Sector Update| 1 June 2017
Automobiles
Maruti Suzuki
CMP: INR7,144
Stock Info
Bloomberg
Equity Shares (m)
M.Cap. (INR b)/(USD b)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
MSIL IN
302
2,025/31.6
7249 / 3868
5/22/55
TP: INR8,060 (+13%)
Buy
Vol below expectation 137k units (v/s est. 150k), + 11%YoY
Domestic vols up ~16% YoY driven by UV and mini segment; Exports
declined 36% YoY
Financials Snapshot (INR b)
Y/E MARCH
2017 2018E
Sales
680.3 806.6
EBITDA
104.7 127.9
Adj. PAT
74.2 88.9
Adj. EPS (INR)* 248.6 300.0
EPS Gr. (%)
36.6 20.6
BV/Sh. (INR)
1,197 1,390
RoE (%)
20.3 21.2
RoCE (%)
27.3 28.3
Payout (%)
37.1 34.7
Valuations
P/E (x)
28.7 23.8
P/CE (x)
21.3 17.8
EV/EBITDA (x)
18.0 14.2
Div. Yield (%)
1.0
1.2
*Cons.
2019E
937.2
154.5
110.2
370.9
23.6
1,634
22.3
29.4
32.9
19.3
14.8
11.3
1.4
MSIL’s May-17 wholesales negatively surprised and came in at 136,962 units (v/s est
149,650 units), 11.3% YoY growth (-9.4% MoM).
Domestic volumes grew by ~16% YoY (-10% MoM) to 130.7k (v/s est 140k) led by
growth in UV and mini segment. The miss was primarily led by normalization of Dzire
Tour (Apr-17 volume – 8,606 units v/s avg of 2.9k units in FY17), Swift (Apr-17 - 23,802
units v/s avg of 14k units in FY17) and transition of new CIAZ to Nexa dealerships
(inventory filling). Also new Dzire wholesale was only for part of May.
Retail volume grew at double digit, implying estimated inventory of under 4 weeks.
Mini segment recovery continued with ~18% growth – second consecutive month of
growth.
The compact segment grew by 4% YoY led by normalization of Swift hatchback and
Dzire Tour.
Mid-size segment led by Ciaz decreased ~9% YoY due to transition to Nexa channel.
Ciaz clocked in 4,724 units.
UVs continued their momentum, with a ~66% YoY growth, primarily aided by
incremental volumes of Vitarra Brezza, which continues to enjoy a waiting period of 4-
5 months.
Export volumes recorded ~36% YoY decline to 6,286 units (v/s est 9,600 units).
The stock trades at 23.8x/19.3x FY18E/19E consolidated EPS of ~INR300/371. Maintain
Buy.
Snapshot of volumes for May-17
YoY
Company Sales
May-17 May-16
YoY (%)
chg
11.3
3.5
18.1
4.3
-8.9
66.3
15.5
-36.3
Maruti Suzuki
136,962 123,034
LCVs
428
0
Vans
12,593 12,164
Mini Segment
39,089 33,105
Compact (incl Dzire
Tour)
51,234 49,109
Mid Size - CIAZ
4,724
5,188
UV (Ertiga, S-Cross) 22,608 13,596
Total Domestic
130,676 113,162
Export
6,286
9,872
MoM
MoM
Apr-17
(%) chg
151,215 -9.4
411
13,938
-9.6
38,897
0.5
63,584
7,024
20,638
144,492
6,723
-19.4
-32.7
9.5
-9.6
-6.5
FY18YTD FY17YTD
(%)
chg
288,177 249,603 15.5
839
0
26,531 26,684 -0.6
77,986 65,011 20.0
114,818 97,982 17.2
11,748 10,890 7.9
43,246 29,640 45.9
275,168 230,207 19.5
13,009 19,396 -32.9
FY18
estimate
1,776,723
1,500
164,170
453,989
721,668
72,182
231,693
1,645,202
131,521
Residual
Residual
Monthly
Gr. (%) Growth (%)
Run rate
13.3
12.9
148,855
-55.9
66
8.0
9.8
13,764
9.7
7.7
37,600
23.4
12.0
18.4
13.9
6.0
24.6
12.8
13.5
12.8
13.2
60,685
6,043
18,845
137,003
11,851
Jinesh Gandhi
(Jinesh@MotilalOswal.com); +91 22 3982 5416
Deep Shah
(Deep.S@MotilalOswal.com); +91 22 6129 1533;
Jigar Shah
(Jigar.Shah@MotilalOswal.com); +91 22 6129 1534
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.

Automobiles | Update
Mahindra & Mahindra
CMP: INR1,424
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INR b)/(USD b)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
MM IN
592.6
794.7/12.4
1509 / 1142
3/6/-10
TP: INR1,619 (+14%)
Buy
In line at 67,494 units(v/s est 67,225), up 6% YoY
Tractor growth at 11% YoY; while UV growth at 4%
Financials Snapshot (INR b)
Y/E MARCH
2017 2018E 2019E
Sales
437.9 497.0 562.5
EBITDA
47.7 56.1 64.4
NP(incl. MVML) 37.4 42.5 48.1
Adj. EPS (INR) * 62.5 71.0 80.3
EPS Gr. (%)
12.1 13.5 13.2
Cons. EPS (INR) 54.3 69.6 81.7
BV/Sh. (INR)
432.4 477.1 529.8
RoE (%)
14.2 14.2 14.4
RoCE (%)
13.3 13.2 13.5
Payout (%)
22.7 35.9 32.0
Valuations
P/E (x)
22.8 20.1 17.7
Cons. P/E (x)
26.2 20.5 17.4
P/BV (x)
3.3
3.0
2.7
May-17 volumes increased by 6% YoY to 67,494 units (v/s est 67,225 units), supported
by 11% YoY growth in tractors and 4% growth in UV segment.
Tractor sales were below estimates at 25,599 units (v/s est 28,000 units), registering a
~11% YoY growth (-1.5% MoM), helped by domestic tractor sales growth of 11% YoY at
24,575 units, while exports at 1,024 units grew by 18% YoY.
UV (incl pick-ups) sales increased by ~3% YoY to 36,694 units (v/s est 34,750 units).
The momentum in pick-ups continued with a 27% YoY growth, while passenger utility
vehicles increased by only 3% YoY.
LCV (>3.5t) and M&HCV sales declined by 7% and 13% YoY. Pre buying on the back of
aggressive discount post ban on BS-III vehicle has restricted sales in M&HCV segment.
The 3W volumes recovering gradually with a growth of ~5% YoY to 4,057 units (v/s est
3,650 units).
Speaking on the monthly performance, Rajan Wadhera, Automotive Division, M&M.
said, “We are happy with our overall performance in May 2017. Given the favorable
monsoon projections and the focused investment in the rural sector, we have a robust
outlook for future which is expected to spur demand. The implementation of GST will
be a significant game changer and we hope it benefits the auto industry. At Mahindra
we look forward to a growth momentum on the back of our existing product portfolio
as well as the upcoming new products”.
Rajesh Jejurikar, President - Farm Equipment Sector, Mahindra & Mahindra Ltd. said,
“We hope that the announcement of record production estimates for major crops,
coupled with higher MSP will drive positive sentiments and boost tractor demand in
this season.’’
The stock trades at 20.1x/17.7x FY18E/19E consolidated EPS of ~INR71/80. Maintain
Buy
Snapshot of volumes for May-17
YoY
Company Sales
Mahindra &
Mahindra
UV (incl. pick-ups)
LCV
Three-Wheelers
Tractors
May-17 May-16
67,494 63,674
36,694 35,530
1,144 1,257
4,057 3,869
25,599 23,018
YoY (%)
chg
6.0
3.3
-9.0
4.9
11.2
MoM
MoM
(%)
Apr-17
FY18YTD FY17YTD
(%) chg
chg
65,358
35,213
706
3,438
26,001
3.3
4.2
62.0
18.0
-1.5
132,852 126,923 4.7
71,907 72,525 -0.9
1,850
2,370 -21.9
7,495
7,624
-1.7
51,600 44,404 16.2
FY18
estimate
837,771
472,389
15,909
54,921
294,551
Residual
Residual
Monthly
Gr. (%) Growth (%)
Run rate
18.4
8.0
10.9
5.0
12.0
21.4
9.8
17.4
6.1
11.1
70,492
40,048
1,406
4,743
24,295
1 June 2017
2

Automobiles | Update
EICHER Motors
CMP: INR28,756
Stock Info
Bloomberg
EIM IN
Equity Shares (m)
27.2
M.Cap.(INR b)/(USD b)
644.0/9.6
52-Week Range (INR) 29983/18006
1, 6, 12 Rel. Per (%)
6/8/37
Financials Snapshot (INR b)
Y/E MARCH
2017 2018E 2019E
Net Income
70.3 91.4 109.5
EBITDA
21.7 29.7
36.4
Net Profit
16.7 24.2
30.8
Adj. EPS (INR) 613.8 892.0 1,135.1
EPS Gr. (%)
55.7 45.3
27.3
BV/Sh. (INR) 1,769 2,484 3,416
RoE (%)
40.3 41.9
38.5
RoCE (%)
27.1 31.3
30.5
Payout (%)
0.3
0.5
0.6
Valuations
P/E (x)
41.8 30.1
24.6
P/BV (x)
14.7 10.6
7.9
Div. Yield (%)
0.5
0.6
0.7
TP: INR30,402 (+6%)
Buy
RE (+25% YoY) in line and VECV (-21% YoY) above est
RE growth stable; pre buying impact VECV growth
RE volumes increased ~25% YoY to 60,696 units (in line with est. of 60,650 units).
VECV's overall volumes declined ~20.5% YoY (+47% MoM) to 4,539 units (v/s est. of
4,539 units). The drop in volumes across categories was led by shortage of BS-4
components and pre-buying impact in Mar-17.
Domestic LMD, HD and Buses volume declined ~5%, ~54% and ~4% respectively.
Consequently total domestic volume declined ~16% YoY to 3,953 units (v/s est of
3,412 units).
VECV exports declined ~42% to 586 units (better than est. of 500 units).
The stock trades at 30.1x/24.6x FY18E/FY19E EPS. Maintain Buy.
Snapshot of volumes for May-17
YoY
Company Sales
Eicher Motors
Royal Enfield
VECV
Domestic LMD
Domestic HD
Domestic Buses
Total Domestic
Exports
May-17 May-16
60,696 48,604
4,539
5,710
2,003
2,110
499
1,084
1,451
1,511
3,953
4,705
586
1,005
YoY (%)
chg
24.9
-20.5
-5.1
-54.0
-4.0
-16.0
-41.7
MoM
(%)
MoM
Apr-17
FY18YTD FY17YTD
chg
(%) chg
60,142
3,077
1,178
356
1,044
2,578
499
0.9
47.5
70.0
40.2
39.0
53.3
17.4
120,838
7,616
3,181
855
2,495
6,531
1,085
96,801
11,036
4,191
2,200
2,955
9,346
1,690
24.8
-31.0
-24.1
-61.1
-15.6
-30.1
-35.8
FY18
estimate
827,197
64,598
40,596
13,628
13,497
67,722
8,978
Residual
Residual
Monthly
Gr. (%) Growth (%)
Run rate
24.1
10.6
56.6
22.7
10.0
34.2
11.7
24.0
20.3
72.2
43.4
18.1
48.8
24.4
70,636
5,698
3,742
1,277
1,100
6,119
789
1 June 2017
3

Automobiles | Update
Ashok Leyland
CMP: INR91
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INR b)/ (USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
AL IN
2,845.9
254.0/3.8
112 / 74
3/3/-29
TP: INR117 (+28%)
Buy
Above estimate at 9.07k (-8% YoY, v/s est ~7.8k)
MHCVs declined 17.8% while LCVs grew by 21.9% YoY
Financials Snapshot (INR b)
Y/E MARCH
2017 2018E 2019E
Sales
200.2 248.3 285.3
EBITDA
22.0 27.3
32.3
NP
13.4 16.1
20.6
Adj. EPS (INR)
4.6
5.5
7.1
EPS Gr. (%)
8.1 19.5
28.5
BV/Sh. (INR)
20.9 24.0
28.4
RoE (%)
23.3 24.4
26.9
RoCE (%)
21.8 21.3
24.5
Payout (%)
33.9 36.4
31.9
Valuations
P/E (x)
19.9 16.6
12.9
P/BV (x)
4.4
3.8
3.2
EV/EBITDA (x) 11.9
9.0
7.1
Div. Yield (%)
1.7
2.2
2.5
May-17 volume decline was lower than estimates by 8.1% YoY (+28% MoM) to 9,071
units (v/s est. 7,800 units) led by pre buying impact in Mar-17 coupled with shortage
of BS-4 components also impacted supply.
M&HCV volumes which account for ~68% of the total volumes declined by ~18% YoY
(+36% MoM) to 6,139 units (v/s est 5,150 units).
LCVs (Dost & Stile) at 2,932 units (v/s est 2,650 units) grew by ~22% YoY as volumes
have been recovering post demonetization impact.
The stock trades at 16.6x/12.9x FY18E/FY19E EPS and at 9.0/7.1x EV/EBITDA. Maintain
Buy.
Snapshot of volumes for May-17
YoY
Company Sales
Ashok Leyland
CV (ex LCV)
LCV (Nissan JV)
May-17 May-16
9,071
6,139
2,932
9,875
7,469
2,406
YoY (%)
chg
-8.1
-17.8
21.9
MoM
(%)
MoM
FY18YTD FY17YTD
Apr-17
chg
(%) chg
7,083
28.1
16,154 20,057 -19.5
4,525
35.7
10,664 15,342 -30.5
2,558
14.6
5,490
4,715
16
FY18
estimate
168,804
123,938
44,867
Residual
Residual
Monthly
Gr. (%) Growth (%)
Run rate
16.4
22.1
15,265
9.4
15.6
11,327
41.2
45.5
3,938
1 June 2017
4

Automobiles | Update
Hero MotoCorp
CMP: INR3,735
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INR b)/ (USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
HMCL IN
199.7
635/9.5
3813 / 2844
9/-1/4
TP: INR3,622 (-3%)
Neutral
In line at ~634k (v/s est 640k); growth of 8.7% YoY
Financials Snapshot (INR b)
Y/E MARCH
2017 2018E 2019E
Sales
284.7 320.2 343.8
EBITDA
46.3 54.6
54.7
NP
33.8 39.6
40.2
Adj. EPS (INR) 169.1 198.1 201.2
EPS Gr. (%)
6.9 17.1
1.6
BV/Sh. (INR) 506.3 596.0 688.8
RoE (%)
35.7 35.9
31.3
RoCE (%)
34.5 34.7
30.4
Payout (%)
57.8 52.2
51.4
Valuations
P/E (x)
22.1 18.9
18.6
P/BV (x)
7.4
6.3
5.4
EV/EBITDA (x) 14.8 12.2
12.0
Div. Yield (%)
2.3
2.4
2.4
HMCL’s May-17 volumes grew in line with our estimates at 633,884 units (+8.7% YoY,
est 640,000 units) due to strong retail off-take backed by ongoing marriage season.
Going forward in June-17, company has indicated strong retail momentum to continue
as demand will continue to remain strong on the back of normal monsoon outlook
coupled with planned new launches will also contribute to growth.
HMCL commenced production at its Bangladesh subsidiary, HMCL Niloy Bangladesh
Ltd which has an installed capacity of 150,000 units per annum.
HMCL trades at 18.9/18.6x FY18E/19E EPS. Maintain Neutral.
Snapshot of volumes for May-17
YoY
Company Sales
Hero MotoCorp
YoY (%)
chg
633,884 583,117
8.7
May-17 May-16
MoM
(%)
MoM
FY18YTD FY17YTD
Apr-17
chg
(%) chg
591,306 7.2 1,225,190 1,195,856 2.5
FY18
estimate
7,378,969
Residual
Residual
Monthly
Gr. (%) Growth (%)
Run rate
10.7
12.5
615,378
1 June 2017
5

Automobiles | Update
TVS Motor
CMP: INR 535
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INR b)/ (USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
TP: INR581 (+9%)
Buy
TVSL IN
475.1
Growth in Motorcycle and Scooters offsets fall in Mopeds
235.5/3.7
549 / 280
4/31/69
TVS Motor’s May-17 sales were above estimate at 282,007 units (v/s est. 265,500
Above estimate at 282k (v/s est 265.5k), +15.7% YoY
Financials Snapshot (INR b)
Y/E MARCH 2017E 2018E 2019E
Sales
121.4 149.5 189.7
EBITDA
8.6 12.5
19.0
Adj. PAT
5.6
7.9
12.7
EPS (INR)
11.7 16.7
26.7
EPS Gr. (%)
14.1 42.4
60.0
BV/Sh (INR)
50.7 63.8
85.1
RoE (%)
25.6 29.2
35.9
RoCE (%)
22.8 28.8
38.4
Payout (%)
25.6 21.6
20.2
Valuations
P/E (x)
45.5 32.0
20.0
P/BV (x)
10.6
8.4
6.3
EV/EBITDA (x) 31.0 21.2
13.7
Div. Yield (%)
0.5
0.6
0.8
units), growth of 15.7% YoY (+14.5% MoM). Domestic volumes increased by 15.9% YoY
while exports grew by 14.3% YoY.
Scooter volumes increased by 30.9% YoY (+5.2% MoM) to 85,681 units (v/s est. 83,000
units).
Motorcycle volumes grew sharply by 22.3% YoY (+18.1% MoM) to 118,014 units (est
105,000 units).
Mopeds dispatches declined for the second consecutive month in May-17 and fell by
6.1% to 71,731 units (v/s est. 71.500 units).
3Ws volume grew 20.5% YoY led by strong growth in exports market. While domestic
3W volume continued to decline.
Total exports grew by 14.3% YoY led by growth in 2W and 3W exports.
The stock trades at 32x/20x FY18E/FY19E EPS. Maintain Buy.
Snapshot of volumes for May-17
YoY
Company Sales
TVS Motor
Motorcycles
Scooters
Mopeds
Three-Wheelers
Total Domestic
Total Exports
May-17 May-16
282,007
118,014
85,681
71,731
6,581
241,390
40,617
243,783
96,485
65,434
76,401
5,463
208,238
35,545
YoY (%)
chg
15.7
22.3
30.9
-6.1
20.5
15.9
14.3
MoM
MoM
Apr-17
(%) chg
246,310 14.5
99,890 18.1
81,443
5.2
59,674 20.2
5,303
24.1
206,089 17.1
40,221
1.0
FY18YTD FY17YTD
528,317
217,904
167,124
131,405
11,884
447,479
80,838
470,879
186,976
128,775
144,919
10,209
406,980
63,899
(%)
chg
12.2
16.5
29.8
-9.3
16.4
10.0
26.5
FY18
estimate
2,980,098
1,234,151
1,006,269
1,002,175
66,776
2,480,777
499,321
Residual
Residual
Monthly
Gr. (%) Growth (%)
Run rate
2.0
0.0
245,178
15.1
14.8
101,625
15.5
13.1
83,915
10.1
13.7
87,077
17.2
17.4
5,489
-0.7
-2.8
203,330
20.8
19.7
41,848
1 June 2017
6

Automobiles | Update
NOTES
1 June 2017
7

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
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
| Update
or
Automobiles
offer, invitation
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 -
Companies where there is interest
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
1 June 2017
Motilal Oswal Tower, Level 9, Sayani Road, Prabhadevi, Mumbai 400 025
Phone: +91 22 3982 5500 E-mail: reports@motilaloswal.com
8