16 June 2020
4QFY20 Results Update | Sector: Metals
NMDC
Estimate change
TP change
Rating change
Motilal Oswal values your support in
the Asiamoney Brokers Poll 2020 for
India Research, Sales and Trading
team. We
request your ballot.
CMP: INR85
TP: INR110 (+30%)
Buy
Miss due to lower-than-expected realization
Volume-related challenges persist; valuation attractive
National Mineral Development Corporation (NMDC)’s 4QFY20 results
disappointed, with EBITDA declining 23% YoY on lower volumes and weaker-
than-expected realization.
While we expect the recent iron ore price cuts to support volumes in the
near term, we expect prices to recover from 2HFY21. We have lowered our
NMDC IN
3,062
FY21/FY22 EBITDA estimates by 12%/13%. Maintain
Buy,
with TP of
260 / 3.4
INR110/sh.
140 / 62
7/-8/-6
728
30.4
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
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 (%)
5.5
0.9
3.9
6.5
9.4
0.9
6.7
6.5
7.6
0.9
5.4
6.5
-0.1
17.5
15.5
54.1
-0.1
9.9
9.2
60.7
-0.1
11.6
10.9
49.2
117.0
62.2
46.9
53.2
15.3
89.9
83.6
35.3
27.7
42.3
9.1
93.5
98.5
44.3
34.2
45.0
11.2
23.5
99.2
-1.9 -40.9
Note: Above nos. are consol.
Shareholding pattern (%)
As On
Mar-20 Dec-19
Promoter
69.7
72.3
DII
20.1
17.7
FII
6.0
6.0
Others
4.3
4.0
FII Includes depository receipts
Operational miss on account of lower-than-expected realization
4QFY20 adj. EBITDA declined 5% QoQ (-23% YoY) to INR15.5b due to
negative operating leverage. Sales volumes at 8.6mt, although up 2% QoQ,
were down 16% YoY. Similarly, production stood at 9.5mt, up 10% QoQ;
however, it fell 11% YoY, leading to the lower absorption of fixed costs.
EBITDA was 16% lower v/s est., primarily attributed to lower-than-expected
realization (INR3,698/t v/s est. of INR3,922/t).
Derived domestic realization came in at INR3,494/t, up INR100/t QoQ,
against an ~INR450/t average increase in announced price hikes in 4QFY20.
As a result, EBITDA/t stood at INR1,796, down 8% QoQ / 8% YoY.
PBT declined 3% QoQ to INR16.3b. The company paid income tax of INR7.7b
under a one-time settlement scheme of pending cases (shown as contingent
liabilities in the books). The company also paid INR1.4b as a one-time
settlement for service tax liability against the provision of INR2.8b, resulting
in net write-back of INR1.4b.
Reported PAT declined 74% QoQ / 76% YoY to INR3.5b. Adj. PAT after
exceptional items of INR9.3b was down 10% QoQ (6% YoY) to INR12.7b.
The company made an upfront payment of INR2.3b toward the allocation of
the Tokisud and Rohne coal blocks during the quarter.
The company reported net cash of INR18.3b (INR6/sh) at the end of FY20.
FY20 rev. / EBITDA / adj. PAT declined 4%/13%/2% YoY to
INR117b/INR62b/INR47b.
Weak profitability expected in 1QFY21
During April–May, NMDC took a cumulative price cut of INR900/t (~30%).
Moreover, sales declined 35% YoY to 3.93mt, weighed by the impact of
COVID-19.
The company expects iron ore demand and pricing to remain weak in
1HFY21, following which it expects normalization.
We also expect prices to be subdued in 1HFY21 and rise by INR300/t over
current levels in 2HFY21.
Mar-19
72.3
18.9
3.9
4.9
Amit Murarka - Research analyst
(Amit.Murarka@motilaloswal.com) +91 22 7199 2309
Aniket Mittal – Research Analyst
(Aniket.Mittal@MotilalOswal.com); +91 22 61291572
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
NMDC
Valuation and view
We expect NMDC to increase prices once demand normalizes in 2HFY21.
However, we expect overall pricing to remain subdued in India. Higher global
iron ore prices are likely to keep exports higher, thereby keeping domestic iron
ore supply in check. With large steel players receiving vesting orders for captive
mines, NMDC would have to rely largely on smaller steel players to maintain its
volumes.
A favorable decision on the Donimalai mine would increase NMDC’s volumes by
~20%. The company has spent ~INR16.5b on the greenfield Nagarnar steel plant,
with guided commissioning in FY21E. However, we remain skeptical on the
commissioning of the plant and have thus not factored this in our earnings.
We value the stock at INR110/share on an SOTP basis – 5x FY22E EV/EBITDA for
its core Iron Ore Mining business and 50% book value for the Nagarnar plant
(INR32/share). At CMP of INR85/share, the stock ascribes INR46/share (net of
cash of INR7/share and 50% investment in the steel plant of INR32/share) to its
core business, implying 3.2x FY22E EV/EBITDA. Also, the stock provides dividend
yield of ~6.5% at current prices.
Reiterate Buy on an attractive valuation.
Quarterly Performance (Standalone) – INR m
Y/E March
Net Sales
EBITDA
Change (YoY %)
Interest
Depreciation
Other Income
PBT (before EO Item)
Extra-ordinary item
PBT (after EO Item)
Total Tax
% Tax
Reported PAT
Adjusted PAT
1Q
24,220
14,788
-8.7
108
616
1,251
15,316
-550
14,766
5,013
34.0
9,753
9,877
FY19
2Q
3Q
24,379 36,494
13,824 22,788
7.6
71.2
97
96
675
694
1,310
1,361
14,362 23,360
-1,232 -1,245
13,131 22,115
6,767
6,347
51.5
28.7
6,364 15,768
9,262 15,064
4Q
36,433
20,015
-3.9
102
804
1,961
21,070
906
21,976
7,438
33.8
14,538
13,587
1Q
32,637
19,265
-3.8
117
648
1,228
19,728
-596
19,132
7,337
38.4
11,794
12,390
FY20
2Q
3Q
22,418 30,064
11,126 16,334
-42.2
46.8
97
98
976
646
1,275
1,302
11,329 16,892
-524
-419
10,805 16,473
3,771
2,707
34.9
16.4
7,034 13,766
7,558 14,185
FY19
FY20
4Q
31,873 1,21,527 1,16,992
15,478 71,416 62,203
-5.2
13.0
-12.9
-213
403
99
675
2,789
2,944
1,333
5,883
5,138
16,350 74,107 64,298
-9,238
-2,120 -10,778
7,112 71,987 53,521
3,598 25,565 17,413
50.6
35.5
32.5
3,514 46,422 36,108
12,752 47,789 46,886
FY20 vs Est
4QE (%)
33,609
-5
18,500
-16
17.6
98
804
-16
1,302
2
18,901
-13
-688
18,213
-61
4,763
-24
26.2
13,450
-74
13,467
-5
Exhibit 1: Operating metrics
Production - m tons
Sales volume - m tons
Blended realization - INR/t
Lumps
Fines
EBITDA/t
Operating cost (ex-roy) - INR/t
1Q
8.50
9.18
3,094
2,425
2,185
1,765
793
FY18
2Q
3Q
7.18
8.56
8.30
8.06
2,919 3,064
2,283 2,400
2,043 2,127
1,549 1,652
951
769
4Q
11.35
10.54
3,685
3,067
2,727
1,976
986
1Q
6.98
6.78
3,573
3,017
2,660
2,182
734
FY19
2Q
3Q
5.26
9.54
6.71
8.70
3,635 4,193
3,317 3,550
2,910 3,027
2,061 2,618
1,073
747
4Q
10.59
10.17
3,583
2,833
2,560
1,968
959
1Q
8.43
8.67
3,765
2,954
2,714
2,222
872
FY20
2Q
3Q
5.01
8.58
5.82
8.41
3,854 3,575
3,033 2,633
2,793 2,393
1,913 1,942
1,338
943
4Q
9.47
8.62
3,698
3,103
2,824
1,796
1,225
Source: MOFSL, Company
16 June 2020
2
 Motilal Oswal Financial Services
NMDC
Exhibit 2: Target price derivation
Y/E March
Iron ore
EBITDA per ton (INR)
Volumes (m tons)
EBITDA
Target EV/EBITDA(x)
Target EV
Less: Net Debt
Add: 50% CWIP
Equity Value
Target price (INR/share)
2017
1,262
35.6
44,944
2018
1,752
36.1
63,198
2019
2,207
32.4
71,416
2020
1,974
31.5
62,203
2021E
1,240
28.5
35,331
2022E
1,406
31.5
44,302
5.0
2,21,509
-16,846
98,652
3,37,006
110
Source: MOFSL, Company
16 June 2020
3
 Motilal Oswal Financial Services
NMDC
Financials and Valuations
Income Statement
Y/E March
Net sales
Change (%)
EBITDA
% of Net Sales
EBITDA per ton ore
Depn. & Amortization
EBIT
Net Interest
Other income
PBT before EO
EO income
PBT after EO
Tax
Rate (%)
Reported PAT
Adjusted PAT
Change (%)
2015
1,23,564
2.5
81,369
65.9
2,666
1,622
79,747
23,200
1,02,946
1,02,946
33,460
32.5
69,487
69,487
2.5
2016
64,556
-47.8
34,998
54.2
1,214
2,078
32,920
17,744
50,664
-1,848
48,816
14,769
30.3
34,047
35,335
-49.1
2017
88,294
36.8
44,944
50.9
1,262
1,962
42,982
9,088
52,070
-8,933
43,137
17,038
39.5
26,099
31,504
-10.8
2018
1,16,149
31.5
63,198
54.4
1,752
2,560
60,638
371
5,197
65,464
-5,309
60,155
22,093
36.7
38,062
41,421
31.5
2019
1,21,527
4.6
71,416
58.8
2,207
2,789
68,628
403
5,883
74,107
-2,120
71,987
25,565
35.5
46,422
47,789
15.4
2020
1,16,992
-3.7
62,203
53.2
1,974
2,944
59,259
99
5,138
64,298
-10,778
53,521
17,413
32.5
36,108
46,886
-1.9
2021E
83,557
-28.6
35,331
42.3
1,240
2,976
32,355
440
3,853
35,768
35,768
9,014
25.2
26,754
26,754
-40.9
(INR m)
2022E
98,505
17.9
44,302
45.0
1,406
3,226
41,076
440
3,853
44,489
44,489
11,211
25.2
33,278
33,278
24.4
Balance Sheet
Y/E March
Share Capital
Reserves
Share holders funds
Loans
Long-term Provisions
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Investments
Curr. Assets
Inventories
Sundry Debtors
Cash and Bank
Loans and Advances
Curr. Liability & Prov.
Sundry Creditors
Other Liabilities & prov.
Net Current Assets
Application of Funds
2015
3,965
3,19,353
3,23,317
984
3,24,301
29,446
16,109
13,337
77,100
5,619
2,48,642
6,919
17,523
1,84,431
39,768
20,397
2,263
18,134
2,28,245
3,24,301
2016
3,965
2,97,146
3,01,110
14,970
1,222
3,17,302
37,304
18,234
19,070
97,229
6,954
2,10,203
6,370
18,961
1,47,636
37,237
16,154
3,244
12,909
1,94,050
3,17,302
2017
3,164
2,22,026
2,25,189
6,112
2,31,301
39,724
20,196
19,528
1,18,314
7,270
1,11,909
5,400
10,435
52,893
43,181
25,719
1,988
23,731
86,190
2,31,301
2018
3,164
2,40,374
2,43,538
5,001
7,141
2,55,680
49,473
22,756
26,717
1,25,199
7,865
1,26,311
5,717
14,727
54,382
51,484
30,411
1,595
28,815
95,900
2,55,680
2019
3,062
2,56,453
2,59,515
3,642
7,684
2,70,841
52,752
25,545
27,207
1,37,925
9,393
1,23,295
6,662
14,245
46,077
56,311
26,979
2,027
24,952
96,316
2,70,841
2020
3,062
2,72,278
2,75,340
5,656
8,334
2,89,329
58,953
28,489
30,464
1,54,716
9,856
1,16,397
7,235
22,237
23,923
63,002
22,103
2,256
19,848
94,294
2,89,329
(INR Million)
2021E
3,062
2,82,192
2,85,254
5,656
8,334
2,99,243
63,953
31,465
32,488
1,69,716
9,856
1,08,634
4,578
11,446
29,608
63,002
21,450
1,602
19,848
87,184
2,99,243
2022E
3,062
2,98,629
3,01,691
5,656
8,334
3,15,680
68,953
34,691
34,261
1,89,716
9,856
1,04,394
5,398
13,494
22,501
63,002
22,547
2,699
19,848
81,848
3,15,680
16 June 2020
4
 Motilal Oswal Financial Services
NMDC
Financials and Valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x) CMP@84.3
P/E
Cash P/E
P/BV
EV/EBITDA
Dividend Yield (%)
Return Ratios (%)
EBITDA Margins
Net Profit Margins
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Debtor (Days)
Inventory (Days)
Creditors (Days)
Leverage Ratio (x)
Current Ratio
Debt/Equity
2015
17.5
17.9
81.5
8.6
42.2
4.8
4.7
1.0
1.8
10.1
65.9
56.2
22.3
22.2
92.6
4.2
0.4
52
20
7
12.2
-0.6
2016
8.9
9.4
75.9
11.0
172.4
9.5
8.9
1.1
5.8
13.0
54.2
54.7
11.3
11.0
37.4
1.7
0.2
50
20
20
13.0
-0.4
2017
10.0
10.6
71.2
5.2
74.9
8.5
8.0
1.2
4.8
6.1
50.9
35.7
13.5
11.5
44.0
2.2
0.4
43
22
8
4.4
-0.2
2018
13.1
13.9
77.0
5.3
62.9
6.4
6.1
1.1
3.4
6.3
54.4
35.7
17.7
17.1
63.4
2.3
0.5
46
18
5
4.2
-0.2
2019
15.6
16.5
84.8
5.5
45.9
5.4
5.1
1.0
3.0
6.5
58.8
39.3
19.3
18.3
60.8
2.3
0.4
43
20
6
4.6
-0.2
2020
15.3
16.3
89.9
5.5
54.1
5.5
5.2
0.9
3.9
6.5
53.2
39.8
17.4
15.5
44.7
2.0
0.4
69
23
7
5.3
-0.1
2021E
8.7
9.7
93.2
5.5
62.9
9.6
8.7
0.9
6.6
6.5
42.3
32.0
9.5
9.2
25.4
1.3
0.3
50
20
7
5.1
-0.1
2022E
10.9
11.9
98.5
5.5
50.6
7.8
7.1
0.9
5.4
6.5
45.0
33.8
11.3
10.9
33.5
1.4
0.3
50
20
10
4.6
-0.1
Cash Flow Statement
Y/E March
Pre-tax profit
Depreciation
(Inc)/Dec in Wkg. Cap.
Tax paid
Other operating activities
CF from Op. Activity
(Inc)/Dec in FA + CWIP
(Pur)/Sale of Investments
Others
CF from Inv. Activity
Equity raised/(repaid)
Debt raised/(repaid)
Dividend (incl. tax)
Other financing activities
CF from Fin. Activity
(Inc)/Dec in Cash
Add: opening Balance
Closing Balance
2015
1,02,946
1,622
-11,975
-30,314
-7,655
54,624
-24,331
-3,116
-27,447
2016
48,816
2,078
93
-17,373
-4,455
29,159
-20,242
-1,335
-21,576
14,970
-58,694
-44,379
-36,796
1,84,431
1,47,636
2017
43,137
1,962
13,117
-18,942
406
39,679
-23,505
-316
-23,821
-76,078
-14,970
-19,553
-1,10,601
-94,743
1,47,636
52,893
2018
60,155
2,560
-8,676
-23,432
3,205
33,812
-20,524
-2,523
6,294
-16,753
5,001
-23,923
3,721
-15,570
1,490
52,893
54,382
2019
71,987
2,789
-8,629
-26,024
346
40,469
-19,972
7,661
-3,504
-15,816
-10,067
-1,359
-21,321
190
-32,959
-8,305
54,382
46,077
2020
53,521
2,944
-21,434
-23,047
8,545
20,529
-23,990
17,155
-18,315
-25,151
2,014
-19,525
76.9
-17,531
-22,154
46,077
23,923
(INR Million)
2021E
35,768
2,976
12,795
-9,014
42,525
-20,000
2022E
44,489
3,226
-1,770
-11,211
34,733
-25,000
-20,000
-25,000
-29,318
-29,318
-2,141
1,86,572
1,84,431
-16,840
-16,840
5,685
23,923
29,608
-16,840
-16,840
-7,107
29,608
22,501
16 June 2020
5
 Motilal Oswal Financial Services
NMDC
NOTES
16 June 2020
6
 Motilal Oswal Financial Services
NMDC
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
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
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/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
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
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. 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 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
16 June 2020
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 Motilal Oswal Financial Services
NMDC
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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
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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