28 June 2020
4QFY20 Results Update | Sector: Utilities
NTPC
Estimate change
TP change
Rating change
Motilal Oswal values your support in
the Asiamoney Brokers Poll 2020 for
India Research, Sales and Trading
team. We
request your ballot.
CMP: INR97
TP: INR145 (+49%)
Buy
Adj. PAT benefits from FC recoveries
FC recoveries flow in; Reported PAT impacted by tax-related one-offs
NTPC’s results highlight the impact of several one-offs, largely on the tax
front. Adj. for these one-offs, though, numbers reflect the benefit of fixed
cost (F/C) recoveries and strong other income. We expect FC under-
recoveries (u/r) to remain low on better coal availability.
Commercialization at 5.3GW in FY20 marked an all-time high for the
company. A pickup in capitalization, along with lower F/C u/r, should drive a
10% earnings CAGR over FY20–23. Maintain
Buy,
with TP of INR145/sh.
Adj. profits benefit from FC recoveries and other income
Adj. for one-offs and FC u/r, NTPC's S/A PAT came in at INR33.0b (4% up YoY
and 8% higher than our est. of INR30.4b). The beat on our estimate was
partly led by higher-than-expected other income (adj. other income at
INR6.8b v/s our est. of INR6b). Other income was aided by late payment
surcharge of INR3.9b. Fixed cost recoveries stood at INR1.3b.
Reported PAT, however, came in at INR12.5b (down 71% YoY) given the
numerous one-offs. Among them were: a) INR8.9b net impact on tax under
the Vivad se Vishwas scheme and b) INR8b impact on account of adj. for
RRA and MAT credit. For FY20, adj. S/A profit (incl. FC u/r) grew 15% YoY to
INR121b v/s INR106b in FY19. FY20 S/A CFO stood at INR220b while the
company declared a total dividend of INR3.15/sh for FY20.
Profit from JVs was lower at INR0.5b v/s INR0.8b in 4Q. Overall, FY20 JV
profit declined to INR4b in FY20 v/s INR6.7b in FY19 on account of losses at
Meja (losses >INR3b for FY20).
Management commentary: Commercialization target of ~5.9GW for FY21
NTPC expects capitalization momentum to continue and targets ~5.9GW for
commercialization in FY21. However, the company has witnessed issues
related to manpower deployment, which could hamper execution. The
company is confident of achieving at least 4.5GW in FY21. It has set a
commercialization target of 5.7GW for FY22.
The co. further plans to increase its footprint in the Renewable space.
~2.3GW solar projects are under implementation for the co., and it has
awarded ~2.1GW projects on an EPC basis.
Overdues for the company have risen and currently stand at INR180b v/s
INR96b at the end of FY20.
Capitalization gains pace, under-recoveries decline; Reiterate Buy
NTPC commercialized 5.3GW of capacities for FY20 – the highest ever in a
single fiscal year – and is guiding for ~5.9GW to be capitalized in FY21.
Capitalization has picked up pace and would drive a regulated equity CAGR of
12% over FY20–23E and boost RoE (+120bps accretion). Furthermore, muted
power demand, coupled with production ramp-up at Coal India’s mines, has
led to an increase in coal stocks at power plants and improved plant
availability factors. Thus, FC u/r should remain low. Maintain Buy, with a DCF
based target price of INR145/sh.
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
NTPC IN
9,895
960.3 / 12.6
146 / 74
-11/-2/-19
1704
Financials & Valuations (INR b)
Y/E MARCH
2020 2021E
Sales
1,143 1,094
EBITDA
364.1 351.9
Adj. PAT
136.6 130.4
EBITDA Margin (%)
31.8 32.2
Cons. Adj. EPS (INR)
13.8 13.2
EPS Gr. (%)
19.2
-4.5
BV/Sh. (INR)
120.1 126.9
Ratios
Net D:E
1.7
1.5
RoE (%)
11.9 10.7
RoCE (%)
6.5
6.6
Payout (%)
22.8 41.7
Valuations
P/E (x)
7.0
7.4
P/BV (x)
0.8
0.8
EV/EBITDA(x)
8.1
8.2
Div. Yield (%)
3.2
5.7
FCF Yield (%)
6.8 20.8
2022E
1,269
410.8
161.7
32.4
16.3
24.0
135.2
1.4
12.5
7.6
42.8
5.9
0.7
6.9
7.2
23.7
Shareholding pattern (%)
As On
Mar-20 Dec-19 Mar-19
Promoter
51.0
54.1
56.1
DII
33.6
30.6
29.1
FII
12.6
12.8
11.5
Others
2.8
2.5
3.4
FII Includes depository receipts
;
Aniket Mittal – Research Analyst
(Aniket.Mittal@MotilalOswal.com); +91 22 6129 1572
13 February 2020
1
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
 Motilal Oswal Financial Services
NTPC
Quarterly Performance (standalone) – INR b
Y/E March
Sales
Change (%)
EBITDA
Other income
PBT
Tax
PAT
Change (%)
Adj. PAT (excl. FC u/r)
Change (%)
1Q
228.6
13.7
61.1
1.4
31.7
5.8
25.9
-1.1
29.6
16.6
FY19
2Q
3Q
226.3 238.1
14.0
14.9
59.6
62.7
2.2
1.9
30.0
31.8
5.8
7.9
24.3
23.9
-0.5
1.0
27.9
25.5
3.2
-2.9
4Q
224.6
-4.0
58.8
13.2
47.8
4.3
43.5
48.7
31.7
13.3
1Q
247.0
8.0
69.6
3.3
36.7
10.7
26.0
0.6
26.8
-9.3
FY20
2Q
3Q
236.3 250.9
4.4
5.4
72.1
85.7
8.9
5.3
43.7
50.2
11.0
20.3
32.6
30.0
34.5
25.6
34.7
29.0
24.5
13.6
4Q
291.0
29.6
91.7
10.3
62.4
49.8
12.5
-71.2
33.0
3.9
FY19
940.8
265.5
18.7
164.5
47.0
117.5
13.6
114.7
-99.9
FY20E
1,025.3
319.2
27.8
192.9
91.8
101.1
-13.9
123.5
7.6
FY20
4QE
178.3
-20.6
57.1
6.0
28.3
-4.4
32.7
-24.8
30.4
-4.2
var.
(%)
63
61
73
120
-62
8
Source: MOFSL, Company
Exhibit 1: Key Operating Parameters
Capacity
Installed
Commercial
Regulated Equity
Generation
Gross
Electricity sales
Availability
Coal
Gas
PLF
Coal
Gas
Fuel
Coal Received
o/w imported
% imported
Gas received
Per unit
Realization
Fuel cost
Fixed charge
1Q
GW
GW
INR b
b kWh
b kWh
%
%
%
%
mt
mt
%
mmscmd
INR/kWh
INR/kWh
INR/kWh
53.7
51.4
509.2
69
65
85.9
83.9
78.0
23.1
43.1
0.1
0.2
4.7
3.62
2.14
1.48
FY19
2Q
53.7
52.2
519.9
66
62
84.3
94.9
72.6
17.9
40.0
0.1
0.3
4.0
3.72
2.19
1.54
3Q
53.2
51.7
521.1
70
65
85.3
94.9
77.7
24.9
45.3
0.2
0.4
5.7
3.64
2.30
1.34
4Q
55.1
52.9
539.9
69
64
92.4
95.6
77.6
18.5
47.6
0.7
1.4
4.1
3.92
2.24
1.67
1Q
55.1
54.3
531.2
68
64
91.1
90.4
73.9
20.6
43.2
0.9
2.1
4.5
3.89
2.30
1.59
FY20
2Q
57.1
55.0
532.6
62
57
84.1
93.3
64.3
13.1
36.0
0.6
1.7
3.1
4.20
2.37
1.82
3Q
58.2
56.4
565.7
61
56
88.3
98.8
63.5
10.4
44.0
0.7
1.5
2.4
4Q
62.1
61.1
618.1
68
63
94.3
92.6
69.5
12.3
49.1
0.7
1.4
2.8
4.38
4.66
2.32
2.38
2.06
2.29
Source: MOFSL, Company
Exhibit 2: NTPC Valuation
Rf. Nominal risk-free rate
B. Beta
Km. Equity Risk premium
Cost of equity (Rf+Km x B)
DCFE
A. FY21-24
RoE
(%)
12.00
11.50
Re-Invst
(%)
30
25
Growth
(%)
3.6
2.9
Case 1
(%)
(%)
(%)
INR m
246,796
6.50
0.85
5.00
10.75
INR/sh.
25
(%)
(%)
(%)
INR m
243,838
Base
7.00
0.85
5.00
11.25
INR/sh.
25
(%)
(%)
(%)
INR m
240,935
Case 2
7.50
0.85
5.00
11.75
INR/sh.
24
B. FY25-32
C. Terminal Value
Target price (A+B+C)
594,775
692,792
60
70
155
572,256
614,380
58
62
145
56
55
135
Source: MOFSL, Company
550,757
546,935
28 June 2020
2
 Motilal Oswal Financial Services
NTPC
Conference call takeaways
Capex and capitalization:
Capex for NTPC stood at INR240b for FY20. Capital outlay for FY21 is estimated
at INR210b.
The co. targets ~5.9GW for commercialization in FY21. However, the company
has witnessed issues related to manpower deployment, which could hamper
execution. However, the company is confident of achieving at least 4.5GW. It
has set a commercialization target of 5.7GW for FY22.
Under-recoveries:
The co. witnessed FC under-recoveries of INR2.5b for FY20.
One-offs:
During the quarter, NTPC reported one-offs of INR21.5b. This includes an
INR8.9b net impact on tax under the Vivad se Vishwas scheme.
Overdues:
Overdues for the company have risen and currently stand at INR180b v/s
INR96b at the end of FY20.
Renewables:
The co. further plans to increase its footprint in the Renewable space. ~2.3GW
solar projects are under implementation for the co., and it has awarded ~2.1GW
projects on an EPC basis.
Flue-gas desulfurization:
The company plans to install flue-gas desulfurization (FGD) at 64.9GW. Of this,
920MW has been commissioned. 56.7GW has already been awarded, while the
remaining ~7GW is under various types of tendering.
Valuation and view
Commercialization picks up pace
NTPC commercialized 5.3GW of plants in FY20, the highest ever in a single fiscal
year. While extended lockdown at the country level could impact upcoming
commercialization plans, we note that even if we assume no incremental
commercialization, the full benefit of recent additions should aid FY21 PAT by
INR9–10b (6–7% of FY20 adj. PAT).
Moreover, upcoming capacities are incremental units of plants commercialized
in FY19/FY20, and most resources have been mobilized. NTPC targets ~5.9GW
for commercialization in FY21. Furthermore, while issues related to manpower
deployment could hamper execution, the company is confident of achieving at
least 4.5GW. We remain conservative and build-in commercialization of 3.6GW
in FY21.
Fixed cost under-recoveries to decline
Muted power demand, coupled with production ramp-up at Coal India’s mines,
has led to an increase in coal stocks at power plants. This bodes well for NTPC
and reduces FC u/r. In 1H, availability at NTPC’s plants was impacted by
3
28 June 2020
 Motilal Oswal Financial Services
NTPC
production issues at Coal India’s mines (Talcher, Korba coal fields). However,
production at these mines has improved, leading to recovery in coal stocks at
these plants.
For FY20, FC u/r stood at ~INR2.5b (v/s INR8b in FY19). Given the essential
nature of the Power Generation business, the movement of coal through rail or
road has not been an issue in the current situation. In fact, the current low
demand scenario provides an opportunity to cushion itself from any coal-related
supply shocks in the near future. We expect FC under-recoveries to remain low.
Regulations lend visibility up to FY24
Tariff regulations for FY20–24 have kept regulated RoE unchanged at 15.5%; this
marks the third consecutive five-year period wherein regulators have not
tinkered with regulated RoE.
Besides this, the two-part tariff structure was also retained. This provides strong
direction for long-term assured returns.
RoE to improve as capitalization outpaces capex
With the pickup in capitalization, which was partly hampered due to coal
availability issues, we expect a regulated equity CAGR of ~12% over FY20–23.
We expect capitalization to outpace capex, which, along with lower u/r, would
improve RoE by ~120bps to ~13% by FY23. Earnings in FY21, though, could
witness a drop due to the announcement of an INR15.9b rebate. However, this
is a one-off in nature, attributed to the disruption caused by COVID-19. The
company would offer the rebate in its bills for 1QFY21.
28 June 2020
4
 Motilal Oswal Financial Services
NTPC
Story in charts
Exhibit 3: New regulations lend visibility to earnings…
Normative RoEs
Exhibit 4: …and the pace of commercialization has picked
up…
NTPC - Net Commercial adds (GW)
5.3
4.1
3.6
1.5
4.7
15.5%
14.0%
15.5%
15.5%
1.9
FY05-09
FY10-14
FY15-19
FY20-24
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 5: …while fixed cost u/r are declining…
14.3
NTPC - FC u/r (INR b)
Exhibit 6: …overall, earnings would witness a 10% CAGR
Consol Adj. PAT (INR b)
10% CAGR
162
182
8.0
3.0
2.5
88
2.0
2.0
137
115
130
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 7: Capitalization would outpace capex…
INR b
Capex
Capitalization
358
218
210
294
188
198
208
191
155
112
459
Exhibit 8: …leading to improvement in RoE
RoE (%)
10.0
11.3
10.6
10.7
11.9
10.7
12.5
13.2
314
189
95
192
83
232
243
194 182
8.7
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 9: Dividend yield remain attractive
DPS
5.5
3.9
3.7
3.6
5.4
3.2
3.2
5.5
7.0
Div. Yield (%)
5.7
7.2
Exhibit 10: The stock trades at the lower end of its historical
val.
P/B (x)
Avg (x)
Max (x)
3.0
Min (x)
+1SD
-1SD
2.5
2.0
1.0
1.0
1.8
1.4
0.7
3.8
0.0
0.7
Source: MOFSL, Company
Source: MOFSL, Bloomberg
28 June 2020
5
 Motilal Oswal Financial Services
NTPC
Financials and valuations
Income Statement
Y/E Mar
Net Sales
Change (%)
EBITDA
EBITDA Margin (%)
Depreciation
EBIT
Interest
Other Income
Extraordinary items
PBT
Tax
Tax Rate (%)
Min. Int. & Assoc. Share
Reported PAT
Adjusted PAT
Change (%)
2015
806,220
2.1
171,941
21.3
55,646
116,295
35,704
20,789
3,182
104,562
4,638
4.4
99,924
84,414
-7.9
2015
82,455
738,485
820,940
8,879
1,022,520
12,656
1,864,995
1,443,608
525,077
918,530
675,547
141
601,543
79,725
92,499
161,390
190,883
77,046
330,766
71,076
259,690
270,777
1,864,995
2016
727,055
-9.8
179,569
24.7
52,240
127,329
33,137
10,576
0
104,768
-1,628
-1.6
1,412
108,012
96,957
14.9
2016
82,455
809,511
891,965
8,928
1,120,194
14,094
2,035,181
1,632,140
587,180
1,044,959
815,497
148
543,886
79,592
101,740
57,370
202,075
103,110
369,310
68,266
301,044
174,577
2,035,181
2017
817,171
12.4
218,300
26.7
60,099
158,201
36,511
9,668
0
131,358
30,467
23.2
6,247
107,196
98,717
1.8
2017
82,455
895,926
978,380
8,033
1,137,551
14,849
2,138,812
1,170,879
125,562
1,045,317
868,957
78,023
492,677
65,861
89,995
33,015
6,133
297,674
346,162
55,859
290,303
146,515
2,138,812
2018
877,622
7.4
229,808
26.2
74,599
155,209
44,346
15,583
0
126,446
25,881
20.5
4,451
105,440
87,992
-10.9
2018
82,455
953,180
1,035,635
9,478
1,300,143
24,081
2,369,337
1,501,531
206,147
1,295,385
820,931
92,515
534,851
61,403
88,122
43,876
6,931
334,519
374,344
67,309
307,035
160,507
2,369,337
2019
906,369
3.3
199,086
22.0
76,881
122,205
52,609
17,953
0
87,550
-32,064
-36.6
6,721
126,400
114,614
30.3
2019
98,946
1,001,424
1,100,370
6,648
1,616,818
41,997
2,765,833
1,665,811
287,597
1,378,214
1,067,775
81,000
646,976
81,194
101,477
27,823
6,727
429,755
408,131
85,658
322,473
238,845
2,765,833
2020
1,143,361
26.1
364,086
31.8
103,562
260,524
81,169
29,085
0
208,441
93,475
44.8
4,054
116,002
136,609
19.2
2020
98,946
1,089,446
1,188,392
33,172
2,004,706
76,171
3,302,440
2,269,186
391,159
1,878,028
985,085
93,066
817,693
111,385
203,708
32,143
7,638
462,819
471,431
101,767
369,664
346,262
3,302,440
2021E
1,094,299
-4.3
351,855
32.2
114,424
237,431
100,859
22,599
0
159,171
38,138
24.0
12,403
130,419
130,419
-4.5
2021E
98,946
1,156,622
1,255,567
33,172
2,019,289
76,171
3,384,200
2,478,935
505,583
1,973,352
966,776
98,923
815,364
101,115
145,114
98,678
7,638
462,819
470,215
100,551
369,664
345,149
3,384,200
2022E
1,269,137
16.0
410,841
32.4
127,637
283,204
110,228
20,012
0
192,988
45,375
23.5
17,149
161,745
161,745
24.0
2022E
98,946
1,238,743
1,337,689
33,172
1,979,884
76,171
3,426,916
2,938,058
633,220
2,304,838
662,271
100,679
837,374
109,133
142,952
114,832
7,638
462,819
478,245
108,581
369,664
359,129
3,426,916
(INR m)
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Minority Interest
Loans
Deferred Tax Liability
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Investments
Current Assets
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Others
Current Liabilities
Payables
Other current liabilities
Net Working Capital
Application of Funds
(INR m)
28 June 2020
6
 Motilal Oswal Financial Services
NTPC
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/EBITDA
Dividend Yield (%)
Return Ratios (%)
EBITDA Margins (%)
Net Profit Margins (%)
RoE
RoIC (Post-tax)
RoCE (Post-tax)
Working Capital Ratios
Debtor (Days)
Inventory (Days)
Payable (Days)
2015
8.5
15.7
83.0
4.6
53.9
14.2
7.7
1.5
12.0
3.8
21.3
12.4
10.0
11.2
7.4
42
36
32
2016
9.8
16.2
90.1
2.7
27.3
11.1
6.7
1.2
11.9
2.5
24.7
14.9
11.3
11.8
7.2
51
40
34
2017
10.0
16.9
98.9
3.8
38.3
9.7
5.7
1.0
9.5
3.9
26.7
13.1
10.6
10.5
6.6
40
29
25
2018
8.9
18.2
104.7
3.6
40.5
10.9
5.3
0.9
9.6
3.7
26.2
12.0
8.7
9.6
6.4
37
26
28
2019
11.6
20.5
111.2
5.4
46.3
8.4
4.7
0.9
12.8
5.5
22.0
13.9
10.7
11.1
6.7
41
33
34
2020
13.8
22.2
120.1
3.2
22.8
7.0
4.4
0.8
8.1
3.2
31.8
10.1
11.9
7.6
6.5
65
36
32
2021E
13.2
24.7
126.9
5.5
41.7
7.4
3.9
0.8
8.2
5.7
32.2
11.9
10.7
8.2
6.6
48
34
34
2022E
16.3
29.2
135.2
7.0
42.8
5.9
3.3
0.7
6.9
7.2
32.4
12.7
12.5
9.1
7.6
41
31
31
Cash Flow Statement
Y/E March
Profit/(Loss) before Tax
Interest
Depreciation
(Inc)/Dec in WC
Tax paid
others
CF from Operations
Capex
(Pur)/sale of Invest.
Acquisition in subs.
Int. & Div. Income
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
finance cost
Dividend (incl. tax)
Others
CF from Fin. Activity
Inc/Dec of Cash
Add: Beginning Balance
Closing Balance
2015
104,562
35,286
55,646
-11,694
-20,100
-16,242
147,459
-191,772
16,391
0
17,037
145
-158,200
205,811
-72,371
2016
101,035
41,090
61,534
-36,422
-14,584
1,452
154,106
-232,470
16,536
0
9,528
-16,514
-222,920
80,528
-83,473
2017
137,606
35,691
60,099
-2,073
-26,263
-3,395
201,666
-243,451
3,436
-12,002
2,707
-8,262
-257,573
150,466
-75,645
2018
132,417
44,160
74,599
-58,298
19,257
-15,508
196,627
-187,559
0
-11,531
3,033
-42
-196,099
145,059
-86,058
2019
83,719
52,431
76,881
-72,868
-30,390
53,898
163,671
-197,548
0
-40,574
1,079
343
-236,700
224,698
-107,672
2020
222,816
80,606
103,562
-63,198
-36,069
-61,885
245,832
-180,625
0
-122,650
58
344
-302,873
232,572
-133,992
-37,751
-787
60,043
3,002
27,823
30,825
2021E
168,556
100,859
114,424
67,648
-38,138
-22,599
390,751
-191,440
-5,857
22,599
-174,697
14,584
-100,859
-54,420
-140,696
75,358
30,825
106,183
2022E
207,120
110,228
127,637
2,174
-45,375
-20,012
381,772
-154,617
-1,756
20,012
(INR m)
-136,361
-39,405
-110,228
-69,262
-218,895
26,516
106,183
132,699
-148,385
200
-14,745
-25,486
186,876
161,390
-33,513
1,252
-35,206
-104,021
161,390
57,369
-43,269
0
31,552
-24,355
57,369
33,015
-48,669
0
10,333
10,861
33,015
43,876
-59,272
-778
56,976
-16,053
43,876
27,823
28 June 2020
7
 Motilal Oswal Financial Services
NTPC
NOTES
28 June 2020
8
 Motilal Oswal Financial Services
NTPC
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
********************************************************************************************************************************
28 June 2020
9
 Motilal Oswal Financial Services
NTPC
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.
28 June 2020
10