Sector Update| 1 September 2020
Automobiles
Mahindra & Mahindra
CMP: INR608
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
MM IN
1,209
755.7 / 10.3
649 / 246
-3/32/11
TP: INR723 (+19%)
Buy
Above est.; Volumes grow 7.8% YoY to 54.9k
Tractors surprise positively; UV volumes in line with estimates
Financials Snapshot (INR b)
Y/E MARCH
2020 2021E 2022E
Sales
455
425
496
EBITDA
58.0 55.4
66.8
Adj. PAT*
35.8 33.7
42.1
Adj. EPS (INR)
30.0 28.2
35.3
EPS Gr. (%)
-30.3
-5.8
25.0
BV/Sh. (INR)
290
313
339
Ratios
RoE (%)
9.7
9.0
10.4
RoCE (%)
5.9
8.3
9.6
Payout (%)
24
21
26
Valuations
P/E (x)
20.3 21.5
17.2
P/BV (x)
2.1
1.9
1.8
Div. Yield (%)
0.4
0.8
1.2
FCF Yield*
0.2
4.0
6.4
*incl.MVML
M&M’s tractor volumes surged 65% YoY to 24.5k units (v/s est. 21.5k units). We
have factored in 6.5% volume growth for FY21E, implying 14% residual growth
or 29.4k units.
UVs (incl. pick-ups) stood flat YoY at 29.9k units (in-line). Domestic passenger
UVs grew ~3% YoY while domestic pick-ups grew 9% YoY. We estimate UV
volumes to decline 15% in FY21E, implying 14.9% residual growth or run-rate of
36.8k units.
3W volumes plunged 94% YoY to 307 units.
Commenting on the performance, Mr. Veejay Ram Nakra, Chief of Sales &
Marketing, Automotive Division of M&M Ltd. said,
“At Mahindra, we continue
to see good recovery in demand both for SUVs and Pick-ups in the Small
Commercial Vehicles segment. For the month of August, we have registered
growth in both SUVs and Pick-ups. We have been able to meet the uplift in
demand by managing the supply chain challenges and going forward will
continue to keep our focus on it.”
Commenting on the performance, Hemant Sikka, President – FES Sector, M&M
Ltd. said,
“The Tractor industry growth continues to remain strong in August.
This is primarily on account of continued positive sentiment, due to increase in
Kharif sowing area, thereby indicating a bumper harvest, bountiful monsoon,
good rural cash flows and base effect. We expect rural sentiments to remain
positive and translate into robust tractor demand as we move into the festive
period. In the exports market, we have sold 955 tractors, a growth of 1% over
last year.”
The stock trades at core P/E of 12.8x FY22E S/A EPS and 1.3x core P/B. Maintain
Buy.
Snapshot of volumes for Aug-20
YoY
Company Sales
Mahindra &
Mahindra
UV (incl. pick-ups)
LCV & M&HCV
Three-Wheelers
Tractors
Aug-20 Aug-19
YoY (%)
chg
7.8
0.1
-75.6
-94.3
65.1
MoM
Jul-20
MoM (%)
chg
7.4
17.5
61.6
269.9
-3.7
Residual Residual FY21 YTD
Growth Monthly Monthly
FY21
FY21
FY20 YTD (%) chg
Gr. (%)
(%) Run rate Run rate
YTD
estimate
201,272 329,075 -38.8
84,852 178,683 -52.5
461
6,050 -92.4
442 23,183 -98.1
115,517 121,159 -4.7
705,068
342,193
6,511
34,825
321,539
-9.4
-15.0
-42.3
-44.0
6.5
12.2 71,971
14.9 36,763
15.8
864
-11.8 4,912
14.0 29,432
40,254
16,970
92
88
23,103
54,884 50,902
29,917 29,883
202
829
307 5,373
24,458 14,817
51,080
25,470
125
83
25,402
Jinesh Gandhi - Research analyst
(Jinesh@MotilalOswal.com)
Research analyst: Vipul Agarawal
(Vipul.agarawal@MotilalOswal.com)
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.
 Motilal Oswal Financial Services
Automobiles | Update
Escorts
CMP: INR1,111
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
TP: INR1,175(+6%)
Neutral
ESC IN
123
Easing in supply chain constraints enabling replenishment of inventory
149.8 / 2
1211 / 450
Tractor dispatches grew ~80% YoY to 7.3k units (v/s est. 5.9k units) in Aug’20.
-5/41/114
Domestic sales grew 79% YoY, while exports surged ~90% YoY.
Above est. at 7.3k units, up 80% YoY
Financials Snapshot (INR b)
growth or monthly run-rate of ~9.5k units.
Y/E MARCH
2020 2021E 2020E
Sales
58.1 61.8 70.1
The stock trades at 18.3x/15.9x FY21/FY22E EPS. Maintain
Neutral.
EBITDA
6.6
8.3
9.3
EBITDA Margin (%)
9.6 11.7 11.5
Management commentary:
The market sentiment remains highly positive with
Adj. PAT
4.8
6.3
7.2
EPS (INR)
54.0 62.4 71.6
good monsoons, better Kharif sowing, crop prices holding up really well and good
EPS Gr. (%)
1.4 15.5 14.8
supply of retail finance. We remain optimistic for the coming festive months. The
BV/Sh. (INR)
350.7 469.4 536.1
supply side situation improved significantly as compared to last month. We are
Ratios
RoE (%)
16.6 16.0 14.2
currently operating close to peak capacity now. In Aug’20, we could build some
RoCE (%)
21.4 21.2 18.8
inventory both at dealer and depots, which since the last few months it is at very
Payout (%)
5.7
6.8
6.8
low levels.
Valuations
P/E (x)
20.6 17.8 15.5
P/BV (x)
3.2
2.4
2.1
EV/EBITDA (x)
14.5 11.5
9.7
Div. Yield (%)
0.2
0.3
0.4
FCF yield (%)
4.4
3.7
3.9
We are estimating ~13% growth in volumes for FY21E, implying 18.5% residual
Snapshot of volumes for Aug-20
YOY
Aug-20
Escorts
Domestic
Exports
7,268
6,750
518
Aug-19
4,035
3,763
272
YoY (%)
chg
80.1
79.4
90.4
MoM
Jul-20
5,322
4,953
369
MoM (%)
chg
36.6
36.3
40.4
FY21
YTD
30,740
29,393
1,347
FY20
YTD
29,946
28,390
1,556
FY21
Residual Residual
YTD
YoY
Growth Monthly
FY21
Monthly
(%) chg
(%)
(%)
Run rate
estimate
Run rate
chg
2.7
3.5
-13
97,200
91,783
5,418
13.0
11.6
44
18.5
15.8
84.2
9,494
8,913
582
6,148
5,879
269
1 September 2020
2
 Motilal Oswal Financial Services
Automobiles | Update
Maruti Suzuki
CMP: INR6,909
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
TP: INR7,200 (+4.2%)
Buy
MSIL IN
302
Domestic sales grew ~20% YoY driven by 95% growth in entry-level cars
2087.1 / 28.3
7755 / 4002
MSIL’s Aug’20 wholesales were up ~17% YoY to 124.6k units (v/s est. 126.4k
7/8/9
In-line; Volumes grow 17% to 124.6k (v/s est. 126.4k)
Financials Snapshot(INR b)
Y/E MARCH
2020 2021E 2022E
Sales
756.1 649.5 786.3
EBITDA
73.0 54.0
91.5
Adj. PAT
56.5 45.6
72.0
Adj. EPS
188.0 152.1 241.8
EPS Gr. (%)
-25.8 -19.1
59.0
BV/Sh.
1,603 1,682 1,848
Ratios
RoE (%)
11.7
9.0
12.9
RoCE (%)
14.6 11.2
16.4
Payout (%)
51.6 48.0
30.4
Valuations
P/E (x)
36.8 45.4
28.6
P/BV (x)
4.3
4.1
3.7
EV/EBITDA (x)
1.2
0.9
0.9
Div. Yield (%)
0.0
1.6
2.3
*Cons.
units).
Domestic volumes grew by ~20% YoY to 116.7k units (v/s est. 118k units).
As expected, mini (+95% YoY) and compact (+12%) saw good recovery.
Surprisingly, UVs also saw strong growth of 13.5% YoY, despite higher
competitive intensity.
Export volumes declined 15% YoY to 7.9k units (v/s est. 8.2k).
We are estimating FY21E volumes to decline ~13.9% YoY, implying a residual
growth of 9.7% or run-rate of ~148k units.
The stock trades at 45.4x/28.6x FY21/FY22E earnings. Maintain
Buy.
Snapshot of volumes for Aug-20
YoY
Company Sales
Maruti Suzuki
LCVs
Vans
Mini Segment
Compact (incl Dzire
Tour)
Mid Size - CIAZ
UVs
Total Domestic
Export
Aug-20 Aug-19
124,624 106,413
2,292 1,555
9,115 8,658
19,709 10,123
63,335 56,607
1,223 1,596
21,030 18,522
116,704 97,061
7,920 9,352
YoY (%)
chg
17.1
47.4
5.3
94.7
11.9
-23.4
13.5
20.2
-15.3
MoM
Jul-20
108,064
2,232
8,501
17,258
52,836
1,303
19,177
101,307
6,757
MoM (%)
chg
15.3
2.7
7.2
14.2
19.9
-6.1
9.7
15.2
17.2
Residual Residual FY21 YTD
Growth Monthly Monthly
FY21
FY21
FY20 YTD (%) chg
Gr. (%)
(%) Run rate Run rate
YTD
estimate
309,287 618,271 -50.0 1,345,280 -13.9
5,713
9,855 -42.0
16,116 -26.0
23,036 51,131 -54.9
95,942 -19.0
49,420 79,593 -37.9 225,847 -8.9
149,991 325,589 -53.9 704,519 -13.2
3,271 12,696 -74.2
15,407 -39.0
53,607 92,684 -42.2 206,361 -12.3
285,038 571,548 -50.1 1,264,193 -13.4
24,249 46,723 -48.1
81,088 -20.6
9.7 147,999
-12.8 1,486
8.4 10,415
4.9 25,204
14.0 79,218
-3.4 1,734
7.1 21,822
10.2 139,879
2.5 8,120
61,857
1,143
4,607
9,884
29,998
654
10,721
57,008
4,850
1 September 2020
3
 Motilal Oswal Financial Services
Automobiles | Update
Hero MotoCorp
CMP: INR2,995
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
TP: INR3,045 (+1.7%)
Neutral
HMCL IN
200
Demand driven by rural/semi-urban areas
598.3 / 8.2
3180 / 1475
HMCL’s volumes grew 7.6% YoY to 584.5k units (v/s est. 597.7k units).
8/45/12
In-line with est. at 584.5k units (+7.6% YoY)
Financials Snapshot (INR b)
Y/E MARCH
2020 2021E
Sales
288.4 301.1
EBITDA
39.6 41.3
Adj. PAT
30.6 30.4
Adj. EPS (INR) 153.0 151.9
EPS Gr. (%)
-9.7
-0.7
BV/Sh. (INR)
707.7 743.6
Ratios
RoE (%)
22.6 21.0
RoCE (%)
22.0 20.5
Payout (%)
71.8 75.3
Valuations
P/E (x)
19.6 19.7
P/BV (x)
4.2
4.0
3.0
3.2
Div. Yield (%)
FCF Yield (%)
6.8
4.7
2022E
338.1
48.7
35.3
176.2
16.0
787.3
23.0
22.6
75.2
17.0
3.8
3.7
5.9
We estimate volumes to decline 9.4% in FY21E, implying residual growth of
18.8% or run-rate of 591.9k units.
Extract from the press release, “Hero MotoCorp’s latest addition to its range of
premium motorcycles – the Xtreme 160R – has received very positive feedback
from the market and has led to an increase in the company’s premium segment
market share. The company is also witnessing strong retail off-take and is
currently operating in the pull market with rural and semi-urban centers driving
demand. With August marking another step forward in the market's recovery,
the company cautiously anticipates sales to continue their upward trajectory
with favorable factors such as the upcoming festive season, increasing consumer
confidence and continued government policy support.”
HMCL is operating at nearly 100% production capacity with almost all customer
touch points being currently operational.
HMCL trades at 19.7x/17x FY21/FY22E EPS. Maintain
Neutral.
Snapshot of volumes for Aug-20
YoY
Company Sales
Hero MotoCorp
FY21
Residual Residual
YTD
Growth Monthly
YoY (%)
MoM (%)
FY21
Monthly
Aug-20 Aug-19
Jul-20
FY21 YTD FY20 YTD (%) chg
Gr. (%)
(%) Run rate
chg
chg
estimate
Run rate
584,456 543,406
7.6
514,509
13.6
18.8 591,954 332,478
1,662,391 2,922,136
-43.1
5,806,066
-9.4
MoM
1 September 2020
4
 Motilal Oswal Financial Services
Automobiles | Update
Eicher Motors
CMP: INR2,132
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
EIM IN
273
582.1 / 7.8
2389 / 1246
0/27/27
TP: INR2,475(+16%)
Buy
In-line with est.; RE at 50.1k units, a decline of ~5.2% YoY
VECVs declined 30% to 2,477 units (v/s est. 2,345 units)
Financials Snapshot(INR b)
Y/E MARCH
FY20 FY21E FY22E
Sales
91.5
86.3 105.3
EBITDA
21.8
18.8
27.5
Adj. PAT
18.3
13.9
22.4
Adj EPS (INR)
66.9
51.0
82.2
EPS Gr (%)
-17.8 -23.8
61.1
BV/Sh (INR)
366
402
467
Ratios
RoE (%)
19.3
13.3
18.5
RoCE (%)
18.7
13.0
18.5
Payout (%)
21.7
29.5
20.1
Valuations
P/E (x)
31.8
41.8
25.9
P/BV (x)
5.8
5.3
4.6
Div. Yield (%)
0.6
0.6
0.7
FCF Yield (%)
2.0
1.3
3.0
Royal Enfield (RE) dispatches declined ~5% YoY to 50.1k units (in-line with est.).
Domestic retails were broadly similar to wholesales.
We estimate RE volumes to decline 10.4% in FY21E, implying residual growth of
17.4% or run-rate of 68k units. We are hopeful of a step-up in volumes, driven
by the upcoming new platform launch in Sep-Oct’20.
VECV’s volumes declined ~30% YoY to ~2,477 units (v/s est. ~1,679 units). For
VECVs, we estimate 20% volume decline in FY21E, implying ~15.9% residual
growth or 4.6k units.
The stock trades at 41.8x/25.9x FY21E/FY22E consol. EPS. Maintain
Buy.
Snapshot of volumes for Aug-20
YOY
Aug-20
Royal Enfield
VECV
Aug-19
YoY (%)
chg
-5.2
-30.0
MoM
Jul-20
40,334
2,184
MoM (%)
chg
24.3
13.4
Residual Residual FY21 YTD
FY21
FY21 YoY (%) Growth Monthly Monthly
FY20 YTD (%) chg
(%) Run rate Run rate
YTD
estimate chg
147,747 290,678 -49.2
6,790 20,917 -67.5
623,715 -10.4
39,014 -19.9
17.4 67,995
15.9 4,603
29,549
1,358
50,144 52,904
2,477 3,538
1 September 2020
5
 Motilal Oswal Financial Services
Automobiles | Update
TVS Motor
CMP: INR441
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
TP: INR392 (-11%)
Neutral
TVSL IN
475
2W volumes were flat YoY while 3Ws declined 30%
209.3 / 2.8
503 / 240
TVSL’s wholesales declined 1.1% to 287.4k units (v/s est. 287.1k units).
10/0/21
In-line; Wholesales a tad down 1.1% YoY to 287.4k units
Financials Snapshot (INR b)
Y/E MARCH
2020 2021E 2022E
Sales
164.2 159.5 188.8
EBITDA
13.5 12.5
17.6
Adj. PAT
6.2
4.9
8.3
EPS (INR)
13.0 10.3
17.5
EPS Gr. (%)
-7.8 -20.9
70.4
BV/Sh (INR)
76.2 82.2
94.9
Ratios
RoE (%)
17.7 13.0
19.8
RoCE (%)
17.1 13.7
20.1
Payout (%)
33.8 40.9
27.4
Valuations
P/E (x)
33.9 42.8
25.1
P/BV (x)
5.8
5.4
4.6
Div. Yield (%)
0.8
0.8
0.9
FCF Yield (%)
3.2
2.9
4.1
2W volumes were flat YoY to 277.2k units. Domestic 2Ws were also flat YoY,
whereas 2W exports grew 5% YoY. For 2Ws, we are estimating FY21 volumes to
decline 11%, implying residual growth of 18% or run-rate of ~280.5 units.
3W volumes declined ~30% YoY to ~10.1k units (in line with est.). We estimate
total 3W volumes to decline 9% in FY21, implying residual growth of 26% or run-
rate of ~16k units.
Overall volumes are estimated to decline ~11.7% in FY21E, implying residual
growth of 17.2% or run-rate of 296.5k units.
The stock trades at 42.8x/25.1x FY21/FY22E EPS. Maintain
Neutral.
Snapshot of volumes for Aug-20
YoY
Company Sales
TVS Motor
Motorcycles
Scooters
Mopeds
Three-Wheelers
Total Domestic
Total Exports
Aug-20 Aug-19
287,398
119,878
87,044
70,304
10,172
219,051
68,347
290,455
109,393
109,272
57,186
14,604
220,753
69,702
YoY (%)
chg
-1.1
9.6
-20.3
22.9
-30.3
-0.8
-1.9
MoM
Jul-20
252,744
106,062
78,603
59,123
8,956
190,355
62,389
MoM (%)
chg
13.7
13.0
10.7
18.9
13.6
15.1
9.5
FY21
YTD
FY20 YTD (%) chg
-45.9
-45.6
-51.4
-34.7
-54.9
-47.9
-39.4
FY21
estimate
2,882,500
1,160,700
1,000,080
579,332
142,368
2,132,654
749,846
Residual Residual FY21 YTD
Gr. Growth Monthly Monthly
(%) Run rate Run rate
(%)
-11.7
-15.1
-6.8
-10.7
-9.0
-32.3
-1.6
17.2
11.3
33.3
7.6
26.2
-23.4
30.3
296,489 161,415
116,493 69,049
107,524 49,483
56,507 36,756
15,962
6,127
219,541 119,174
76,949 42,241
807,075 1,493,115
345,247 634,784
247,413 509,003
183,782 281,413
30,633 67,915
595,869 1,144,635
211,206 348,480
1 September 2020
6
 Motilal Oswal Financial Services
Automobiles | Update
Ashok Leyland
CMP: INR69
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
TP: INR71 (+3.5%)
Buy
AL IN
2,927
M&HCV sales down ~52% YoY and LCV sales decrease 4% YoY
202.3 / 2.7
88 / 34
Wholesale dispatches stood at 6,325 units (v/s est. 6,216 units), down 31.5%
38/-3/3
Wholesales in-line with est. at 6,325 units
Financials Snapshot (INR b)
Y/E MARCH
2020 2021E 2022E
Sales
174.7 151.7 193.9
EBITDA
11.7
6.6
17.5
EBITDA (%)
6.7
4.3
9.0
Adj. PAT
3.4
-1.1
6.6
Adj. EPS (INR)
1.2
-0.4
2.3
EPS Gr. (%)
-83.1 -131.8 -709.6
BV/Sh. (INR)
24.7 24.4
25.4
Ratios
Net D:E (x)
0.2
0.3
0.4
RoE (%)
4.4
-1.5
9.1
ROCE (%)
4.2
0.7
7.6
Payout (%)
51.5
0.0
53.2
Valuations
P/E (x)
59.0 -185.6
30.4
P/BV (x)
2.8
2.8
2.7
EV/EBITDA (x) 18.7 34.4
12.7
Div. Yield (%)
0.7
0.0
1.5
FCF Yield (%)
-1.7
0.7
5.2
YoY.
M&HCV volumes declined ~51.6% YoY to 2,589 units (v/s est. 2,140 units).
LCV volumes declined 4% YoY to 3,736 units (v/s est. 4,076 units).
We estimate volumes to decline 17.2% in FY21E, implying residual growth of
~35.6% or 12.7k units. While LCV will benefit from plugging-up of gaps in the
product portfolio, we see downside risk to our M&HCV volume estimates for
FY21E.
The stock trades at 12.7x FY22E EV/EBITDA and 2.7x FY22E P/BV. Maintain
Buy.
Snapshot of volumes for Aug-20
YoY
Company Sales
Ashok Leyland
CV (ex LCV)
LCV
Aug-20 Aug-19
6,325
2,589
3,736
9,231
5,349
3,882
YoY (%)
chg
-31.5
-51.6
-3.8
MoM
Jul-20
4,775
1,705
3,070
MoM (%)
chg
32.5
51.8
21.7
Residual Residual FY21 YTD
Growth Monthly Monthly
FY21
FY21
FY20 YTD (%) chg
Gr. (%)
(%) Run rate Run rate
YTD
estimate
14,914
5,315
9,599
59,766
38,790
20,976
-75.0 103,704 -17.2
-86.3 53,430 -32.0
-54
50,274
7.8
35.6
20.9
58.5
12,684
6,874
5,811
2,983
1,063
1,920
1 September 2020
7
 Motilal Oswal Financial Services
Automobiles | Update
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
> - 10 % to 15%
Rating may undergo a change
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.
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 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 - MOSFL) 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 National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited
(CDSL) National Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance Regulatory & Development Authority of India (IRDA) as
Corporate Agent for insurance products. Details of associate entities of Motilal Oswal Financial Services Limited are available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/Associate%20Details.pdf
Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
MOFSL, it’s associates, Research Analyst or their relative may have any financial interest in the subject company. MOFSL and/or its associates and/or Research Analyst may have actual/beneficial ownership of 1% or more securities in the subject company in
the past 12 months.
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 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 MOFSL 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 past 12 months. MOFSL and/or its associates may have received any compensation from the subject company in the past 12 months.
In the past 12 months , MOFSL 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 MOFSL or its associates in the past 12 months.
MOFSL 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, MOFSL 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. MOFSL 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 MOFSL 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. 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 clients which are not considered in above disclosures. 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 clients which are not considered in above disclosures.
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.
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.
Disclosures:
Disclosure of Interest Statement
Analyst ownership of the stock
Companies where there is interest
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 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 Financial Services Limited(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.
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.motilaloswal.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: na@motilaloswal.com, Contact No.:022-71881085.
* MOSFL 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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