Gujarat State Petronet
BSE SENSEX
31,214
S&P CNX
9,711
11 August 2017
1QFY18 Results Update | Sector: Oil & Gas
CMP: INR180
TP: INR171 (-5%)
Neutral
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EBITDA marginally above estimate; in-line transmission volumes
Reported revenue rose 15% YoY (+21% QoQ) to INR2.9b, falling short of our
estimate of INR3.1b, primarily due to lower implied tariffs. EBITDA of INR2.8b
(+15% YoY, +21% QoQ) was ahead of our estimate of INR2.7b due to lower O&M
expenses at INR504/mscm (-69% YoY, -32% QoQ). PAT came in at INR1.5b (in-line;
+26% QoQ, +20% YoY) – the difference at PAT level declined due to (a) lower
depreciation at INR430m (est. of INR507; flat YoY, -7% QoQ), (b) lower interest
cost at INR106m (est. of INR130; -37% YoY, -9% QoQ) and (c) higher tax rate at
36.2% (est. of 34.3%, 25.8% in 4QFY17 and 35.5% in 1QFY17).
In-line transmission volumes; lower implied tariff
Transmission volumes grew 7% YoY (+15% QoQ) to 26.9mmscmd (in-line) in
1QFY18.
Implied transmission tariff stood at INR1,157/mscm (est. of INR1,200; +8%
YoY, -3% QoQ).
GSPL’s board has approved 11% equity investment in Swan LNG.
Swan LNG is
implementing Greenfield LNG Port facility, a Floating Storage & Regasification
Unit (FSRU) with a regasification capacity of 5mmtpa of LNG at Jafrabad
(Gujarat), the total project cost is ~INR40b.
Valuation and view
We model (a) transmission tariff of INR1,200/mscm in FY18/19 v/s actual
INR1,157 in 1QFY18 and (b) volumes of 28/32mmscmd in FY18/FY19 v/s actual
26.9mmscmd in 1QFY18.
Medium-term risk is some volumes (~5mmscmd) going away with the start of
RIL’s petcoke gasification project. For every 5% variation in volumes/tariff,
earnings change by ~6%. The stock trades at 13.6x FY19E adj. EPS of INR13.3.
Our 10x FY19E P/E based TP stands at INR171. Maintain
Neutral.
FY17
2Q
2,564
-0.7
2,245
87.6
-3.8
436
148
304
1,965
666
33.9
1,298
1,298
7
2.3
24.6
1,079
FY18E
2QE
3QE
3,238 3,173
26.3
18.9
2,828 2,768
87.3
87.3
26.0
21.7
507
507
130
130
253
253
2,444 2,384
839
818
34.3
34.3
1,605 1,566
1,605 1,566
24
32
2.9
2.8
28.0
28.5
1,200 1,200
FY17
FY18E
(INR Million)
FY18 Var. vs
1QE
est
3,086
-4.0%
19.7
2,690
2.6%
87.2
15.4
507 -15.3%
130 -18.7%
253 -35.0%
2,306
3.6%
792
9.1%
34.3
1,515
0.7%
1,515
0.7%
25
2.7
0.7%
27.0
-0.4%
1,200
-3.6%
Bloomberg
Equity Shares (m)
M.Cap.(INR b)/(USD b)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
GUJS IN
563.0
101.5/ 1.6
204 / 119
9/0/18
110
62.3
Financials & Valuations (INR b)
Y/E Mar
2017 2018E 2019E
10.3
12.6
14.4
Sales
8.9
11.2
12.8
EBITDA
5.0
6.3
7.5
Adj. PAT
8.8
11.1
13.3
Adj. EPS (INR)
11.5
26.5
19.1
EPS Gr. (%)
80
88.5
98.8
BV/Sh.(INR)
11.6
13.2
14.2
RoE (%)
9.9
11.3
12.0
RoCE (%)
20.5
16.2
13.6
P/E (x)
2.3
2.0
1.8
P/BV (x)
Estimate change
TP change
Rating change
Quarterly Performance
Y/E March
Net Sales
Change (%)
EBITDA
% of Net Sales
% Change
Depreciation
Interest
Other Income
PBT
Tax
Rate (%)
PAT
Adj. PAT
Change (%)
EPS (INR)
Transmission Vol. (mmscmd)
Implied adj. tariff (INR/mscm)
E: MOSL Estimates
1Q
2,579
-0.5
2,330
90.4
2.6
430
167
147
1,881
668
35.5
1,213
1,213
8
2.2
25.1
1,073
3Q
2,668
3.4
2,275
85.3
0.6
465
165
177
1,822
636
34.9
1,186
1,186
-9
2.1
26.2
1,095
4Q
2,446
5.5
2,013
82.3
-1.6
460
116
273
1,710
441
25.8
1,270
1,270
28
2.3
23.4
1,197
1Q
2,963
14.9
2,760
93.1
18.4
430
106
164
2,389
864
36.2
1,525
1,525
26
2.7
26.9
1,157
4QE
3,261 10,256 12,635
33.3
1.8
23.2
2,821 8,864 11,177
86.5
86.4
88.5
40.1
-0.5
26.1
586 1,791 2,030
163
596
529
342
901 1,012
2,414 7,378 9,631
828 2,411 3,349
34.3
32.7
34.8
1,585 4,966 6,281
1,585 4,966 6,281
25
7
26
2.8
8.8
11.2
28.6
24.8
28.0
1,243 1,111 1,200
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.
Swarnendu Bhushan – Research Analyst
(Swarnendu.Bhushan@MotilalOswal.com); +91 22 6129 1529
Abhinil Dahiwale
– Research Analyst
(Abhinil.Dahiwale@motilaloswal.com); +91 22 3980 4309

Gujarat State Petronet
Exhibit 1: Volumes down 7% YoY and 15% QoQ to 26.9mmscmd
Volume (mmscmd)
Tariff (INR/mscm)
37 35 33 31 31 29 27 22 22 21 20 21 22 24 23 23 24 24 25 24 25 25 26 23 27
Source: Company, MOSL
Exhibit 2: Implied tariff up 8% YoY and -3% QoQ to INR1,157/mscm
Tariff (INR/mscm)
Source: Company, MOSL
Exhibit 3: Planned 3 new pipelines still delayed: GSPL can start GIGL pipeline earlier than GITL
Company
GIGL (GSPL India Gasnet Ltd.)
GITL (GSPL India Transco Ltd.)
Pipeline Project
Mehsana-Bhatinda
Bhatinda-Srinagar
Mallavaram-Bhilwara
Pipeline
distance (Kms)
1,670
740
1,746
Capacity (mmscmd)
42
31
52
Capex
(INR b)
45
12
65
Source: Company, MOSL
Valuation and view
We model (a) transmission tariff of INR1,200/mscm in FY18/19 v/s actual
INR1,157 in 1QFY18 and (b) volumes of 28/32mmscmd in FY18/FY19 v/s actual
26.9mmscmd in 1QFY18.
The medium-term risk is some volumes (~5mmscmd) going away with the start
of RIL’s petcoke gasification project. For every 5% variation in volumes/tariff,
earnings change by ~6%. The stock trades at 13.6x FY19E adj. EPS of INR13.3.
Our 10x FY19E P/E based TP stands at INR171. Maintain
Neutral.
11 August 2017
2

Gujarat State Petronet
Story in charts
Exhibit 4: GSPL’s volumes growth contingent on gas
production/LNG imports
Volume (mmscmd)
Tariff (INR/mscm)
Exhibit 5: EBITDA margin to remain strong at ~89%
EBITDA Margin (%)
84
87 87
74
94 93
92 91
88
88 89 88
87 87 86
Source: Company, MOSL
Source: Company, MOSL
Exhibit 6: RoE declined from 30% to 11.7% in last six years
RoE %
29.8 28.4
RoCE %
Exhibit 7: Expect D/E ratio to decrease further
Net Debt / Equity (x)
23.3
19.9
13.4 12.6 11.6 11.6 13.2 14.2 14.5
7.1
9.5 10.1 10.5
17.5 17.0 16.0
5.7 6.8 8.0 7.7
14.5
10.8 10.3 9.7 9.9 11.3 12.0 12.4
Source: Company, MOSL
*New pipeline capex not factored
Source: Company, MOSL
Exhibit 8: Total capex of >INR122b for 3 new trunk pipelines
Capacity (mmscmd)
Capex (INR b)
52
31
12
65
Exhibit 9: GSPL 1-yr forward P/E
60
45
30
15
0
11.2
13.2
4.6
15.1
PE (x)
Median(x)
Peak(x)
Min(x)
Avg(x)
46.3
42
45
Mehs-Bhat
Bhat-Sringr
Mallav-Bhil
Source: Company, MOSL
Source: Company, MOSL
11 August 2017
3

Gujarat State Petronet
Financials and Valuations
Income Statement
Y/E March
Total Income
YoY (%)
Employee Costs
Operating expenses
Admin
EBITDA
% of Net Sales
Depr. & Exploration w/off
Interest
Other Income
PBT
Tax
Rate (%)
PAT
Adjusted PAT
Change (%)
2013
11,603
4
247
514
251
10,591
91.3
1,861
1,263
790
8,257
2,876
34.8
5,381
5,381
3.1
2014
10,473
-10
287
671
260
9,255
88.4
1,839
1,418
585
6,583
2,391
36.3
4,191
4,191
-22.1
2015
10,606
1
356
722
294
9,234
87.1
1,892
1,178
560
6,845
2,500
36.5
4,346
4,179
-0.3
2016
9,919
-6
361
898
0
8,660
87.3
1,829
799
656
6,688
2,235
33.4
4,454
4,454
6.6
2017
10,256
3
388
885
119
8,864
86.4
1,791
596
900
7,377
2,411
32.7
4,965
4,965
11.5
2018E
12,635
23
435
781
242
11,177
88.5
2,030
529
1,012
9,631
3,349
34.8
6,281
6,281
26.5
(INR Million)
2019E
2020E
14,406
15,733
14
9
487
546
890
972
276
301
12,753
13,914
88.5
88.4
2,118
2,191
647
647
1,404
1,991
11,392
13,067
3,910
4,485
34.3
34.3
7,482
8,582
7,482
8,582
19.1
14.7
(INR Million)
2019E
2020E
5,636
5,636
50,054
56,724
55,690
62,360
7,890
7,890
5,446
5,985
69,026
76,235
58,340
25,119
33,221
7,765
7,655
1,655
2,194
21,450
1,792
60,090
27,310
32,780
7,765
7,655
1,808
2,396
29,135
1,792
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Total Loans
Deferred Tax
Capital Employed
Gross Fixed Assets
Less: Depreciation
Net Fixed Assets
Capital WIP
Investments
Curr. Assets, L & Adv.
Inventory
Debtors
Cash & Bank Balance
Loans & Adv. and Other CA
Current Liab. & Prov.
Liabilities
Provisions
Net Current Assets
Application of Funds
E: MOSL Estimates
2013
5,627
23,779
29,406
13,389
3,867
46,661
46,197
13,682
32,515
5,260
1,740
772
2,541
8,531
1,176
2014
5,627
27,321
32,948
10,365
4,202
47,516
47,106
15,512
31,593
6,561
5,850
694
2,490
4,992
1,847
2015
5,630
30,601
36,231
8,879
4,504
49,613
48,193
17,539
30,654
7,765
6,487
1,102
1,504
4,352
3,540
2016
5,633
35,058
40,692
7,905
4,723
53,320
50,577
19,346
31,231
7,679
7,311
1,177
1,518
5,529
4,018
2017
5,636
39,324
44,960
5,012
4,719
54,690
51,727
20,070
31,657
6,864
7,655
1,123
1,216
8,026
1,792
2018E
5,636
44,221
49,856
7,890
4,975
62,722
57,030
23,001
34,029
7,765
7,655
1,452
1,924
14,175
1,792
5,162
711
7,146
46,661
5,797
715
3,512
47,516
4,877
913
4,708
49,613
5,003
140
7,099
53,320
3,519
124
8,515
54,690
5,946
124
13,273
62,722
6,582
124
20,385
69,026
6,973
124
28,035
76,235
11 August 2017
4

Gujarat State Petronet
Financials and Valuations
Ratios
Y/E March
Basic (INR)
Adj. EPS
Cash EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation (x)
P/E
Cash P/E
EV / EBITDA
EV / Sales
Price / Book Value
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
RoIC
Turnover Ratios
Debtors (No. of Days)
Fixed Asset Turnover (x)
Leverage Ratio
Net Debt / Equity (x)
Cash Flow Statement
Y/E March
Profit /(Loss) before Tax
Depreciation
Direct Taxes Paid
(Inc)/Dec in Wkg. Capital
Other op activities
CF from Op. Activity
(Inc)/Dec in FA & CWIP
Free Cash Flow
Other In activities
CF from Inv. Activity
Change in Equity
Inc / (Dec) in Debt
Dividends Paid
Interest
CF from Fin. Activity
Inc / ( Dec) in Cash
Add: Opening Balance
Closing Balance
E: MOSL Estimates
2013
9.6
12.9
52.3
1.0
12.2
2014
7.4
10.7
58.5
1.0
15.7
2015
7.4
11.1
64.4
1.2
18.2
2016
7.9
11.2
72.2
1.5
22.2
2017
8.8
12.0
79.8
1.7
22.6
2018E
11.1
14.7
88.5
2.1
22.0
2019E
13.3
17.0
98.8
2.5
22.0
2020E
15.2
19.1
110.6
2.9
22.3
18.9
14.0
10.4
9.5
3.5
0.6
24.2
16.8
12.0
10.6
3.1
0.6
24.3
16.3
12.0
10.4
2.8
0.7
22.8
16.2
12.6
11.0
2.5
0.8
20.5
15.0
11.7
10.1
2.3
0.9
16.2
12.2
9.0
7.9
2.0
1.2
13.6
10.6
7.3
6.5
1.8
1.4
11.8
9.4
6.2
5.5
1.6
1.6
19.9
14.5
19.1
53
0.3
13.4
10.8
15.4
88
0.2
12.6
10.3
15.3
69
0.2
11.6
9.7
14.3
56
0.2
11.6
9.9
14.7
56
0.2
13.2
11.3
18.3
56
0.2
14.2
12.0
21.4
56
0.2
14.5
12.4
24.1
56
0.3
0.3
0.3
0.2
0.2
0.0
0.0
-0.1
-0.2
2013
8,257
1,861
-2,246
-1,599
654
6,926
-3,822
3,104
543
-3,279
0
2,138
-654
-1,494
-9
3,638
4,892
8,530
2014
6,583
1,839
-2,068
-869
966
6,451
-2,401
4,050
-4,058
-6,459
0
-1,808
-658
-1,601
-4,067
-4,076
9,068
4,993
2015
6,603
1,892
-2,195
-871
839
6,268
-2,151
4,117
633
-1,518
17
-2,713
-658
-1,389
-4,743
7
4,345
4,352
2016
6,688
1,829
-1,994
-1,213
799
6,110
-2,384
3,725
214
-2,170
0
-974
-989
-799
-2,762
1,178
4,352
5,529
2017
7,377
1,791
-2,107
1,081
596
8,738
-1,150
7,588
-481
-1,631
0
-2,893
-1,121
-596
-4,609
2,497
5,529
8,026
2018E
9,631
2,030
-3,093
1,390
529
10,487
-5,303
5,184
0
-5,303
0
2,879
-1,385
-529
965
6,149
8,026
14,175
(INR Million)
2019E
2020E
11,392
13,067
2,118
2,191
-3,440
-3,946
163
36
647
647
10,880
11,995
-1,310
9,570
0
-1,310
0
0
-1,648
-647
-2,296
7,275
14,175
21,450
-1,750
10,245
0
-1,750
0
0
-1,912
-647
-2,559
7,686
21,450
29,135
11 August 2017
5

Gujarat State Petronet
Corporate profile
Company description
Exhibit 1: Sensex rebased
GSPL is the 2
nd
largest gas transmission company in
India with 2,239Kms of high pressure gas pipeline
network and 31mmscmd of firm GTAs for gas
transmission to various industries and CGD networks
in the state of Gujarat. GSPL’s parent, GSPC owns
37.7% stake in GSPL and has interest in both upstream
and downstream businesses. GSPL as the mid-stream
company of the group is the vehicle for transmission
of additional gas production by GSPC. In FY12 GSPL
promoted 2 SPVs (GIGL and GITL) for implementing 3
cross country gas pipelines.
Exhibit 2: Shareholding pattern (%)
Jun-17
Promoter
DII
FII
Others
37.7
30.2
17.5
14.7
Mar-17
37.7
30.3
17.2
14.9
Jun-16
37.7
30.1
16.5
15.7
Source: Capitaline
Source: MOSL/Bloomberg
Exhibit 3: Top holders
Holder Name
GUJARAT MARITIME BOARD
FRANKLIN INDIA MONTHLY INCOME PLAN
LIC OF INDIA PENSION PLUS MIXED FUND
PLATINUM ASIA FUND
GUJARAT URJA VIKAS NIGAM LTD.
% Holding
6.6
4.3
4.2
3.9
2.0
Source: Capitaline
Note: FII Includes depository receipts
Exhibit 4: Top management
Name
M M Srivastava
J N Singh
T Natarajan
Reena Desai
Designation
Chairman
Managing Director
Joint Managing Director
Company Secretary
Exhibit 5: Directors
Name
Bhadresh Mehta*
J N Singh
M M Srivastava
R Vaidyanathan*
Shridevi Shukla
Name
Sudhir Kumar Jain*
Sujit Gulati
T Natarajan
Yogesh Singh*
Source: Capitaline
*Independent
Exhibit 6: Auditors
Name
Ernst & Young
Manoj Hurkat & Associates
R K Patel & Co
RMA & Associates
Internal
Secretarial Audit
Cost Auditor
Statutory
Source: Capitaline
Type
Exhibit 7: MOSL forecast v/s consensus
EPS (INR)
FY18
FY19
FY20
MOSL
forecast
11.1
13.3
15.2
Consensus
forecast
11.2
12.3
13.7
Variation
(%)
-1.0
8.2
11.0
Source: Bloomberg
11 August 2017
6

Gujarat State Petronet
NOTES
11 August 2017
7

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 Securities Ltd. (MOSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOSL, the Research Entity (RE) as defined in the Regulations, is engaged in the business of providing Stock
broking services, Investment Advisory Services, Depository participant services & distribution of various financial products. MOSL is a subsidiary company of Motilal Oswal Financial Service Ltd. (MOFSL). MOFSL is a listed
public company, the details in respect of which are available on
www.motilaloswal.com.
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), Metropolitan Stock Exchange Of India Ltd. (MSE) for its stock broking activities & is Depository participant with Central Depository Services Limited
(CDSL) & National Securities Depository Limited (NSDL) and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products. Details of associate entities of Motilal Oswal Securities Limited are
available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/Associate%20Details.pdf
Pending Regulatory Enquiries against Motilal Oswal Securities Limited by SEBI:
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 requested SEBI to provide all documents, records, investigation report relied upon by SEBI which were referred in Show Cause Notice and also sought personal
hearing. The matter is currently pending.
MOSL, it’s associates, Research Analyst or their relative may have any financial interest in the subject company. MOSL and/or its associates and/or Research Analyst may have 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.
MOSL 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 MOSL even though there might exist an inherent conflict of interest in some of the stocks mentioned in the
research report.
Research Analyst may have served as director/officer, etc. in the subject company in the last 12 month period. MOSL and/or its associates may have received any compensation from the subject company in
the past 12 months.
In the last 12 months period ending on the last day of the month immediately preceding the date of publication of this research report, MOSL or any of its associates may have:
a)
managed or co-managed public offering of securities from subject company of this research report,
b)
received compensation for investment banking or merchant banking or brokerage services from subject company of this research report,
c)
received compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company of this research report.
d)
Subject Company may have been a client of MOSL or its associates during twelve months preceding the date of distribution of the research report.
MOSL 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. To enhance transparency, MOSL 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. MOSL 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 MOSL 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.
Terms & Conditions:
This report has been prepared by MOSL 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 MOSL. 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. MOSL will not treat recipients as customers by virtue of their receiving this 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.
Gujarat State Petronet
Disclosure of Interest Statement
Analyst ownership of the stock
Gujarat State Petronet
No
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 MOSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from MOSL 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 MOSL & 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
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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:
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. MOSL, 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 MOSL. 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
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be contrary to law, regulation or which would subject MOSL 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
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employees responsible for any such misuse and further agrees to hold MOSL or any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this
information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022-3980 4263; www.motilaloswal.com. Correspondence Address: Palm Spring
Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 3080 1000. Compliance Officer: Neeraj Agarwal, Email Id:
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Contact No.:022-30801085.
Registration details of group entities.: MOSL: NSE (Cash): INB231041238; NSE (F&O): INF231041238; NSE (CD): INE231041238; BSE (Cash): INB011041257; BSE(F&O): INF011041257; BSE(CD); MSE(Cash): INB261041231;
MSE(F&O): INF261041231; MSE(CD): INE261041231; CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412. AMFI: ARN 17397. Investment Adviser: INA000007100. Motilal Oswal Asset
Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670) offers PMS and Mutual Funds products. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) offers wealth
management solutions. *Motilal Oswal Securities Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs, Insurance and IPO products. * Motilal Oswal Commodities Broker Pvt. Ltd. offers Commodities
Products. * Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. offers Real Estate products. * Motilal Oswal Private Equity Investment Advisors Pvt. Ltd. offers Private Equity products
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