8 November 2017
2QFY18 Results Update | Sector: Metals
Rain Industries
BSE SENSEX
33,219
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, INRm/ Vol m
Free float (%)
S&P CNX
10,303
RINDL IN
336
114.3 / 1.8
352 / 41
83/211/561
286
58.9
CMP: INR340 TP: INR492 (+45%)
Buy
CPC market tailwinds driving strong earnings growth
Raising earnings and target price; Maintaining Buy
Rain Industries (RAIN) reported very strong earnings growth, driven by structural
changes in market dynamics for its carbon business. Consolidated EBITDA increased
49% YoY to INR6.7b, beating our estimate of INR5b by a wide margin, due to both
stronger margins (USD118/t v/s est. of USD85) and volumes (475kt v/s est. of 425kt
CPC volumes) in the carbon business. Chemical division was affected by fire at one
of its plant in Europe, seasonally low demand and higher input prices. Despite
lower prices, margins in the cement business improved due to the benefit of waste
heat recovery and operational improvements. Adj. PAT rose 29% YoY to INR2.5b.
We believe earnings momentum will continue because:
Average realized price of CPC at USD337/t is still significantly lower than
USD500-600/t seen during 2010-11. At that time, the key driver of prices was
shortage of key input (GPC). On the other hand, the market is now facing
shortage of CPC, while the GPC market is not as tight. Further, RAIN has
invested in desulfurization plants and mixers, which allow it to use higher sulfur
GPC relative to competitors. Therefore, we believe CPC margins for RAIN will
settle at a higher level than the USD120/t achieved in 2011. We are raising
estimates for CPC volumes by 3%/8%/2% for CY17E/CY18E/CY19E.
Similarly, we expect CT Pitch margins to benefit from supply-side correction in
its key market and additional demand from aluminum production ramp-up in
North America and graphite industry. As the 200kt pet tar distillation expansion
project in Europe is on track, we are raising volumes by 9% to 700kt for CY19E.
We are also raising the estimates for carbon margins from USD100/t to
USD120/t. As a result, consolidated EBITDA has increased by 17/22/21% for
CY17E/CY18E/CY19E and target price to INR492/sh. (earlier INR362), based on
SOTP. Maintain
Buy.
INR million
CY16
2Q
3Q
4Q
25,315 22,400 23,831
-4
-17
1
4,441 4,536
4,082
17.5
20.2
17.1
1,513 1,430
1,440
862
855
927
322
159
53
2,388 2,410
1,767
162
-224
-933
2,550 2,185
834
987
466
626
38.7
21.3
75.1
1,563 1,719
208
-2
42
64
1,403 1,901
1,077
-12.3
45.7 -1,505.7
1Q
24,680
14
4,414
17.9
1,536
1,366
206
1,718
-670
1,048
400
38.2
647
55
1,263
331.5
CY17
CY16 CY17E
2Q
3Q
4QE
26,371 30,508 32,300 93,164 113,860
4
36
36
-9
22
4,678 6,738 7,302 15,056 23,132
17.7
22.1
22.6
16.2
20.3
1,483 1,463 1,483 5,867 5,964
1,295 1,335 1,175 3,461 5,171
475
256
242
704 1,179
2,375 4,195 4,887 6,432 13,175
0
0
0
-996
-670
2,375 4,195 4,887 5,436 12,505
819 1,662 1,496 1,648 4,377
34.5
39.6
30.6
30.3
35.0
1,556 2,534 3,390 3,788 8,128
41
78
40
69
213
1,515 2,456 3,351 4,715 8,585
8.0
29.2 211.1
46.8
82.1
v/s Est.
3QE
%
28,680
6
28
4,961
36
17.3
1,472
-1
1,111
20
225
13
2,603
61
0
2,603
61
762
118
29.3
1,841
38
40
93
1,801
36
3.3
Financials & Valuations (INR b)
Y/E Dec
2016 2017E 2018E
Sales
113.9 133.9 146.1
EBITDA
23.1
28.6
30.8
NP
8.6
13.1
14.5
Adj. EPS (INR)
25.5
38.9
43.0
EPS Gr(%)
165.2
52.3
10.7
BV/Sh. (INR)
112.7 149.2 189.9
RoE (%)
25.2
29.7
25.4
RoCE (%)
21.3
26.2
26.4
P/E (x)
13.3
8.7
7.9
P/BV
3.0
2.3
1.8
Estimate change
TP change
Rating change
Quarterly Performance (Consolidated)
Y/E December
Net Sales
Change (YoY %)
EBITDA
As % of Net Sales
Interest
Depreciation
Other Income
PBT (before EO Inc.)
EO Income(exp)
PBT (after EO Inc.)
Total Tax
% Tax
Reported PAT
Min. Int. & assc.
Adjusted PAT
Change (YoY %)
1Q
21,617
-15
1,997
9.2
1,484
817
171
-133
0
-133
-432
324.5
299
6
293
-23.9
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.
Sanjay Jain – Research Analyst
(SanjayJain@MotilalOswal.com); +91 22 6129 1523
Dhruv Muchhal – Research Analyst
(Dhruv.Muchhal@MotilalOswal.com); +91 22 6129 1549

Rain Industries
Exhibit 1: Operating metrics
Y/E December
1Q
CY16
2Q
3Q
4Q
833
502
130
176
68
472
308
228
372
464
897
231
23,831
1
4,082
17.1
3,310
59
476
104
296
627
1Q
734
411
142
181
60
535
368
260
420
532
1,138
238
24,680
14
4,414
17.9
3,746
76
544
135
124
232
CY17
2Q
3Q
755
425
155
175
60
556
404
299
498
530
1,183
254
26,371
4
4,678
17.7
4,002
82
465
120
211
379
827
475
172
180
54
505
442
337
601
521
1,259
217
30,508
36
6,738
22.1
6,336
118
133
38
269
533
4QE
842
502
160
180
65
569
446
350
600
530
1,200
250
32,300
36
7,302
22.6
6,568
120
507
120
228
400
CY16
2,976
1,644
535
682
267
2,137
CY17E
3,158
1,813
629
716
239
2,165
CY18E
3,264
1,904
640
720
260
2,450
CY19E
3,449
1,999
700
750
330
2,625
3QE
765
425
160
180
65
569
v/s Est.
%
8
12
8
0
-17
-11
6
5
20
-2
5
-13
6
36
28
39
-97
-68
-95
33
Sales (kt)
Carbon
633
795
715
CPC
341
441
360
CTPitch
108
142
155
Others
157
194
155
Chemical
70
75
54
Cement
580
603
482
Realization
Carbon (USD/Ton)
346
333
342
CPC
255
234
240
CTPitch
382
394
442
Others
480
478
511
Chemicals (USD/Ton) 888
935 1,114
Cement (INR/bag)
217
228
251
Net Sales
21,617 25,315 22,400
Change (YoY %)
-15
-4
-17
EBITDA
1,997 4,441 4,536
As % of Net Sales
9.2
17.5
20.2
Carbon EBITDA
1,328 3,358 3,915
USD/t
31
63
82
Chemical EBITDA
429
716
452
USD/t
91
143
125
Cement EBITDA
240
367
169
INR/t
414
609
351
331
416
478
478
418
238
313
400
400
320
400
533
600
600
500
482
528
530
530
530
949
1,193
1,200
1,200 1,200
231
240
250
250
250
93,164 113,860 133,889 146,072 28,680
-9
22
18
9
28
15,056 23,132 28,587 30,787 4,961
16.2
20.3
21.4
21.1
17.3
11,911 20,652 25,456 26,901 4,961
60
100
120
120
85
2,073 1,649
2,028
2,574 4,961
115
106
120
120
120
1,072
832
1,103
1,313 4,961
502
384
450
500
400
Exhibit 2: Target price calculations
Y/E December
Target multiple
Carbon
Chemical
Cement
EBITDA (INR m)
Carbon
Chemical
Cement
EV (USD/t)
Target EV
Net Debt (Rs m)
Residual equity value
Target price (INR/share)
2013
6.5
6.5
7.0
11,953
2,434
591
22
97,653
74,394
2014
6.5
6.5
7.0
9,905
1,881
434
14
79,647
67,731
2015
6.5
6.5
8.0
9,981
1,710
1,801
67
90,400
67,352
2016
6.5
6.5
9.0
11,911
2,073
1,072
42
100,544
64,002
2017E
6.5
6.5
10.0
20,652
1,649
832
35
153,269
60,219
93,050
277
2018E
6.5
6.5
10.0
25,456
2,028
1,103
49
189,674
50,666
139,008
413
2019E
6.5
6.5
10.0
26,901
2,574
1,313
58
204,712
39,133
165,578
492
8 November 2017
2

Rain Industries
Exhibit 3: CPC US prices (USD/t) – October 2017
600
500
400
300
200
China
Source: MOSL, Company
US
Source: MOSL, Company
down 17%
0.84
0.70
1.32
Exhibit 4: CPC exports by China and US
1H CY16
1H CY17
up 21%
1.67
Exhibit 5: Carbon segment EBITDA per ton (USD)
Source: MOSL, Company
Exhibit 6: Chemical segment EBITDA per ton (USD)
171 164
117
75
169
131
195
94
101
125
71
38
143
91
125
104
135
120
38
120
134 139
149
-17
Source: MOSL, Company
Exhibit 7: Chemical segment EBITDA per ton (USD)
Source: MOSL, Company
8 November 2017
3

Rain Industries
Exhibit 8: Consol. revenue bridge – INR m
Exhibit 9: Consol. adj EBITDA bridge – INR m
Source: MOSL, Company
Source: MOSL, Company
Exhibit 10: Carbon segment volume bridge - kt
Exhibit 11: Carbon segment revenue bridge – INR m
Source: MOSL, Company
Source: MOSL, Company
Exhibit 12: Chemical segment volume bridge – INR m
Exhibit 13: Chemical segment EBITDA bridge – INR m
Source: MOSL, Company
Source: MOSL, Company
8 November 2017
4

Rain Industries
Financials and Valuations
Income Statement (Consolidated)
Y/E December
Net sales
Change (%)
Total Expenses
EBITDA
% of Net Sales
Depn. & Amortization
EBIT
Net Interest
Other income
PBT before EO
EO income
PBT after EO
Tax
Rate (%)
Reported PAT
Minority interests
Associate
Adjusted PAT
Change (%)
2012
53,614
-4.9
42,524
11,090
20.7
1,200
9,891
2,076
665
8,480
-1,651
6,828
2,180
31.9
4,648
71
6,229
-6.2
2013
117,443
119.1
102,465
14,978
12.8
3,568
11,410
5,933
566
6,043
-1,809
4,235
367
8.7
3,868
10
-12
5,654
-9.2
2014
119,370
1.6
107,150
12,220
10.2
3,470
8,750
6,079
369
3,041
-2,464
577
-121
-20.9
698
-189
-1
3,349
-40.8
2015
102,185
-14.4
88,694
13,492
13.2
3,278
10,213
5,763
499
4,949
35
4,984
1,962
39.4
3,022
-217
-7
3,198
-4.5
2016
93,164
-8.8
79,627
13,537
14.5
3,461
10,076
5,867
704
4,913
-996
3,918
1,648
42.1
2,270
69
42
3,238
1.2
2017E
113,860
22.2
90,728
23,132
20.3
5,171
17,961
5,964
1,179
13,175
-670
12,505
4,377
35.0
8,128
213
8,585
165.2
2018E
133,889
17.6
105,302
28,587
21.4
4,822
23,765
5,944
1,152
18,972
18,972
5,726
30.2
13,246
168
13,078
52.3
(INR Million)
2019E
146,072
9.1
115,285
30,787
21.1
5,009
25,779
5,940
1,158
20,996
20,996
6,352
30.3
14,644
167
14,477
10.7
Balance Sheet
Y/E December
Share Capital
Reserves
Share holders funds
Minority Interest
Loans
LT
ST
Defferred tax liability
(net)
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Investments
Curr. Assets
Inventories
Sundry Debtors
Cash and Bank
Loans and Advances
Curr. Liability & Prov.
Sundry Creditors
Other Liabilities & prov.
Application of Funds
E: MOSL Estimates
2012
683
24,833
25,517
121
69,268
67,413
1,856
4,118
99,024
44,290
7,096
37,194
5,866
16
64,476
9,850
5,649
46,657
2,320
8,528
6,021
2,507
99,024
2013
673
31,560
32,233
416
82,905
78,804
4,102
4,721
120,275
150,718
58,095
92,623
2,721
76
50,845
20,002
15,371
8,512
6,961
25,989
12,575
13,414
120,275
2014
673
28,785
29,458
216
76,726
72,624
4,102
4,225
110,625
148,683
61,565
87,118
2,691
68
45,675
15,337
13,712
8,995
7,630
24,926
10,008
14,918
110,625
2015
673
28,702
29,375
24
75,957
71,855
4,102
3,844
109,200
150,241
64,843
85,398
4,108
59
43,665
16,210
11,968
8,605
6,882
24,030
10,228
13,802
109,200
2016
673
29,471
30,144
716
74,493
70,391
4,102
2,833
108,185
157,425
68,304
89,121
2,352
99
38,707
12,678
10,637
10,491
4,901
22,094
7,831
14,263
108,185
2017E
673
37,248
37,921
716
71,493
67,391
4,102
2,833
112,963
158,925
73,476
85,449
5,705
99
46,648
16,894
13,579
11,274
4,901
24,939
10,676
14,263
112,963
2018E
673
49,519
50,192
716
67,493
63,391
4,102
2,833
121,233
166,894
78,298
88,596
2,471
99
56,439
19,132
15,579
16,827
4,901
26,372
12,109
14,263
121,233
(INR Million)
2019E
673
63,189
63,862
716
63,493
59,391
4,102
2,833
130,904
172,944
83,306
89,638
1,171
99
67,711
21,399
17,051
24,360
4,901
27,715
13,451
14,263
130,904
8 November 2017
5

Rain Industries
Financials and Valuations
Ratios
Y/E December
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuations
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
Return Ratios (%)
EBITDA Margins
Net Profit Margins
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Debtor (Days)
Inventory (Days)
Creditors (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Debt/Equity
2012
18.2
21.7
74.7
1.1
7.1
2.2
1.8
0.5
0.7
3.3
2.8
20.7
11.6
26.9
14.2
21.8
1.2
0.5
38
67
41
7.6
4.8
0.9
2013
16.8
27.4
95.8
1.0
13.7
2.1
1.3
0.4
0.7
5.8
2.8
12.8
4.8
19.7
11.8
15.9
0.8
1.0
48
62
39
2.0
1.9
2.3
2014
10.0
20.3
87.6
1.0
10.0
4.4
2.2
0.5
0.7
6.8
2.3
10.2
2.8
10.9
9.4
10.1
0.8
1.1
42
47
31
1.8
1.4
2.3
2015
9.5
19.3
87.3
1.0
12.7
4.0
2.0
0.4
0.8
5.9
2.6
13.2
3.1
10.9
11.2
12.1
0.7
0.9
43
58
37
1.8
1.8
2.3
2016
9.6
19.9
89.6
1.0
15.6
35.3
17.1
3.8
1.9
13.2
0.3
14.5
3.5
10.9
12.7
13.7
0.6
0.9
42
50
31
1.8
1.7
2.1
2017E
25.5
40.9
112.7
2.0
9.4
13.3
8.3
3.0
1.5
7.5
0.6
20.3
7.5
25.2
21.3
23.4
0.7
1.0
44
54
34
1.9
3.0
1.6
2018E
38.9
53.2
149.2
2.0
6.2
8.7
6.4
2.3
1.2
5.8
0.6
21.4
9.8
29.7
26.2
29.8
0.8
1.1
42
52
33
2.1
4.0
1.0
2019E
43.0
57.9
189.9
2.0
5.6
7.9
5.9
1.8
1.1
5.0
0.6
21.1
9.9
25.4
26.4
31.0
0.8
1.1
43
53
34
2.4
4.3
0.6
Cash Flow Statement
Y/E March
EBITDA
Non cash exp. (income)
(Inc)/Dec in Wkg. Cap.
Tax Paid
CF from Op. Activity
(Inc)/Dec in FA + CWIP
(Pur)/Sale of Investments
Acquisition in subsidiaries
Int. & Divident Income
CF from Inv. Activity
Equity raised/(repaid)
Debt raised/(repaid)
Dividend (incl. tax)
Interest & equiv. paid
CF from Fin. Activity
(Inc)/Dec in Cash
Add: opening Balance
Misc
Closing Balance
2012
11,090
98
3,651
-819
14,020
-5,284
929
409
-3,946
-276
30,993
-440
-2,479
27,798
37,872
8,294
492
46,657
2013
14,978
-5
-7,954
-927
6,091
-3,654
64
-37,510
183
-40,916
-203
212
-776
-4,299
-5,066
-39,890
46,657
1,745
8,512
2014
12,220
-1,925
4,340
-1,722
12,913
-3,903
202
102
-3,599
-1,670
-336
-6,911
-8,917
396
8,512
87
8,995
2015
13,492
1,045
-587
-1,567
12,382
-4,987
321
184
-4,482
-1,782
-405
-5,767
-7,954
-54
8,995
-337
8,605
2016
13,537
-1,069
4,454
-3,037
13,885
-3,086
36
142
-2,908
-2,492
-506
-5,900
-8,898
2,079
8,605
-193
10,491
2017E
23,132
-4,313
-4,377
14,442
-4,853
(INR Million)
2018E
28,587
-2,805
-5,726
20,055
-4,735
2019E
30,787
-2,396
-6,352
22,039
-4,750
1,179
-3,674
-3,000
-807
-5,964
-9,772
996
10,491
-213
11,274
1,152
-3,583
-4,000
-807
-5,944
-10,752
5,721
11,274
-168
16,827
1,158
-3,592
-4,000
-807
-5,940
-10,747
7,700
16,827
-167
24,360
8 November 2017
6

Rain Industries
NOTES
8 November 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
Rain Industries
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.
Disclosure of Interest Statement
Analyst ownership of the stock
Rain Industries
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
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