23 May 2020
4QFY20 Results Update | Sector: Cement
Birla Corporation
Estimate change
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
CMP: INR406
TP: INR695 (+71%)
Buy
Volumes disappoint but margin remains strong
BCORP IN
77
31.2 / 0.4
808 / 373
-2/-12/-9
67
Capacity addition to drive market share gains in FY22E
Birla Corp’s (BCORP) 4QFY20 results missed estimate due to 14% YoY volume
decline. EBITDA/t though was up 30% YoY (+22% QoQ), led by higher
realization (+5% YoY).
While FY21 would be adversely impacted due to COVID-19, the outlook for
FY22E remains positive as upcoming capacities should drive market share
gains. Our FY21/22E estimates are broadly unchanged and we maintain
Buy.
Financial Snapshot (INR bn)
Y/E MARCH
Sales
EBITDA
Adj. PAT
EBITDA Margin (%)
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)
EV/ton (USD)
Div. Yield (%)
2020 2021E 2022E
69.2
60.3
75.8
Miss on estimates due to lower volumes
13.4
11.3
14.7
Consol. volumes were down ~14.3% YoY to 3.3mt (v/s est. 3.52mt).
5.1
3.0
4.7
Cement realizations increased 5.7% YoY (+3.1% QoQ) to INR4,889/t.
19.3
18.7
19.5
Net sales declined 9.8% YoY at INR16.9b (v/s est. INR18.21b).
65.6
38.4
60.5
97.6 (41.5)
57.6
Total cost/t was down 2% QoQ (flat YoY) to INR4,077 (0.7% above est.
624.1 654.4 703.2
INR4,047) on account of lower fuel costs and BCORP’s sustained investments
0.7
10.9
8.7
13.3
6.2
0.7
4.3
53
1.8
0.9
6.0
6.1
21.2
10.6
0.6
5.9
61
1.7
0.8
8.9
7.6
19.2
6.7
0.6
4.4
48
2.5
to improve efficiency and cost rationalization.
Consol. EBITDA/t increased 22% QoQ (+30% YoY) to INR1,044 (8% below est.
INR1,132).
EBITDA was up 11% YoY/17% QoQ to INR3.44b (v/s est. INR3.98b).
PAT stood at INR1.95b (+52% YoY), 18% above est. 1.66 bn.
While tax was lower in the quarter, RCCPL Pvt. Ltd’s migration to the new tax
regime has contributed significantly to PAT growth.
FY20 revenue/ EBITDA/ PAT at INR69.2b/INR13.4b/INR5.1b was up 6%/41%/
98% YoY.
Utilization stood at 93% (-5pp YoY) in 4QFY20 and at 91% in FY20.
Share of premium products grew 8% in FY20 and accounted for 41% of trade
sales. Share of blended cement in total sales was up to 93% in FY20.
Gross debt stood at INR42.26b in FY20 (up from INR40.49b in FY19), while
Net Debt stood at INR35b.
Capex of INR2.5b for Kundanganj grinding unit has been put on hold.
Mukutban integrated plant of 3.9mt and Chanderia clinker expansion of
0.4mt are expected to be commissioned by Jun’21 and Mar’21, respectively.
BCORP plans to increase capacity by 25% over the next 15 months, which
should support volume growth beyond FY22E. BCORP’s 55% capacity is in
Central India (our preferred market), which should aid pricing and margin.
Valuation is attractive at 4.4x FY22E EV/EBITDA (30% discount to its 10-year
average) and USD48/t of capacity (significant discount to replacement cost).
We value BCORP at 6.5x FY22E EV/EBITDA to arrive at TP of INR695.
Maintain
Buy.
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Mar-20 Dec-19 Mar-19
62.9
62.9
62.9
15.3
15.5
16.0
4.2
3.9
2.1
17.6
17.8
19.0
Highlights from management commentary
FII Includes depository receipts
Valuation and view
Amit Murarka - Research analyst
(Amit.Murarka@motilaloswal.com) +91 22 7199 2309
Basant Joshi - Research analyst
(Basant.Joshi@motilaloswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
29 January 2020
1
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
Birla Corporation
Consolidated Performance
Y/E March
Net Sales
YoY Change (%)
Total Expenditure
EBITDA
Margins (%)
Depreciation
Interest
Other Income
Profit before Tax
EO Income/(Expense)
Profit before Tax after EO
Tax
Rate (%)
Reported PAT
Adj. PAT
YoY Change (%)
E: MOFSL Estimates
Key operating indicators
(Rs/ton)*
Blended Realization
YoY Change (%)
Raw Material
Staff Cost
Power & Fuel
Transport & Forwarding
Stores and Spares
Other Exp
Total Expenditure
EBITDA
1Q
4,704
5.7
619
253
1,055
1,259
328
490
4,004
700
2Q
4,774
2.5
553
297
1,203
1,160
380
576
4,169
605
3Q
4,865
6.1
897
286
1,041
1,167
406
422
4,218
647
4Q
4,864
0.2
695
257
1,070
1,249
338
451
4,060
804
1Q
5,175
10.0
689
277
1,049
1,221
388
495
4,119
1,057
2Q
5,084
6.5
555
328
1,102
1,197
378
549
4,109
975
3Q
5,000
2.8
872
305
919
1,152
370
523
4,141
859
4Q
5,121
5.3
581
296
1,003
1,219
352
625
4,077
1,044
FY19
4,798
3.7
690
272
1,088
1,211
360
482
4,103
695
FY20
5,085
6.0
676
300
1,015
1,195
372
545
4,103
982
1Q
16,545
13.4
14,081
2,464
14.9
857
952
232
887
0
887
49
5.5
838
838
50.5
FY19
FY20
2Q
3Q
4Q
1Q
2Q
3Q
4Q
14,646 15,569 18,728 18,838 16,269 17,151 16,900
18.5
12.1
13.4
13.9
11.1
10.2
-9.8
12,790 13,498 15,632 14,992 13,148 14,205 13,453
1,856 2,071 3,095 3,847 3,121
2,946 3,446
12.7
13.3
16.5
20.4
19.2
17.2
20.4
870
836
829
862
879
884
894
935
922
896
960 1,030
977
909
203
106
244
169
199
203
281
253
419 1,615 2,192 1,411
1,289 1,924
0
0
0
0
0
0
0
253
419 1,615 2,192 1,411
1,289 1,924
91
146
333
786
527
474
-24
35.7
34.7
20.6
35.9
37.4
36.8
-1.2
163
274 1,282 1,406
883
815 1,947
163
274 1,282 1,406
883
815 1,947
1,015.8 -225.3
-2.2
67.7 442.3
197.8
51.9
FY19
65,487
14.2
56,001
9,486
14.5
3,391
3,705
785
3,174
0
3,174
617
19.4
2,557
2,557
53.6
FY20
69,157
5.6
55,797
13,360
19.3
3,519
3,877
851
6,815
0
6,815
1,763
25.9
5,052
5,052
97.6
(INR Million)
FY20
4QE
18,213
-2.7
14,233
3,980
21.9
893
971
204
2,321
0
2,321
665
28.7
1,656
1,656
29.2
Var.
(%)
-7
-5
-13
-17
-17
18
18
(INR/t)
4Q Var (%)
5,179
6.5
636
309
1,013
1,169
383
537
4,047
1,132
-1
-9
-4
-1
4
-8
17
1
-8
Highlights of management commentary
Utilization
All grinding units (barring Raebareli and Durgapur) are currently running at 80-
100% capacity.
Capacity utilization stood at 93% (-5pp YoY) in 4QFY20.
Capacity utilization for FY20 was 91%, up from 89% in FY19.
Market mix
BCORP remains focused on premium and blended cement. Sales of its premium
slag brand, MP Birla Cement Unique (sold in the East), grew 18% YoY.
Among new launches, the super-premium Ultimate Ultra brand has been
received well in Madhya Pradesh, while Samrat Advanced gained significant
ground in the key markets of eastern Uttar Pradesh.
Sales of premium cement by volume grew 8% YoY and its share within the trade
segment rose from 37% in FY19 to 41% in FY20.
High-yielding blended cement accounted for 93% of volume in FY20 compared
to 89% in FY19, helped by BCORP’s focus on individual home-builders.
Looking to reduce borrowing cost
Gross debt stood at INR42.26b in FY20, up from INR40.49b in FY19 while Net
Debt stood at INR35b.
23 May 2020
2
 Motilal Oswal Financial Services
Birla Corporation
Board has approved buyback of secured Non-Convertible Debentures in order to
bring down borrowing cost, if such opportunity prevails in the market.
Upcoming capacity
Mukutban integrated capacity of 3.9mt should be commissioned by Jun’21.
Capex of INR2.5b for Kundanganj has been put on hold.
Chanderia production capacity would be augmented by 0.4mt and should be
completed by Mar’21 with a capex outlay of INR1.5b, out of which 0.7b has
been spent till Mar’20.
Key exhibits
Exhibit 1: Realization improves but volumes down 14% YoY
Realization (INR/ton)
3.3
2.2
2.1
2.5
3.3
2.7
3.0
3.4
3.5
Volume (m ton)
3.9
3.1
3.2
3.6
3.2
3.4
3.3
Source: Company, MOFSL
Exhibit 2: OPM expanded 3.2pp QoQ
EBITDA (INR m)
EBITDA Margins (%)
Exhibit 3: Trend in blended EBITDA/t (INR/ton)
Source: Company, MOFSL
Source: Company, MOFSL
4QFY19
4,864
695
257
1,070
1,249
789
4060
804
YoY (%)
5%
-16%
15%
-6%
-2%
24%
0%
30%
3QFY20
5,000
872
305
919
1,152
893
4141
859
QoQ (%)
2%
-33%
-3%
9%
6%
10%
-2%
22%
Exhibit 4: Blended per ton analysis (incl. Jute)
INR/Ton
Net realization
RM Cost
Employee Expenses
Power, Oil & Fuel
Freight and Handling Outward
Other Expenses
Total Expenses
EBITDA
4QFY20
5,121
581
296
1,003
1,219
978
4077
1,044
Source: MOFSL, Company
23 May 2020
3
 Motilal Oswal Financial Services
Birla Corporation
Valuation and view
BCORP would increase its capacity by 25% over the next 15 months. The
3.9mtpa green-field plant at Yavatmal (capex of INR24.5b implying EV/t of
USD85) is guided to come on stream by Jun’21. The clinker capacity expansion of
0.4mtpa at Chanderia (capex INR1.5b) is guided to come on stream by Mar’21.
The company also planned to expand its Kundanganj grinding unit by 1.2mt
(capex INR2.5b) but that has been put on hold this year to conserve cash and on
weak demand due to Covid-19. These capacities would support volume growth
for the company beyond FY22E.
BCORP has 55% of its capacity in central India (a preferred market for us) and
should aid pricing and margin for the company.
The company has increased share of premium products in the trade channel
from 37% last year to 41%. The share of blended cement has also increased
from 89% last year to 93% now. BCORP is engaging with a global consultancy
firm to streamline systems and processes for both inbound and outbound
logistics.
Valuation is attractive at 4.4x FY22E EV/EBITDA (30% discount to its 10-year
average and 60% discount to its peak) and USD48/t of capacity (significant
discount to replacement cost). We value BCORP at 6.5x FY22E EV/EBITDA to
arrive at a TP of INR695. Maintain
Buy.
23 May 2020
4
 Motilal Oswal Financial Services
Birla Corporation
Story in charts
Exhibit 5: Expansion to drive volume growth from FY22E
Capacity (m ton)
25
20
15
50%
10
5
0
2017
2018
2019
2020
2021E
2022E
25%
0%
2017
2018
2019
2020
2021E
2022E
619
652
695
Despatches (mton)
Utilization(%)
100%
75%
Exhibit 6: Consolidated EBITDA/t (INR/t)
Consolidated EBITDA/ton
982
964
1012
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 7: EBITDA to decline in FY21 due to COVID-19
EBITDA (INR bn)
EBITDA margin(%)
Exhibit 8: Return ratios to decline
14
11
RoE (%)
RoCE (%)
19.3
18.7
19.5
7
4
14.3
14.1
14.5
6.2
2017
8.1
2018
9.5
2019
13.4
2020
11.3
2021E
14.7
2022E
0
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21E FY22E
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 9: BCORP EV/EBITDA trend
EV/EBDITA(x)
16
12
Peak(x)
Avg(x)
Min(x)
Exhibit 10: BCORP EV/t trend
EV/ton (US$)
160
120
80
40
Max
Avg
Min
8
4
0
0
Source: MOFSL, Company
Source: MOFSL, Company
23 May 2020
5
 Motilal Oswal Financial Services
Birla Corporation
Financials and valuations
Income Statement (Consolidated)
Y/E March
Net Sales
Change (%)
Total Expenditure
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income - Rec.
PBT after EO
Change (%)
Tax
Tax Rate (%)
Reported PAT
Extra Ordinary Expenses
PAT Adj for EO Items
Change (%)
Margin (%)
2015
32,099
6.4
29,084
3,015
9.4
1,538
1,478
784
1,561
2,126
39.5
374
17.6
1,752
128
1,881
33.6
5.9
2016
32,682
1.8
29,823
2,859
8.7
1,485
1,374
823
1,772
2,009
-5.5
335
16.7
1,674
315
1,989
5.7
6.1
2017
43,477
33.0
37,241
6,235
14.3
2,555
3,680
2,768
1,459
2,303
14.6
108
4.7
2,195
68
2,263
13.8
5.2
2018
57,342
31.9
49,275
8,066
14.1
3,322
4,745
3,776
755
1,598
-30.6
59
3.7
1,540
124.8
1,664
-26.4
2.9
2019
65,487
14.2
56,001
9,486
14.5
3,391
6,095
3,705
785
3,174
98.6
617
19.4
2,557
0.0
2,557
53.6
3.9
2020
69,157
5.6
55,797
13,360
19.3
3,519
9,841
3,877
851
6,815
114.7
1,763
25.9
5,052
0.0
5,052
97.6
7.3
2021E
60,275
-12.8
49,005
11,270
18.7
3,667
7,603
4,256
759
4,105
-39.8
1,150
28.0
2,956
0.0
2,956
-41.5
4.9
(INR M)
2022E
75,769
25.7
61,027
14,741
19.5
4,368
10,373
4,780
877
6,469
57.6
1,811
28.0
4,658
0.0
4,658
57.6
6.1
Balance Sheet
Y/E March
Equity Share Capital
Reserves
Net Worth
Loans
Deferred Liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Investments
Curr. Assets
Inventory
Account Receivables
Cash and Bank Balance
Others
Curr. Liability & Prov.
Account Payables
Provisions
Net Current Assets
Appl. of Funds
E: MOSL Estimates
2015
770
25,471
26,241
12,426
2,429
41,097
31,295
12,342
18,953
1,500
13,179
16,281
5,521
881
4,668
5,211
8,816
7,767
1,049
7,465
41,097
2016
770
28,483
29,253
9,324
1,830
40,407
21,824
1,485
20,339
634
16,900
14,421
5,674
942
3,634
4,171
11,886
11,451
435
2,535
40,408
2017
770
32,092
32,862
40,705
5,645
79,212
67,689
4,042
63,647
8,034
5,644
19,653
6,302
1,325
3,125
8,901
17,766
17,215
551
1,887
79,212
2018
770
42,028
42,798
38,951
7,452
89,201
81,071
7,361
73,710
7,599
6,723
22,717
6,870
1,914
2,198
11,735
21,548
21,056
492
1,169
89,201
2019
770
44,182
44,952
36,484
7,422
88,859
83,415
10,752
72,662
9,119
8,769
22,765
7,830
2,622
1,390
10,924
24,457
23,919
538
-1,692
88,859
2020
770
47,291
48,061
37,526
8,568
94,155
87,544
14,271
73,273
16,020
8,363
24,098
7,876
2,504
2,558
11,160
27,599
26,930
669
-3,501
94,155
2021E
770
49,621
50,391
45,526
8,568
1,04,485
91,344
17,939
73,406
22,710
8,363
22,935
7,207
2,413
2,156
11,159
22,930
22,015
915
6
1,04,485
(INR M)
2022E
770
53,384
54,154
45,526
8,568
1,08,248
1,21,744
22,307
99,437
3,000
8,363
26,469
9,060
3,034
3,212
11,163
29,022
27,674
1,348
-2,553
1,08,248
23 May 2020
6
 Motilal Oswal Financial Services
Birla Corporation
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
EV/Ton - Cap (USD)
Dividend Yield (%)
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Inventory (Days)
Debtor (Days)
Wkg. Capital Turnover (Days)
Leverage Ratio
Current ratio
Debt/Equity (x)
Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
2015
24.4
44.4
340.8
9.0
46.0
2016
25.8
45.1
379.9
6.0
32.1
2017
29.4
62.6
426.7
6.5
26.5
2018
21.6
64.7
555.8
6.5
37.8
2019
33.2
77.2
583.7
7.5
26.2
2020
65.6
111.3
624.1
7.5
13.3
2021E
38.4
86.0
654.4
7.0
21.2
2022E
60.5
117.2
703.2
10.0
19.2
12.3
5.3
0.7
0.7
6.1
53
1.8
6.2
3.7
0.7
0.6
4.3
53
1.8
10.6
4.7
0.6
0.7
5.9
61
1.7
6.7
3.5
0.6
0.8
4.4
48
2.5
7.3
6.3
5.9
63
10
0.8
7.2
6.4
5.6
63
11
0.8
7.3
8.2
8.6
53
11
0.5
4.4
6.3
6.8
44
12
0.6
5.8
6.2
6.9
44
15
0.7
10.9
8.7
10.7
42
13
0.7
6.0
6.1
7.9
44
15
0.6
8.9
7.6
9.1
44
15
0.7
1.8
0.5
1.2
0.3
1.1
1.2
1.1
0.9
0.9
0.8
0.9
0.8
1.0
0.9
0.9
0.8
(INR M)
2022E
6,469
4,368
4,780
-1,811
3,616
17,423
0
17,423
-10,690
6,733
0
0
-10,690
0
0
-4,780
-895
0
-5,675
1,058
2,156
3,213
2015
2,127
1,538
912
-460
-92
4,025
-1,207
2,818
-2,136
682
929
696
-510
0
-1,260
-850
-462
-79
-2,651
-343
5,011
4,668
2016
2,010
1,488
823
-338
158
4,139
-1,652
2,487
-1,640
848
-566
704
-1,502
0
-616
-847
-462
-94
-2,019
-1,034
4,668
3,634
2017
2,303
2,555
2,768
-505
1,066
8,187
-1,414
6,773
-2,041
4,732
13,119
-21,163
-10,085
0
6,102
-2,744
-462
-94
2,803
-509
3,634
3,125
2018
1,598
3,322
3,776
-552
481
8,625
-577
8,049
-2,754
5,295
-541
-129
-3,423
0
-1,391
-3,558
-501
-102
-5,552
-926
3,125
2,198
2019
3,174
3,391
3,705
-469
1,309
11,111
-470
10,641
-4,030
6,611
-1,521
-550
-6,101
0
-1,297
-3,448
-501
-103
-5,349
-808
2,198
1,390
2020
6,815
3,519
3,877
-418
207
14,000
-588
13,412
-9,860
3,552
-446
74
-10,232
0
1,860
-3,872
0
0
-2,012
1,169
1,390
2,559
2021E
4,105
3,667
4,256
-1,150
-3,910
6,970
0
6,970
-10,490
-3,520
0
0
-10,490
0
8,000
-4,256
-626
0
3,117
-403
2,559
2,157
23 May 2020
7
 Motilal Oswal Financial Services
Birla Corporation
NOTES
23 May 2020
8
 Motilal Oswal Financial Services
Birla Corporation
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial
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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.
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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
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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
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A graph of daily closing prices of securities is available at
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Research Analyst views on Subject Company may vary based on Fundamental
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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
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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
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The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
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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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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
23 May 2020
9
 Motilal Oswal Financial Services
Birla Corporation
********************************************************************************************************************************
The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
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This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
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
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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
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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
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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,
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The person accessing this information specifically agrees to exempt MOFSL or any of its
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expenses that may be suffered by the person
accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263;
Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth
Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is
a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt.
Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL.
Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no
assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance
Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.
23 May 2020
10