Grasim Industries
BSE SENSEX
32,942
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, INRm
Free float (%)
S&P CNX
10,187
GRASIM IN
Margin improvement in VSF and Chemical segments
657
YoY/QoQ numbers not comparable due to merger of ABNL
794.7/12.2
Strong realization drives profits: In 2QFY18, standalone revenue stood at
1300/652
INR40.37b, EBITDA at INR7.85b and PAT at INR6.14b. Realization improved
4/16/39
YoY in the VSF and Chemical segments. Tax rate stood at 27.4% v/s 22.2% in
1514.0
59.9
the corresponding period last year. VFY EBITDA contribution was ~INR610m
14 November 2017
2QFY18 Results Update | Sector: Cement
CMP: INR1209 TP: INR1,302(+8%)
Neutral
Financials & Valuations (INR b)
2018E 2019E
Y/E Mar
Net Sales
449.4
551.3
EBITDA
97.5
127.9
PAT
38.3
54.5
EPS (INR)
81.9
116.8
Gr. (%)
20.8
42.5
BV/Sh (INR)
749.3
861.0
RoE (%)
11.5
14.5
RoCE (%)
11.9
13.3
P/E (x)
14.8
10.4
P/BV(x)
1.6
1.4
2020E
616.0
148.4
62.3
133.5
14.3
989.5
14.4
14.0
9.1
1.2
Estimate change
TP change
Rating change
N.A.
for 2QFY18 (earlier part of the ABNL business).
VSF – realization uptick drives profits:
Volumes
increased 5% YoY on a like-
to-like basis due to inventory restocking by the domestic value chain.
Realization rose 5% YoY, driven by higher global VSF prices. Realization was
weaker QoQ due to the impact of GST. VSF margin stood at 22% (+3pp QoQ,
flat YoY), led by better realization. The lagged effect of softening pulp prices
should be seen in 2HFY18.
Chemical segment – realizations up 19% YoY: Volumes rose 7% YoY on a like-
to-like basis. ECU realizations increased 19% YoY, led by higher caustic
prices, partially offset by negative chlorine realization. Chemical revenue
stood at INR11.68b, with margins of 24.4% (+1.2pp YoY, +1.9pp QoQ).
Margins were impacted by an increase in power cost.
Valuation view:
Grasim’s long-term holding discount to its investment in
Ultratech has been ~40-45%. We expect the company to continue
maintaining its long-term holding discount for its 60% and 57% stakes in
Ultratech and ABCL, respectively. Hence, we value its investments in
Ultratech and ABCL at a 40% discount to current market price, and
investments in other group companies at ~50% discount. We thus arrive at
fair value of INR1,302/share, implying an 8% upside from the current levels.
Maintain
Neutral.
Var.
(%)
0
-3
35
42
Quarterly Performance (Standalone) (INR m)
Y/E March
FY17
FY18
FY17 FY18E
FY18
(Standalone)
1Q
2Q
3Q
4Q
1Q
2Q
3QE
4QE
2QE
VSF Volume (ton)
121,000 123,994 122,000 133,000 121,000 134,000 134,200 115,794 499,994 504,994 134,000
YoY Change (%)
17.8
9.00
1.1
2.31
0.00
8.07
10.00 -12.94
6.8
1.0
5.0
VSF Realization (INR/ton) 128,039 130,713 137,438 139,960 142,124 137,249 149,808 145,558 135,837 143,685 141,124
YoY Change (%)
13.0
12.0
9.0
11.0
11.0
5.0
9.0
4.0
11.6
5.8
8.0
Net Sales
23,959 24,887 25,260 28,761 27,403 40,373 30,270 10,753 103,457 108,798 29,929
YoY Change (%)
23.8
17.4
9.7
13.1
14.4
62.2
19.8
-62.6
15.3
5.2
20.3
EBITDA
5,078
5,301
5,428
5,254
5,553
7,852
8,012
8,170 21,548 29,587
5,514
Margins (%)
21.2
21.3
21.5
18.3
20.3
19.4
26.5
76.0
20.8
27.2
18.4
Depreciation
1,104
1,119
1,106
1,133
1,103
1,664
1,700
1,695
4,461
6,161
1,160
Interest
231
156
107
83
73
427
440
393
576
1,333
45
Other Income
781
3,587
553
304
658
2,688
450
1,204
4,739
5,000
2,800
PBT before EO Items
4,525
7,612
4,769
4,343
5,036
8,449
6,322
7,286 21,249 27,093
7,109
Extraordinary Inc/(Exp)
0
0
0
0
0
-540
0
0
0
0
0
PBT after EO Items
4,525
7,612
4,769
4,343
5,036
7,909
6,322
7,286 21,249 27,093
7,109
Tax
1,317
1,690
1,455
1,188
1,564
2,164
1,897
2,503
5,649
8,128
2,133
Rate (%)
29.1
22.2
30.5
27.4
31.1
27.4
30.0
34.4
26.6
30.0
30.0
Reported PAT
3,209
5,923
3,314
3,155
3,472
5,745
4,426
4,783 15,600 18,965
4,976
Adj. PAT
3,209
5,923
3,314
3,155
3,472
6,137
4,426
4,783 15,600 18,965
4,976
Margins (%)
13.4
23.8
13.1
11.0
12.7
15.2
14.6
44.5
15.1
17.4
16.6
YoY Change (%)
251.6
55.2
21.9
72.7
8.2
3.6
33.6
51.6
57.0
21.6
-16.0
E: MOSL Estimates
Abhishek Ghosh – Research analyst
(Abhishek.Ghosh@MotilalOswal.com); +91 22 3982 5436
19
11
15
23
Pradnya Ganar – Research analyst
(Pradnya.Ganar@motilaloswal.com); +91 22 3980 4322
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.

Grasim Industries
Exhibit 1:
SOTP valuation
Grasim+ABNL merged entity
Ultratech's market cap
Grasim's 60% stake in Ultratech
ABCL value ( at current market cap)
Grasim's 57% stake in ABCL
Total value of Holding in UTCL and ABCL
Holdco discount
Value in UTCL and ABCL post holdco
Value of VSF+Chemical business+ABNL standalone business (valuing it 6x FY19 EBITDA)
Group investments at 50% discount
Grasim Standalone Net Debt-2QFY18
Equity value of Grasim
No of shares
Value per share of Grasim
(INR)
CMP
(INR)
Upside (%)
INR m
1196933
718160
419,621
239184
957343
40%
574406
209979
69,077
-2740
856,202
657
1,302
1,209
8%
Source: Company, MOSL
Exhibit 2:
VSF Business Performance
2QFY18
Production (ton)
Sales volume (ton)
Net Turnover (INR M)
Avg. Realizations (INR/ton)
PBIDT Margin (%)
PBDIT (INR M)
134,000
134,000
21,190
137,249
22.1
4,680
2QFY17
123,994
123,994
17,400
130,713
21.3
3,710
% YoY
8.1
8.1
21.8
5.0
0.8
26.1
1QFY18
121,000
121,000
18,360
142,124
19.0
3,490
% QoQ
10.7
10.7
15.4
-3.4
3.1
-
Source: MOSL, Company
Highlights of management conference call
Viscose Industry
Demand for VSF is growing at a double rate than for competing fibers.
VSF prices remained firm during the quarter, led by plants closures/downturn in
China due to environmental factors.
VSF demand in India is growing at ~8% (+200bp higher than global demand).
Grasim will continue to focus on expanding usage and application of VSF in the
domestic textile market by leveraging on the brand LIVA.
Chemical Business
Supply constraints due to environmental considerations in China and weather
disruption in the US led to a sharp increase in international caustic prices.
Demand is expected to stay robust for caustic soda.
The quarter witnessed a recovery in chlorine prices; however, oversupply
situation continues.
New capacity additions will lead to higher caustic supply.
Brownfield expansion at Vilayat from 220K TPA to 365K TPA expected to be
commissioned by 4QFY18.
14 November 2017
2

Grasim Industries
Financial Services
With the listing of Aditya Birla Capital Ltd, the NBFC achieved a highest-ever
lending book, and the long-term issuer rating was upgraded to ‘AAA’.
AMC business is the 4th largest in India, with highest-ever AUM market share at
10.7%, while domestic equity market share is 9.9% as of 1HFY18.
Cement Business
Acquired assets are expected to cash break even by June 2018.
Higher petcoke prices are affecting energy costs.
Exhibit 3:
Grasim Capital Expenditures (INR Crore)
Source: MOSL, Company
Valuation and view
Grasim’s long-term holding discount to its investment in Ultratech has been ~40-
45%. We expect the company to continue maintaining its long-term holding
discount for its 60% and 57% stakes in Ultratech and ABCL, respectively. Hence, we
value its investments in Ultratech and ABCL at a 40% discount to current market
price, and investments in other group companies at ~50% discount. We thus arrive
at fair value of INR1,302/share, implying an 8% upside from the current levels.
Maintain
Neutral.
14 November 2017
3

Grasim Industries
Financials and Valuations
Consolidated Income Statement
Y/E March
Net Sales
Change (%)
EBITDA
Change (%)
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income - Rec.
PBT before EO items
Change (%)
EO Exp
PBT after EO items
Tax
Tax Rate (%)
Reported PAT
PAT Adj for EO items
Change (%)
Margin (%)
Less: Minority Interest
Consolidated PAT
Change (%)
2013
276,447
10.7
56,590
6.4
20.5
12,521
44,070
3,241
8,841
49,669
-8.6
-2,044
51,714
14,672
28.4
37,041
35,577
-13.5
12.9
9,998
25,580
-20.8
2014
290,042
4.9
45,946
-18.8
15.8
14,575
31,371
4,473
8,964
35,862
-27.8
-1,247
37,110
8,595
23.2
28,514
27,556
-22.5
9.5
7,799
19,757
-22.8
2015
324,376
11.8
47,348
3.1
14.6
15,632
31,715
6,674
9,487
34,528
-3.7
95
34,434
10,159
29.5
24,274
24,341
-11.7
7.5
6,836
17,505
-11.4
2016
344,875
6.3
64,045
35.3
18.6
18,338
45,707
7,181
6,616
45,142
30.7
279
44,863
12,246
27.3
32,617
34,547
41.9
10.0
9,866
24,681
41.0
2017
360,684
4.6
73,851
15.3
20.5
18,076
55,775
7,024
9,478
58,229
29.0
0
58,229
17,067
29.3
41,162
42,456
22.9
11.8
10,783
31,673
28.3
2018E
449,351
24.6
97,505
32.0
21.7
23,685
73,820
14,490
10,800
70,130
20.4
0
70,130
20,734
29.6
49,396
49,396
16.3
11.0
11,139
38,257
20.8
2019E
551,311
22.7
127,906
31.2
23.2
27,348
100,558
17,329
11,601
94,830
35.2
0
94,830
24,293
25.6
70,538
70,538
42.8
12.8
16,027
54,511
42.5
(INR M)
2020E
616,007
11.7
148,402
16.0
24.1
28,643
119,759
16,994
10,802
113,567
19.8
0
113,567
31,197
27.5
82,370
82,370
16.8
13.4
20,056
62,314
14.3
Consolidated Balance Sheet
Y/E March
Equity Share Capital
Reserves
Net Worth
Loans
Deferred liabilities
Minority Interest
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Investments
Goodwill
Curr. Assets
Inventory
Account Receivables
Cash and Bank Balance
Others
Curr. Liability & Prov.
Account Payables
Other Liabilities
Provisions
Net Current Assets
Appl. of Funds
2013
918
195,648
196,565
95,614
23,013
62,210
377,402
283,322
107,804
175,517
60,843
80,108
30,097
94,078
37,408
21,863
2,292
32,515
63,240
28,811
21,135
13,295
30,837
377,402
2014
918
215,226
216,144
96,812
28,033
69,358
410,347
352,065
122,379
229,686
30,000
76,108
32,768
108,787
42,565
25,092
3,967
37,163
67,003
32,459
21,807
12,737
41,784
410,347
2015
919
230,479
231,398
119,302
34,103
76,818
461,620
426,008
138,011
287,997
25,000
72,553
32,834
121,964
47,885
26,474
4,617
42,989
78,728
37,195
25,569
15,963
43,236
461,620
2016
934
273,360
274,293
90,231
30,249
87,288
482,062
334,010
21,447
312,563
17,873
85,057
30,155
150,116
41,488
30,020
23,072
55,537
113,703
24,039
83,524
6,140
36,413
482,062
2017
934
312,934
313,869
79,266
35,184
97,019
525,338
356,793
38,863
317,930
12,963
120,441
29,944
146,194
42,314
30,096
23,070
50,714
102,135
30,770
65,124
6,242
44,059
525,337
2018E
934
348,863
349,798
257,104
37,758
108,158
752,819
389,756
62,548
327,209
15,000
308,768
29,944
159,520
62,909
35,948
6,740
53,922
87,624
43,587
26,961
17,075
71,896
752,817
2019E
934
401,034
401,971
247,660
39,575
124,185
813,392
424,755
89,895
334,860
15,001
345,374
29,944
195,716
77,184
44,105
8,270
66,157
107,506
53,477
33,079
20,950
88,210
813,389
(INR M)
2020E
934
460,998
461,931
242,661
41,874
144,241
890,707
459,754
118,538
341,216
15,002
405,984
29,944
218,682
86,241
49,281
9,240
73,921
120,121
59,753
36,960
23,408
98,561
890,707
E: MOSL Estimates; Consol numbers don’t include Aditya Birla Capital
14 November 2017
4

Grasim Industries
Financials and Valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
P/BV
EV/ EBITDA
Dividend Yield (%)
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Debtor (Days)
Asset Turnover (x)
Leverage Ratio
Debt/Equity (x)
2013
55.7
68.3
428
4.5
8.4
2014
43.0
47.8
471
4.2
10.1
2015
38.1
43.8
504
3.6
9.7
2016
52.9
62.4
588
5.0
10.0
2017
67.8
77.4
672
5.0
7.8
2018E
81.9
97.9
749
5.0
6.1
2019E
116.8
133.5
861
5.0
4.3
2020E
133.5
151.2
989
5.0
3.8
22.9
2.1
12.4
0.4
17.8
1.8
9.6
0.4
14.8
1.6
6.4
0.4
10.4
1.4
8.4
0.4
9.1
1.2
6.4
0.4
13.9
14.2
12.4
29
0.7
9.6
10.2
8.0
32
0.7
7.8
8.8
6.5
30
0.7
9.8
10.6
9.1
32
0.7
10.8
12.2
10.8
30
0.7
11.5
11.9
13.2
29
0.6
14.5
13.3
17.3
29
0.7
14.4
14.0
19.2
29
0.7
0.5
0.4
0.5
0.3
0.3
0.7
0.6
0.5
Consolidated Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Interest/Dividends Recd.
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
EO Items
CF frm Op. incl EO
(inc)/dec in FA
Free Cash Flow
(Pur)/Sale of Invest.
CF from Invest.
Issue of Shares
(Inc)/Dec in Debt
Interest Paid
Dividend Paid
CF from Fin. Activity
Inc/Dec of Cash
Add: Beginning Balance
Closing Balance
2013
56,590
8,841
-11,450
2,509
56,490
2,044
58,535
-73,743
-15,208
-6,483
-80,225
2,458
25,257
-3,241
-2,160
22,313
623
3,252
3,875
2014
45,946
8,964
-3,575
-9,272
42,063
1,247
43,311
-37,901
5,410
1,328
-36,573
1,825
1,197
-4,473
-2,003
-3,454
3,284
2,292
5,576
2015
47,348
9,487
-4,089
-802
51,943
595
52,539
-68,943
-16,405
3,489
-65,454
-558
22,490
-6,674
-1,694
13,565
650
3,967
4,617
2016
64,045
6,616
-16,100
25,278
79,839
-279
79,561
-35,777
43,783
-9,825
-45,603
20,690
-29,071
-7,181
-2,476
-18,038
15,920
4,617
20,537
2017
73,851
9,478
-12,133
-7,647
63,549
0
63,549
-18,533
45,016
-35,173
-53,705
10,366
-10,965
-7,024
-2,463
-10,086
-242
23,072
22,829
2018E
97,505
10,800
-18,160
-44,167
45,977
0
45,977
-35,000
10,977
-188,327
-223,327
2
177,839
-14,490
-2,330
161,021
-16,329
23,070
6,741
2019E
127,906
11,601
-22,475
-14,784
102,248
0
102,248
-35,000
67,248
-36,606
-71,606
2
-9,444
-17,329
-2,341
-29,111
1,530
6,740
8,271
(INR Million)
2020E
148,402
10,802
-28,899
-9,381
120,924
0
120,924
-35,000
85,924
-60,610
-95,610
-2
-4,999
-16,994
-2,352
-24,347
967
8,270
9,237
14 November 2017
5

Grasim Industries
Corporate profile
Company description
Grasim is a diversified company with cement and
VSF being core business, accounting for 65% and
35% of revenues. Its other business includes
chemicals and textiles. Post-acquisition of Jaypee’s
Gujarat plant by UltraTech Cement, it would be in
number one position in the Indian cement industry
with total capacity under control of 70mt.
Source: MOSL/Bloomberg
Exhibit 1: Sensex rebased
Exhibit 2: Shareholding pattern (%)
Sep-17
Promoter
DII
FII
Others
40.1
13.6
26.0
20.3
Jun-17
31.3
17.0
28.4
23.3
Sep-16
31.3
15.1
26.3
27.4
Source: Capitaline
Exhibit 3: Top holders
Holder Name
Life Insurance Corpn Of India
Citibank N.A. New York Nyadr Department
Europacific Growth Fund
Aberdeen Emerging Markets Fund
Reliance Capital Trustee Company Limited
A/C Reliance Growth Fund
% Holding
5.8
3.3
2.6
1.2
1.1
Source: Capitaline
Note: FII Includes depository receipts
Exhibit 4: Top management
Name
Kumar Mangalam Birla
Dilip Gaur
Rajashree Birla
Shailendra K Jain
Designation
Chairman
Managing Director
Director
Director
Exhibit 5: Directors
Name
Arun K Thiagarajan
B V Bhargava
Cyril Shroff
M L Apte
N Mohan Raj
Name
Om Prakash Rungta
Thomas M Connely
Sushil Agarwal
Hutokshi Wadia
Source: Capitaline
*Independent
Exhibit 6: Auditors
Name
BNP & Associates
D C Dave & Co
Deloitte Haskins & Sells LLP
G P Kapadia & Co
Type
Secretarial Audit
Cost Auditor
Statutory
Statutory
Source: Capitaline
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY18
FY19
FY20
MOSL
forecast
81.9
116.8
133.5
Consensus
forecast
70.2
89.7
107.0
Variation (%)
16.6
30.3
24.7
Source: Bloomberg
14 November 2017
6

Grasim Industries
NOTES
14 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
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.
Grasim Industries
Disclosure of Interest Statement
Analyst ownership of the stock
Grasim 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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