Motilal Oswal Financial Services

Sector Update | 12 December 2024

Cement

All-India average cement price down

12% YoY (flat MoM) in Nov’24

Demand set to rise, yet pricing remains competitive in 2H

Industry volume up 3-5% YoY in Oct-Nov’24



Average imported petcoke price down

27% YoY (up 3% MoM) at USD96/t in

Nov’24



Average imported coal price down 1%

YoY/MoM to USD111/t in Nov’24

As per our channel checks, industry volume is estimated to have grown 3-5% YoY

in Oct-Nov’24 (down 10-11% in Oct’24; up 20-22% YoY in Nov’24). Celebration of

Durga Puja and Diwali in Oct’24 vs. Diwali in Nov’23 led to a higher decline in

Oct’24, followed by strong growth in Nov’24. There are signs of recovery in

cement demand after the festive seasons, and we estimate industry volume

growth of ~8-9% YoY in 2HFY25, driven by pent-up demand, an expected rebound

in government spending and robust demand in the real estate and housing

sectors.

Average cement price largely remained flat MoM in Nov’24. Prices have moved

up ~1% in the North region and Madhya Pradesh, while they have declined ~1%

in the South region. Prices remained flat in East, West, and Uttar Pradesh. The

all-India average cement price in Oct-Nov’24 was up ~1% compared to 2QFY25

average. Cement dealers indicated that industry players increased billing prices

in the range of INR10-30/bag across regions in Dec’24. Nevertheless, the

sustainability needs to be watched out for given higher competitive intensity.

We have analyzed the realization trends for the last 12 years (FY13-24) and

observed that average realization (for our coverage companies) during 2H

declined ~1% as compared to 1H. Most of the years, realization fell in the range of

~1-6%, with a few exceptions when realization remained flat in 2H compared to

1H. However, only in FY22, the realization was higher in 2H compared to 1H,

mainly due to the pass-on of the spike in fuel prices during the Russia-Ukraine war.

Given the historical trend, if competitive pricing were to continue in 2HFY25, this

may pose a risk to our FY25 earnings estimates.

Imported petcoke prices increased ~3-5% MoM in Nov’24, whereas imported coal

prices (South African) remained range-bound. At the spot price, imported petcoke

consumption costs stood at INR1.20/Kcal, while imported coal (South African)

costs stood at INR1.65/kcal. Based on the prevailing fuel prices, we estimate

cement spread to improve (due to lower fuel price) up to INR25-30/t in 2HFY25

over 1HFY25.

Estimate volume growth of 8-9% YoY in 2H



After a sluggish industry volume growth of ~1-2% YoY in 1HFY25, cement demand

picked up to 3-5% YoY in Oct-Nov’24. Cement volume declined by 10-11% YoY in

Oct’24, impacted by a high base of last year, festivals and unseasonal rains in a few

parts of the country. A favorable base led to strong growth of 20-22% YoY in Nov’24.

After a 12.7% YoY contraction in government capex in 1HFY25 (central government

capex down 13.5% YoY and state government capex down 11.5% YoY). Govt capex is

expected to pick up in 2HFY25. This should lead to improvement in cement demand,

and we estimate volume growth of ~8-9% YoY in 2HFY25. We also expect FY26E to

start on a strong note in terms of cement demand as Mar-Jun’25 is the strongest

period for cement consumption.

Sanjeev Kumar Singh - Research analyst

(Sanjeev.Singh@MotilalOswal.com)

Mudit Agarwal - Research analyst

(Mudit.Agarwal@MotilalOswal.com)

MotilalOswal 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.

Cement

Prices to follow demand improvement, though 2H numbers could be at risk



Historically, in most of the years (over FY13-24), industry realization fell in the range

of ~1-6%, with a few exceptions when realization remained flat in 2H compared to

1H. Industry players attempted price hikes during Oct-Nov’24; however, due to

higher competitive intensity and modest cement demand growth, the large part of

the price hike was rolled back. Resultantly, the all-India average cement price was

up ~1% in Oct-Nov’24 vs. 2QFY25 average and was flat vs. 1HFY25 average. Given

the historical trend, if competitive pricing were to continue in 2HFY25, this may

pose a risk to FY25 earnings estimates.

Secondly, imported petcoke prices, after witnessing a sharp correction in Sep-Oct’24

(down ~15% sequentially), have increased from mid-Nov’24. The spot price of

imported petcoke is up ~7-9% MoM and domestic petcoke is up ~6%. Imported coal

(South African) price has largely remained range-bound. Based on the prevailing

fuel prices, we estimate cement spread to improve up to INR25-30/t in 2HFY25

over 1HFY25.

For our coverage universe, we estimate volume growth of ~8% YoY in 2HFY25. We

estimate realization to improve by ~1% sequentially (down ~5% YoY) in 2HFY25.

EBITDA/t is estimated to improve ~23% sequentially (down ~15% YoY) in 2HFY25,

led by improvement in realization, positive operating leverage, favorable fuel prices

and cost efficiency initiatives (increase in green power share, alternative fuel share,

logistics cost optimization and plant efficiency improvement).

We estimate clinker utilization will improve to 81%/98% in 3Q/4QFY25 from ~75% in

2QFY25. Historically, higher clinker utilization in 4Q-exit has supported pricing power

for the industry. An improvement in clinker utilization, coupled with sustained price

increases, could lead to positive earnings surprises for our FY26/FY27 estimates.

We are structurally positive on the industry. We prefer players with a balanced

geographic mix, higher capacity utilizations, and a strong track record of capacity

expansion and successfully integration.

Further, we are positive on the companies that have a strong presence in North,

Central and West regions. We believe these regions are less vulnerable to the

demand-supply mismatch and volatility in the cement price.

UTCEM is our top pick in the cement space. We are also positive on ACEM and

JKCE.

P/E (x)

FY26E

37.9

36.5

83.6

20.5

29.8

36.6

46.1

Loss

21.5

21.7

FY27E

30.2

28.4

65.9

15.7

23.2

27.1

32.2

69.4

16.2

22.4

EV/EBITDA (x)

FY25E

27.7

26.7

25.7

13.5

13.1

21.2

18.3

Loss

11.8

14.6

FY26E

20.2

18.5

21.3

9.9

11.1

15.9

14.8

33.5

8.6

11.2

FY27E

16.5

14.5

18.9

7.4

9.4

13.0

12.3

20.3

7.3

9.8

EV/t (USD)

FY25E

244

203

191

104

193

132

105

FY26E

217

158

166

154

125

103

FY27E

197

149

147

152

125

101

ROE (%)

FY25E

9.8

4.6

5.2

9.1

5.2

11.1

3.7

(11.5)

2.8

8.0

FY26E

12.9

6.0

5.5

11.2

7.0

15.7

6.4

(1.1)

6.7

13.2

FY27E

13.9

7.4

6.8

13.1

8.5

18.5

8.6

3.1

8.3

11.5

Net debt/

EBITDA (x)

FY25E FY26E FY27E

0.1 (0.0) (0.4)

(2.4) (1.6) (1.6)

(1.6) (1.1) (0.9)

(1.2) (1.4) (1.6)

0.6 0.4 0.1

2.6 2.0 1.5

3.2 2.7 2.2

Loss 6.5 3.5

3.0 2.2 1.8

2.4 1.8 2.5

Top picks are UTCEM, ACEM and JKCE



Exhibit 1:

Valuation

summary

M-cap CMP

(USD b) (INR)

UTCEM

ACEM

SRCM

ACC

DALBHARA

JKCE

TRCL

ICEM

BCORP

JKLC

40.7

13.5

11.7

5.0

4.3

2.8

1.3

1.2

FY25E

11,871 Buy 56.0

572

Buy

55.0

27,222 Neutral 90.7

2,231

Buy

27.5

1,938

Buy

42.2

4,647

Buy

54.9

998 Neutral 86.0

342

Sell

Loss

1,296

Buy

52.4

868

Buy

39.1

Rating

Source: MOFSL, Company; Note: ACEM estimates and valuation on a consolidated basis

12 December 2024

Cement

Exhibit 2:

Realization

/t trend in last 10 years 2H vs 1H

Realization/t (INR)

0.4

(0.2)

(3.8)

(2.8) (2.3)

(5.9)

Exhibit 3:

Realization/t in most of the years declined in 2H vs. 1H

Realization/t growth in 2H over 1H

1.9

(0.4)

(1.2)

(0.4) (0.8)

1.2

(0.8)

Source: MOFSL, company, Note: MOFSL cement coverage universe

Exhibit 4:

EBITDA

/t trend in last 10 years 2H vs. 1H

EBITDA/t (INR)

Exhibit 5:

EBITDA/t

most of the years declined in 2H over 1H

EBITDA/t growth in 2H over 1H

19.0

(1.8)

0.8

6.5

1.8

6.8

(7.3)

23.2

(21.8)

(18.6)

(16.3)

(12.5)

(24.9)

Source: MOFSL, company, Note: MOFSL cement coverage universe

Exhibit 6:

Estimate clinker utilization to improve in 2HFY25

Clinker Utilization (%)

Exhibit 7:

Anticipate cement prices bottomed out in 2QFY25

All-India average cement price (INR/50 kg bag)

380

355

330

305

280

Source: MOFSL, company, Note: utilization trend of top listed

cement companies

Source: MOFSL, Industry

12 December 2024

Cement

Exhibit 8:

Estimate volume growth of ~8% YoY in 2HFY25

Aggregate Vol (mt)

YoY change (%)

Exhibit 9:

Estimate EBITDA/t to declined ~15% YoY in 2HFY25

Average EBITDA (INR/t)

58 49

(15) (10) (5)

(10)(24)(22)

(29)

(51)

Growth (%)

15 9 10 10 16 13

7 11 4

(3)

(8)

(29)(28)

(4)

72 61 59 64 74 69 64 70 82 80 73 75 91 83 74 80 99

Source: Company, MOFSL

Source: Company, MOFSL,

Exhibit 10:

Estimate ~29% EBITDA CAGR over FY25-27 led by ~12% volume CAGR and profitability improvement

EBITDA (INR b)

FY25E

FY26E

121.8

169.1

54.8

79.6

35.3

43.0

26.9

35.3

27.3

33.3

18.6

24.8

14.6

18.5

(2.6)

3.8

10.7

14.3

6.2

8.7

286.7

395.1

(11.5)

37.8

FY27E

203.2

99.8

49.2

44.3

38.2

29.9

22.3

6.2

16.5

10.1

475.4

20.3

FY25-27E

CAGR (%)

29.2

34.9

18.1

28.4

18.3

26.8

23.6

24.3

27.7

28.8

Volume (mt)

FY25E

FY26E

FY27E

128.8

150.5

166.0

63.3

76.8

85.9

35.5

39.1

43.0

40.9

44.2

48.2

31.0

33.6

35.9

20.0

22.3

25.0

19.0

20.7

22.5

9.0

9.6

10.4

17.6

18.7

19.8

9.3

10.0

10.9

333.5

381.2

419.3

5.3

14.3

10.0

FY25-27E

CAGR (%)

13.5

16.5

10.0

8.5

7.7

11.7

9.0

7.5

6.0

8.0

12.1

EBITDA/t (INR)

FY25E

FY26E

FY27E

945

1,123

1,224

866

1,036

1,162

994

1,099

1,145

656

798

919

882

990

1,062

930

1,115

1,199

771

897

991

(289)

400

598

607

518

559

662

842

902

860

1,037

1,134

(15.9)

20.6

9.4

UTCEM

ACEM *

SRCM

ACC^

DALBHARA

JKCE

TRCL

ICEM

BCORP

JKLC

Sum/average

YoY growth (%)

Source: MOFSL, Company; Note: *ACEM estimates on a consolidated basis; ^in Sum/average ACC is excluded as this has been included in

ACEM’s consolidated estimates

Top picks are UTCEM, ACEM and JKCE

UTCEM



UTCEM is maintaining its leadership position in the Indian cement industry with

its long-term capacity expansion strategy across regions. Over the year, the

company balanced out its pan-India presence with all-round capacity

expansions. Earlier (FY19), UTCEM had higher concentration in the West, Central

and North regions. However, the company’s consistent organic capacity

expansions (under Phase I, II and III) and recent strategic acquisitions are

balancing its overall market presence.

In 1HFY25 the company commissioned 10mtpa grinding capacity and is expected

to commission another 6.3mtpa in 2HFY25. Also, the company has enough

organic expansion opportunities to achieve 200mtpa of grey cement capacity in

the medium term. Despite significant capacity expansions, UTCEM’s capacity

utilization is estimated to be at the optimum level (over 80%) over FY25-27.

The company is targeting cost savings of INR300/t over the next three years. Key

cost-saving elements are – i) INR80/t through an increase in the green power

share; ii) INR30/t via higher alternative fuel share; iii) INR60/t via a reduction in

clinker factor and higher blended cement share; iv) INR75/t via savings in

12 December 2024

Cement



logistics costs by utilizing larger scale of operation and logistic optimization; and

v) INR40/t from other operational efficiency, including positive operating

leverage with higher volume. We estimate a CAGR of ~12% in consol. volume

over FY24-27. Further, we estimate its EBITDA/t at INR1,120/INR1,220 in

FY26/FY27 vs. INR950 in FY25E.

UTCEM aims to increase its WHRS capacity to 450MW by FY27E vs. 308MW as of

now. Moreover, it is participating in a hybrid solar-wind project, which will help

to increase other RE capacity to 1.8GW by FY27E (from 681MW currently). After

the completion of these projects, green energy will fulfill ~64% of its total power

requirements (~24% from WHRS and 40% from other RE) on expanded capacity.

It has a long-term target (by FY30E) of increasing its share of green power up to

~85%. It is also focusing on increasing the thermal substitution rate to ~15% by

FY27-end from ~5% currently, by substituting fossil fuel with alternative fuels,

R&D for low-carbon products, and technological advancements.

UTCEM’s consolidated net debt increased to INR217b after a slew of acquisitions

in FY19-20. However, with the successful integrations and a rapid scale-up in

capacity utilization in acquired assets, UTCEM not only deleveraged its balance

sheet (net debt-to-EBITDA ratio at less than 1.0x), but also expanded its

domestic grey cement capacity to over 150mtpa now from 109mtpa in FY19

while maintaining its leadership position in the industry. We believe the low-cost

expansion (all Phase-I, II and III expansions entail capex of ~USD70/t) and faster

execution will improve return ratios. We estimate the company’s ROE to

increase to ~14% by FY27E vs. ~12%/10% in FY24/FY25E.

We continue to believe that the company’s valuation premium is supported by

its growth plan, cost-saving strategies and strong brand equity. The stock

currently trades at 20x/17x FY26E/FY27E EV/EBITDA. We value the stock at 20x

Dec’26E EV/EBITDA to arrive at a TP of INR13,700.

Reiterate BUY.

Exhibit 12:

Estimate cement capacity utilization to remain +80%

Cement capacity (mt)

Capacity Utilization (%) (RHS)

Exhibit 11:

UTCEM’s regional mix by FY26E

South

22%

North

20%

West

20%

East

20%

Central

18%

85 109 111 111 115 127 141 157 180 194

Source: Company, MOFSL; Note: including Kesoram’s cement

capacity of 10.75mtpa, but excluding ICEM’s capacity of 14.45mtpa

awaiting regulatory approvals

Source: Company, MOFSL

12 December 2024

Cement

ACEM



ACEM, the second-largest player in the Indian cement industry, has the potential

to deliver strong earnings growth, led by capacity expansions and cost-saving

initiatives. The company is committed to increasing its capacity to 140mtpa by

FY28E through organic and inorganic expansions. Further, it is working on

improving cost efficiencies and targeting cost savings of INR530/t by FY28E.

Capacity expansion roadmap:

Over the last 18 months, the company completed

the acquisition of 19.1mtpa grinding capacity, while another acquisition of

8.5mtpa of Orient Cement is pending for regulatory approvals. Besides, ACEM’s

organic brownfield expansions of 4.0mtpa/6.4mtpa clinker/grinding capacity in

the east region are expected to be completed by FY25-end. Hence, ACEM’s

consolidated grinding capacity is estimated to increase to 103.5mtpa by FY25-

end vs. 67.6mtpa operational at the time of acquisition (Sep’22). In its next

phase of expansions, it plans to commission 14.6mtpa grinding capacity during

FY26, for which work is under progress at multiple locations. The company has

also identified 14 additional grinding unit projects, for which land acquisition and

statutory approvals are in progress. It targets to increase its total grinding

capacity to 118.1mtpa by FY26-end and 140mtpa by FY28-end. Further, the

cement companies it acquired have potential to expand capacities given the

availability of resources (such as land, limestone reserve etc.), which will ensure

long-term growth opportunities for the company.

Cost efficiency and profitability improvement initiatives:

It remains focused on

improving operations efficiencies and reducing costs. Key cost-reduction drivers

would be: 1) long-term tie-ups for sourcing major raw materials; 2) increasing

WHRS and other renewable power share; 3) increasing AFR’s share in the fuel

mix; 4) raising captive coal supplies and reducing the purchase of imported

petcoke; 5) optimizing rail-road mix and reducing lead distance, optimizing

warehouses and increasing direct dispatches; and 6) controlling fixed overheads.

With these initiatives, the company targets total cost savings of INR530/t by

FY28 (achieved INR150/t so far).

Strong balance sheet backed by fund infusion by promoters:

The promoter with

a clear intent of capacity expansion and growth in the cement business infused

funds of INR200b. The fund infusion has helped the company grow inorganically

in the initial phase, and reach closer to its capacity expansion target in a short

time. ACEM has a net cash balance of INR101.4b as of Sep’24. Considering cash

outflows of INR59b for the acquisition of Orient Cement (including proposed

open offer), ACEM is estimated to remain a net cash positive company by FY27E.

We estimate the company to generate sufficient operating cash flows to fund its

future organic expansions.

We estimate ACEM to deliver a CAGR of 12%/16% in consol. revenue/EBITDA

over FY24-27. We estimate a 13% CAGR in consol. volume, aided by capacity

expansions. Further, we estimate EBITDA/t to increase to INR1,040/INR1,160 by

FY26/FY27 from INR870 in FY25E. We believe ACEM, with a pan-India presence,

should benefit from a recovery in cement demand, prices and cost-saving

initiatives. The stock is currently trading at 18x/14x FY26E/FY27E EV/EBITDA and

USD160/USD150 EV/t. We value ACEM at 20.0x Dec’26E EV/EBITDA to arrive at a

TP of INR750.

Reiterate BUY.

12 December 2024

Cement

Exhibit 13:

ACEM’s regional mix by FY26E

South

22%

Exhibit 14:

Estimate cement capacity utilization to remain +75%

Capacity (mt)

Capacity Utilisation (%)

North

23%

Central

10%

East

24%

West

21%

Source: Company, MOFSL; Note: excluding Orient Cement capacity

of 8.5mtpa awaiting regulatory approvals

Source: Company, MOFSL

JKCE



JKCE has been strategically expanding its capacity using a balanced approach of

improving the regional mix, lowering capex, and ensuring an adequate spread of

integrated and grinding units. JKCE has significantly expanded its grey cement

capacity in Central India, becoming the second-largest player (in terms of

installed capacity) in the region. In Central India, JKCE has one integrated cement

plant in Panna, Madhya Pradesh, and four split locations grinding units (GU)

spread across Uttar Pradesh and Madhya Pradesh. Further, the company has

been successful in ramping up capacity utilization of its new plants. It achieved

~83% capacity utilization for its central India expansion in the first full year of

operations. The capacity expansion of 6mtpa is on track and expected to be

commissioned in 2HFY26. Capacity utilization is estimated to moderate in

FY26/FY27 as the large part of capacity addition is expected between Dec’25 and

Apr’26 and new capacity is estimated to take time to stabilize.

JKCE targets to increase its grey cement capacity to 50mtpa by FY30 vs. 24mtpa

currently. The company’s next leg of expansion will be fairly spread across

regions, including greenfield expansion of 6mtpa in Jaisalmer (North) and

brownfield expansion of 6mtpa in Panna Line-III (Central), 5mtpa in Muddapur

(South), and 3mtpa in Odisha (East). The company’s capacity/volume CAGR

stood at ~12% (each) over FY14-24, surpassing the industry’s capacity/volume

CAGR of ~5%/6%. Considering the company’s disciplined expansion strategy,

strong execution capabilities and availability of resources, we believe it will

achieve its capacity target of ~50mtpa by FY30.

The company’s cost structure has improved with continuous capacity expansion

and upgrade works, which have helped to reduce energy consumption, optimize

logistics costs and drive positive operating leverage. Further, the company has

initiated various cost-saving initiatives, including an increase in green power

share and thermal substitution rate (TSR) by 10% (each) and a reduction in lead

distance by 15km. The company has invested significantly in WHRS and other

renewable energy (RE). Its WHRS/RE capacity now stands at 82.3MW/90.8MW.

The company’s green energy share increased to ~50% from ~23% in FY20. It is

adding another 190MW of RE capacity across its various plants. It targets to

increase green power share up to ~75% and thermal substation rate to 35% by

FY30. JKCE targets cost savings of INR150-200/t in the next two years.

12 December 2024

Cement



We estimate JKCE to deliver a CAGR of 9%/13% in consol. revenue/EBITDA over

FY24-27, driven by a 9% CAGR in sales volume and improvement in EBITDA/t.

We estimate JKCE to post EBITDA/t of INR1,120/INR1,200 in FY26/FY27 vs.

INR930 in FY25E. The stock currently trades at 16x/13x FY26E/FY27E EV/EBITDA.

Considering JKCE’s increasing scale of operation, better execution strategy and

cost reduction initiatives, we value it at 15x Dec’26E EV/EBITDA to arrive at our

TP of INR5,300.

Exhibit 16:

JKCE capacity and utilization trends

Grey Cement Capacity

79 82

Central

41%

Capacity Utilization (%)

Exhibit 15:

JKCE’s regional mix by FY26E

East

10%

West

South

12%

North

35%

Source: Company, MOFSL; Note: excluding Orient Cement capacity

of 8.5mtpa awaiting regulatory approvals

Source: Company, MOFSL

12 December 2024

Cement

Story in charts

Exhibit 17:

All-India average cement price down 12% YoY in

Nov’24

Average price INR/ 50 kg bag

Change YoY (%)

Exhibit 18:

Average cement price down 10% YoY in North in

Nov’24

North retail price INR/ 50 kg bag

Change YoY (%)

Source: MOFSL, Cement dealers

Exhibit 19:

Average cement price down 8% YoY in Central in

Nov’24

Central retail price INR/ 50 kg bag

Change YoY (%)

Exhibit 20:

Average cement price down ~16% YoY in East in

Nov’24

East retail price INR/ 50 kg bag

Change YoY (%)

Source: MOFSL, Cement dealers

Exhibit 21:

Average cement price down 14% YoY in South in

Nov’24

South retail price INR/ 50 kg bag

Change YoY (%)

Exhibit 22:

Average cement price down 12% YoY in West in

Nov’24

West retail price INR/ 50 kg bag

Change YoY (%)

Source: MOFSL, Cement dealers

12 December 2024

Cement

Exhibit 23:

Average US petcoke price down 27% YoY in Nov’24

Imported petcoke price (USD/t)

YoY growth (%)

Exhibit 24:

Domestic petcoke price down ~9% YoY in Dec’24

Domestic petcoke price(INR/t)

YoY growth (%)

Source: MOFSL, Bloomberg, Industry

Source: MOFSL, Industry

Exhibit 25:

Average South African coal price down 1% YoY in

Nov’24

South African coal (USD/t)

YoY growth (%)

Exhibit 26:

Diesel price lower by ~5% YoY (flat QoQ) in Nov’24

Diesel price (INR/ltr)

YoY growth (%)

Source: MOFSL, Industry

Source: MOFSL, Industry, Bloomberg,

Exhibit 27:

Crude oil price trend

Brent Crude (USD/ton)

116

100 97

71 76

Exhibit 28:

Baltic Dry Index

Baltic Dry Index (USD)

3,100

89 83

81 83 85 76

73 73 73

2,400

1,700

1,000

300

43 46

Source: Bloomberg, MOFSL

Source: Bloomberg, MOFSL; Note: Baltic dry index as on month-end

Investment in securities market are subject to market risks. Read all the related documents carefully before investing

12 December 2024

Cement

Explanation of Investment Rating

Investment Rating

BUY

SELL

NEUTRAL

UNDER REVIEW

NOT RATED

Expected return (over 12-month)

>=15%

< - 10%

< - 10 % to 15%

Rating may undergo a change

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 be 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, Depository participant services & distribution of various financial products. 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

pending

Enquiry

Proceedings

Motilal

Oswal

Financial

Services

Limited

are

available

the

website

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”) (UEN 201129401Z), which is a holder of a capital markets services license and an exempt

financial adviser in Singapore.This report is distributed solely to persons who (a) qualify as “institutional investors” as defined in section 4A(1)(c) of the Securities and Futures Act of Singapore (“SFA”) or (b)

are considered "accredited investors" as defined in section 2(1) of the Financial Advisers Regulations of Singapore read with section 4A(1)(a) of the SFA. Accordingly, if a recipient is neither an “institutional

investor” nor an “accredited investor”, they must immediately discontinue any use of this Report and inform MOCMSPL .

In respect of any matter arising from or in connection with the research you could contact the following representatives of MOCMSPL. In case of grievances for any of the services rendered by MOCMSPL

write to

grievances@motilaloswal.com.

Nainesh Rajani

Email:

nainesh.rajani@motilaloswal.com

Contact: (+65) 8328 0276

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

********************************************************************************************************************************

The associates of MOFSL may have:

financial interest in the subject company

actual/beneficial ownership of 1% or more securities in the subject company at the end of the month immediately preceding the date of publication of the Research Report or date of the public

appearance.

received compensation/other benefits from the subject company in the past 12 months

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.

acted as a manager or co-manager of public offering of securities of the subject company in past 12 months

12 December 2024

Cement

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.

Served subject company as its clients during twelve months preceding the date of distribution of the research report.

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.

This report is meant for the clients of Motilal Oswal only.

Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 - 71934200 / 71934263; www.motilaloswal.com.

Correspondence Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 71881000. Details of Compliance Officer: Neeraj Agarwal,

Email Id: na@motilaloswal.com, Contact No.:022-40548085.

Grievance Redressal Cell:

Contact Person

Contact No.

Email ID

Ms. Hemangi Date

022 40548000 / 022 67490600

query@motilaloswal.com

Ms. Kumud Upadhyay

022 40548082

servicehead@motilaloswal.com

Mr. Ajay Menon

022 40548083

am@motilaloswal.com

Registration details of group entities.: Motilal Oswal Financial Services Ltd. (MOFSL): INZ000158836 (BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412 . AMFI:

ARN .: 146822. IRDA Corporate Agent – CA0579. Motilal Oswal Financial Services Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Insurance, Bond, NCDs and IPO products.

Customer having any query/feedback/ clarification may write to query@motilaloswal.com. In case of grievances for any of the services rendered by Motilal Oswal Financial Services Limited (MOFSL) write to

grievances@motilaloswal.com, for DP to dpgrievances@motilaloswal.com.

12 December 2024