GAIL India
BSE SENSEX
38,624
S&P CNX
11,303
4 March 2020
Update
| Sector:
Oil & Gas
CMP: INR103
TP: INR150 (+45%)
GAIL: reiterated subsiding US contract risks
Buy
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 (%)
Financial Snapshot (INR b)
Y/E March
2020E 2021E
Sales
739.2 860.2
EBITDA
78.1
95.6
Adj. PAT
46.7
56.7
Adj. EPS (INR)
10.4
12.6
EPS Gr. (%)
-26.1
21.4
BV/Sh.(INR)
100.8 109.0
Ratios
Net D:E
0.1
0.1
RoE (%)
10.5
12.1
RoCE (%)
8.9
10.1
Payout (%)
81.4
35.0
Valuations
P/E (x)
9.9
8.2
P/BV (x)
1.0
0.9
EV/EBITDA (x)
3.1
2.8
Div. Yield (%)
6.8
3.5
FCF Yield (%)
1.3
4.6
Shareholding pattern (%)
As On
Dec-19 Sep-19
Promoter
51.8
52.2
DII
25.3
24.2
FII
18.4
19.6
Others
4.6
4.1
FII Includes depository receipts
Stock Performance (1-year)
GAIL (India)
Sensex - Rebased
240
200
160
120
80
The company organized a visit to its Horizontal Directional Drilling (HDD) Site at
Damodar river, Durgapur along with interaction with the senior management.
Please find main highlights of the same:
GAIL IN
4,510
465.7 / 6.1
183 / 98
-9/-27/-47
1470
48.2
2022E
927.9
110.1
65.2
14.5
15.0
118.4
0.1
12.9
10.8
35.0
7.1
0.9
2.9
4.1
5.9
Dec-18
53.1
21.7
21.4
3.8
Phase-I of JHBDPL already commissioned; rest on track
Phase-1 of 753km from Phulpur to Dobhi, connecting Gorakhour, Patna and
Barauni has already been commissioned along with the six Geographical
Areas (GAs) on this length.
Phase-II of 901km connecting Dobhi to Durgapur and Dhamra to Angul is
expected to be completed by Dec’20. Phase-III of 1,001km from Bokaro-
Angul and Durgapur-Kolkata is also expected to be completed by Dec’20.
Barauni-Guwahati pipeline of 716km is expected to be completed by
Dec’21.
Matix was already commissioned but had to stop as it did not receive the
minimum quantity of natural gas sufficient to keep the operations running.
GAIL is in the process of completing the ~1.5km HDD stretch across
Damodar river, post which, Matix would be able to receive gas from GAIL.
GAIL has already executed a firm contract for 1.5mmscmd with Matix. It is
expected to take additional 1mmscmd. Matix may also double its capacity
going forward, thereby increasing the demand of gas.
Consumers on Phase-II/III may face as much as USD2-3/mmBtu of
transmission tariff. This would be substantial compared with the domestic
APM price of USD3.6/mmBtu as well as spot LNG prices of ~USD3/mmBtu.
Such high transmission cost may force a radical change in tariff
determination bringing back the focus on unified tariffs.
The company guides that a wholly owned subsidiary may be created for
transmission in order to separate transmission and trading segments.
As we have highlighted in earlier reports, we expect GAIL to be a key
beneficiary of the National Green Tribunal’s focus on reducing industrial
pollution.
The main concern on the stock is low spot LNG prices which may result in
losses in the US LNG contracts. However, with start of new fertilizer plants
on JHBDPL, the company expects all US contracts to be sold in India
profitably.
GAIL is trading at 8.2x FY21 EPS of INR12.6 and 2.8x FY21 EV/EBITDA. It
trades at ~40% discount to long term one-year forward PE. We value it at 8x
adjusted FY22 EPS and add the value of investments to arrive at a target
price of INR150. Reiterate
Buy.
Matix to take ~2.5mmscmd of gas
Expect radical changes before commissioning of Phase-II/III
Valuation and recommendation
Swarnendu Bhushan- Research Analyst
(Swarnendu.Bhushan@MotilalOswal.com); +91 22 6129 1529
Sarfraz Bhimani - Research Analyst
(Sarfraz.Bhimani@MotilalOswal.com); +91 22 6129 1566
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
GAIL India
Exhibit 1: Jagdishpur-Haldia and Barauni-Guwahati pipelines
Source: Company, MOFSL
Exhibit 2: Timelines for Urja Ganga pipeline
Source: Company, MOFSL
4 March 2020
2
 Motilal Oswal Financial Services
GAIL India
Exhibit 3: Actual capex & capital commitment in Major projects (INR cr.)
Source: Company, MOFSL
Exhibit 4: Major assumptions
Brent crude (USD/bbl)
Exchange Rate (INR/USD)
Subsidy (INRb)
Natural Gas Transmission
Total (mmscmd)
Adj. Average Tariff (INR/mscm)
Trading Volume
EBITDA (INR/mscm)
LPG Transmission
Volume ('000 MT)
Average Tariff (INR/MT)
Petrochemicals
Sales ('000 MT)
Realization (USD/MT)
LPG & liq. HC
Sales ('000 MT)
LPG realization (USD/MT)
EPS (INR/sh)
FY15
86.0
61.1
10.0
93
997
72
260
3,094
1,424
441
1,801
1,279
784
6.6
FY16
47.5
65.5
-
93
1,181
74
546
2,819
1,724
334
1,420
1,087
468
4.9
FY17
49.0
67.1
-
100
1,257
81
513
3,363
1,530
578
1,468
1,095
435
8.5
FY18
55.6
64.6
-
105
1,295
85
405
3,721
1,532
673
1,362
1,275
526
10.1
FY19
70.1
69.9
-
107
1,473
97
808
3,975
1,570
735
1,313
1,325
549
14.0
FY20E
64.6
70.5
-
109
1,503
96
623
4,015
1,633
800
1,139
1,325
430
10.4
FY21E
65.0
71.3
FY22E
65.0
72.3
124
1,505
113
720
4,215
1,633
800
1,209
135
1,509
124
748
4,426
1,633
800
1,245
1,400
1,400
450
468
12.6
14.5
Source: Company, MOFSL
Exhibit 5: Valuation table
Valuation
Core Business
Listed Investments
Unlisted investments
Total
Rs/sh Basis
109
35
6
150
Source: Company, MOFSL
8.0x FY22E adj. EPS
20% discount to CMP/target price
20% discount to book value
4 March 2020
3
 Motilal Oswal Financial Services
GAIL India
Financials and Valuations
Income Statement
Y/E March
Net Sales
Change (%)
EBITDA
% of Net Sales
Depreciation
Interest
Other Income
EO Items (net)
PBT
Tax
Rate (%)
Reported PAT
Adjusted PAT
Change (%)
2015
5,67,420
-0.9
46,962
8.3
9,743
3,613
8,609
629
42,844
12,452
29.1
30,392
29,947
-30.5
2016
5,16,143
-9.0
38,960
7.5
13,131
6,400
11,576
31,005
8,739
28.2
22,266
22,266
-26.7
2017
4,80,743
-6.9
63,152
13.1
13,968
4,794
12,705
-2,987
54,108
19,079
35.3
35,029
38,167
57.3
2018
5,36,612
11.6
76,339
14.2
14,151
2,751
9,870
277
69,584
23,400
33.6
46,183
45,699
31.8
2019
7,51,268
40.0
95,287
12.7
15,502
1,385
15,712
-3,263
90,848
30,592
33.7
60,257
63,264
30.5
2020E
7,39,187
-1.6
78,063
10.6
18,351
1,529
12,569
70,752
24,024
34.0
46,728
46,728
-22.5
(INR m)
2021E
8,60,188
16.4
95,557
11.1
18,586
2,375
11,312
85,908
29,170
34.0
56,738
56,738
21.4
(INR m)
2022E
9,27,920
7.9
1,10,066
11.9
18,826
2,625
10,181
98,796
33,546
34.0
65,250
65,250
15.0
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Loans
Deferred Tax
Capital Employed
Gross Fixed Assets
Less: Depreciation
Net Fixed Assets
Capital WIP
Investments
Current Assets
Inventory
Debtors
Cash & Bank Balance
Loans/Adv. & Other Assets
Current Liab. & Prov.
Liabilities
Provisions
Net Current Assets
Misc. Expenses
Application of Funds
E: MOSL Estimates
2015
12,685
2,78,510
2,91,195
80,483
33,087
4,04,765
4,13,893
2,15,047
1,98,845
1,22,352
43,224
20,811
30,945
11,416
1,01,339
1,07,610
16,558
40,344
4,04,765
2016
12,685
3,38,261
3,50,946
68,457
40,714
4,60,116
4,33,777
1,49,107
2,84,670
34,202
85,847
16,094
38,095
17,939
81,127
86,355
11,503
55,397
4,60,116
2017
16,913
3,64,581
3,81,494
38,186
46,559
4,66,239
4,52,646
1,67,584
2,85,062
38,034
95,096
16,984
38,282
13,419
75,823
81,327
15,133
48,047
4,66,239
2018
22,551
3,80,731
4,03,281
17,517
46,309
4,67,108
4,69,633
1,81,736
2,87,898
55,140
99,531
19,195
40,515
25,294
99,558
1,45,740
14,283
24,539
4,67,108
2019
22,551
4,18,379
4,40,929
16,157
59,477
5,16,564
5,08,099
1,97,238
3,10,861
92,025
95,282
23,219
50,743
12,147
59,510
1,12,969
14,253
18,397
5,16,564
2020E
22,551
4,27,055
4,49,605
45,000
59,477
5,54,083
5,48,476
2,15,589
3,32,887
1,12,077
95,282
26,327
58,730
9,084
59,510
1,25,561
14,253
13,837
5,54,083
(INR m)
2021E
22,551
4,63,961
4,86,511
50,000
59,477
5,95,989
6,09,066
2,34,175
3,74,891
1,12,077
95,282
30,637
68,344
15,616
59,510
1,46,114
14,253
13,739
5,95,989
(INR m)
2021E
22,551
5,06,404
5,28,954
55,000
59,477
6,43,431
6,69,427
2,53,001
4,16,426
1,12,077
95,282
33,049
73,725
25,235
59,510
1,57,619
14,253
19,646
6,43,431
4 March 2020
4
 Motilal Oswal Financial Services
GAIL India
Financials and Valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout (incl. dvd tax)
Valuation (x)
P/E
Adj. P/E (for investments)
Cash P/E
EV / EBITDA
EV / Sales
Price / Book Value
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
RoIC
Turnover Ratios
Debtors (No. of Days)
Fixed Asset Turnover (x)
Leverage Ratio
Net Debt / Equity (x)
2015
6.6
8.9
64.6
1.7
30.1
15.5
9.4
11.6
4.5
0.4
1.6
1.7
10.8
8.2
11.6
20
1.4
0.24
2016
4.9
7.8
77.8
1.5
37.7
20.9
12.6
13.1
4.4
0.4
1.3
1.5
6.9
6.2
6.7
27
1.1
0.14
2017
8.5
10.9
84.6
3.2
50.1
12.2
7.4
9.5
3.2
0.5
1.2
3.1
9.6
8.7
9.9
29
1.0
0.06
2018
10.1
13.4
90.2
3.9
45.5
10.2
6.2
7.7
3.3
0.5
1.1
3.8
11.8
10.2
13.6
28
1.1
-0.02
2019
14.0
16.8
98.9
3.8
34.7
7.3
4.4
6.1
2.1
0.3
1.0
3.7
14.3
12.9
17.5
25
1.5
0.01
2020E
10.4
14.4
100.8
7.0
81.4
9.9
6.0
7.1
3.1
0.4
1.0
6.8
10.5
8.9
12.0
29
1.3
0.1
2021E
12.6
16.7
109.0
3.6
35.0
8.2
5.0
6.2
2.8
0.4
0.9
3.5
12.1
10.1
14.3
29
1.4
0.1
2022E
14.5
18.6
118.4
4.2
35.0
7.1
4.3
5.5
2.9
0.4
0.9
4.1
12.9
10.8
15.4
29
1.4
0.1
Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Misc
Tax paid
Change in deferred tax liability
(Inc)/Dec in Wkg. Capital
CF from Op. Activity
(Inc)/Dec in FA & CWIP
Free Cash Flow
(Pur)/Sale of Investments
CF from Inv. Activity
Issue of Shares
Others
Inc / (Dec) in Debt
Dividends Paid
CF from Fin. Activity
Inc / ( Dec) in Cash
Add: Opening Balance
Closing Balance
E: MOSL Estimates
2015
42,844
9,743
0
-12,452
7,423
-16,864
30,693
-18,895
11,798
-2,194
-21,089
0
-771
-14,778
-9,148
-24,698
-15,093
26,510
11,416
2016
31,005
13,131
0
-8,739
7,627
-8,531
34,493
-10,805
23,688
-42,624
-53,429
0
45,883
-12,026
-8,399
25,458
6,522
11,416
17,939
2017
54,108
13,968
0
-19,079
5,845
2,830
57,672
-18,192
39,480
-9,249
-27,441
0
13,055
-30,270
-17,535
-34,751
-4,520
17,939
13,419
2018
69,584
14,151
0
-23,400
-250
35,383
95,468
-34,094
61,375
-4,434
-38,528
0
-3,361
-20,669
-21,035
-45,065
11,875
13,419
25,294
2019
90,848
15,502
0
-30,592
13,168
-7,004
81,922
-75,350
6,573
4,249
-71,101
0
-1,707
-1,360
-20,901
-23,968
-13,147
25,294
12,147
2020E
70,752
18,351
0
-24,024
0
1,497
66,576
-60,430
6,146
0
-60,430
0
0
28,843
-38,052
-9,209
-3,063
12,147
9,084
2021E
85,908
18,586
0
-29,170
0
6,630
81,954
-60,590
21,364
0
-60,590
0
0
5,000
-19,832
-14,832
6,533
9,084
15,616
(INR m)
2022E
98,796
18,826
0
-33,546
0
3,711
87,787
-60,361
27,426
0
-60,361
0
0
5,000
-22,807
-17,807
9,619
15,616
25,235
4 March 2020
5
 Motilal Oswal Financial Services
GAIL India
NOTES
4 March 2020
6
 Motilal Oswal Financial Services
GAIL India
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
< - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within following 30
days take appropriate measures to make the recommendation consistent with the investment rating legend.
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
********************************************************************************************************************************
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
4 March 2020
7
 Motilal Oswal Financial Services
GAIL India
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.
-
4 March 2020
8