5/14/2021 Motilal Oswal Financial Services

9 May 2021
4QFY21 Results Update | Sector: Cement

UltraTech Cement
Es mate change
CMP: INR6,485 TP: INR8,050 (+24%) Buy
TP change
Ra ng change Market share gains con nue
Expansions provide strong growth visibility
Bloomberg UTCEM IN
n UTCEM’s 4QFY21 result was impressive on mul ple counts. While volume
Equity Shares (m) 288
M.Cap.(INRb)/(USDb) 1871.9 / 25.5 growth remained above industry, EBITDA/unit was strong at INR1,328/t
52-Week Range (INR) 7050 / 3235 (+18% YoY), driving 51% YoY growth in EBITDA. Net debt fell INR27b QoQ to
1, 6, 12 Rel. Per (%) -3/25/43 INR67.2b (0.55x TTM EBITDA).
12M Avg Val (INR M) 3438 n It has grown its market share further due to high clinker availability, which
Financial Snapshot (INR b) helped it meet strong demand for OPC cement in 4QFY21. Its India volumes
Y/E MARCH 2021 2022E 2023E grew 30%/5% YoY in 4Q/FY21, much higher than the 24%/24%/22% growth
Sales 447 509 582 reported by DALBHARA/ACEM/ACC.
EBITDA 116 122 142
n Market share gains should con nue, aided by the ongoing 20mtpa
Adj. PAT 55 63 79
EBITDA Margin (%) 26 24 24 expansion program, which should drive 11% volume CAGR over FY21-24E.
Adj. EPS (INR) 190 220 274 n While we expect industry volumes to decline by 25-30% in the near term
EPS Gr. (%) 31 15 25 due to COVID-related lockdowns, the same should be partly compensated by
BV/Sh. (INR) 1,609 1,806 1,943
improved margins as prices have been strong. Our earnings es mates for
Ra os
Net D:E 0.1 0.1 (0.1) UTCEM for FY22-23E are therefore broadly unchanged. We es mate 19%
RoE (%) 13.2 13.5 15.0 EPS CAGR. The company remains our top largecap pick in the sector.
RoCE (%) 10.3 11.0 12.5
Payout (%) 8.3 6.7 6.7
Lower cost drives 10% beat on EBITDA (up 51% YoY)
Valua ons
P/E (x) 34.1 29.5 23.6
n Consolidated revenue/EBITDA/adjusted PAT rose 33%/51%/57% YoY to
P/BV (x) 4.0 3.6 3.3 INR144.1b/INR36.9b/INR18.1b, 4%/10%/4% higher than our es mate.
EV/EBITDA(x) 16.7 15.7 12.9 n Consolidated volumes rose 28% YoY to 27.78mt (v/s our expecta on of
EV/ton (USD) 238 226 192
27mt), with India volumes up 30% YoY. EBITDA/t surprised posi vely at
Div. Yield (%) 0.6 0.6 0.8
FCF Yield (%) 5.7 3.2 4.7 INR1,328/t (+18% YoY, +2% QoQ) v/s our es mate of INR1,241/t.
n While blended realiza on rose 4% YoY to INR5,186/t (+1% QoQ), cost
Shareholding pa ern (%) surprised posi vely and was flat YoY at INR3,857/t (+1% QoQ). Freight and
As On Mar-21 Dec-20 Mar-20 fuel cost were under control, despite the sharp rise in diesel and petcoke
Promoter 60.0 60.0 59.7 prices.
DII 13.8 14.2 14.2 n Other income fell 70% YoY to INR603m due to a rise in bond yields in
FII 17.4 16.9 16.6
4QFY21. Finance cost fell 25% YoY to INR3.8b on a sharp reduc on in debt.
Others 8.9 9.0 9.5
n Consolidated net debt fell further by INR27b QoQ to INR67.2b (implying
FII Includes depository receipts
0.55x TTM EBITDA). Consolidated net debt declined INR102.6b in FY21.
n FY21 consolidated revenue/EBITDA/adjusted PAT rose 5%/23%/31% YoY to
INR447.3b/INR115.7b/INR55b, while OCF/capex/FCF stood at
INR125b/INR18.4b/INR106.7b (v/s INR89.7b/INR16.9b/INR72.9b in FY20).
n UTCEM has announced a higher dividend of INR37/share (20% payout).

Growth at reasonable valua ons – 19% EPS CAGR over FY21-23E

n UTCEM’s strong pan-India distribu on network and preferred supplier status
for key Infrastructure projects makes its well suited to tap into expected
growth in both Retail and Ins tu onal (non-trade) Cement demand in India.
n While it is ramping up its under-u lized acquired capaci es, it also has a
strong pipeline of expansion projects that offers strong growth visibility.

Amit Murarka - Research analyst (Amit.Murarka@mo laloswal.com)

Research analyst: Basant Joshi (Basant.Joshi@mo laloswal.com) / Jayant Gautam (Jayant.Gautam@mo laloswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Mo lal Oswal research is available on www.mo laloswal.com/Ins tu onal-Equi es, Bloomberg, Thomson Reuters, Factset and S&P Capital.

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UltraTech Cement

n We es mate 11%/19% CAGR in consolidated EBITDA/PAT over FY21-23E, driven

by 11% CAGR in volumes, lower opera ng costs, and lower interest costs.
n The valua on is reasonable at 12.9x FY23E EV/EBITDA – a 10% discount to its
last five years’ average. We value UTCEM at 16x FY23E EV/EBITDA to arrive at a
TP of INR8,050. Reiterate Buy.

Consolidated quarterly performance (INR m)

FY20 FY21 FY20 FY21 FY21 Var.
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4QE (%)
Net Sales 114,603 96,758 104,393 108,545 76,711 103,871 122,620 144,056 424,299 447,258 138,713 4
YoY Change (%) 20.1 4.6 0.0 -12.3 -33.1 7.4 17.5 32.7 2.0 5.4 29.1
Total Expenditure 85,645 77,478 83,304 84,093 55,934 76,895 91,599 107,152 330,520 331,579 105,245 2
EBITDA 28,958 19,280 21,089 24,452 20,777 26,977 31,022 36,904 93,779 115,679 33,469 10
Margin (%) 25.3 19.9 20.2 22.5 27.1 26.0 25.3 25.6 22.1 25.9 24.1
Deprecia on 6,958 6,709 6,780 6,780 6,512 6,771 6,739 6,980 27,227 27,002 6,806 3
Interest 5,057 5,080 4,720 5,060 3,943 3,579 3,563 3,772 19,917 14,857 3,411 11
Other Income 1,345 1,479 1,690 1,997 2,788 1,350 2,600 603 6,511 7,342 1,736 -65
PBT before EO expense 18,289 8,970 11,279 14,609 13,110 17,977 23,320 26,755 53,146 81,162 24,989 7
Extra-Ord. expense 0 0 1,307 -21,095 -1,138 3,357 0 388 -19,788 2,607 0
PBT a er EO Expense 18,289 8,970 9,972 35,703 14,248 14,620 23,320 26,367 72,934 78,555 24,989 6
Tax 6,118 3,113 2,862 3,320 3,603 5,662 7,474 8,649 15,413 25,387 7,489 15
Rate (%) 33.5 34.7 28.7 9.3 25.3 38.7 32.0 32.8 21.1 32.3 30.0
Reported PAT 12,171 5,857 7,111 32,383 10,645 8,958 15,846 17,719 57,521 53,168 17,500 1
Minority Interest (3) (1) 8 19 9 (6) (3) 34 32 34 (7)
Adj. PAT 14,421 7,073 8,903 11,541 8,882 12,161 15,781 18,142 41,946 54,967 17,493 4
YoY Change (%) 116.4 98.2 124.8 8.1 -38.4 71.9 77.2 57.2 69.0 31.0
E: MOFSL es mates

Key opera ng parameters

FY20 FY21 FY20 FY21 FY21 Var.
Per tonne analysis (INR) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4QE (%)
Volume (mt) 21.23 18.50 20.90 21.70 14.65 20.06 23.88 27.78 82.33 86.42 26.96 -11
YoY change (%) 7.3 -2.0 -4.0 -14.7 -31.0 8.4 14.3 28.0 -3.9 5.0 25.8
Realiza on (incl. RMC) 5,399 5,230 4,995 5,001 5,236 5,178 5,135 5,186 5,154 5,175 5,145 0
YoY change (%) 11.9 6.8 4.1 2.8 -3.0 -1.0 2.8 3.7 6.1 0.4 2.7
RM Cost 766 820 884 704 822 835 751 868 792 820 792 10
Power and Fuel 1,110 1,065 983 984 942 920 1,006 973 1,034 964 1,072 -9
Staff Cost 283 346 298 303 384 282 256 221 306 272 230 -4
Freight and Forwarding 1,205 1,161 1,122 1,236 1,097 1,146 1,193 1,183 1,182 1,162 1,221 -3
Other Expenditure 670 796 699 648 572 649 630 611 700 618 588 4
Total Expenditure 4,035 4,188 3,986 3,875 3,818 3,833 3,836 3,857 4,015 3,837 3,903 -1
EBITDA 1,364 1,042 1,009 1,127 1,418 1,345 1,299 1,328 1,139 1,339 1,241 7

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Key exhibits
Exhibit 1: Cement volumes up 28% YoY in 4QFY21 Exhibit 2: Cement realiza ons up 4% YoY in 4QFY21
Volume (mt) YoY growth (%)
Realiza ons (INR)
39 35
33
29 29 31 28
18 14
8
7
1 -2 -4
-15
-31

Source: Company, MOFSL Source: Company, MOFSL

Exhibit 3: Trend in EBITDA/t

EBITDA/t (INR)

Source: Company, MOFSL

Exhibit 4: Trend in key opera ng parameters

INR/t 4QFY21 4QFY20 YoY 3QFY21 QoQ
Realiza on 5,186 5,001 4% 5,135 1%
RM Cost 868 704 23% 751 16%
Power and Fuel 973 984 -1% 1,006 -3%
Staff Cost 221 303 -27% 256 -14%
Freight and Forwarding 1,183 1,236 -4% 1,193 -1%
Other Expenditure 611 648 -6% 630 -3%
Total Expenditure 3,857 3,875 0% 3,836 1%
EBITDA 1,328 1,127 18% 1,299 2%
Source: Company, MOFSL

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Valua on and view

Capacity expansion and swea ng of exis ng assets to drive growth: UTCEM is
se ng up Cement capaci es of 19.5mtpa, with the commissioning of 5.4mtpa
capacity by FY22 and the balance in FY23. In the near term, the management’s focus
is on swea ng exis ng assets (capacity of 111mmtpa; 70% u liza on). Growth
beyond FY23 would be fulfilled by expansion projects. We expect volume growth to
be above industry at 11% CAGR over FY21-24E.

Strong cost reduc on plans to contribute ~INR100/t to EBITDA by FY24E: UTCEM

plans to expand its WHRS and solar capaci es to 302MW and 500 MW, respec vely,
by FY24, which should reduce its power and fuel cost by ~INR80/t. With these
investments, it aims to achieve a green power mix of 34% (26% WHRS; 8% solar) by
FY24. Moreover, there is planned cost reduc on at acquired capaci es (par cularly
at the Baikunth plant of Century Tex les and Industries), which should reduce costs.
We es mate cost reduc on of ~INR100/t for UTCEM by FY24E, which should
support margin growth.

Deleveraging delivered, soon to be a net cash company: Net debt has declined to
INR67b (0.55x TTM EBITDA) as of Mar’21 from a peak of INR217b (3x of EBITDA) in
FY19. Despite ongoing capex, we now expect UTCEM to become a net cash company
in the next one year.

Robust earnings growth with a rac ve valua ons; reiterate Buy: We es mate
11%/19% CAGR in consolidated EBITDA/PAT over FY21-23E, driven by 11% CAGR in
volumes, lower opera ng costs, and lower interest costs. The valua on is
reasonable at 12.9x FY23E EV/EBITDA – a 10% discount to its last five years’ average.
We value UTCEM at 16x FY23E EV/EBITDA to arrive at a TP of INR8,050. Reiterate
Buy.

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UltraTech Cement

Story in charts
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Exhibit 5: U liza on to rise in FY22E on strong growth Exhibit 6: EBITDA/t to remain strong

Capacity (mt) Capacity u liza on (%) EBITDA/t (INR)

79
76 75 75
73 74 72 71 71
69
67

51 54 60 65 66 85 109 111 111 116 131

Source: Company, MOFSL Source: Company, MOFSL

Exhibit 7: Expect 11% EBITDA CAGR over FY21-23E Exhibit 8: Return ra os to improve consistently

EBITDA (INR bn) EBITDA margin (%) 13.9 RoE (%) RoCE (%)
26
24 24 12.5
23 22
21 10.6 10.3 11.0
19 19 20 9.4 9.7
18 18 9.4 9.5
8.4
7.1
19
14 14 15
12 12 12 13
12
48 40 44 49 52 61 73 94 116 122 142 10 8

Source: Company, MOFSL Source: Company, MOFSL

Exhibit 9: UTCEM’s EV/EBITDA trend Exhibit 10: UTCEM’s EV/t trend

EV/ton (USD) Max Min Avg
UTCEM EV/EBDITA(x) Max(x) Min(x)
24 240

18 200

12 160

6 120

0 80

Source: MOFSL, Company Source: MOFSL, Company

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UltraTech Cement

Financials and valua ons

Consolidated Income statement (INR m)
Y/E March FY16 FY17 FY18 FY19 FY20 FY21 FY22E FY23E

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Total Income from Opera ons 251,532 253,749 309,786 416,088 424,299 447,258 509,419 581,992
Change (%) 3.3 0.9 22.1 34.3 2.0 5.4 13.9 14.2
Raw Materials 44,175 44,926 52,888 69,831 65,181 70,858 78,766 90,361
Employees Cost 14,450 15,223 18,102 22,911 25,199 23,530 25,876 27,637
Other Expenses 143,898 141,476 177,344 249,877 240,141 237,191 282,801 321,750
Total Expenditure 202,523 201,625 248,335 342,619 330,520 331,579 387,442 439,748
% of Sales 80.5 79.5 80.2 82.3 77.9 74.1 76.1 75.6
EBITDA 49,010 52,124 61,452 73,469 93,779 115,679 121,977 142,244
Margin (%) 19.5 20.5 19.8 17.7 22.1 25.9 23.9 24.4
Deprecia on 13,772 13,484 18,479 24,507 27,227 27,002 28,322 29,636
EBIT 35,238 38,640 42,972 48,962 66,552 88,677 93,654 112,609
Int. and Finance Charges 5,663 6,401 12,376 17,779 19,917 14,857 11,579 9,625
Other Income 4,638 6,481 5,886 4,634 6,511 7,342 9,875 11,835
PBT bef. EO Exp. 34,213 38,721 36,482 35,818 53,146 81,162 91,950 114,819
EO Items 0 0 -3,466 -1,139 19,788 -2,607 0 0
PBT a er EO Exp. 34,213 38,721 33,016 34,679 72,934 78,555 91,950 114,819
Total Tax 9,417 11,586 10,770 10,681 15,413 25,387 28,514 35,601
Tax Rate (%) 27.5 29.9 32.6 30.8 21.1 32.3 31.0 31.0
Minority Interest 16 -14 24 -37 -32 -34 5 5
Reported PAT 24,780 27,149 22,222 24,035 57,553 53,202 63,431 79,212
Adjusted PAT 24,780 27,149 24,557 24,823 41,946 54,967 63,431 79,212
Change (%) 18.1 9.6 -9.5 1.1 69.0 31.0 15.4 24.9
Margin (%) 9.9 10.7 7.9 6.0 9.9 12.3 12.5 13.6

Consolidated Balance sheet (INR m)

Y/E March FY16 FY17 FY18 FY19 FY20 FY21 FY22E FY23E
Equity Share Capital 2,744 2,745 2,746 2,746 2,886 2,886 2,887 2,887
Total Reserves 216,712 241,171 261,066 334,738 388,269 438,860 493,078 557,857
Net Worth 219,456 243,916 263,812 337,484 391,155 441,747 495,965 560,744
Minority Interest 155 97 160 122 75 57 85 90
Total Loans 106,160 84,745 194,802 253,370 228,979 204,878 159,357 159,357
Deferred Tax Liabili es 24,411 27,824 31,827 63,856 49,120 60,407 69,798 81,327
Capital Employed 350,182 356,582 490,601 654,832 669,329 707,088 725,205 801,518
Gross Block 255,050 274,135 430,455 571,407 602,798 614,376 632,309 673,981
Less: Accum. Deprn. 13,018 25,943 43,665 68,172 95,399 122,401 150,951 180,586
Net Fixed Assets 242,032 248,192 386,790 503,235 507,400 491,975 481,358 493,394
Goodwill on Consolida on 11,062 10,851 10,363 62,989 62,525 62,199 62,525 62,525
Capital WIP 14,691 9,215 15,112 11,486 9,095 16,810 25,716 10,716
Current Investment 23,651 54,110 39,491 15,165 42,437 108,939 108,939 108,939
Non-current Investment 27,301 12,795 14,978 14,048 16,850 12,842 25,219 25,219
Curr. Assets, Loans and Adv. 93,194 86,926 104,677 158,335 144,307 159,034 164,924 250,979
Inventory 24,546 24,006 32,676 40,990 41,483 40,180 43,501 49,592
Account Receivables 19,282 17,571 22,206 27,870 22,383 25,717 30,759 34,955
Cash and Bank Balance 22,670 22,488 2,191 7,397 5,392 20,076 11,487 87,339
Loans and Advances 26,697 22,861 47,604 82,079 75,049 73,061 79,176 79,093
Curr. Liability and Prov. 61,852 65,605 80,904 110,548 119,152 152,307 151,063 157,842
Account Payables 17,173 18,573 23,849 31,671 35,014 46,993 46,520 53,147
Other Current Liabili es 40,292 42,453 50,526 71,206 76,240 96,441 96,633 96,779
Provisions 4,388 4,579 6,529 7,671 7,898 8,873 7,910 7,916
Net Current Assets 31,343 21,321 23,773 47,787 25,155 6,727 13,861 93,137
Deferred Tax assets 102 98 94 121 60 72 61 62
Net Assets held for sale 0 0 0 0 5,808 7,526 7,526 7,526
Appl. of Funds 350,182 356,582 490,601 654,832 669,329 707,088 725,205 801,518
E: MOFSL es mates

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UltraTech Cement

Financials and valua ons

Ra os
Y/E March FY16 FY17 FY18 FY19 FY20 FY21 FY22E FY23E
Basic (INR)
EPS 90.2 98.9 89.4 90.4 145.3 190.4 219.7 274.4

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Cash EPS 140.5 148.0 156.7 179.6 239.7 284.0 317.9 377.1
BV/Share 800.4 889.4 961.4 1,229.8 1,424.9 1,608.6 1,805.9 1,942.8
DPS 8.9 9.4 9.5 10.5 11.5 37.0 40.0 50.0
Payout (%) 11.8 11.5 14.0 14.5 8.6 8.3 6.7 6.7
Valua on (x)
P/E 71.7 44.6 34.1 29.5 23.6
Cash P/E 36.1 27.1 22.8 20.4 17.2
P/BV 5.3 4.6 4.0 3.6 3.3
EV/Sales 4.8 4.8 4.3 3.8 3.2
EV/t (USD) 250.8 251.0 238.5 226.4 192.5
EV/EBITDA 27.2 21.7 16.7 15.7 12.9
Dividend Yield (%) 0.2 0.2 0.6 0.6 0.8
FCF per share 156.8 249.4 369.4 209.7 305.1
Return Ra os (%)
RoE 12.1 11.7 9.7 8.3 11.5 13.2 13.5 15.0
RoCE 9.4 9.7 8.4 7.1 9.5 10.3 11.0 12.5
RoIC 9.2 9.7 8.2 6.4 8.5 10.2 11.3 13.2
Working Capital Ra os
Inventory (Days) 36 35 38 36 36 33 31 31
Debtor (Days) 28 25 26 24 19 21 22 22
Creditor (Days) 25 27 28 28 30 38 33 33
Leverage Ra o (x)
Current Ra o 1.5 1.3 1.3 1.4 1.2 1.0 1.1 1.6
Interest Coverage Ra o 6.2 6.0 3.5 2.8 3.3 6.0 8.1 11.7
Net Debt/Equity 0.3 0.0 0.6 0.7 0.5 0.2 0.1 -0.1

Consolidated Cash Flow Statement (INR m)

Y/E March FY16 FY17 FY18 FY19 FY20 FY21 FY22E FY23E
OP/(Loss) before Tax 34,213 38,721 33,015 34,685 52,423 78,576 91,950 114,819
Deprecia on 13,772 13,484 18,479 24,507 27,022 27,002 28,550 29,636
Interest and Finance Charges 5,042 5,822 12,376 17,779 19,917 14,857 11,579 9,625
Direct Taxes Paid -8,517 -7,437 -8,429 -7,101 -8,914 -12,910 -19,113 -24,073
(Inc.)/Dec. in WC 4,293 5,176 -12,554 -6,957 4,503 23,289 -15,723 -3,425
CF from Opera ons 48,803 55,765 42,888 62,913 94,949 130,814 97,243 126,581
Others 1,494 -8 -4,010 -3,356 -5,929 -5,785 -9,875 -11,835
CF from Opera ons incl. EO 50,297 55,756 38,877 59,557 89,020 125,030 87,368 114,746
(Inc.)/Dec. in FA -21,315 -13,557 -18,828 -16,482 -17,037 -18,414 -26,839 -26,672
Free Cash Flow 28,982 42,199 20,050 43,075 71,983 106,616 60,529 88,075
(Pur.)/Sale of Investments 3,537 -11,209 16,246 26,614 -26,266 -70,949 -12,376 0
Others -73 0 21,197 1,007 1,210 773 9,548 11,835
CF from Investments -17,851 -24,766 18,616 11,138 -42,093 -88,590 -29,668 -14,837
Issue of Shares 27 66 157 52 27 70 0 0
Inc./(Dec.) in Debt -5,503 -22,297 -42,069 -46,482 -26,663 -25,149 -45,521 0
Interest Paid 0 0 -12,099 -16,850 -19,445 -14,805 -11,579 -9,625
Dividend Paid -2,973 -3,119 -3,340 -3,462 -3,800 -3,748 -11,546 -14,433
Others 9 0 0 -827 -31 68 2,356 0
CF from Fin. Ac vity -8,440 -25,350 -57,351 -67,568 -49,911 -43,565 -66,289 -24,058
Inc./Dec. in Cash 24,005 5,640 142 3,127 -2,984 -7,125 -8,589 75,852
Opening Balance 9,198 33,203 38,843 38,986 42,113 39,129 32,003 23,415
Closing Balance 33,203 38,843 38,986 42,113 39,129 32,003 23,415 99,267

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NOTES

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Explanation of Investment Rating

Investment Rating Expected return (over 12-month)
BUY >=15%
SELL < - 10%
NEUTRAL < - 10 % to 15%
UNDER REVIEW Rating may undergo a change
NOT RATED We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
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 Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the

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Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial
products. MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are
available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - 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), Multi Commodity Exchange of India Limited (MCX) and
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available on the website at http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL 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
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merchant banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the
website at https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
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 MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated
from MOFSL 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 MOFSL & 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 Financial Services Limited (MOFSL) 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 MOFSL 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 MOFSL , 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., MOFSL 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
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL
in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”,
of which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOFSL, Research Analyst and/or his rela ves does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his rela ves do not have actual/beneficial ownership of 1% or more securi es in the subject company
3 MOFSL, Research Analyst and/or his rela ves have not received compensa on/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his rela ves do not have material conflict of interest in the subject company at the me of publica on of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securi es of the subject company in past 12 months
7 MOFSL has not received compensa on for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensa on for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensa on or other benefits from third party in connec on with the research report
10 MOFSL has not engaged in market making ac vity for the subject company

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The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- 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 MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- 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)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.

The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from

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Analystwhich are not considered in above disclosures.
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.
Terms & Conditions:
This report has been prepared by MOFSL 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 MOFSL. 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. MOFSL will not treat recipients as
customers by virtue of their receiving this report.
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. MOFSL, 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 MOFSL. 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 MOFSL 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 MOFSL or any of its
affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such
misuse and further agrees to hold MOFSL 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 71934200/ 022-71934263;
Website www.mo laloswal.com.CIN no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth
Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is
a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt.
Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL.
Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no
assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance
Officer: Name: Neeraj Agarwal, Email ID: [email protected], Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.

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