dues pending in FY20
Total Cash Requirement for 4QFY20
Amount (INRb)
18
125
143
45
13
31
89
Source: Company, MOFSL
18 March 2020
4
 Motilal Oswal Financial Services
Telecom | Update
Exhibit 10: VIL unable to refinance spectrum debt due to high debt
Net debt (INR b)
Net debt/EBITDA (x)
24.6
11.8
2.8
2.6
2.1
2.4
1.3
3.0
4.7
8.4
8.4
7.2
Source: Company, MOFSL
Exhibit 11: VIL’s FCF negative even after price hike
Amount in INR b
Annualized EBITDA
Interest Cost
Capex
Previous FCF (INR b)
Increase in EBITDA
New FCF, without AGR
FCF Yield
FY21E
77
28
150
-101
41
-149
-59
-148%
-59%
Source: Company, MOFSL
FY19
40
87
102
-149
Exhibit 12: Bharti Airtel — SOTP-based on FY22
EBITDA
(INR b)
India SA business (excl. towers)
Tower business (15% discount to fair value)
Africa business
Less net debt
AGR Liability
Total Value
Shares o/s (b)
CMP
Upside (%)
329
138
Ownership
(%)
100%
53.5%
55.2%
Proportionate
EBITDA
(INR b)
329
76
EV/
EBITDA (x)
12
6
Fair Value
(INR b)
3,924
235
462
737
343
3,883
Value/
Share (INR)
719
43
85
135
63
650
440
48
Source: Company, MOFSL
5.5
18 March 2020
5
 Motilal Oswal Financial Services
Telecom | Update
Exhibit 13: Bharti FCF yield to reach 7% by FY22
FCF post Interest (INR b)
2%
34
3%
52
2%
29
Yield (%)
1%
-4%
-7
-77
-11%
-187
FY12
FY13
FY14
FY15
FY16
FY17
FY18
-4%
-62
-12%
-218
FY19
FY20E
FY21E
FY22E
26
5%
118
7%
169
0%
Source: Company, MOFSL
Exhibit 14: RJIO’s debt restructuring
Source: Company, MOFSL
Exhibit 15: RJio valuation (INR b)
INR b
EBITDA
Capex
FCFF (pre tax)
Tax
FCFF (post tax)
Terminal Value
Cashflow after Terminal Value
NPV
TP (INR)
FY20E
220
200
20
-22
-2
-2
5,008
500
FY21E
398
200
198
-59
139
139
FY22E
521
218
303
-72
231
231
FY23-30E
5,050
948
4,102
-889
3,213
6,435
9,648
Source: Company, MOFSL
Exhibit 16: Bharti/RJio EBITDA to improve 10-13%; VIL to see strong operating leverage if
spectrum and license fee reduces from 11%-12% to 5%-6%
(Amount in INR b) FY21E
EBITDA in FY21
Current annual payout for LF/SUC at 12%
Reduction of 7% to 5%
Increase in EBITDA
Increase in Annualized EBITDA (%)
Bharti
RJio
VIL
396
398
119
69
90
57
29
37
24
40
52
33
10%
13%
28%
Source: Company, MOFSL
18 March 2020
6
 Motilal Oswal Financial Services
Telecom | Update
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”,
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 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
18 March 2020
7
 Motilal Oswal Financial Services
Telecom | Update
********************************************************************************************************************************
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.
18 March 2020
8