8 November 2017
Update
| Sector:
Healthcare
BSE SENSEX
33,371
S&P CNX
10,350
Lupin
CMP: INR861
TP: INR1,000(+16%)
Buy
Goa and Indore plant receives Warning Letter
~1/3
rd
of pending ANDAs from these two facilities
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 (%)
LPC IN
452
1,572/846
-22/-42/-65
385.1
5.8
1,765.2
53.2
No data integrity issue was highlighted in the warning letter. Two key things
highlighted by US FDA in the Warning Letter was – 1) investigation of OOS studies
was not proper; 2) hold time study procedure requires changes
LPC is required to do retrospective OOS and hold time studies to come out of WL
status
~40-50 pending ANDA approvals are from these two facilities. LPC is planning to
initiate site transfer for ~12 pending ANDAs.
Amongst future launches Levothryroxine and Tamiflu are not from these plants.
Financials Snapshot (INR b)
2017 2018E 2019E
Y/E Mar
Net Sales
174.9 160.4 182.3
EBITDA
44.9
34.5
38.3
PAT
25.6
17.0
19.3
EPS (INR)
56.6
37.6
42.7
Gr. (%)
12.4 -33.6
13.7
BV/Sh (INR)
298.9 326.0 358.2
RoE (%)
20.9
12.0
12.5
RoCE (%)
13.3
8.3
8.7
P/E (x)
15.2
22.9
20.1
P/BV (x)
2.9
2.6
2.4
Shareholding pattern (%)
As On
Sep-17 Jun-17 Sep-16
Promoter
46.8
46.7
46.7
DII
12.4
9.8
7.2
FII
27.7
30.9
34.7
Others
13.1
12.6
11.4
FII Includes depository receipts
Stock Performance (1-year)
Lupin
Sensex - Rebased
1,950
1,650
1,350
1,050
750
Warning Letter is a negative surprise:
Lupin announced that Goa and
Pithampur (Unit-2) based formulations plant received import alert. This is a
negative surprise as the company in its 2QFY18 earnings call (few days back)
said that they are expecting full resolution in next two months. Given that
existing business in US is coming under pressure due to new competition in
Glumetza and Fortamet and channel consolidation, new approvals are key to
drive growth and sustain current business.
No data integrity issue but needs to do retrospective studies:
LPC
management mentioned that no data integrity issue was highlighted by US FDA
in WL. LPC is required to do retrospective OOS and hold time studies to come
out of WL status. LPC believes that retrospective studies will have to be done
from Jan 2014. However, LPC will get more clarity regarding this in its meeting
with US FDA. LPC has done retrospective studies for OOS at Goa plant in 2015
and 2016 and can use that data also. LPC believes that the company will be
ready for re-inspection in 6 months. Currently we assume resolution of WL at
these two plants by 2H FY19E (typically WL resolution takes 12-18 months.
Key plants for LPC; early resolution critical:
Out of 158 pending ANDAs, ~40-50
are pending from these two facilities. Out of these ~20-25 approvals were
expected in next 12- 18 months. LPC is planning to initiate site transfer for ~12
key ANDAs. Though Tamiflu and Levothyroxine approval will not get impacted
due to this, key approvals including Ranexa, Toprol XL, Sevelamer and few
other ER products will get stuck due to this. We also expect margins to come
under pressure due to negative operating leverage and remediation cost
related to retrospective studies and consultant cost. LPC does not expect any
supply disruption due to issuance of WL.
Near term pressure to persist; stock factoring most of the negatives:
LPC has
invested ~INR60b on R&D between FY16-18E (much higher than what it
invested in a decade prior to that). GMP compliance is key to monetize this
investment. Though in near term stock will remain under pressure, key
approvals in US and resolution of WL status (expected in 12 months) will help
create value in 12-18 months. We maintain Buy with a TP of INR1,000 @ 20x
1H FY20E PER (vs INR1,215 @21x 1H FY20E PER). We have cut FY19E EPS by
~17% as we build impact of WL at Goa and Indore (Unit-2).
Kumar Saurabh – Research analyst
(Kumar.Saurabh@MotilalOswal.com); +91 22 6129 1519
Ankeet Pandya – Research analyst
(Ankeet.Pandya@MotilalOswal.com)
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.

Lupin
Exhibit 1: Most frequent 483 observations found in last few years (%)
FY10
Procedures not in writing, fully followed
Scientifically sound laboratory controls
Investigations of discrepancies, failures
Absence of Written Procedures
Environmental Monitoring System
22.1
12.7
14.7
11.9
2.0
FY11
26.5
16.4
16.2
16.9
1.5
FY12
21.5
14.6
15.1
14.7
0.8
FY13
22.5
14.3
19.0
15.4
4.5
FY14
22.5
16.9
14.6
13.5
6.5
FY15
23.6
19.2
18.3
14.0
12.2
FY16
21.3
19.2
18.2
12.3
11.3
Source: Company, MOSL
Key Con-call takeaways
The observations are not related to any data integrity.
The warning letter won’t impact the current US business of US, but is expected
although it will to lead to a delay in approvals of key products.
483s were mainly related to handling out of specifications obtained during the
testing of commercial drugs and Hold time study.
Company guided that it will be ready for re-inspection in after six 6 months.
It takes 12-18 months to get resolution, but management is targeting to get it
resolved earlier.
Of the total 158 pending ANDAs, 40-50 are from these two facilities.
Company plans to initiate site transfer for ~12 products (will transfer key
products first).
Extended Release products will require bio studies as the company does site
transfer of ER products.
Levothyroxine and Tamiflu have not been filed from these two facilities.
Both the plants will get clearance together.
8 November 2017
2

Lupin
Story in charts
Exhibit 2: Growth to slow down due to regulatory issues
Formulations (INR b)
API (INR b)
11
12
12
12
11
20.2
17.3
Exhibit 3: Margins to remain under pressure due to pricing
pressure
EBITDA (INR b)
EBITDA margins (%)
28.3
26.6
26.4 25.7
20.3
21.5 21.0 22.8
9
9
49
9
60
85
11
100
114
125
160
147
172
12
14
23
30
36
38
45
34
38
48
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E
Exhibit 4: R&D expense to be in the range of 12-13%
R&D expense (INR b)
% of sales
13.2
11.3
8.3
7.4
7.4
8.2
8.6
12.7
12.0 12.5
Exhibit 5: EPS to remain muted till FY20
EPS (INR/ share)
4.8
5.2
7.1
9.3
11.0 16.0 23.1 19.3 22.8 26.8
19
18
29
39
53
50
57
38
43
57
FY11 FY12 FY13 FY14 FY15 FY16E FY17 FY18E FY19E FY20E
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E
8 November 2017
3

Lupin
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 (%)
2013
96,413
36.1
22,700
23.5
3,322
19,378
410
279
0
19,246
5,842
30.4
263
13,142
13,142
66.0
2014
112,866
17.1
30,028
26.6
2,610
27,418
267
165
1,000
28,317
9,622
34.0
331
18,364
17,364
32.1
2015
127,700
13.1
36,196
28.3
4,347
31,849
98
2,398
0
34,148
9,704
28.4
412
24,032
24,032
38.4
2016
142,085
11.3
37,534
26.4
4,635
32,899
446
1,877
0
34,330
11,536
33.6
88
22,707
22,707
-5.5
2017
174,943
23.1
44,931
25.7
9,122
35,809
1,525
1,065
0
35,349
9,785
27.7
-11
25,574
25,574
12.6
2018E
160,442
-8.3
34,495
21.5
10,778
23,717
2,111
1,600
0
23,206
6,150
26.5
85
16,972
16,972
-33.6
2019E
182,264
13.6
38,275
21.0
11,380
26,896
2,026
1,500
0
26,369
6,988
26.5
85
19,297
19,297
13.7
(INR Million)
2020E
211,217
15.9
48,157
22.8
12,282
35,876
1,942
1,500
0
35,434
9,567
27.0
85
25,782
25,782
33.6
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
2013
895
51,147
52,042
10,240
1,632
64,509
41,138
16,840
24,298
3,107
21
55,305
19,489
21,870
4,349
9,597
23,926
19,241
4,684
31,379
64,509
2014
897
68,419
69,316
5,992
1,779
77,756
45,638
19,283
26,355
3,041
1,785
62,970
21,295
24,641
7,975
9,060
23,597
18,818
4,779
39,374
77,756
2015
899
87,842
88,741
4,710
1,182
94,874
45,445
19,174
26,271
5,760
16,584
64,510
25,036
26,566
4,814
8,095
35,662
28,299
7,363
28,848
94,874
2016
901
108,943
109,844
71,193
1,239
182,596
55,887
23,262
32,625
9,812
75
107,473
31,787
45,498
8,379
21,808
40,975
32,318
8,658
66,498
182,596
2017
903
134,072
134,975
84,426
-1,128
218,619
55,265
8,902
46,363
7,150
220
129,117
36,423
43,073
27,994
21,626
42,378
34,576
7,801
86,739
218,619
2018E
903
146,289
147,192
84,426
-1,128
230,921
68,285
24,402
43,883
6,925
220
138,971
30,223
41,997
45,010
21,741
41,947
29,682
12,265
97,024
230,921
2019E
903
160,830
161,733
84,426
-1,128
245,547
81,192
35,781
45,411
6,812
220
156,130
34,333
47,709
52,221
21,867
45,895
33,547
12,349
110,235
245,547
(INR Million)
2020E
903
181,857
182,760
84,426
-1,128
266,659
94,043
48,063
45,980
6,756
220
181,882
39,540
55,288
65,049
22,006
51,049
38,442
12,607
130,834
266,659
8 November 2017
4

Lupin
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 (%)
Asset Turnover (x)
Debtors (No. of Days)
Inventory (No. of Days)
Leverage Ratios (%)
Net Debt/Equity (x)
2013
29.4
36.8
116.3
4.0
15.9
2014
38.7
44.5
154.6
6.0
16.0
2015
53.5
63.1
197.4
7.5
16.9
2016
50.4
60.7
243.8
7.5
17.9
17.1
14.2
3.5
3.2
11.9
0.9
28.5
23.2
25.4
1.5
83
74
0.1
28.6
26.5
29.7
1.5
80
69
0.0
30.4
29.1
34.4
1.3
76
72
0.0
22.9
16.8
18.8
0.8
117
82
0.6
2017
56.6
76.8
298.9
9.0
18.6
15.2
11.2
2.9
2.5
9.8
1.0
20.9
13.3
14.9
0.8
90
76
0.4
2018E
37.6
61.5
326.0
9.0
28.0
22.9
14.0
2.6
2.6
12.3
1.0
12.0
8.3
9.6
0.7
96
69
0.3
2019E
42.7
67.9
358.2
9.0
24.6
20.1
12.7
2.4
2.3
10.9
1.0
12.5
8.7
10.8
0.7
96
69
0.2
2020E
57.1
84.3
404.7
9.0
18.4
15.1
10.2
2.1
1.9
8.4
1.0
15.0
10.6
13.8
0.8
96
68
0.1
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
2013
22,700
278
-5,166
-5,652
0
12,160
-4,497
7,663
7
0
-4,490
475
-5,317
-410
-2,095
-7,348
323
4,025
4,348
2014
30,028
165
-4,368
-9,475
1,000
17,349
-6,098
11,251
-1,764
0
-7,862
1,593
-4,248
-267
-2,939
-5,861
3,626
4,349
7,975
2015
36,196
2,398
7,364
-10,300
0
35,657
-17,191
18,466
-14,799
0
-31,991
-1,389
-1,282
-98
-4,058
-6,828
-3,161
7,975
4,814
2016
37,534
1,877
-34,084
-11,479
0
-6,152
-71,217
-77,369
16,509
0
-54,708
2,459
66,483
-446
-4,071
64,425
3,565
4,814
8,379
2017
44,931
1,065
-626
-12,152
0
33,219
-24,759
8,460
-145
0
-24,904
4,348
13,233
-1,525
-4,755
11,300
19,615
8,379
27,994
2018E
34,495
1,600
6,731
-6,150
0
36,676
-12,795
23,881
0
0
-12,795
0
0
-2,111
-4,755
-6,866
17,016
27,994
45,010
2019E
38,275
1,500
-6,000
-6,988
0
26,787
-12,795
13,992
0
0
-12,795
0
0
-2,026
-4,755
-6,781
7,211
45,010
52,221
(INR Million)
2020E
48,157
1,500
-7,771
-9,567
0
32,319
-12,795
19,524
0
0
-12,795
0
0
-1,942
-4,755
-6,697
12,827
52,221
65,049
8 November 2017
5

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.
Lupin
Disclosure of Interest Statement
Analyst ownership of the stock
Lupin
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
Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any
investment or investment activity to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these securities,
products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research
Analysis in Hong Kong.
For U.S.
Motilal Oswal 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
directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would
be contrary to law, regulation or which would subject 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
person accessing this information specifically agrees to exempt MOSL or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOSL or any of its affiliates or
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:
na@motilaloswal.com,
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
8 November 2017
6