Dalmia Bharat
BSE SENSEX
27,459
S&P CNX
8,497
7 November 2016
Update
| Sector:
Cement
CMP: INR2,013
TP: INR2,384 (+18%)
DBEL to be merged with OCL India
Buy
Stock Info
Bloomberg
Equity Shares (m)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
M.Cap. (INR b)
M.Cap. (USD b)
12M Avg Val (INR M)
Free float (%)
Financials Snapshot (INR b)
Y/E Mar
2016
DBEL IN
88.8
2,090 / 605
9/124/178
178.8
2.8
74
42.6
Dalmia Bharat’s (DBEL) board approves amalgamation with OCL India.
DBEL shareholders to receive two shares of OCL for every one share of DBEL.
Transaction is part of restructuring exercise initiated in early part of 2016. With this
merger, majority of restructuring exercise is completed.
DBEL-OCL merger approved by respective boards
DBEL and OCL India in their respective board meeting on 5 November 2016 approved
the amalgamation of DBEL with OCL. Post amalgamation, OCL would be renamed as
DBEL.
th
The proposed merger ratio of 2:0 was derived on the basis of fair valuation – weighted
average of three valuation techniques: 1) Discounted cash flow, 2) EV/tonne and 3)
Market price.
2017E
2018E
Sales
EBITDA
NP
Adj EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
RoE (%)
RoCE (%)
P/E (x)
P/BV (x)
63.7
15.1
1.9
21.5
1,802.4
434
5.5
4.9
93.7
4.6
73.0
18.3
3.9
44.2
105.8
476
9.7
7.4
45.5
4.2
84.8
22.9
6.4
72.6
64.2
547
14.2
9.2
27.7
3.7
This would result in issuance of 177.6m new shares by OCL to DBEL’s shareholders.
Additionally, there would be cancellation of 42.5m shares of OCL held by Dalmia
Cement Bharat Limited. The resultant equity shares of the merged entity would be
192m.
Management stated that the proposed merger would not result in any mine transfer
issues related to MMDR Act.
Focus on simplification of group structure evident
DBEL had initiated simplification of its holding structure in early part of 2016 with the
acquisition of KKR’s stake in DCBL. It then amalgamated Adhunik Cement with DCBL. It
also amalgamated OCL and Bokaro to have better synergies in operations.
Shareholding pattern (%)
As On
Sep-16 Jun-16 Sep-15
Promoter
57.4
57.4
62.8
DII
5.1
4.6
5.3
FII
11.8
11.4
7.9
Others
25.7
26.5
24.1
FII Includes depository receipts
Stock Performance (1-year)
Dalmia Bhar.
Sensex - Rebased
2,500
2,000
1,500
1,000
500
This proposed merger is part of the restructuring exercise to have one listed entity and
one cement operating company, which would help in consolidation and better
management of cash flows.
Re-rating led by structure simplification and deleveraging
Management’s focus on one listed entity over past 12 months has given investors more
comfort in the group structure and resulted in multiples expansion for the company.
Concerns about high gearing (net debt/EBITDA of 4x) should abate with steady asset
sweating and disciplined capital allocation. Due to moderating capex, we expect net
debt/EBITDA to improve to less than 3x by FY18. With strong profitability and growth,
DBEL has seen the first round of re-rating. At EV of 10.4x FY18E and USD156/ton, the
stock is trading at discount to peers. With the conclusion of most large asset sales in
India, the potential risk of increase in debt by way of asset acquisitions has mitigated.
Deployment of incremental free cash generation toward debt reduction would drive
the next phase of re-rating. We value DBEL at EV/EBITDA of 12X FY18E or
INR2,384/share.
Abhishek Ghosh
(Abhishek.Ghosh@motilaloswal.com); +91 22 3982 5436
Varun Gadia
(Varun.gadia@motilaloswal.com); +91 22 3982 5446
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.

Dalmia Bharat
Exhibit 1: Merger of DBL with OCL
Source: Company, MOSL
Exhibit 2:
Current vs. Resultant Structure
Source: Company, MOSL
7 November 2016
2

Dalmia Bharat
Exhibit 3:
Post-merger Capital Structure
Source: Company, MOSL
Exhibit 4:
Consolidation and Simplified Structure
Source: Company, MOSL
Exhibit 5: Total and effective capacity
Capacity (mt)
DBEL's Stake (%)
DCBL
100
OCL
75.0
Adhunik
100.0
Calcom
76.0
Bokaro
100.0
Total Capacity under control
Capacity based on Eco. Interest
FY12
9.0
5.4
FY13
9.0
5.4
0.8
0.4
15.5
14.1
FY14
9.0
5.4
1.5
1.3
2.1
17.1
15.5
FY15
11.5
6.8
1.5
2.1
2.1
24.0
21.8
FY16
11.5
6.75
1.5
2.1
2.1
24.0
21.8
FY17E
FY18E
11.5
11.5
6.8
6.8
1.5
1.5
2.1
2.1
2.1
2.1
24.0
24.0
21.8
21.8
Source: Company, MOSL
14.4
13.0
Exhibit 6: Total and effective EBITDA
EBITDA (INR m)
DCBL
OCL
Adhunik
Calcom
Bokaro
Total EBITDA
EBITDA based on Eco. Interest
EBITDA/ton
Stake (%)
100
75.0
100.0
76.0
100.0
FY12
5,556
1,955
FY13
6,255
4,081
207
44
10,588
9,557
1,126
FY14
2,687
2,840
554
-111
5,970
5,286
575
FY15
1,054
3,275
212
-218
223
4,546
3,779
393
FY16
9,441
3,966
417
78
1,176
15,079
14,069
1,245
FY17E
11,619
4,645
541
397
1,095
18,297
17,040
FY18E
14,192
5,961
746
639
1,392
22,930
21,286
7,511
7,022
904
1,304
1,484
Source: Company, MOSL
7 November 2016
3

Dalmia Bharat
Exhibit 7: Operating matrix
Capacity (mt)
Volume (mt)
Utilization (%)
Growth (%)
Realization (INR/ton)
Growth (%)
EBITDA (INR b)
South (INR b)
OCL (INR b)
North East & Bokaro (INR b)
EBITDA/ton (INR)
Growth (%)
margin (%)
Consol OCF (INR b)
Capex (INR b)
Interest (INR b)
FCF(INR b)
Consol net debt (INR b)
Net DER (x)
PAT (INR b)
ROE(%)
ROCE(%)
FY10
9
6
68
29
5,745
6.5
FY11
9
7
79
13
4,244
-26
5.9
0.1
0.1
0.3
4,244
-26
30
1
0
2
-1
9.8
0.4
2.9
15
10
FY12
10
8
86
16
4,345
2
7.0
5.6
1.5
0.0
904
-79
24
13
6
2
6
14.2
0.5
2.3
8
7
FY13
14
10
69
17
4,643
7
9.6
6.3
3.1
0.2
1,126
25
23
3
16
2
-15
29.1
0.9
2.0
7
5
FY14
15
11
69
9
4,289
-8
5.3
2.7
2.1
0.5
575
-49
11
5
10
2
-7
36.4
1.2
-0.1
-0.3
16
FY15
22
10
44
-10
4,798
12
3.8
1.1
2.5
0.3
393
-32
14
13
46
4
-37
63.7
2.1
0.1
0.3
25
FY16
22
11
52
17
4,974
4
14.1
9.4
3.0
1.7
1,245
217
24
10
22
7
-19
63.8
1.7
1.9
6
5
FY17E
22
13
60
16
4,975
0
17.0
11.6
3.5
1.9
1,304
5
25
21
2
9
10
58.4
1.4
3.9
10
7
FY18E
22
14
66
10
5,257
6
21.3
14.2
4.5
2.6
1,484
14
27
22
2
8
12
49.0
1.0
6.4
14
9
5,745
28
2
5
2
-4
21.3
1.5
3.2
7
12
Source: Company, MOSL
7 November 2016
4

Dalmia Bharat
Financials and Valuations
Income Statement
Y/E March
Net Sales
Change (%)
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income - Rec.
PBT bef. EO Exp.
EO Expense/(Income)
PBT after EO Exp.
Current Tax
Tax Rate (%)
Reported PAT
Minority and Associates
PAT Adj for EO items
Change (%)
Margin (%)
2011
19,690
-16.0
13,811
70.1
5,879
29.9
1,753
4,126
1,724
543
2,945
0
2,945
86
2.9
2,334
0
2,859
-11.0
14.5
2012
23,422
19.0
17,748
75.8
5,674
24.2
1,817
3,857
1,513
874
3,218
395
2,822
832
29.5
1,594
-41
2,269
-20.7
9.7
2013
27,906
19.1
21,564
77.3
6,342
22.7
2,059
4,282
2,314
769
2,738
0
2,738
1,336
48.8
1,402
569
1,971
-13.1
7.1
2014
28,670
2.7
25,407
88.6
3,263
11.4
2,422
842
3,151
2,081
-229
0
-229
644
-281.5
-873
789
-84
-104.3
-0.3
2015
33,662
17.4
29,116
86.5
4,546
13.5
2,716
1,830
4,344
2,413
-101
0
-101
469
-463.5
-570
661
92
-209.2
0.3
2016
63,672
89.2
48,593
76.3
15,079
23.7
4,528
10,551
7,256
2,349
5,644
0
5,644
2,991
53.0
2,653
-745
1,908
1,980.4
3.0
2017E
72,961
14.6
54,664
74.9
18,297
25.1
5,816
12,481
9,036
4,000
7,445
0
7,445
3,090
41.5
4,355
-428
3,927
105.8
5.4
(INR Million)
2018E
84,793
16.2
61,863
73.0
22,930
27.0
5,654
17,276
8,376
3,600
12,500
0
12,500
5,312
42.5
7,187
-739
6,448
64.2
7.6
Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Deferred Liabilities
Minority Interest
Total Loans
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Provisions
Net Current Assets
Appl. of Funds
E: MOSL Estimates
2011
162
27,615
27,777
715
4,086
18,890
51,467
37,765
1,846
35,919
1,167
6,592
10,179
2,976
1,008
4,543
1,651
3,965
3,774
191
6,214
51,467
2012
162
28,743
28,905
927
4,272
19,127
53,231
37,987
3,659
34,328
1,165
11,935
8,795
2,615
1,354
664
4,162
3,042
2,726
316
5,753
53,231
2013
162
30,517
30,679
1,638
5,181
35,744
73,242
49,979
7,410
42,569
5,503
11,804
16,139
3,520
2,572
999
9,048
6,899
6,241
658
9,240
73,242
2014
162
30,785
30,947
1,865
4,464
42,760
80,036
52,446
9,852
42,594
12,379
12,336
15,560
3,311
2,843
844
8,562
7,523
6,874
649
8,037
80,036
2015
162
30,539
30,702
4,279
7,477
84,797
127,254
84,123
25,890
58,233
19,142
16,905
30,147
7,293
5,253
5,281
12,320
16,816
15,833
984
13,331
127,254
2016
178
38,391
38,569
6,837
3,576
90,970
139,951
109,236
30,418
78,818
0
25,752
27,825
7,083
5,050
2,483
13,209
19,627
17,118
2,509
8,198
139,951
2017E
178
42,112
42,289
3,391
4,004
87,970
137,654
110,236
36,234
74,002
1,000
25,752
33,251
7,996
6,397
4,866
13,993
23,533
21,988
1,545
9,718
137,654
(INR Million)
2018E
178
48,354
48,531
3,391
4,743
82,970
139,635
107,236
41,888
65,348
6,000
25,752
40,178
8,595
6,969
9,280
15,332
24,825
23,231
1,594
15,353
139,635
7 November 2016
5

Dalmia Bharat
Financials and Valuations
Ratios
Y/E March
Basic (INR) *
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x) *
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
EV/Ton (US$)
Dividend Yield (%)
Return Ratios (%)
RoIC
RoE
RoCE
Working Capital Ratios
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Leverage Ratio (x)
Current Ratio
Debt/Equity
2011
40.1
56.8
342.1
1.3
4.1
2012
27.4
50.3
356.0
1.5
6.2
2013
24.3
49.6
377.8
2.0
9.6
2014
-1.0
28.8
381.1
2.0
NM
2015
1.1
34.6
378.1
1.5
NM
1,782.5
58.2
5.3
6.6
58.5
156
0.1
11.1
15.5
10.1
0.4
55.2
19
2.6
0.7
6.9
7.9
7.0
0.4
41
19
2.9
0.7
4.6
6.6
4.5
0.4
46
32
2.3
1.2
5.9
-0.3
15.9
0.4
42
39
2.1
1.4
14.7
0.3
25.3
0.3
79
70
1.8
2.8
2016
21.5
72.5
434.3
1.5
8.1
93.7
27.8
4.6
3.8
17.1
170
0.1
5.0
5.5
4.9
0.5
41
68
1.4
2.4
2017E
44.2
109.7
476.2
2.0
5.3
45.5
18.3
4.2
3.2
13.8
166
0.1
6.7
9.7
7.4
0.5
40
74
1.4
2.1
2018E
72.6
136.3
546.5
2.0
3.2
27.7
14.8
3.7
2.6
10.4
156
0.1
9.7
14.2
9.2
0.6
37
71
1.6
1.7
Cash Flow Statement
Y/E March
Oper. Profit/(Loss) before Tax
Interest/Dividends Recd.
Depreciation
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
CF from Operating incl EO
(inc)/dec in FA
Free Cash Flow
(Pur)/Sale of Investments
CF from investments
Issue of Shares
(Inc)/Dec in Debt
Interest Paid
Dividend Paid
CF from Fin. Activity
Inc/Dec of Cash
Add: Beginning Balance
Closing Balance
E: MOSL Estimates
2011
1,895
543
1,753
-2,971
4,454
955
903
-499
403
656
157
8,475
-10,072
-1,724
-118
-3,439
-2,380
2,203
-177
2012
3,883
874
1,817
-832
-3,419
9,008
12,648
-220
12,427
-5,343
-5,563
-1,042
237
-1,513
-141
-2,459
4,625
4,543
9,169
2013
5,118
936
1,847
-597
-3,452
10,102
3,457
-16,330
-12,872
132
-16,198
-1,088
16,617
-2,263
-189
13,077
336
664
1,000
2014
1,185
928
1,946
302
3,709
-1,899
5,462
-9,343
-3,881
-533
-9,876
-213
7,016
-2,355
-190
4,258
-155
999
844
2015
4,546
2,413
2,716
469
-857
7,347
13,356
-41,767
-28,411
-4,569
-46,335
-135
42,037
-4,344
-142
37,416
4,437
844
5,281
2016
15,079
2,349
4,528
2,991
2,335
12,103
10,329
-13,509
-3,181
-8,847
-22,357
6,114
6,173
-7,256
-155
4,876
-7,152
5,281
-1,871
(INR Million)
2017E
18,297
4,000
5,816
3,090
863
18,344
20,604
-2,000
18,604
0
-2,000
0
-3,000
-9,036
-206
-12,243
6,361
2,483
8,845
2018E
22,930
3,600
5,654
5,312
-1,221
22,438
22,032
-2,000
20,032
0
-2,000
0
-5,000
-8,376
-206
-13,582
6,450
4,866
11,316
7 November 2016
6

Dalmia Bharat
NOTES
7 November 2016
7

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
Dalmia Bharat
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
Disclosures
Disclosure of Interest Statement
Analyst ownership of the stock
Served as an officer, director or employee -
DALMIA BHARAT
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
Motilal Oswal Securities Ltd
7 November 2016
Motilal Oswal Tower, Level 9, Sayani Road, Prabhadevi, Mumbai 400 025
Phone: +91 22 3982 5500 E-mail: reports@motilaloswal.com
8