Cummins India
BSE SENSEX
36,443
S&P CNX
10,987
5 March 2019
Update
| Sector:
Capital Goods
CMP: INR 719
TP: INR950 (+32%)
Buy
Focus on developing new growth areas, market share
Price hikes taken to counter rising raw material prices
We recently met the management of Cummins India Limited. Key highlights from
our meeting are as below:
KKC IN
277
199.2 / 2.8
885 / 612
-10/1/-18
416
49.0
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
Price hike of ~5% across multiple nodes:
Starting Nov’18, Cummins India
introduced price hikes of ~3-5% across nodes to mitigate the cost pressure due to
rising raw material prices. The company expects gross margins to expand by 100bp
if the price hike is absorbed by the system. Key point to note — Cummins India has
not hiked prices for the last four years.
Focus on market share and developing new areas for incremental domestic
growth:
While it is the market leader in HHP (~60% share) and MHP segment
(~50% share), Cummins is focusing on gaining greater market share in few selective
nodes in the 750kv and above segment —a key focus area for the company. It has
also developed new growth areas in the domestic market; a segment like Railways
now contributes INR2.5b to sales. The focus is now to increase its marine market
revenue from current INR250m to INR2.5b in a few years. Cummins also expects
manufacturing to start contributing to revenue.
FY20 revenue guidance of 10-12% for Domestic and 0-5% for Exports:
In its
guidance for FY20, Cummins India expects 10-12% growth in the Domestic market
backed by strong growth across infrastructure segments like Data Centers,
Hospitality and Metro. It is also seeing a demand pick-up in the manufacturing
segment. However, on the Exports front, it expects growth to remain flattish;
hence a weak guidance of 0-5%. Demand for Powergen segment products (major
part of its exports business) has witnessed a decline. Even key markets like the
Middle East (slowdown in investment) and Africa (payment concerns), which
contributes 50% to LHP exports have not picked up. Cummins expects its
distribution business to register steady growth of 8-10% growth YoY.
To launch a refreshed product range after new emission norms are implemented
in FY22:
Post implementation of CPCB4 norms, Cummins India will introduce a
refreshed range of products. If norms are implemented in entirety, it expects the
Indian market’s transition to electrical engines from mechanical engines. This
should help Cummins to improve realization and market share given its
preparedness to meet the new norms.
Capex plans mostly complete:
Currently, Cummins intends to do capex of INR1.8b
in HHP and CPCB4 related product development; post this it does not have any
major capex plans, barring the operational capex incurred on a yearly basis. This
would ensure healthy free cash flow generation for the company. Cummins has
very strong track record of distributing free cash to shareholders; it distributed
~70% of its profits as dividend to shareholders.
Financials Snapshot (INR b)
Y/E March
2019E 2020E 2021E
Net Sales
56.4
63.0
70.0
EBITDA
8.8
10.1
11.6
Adj PAT
7.5
8.5
9.6
EPS (INR)
26.9
30.7
34.8
EPS Gr. (%)
14.4
13.9
13.4
BV/Sh. (INR)
155.2 168.1 182.7
P/E (x)
26.7
23.4
20.7
P/BV (x)
4.6
4.3
3.9
RoE (%)
18.0
19.0
19.8
RoCE (%)
17.2
18.2
19.1
Shareholding pattern (%)
As On
Dec-18 Sep-18 Dec-17
Promoter
51.0
51.0
51.0
DII
24.9
24.0
21.0
FII
11.4
12.4
15.3
Others
12.7
12.7
12.7
FII Includes depository receipts
Stock Performance (1-year)
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.
Ankur Sharma – Research Analyst
(Ankur.VSharma@MotilalOswal.com); +91 22 6129 1556
Amit Shah – Research Analyst
(Amit.Shah@MotilalOswal.com); +91 22 6129 1543
 Motilal Oswal Financial Services
Cummins India
Valuation and view:
We are positive with a long-term view on the stock given its
market leadership in the HHP and MHP segment, strong after-sales service &
distribution, and its preparedness to take advantage of the upcoming CPCB4
emission norm change. Exports is still a bleak spot in the near term given the decline
in demand for HP engines from its parent. But, we are upbeat on the long-term
prospects of Exports as we expect capex cycle recovery in the key markets of Europe
and Africa, post firming up of oil and base metal prices. We maintain a Buy rating on
the stock with target price of INR950 (28x Dec’20 EPS of INR34).
Story in charts
Exhibit 1: Cummins — leader in the domestic market with
healthy 37% share
Exhibit 2: Powergen to stay as dominant revenue
contributor on healthy growth in Data Center segment (%)
Power Generation
Distribution
17%
6%
16%
24%
37%
Cummins
KOEL
Mahindra
Perkins
Others
Industrial
Exports
Automotive
28.9 28.1 31.1 40.1 36.7 32.9 32.2 30.1 29.3 28.0
19.0 20.1 23.5
23.7 25.0 25.0 24.6 24.3
7.0 3.7 3.0 21.0 22.0
1.5 1.7
14.0 11.2 13.6 2.6 12.3 14.2 15.3 15.3 17.1 17.7
11.8
31.0 35.6 28.8 24.5 27.5 27.5 27.5 28.2 29.0 29.9
Source: MOSL, Company
Source: MOSL, Company
Exhibit 3: Domestic sales to see healthy 13% growth over
FY19-21E
Domestic sales
YoY % growth
Exhibit 4: Exports to see 7% CAGR over FY19-21E given weak
demand in end market
Exports
YoY % growth
Source: MOSL, Company
Source: MOSL, Company
Exhibit 5: Gross profit margin expected to improve post
recent price hikes taken by Cummins
Gross profit (INR m)
39.0%
38.2%
37.1%
37.1%
Gross margin (%)
37.2%
36.5% 36.7%
Exhibit 6: PAT margin to improve on better cost control
measures
Adjusted PAT (INR m)
18.2%
14.7% 15.4%
16.4%
14.8%
Pat margin (%)
13.2% 13.6% 13.8% 14.1%
35.5% 35.9%
Source: MOSL, Company
Source: MOSL, Company
5 March 2019
2
 Motilal Oswal Financial Services
Cummins India
Financials & Valuation
Income Statement
Y/E March
Total Revenues
Change (%)
Raw Materials
Staff Cost
Other Expenses
EBITDA
% of Total Revenues
Depreciation
Other Income
Interest
PBT
Tax
Rate (%)
Adjusted PAT
Extra-ordinary Income (net)
Reported PAT
Change (%)
2015
44,058
10.8
27,225
3,936
5,547
7,351
16.7
797
2,866
45
9,374
1,515
16.2
7,859
0
7,859
31.0
2016
47,088
6.9
29,622
4,156
5,559
7,751
16.5
810
2,259
96
9,104
1,561
17.1
7,543
0
7,543
-4.0
2017
50,773
7.8
32,745
4,334
5,677
8,018
15.8
848
2,080
168
9,082
1,736
19.1
7,346
0
7,346
-2.6
2018
50,825
0.1
32,581
4,979
5,940
7,325
14.4
938
2,285
148
8,523
2,000
23.5
6,524
561
7,085
-3.6
2019E
56,427
11.0
35,806
5,331
6,518
8,773
15.5
1,111
3,000
148
10,514
3,049
29.0
7,465
3
7,468
5.4
2020E
63,024
11.7
39,865
5,967
7,129
10,062
16.0
1,229
3,121
148
11,806
3,306
28.0
8,500
0
8,500
13.8
(INR m)
2021E
70,021
11.1
43,941
6,653
7,801
11,626
16.6
1,339
3,249
148
13,388
3,749
28.0
9,639
0
9,639
13.4
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Loans
Deferred Tax Liability
Capital Employed
Gross Fixed Assets
Less: Depreciation
Net Fixed Assets
Capital WIP
Investments
Curr. Assets
Inventory
Debtors
Cash & Bank Balance
Loans & Advances
Other Assets
Current Liab. & Prov.
Current Liabilities
Provisions
Net Current Assets
Application of Funds
2015
554
28,311
28,865
0
631
29,496
18,830
6,491
12,340
1,706
4,650
24,521
6,823
9,355
799
7,472
73
13,721
8,520
5,202
10,800
29,496
2016
554
34,259
34,813
0
128
34,941
19,917
7,023
12,894
5,192
3,336
23,483
6,003
9,381
897
1,287
5,915
9,964
8,843
1,121
13,519
34,941
2017
554
36,867
37,422
2,508
24
39,953
22,705
7,703
15,001
4,631
7,074
23,702
5,621
9,557
1,291
1,287
5,948
10,455
9,036
1,419
13,247
39,953
2018
554
39,306
39,861
2,515
299
42,675
28,665
8,445
20,193
380
5,487
29,253
5,375
13,263
4,709
1,287
4,621
12,637
11,114
1,523
16,616
42,675
2019E
554
42,455
43,009
2,515
324
45,848
32,165
9,556
22,609
380
5,487
31,011
5,801
9,805
9,031
1,389
4,987
13,639
11,995
1,644
17,373
45,848
2020E
554
46,038
46,593
2,515
324
49,432
35,165
10,785
24,380
380
5,487
34,448
6,491
10,972
9,851
1,554
5,580
15,262
13,422
1,840
19,186
49,432
(INR m)
2021E
554
50,102
50,657
2,515
324
53,496
38,165
12,124
26,041
380
5,487
38,572
7,223
12,210
11,200
1,729
6,210
16,984
14,936
2,047
21,588
53,496
5 March 2019
3
 Motilal Oswal Financial Services
Cummins India
Financials & Valuation
Ratios
Y/E March
Basic (INR)
Adj EPS
Cash EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation (x)
P/E
Cash P/E
EV/EBITDA
EV/Sales
Price/Book Value
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
RoIC
Turnover Ratios
Debtors (Days)
Inventory (Days)
Creditors. (Days)
Asset Turnover (x)
Leverage Ratio
Debt/Equity (x)
2015
28.3
31.2
104.1
14.0
49.4
2016
27.2
30.1
125.6
14.0
51.5
2017
26.5
29.6
135.0
14.0
52.8
2018
23.5
26.9
143.8
15.0
58.7
2019E
26.9
30.9
155.2
13.4
49.7
2020E
30.7
35.1
168.1
15.2
49.7
2021E
34.8
39.6
182.7
17.3
49.7
25.4
23.0
27.0
4.6
6.9
1.9
26.4
23.9
25.6
4.3
5.7
1.9
27.1
24.3
25.0
4.0
5.3
1.9
30.6
26.7
26.9
4.0
5.0
2.1
26.7
23.2
22.0
3.5
4.6
1.9
23.4
20.5
19.1
3.1
4.3
2.1
20.7
18.2
16.4
2.8
3.9
2.4
28.8
29.0
26.4
78
57
51
1.5
23.7
23.9
24.0
73
47
43
1.3
21.2
20.0
22.1
69
40
44
1.3
18.3
16.1
16.6
95
39
54
1.2
18.0
17.2
17.3
65
39
54
1.2
19.0
18.2
19.7
65
39
54
1.3
19.8
19.1
21.1
65
39
54
1.3
0.0
0.0
0.1
0.1
0.1
0.1
0.0
Cash Flow Statement
Y/E March
PBT before EO Items
Depreciation
Interest
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
EO Income
CF from Oper. Incl. EO Items
(Inc)/Dec in FA
Free Cash Flow
Investment & Others
CF from Investments
(Inc)/Dec in Networth
(Inc)/Dec in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Add: Beginning Balance
Closing Balance
2015
9,374
797
-172
-1,853
(815)
7,331
-1,993
5,338
(3,304)
2,035
2,458
-846
0
0
-45
-4,216
(4,261)
231
568
799
2016
9,104
810
96
-1,561
(2,716)
5,732
0
5,732
(5,500)
232
1,461
-4,039
2,922
0
0
-4,518
0
(1,595)
98
799
897
2017
9,082
848
-9
-1,867
371
8,426
-983
7,443
(2,315)
5,128
(2,538)
-4,853
0
0
-90
-4,663
2,508
(2,245)
344
897
1,241
2018
9,084
938
-35
-1,823
(370)
7,795
-903
6,892
(905)
5,987
2,763
1,858
0
0
-100
-4,639
8
(4,731)
4,019
1,239
5,258
2019E
10,514
1,111
148
-3,049
3,417
12,141
0
12,141
(3,500)
8,641
0
-3,500
0
0
0
-4,319
0
(4,319)
4,322
4,709
9,031
2020E
11,806
1,229
148
-3,306
(1,141)
8,737
0
8,737
(3,000)
5,737
0
-3,000
0
0
0
-4,916
0
(4,916)
821
9,031
9,851
(INR m)
2020E
13,388
1,339
148
-3,749
(1,202)
9,925
0
9,925
(3,000)
6,925
0
-3,000
0
0
0
-5,576
0
(5,576)
1,349
9,851
11,200
5 March 2019
4
 Motilal Oswal Financial Services
Cummins India
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 Securities Ltd. (MOSL)* is a SEBI Registered Research Analyst having registration no. INH000000412. MOSL, 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. MOSL is a
subsidiary company of Motilal Oswal Financial Service Ltd. (MOFSL). MOFSL is a listed public company, the details in respect of which are available on
www.motilaloswal.com.
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 (MCX) & National Commodity & Derivatives Exchange Ltd. (NCDEX) for its stock broking activities & is Depository
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http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOSL 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 MOSL even though
there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOSL 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 MOSL 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 Securities 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 MOSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from
MOSL 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 MOSL & its group companies to registration or licensing requirements within such jurisdictions.
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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 Securities Limited (MOSL) 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 MOSL 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 MOSL , 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., MOSL 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
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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 MOSL, 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 MOSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOSL, 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 MOSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOSL has not received any compensation or other benefits from third party in connection with the research report
10 MOSL has not engaged in market making activity for the subject company
****************************************************************
****************************************************************
5 March 2019
5
 Motilal Oswal Financial Services
Cummins India
The associates of MOSL 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 MOSL 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 MOSL 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 MOSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOSL 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 MOSL 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
MOSL. 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. MOSL 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. MOSL, 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 MOSL. 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 MOSL
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 MOSL or any of its affiliates or employees from, any and all
responsibility/liability arising from such misuse and agrees not to hold MOSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOSL 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.: 022-3980 4263; www.motilaloswal.com.
Correspondence Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 3080 1000. Compliance Officer:
Neeraj Agarwal, Email Id:
na@motilaloswal.com,
Contact No.:022-38281085.
Registration details: MOSL: SEBI Registration: INZ000158836 (BSE/NSE/MCX/NCDEX); CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412.
AMFI: ARN 17397. Investment Adviser: INA000007100. Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670) offers PMS and Mutual
Funds products. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) offers wealth management solutions. *Motilal Oswal Securities Ltd. is
a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs, Insurance and IPO products. *Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. offers Real Estate
products. * Motilal Oswal Private Equity Investment Advisors Pvt. Ltd. offers Private Equity products.
* 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. The existing registration no(s) of MOSL would be used until receipt of new MOFSL registration numbers.
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