Bharat Electronics
BSE SENSEX
28,773
S&P CNX
8,867
23 September 2016
Update
| Sector:
Capital Goods
CMP: INR1,256
TP: INR1,450(+15%)
Order pipeline remains robust
Buy
Guides 10-12% sales growth, +/-100bp change in EBITDA margin in FY17
Stock Info
Bloomberg
Equity Shares (m)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
M.Cap. (INR b)
M.Cap. (USD b)
Avg Val, INRm
Free float (%)
We recently attended the analyst meet of Bharat Electronics (BHE). Our key
takeaways:
BHE IN
240
1,417/1,009
0/-9/3
302.9
4.6
411.7
24.98
Financials Snapshot (INR b)
2016 2017E 2018E
Y/E Mar
73.0
82.3
93.2
Net Sales
14.6
15.1
16.9
EBITDA (INR b)
13.7
14.8
16.6
Net Profit
56.9
61.7
69.0
EPS
17.1
8.4
11.9
EPS Gr. (%)
364.2 404.7 449.8
BV/Sh. (INR)
P/E (x)
22.1
20.4
18.2
P/BV (x)
3.4
3.1
2.8
RoE (%)
15.6
15.2
15.3
RoCE (%)
16.5
16.0
16.1
Shareholding pattern (%)
As On
Jun-16 Mar-16 Jun-15
Promoter
75.0
75.0
75.0
DII
15.0
14.7
15.5
FII
3.9
4.0
3.9
Others
6.1
6.3
5.6
FII Includes depository receipts
Stock Performance (1-year)
Bharat Electron
Sensex - Rebased
1,400
1,250
1,100
950
Orders in FY17 at INR120b-150b; large missile system orders likely to slip to FY18:
Post strong order inflow of INR170b in FY16, the management has guided orders
worth INR120b-150b in FY17 (our estimate: INR135b; five-year average: INR79b).
Key orders wins expected in FY17 include: (a) hand-held thermal imagers, (b)
electronic warfare systems for the Indian Army, and (c) network-centric systems for
the P15 Bravo ships. The Akash weapon systems order worth INR50b-60b along
with the LR SAM (Barrak 8) is likely to slip to FY18. Annual order inflows over the
next 2-3 years are expected to remain in the range of INR100b-150b, as there is a
strong pipeline of nomination-based orders.
Guidance of 10-12% sales growth in FY17; 8-10% growth likely over the medium
term:
The management has guided sales growth of 10-12% in FY17, with a higher
likelihood of growth being at the higher end of the range (our estimate: 13%). We
highlight that in the AR16, the management had guided 12-15% sales growth. For
the medium term (3-5 years), BHE has guided sales growth at 8-10%, which is
conservative in our view. Despite 48% growth in order book in FY16 to INR320b
and strong orders in FY17, execution would remain in the low teens due to (a) long
execution cycle of the order book, and (b) non-readiness of the customer to take
deliveries, which affects sales growth for BHE.
+/-100bp change in EBITDA margin (20% in FY16), 40-50% gross margin in FY17:
BHE has guided gross margin of 40-50% (our estimate: 43%) – gross margin would
depend on the mix of indigenous and imported content in the sales. In FY16, gross
margin was 48% – execution of the Akash missile system (21% of sales) would have
supported margins, in our view. The management has guided FY17 EBITDA margin
to be within a +/-100bp of the FY16 EBITDA margin of 20% (our estimate: 18%).
This takes into account the provision that needs to be made in 4QFY17 for the
coming employee pay revisions. Margins in indigenously developed products are
higher than where the technology is imported.
R&D spending to scale up to 12% of sales:
BHE is an R&D-focused company; its
R&D spending in FY16 was INR7b, 9.4% of sales. This is projected to rise to 12% of
sales in the coming few years. Its strong R&D base enables it to indigenize
imported technology while also to develop new IPR. In our view, BHE’s R&D
capability is a key competitive advantage.
Maintain Buy; play on faster decision making/accelerated indigenization in
defense:
We expect BHE to report EPS of INR62 in FY17 and INR69 in FY18.
Maintain Buy; our target price is INR1,450 (21x FY18E EPS). Key triggers are
accelerated decision making toward large defense procurements and increased
indigenization.
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.
Ankur Sharma
(Ankur.VSharma@MotilalOswal.com); +91 22 6129 1556
Amit Shah
(Amit.Shah@MotilalOswal.com); +91 22 6129 1543

Bharat Electronics
Operating metrics
Exhibit 1: Key operating metrics (INR m)
INR M
Order book
Y-o-Y growth
Order inflow
Y-o-Y growth
Execution
Y-o-Y growth
Book to bill ratio (x)
Revenues
Defence
Non Defence
Revenues
Indigeniously developed
In association with DRDO, etc
Total Indigenous
ToT from Foreign OEM's
Revenues
Domestic
Exports
Exports, % of Total
Cost structure (% of Revenues)
Raw material cost
Employee Cost
Other Expenses
Provisions/write off
R&D Expenses (INR M)
R&D Expenses % to Sales
Net cash/( Debt) (INR M)
Core NWC (Days)
Customer Advances
Reported NWC (Days)
FY11
236,000
107.9%
177,217
188.4%
54,717
5.6%
4.3
54,717
44,696
11,174
57.0%
21.0%
78.0%
22.0%
53,680
1,617
3.0%
56.3
18.6
5.0
2.4
3882
6.9
65,192
311
421
-110
FY12
257,480
9.1%
77,897
-56.0%
56,500
3.3%
4.6
56,500
42,104
15,573
54.0%
27.0%
81.0%
19.0%
55,157
1,879
3.3%
62.1
18.7
5.7
2.9
4682
8.1
67,725
365
454
-89
FY13
249,490
-3.1%
52,425
-32.7%
59,905
6.0%
4.2
59,905
51,882
9,156
NA
NA
78.0%
22.0%
58,340
1,782
3.0%
62.4
18.2
6.0
2.9
5099
8.4
53,025
396
353
43
FY14
234,520
-6.0%
42,300
-19.3%
61,223
2.2%
3.8
61,223
52,087
10,668
41.0%
44.0%
85.0%
15.0%
59,232
2,510
4.1%
57.9
16.4
6.3
5.4
4670
7.4
45,644
418
307
111
FY15
216,170
-7.8%
51,300
21.3%
66,755
9.0%
3.2
66,755
56,075
10,681
38.0%
42.0%
80.0%
20.0%
63,111
3,645
5.5%
55.2
18.5
6.0
3.6
5489
8.0
58,815
346
265
81
FY16
320,220
48.1%
170,940
233.2%
71,541
7.2%
4.5
71,541
59,379
12,162
39.0%
47.0%
86.0%
14.0%
65,846
5,695
8.0%
52.0
17.8
6.0
4.3
7043
9.7
73,319
340
316
25
73,403
7,404
9.2%
56.5
17.0
4.0
4.2
82,003
9,625
10.5%
56.5
17.5
3.8
4.1
FY17E
376,165
17.5%
136,752
-20.0%
80,807
13.0%
4.7
80,807
66,262
14,545
FY18E
434,965
15.6%
150,427
10.0%
91,627
13.4%
4.7
91,627
74,218
17,409
71,872
382
300
82
81,388
379
300
79
23 September 2016
2

Bharat Electronics
Financials and Valuations
Income Statement
Y/E Mar
Net Sales
Change (%)
EBITDA
EBITDA Margin (%)
Depreciation
EBIT
Interest
Other Income
Extraordinary items
PBT
Tax
Tax Rate (%)
Min. Int. & Assoc. Share
Reported PAT
Adjusted PAT
Change (%)
2011
55,870
5.2
9,895
17.7
1,220
8,675
4
2,740
201
11,611
2,997
25.8
0
8,615
8,414
11.8
2012
57,676
3.2
6,146
10.7
1,208
4,938
6
5,855
-39
10,748
2,450
22.8
0
8,299
8,337
-0.9
2013
61,038
5.8
6,425
10.5
1,307
5,118
8
6,100
-64
11,146
2,248
20.2
0
8,898
8,962
7.5
2014
62,755
2.8
8,911
14.2
1,421
7,490
34
4,285
6
11,747
2,431
20.7
0
9,316
9,310
3.9
2015
68,427
9.0
11,433
16.7
1,540
9,894
14
4,780
8
14,667
2,994
20.4
0
11,672
11,665
25.3
2016
72,952
6.6
14,582
20.0
1,689
12,892
45
5,322
110
18,279
4,515
24.7
0
13,764
13,654
17.1
(INR Million)
2017E
82,288
12.8
15,068
18.3
1,905
13,163
0
6,232
0
19,395
4,596
23.7
0
14,799
14,799
8.4
2018E
93,183
13.2
16,879
18.1
2,180
14,698
0
7,000
0
21,698
5,142
23.7
0
16,556
16,556
11.9
Balance Sheet
Y/E Mar
Share Capital
Reserves
Net Worth
Debt
Deferred Tax
Total Capital Employed
Gross Fixed Assets
Less: Acc Depreciation
Net Fixed Assets
Capital WIP
Investments
Current Assets
Inventory
Debtors
Cash & Bank
Loans & Adv, Others
Curr Liabs & Provns
Curr. Liabilities
Provisions
Net Current Assets
Total Assets
2011
800
49,226
50,026
1
-1,806
48,220
17,890
13,053
4,837
577
120
124,277
24,603
28,973
65,194
5,507
81,589
75,853
5,736
42,687
48,221
2012
800
55,570
56,370
0
-2,282
54,088
19,016
13,914
5,102
1,136
120
139,941
27,918
26,869
67,725
17,429
92,210
86,323
5,887
47,731
54,088
2013
800
62,429
63,229
0
-2,716
60,513
20,732
14,978
5,755
1,614
120
134,257
32,711
33,347
53,025
15,174
81,233
74,071
7,162
53,024
60,513
2014
800
69,498
70,298
0
-2,995
67,304
22,267
15,757
6,509
1,969
120
133,680
33,701
41,508
45,644
12,826
74,974
68,979
5,995
58,705
67,303
2015
800
78,140
78,940
0
-3,378
75,562
25,790
17,140
8,650
1,398
191
139,319
34,269
38,180
58,815
8,055
73,056
65,289
7,767
66,263
76,502
2016
2,400
85,001
87,401
0
-3,723
83,677
27,667
18,082
9,584
4,297
3,179
159,439
42,132
37,415
73,319
6,572
92,822
81,204
11,618
66,617
83,678
(INR Million)
2017E
2,400
94,739
97,139
0
-3,000
94,139
30,667
19,987
10,679
2,000
120
177,606
39,453
45,089
71,872
21,192
96,266
87,248
9,018
81,340
94,139
2018E
2,400
105,564
107,964
0
-3,000
104,964
33,667
22,168
11,499
2,000
120
201,122
44,677
51,059
81,388
23,998
109,777
99,565
10,212
91,345
104,964
23 September 2016
3

Bharat Electronics
Financials and Valuations
Ratios
Y/E Mar
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation(x)
P/E
Cash P/E
Price / Book Value
EV/Sales
EV/EBITDA
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
RoIC
Turnover Ratios (%)
Fixed Asset Turnover (x)
Debtors (No. of Days)
Inventory (No. of Days)
Leverage Ratios (%)
Net Debt/Equity (x)
2011
35.1
41.0
208.4
7.2
20.1
16.0
41.0
2.7
1.3
7.0
0.4
16.8
18.1
-107.3
3.1
189
161
-1.3
2012
34.7
39.6
234.9
6.9
20.1
14.6
38.5
2.2
1.0
8.8
0.5
14.8
15.7
-23.4
3.0
170
177
-1.2
2013
37.3
42.5
263.5
7.4
20.0
10.3
27.0
1.5
0.6
6.1
0.6
14.2
15.0
-89.4
2.9
199
196
-0.8
2014
38.8
44.7
292.9
7.8
20.0
9.8
25.6
1.3
0.8
5.2
0.7
13.2
14.0
46.9
2.7
241
196
-0.6
2015
48.6
55.0
328.9
9.7
20.0
15.8
41.9
2.3
1.9
11.0
0.4
14.8
15.6
45.3
2.7
204
183
-0.7
2016
56.9
64.4
364.2
17.0
29.6
22.2
19.6
3.5
3.2
15.7
1.3
15.6
16.5
107.6
2.6
187
211
-0.8
2017E
61.7
69.6
404.7
18.3
29.6
20.5
18.1
3.1
2.9
15.3
1.4
15.2
16.0
87.2
2.6
200
175
-0.7
2018E
69.0
78.1
449.8
20.4
29.6
18.3
16.2
2.8
2.4
13.1
1.6
15.3
16.1
53.9
2.7
200
175
-0.8
Cash Flow Statement
Y/E Mar
Adjusted EBITDA
Non cash opr. exp (inc)
(Inc)/Dec in Wkg. Cap.
Tax Paid
Other operating activities
CF from Op. Activity
(Inc)/Dec in FA & CWIP
Free cash flows
(Pur)/Sale of Invt
Others
CF from Inv. Activity
Inc/(Dec) in Net Worth
Inc / (Dec) in Debt
Interest Paid
Divd Paid (incl Tax) & Others
CF from Fin. Activity
Inc/(Dec) in Cash
Add: Opening Balance
Closing Balance
2011
9,895
2,740
23,285
-2,997
201
33,124
-1,441
31,682
0
0
-1,441
-273
-6
-4
-2,010
-2,294
29,389
35,784
65,173
2012
6,146
5,854
-2,534
-2,450
-39
6,978
-2,010
4,968
0
0
-2,010
-496
-1
-6
-1,934
-2,437
2,531
65,194
67,725
2013
6,425
6,099
-19,994
-2,248
-64
-9,781
-2,439
-12,220
0
0
-2,439
-389
0
-8
-2,083
-2,481
-14,700
67,725
53,025
2014
8,911
4,284
-13,062
-2,431
6
-2,292
-2,530
-4,822
0
0
-2,530
-344
0
-34
-2,181
-2,559
-7,381
53,025
45,644
2015
11,433
4,779
5,614
-2,994
8
18,839
-3,109
15,729
-71
0
-3,180
-684
0
-14
-2,728
-3,427
12,232
45,644
57,875
2016
14,582
5,322
14,151
-4,515
110
29,650
-5,523
24,127
-2,989
0
-8,512
-739
0
-45
-4,911
-5,694
15,444
58,815
74,259
(INR Million)
2017E
15,068
6,232
-16,171
-4,596
0
532
-703
-171
3,059
0
2,357
787
0
0
-5,123
-4,337
-1,448
73,319
71,872
2018E
16,879
7,000
-488
-5,142
0
18,249
-3,000
15,249
0
0
-3,000
0
0
0
-5,732
-5,732
9,517
71,872
81,388
23 September 2016
4

Bharat Electronics
NOTES
23 September 2016
5

Disclosures
This document has been prepared by Motilal Oswal Securities Limited (hereinafter referred to as Most) to provide information about the company (ies) and/sector(s), if any, covered in the report and may be distributed by it and/or
Bharat Electronics
its affiliated company(ies). This report is for personal information of the selected recipient/s and does not construe to be any investment, legal or taxation advice to you. This research report does not constitute an offer, invitation or
inducement to invest in securities or other investments and Motilal Oswal Securities Limited (hereinafter referred as MOSt) is not soliciting any action based upon it. This report is not for public distribution and has been furnished to
you solely for your general information and should not be reproduced or redistributed to any other person in any form. This report does not constitute a personal recommendation or take into account the particular investment
objectives, financial situations, or needs of individual clients. Before acting on any advice or recommendation in this material, investors should consider whether it is suitable for their particular circumstances and, if necessary, seek
professional advice. The price and value of the investments referred to in this material and the income from them may go down as well as up, and investors may realize losses on any investments. Past performance is not a guide
for future performance, future returns are not guaranteed and a loss of original capital may occur.
MOSt and its affiliates are a full-service, integrated investment banking, investment management, brokerage and financing group. We and our affiliates have investment banking and other business relationships with a some
companies covered by our Research Department. Our research professionals may provide input into our investment banking and other business selection processes. Investors should assume that MOSt and/or its affiliates are
seeking or will seek investment banking or other business from the company or companies that are the subject of this material and that the research professionals who were involved in preparing this material may educate
investors on investments in such business . The research professionals responsible for the preparation of this document may interact with trading desk personnel, sales personnel and other parties for the purpose of gathering,
applying and interpreting information. Our research professionals are paid on twin parameters of performance & profitability of MOSt.
MOSt generally prohibits its analysts, persons reporting to analysts, and members of their households from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover. Additionally,
MOSt generally prohibits its analysts and persons reporting to analysts from serving as an officer, director, or advisory board member of any companies that the analysts cover. Our salespeople, traders, and other professionals or
affiliates may provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein, and our proprietary trading and investing businesses may make
investment decisions that are inconsistent with the recommendations expressed herein. In reviewing these materials, you should be aware that any or all of the foregoing among other things, may give rise to real or potential
conflicts of interest. MOSt and its affiliated company(ies), their directors and employees 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 affiliates of MOSt even though
there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
Reports based on technical and derivative analysis center on studying charts company's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not
match with a report on a company's fundamental analysis. In addition MOST has different business segments / Divisions with independent research separated by Chinese walls catering to different set of customers having various
objectives, risk profiles, investment horizon, etc, and therefore may at times have different contrary views on stocks sectors and markets.
Unauthorized disclosure, use, dissemination or copying (either whole or partial) of this information, is prohibited. The person accessing this information specifically agrees to exempt MOSt or any of its affiliates or employees from,
any and all responsibility/liability arising from such misuse and agrees not to hold MOSt or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOSt 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. The information contained herein is based on publicly available data or other
sources believed to be reliable. Any statements contained in this report attributed to a third party represent MOSt’s interpretation of the data, information and/or opinions provided by that third party either publicly or through a
subscription service, and such use and interpretation have not been reviewed by the third party. This Report is not intended to be a complete statement or summary of the securities, markets or developments referred to in the
document. While we would endeavor to update the information herein on reasonable basis, MOSt and/or its affiliates are under no obligation to update the information. Also there may be regulatory, compliance, or other reasons
that may prevent MOSt and/or its affiliates from doing so. MOSt or any of its affiliates or employees shall not be in any way responsible and liable for any loss or damage that may arise to any person from any inadvertent error in
the information contained in this report. MOSt or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation
the implied warranties of merchantability, fitness for a particular purpose, and non-infringement. The recipients of this report should rely on their own investigations.
This report is intended for distribution to institutional investors. Recipients who are not institutional investors should seek advice of their independent financial advisor prior to taking any investment decision based on this report or
for any necessary explanation of its contents.
Most and it’s associates may have managed or co-managed public offering of securities, may have received compensation for investment banking or merchant banking or brokerage services, may have received any compensation
for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months.
Most and it’s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report.
Subject Company may have been a client of Most or its associates during twelve months preceding the date of distribution of the research report
MOSt and/or its affiliates and/or employees may have interests/positions, financial or otherwise of over 1 % at the end of the month immediately preceding the date of publication of the research in the securities mentioned in this
report. To enhance transparency, MOSt has incorporated a Disclosure of Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the report.
Motilal Oswal Securities Limited is registered as a Research Analyst under SEBI (Research Analyst) Regulations, 2014. SEBI Reg. No. INH000000412
Pending Regulatory inspections against Motilal Oswal Securities Limited:
SEBI pursuant to a complaint from client Shri C.R. Mohanraj alleging unauthorized trading, issued a letter dated 29th April 2014 to MOSL notifying appointment of an Adjudicating Officer as per SEBI regulations to hold inquiry and
adjudge violation of SEBI Regulations; MOSL replied to the Show Cause Notice whereby SEBI granted us an opportunity of Inspection of Documents. Since all the documents requested by us were not covered we have requested
to SEBI vide our letter dated June 23, 2015 to provide pending list of documents for inspection.
List of associate companies of Motilal Oswal Securities Limited -
Click here to access detailed report
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. The research analysts, strategists, or research associates principally responsible for preparation of MOSt research
receive compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors and firm revenues
Disclosure of Interest Statement
Analyst ownership of the stock
Served as an officer, director or employee -
BHARAT ELECTRONICS
No
No
A graph of daily closing prices of securities is available at www.nseindia.com and http://economictimes.indiatimes.com/markets/stocks/stock-quotes
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 MOSt & 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 Kong 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 Securities Limited (MOSL) 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 MOSL 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 MOSL, 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., MOSL 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
Motilal Oswal Capital Markets Singapore Pte Limited is acting as an exempt financial advisor under section 23(1)(f) of the Financial Advisers Act(FAA) read with regulation 17(1)(d) of the Financial Advisors Regulations and is a
subsidiary of Motilal Oswal Securities Limited in India. This research is distributed in Singapore by Motilal Oswal Capital Markets Singapore Pte Limited and it is only directed in Singapore to accredited investors, as defined in the
Financial Advisers Regulations and the Securities and Futures Act (Chapter 289), as amended from time to time.
In respect of any matter arising from or in connection with the research you could contact the following representatives of Motilal Oswal Capital Markets Singapore Pte Limited:
Varun Kumar
Varun.kumar@motilaloswal.com
Contact : (+65) 68189232
Office Address:21 (Suite 31),16 Collyer Quay,Singapore 04931
Kadambari Balachandran
kadambari.balachandran@motilaloswal.com
(+65) 68189233 / 65249115
Motilal Oswal Securities Ltd
23 September 2016
Motilal Oswal Tower, Level 9, Sayani Road, Prabhadevi, Mumbai 400 025
Phone: +91 22 3982 5500 E-mail: reports@motilaloswal.com
6