26 May 2022
4QFY22 Results Update | Sector: Metals
Nalco
Estimate changes
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Financials & Valuations (INR b)
Y/E March
2022 2023E
Sales
141.8 134.4
EBITDA
45.2
39.4
NP
29.5
25.7
Adj. EPS (INR)
16.1
14.0
EPS Gr(%)
197
-13
BV/Sh. (INR)
68.3
75.4
RoE (%)
25.4
19.5
RoCE (%)
31.7
24.7
Payout (%)
18.7
50.0
Shareholding pattern (%)
As On
Mar-22 Dec-21
Promoter
51.3
51.3
DII
8.8
10.4
FII
18.0
13.3
Others
21.9
25.0
FII Includes depository receipts
NACL IN
1,837
172 / 2.2
133 / 65
-9/5/23
3323
CMP: INR94
TP: INR110 (+17%)
Buy
EBITDA beat driven by a marginal revenue beat
NACL reported net sales of INR43b, up 54% YoY and 15% QoQ, driven by
higher LME aluminum prices, which rose 56% YoY and 18% QoQ to
USD3,273/t in 4QFY22. Alumina prices stood at USD411/t in 4QFY22, up
37% YoY, but down 1% QoQ. Revenue was in line at INR42b.
EBITDA grew 72% YoY and 36% QoQ to INR16b in 4QFY22. EBITDA growth
was mainly driven by LME prices. EBITDA stood ~INR2b, higher than our
estimate of INR14b. The EBITDA beat was largely on account of the INR2b
revenue beat, as total expense was in line.
PAT grew 63% YoY and 23% QoQ to INR10b in 4QFY22. It took an
impairment charge of INR2.4b in 4QFY22 on two of its wind Power plants
that were operating without PPAs for the past three years.
The company reported a revenue/EBITDA/PAT of INR142b/INR45b/ INR30b
in FY22, up 58%/153%/197% YoY.
2024E
118.3
29.8
18.4
10.0
-28
80.4
12.9
16.3
49.9
Record profit driven by record LME prices
Mar-21
51.3
9.6
8.4
30.7
All time high net profit and revenue in FY22 was driven by all-time high
aluminum average price of USD2768/t for the year. The company also
operated its aluminum smelter at its name plate capacity of 0.46mt for the
first time which contributed to the record annual profit.
The initial assumption of a ban on aluminum from Russia, due to the war
with Ukraine, did not materialize. As a result, aluminum prices on the LME,
which had shot up to over USD3,985/t, retreated to the levels before the
start of the war. Similarly, alumina production also improved and prices
corrected from the highs of USD505/t to USD364/t at present.
Valuation and view
The company has been allocated two coal mines – Utkal D and E, with a
total EC limit of 4mt at its peak. It plans to start mining from FY24, which
will eventually improve its cost of production.
With no disruption in alumina supplies from China and Rusal operating
without any embargo, we expect alumina prices to hover around current
levels. However, a restart of several aluminum capacities in China will
prevent any steep correction. We have reduced our FY23 aluminum
estimate by 3% and our FY23/FY24 estimate by 7%/16% to factor in rising
alumina supplies.
We maintain our Buy rating on NACL with a revised TP of INR110, based on
4x FY23E EV/EBITDA.
Vishal Chandak – Research analyst (vishal.chandak@motilaloswal.com)
Raval Mistry – Research analyst
(raval.mistry@motilaloswal.com)
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
Nalco
Quarterly performance (INR m)
Y/E March
Net Sales
Change (YoY %)
Change (QoQ %)
EBITDA
Change (YoY %)
Change (QoQ %)
Alumina – EBITDA (USD/t)
Aluminum – EBITDA (USD/t)
As % of Net Sales
Interest
Depreciation
Other Income
PBT (before EO Item)
Extra-ordinary Income
PBT (after EO Item)
Total Tax
Tax (%)
Reported PAT
Adjusted PAT
Change (YoY %)
Change (QoQ %)
1Q
13,806
-33.8
-28.7
1,291
-39.8
-38.1
38
120
9.3
18
1,359
333
247
0
247
80
32.6
166
166
-83.0
-83.8
FY21
FY22
FY21
FY22
2Q
3Q
4Q
1Q
2Q
3Q
4Q
23,749 23,788 28,215 24,746 35,922 37,733 43,408 89,558 1,41,808
0.5
13.9
45.7
79.2
51.3
58.6
53.8
5.7
58.3
72.0
0.2
18.6 -12.3
45.2
5.0
15.0
2,759 4,339 9,440 5,808 11,273 11,905 16,186 17,828 45,172
757.8 1,163.5 353.0 350.0 308.6 174.4
71.5 264.4
153.4
113.7
57.3 117.6 -38.5
94.1
5.6
36.0
69
85
120
69
120
176
157
83
133
141
287
744
650
902
862 1,365
336
955
11.6
18.2
33.5
23.5
31.4
31.6
37.3
19.9
31.9
18
17
17
18
18
19
176
71
231
1,432 1,697 1,571 1,491 1,518 1,515 3,842 6,058
8,366
242
362
530
317
424
720 1,513 1,466
2,974
1,550 2,986 8,382 4,616 10,161 11,091 13,681 13,165 39,549
0
0
0
0
0
0
0
0
0
1,550 2,986 8,382 4,616 10,161 11,091 13,681 13,165 39,549
476
588
-974 1,139 2,684 2,783 3,424
170 10,029
30.7
19.7 -11.6
24.7
26.4
25.1
25.0
1.3
25.4
1,075 2,398 9,356 3,477 7,477 8,309 10,257 12,995 29,520
1,075 2,398 6,287 3,477 7,477 8,309 10,257 9,926 29,520
NA
NA
NA
NA
NA 246.5
63.2 618.0
197.4
546.1 123.2 162.2 -44.7 115.0
11.1
23.4
FY22E
4QE
41,458
46.9
9.9
13,962
48
17
121
1,212
33.7
19
1,507
662
13,098
0
13,098
3,356
25.6
9,742
9,742
55.0
17.2
Var.
(%)
5
16
155
128
4
4
2
5
5
Exhibit 1:
Segmental performance
1Q
7,685
9,306
415
470
5
5
FY21
2Q
3Q
9,767
9,875
17,527 16,364
1,185
1,799
732
1,582
12
18
4
10
4Q
12,177
19,438
2,959
5,892
24
30
1Q
10,680
17,379
1,198
3,999
11
23
FY22
2Q
3Q
12,760 15,651
26,349 25,153
2,526
4,202
7,879
7,483
20
27
30
30
FY21
FY22
4Q
14,683 39,505
53,775
32,692 62,635
1,01,573
3,349
6,358
11,274
13,212
8,677
32,572
23
16
21
40
14
32
Source: MOFSL, Company
Chemicals revenue
Aluminum revenue
Chemicals EBIT
Aluminum EBIT
Chemicals EBIT margin (%)
Aluminum EBIT margin (%)
Exhibit 2: Upcoming Alumina refineries outside China
Country
India
India
Malaysia
UAE
India
India
Greece
Jamaica
Egypt
UAE
Indonesia
Laos
Indonesia
Company
Vedanta
Penna/RAKIA
Bosai
EGA
Nalco
Hindalco
Mytilineos
JISCO
Jinjiang
East Hope
Inalum/Antam
Slaco
Jinjiang
Refinery
Lanjigarh
Anrak
Kuantan
Al Taweelah II
Damanjodi
Rayagada
Distomon
Alpart
Unknown
KIZAD
Mempawah, WK
Paksong
West Kalimantan
Capacity (mtpa)
3.0
1.5
2.0
2.0
1.0
2.0
0.9
2.0
1.0
2.0
2.0
1.0
1.0
Type
Brownfield
Greenfield
Greenfield
Brownfield
Brownfield
Greenfield
Brownfield
Brownfield/Greenfield
Greenfield
Greenfield
Greenfield
Greenfield
Greenfield
Likelihood?
1.5mtpa by CY23-end and another 1.5mtpa by
CY24-end
Built in CY14, started in CY22
Beyond CY27
Beyond CY27
Possible
Possible
Possible
Possible
Possible
Possible
Possible
Unlikely
Unlikely
Source: MOFSL, Industry Data
26 May 2022
2
 Motilal Oswal Financial Services
Nalco
Exhibit 3: Alumina realization (USD/t)
Exhibit 4: Aluminum realization (USD/t) and LME prices
Aluminium (USD/t)
4,000
3,000
2,000
1,000
0
LME Aluminum (USD/t)
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 5: Aluminum (INR m) EBIT ballooned
Exhibit 6: Alumina EBIT (INR m) grows substantially
Source: MOFSL, Company
Source: MOFSL, Company
Record high aluminum prices, unlikely to repeat in the near term
Aluminum prices for FY22 were at a record high, driven by: a) Russia-Ukraine
war, and b) consequent rise in energy prices in Europe, which led to the idling of
several smelters, thus impacting the aluminum metal balance.
However, with a potential ban on aluminum produced in Russia not
materializing, aluminum prices corrected from record highs reported in Mar’22.
The Chinese slowdown could result in an Infra growth driven stimulus
Slowdown in China due to zero COVID strategy (ZCS) adopted by the Chinese
government has resulted in disruption in the global supply chain and also in the
demand supply balance of several commodities.
This short-term mismatch has resulted in a correction in commodities prices,
including alumina and aluminum.
However, it is likely that China may resort to its tried and tested way of boosting
its slowing economy through an Infrastructure-driven stimulus. This could revive
the fortunes of commodities. We believe China is likely to announce a stimulus
once COVID is under control.
In the meanwhile, China has been announcing several measures targeted at
boosting overall economic growth, the latest being relaxation norms for second
house ownership, reduction in the five-year lending rate.
26 May 2022
3
 Motilal Oswal Financial Services
Nalco
Impairment of wind Power assets
The company announced that it has impaired two of its wind Power assets in
the absence of long-term PPAs.
It is difficult to fathom when at times like these, when there is an acute shortage
of power, the company, which is operating two wind Power plants of capacities
of 47.6MW and 50MW in Rajasthan, has not been able to secure a long/short
term PPA.
These Power plants have been operating in the absence of a PPA since 1
st
Mar’19.
The total capex on these two wind Power plants is INR6.2b and the carrying cost
in the books is currently INR4.3b. The company has decided to impair 55% of the
carrying value of these assets when securing power is so difficult.
The Rajasthan Renewable Energy Corporation (RRECL) has offered NACL a tariff
of INR2.44/kwh which the company has not accepted, and rightly so given the
acute power shortage. NACL has filed an appeal in the High Court of Rajasthan
for execution of PPA as it has been regularly supplying power to the grid.
Exhibit 7: Valuation and target price
Target price calculations
Aluminum
Shipments
EBITDA
EBITDA
Alumina
Shipments
EBITDA
EBITDA
Total EBITDA
EV/EBITDA (x)
Target EV
Add: Growth CWIP at 75%
Add: cash surplus
Equity value
Share count
Target price
UoM
kt
INR/t
INR m
kt
INR/t
INR m
INR m
x
INR m
INR m
INR m
INR m
m
INR/share
FY23E
439
81606
35825
1269
2812
3569
39,394
4.0
1,57,575
20,311
28,014
2,05,900
1,837
110
Source: MOFSL
Exhibit 8: Summary of assumptions and key changes to our estimates
UoM
USD:INR
Production
Alumina
Aluminum
Sales
Alumina
Aluminum
Assumption
LME Aluminum
Alumina
Revenue
EBITDA
PAT
Old
76.4
2,163
454
1,301
440
3,000
372
143
50
34
FY23E
New
75.6
2,132
454
1,269
439
2,900
346
134
39
26
Change
-1%
-1%
0%
-2%
0%
-3%
-7%
-6%
-21%
-24%
Old
78.3
2,185
462
1,307
440
2,400
372
128
40
26
FY24E
New
76.8
2,164
462
1,286
439
Change
-2%
-1%
0%
-2%
0%
kt
kt
kt
kt
USD/t
USD/t
INR b
"
"
2,400
0%
312
-16%
118
-7%
30
-25%
18
-30%
Source: MOFSL, Company
26 May 2022
4
 Motilal Oswal Financial Services
Nalco
Exhibit 9: Global comparable valuation
M-cap
Company
Hindalco*
Nalco*
Alcoa
Norsk Hydro
CHALCO
RUSAL
Alumina
USD m
11,499
2,220
11,116
15,657
11,440
6,639
3,379
CY21/
FY22
6.4
5.8
5.0
6.3
6.5
2.2
9.1
P/E (x)
CY22/
FY23
5.6
6.7
5.6
7.2
6.1
2.2
9.9
CY23/
FY24
6.7
9.4
6.1
8.1
5.5
NA
10.5
EV/EBITDA (x)
CY21/
FY22
4.6
3.0
2.7
3.6
6.0
2.3
7.8
P/B (x)
RoE (%)
CY22/ CY23/ CY21/ CY22/ CY23/ CY21/ CY22/ CY23/
FY23
FY24
FY22
FY23
FY24
FY22
FY23
FY24
3.7
4.2
1.6
1.3
1.1
27.5
24.9
17.3
3.7
5.1
1.4
1.2
1.2
25.4
19.5
12.9
2.5
2.7
1.8
1.4
1.3
37.9
23.4
15.3
3.9
4.0
1.5
1.4
1.4
25.1
19.6
16.7
5.2
5.0
0.8
0.7
0.6
13.1
12.2
11.4
NA
NA
0.6
0.5
NA
24.9
24.3
NA
8.6
7.2
1.9
1.9
2.0
21.3
18.2
17.3
Source: MOFSL, Company, Bloomberg. (*) denotes MOFSL estimates
26 May 2022
5
 Motilal Oswal Financial Services
Nalco
Financials and valuations
Income Statement
Y/E March
Net Sales
Change (%)
Total Expenses
EBITDA
% of Net Sales
Depn. & Amortization
EBIT
Net Interest
Other income
PBT before EO
EO income
PBT after EO
Tax
Rate (%)
Reported PAT
Adjusted PAT
Change (%)
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Total Loans
Deferred Tax Liability
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Investments
Curr. Assets
Inventories
Account Receivables
Cash and Bank Balance
Others
Curr. Liability and Prov.
Account Payables
Provisions and Others
Net Curr. Assets
Appl. of Funds
FY16
68,170
58,575
9,595
14.1
4,261
5,333
33
6,052
11,353
-535
10,818
4,015
37.1
6,803
7,139
2.6
FY17
75,430
10.7
64,634
10,797
14.3
4,804
5,993
27
4,075
10,041
402
10,442
2,962
28.4
7,480
7,193
0.8
FY18
95,094
26.1
78,311
16,783
17.6
4,804
11,979
20
3,008
14,968
5,421
20,388
6,964
34.2
13,424
9,855
37.0
FY19
1,14,993
20.9
85,432
29,561
25.7
4,761
24,800
24
3,259
28,035
-636
27,399
10,075
36.8
17,324
17,726
79.9
FY20
84,718
-26.3
79,826
4,892
5.8
5,298
-406
57
2,726
2,262
0
2,262
880
38.9
1,382
1,382
-92.2
FY21
89,558
5.7
71,730
17,828
19.9
6,058
11,770
71
1,466
13,165
0
13,165
170
1.3
12,995
9,926
618.0
FY22
1,41,808
58.3
96,637
45,172
31.9
8,366
36,806
231
2,974
39,549
0
39,549
10,029
25.4
29,520
29,520
197.4
FY23E
1,34,378
-5.2
94,985
39,394
29.3
6,159
33,234
479
1,800
34,555
0
34,555
8,855
25.6
25,700
25,700
-12.9
(INR m)
FY24E
1,18,285
-12.0
88,498
29,787
25.2
6,283
23,505
494
1,700
24,711
0
24,711
6,332
25.6
18,378
18,378
-28.5
(INR m)
FY24E
9,183
1,38,380
1,47,563
4,707
8,682
1,60,951
1,23,452
50,462
72,990
60,348
3,110
61,002
16,203
1,944
23,904
18,950
36,499
12,963
23,536
24,503
1,60,951
FY16
12,886
1,19,063
1,31,949
0
11,641
1,43,590
70,210
4,253
65,957
6,877
9,445
84,825
10,550
2,352
51,692
20,231
23,513
6,559
16,955
61,311
1,43,590
FY17
9,665
92,387
1,02,052
511
12,456
1,15,018
80,489
9,044
71,444
5,660
389
67,517
11,559
1,843
35,084
19,031
29,992
8,641
21,351
37,525
1,15,018
FY18
9,665
95,384
1,05,048
450
11,515
1,17,013
85,022
13,627
71,395
9,152
1,176
64,415
11,941
2,581
33,619
16,274
29,126
9,774
19,352
35,290
1,17,013
FY19
9,328
95,517
1,04,845
668
11,307
1,16,820
91,155
18,297
72,858
8,827
1,758
68,027
12,100
2,405
35,772
17,750
34,650
13,069
21,581
33,377
1,16,820
FY20
9,328
90,553
99,881
123
10,606
1,10,610
98,443
23,595
74,848
14,267
2,773
53,609
16,969
1,401
20,355
14,884
34,886
7,956
26,930
18,723
1,10,610
FY21
9,183
97,624
1,06,807
461
8,937
1,16,205
1,06,258
29,654
76,605
15,755
3,133
51,614
14,763
1,474
19,982
15,396
30,900
9,772
21,128
20,714
1,16,206
FY22
9,183
1,16,341
1,25,524
207
8,682
1,34,412
1,11,452
38,019
73,432
22,348
3,110
73,865
16,462
753
37,701
18,950
38,343
14,807
23,536
35,522
1,34,412
FY23E
9,183
1,29,185
1,38,368
2,207
8,682
1,49,256
1,17,452
44,179
73,273
41,348
3,110
69,788
18,408
2,209
30,221
18,950
38,262
14,726
23,536
31,525
1,49,256
26 May 2022
6
 Motilal Oswal Financial Services
Nalco
Financials and valuations
Cash Flow Statement
Y/E March
Pre-tax profit
Depreciation
(Inc.)/Dec. in Wkg. Cap.
Tax paid
Others
CF from Op. Activity
(Inc.)/Dec. in FA + CWIP
Free Cash Flow to the firm
(Pur.)/Sale of Investments
Interest and div.
CF from Inv. Activity
Equity raised/(repaid)
Int. Paid
Debt raised/(repaid)
Dividend (incl. tax)
CF from Fin. Activity
(Inc.)/Dec. in Cash
Add: Opening Balance
Closing Balance
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 (%)
Return Ratios (%)
EBITDA Margin (%)
Net Profit Margin (%)
RoE
RoCE (pre-tax)
RoIC (pre-tax)
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Debtor (Days)
Inventory (Days)
Payable (Days)
Leverage Ratio (x)
Current Ratio
FY16
11,887
4,261
-11
-3,598
-3,732
8,808
-5,986
2,822
-8,555
4,769
-9,772
0
-12
0
-5,428
-5,440
-6,404
58,095
51,692
FY16
3.7
5.7
68.3
2.0
79.8
25.4
16.4
1.4
1.8
12.5
2.1
14.1
10.5
6.2
8.0
7.1
1.0
0.5
13
56
35
3.6
FY17
9,639
4,804
1,217
-2,184
884
14,359
-7,781
6,578
10,178
2,795
5,191
-28,407
-4
511
-8,259
-36,159
-16,608
51,692
35,084
FY17
3.7
6.4
52.8
2.8
110.4
25.2
14.7
1.8
1.9
13.5
3.0
14.3
9.5
7.2
7.9
8.0
0.9
0.7
9
56
42
2.3
FY18
20,388
4,804
-178
-4,825
-5,524
14,666
-8,374
6,292
1,718
1,522
-5,134
0
-1
-61
-10,934
-10,997
-1,465
35,084
33,619
FY18
5.1
9.4
54.3
4.7
81.5
18.4
9.9
1.7
1.5
8.7
5.0
17.6
10.4
9.5
12.9
16.3
1.1
0.8
10
46
38
2.2
FY19
27,399
4,761
3,274
-10,209
-447
24,779
-7,680
17,099
1,272
1,089
-5,319
-5,074
0
218
-12,451
-17,308
2,153
33,619
35,772
FY19
9.5
11.8
56.2
4.5
84.9
9.9
7.9
1.7
1.2
4.7
4.8
25.7
15.4
17.2
24.0
34.6
1.3
1.0
8
38
41
2.0
FY20
2,262
5,298
-9,071
-1,005
-971
-3,486
-8,578
-12,064
2,068
1,353
-5,158
0
-9
-579
-6,185
-6,773
-15,416
35,772
20,355
FY20
0.7
3.6
53.5
2.8
441.7
126.4
26.2
1.7
1.8
31.0
2.9
5.8
1.6
1.4
2.0
-0.6
0.9
0.8
6
73
34
1.5
FY21
12,995
6,058
3,819
-975
93
21,990
-12,188
9,802
-4,835
662
-16,361
-1,701
-33
338
-4,606
-6,002
-374
20,355
19,982
FY21
5.4
10.4
58.2
2.5
35.3
17.3
9.0
1.6
1.7
8.4
2.7
19.9
11.1
9.7
11.7
15.6
0.8
0.8
6
60
40
1.7
FY22
29,514
8,366
3,942
-7,555
5,316
39,584
-12,829
26,755
26
2,336
-10,466
0
-124
-254
-11,020
-11,398
17,719
19,982
37,700
FY22
16.1
20.6
68.3
3.0
18.7
5.8
4.5
1.4
0.9
2.9
3.2
31.9
20.8
25.4
31.7
49.5
1.3
1.1
2
42
38
1.9
FY23E
34,555
6,159
-3,483
-8,855
479
28,855
-25,000
3,855
0
-25,000
0
-479
2,000
-12,856
-11,335
-7,480
37,701
30,221
FY23E
14.0
17.3
75.3
7.0
50.0
6.7
5.4
1.2
1.0
3.6
7.5
29.3
19.1
19.5
24.7
45.6
1.1
0.9
6
50
40
1.8
(INR m)
FY24E
24,711
6,283
705
-6,332
494
25,861
-25,000
861
0
-25,000
0
-494
2,500
-9,183
-7,178
-6,317
30,221
23,904
FY24E
10.0
13.4
80.3
5.0
50.0
9.4
7.0
1.2
1.3
5.0
5.3
25.2
15.5
12.9
16.3
31.7
1.0
0.7
6
50
40
1.7
26 May 2022
7
 Motilal Oswal Financial Services
Nalco
NOTES
26 May 2022
8
 Motilal Oswal Financial Services
Nalco
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial
products. MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are
available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a
registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and
National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National
Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance
Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate entities of Motilal Oswal Financial Services Limited are
available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report
should be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific
merchant banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the
website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated
from MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability
or use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong
Kong Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers
Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any
brokerage and investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is
intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as
"major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which
this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration
provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange
Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-
dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this
chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public
appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL
in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”,
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SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 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
26 May 2022
9
 Motilal Oswal Financial Services
Nalco
********************************************************************************************************************************
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.
26 May 2022
10