27 July 2022
1QFY23 Results Update | Sector: Specialty Chemicals
Clean Science & Technology
Estimate changes
TP change
Rating change
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CMP: INR1,754
TP: INR1,659 (-5% )
Neutral
Margin subdued even as demand remains strong
CLEAN reported an in line EBITDA, while gross margin declining to 61% (est.
63.5%). EBITDAM continued to decline for the fifth consecutive quarter (at
39%). The Performance and Pharma Chemicals segment performed better,
led by increased realizations across all products.
Margin was impacted in 1QFY23 as the operating leverage benefits were
negated by the inflationary environment across key raw materials and energy
costs, particularly coal. The management expects prices of the same to fall in
2HFY23.
It commercialized a new plant for the manufacture of MEHQ and Guaiacol at
its Unit III facility, which resulted in a 50% capacity increase. Demand from
PBQ remains strong. It remains an export-oriented product for the company.
CLEAN expects the production of HALS to begin from Dec’22. Construction
at its wholly-owned subsidiary (Clean Fino-Chem) should start in the next
couple of months.
Considering the robust demand outlook for CLEAN and its plans to capture a
higher market share for its products,
we build in a revenue/EBITDA/EPS
CAGR of 36%/38%/39% over FY22-24.
But considering the current
headwinds, we expect a gross margin of 65%/67% in FY23/FY24, with an
improvement in EBITDAM to 44-45% over FY23-24.
Given its market domination and ability to sustain a high margin in the
industry,
we value CLEAN at 40x FY24E EPS
(it commands a RoIC of ~56% in
FY22) to arrive at our TP of INR1,659/share.
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
CLEAN IN
106
186.3 / 2.3
2698 / 1423
14/-21/-2
649
Financials & Valuations (INR bn)
Y/E March
FY22 FY23E FY24E
Sales
6.8
9.7 12.7
EBITDA
3.0
4.3
5.7
PAT
2.3
3.3
4.4
EPS (INR)
21.5 30.6 41.5
EPS Gr. (%)
15.2 42.3 35.4
BV/Sh.(INR)
72.3 98.4 133.6
Ratios
Net D:E
(0.1) (0.2) (0.3)
RoE (%)
34.9 35.9 35.7
RoCE (%)
33.9 35.1 35.1
Payout (%)
15.1 15.0 15.0
Valuations
P/E (x)
80.9 56.8 42.0
P/BV (x)
24.1 17.7 13.0
EV/EBITDA (x)
61.4 42.9 31.5
Div. Yield (%)
0.2
0.3
0.4
FCF Yield (%)
(0.1)
1.0
1.3
EBITDA in line, with margin declining further; lower other income results
in a PAT miss
Revenue grew 60% YoY and 14% QoQ to INR2.3b (in line) in 1QFY23.
Exports grew 40% YoY, with a domestic/exports ratio of 35:65 in 1QFY23.
Gross margin fell 420bp QoQ to 61% (v/s 71.2% in 1QFY22).
Volatility in raw material prices persisted in 1QFY23 as well.
EBITDA margin shrank further to 39% (v/s 48.8%/40.9% in 1Q/4QFY22), with
EBITDA up 28% YoY and 9% QoQ to INR913m (in line).
PAT grew 15% YoY (flat QoQ) to INR629m (6% lower than our estimate).
Lower than expected other income led to a PAT (at INR18m) miss.
Segmental Highlights
Revenue from Pharma Chemicals grew 141% YoY and 33% QoQ to INR530m
(39% higher than our estimate).
CLEAN is steadily ramping up PBQ capacity, with strong growth in Guaiacol
seen in 1QFY23.
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Jun-22 Mar-22 Jun-21
78.5
78.5
94.7
4.5
4.4
12.6
4.0
5.2
12.3
0.8
0.0
4.6
FII Includes depository receipts
Swarnendu Bhushan- Research Analyst
(Swarnendu.Bhushan@MotilalOswal.com)
Shubham Mittal - Research Analyst
(Shubham.Mittal@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.
7 February 2022
1
 Motilal Oswal Financial Services
Clean Science
Revenue from Performance Chemicals was in line at INR1.5b (up 46% YoY and
13% QoQ).
The segment witnessed improved realizations and volume growth across all
products, with a gradual ramp up in TBHQ.
Revenue from FMCG Chemicals grew 44% YoY, but fell 4% QoQ to INR230m
(15% lower than our estimate).
This segment saw increased realizations across all products in 1QFY23.
Other highlights
CLEAN incurred a capex of INR230m in 1QFY23.
It also commercialized a new plant for manufacture of MEHQ and Guaiacol at its
Unit III facility.
This has resulted in capacity increase of 50%.
Valuation and view
Continuing its R&D pursuit, it forayed into the Hindered Amine Light Stabilizers
(HALS) series (estimated global market size of USD1b). CLEAN is the first
company to develop the HALS series in India.
Unit III will be the company’s first production line dedicated to the HALS series
(expected to be commercialized in 2HFY23),
while additional production lines
will be installed in Unit IV. CLEAN has acquired land for Unit IV, which will focus
on stabilizers and other downstream intermediates that find use in Pharma and
Agro industries.
The company is likely to generate an FCF of INR4.3b over FY23-24E, with a capex
of INR2.5b planned over this period. It is funding this capex via internal accruals
and will remain net cash going forward.
The stock is trading at 42x FY24E P/E, an EPS of INR41.5, and 32x FY24E
EV/EBITDA We value CLEAN at 40x FY24E EPS to arrive at our TP of INR1,659.
FY22
FY23
FY22 FY23E
2Q
3Q
4Q
1Q
2QE
3QE
4QE
1,532 1,808 2,046 2,341 2,410 2,545 2,385 6,849 9,680
9.2
44.2
52.8
60.0
57.3
40.8
16.5
33.7
41.3
68.6% 65.0% 65.2% 61.0% 63.8% 66.7% 68.3% 67.2% 65.0%
687
761
837
913 1,034 1,169 1,143 2,999 4,259
44.9
42.1
40.9
39.0
42.9
45.9
47.9
43.8
44.0
61
60
70
85
84
85
74
249
328
86
75
74
18
130
104
164
300
416
712
776
839
847 1,080 1,188 1,231 3,048 4,346
712
776
839
847 1,080 1,188 1,231 3,048 4,346
177
196
215
218
254
298
324
763 1,094
24.9
25.3
25.7
25.7
23.5
25.1
26.3
25.0
25.2
535
580
624
629
826
890
908 2,285 3,252
-1.4
18.2
17.4
15.2
54.3
53.4
45.6
15.2
42.3
34.9
32.1
30.5
26.9
34.3
35.0
38.1
33.4
33.6
FY23E
1QE
2,295
56.9
63.5%
895
39.0
82
83
896
896
226
25.2
671
22.8
29.2
(INR m)
Var.
(%)
2%
-2.5%
2%
0.0
Consolidated quarterly snapshot
Y/E March
Gross Sales
Change (YoY %)
Gross Margin (%)
EBITDA
Margin (%)
Depreciation
Other Income
PBT before EO expense
PBT
Tax
Rate (%)
Reported PAT
Change (YoY %)
Margin (%)
1Q
1,463
29.6
71.2%
713
48.8
58
65
721
721
175
24.2
546
30.3
37.3
-5%
-5%
-6%
-2.3
27 July 2022
2
 Motilal Oswal Financial Services
Clean Science
Highlights from the management interaction
The management expects the production of HALS to start from Dec’22.
Construction at its subsidiary (Clean Fino-Chem) should begin in the next couple
of months, and production will begin from CY23-end.
CLEAN is in the process of raising its R&D personnel strength to 70 from 50 at
present.
Contract sales account for 25-30% of total revenue.
Running contracts will benefit the company if phenol prices fall.
Mix of volumes and higher realizations resulted in revenue growth in 1QFY23.
CLEAN’s global market share in MEHQ currently stands at 60-65%.
Capacity utilization in the Performance Chemicals segment currently stands at
65%. The same for the Pharma and FMCG Chemicals segments stands ~70%.
Margin was impacted as operating leverage benefits were negated by
inflationary pressures across key raw materials and energy costs, particularly
coal.
Capacity for MEHQ and Guaiacol grew 50% in Apr’22 and the plants are now
fully operational.
The target is to pare down greenhouse gas emissions by 5%.
PBQ is seeing strong demand as CLEAN is catering to Indian customers.
The management won’t be increasing product prices at present.
A global slowdown and inflation in natural gas prices is a key risk for the
company.
Capex is pegged at INR2.5b and will be spread over the next two years.
Phenol constitutes 40-50% of overall raw material cost. The management
expects prices to fall in 2HFY22, given the current trend in crude oil prices.
1QFY23 story in charts
Exhibit 1: Revenue grew 14% QoQ and 60% YoY in 1QFY23…
Gross Sales (INR b)
Growth YoY (%)
75
50
Exhibit 2:
…with both GM and EBITDAM declining further
Gross Margin (%)
76
50
EBITDA margin (%)
73
50
79
52
71
49
69
45
65
42
65
41
61
39
27 July 2022
3
 Motilal Oswal Financial Services
Clean Science
Exhibit 3: EBITDA grew 9% QoQ and 28% YoY in 1QFY23…
EBITDA (INR b)
Growth YoY (%)
Exhibit 4:
…with PAT growth at 15% YoY and flat QoQ
PAT (INR b)
Growth YoY (%)
Exhibit 5: Revenue from Performance and Pharma
Chemicals grew QoQ, but fell for FMCG Chemicals…
Others
Pharma Chemicals
Segment-wise Revenue (INR b)
1.4
0.2
0.2
1.0
1.3
0.1
0.3
0.9
1.3
0.1
0.3
0.9
1.5
0.2
0.2
1.1
FMCG Chemicals
Performance Chemicals
1.5
0.2
0.2
1.1
1.8
0.2
0.4
1.2
2.0
0.2
0.4
1.4
2.3
0.2
0.5
1.5
Exhibit 6: …with the share of Pharma Chemicals in the
overall mix improving to 23% and vice versa for FMCG
Revenue
mix (%)
1
13
16
70
2
13
16
69
Performance Chemicals
FMCG Chemicals
12
20
72
(4)
2
11
19
68
2
11
15
72
2
11
13
74
Pharma Chemicals
Others
3
13
20
64
3
12
20
66
1.1
0.1
0.2
0.8
2
10
23
65
Exhibit 7: Domestic sales grew 3% QoQ, while RoW grew
21% in 1QFY23
India (INR b)
RoW (INR b)
Total Sales (INR b)
2.3
2.0
1.8
1.3
0.5
1.3
0.8
1.5
Exhibit 8: Contribution from domestic sales fell to 35% in
1QFY23 from 38% in 4QFY22
Geographical mix (%)
75
61
India
76
74
RoW
71
62
65
69
66
1.1
0.8
0.3
1.4
0.9
0.5
1.3
0.8
0.5
1.3
1.0
0.3
1.5
1.1
0.4
1.5
1.2
0.4
0.8
31
34
39
25
26
24
29
38
35
27 July 2022
4
 Motilal Oswal Financial Services
Clean Science
Financial story in charts
Exhibit 9: Expect 36% revenue CAGR over FY22-24...
Performance Chemicals
FMCG Chemicals
INR b
6.8
5.1
0.6
0.8
3.5
FY21
Pharma Intermediates
Total Revenue
12.7
9.7
1.1
1.5
1.4
1.9
Exhibit 10:
…due to contribution from the Performance
Chemicals segment
Performance Chemicals
FMCG Chemicals
INR b
6.8
3.9
4.2
0.7
0.6
2.7
FY20
5.1
0.6
0.8
3.5
FY21
2.4
0.3
0.5
1.5
FY18
0.8
1.1
4.7
FY22
Pharma Intermediates
Total Revenue
12.7
9.7
1.1
1.5
1.4
1.9
3.9
2.4
0.3
0.5
1.5
FY18
0.6
0.7
2.5
FY19
4.2
0.7
0.6
2.7
FY20
0.8
1.1
4.7
FY22
6.4
FY23E
8.3
FY24E
0.6
0.7
2.5
FY19
6.4
FY23E
8.3
FY24E
Exhibit 11: EBITDA margin to stay robust as CLEAN continues
to improve yields of its products and processes…
INR b
EBITDA
44
30
35
51
Margin (%)
44
45
Exhibit 12: …with capacity additions in FY23 and a new
product range from unit IV (over the next two years)
INR b
Adjusted PAT
Margin (%)
39
33
34
35
38
44
33
25
20
25
Exhibit 13: Expect return profile to moderate v/s FY21 due
to capacity additions (at unit III and IV)…
RoE
38
28
34
29
40
42
43
45
43
RoCE
Exhibit 14: …and capex of INR2.5b (to be funded via internal
accruals) over FY23-24E
FCF per share
Capex (INR bn)
45
34
35
35
36
35
36
Source: Company, MOFSL
Source: Company, MOFSL
27 July 2022
5
 Motilal Oswal Financial Services
Clean Science
Financials and valuations
Consolidated Financial Snapshot
Y/E March
Total Income from Operations
Change (%)
Gross Margin (%)
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
PBT after EO Exp.
Total Tax
Tax Rate (%)
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
Consolidated Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Total Loans
Deferred Tax Liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Total Investments
Curr. Assets, Loans, and Adv.
Inventory
Account Receivables
Cash and Bank Balance
Cash
Bank Balance
Loans and Advances
Curr. Liability and Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Appl. of Funds
FY17
1,905
31.6
64.3
723
37.9
64
659
4
42
697
697
229
32.8
468
468
72.1
24.6
FY18
2,411
26.5
53.0
729
30.3
76
654
1
46
699
699
212
30.4
487
487
3.9
20.2
FY19
3,933
63.1
56.5
1,363
34.7
110
1,253
0
113
1,365
1,365
389
28.5
977
977
100.7
24.8
FY20
4,193
6.6
69.2
1,853
44.2
137
1,716
1
109
1,823
1,823
427
23.4
1,396
1,396
43.0
33.3
FY21
5,124
22.2
75.9
2,590
50.5
172
2,417
1
256
2,673
2,673
689
25.8
1,984
1,984
42.1
38.7
FY22
6,849
33.7
67.2
2,999
43.8
249
2,750
1
300
3,048
3,048
763
25.0
2,285
2,285
15.2
33.4
FY23E
9,680
41.3
65.0
4,259
44.0
328
3,932
1
416
4,346
4,346
1,094
25.2
3,252
3,252
42.3
33.6
(INR m)
FY24E
12,747
31.7
67.0
5,736
45.0
397
5,339
1
548
5,886
5,886
1,481
25.2
4,404
4,404
35.4
34.6
(INR m)
FY24E
106
14,087
14,193
3
209
14,405
5,789
1,726
4,064
1,110
1,911
9,829
1,640
2,858
3,890
3,722
168
1,441
2,508
1,901
603
5
7,320
14,405
FY17
14
1,426
1,440
4
108
1,551
1,057
286
771
23
319
675
307
214
65
0
0
89
238
135
101
2
437
1,551
FY18
14
1,861
1,875
1
100
1,976
1,375
351
1,024
15
181
1,137
290
397
295
0
295
155
380
264
113
3
756
1,976
FY19
14
2,706
2,721
26
139
2,885
1,724
454
1,270
39
752
1,213
370
598
95
94
0
151
390
223
162
4
824
2,885
FY20
13
3,408
3,421
27
102
3,550
2,247
591
1,656
34
1,330
1,279
346
698
93
92
1
142
749
357
387
5
530
3,550
FY21
106
5,290
5,397
3
176
5,576
2,610
752
1,859
550
2,321
1,870
529
742
157
93
63
442
1,023
610
408
5
846
5,576
FY22
106
7,578
7,684
3
209
7,897
3,959
1,001
2,957
441
1,911
3,938
881
1,535
747
579
168
774
1,350
1,021
324
5
2,587
7,897
FY23E
106
10,343
10,449
3
209
10,662
4,679
1,329
3,350
721
1,911
6,586
1,246
2,170
2,076
1,908
168
1,094
1,906
1,443
458
5
4,679
10,662
27 July 2022
6
 Motilal Oswal Financial Services
Clean Science
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
EPS Growth (%)
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E ratio
Cash P/E ratio
P/BV ratio
EV/Sales ratio
EV/EBITDA ratio
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Net Debt/Equity ratio
Consolidated Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Others
Direct Taxes Paid
(Inc.)/Dec. in WC
CF from Operations
(Inc.)/Dec. in FA
Free Cash Flow
Change in Investments
CF from Investments
Inc./(Dec.) in Debt
Dividend Paid
CF from Fin. Activity
Inc./Dec. in Cash
Opening Balance
Closing Balance
FY17
4.4
72.1
5.0
13.6
0.3
7.3
395
347
128
97
256
0.0
4
38
34
39
2.7
1.2
59
41
26
2.8
0.0
FY18
4.6
3.9
5.3
17.7
0.2
4.7
380
329
99
77
253
0.0
1
29
28
35
2.7
1.2
44
60
40
3.0
-0.2
FY19
9.2
100.7
10.2
25.6
0.9
9.5
189
170
68
47
136
0.1
4
42
40
51
3.4
1.4
34
55
21
3.1
0.0
FY20
13.1
43.0
14.4
32.2
1.0
7.4
132
121
54
44
100
0.1
10
45
43
64
2.9
1.2
30
61
31
1.7
0.0
FY21
18.7
42.1
20.3
50.8
0.3
1.7
93
86
34
36
71
0.0
10
45
43
77
2.9
0.9
38
53
43
1.8
0.0
FY22
21.5
15.2
23.9
72.3
3.3
15.1
81
73
24
27
61
0.2
-1
35
34
56
2.8
0.9
47
82
54
2.9
-0.1
FY23E
30.6
42.3
33.7
98.4
4.6
15.0
56.8
52
18
19
43
0.3
17
35.9
35
55
3.1
0.9
47
82
54
3.5
-0.2
FY24E
41.5
35.4
45.2
133.6
6.2
15.0
42.0
38
13
14
32
0.4
23
35.7
35
59
3.4
0.9
47
82
54
3.9
-0.3
(INR m)
FY24E
5,886
397
0
-1,481
-827
3,976
-1,500
2,476
0
-1,500
0
-661
-662
1,814
1,908
3,722
FY17
697
64
-14
-204
143
690
-222
468
-302
-524
-116
-34
-148
19
46
65
FY18
699
76
-18
-219
-89
449
-320
129
144
-175
1
-51
-44
230
65
294
FY19
1,365
110
-65
-355
-208
848
-388
460
-576
-950
20
-128
-98
-200
295
95
FY20
1,823
137
-67
-424
131
1,601
-503
1,098
-563
-1,063
1
-153
-540
-3
95
92
FY21
2,673
172
-109
-659
-149
1,928
-840
1,088
-1,078
-1,867
-24
-33
-59
1
92
93
FY22
3,048
249
-126
-691
-1,209
1,273
-1,396
-123
532
-786
0
0
-1
486
93
579
FY23E
4,346
328
0
-1,094
-763
2,818
-1,000
1,818
0
-1,000
0
-488
-489
1,329
579
1,908
27 July 2022
7
 Motilal Oswal Financial Services
Clean Science
NOTES
27 July 2022
8
 Motilal Oswal Financial Services
Clean Science
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
27 July 2022
9
 Motilal Oswal Financial Services
Clean Science
***************************************************************************************
*****************************************
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.
27 July 2022
10