1 July 2020
4QFY20 Results Update | Sector: Utilities
NHPC
Estimate change
TP change
Rating change
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CMP: INR20
TP: INR22 (+10%)
Neutral
Adj. profits improve on low base, higher generation
Capex run-rate increasing; maintain Neutral
NHPC’s results highlight the benefit of higher generation and the low base
of the previous year. Adjusted PAT rose to INR3.8b (v/s INR40m in 4QFY19).
The capex run-rate is expected to increase on account of investments in
new projects. However, their commissioning remains four to five years
away, implying FCF/RoEs would be dragged down in the near term.
Maintain
Neutral,
with TP of INR22/sh.
Profits rise on low base
NHPC’s standalone PAT increased sharply YoY to INR3.8b (adj. nos of
INR40m in 4QFY19) v/s our est. of INR3.5b. The YoY increase was attributed
to: 1) non-recognition of Subansiri income in the previous year, 2) higher
generation, and 3) higher other income, partly offset by the impact of
Survey & Investigation (S&I) expense. The slight beat on our estimate came
on account of higher other income, led by dividend from subs. On a
reported basis, PAT was 22% YoY lower at INR3.8b v/s reported PAT of
INR4.9b last year. The previous year, though, saw one-off gains related to
prior-period sales (INR4.8b).
Generation rose 8% YoY to 4.0BU in 4QFY20 on account of higher water
availability. Overall, plant availability factor was marginally lower at 73.7%
(v/s 74.1% in the previous year).
S/A other income was up 63% YoY to INR3.85b (v/s our est. of INR1.7b) led
by dividend from subs. Although, other expenses were up 81% YoY to
INR6.5b, led by an INR1.5b impact on account of S&I expense.
With the start of construction at the co.’s Lower Subansiri (2,000MW)
project (Oct’19), the co. has capitalized borrowing and administrative costs
for the same. This was not recognized in 4QFY19.
For FY20, consol. PAT was up 11% YoY to INR28.7b. CFO declined 8% YoY to
INR32.5b on account of stretched WC.
Management commentary: FY21 capex guidance increased to INR53b
NHPC noted it expects to incur capex of INR53b for FY21. A large part of this
pertains to the Subansiri, Parbati-II, Dibang, and Teesta-IV projects.
Construction works at the Subansiri project were impacted and suspended
for 20 days due to the nationwide lockdown. It has maintained its
commissioning timelines and expects completion by FY24.
Muted earnings growth; capex run-rate increasing
While the resumption of works at Lower Subansiri is a positive, progress on
the same needs to be monitored. In the past, agitation by locals has
impacted construction activities. Moreover, commissioning for the project
is still some time away (FY24 as per the management).
The capex run-rate, on the other hand, is expected to increase as the
company invests in / explores new projects, which would reduce FCF and
drag down RoEs in the near term. NHPC’s regulated equity growth, the key
earnings driver, would be muted over the next few years. We maintain
Neutral, with DCF-based TP of INR22/sh.
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
NHPC IN
10,045
201.4 / 2.7
29 / 15
-5/-2/-9
143
Financials & Valuations (INR b)
Y/E MARCH
2020 2021E 2022E
Sales
EBITDA
Adj. PAT
EBITDA Margin (%)
Cons. Adj. EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
Ratios
Net D:E
RoE (%)
RoCE (%)
Payout (%)
Valuations
P/E (x)
P/BV (x)
EV/EBITDA(x)
Div. Yield (%)
FCF Yield (%)
7.0
0.6
8.1
7.5
-1.9
7.5
0.6
7.9
6.0
-0.7
6.9
0.6
7.6
6.5
-0.4
0.7
9.2
7.3
61.9
0.7
8.4
7.2
44.9
0.7
8.6
7.6
44.9
100.1 105.2 111.8
54.9
28.7
54.9
2.9
10.7
31.2
58.7
26.8
55.8
2.7
-6.7
32.7
63.9
29.1
57.2
2.9
8.3
34.3
Shareholding pattern (%)
As On
Mar-20 Dec-19
Promoter
71.0
73.1
DII
14.2
12.2
FII
4.7
4.7
Others
10.2
10.0
FII Includes depository receipts
Mar-19
73.3
11.6
4.9
10.2
;
Aniket Mittal – Research Analyst (Aniket.Mittal@MotilalOswal.com); +91 22 6129 1572
13 February 2020
1
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
 Motilal Oswal Financial Services
NHPC
Quarterly performance (standalone) – INR m
Y/E March
Net Sales
YoY Change (%)
EBITDA
Depreciation
Interest
Other Income
Rate regulated activity
PBT before EO expense
Extra-Ord expense
PBT
Tax
Rate (%)
Reported PAT
Adj PAT
YoY Change (%)
1Q
21,290
-8.5
12,904
3,726
2,212
1,129
1,431
9,527
0
9,527
2,151
23
7,376
7,376
-14.5
FY19
2Q
3Q
4Q
24,950 15,714 14,617
26.5
4.9
28.6
15,966 5,958 4,945
4,044 4,016 4,115
2,283 2,226 2,228
4,716 1,199 2,359
575 1,775
917
14,930 2,690 1,878
0
0 4,887
14,930 2,690 6,765
2,745
868 1,842
18
32
27
12,185 1,822 4,923
12,185 1,822
36
19.6
-73.5
-98.1
1Q
24,213
13.7
15,040
3,866
2,366
872
1,989
11,668
0
11,668
2,857
24
8,811
8,811
19.5
FY20
2Q
3Q
4Q
26,054 17,951 19,136
4.4
14.2
30.9
15,780 9,278 5,594
3,857 3,873 3,858
2,521 1,556 1,512
4,992
649 3,850
1,024
17
407
15,418 4,515 4,481
0
0
0
15,418 4,515 4,481
2,023
478
652
13
11
15
13,395 4,037 3,829
13,395 4,037 3,829
9.9 121.6
FY19
76,725
10.7
39,928
15,900
8,949
9,248
8,234
32,561
4,887
37,448
11,142
29.8
26,306
21,419
-22.4
FY20
87,354
13.9
45,691
15,453
7,954
10,362
3,436
36,082
0
36,082
6,010
17
30,072
30,072
40.4
FY20
4QE
17,400
19.0
8,521
3,949
1,773
1,692
19
4,510
0
4,510
961
21
3,549
3,549
var.
(%)
3
9
-2
-12
-62
0
0
14
Source: MOFSL, Company
Conference call takeaways
Generation for 4Q was up 8% YoY to 4.0BU in 4QFY20 on account of higher
water availability. Although, plant availability factor was marginally lower at
73.7% (v/s 74.1% in the previous year) due to R&M activities at Baira Siul and
the shutdown of two units at Chamera II.
NHPC would provide a rebate of INR1.85b for the disruption caused by COVID-
19 at the DISCOM end.
Works at Subansiri were impacted and suspended for ~20 days due to the
nationwide lockdown. Work has now resumed and is being carried out in the
day shift. However, the company has not changed its scheduled date of
commissioning and expects the project to be completed in FY24.
Incentives: For FY20, the PAF incentive stood at INR3.6b, DSM incentive at
INR1.3b, and secondary energy income at INR3.3b.
FY20 capex stood at INR41.6b. The co. expects capex at INR53b for FY21.
NHPC noted the current quarter was impacted by higher S&I and CSR expenses.
Valuation and view
The resumption of works at Lower Subansiri is a positive, with the company now
also capitalizing expenses for the same. However, progress on this needs to be
monitored. In the past, agitation by locals has impacted construction activities.
Moreover, commissioning for the project is still some time away (FY24 as per
the management).
The capex run-rate, on the other hand, is expected to increase as the company
invests in / explores new projects, which would reduce FCF and drag down RoEs
in the near term. NHPC’s regulated equity growth, the key earnings driver,
would be muted over the next few years. We maintain Neutral, with a DCF-
based TP of INR22/sh.
1 July 2020
2
 Motilal Oswal Financial Services
NHPC
Financials and valuations
Income statement
Y/E March
Net Sales
Change (%)
Total Expenses
EBITDA
% of Net Sales
Depn. & Amortization
EBIT
Net Interest
Other income
Rate regulated
PBT before EO
EO expense
PBT after EO
Tax
Rate (%)
Reported PAT
Minority, JV & Asso.
Adjusted PAT
Change (%)
2015
82,441
11.2
30,278
52,163
63.3
17,153
35,010
12,728
9,132
5,220
36,634
-550
37,184
9,203
24.8
27,981
-3,067
24,364
42.0
2015
110,707
196,868
307,575
33,257
187,245
9,886
537,963
405,761
126,600
279,161
163,775
0
7,633
163,551
906
29,052
71,975
61,618
76,158
1,649
74,509
87,393
537,963
2016
83,540
1.3
35,323
48,218
57.7
14,320
33,898
11,182
10,924
5,509
39,149
0
39,149
10,003
25.5
29,147
-3,130
26,017
6.8
2016
110,707
205,720
316,427
31,681
199,382
15,136
562,627
342,331
116,191
226,140
167,416
0
5,999
228,446
928
19,045
72,847
135,626
65,375
1,304
64,070
163,071
562,627
2017
86,231
3.2
37,798
48,433
56.2
14,618
33,816
10,734
15,038
7,188
45,307
0
45,307
10,531
23.2
34,776
-4,482
30,294
16.4
2017
102,593
187,555
290,148
33,822
192,267
16,653
532,891
353,055
130,784
222,271
175,876
0
10,200
193,424
1,008
18,540
34,725
139,152
68,881
1,576
67,305
124,544
532,891
2018
77,512
-10.1
35,494
42,018
54.2
14,791
27,227
9,226
11,014
7,362
36,376
0
36,376
8,629
23.7
27,748
-2,709
25,039
-17.3
2018
102,593
197,586
300,179
29,349
186,021
17,109
532,658
255,977
44,204
211,772
190,871
0
11,248
189,985
1,047
13,460
33,191
142,287
71,219
1,838
69,381
118,767
532,658
2019
89,829
15.9
39,830
49,999
55.7
16,580
33,420
8,951
8,639
8,434
41,542
0
41,542
13,236
31.9
28,306
-2,349
25,956
3.7
2019
100,450
207,528
307,978
28,685
190,658
47,207
574,528
310,216
60,450
249,766
150,368
0
12,829
254,292
1,252
28,380
22,453
202,207
92,727
1,963
90,764
161,565
574,528
2020
100,081
11.4
45,139
54,941
54.9
16,140
38,801
7,960
7,686
-2,405
36,122
0
36,122
2,905
8.0
33,217
-4,471
28,746
10.7
2020
100,450
213,256
313,706
27,639
232,061
42,291
615,697
320,609
76,591
244,019
171,804
0
13,977
278,906
1,266
38,164
16,933
222,543
93,008
3,167
89,842
185,898
615,697
2021E
105,210
5.1
46,484
58,726
55.8
16,598
42,128
9,284
7,217
-5,220
34,841
0
34,841
3,625
10.4
31,216
-4,383
26,833
-6.7
2021E
100,450
228,034
328,485
28,283
252,113
42,291
651,171
320,609
93,188
227,421
225,457
0
14,007
277,295
1,266
35,796
17,069
223,164
93,008
3,167
89,842
184,287
651,171
(INR m)
2022E
111,774
6.2
47,829
63,944
57.2
16,598
47,346
12,312
7,612
-5,220
37,425
0
37,425
4,090
10.9
33,335
-4,280
29,055
8.3
Balance sheet
Y/E March
Share Capital
Reserves
Net Worth
Minority Interest
Total Loans
Deferred Tax Liability
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Goodwill
Investments
Curr. Assets
Inventories
Account Receivables
Cash and Bank Balance
Others
Curr. Liability & Prov.
Account Payables
Provisions & Others
Net Curr. Assets
Appl. of Funds
(INR m)
2022E
100,450
244,031
344,481
28,824
271,876
42,291
687,472
320,609
109,786
210,823
281,420
0
14,037
274,200
1,266
35,211
13,939
223,784
93,008
3,167
89,842
181,192
687,472
1 July 2020
3
 Motilal Oswal Financial Services
NHPC
Financials and valuations
Ratios
2015
Basic (INR)
EPS
growth
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/EBITDA
Dividend Yield (%)
Return Ratios (%)
EBITDA Margins (%)
Net Profit Margins (%)
RoE
RoCE (post-tax)
RoIC (post-tax)
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Payables (Days)
2.2
42.0
3.8
27.8
0.6
32.8
11.0
6.4
0.87
8.0
2.5
63.3
29.6
7.9
6.5
8.9
0.3
0.2
4
129
7
2015
52,163
-5,631
-21,137
-8,092
17,302
-17,260
8,425
1,155
-7,680
0
-196
-16,544
-8,484
13,415
-11,809
-2,187
74,162
71,975
2016
2.4
6.8
3.6
28.6
1.3
67.6
10.7
6.9
0.88
9.1
5.2
57.7
31.1
8.2
6.2
8.0
0.4
0.1
4
83
6
2016
48,218
11,134
-30,491
-8,718
20,143
-21,470
7,667
6,341
-7,462
0
-6,184
-15,020
-18,952
28,347
-11,809
872
71,975
72,847
2017
3.0
25.6
4.4
28.3
2.5
98.9
9.9
6.7
1.04
10.2
8.4
56.2
35.1
10.0
7.0
8.3
0.4
0.2
4
78
7
2017
48,433
35,873
-11,834
-10,808
61,664
-15,870
7,024
-9,799
-18,645
-26,259
-8,364
-13,912
-32,737
131
-81,141
-38,122
72,847
34,725
2018
2.4
-17.3
3.9
29.3
1.2
55.1
8.2
5.2
0.69
9.2
6.1
54.2
32.3
8.5
5.6
6.8
0.4
0.1
5
63
9
2018
42,018
6,409
10,852
-8,301
50,978
-15,673
4,167
-2,377
-13,883
0
43,550
-11,440
-22,310
-48,429
-38,629
-1,534
34,725
33,191
2019
2.6
5.9
4.2
30.7
1.0
44.3
7.8
4.7
0.65
8.0
5.0
55.7
28.9
8.5
5.2
6.6
0.4
0.2
5
115
8
2019
49,999
-12,044
6,279
-8,772
35,463
-10,853
3,125
-12,325
-20,053
-6,062
25,880
-12,151
-15,267
-18,547
-26,148
-10,738
33,191
22,453
2020
2.9
10.7
4.5
31.2
1.5
61.9
7.0
4.5
0.64
8.1
7.5
54.9
28.7
9.2
7.3
8.9
0.4
0.2
5
139
12
2020
54,941
-20,394
5,911
-7,939
32,519
-36,312
2,671
1,177
-32,464
0
60,157
-13,326
-28,974
-17,740
117
171
22,453
22,624
2021E
2.7
-6.7
4.3
32.7
1.2
44.9
7.5
4.6
0.61
7.9
6.0
55.8
25.5
8.4
7.2
9.3
0.5
0.2
4
124
11
2021E
58,726
2,368
-5,220
-3,625
52,249
-53,653
7,217
-621
-47,057
0
20,051
-9,284
-15,824
0
-5,056
136
16,933
17,069
2022E
2.9
8.3
4.5
34.3
1.3
44.9
6.9
4.4
0.58
7.6
6.5
57.2
26.0
8.6
7.6
10.9
0.5
0.2
4
115
10
Cash flow statement
Y/E March
EBITDA
WC
Others
Direct taxes (net)
CF from Op. Activity
Capex
Interest income
Investments
Others
CF from Inv. Activity
Share capital
Borrowings
Finance cost
Dividend
Others
CF from Fin. Activity
(Inc)/Dec in Cash
Opening balance
Closing balance
(INR m)
2022E
63,944
585
-5,220
-4,090
55,219
-55,963
7,612
-621
-48,972
0
19,763
-12,312
-16,828
0
-9,377
-3,130
17,069
13,939
1 July 2020
4
 Motilal Oswal Financial Services
NHPC
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
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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 relatives 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 relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication 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 securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
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 Motilal Oswal Financial Services
NHPC
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
clients which are not considered in above disclosures.
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.
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.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.
* 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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