6 August 2020
1QFY21 Results Update | Sector: Healthcare
Strides Pharma
Estimate change
TP change
Rating change
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CMP: INR535
TP: INR650 (+22%)
Buy
Strong revival in earnings led by Other Regulated / Africa
Superior execution leads to recovery in US sales for the quarter
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
STR IN
90
47.9 / 0.6
547 / 271
25/17/30
419
70.3
After posting adjusted loss of INR274m in 4QFY20, Strides Pharma (STR)
made a strong comeback in 1QFY21 with adjusted PAT of INR560m. This was
on account of strong traction witnessed in the US / Other Regulated / Africa
markets.
We increase our EPS estimate for FY21/FY22 by 19.6%/14.2% to factor a
strong ANDA pipeline for the US market, good order-book visibility for the
Other Regulated market, revival in Africa sales, and improved operating
leverage. We roll our price target to INR650 on a 12M forward SOTP basis.
We remain positive on STR on the back of considerable improvement
expected in return ratios over FY20–22 and attractive valuations. Maintain
Buy.
STR’s 1QFY21 revenues were up 14% YoY to INR7.8b (est: INR6.5b).
Other Regulated sales were up 53% YoY to INR2.6b (33% of sales). Emerging
Markets sales rose 17% YoY to INR1.5b (19% of sales).
US sales fell 4% YoY to INR3.7b (48% of sales). Excluding Ranitidine sales in
1QFY20, YoY growth was 8% for the quarter.
The gross margin (GM) expanded 740bp YoY to 61%, led by a better product
mix. However, the EBITDA margin expanded at lower rate of 130bp YoY to
19.3% on higher opex (employee cost +245bp YoY; other expenses +370bp
YoY as % of sales).
EBITDA for the quarter was up 22% YoY to INR1.5b (est: INR1.1b).
STR reported exceptional gains of INR490m related to exchange rate on
foreign currency loans, derivatives, deferred considerations, and intra-group
loans.
Adjusting for the same, PAT was up 59% YoY to INR560m (est: INR290m).
While STR continues to gain market share in existing products, new launches
would enable it to achieve sales of ~USD240m in the US for FY21 (compared
with USD50m for 1QFY21).
STR has guided for 6–8 ANDA launches for FY21.
It has completed remediation measures, verified from third-party
consultants, and awaits clarity from the USFDA regarding an inspection.
The growth prospects in Other Regulated remain promising on the back of
enhanced product offerings as well as reach.
Net debt was INR10.1b at the end of 1QFY21.
Strong beat on earnings led by traction in US / Other Regulated
Financials & Valuations (INR b)
Y/E MARCH
2020 2021E 2022E
27.5 34.3 39.2
Sales
5.3
7.0
8.2
EBITDA
1.4
3.1
4.0
Adj. PAT
EBIT Margin (%)
13.1 14.4 15.1
15.3 34.6 45.0
Cons. Adj. EPS (INR)
73.3 125.0 30.3
EPS Gr. (%)
282.6 312.6 346.7
BV/Sh. (INR)
Ratios
Net D:E
0.3
0.2
0.1
5.3 11.6 13.7
RoE (%)
6.9 10.4 11.9
RoCE (%)
Payout (%)
82.4 24.2 24.2
Valuations
35.0 15.5 11.9
P/E (x)
12.6
9.6
8.0
EV/EBITDA (x)
Div. Yield (%)
0.7
1.5
1.7
FCF Yield (%)
1.2
5.6
8.5
2.4
2.0
1.7
EV/Sales (x)
Highlights from management commentary
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Jun-20 Mar-20
29.7
31.3
19.4
18.9
26.8
28.8
24.1
21.1
Jun-19
31.2
24.3
25.3
19.3
FII Includes depository receipts
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.
Tushar Manudhane - Research Analyst
(Tushar.Manudhane@MotilalOswal.com)
Research Analyst: Hitakshi Chandrani
(Hitakshi.Chandrani@motilaloswal.com);
Bharat Hegde
(Bharat.Hegde@motilaloswal.com)
 Motilal Oswal Financial Services
Strides Pharma
Valuation and view
We expect a strong 72% earnings CAGR over FY20–22, led by a 23% sales CAGR
in Other Regulated and a 52% sales CAGR in Emerging Markets, supported by
140bp margin expansion.
We increase our earnings estimate by 19.6%/14.2% for FY21/FY22 to factor
superior execution across the markets and better operating leverage. We roll
our price target to INR650 on a 12M forward SOTP basis (8x EV/EBITDA for the
US / Other Regulated markets, 6x for Emerging Markets, and 5x for
Institutional). Given the strong earnings trajectory and attractive valuation, we
maintain BUY on the stock.
(INR m)
FY21 vs Est
1QE
%
6,513 20.0
-5.0
5,406
1,107 36.4
-10
460
647 57.4
-20
395
190
442 74.8
0
442 185.1
41
9.3
110
291 255.8
291 92.5
Consol. Quarterly Perf.
Y/E March
Net Sales
YoY Change (%)
Total Expenditure
EBITDA
YoY Change (%)
Depreciation
EBIT
YoY Change (%)
Interest
Other Income
PBT before EO expense
Extra-Ord expense
PBT
Tax
Rate (%)
MI & (P)/L of Asso. Cos.
Reported PAT from Continuing
Ops.
Adj. PAT from Continuing Ops.
YoY Change (%)
Margins (%)
1Q
6,858
3.4
5,621
1,237
188.9
429
808
485.8
353
103
557
93
464
31
6.7
178
FY20
2Q
3Q
7,151 7,324
37.6
28.5
5,685 5,516
1,466 1,808
203.2 150.6
420
435
1,046 1,374
498.0 210.2
404
396
130
122
772 1,100
-845
-171
1,617 1,270
74
113
4.6
8.9
213
235
4Q
6,186
0.4
5,350
837
-9.4
453
384
-38.8
403
177
157
1,888
-1,731
-105
6.0
421
1Q
7,818
14.0
6,308
1,510
22.1
491
1,019
26.1
369
123
773
-488
1,261
33
2.6
192
1,036
560
64.1
7.2
FY21E
2QE
3QE
8,274 8,887
15.7
21.3
6,603 7,065
1,671 1,822
14.0
0.7
500
510
1,171 1,312
12.0
-4.5
362
350
135
145
944 1,107
0
0
944 1,107
109
138
11.5
12.5
130
171
706
706
34.7
8.5
798
798
4.0
9.0
4QE
9,293 27,520 34,272
50.2
26.3 24.5
7,339 22,172 27,315
1,954 5,347 6,957
133.5 109.3 30.2
515 1,737 2,017
1,438 3,610 4,940
275.1 161.2 36.9
332 1,557 1,413
162
531
565
1,269 2,584 4,093
0
965 -488
1,269 1,619 4,581
169
113
449
13.3
7.0
9.8
108 1,046
600
992
992
NA
10.7
460 3,531
1,358 3,055
121.5 125.0
4.9
8.9
FY20 FY21E
254 1,331
341
524
-995.6 NA
5.0
7.3
922 -2,048
767
-274
203.3 NA
10.5
-4.4
-14.7
4.5
Key Performance Indicators (Consolidated)
Y/E March
INR m
Regulated Market
US
Other Reg Markets
Emerging Markets
Africa
Institutional
Cost Break-up
RM Cost (% of Sales)
Staff Cost (% of Sales)
Other Cost (% of Sales)
Gross Margins(%)
EBITDA Margins(%)
EBIT Margins(%)
1Q
5,164
3,459
1,705
1,281
401
880
FY20
2Q
3Q
6,200
6,786
3,980
4,609
2,220
2,177
980
566
385
295
595
271
4Q
5,191
2,931
2,260
1,025
400
625
1Q
6,344
3,738
2,606
1,503
693
810
FY21E
2QE
6,799
4,179
2,620
1,475
732
744
FY20
3QE
7,330
4,609
2,721
1,557
767
790
4QE
7,603
4,848
2,755
1,661
802
858
FY21E
23,783 28,076
15,422 17,374
8,361 10,702
3,854 6,196
1,482 2,994
2,372 3,202
46.0
14.2
21.8
54.0
18.0
11.8
41.8
15.3
22.4
58.2
20.5
14.6
35.6
15.2
24.4
64.4
24.7
18.8
39.9
20.1
26.5
60.1
13.5
6.2
38.7
16.6
25.4
61.3
19.3
13.0
38.0
17.5
24.3
62.0
20.2
14.2
37.5
17.5
24.5
62.5
20.5
14.8
37.9
17.2
23.9
62.1
21.0
15.5
40.8
16.1
23.7
59.2
19.4
13.1
38.0
17.2
24.5
62.0
20.3
14.4
6 August 2020
2
 Motilal Oswal Financial Services
Strides Pharma
Conference call highlights
STR has put the new investment related to the Sterile Injectables business on
hold considering the long gestation nature of the business and unprecedented
developments related to the Ranitidine withdrawal and the COVID-19 outbreak.
STR has a steady base business, with no price erosion in its US portfolio.
Based on WHO’s approval, STR would start filing TLD in different countries,
aiding growth in 2HFY21.
STR filed one ANDA related to g-Levothyroxine. It would file for another three
RLDs by the end of 3QFY21.
ETR is expected to be 10–12% for FY21.
STR would commence phase I clinical trials for Glargine in 2QFY21.
STR is contemplating going to the EU/US on its own for Glargine. Based on
changes in the regulatory pathway, development cost has reduced to USD25–
30m, against USD70–75m initially, providing the company the impetus to
conduct its own clinical studies.
Valuation and view
The US market bounced back with 8% YoY growth to USD50m (excluding Ranitidine
sales for a like-to-like comparison). This was despite the adverse impact of the
Ranitidine recall in 4QFY20. STR received three ANDA approvals and launched two
products during the quarter. It continues to maintain market share in the base
business even during the pandemic and has alluded to no price erosion on the base
portfolio. STR has built a strong ANDA pipeline, with 32 products yet to be
commercialized, 39 awaiting approval, and another 38 under development and yet
to be filed. Considering this and its increased market share in commercialized
products, we expect US sales to revive and exhibit a 6% CAGR to USD270m over
FY20–22.
STR recorded the highest ever quarterly revenue of INR2.6b in the Other Regulated
market, implying growth of 53% on a YoY basis in 1QFY21. STR continues to
outperform the industry in this segment, led by product launches, increased market
share, and portfolio optimization. STR also witnessed an increase in supplies to
Arrotex, with healthy order book visibility going forward. STR is on track to file 20+
products and introduce 15+ products across markets in the Other Regulated
segment. We expect the business to exhibit a 23% CAGR in sales to INR12.6b over
FY20–22.
STR exhibited 17% YoY / 47% QoQ growth in the Emerging Markets business, led by
an increase in primary sales in Africa. STR also saw revival in institutional sales for
the quarter on a QoQ basis.
STR received WHO’s approval for TLD. It would start filing TLD in different countries,
which would aid growth in 2HFY21. On the back of continued momentum in the
South Africa market and institutional revenue inflow, we expect Emerging Markets
to grow at a 52% CAGR to INR3.5b over FY20–22.
Base business steady; new launches to drive growth in US segment
Other Regulated market on healthy growth path
Emerging Markets business in revival mode
6 August 2020
3
 Motilal Oswal Financial Services
Strides Pharma
Valuation and view
We expect a strong 72% earnings CAGR over FY20–22, led by a 23% sales CAGR
in Other Regulated and 52% sales CAGR in Emerging Markets, supported by
140bp margin expansion.
We increase our earnings estimate by 19.6%/14.2% for FY21/FY22 to factor
superior execution across the markets and better operating leverage. We roll
our price target to INR650 on a 12M forward SOTP basis (8x EV/EBITDA for US /
Other Regulated, 6x for Emerging Markets, and 5x for Institutional). Given the
strong earnings trajectory and attractive valuation, we maintain BUY on the
stock.
Exhibit 2: One-year forward P/B
Max (x)
-1SD
8.9
P/B (x)
Min (x)
Avg (x)
+1SD
Max (x)
-1SD
Exhibit 1: One-year forward P/E
P/E (x)
280.0
210.0
140.0
70.0
0.0
Min (x)
Avg (x)
+1SD
222.9
6.1
8.0
4.9
3.2
1.1
1.5
109.7
61.2
11.2
12.8
3.3
12.9
1.4
0.5
Source: MOFSL, Company, Bloomberg
Source: MOFSL, Company, Bloomberg
6 August 2020
4
 Motilal Oswal Financial Services
Strides Pharma
Financials and valuations
Consolidated – Income Statement
Y/E March
Total Income from Operations
Change (%)
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Minority Interest
Reported PAT from Continuing Ops.
Adj. PAT from Continuing Ops.
Change (%)
Margin (%)
FY15
11,959
-10.8
2,288
19.1
640
1,648
474
386
1,560
-74
1,486
532
35.8
-6
16
1,007
54.7
8.4
FY16
28,622
139.3
4,140
14.5
1,313
2,827
1,682
921
2,067
-414
1,653
425
25.7
-88
1,317
1,624
61.3
5.7
FY17
34,834
21.7
6,428
18.5
1,872
4,557
2,269
1,686
3,973
-1,006
2,967
470
15.8
458
2,039
2,886
77.6
8.3
FY18
28,394
-18.5
3,965
14.0
1,540
2,425
1,962
941
1,403
-436
967
97
10.1
168
702
1,007
-65.1
3.5
FY19
21,784
-23.3
2,557
11.7
1,174
1,383
793
408
998
83
1,081
-269
-24.8
457
893
789
-21.6
3.6
FY20
27,520
26.3
5,347
19.4
1,737
3,610
1,557
531
2,584
-965
1,619
113
7.0
1,014
492
1,368
73.3
5.0
FY21E
34,272
24.5
6,957
20.3
2,017
4,940
1,413
565
4,093
488
4,581
449
9.8
600
3,532
3,055
125.0
9.0
(INR m)
FY22E
39,218
14.4
8,157
20.8
2,233
5,925
1,290
647
5,282
0
5,282
555
10.5
700
4,027
4,027
30.3
10.3
Consolidated – Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Minority Interest
Total Loans
Deferred Tax Liabilities
Capital Employed
FY15
596
10,853
11,449
187
8,917
-54
20,500
9,437
3,792
5,645
1,368
1,712
6,300
9,668
2,077
3,900
1,469
2,223
4,194
2,065
1,268
861
5,474
20,500
FY16
894
25,685
26,579
502
35,418
-502
61,997
18,987
1,468
17,520
9,267
8,149
13,409
25,256
6,131
10,330
3,116
5,679
11,605
7,836
2,943
826
13,652
61,997
FY17
894
26,210
27,104
1,640
36,997
89
65,829
22,233
2,771
19,462
9,670
7,802
15,952
27,582
7,380
9,971
3,295
6,936
14,638
7,521
5,986
1,131
12,944
65,829
FY18
895
23,651
24,546
1,547
29,494
-615
54,971
26,233
4,311
21,922
9,147
3,220
8,159
21,721
5,520
8,822
3,033
4,346
9,220
7,121
1,364
736
12,501
54,971
FY19
895
25,592
26,487
1,530
37,609
327
65,952
28,184
5,485
22,699
13,776
4,530
8,740
28,322
8,742
9,872
5,167
4,543
12,137
8,890
1,447
1,801
16,185
65,952
FY20
896
24,379
25,274
672
21,865
-1,778
46,033
23,923
7,222
16,701
4,286
4,130
11,495
22,921
7,825
9,317
2,371
3,408
13,520
7,978
3,647
1,895
9,402
46,033
FY21E
896
27,056
27,952
672
20,365
-1,778
47,212
27,789
9,239
18,550
4,286
1,388
11,495
26,604
9,640
11,455
1,265
4,244
15,133
8,232
4,542
2,360
11,471
47,212
(INR m)
FY22E
896
30,109
31,005
672
19,365
-1,778
49,265
29,462
11,472
17,991
4,286
840
11,495
31,039
10,962
13,216
2,005
4,856
16,408
8,510
5,198
2,700
14,632
49,265
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Goodwill on Consolidation
Capital WIP
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Appl. of Funds
6 August 2020
5
 Motilal Oswal Financial Services
Strides Pharma
Financials and valuations
Ratios
Y/E March
EPS (INR)
Cash EPS (INR)
BV/Share (INR)
DPS (INR)
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/Equity
FY15
11.3
18.4
128.0
71.9
43,880.3
47.5
29.0
4.2
4.6
24.2
13.4
-17.6
9.4
7.3
10.8
1.3
63
119
63
2.3
3.5
0.1
FY15
9,920
640
163
-560
-959
9,205
-8,371
834
-2,406
-1,572
4,515
427
2,536
31
3,208
-381
-7,070
-4,213
-843
2,312
1,469
FY16
18.2
32.8
297.2
2.8
19.8
29.5
16.3
1.8
2.8
19.4
0.5
-32.7
8.5
6.8
8.7
1.5
78
132
100
2.2
1.7
0.7
FY16
1,464
1,520
998
-770
-3,417
-206
938
732
-3,658
-2,925
286
-25,153
-28,525
12,264
18,789
-1,347
-251
29,439
1,647
1,469
3,116
FY17
32.3
53.2
303.1
4.0
21.2
16.6
10.1
1.8
2.3
12.7
0.7
-43.2
10.8
8.3
10.1
1.6
77
104
79
1.9
2.0
0.7
FY17
4,971
1,987
1,521
-586
-3,413
4,480
-1,599
2,881
-6,746
-3,865
1,269
-607
-6,084
165
5,962
-2,370
-376
3,382
179
3,116
3,295
FY18
11.3
28.5
274.5
5.3
68.1
47.5
18.8
1.9
2.6
18.7
1.0
-23.7
3.9
5.1
5.5
1.1
71
113
92
2.4
1.2
0.7
FY18
7,058
1,939
1,827
-536
-1,907
8,382
-6,512
1,871
-3,994
-2,124
12,413
-2,593
5,826
39
-7,112
-2,631
-453
-9,814
-2,118
5,151
3,033
FY19
8.8
22.0
296.2
2.0
20.1
60.6
24.4
1.8
3.7
31.4
0.4
-28.7
3.1
3.8
3.9
0.8
146
165
149
2.3
1.7
0.9
FY19
3,444
1,719
1,746
-558
-3,232
3,119
-2,519
600
-3,164
-2,564
2,560
-881
-1,485
14
4,076
-1,995
-180
3,489
2,605
2,562
5,167
FY20
15.2
34.6
282.6
3.7
82.4
35.2
15.5
1.9
2.4
12.6
0.7
6.5
5.2
6.9
8.9
1.2
104
124
106
1.7
2.3
0.3
FY20
485
1,878
1,449
-450
-3,262
100
1,948
2,048
-1,463
585
13,090
1,435
13,062
5
-13,843
-1,708
-1,539
-16,398
-1,288
3,659
2,371
FY21E
34.2
56.7
312.6
7.9
24.2
15.7
9.4
1.7
2.0
9.6
1.5
30.1
11.5
10.4
14.6
1.2
103
122
88
1.8
3.5
0.3
FY21E
4,581
2,017
848
-449
-3,175
3,821
0
3,821
-1,125
2,696
0
565
-560
0
-1,500
-1,413
-854
-4,367
-1,106
2,371
1,265
FY22E
45.0
70.0
346.7
9.0
24.2
11.9
7.6
1.5
1.7
8.0
1.7
45.4
13.7
11.9
15.6
1.3
102
123
79
1.9
4.6
0.2
Consolidated – Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
(INR m)
FY22E
5,282
2,233
643
-555
-2,421
5,182
0
5,182
-1,125
4,057
0
647
-478
0
-1,000
-1,290
-974
-3,964
740
1,265
2,005
6 August 2020
6
 Motilal Oswal Financial Services
Strides Pharma
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
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial
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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
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http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
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A graph of daily closing prices of securities is available at
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Research Analyst views on Subject Company may vary based on Fundamental
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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
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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.
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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
6 August 2020
7
 Motilal Oswal Financial Services
Strides Pharma
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
********************************************************************************************************************************
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.
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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
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customers by virtue of their receiving this report.
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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
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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
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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
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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.
6 August 2020
8