11 November 2020

2QFY21 Results Update | Sector: Oil & Gas

Indraprastha Gas
Estimate change CMP: INR449 TP: INR485 (+8%) Neutral
TP change
Rating change Volumes in-line; recovery to pre-COVID levels by end-3Q
 IGL reported a beat on EBITDA on the back of lower other expenditure. CNG
Bloomberg IGL IN volumes were in line with est. (-21% YoY). Total volumes were marginally
Equity Shares (m) 700 higher (5%) than est., primarily led by domestic volumes.
M.Cap.(INRb)/(USDb) 314 / 4  As most of the restrictions of the COVID-19 lockdowns are being relaxed, we
52-Week Range (INR) 534 / 285 believe the company would now be able to recover CNG volumes to pre-
1, 6, 12 Rel. Per (%) 10/-48/-3 COVID levels in 3QFY21 (v/s our earlier est. of recovery in 4QFY21).
12M Avg Val (INR M) 1525  Volumes would further be aided by increasing demand for personal mobility
in the festive season and various commercial segments (restaurants and
Financials & Valuations (INR b) malls) ramping up their operating capacities.
Y/E March 2020 2021E 2022E
 Thus, we revise our est. for 3Q–4QFY21 upward to 6.7–6.8mmscmd (pre-
Sales 64.9 51.3 68.6
COVID 3QFY20 levels) from ~6mmscmd estimated earlier.
EBITDA 15.2 13.1 17.1
Adj. PAT 11.4 9.0 11.9  We reiterate our belief in the company’s volume trajectory, led by growth in
Adj. EPS (INR) 16.2 12.9 17.0 NCR, higher conversion to CNG due to the BS-VI implementation, inter-city
EPS Gr. (%) 44.5 -20.8 32.4 CNG travel and contribution from newer GAs. We build-in volume growth of
BV/Sh.(INR) 72.3 82.8 96.4 14%/12% (over FY20/FY22 levels) to 7.4/8.2mmscmd for FY22/23E.
Ratios  On the margin front, we have built-in EBITDA/scm of INR6.4 in FY22 (same
Net D:E -0.4 -0.3 -0.3 as FY20), and INR6/scm in FY23 as APM prices would revive from the trough.
RoE (%) 28.3 16.6 19.0
IGL may soon finalize the revised CNG commission structure for OMCs.
RoCE (%) 27.1 16.1 18.5
 We value the company at 24x Sep’22E adj. EPS of INR17.1 and add value
Payout (%) 17.2 15.5 17.6
Valuation from JV to arrive at Target Price of INR485.
P/E (x) 27.6 34.8 26.3  Even if we assume EBITDA/scm of INR6.4 in FY23, EPS would jump by 9% and
P/BV (x) 6.2 5.4 4.6 TP would reach INR500, implying minimum upside. Regulatory headwinds in
EV/EBITDA (x) 19.2 22.5 17.0 terms of open access remain. Maintain Neutral.
Div. Yield (%) 0.6 0.4 0.7
EBITDA beat on lower other expenditure
FCF Yield (%) 2.5 -0.7 2.1
 Total volumes were 5% higher than est. at 5.5mmscmd (-16% YoY).
Shareholding pattern (%)  CNG volumes were in line with est. at 3.9mmscmd (-21% YoY).
As On Sep-20 Jun-20 Sep-19  On the other hand, PNG volumes were higher than est. at 1.6mmscmd (-
Promoter 45.0 45.0 45.0 4% YoY), with domestic volumes up 21% YoY.
DII 22.4 22.2 20.9  EBITDA/scm was at INR8 (the highest ever) due to lower other expenditure.
FII 21.3 22.3 23.8  Gross margins were lower than our est. at INR13.7/scm (v/s our est. of
Others 11.3 10.5 10.3
INR15.2; flat QoQ). Opex was lower at INR5.7/scm (v/s our est. of
FII Includes depository receipts
INR9.3; INR5.1 in 2QFY20 and INR10.4 in 1QFY21).
 Margins were lower despite IGL taking CNG price hike of INR2.5/kg in
2Q to cover the impact of COVID-19 on its operations.
 EBITDA came in at INR4.1b (+41% est.; +4% YoY), with PAT at INR3.1b (-19%
YoY) – tax rate at 22.9%.
 For 1HFY21, EBITDA stood at INR4.9b (-35% YoY); PAT at INR3.4b (-43% YoY).
 Total volumes were at 4.1mmscmd (-36% YoY), with CNG at 2.8mmscmd
(-42% YoY) and PNG at 1.3mmscmd (-17% YoY).
 EBITDA/scm stood flat YoY at INR6.6 in 1HFY21 v/s INR6.5 in 1HFY20.

Swarnendu Bhushan- Research Analyst (Swarnendu.Bhushan@MotilalOswal.com)

Sarfraz Bhimani - Research Analyst (Sarfraz.Bhimani@MotilalOswal.com)
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.
 Indraprastha Gas

Valuation and view

 In the medium term, IGL could increase its sales volumes from new areas such
as Rewari, Karnal, and Muzaffarnagar; Haryana City Gas and the newly awarded
(3) GAs in the 10th round — (a) Kaithal (Haryana), (b) Ajmer, Pali, and
Rajsamand (Rajasthan), and (c) Kanpur, Fatehpur, and Hamirpur (Uttar Pradesh).
 Open access regulation is likely to be within the ambit of the PNGRB Act, and
litigation is less likely. Also, IGL aims to facilitate competition as this would aid
gas market expansion. We believe IGL has the most lucrative market for a
competitor in the form of well-balanced volumes and margins mix.
 The introduction of EVs could dent CNG demand over the long term. The
recently revised policy for EVs in Delhi is more directed at 2W and 3W,
impacting 3W CNG volumes (which form ~10% of total volumes). Also, the
management expects EV buses to commence plying on the roads of Delhi over
the next 2–3 years, thus challenging ~25% of total volumes used by CNG buses.
 Although it remains challenging to assess the impact of open access on
margins/volumes, any dent in these key parameters could lead to compression
in the valuation premiums enjoyed by the company.
 The stock trades at around 26.3x FY22 EPS of INR17.0 and EV/EBITDA of 17.0x in
FY22. On a one-year forward PE basis, the company trades at a 58% premium to
its long-term average of 18.3x. Maintain Neutral.

Quarterly performance (INR m)

Y/E MARCH FY20 FY21 FY20 FY21E FY21 Variance
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2QE vs Est
Net Sales 15,761 16,925 16,642 15,525 6,386 13,054 15,878 15,949 64,853 51,267 12,448 5%
Change (%) 22.4 19.1 10.3 0.6 -59.5 -22.9 -4.6 2.7 12.6 -20.9 -26.4
EBITDA 3,585 3,926 3,918 3,767 834 4,071 4,284 3,930 15,196 13,119 2,880 41%
EBITDA (INR/scm) 6.3 6.5 6.4 6.6 3.4 8.0 7.0 6.4 6.4 6.6 5.9 35%
% Change 21.5 27.5 23.3 13.7 -76.7 3.7 9.3 4.3 21.4 -13.7 -26.7
Depreciation 605 621 641 655 682 711 712 744 2,523 2,849 712 0%
Interest 16 18 20 27 24 23 20 14 81 81 20
Other Income 354 390 508 313 306 657 434 338 1,564 1,735 405 62%
PBT before EO 3,318 3,677 3,764 3,398 435 3,994 3,985 3,509 14,157 11,924 2,552 56%
Rate (%) 34.2 -3.6 24.6 25.4 26.9 22.9 25.2 25.2 19.7 24.5 25.2
Adj. PAT 2,184 3,810 2,839 2,534 318 3,079 2,982 2,626 11,365 9,006 1,910 61%
PAT (Rs/scm) 3.8 6.3 4.6 4.5 1.3 6.1 4.8 4.3 4.8 4.1 3.9 54%
Change (%) 24.1 103.4 43.4 12.4 -85.4 -19.2 5.1 3.6 44.5 -20.8 -49.9
Gas Volumes (mmscmd)
CNG 4.66 4.92 4.91 4.49 1.60 3.91 4.91 4.90 4.75 3.83 3.94 -1%
PNG 1.59 1.65 1.78 1.74 1.11 1.59 1.78 1.89 1.69 1.59 1.32 20%
Total 6.25 6.58 6.70 6.23 2.71 5.50 6.70 6.79 6.44 5.43 5.26 5%
E: MOFSL Estimates

11 November 2020 2
 Indraprastha Gas

Exhibit 1: IGL – Operational Highlights

FY19 FY20 FY21 2QFY21
INR m
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q YoY (%) QoQ (%)
Net sales 12,874 14,215 15,084 15,426 15,761 16,925 16,642 15,525 6,386 13,054 (22.9) 104.4
Realization (INR/scm) 25.5 26.2 27.8 27.4 27.7 28.0 27.0 27.4 25.9 25.8 (7.8) (0.2)
Total raw material 7,418 8,425 9,073 9,058 9,217 9,905 9,410 8,262 2,991 6,097 (38.4) 103.9
Gas cost (INR/scm) 14.7 15.5 16.7 16.1 16.2 16.4 15.3 14.6 12.1 12.0 (26.4) (0.5)
Gross Margin 5,456 5,790 6,012 6,368 6,544 7,020 7,232 7,263 3,395 6,957 (0.9) 104.9
Gross Margin (INR/scm) 10.8 10.7 11.1 11.3 11.5 11.6 11.7 12.8 13.7 13.7 18.5 0.0
EBITDA 2,951 3,080 3,179 3,312 3,585 3,926 3,918 3,767 834 4,071 3.7 387.9
EBITDA (INR/scm) 5.8 5.7 5.8 5.9 6.3 6.5 6.4 6.6 3.4 8.0 24.0 138.2
PAT 1,759 1,873 1,980 2,255 2,184 3,810 2,839 2,534 318 3,079 (19.2) 867.1
PAT (INR/scm) 3.5 3.5 3.6 4.0 3.8 6.3 4.6 4.5 1.3 6.1 (3.4) 372.1
Per unit realization
CNG (INR/scm) 28.6 28.9 30.8 30.4 31.6 31.7 30.6 31.0 29.4 26.2 (17.4) (10.8)
CNG (INR/kg) 39.4 40.5 42.8 43.0 43.9 44.9 43.5 43.5 40.9 37.0 (17.6) (9.4)
PNG (INR/scm) 26.5 28.7 29.9 28.9 29.5 29.1 30.1 29.6 30.2 30.2 3.8 (0.2)
Source: Company, MOFSL

Exhibit 2: CNG volumes down ~21% YoY to 3.9mmscmd

CNG (mmscmd) YoY CNG growth (%)
7 12 12 13 14 12 13 12 10 12 13 13 16 13 12 12
5 3 4 (3)
(21)

(66)
3.0

3.1

3.1

3.2

3.3

3.5

3.5

3.6

3.7

3.9

3.9

4.0

4.1

4.4

4.4

4.6

4.7

4.9

4.9

4.5

1.6

3.9
3QFY18
1QFY16

2QFY16

3QFY16

4QFY16

1QFY17

2QFY17

3QFY17

4QFY17

1QFY18

2QFY18

4QFY18

1QFY19

2QFY19

3QFY19

4QFY19

1QFY20

2QFY20

3QFY20

4QFY20

1QFY21

2QFY21
Source: Company, MOFSL

Exhibit 3: PNG volumes down 4% YoY to 1.6mmscmd

PNG (mmscmd) YoY PNG growth (%) - RHS
18 20 27 17 18 21 18 20 18
5 8 13 15 13 10 12 12
(5) 5 5 (4)
(30)
0.9

1.0

0.9

0.9

1.0

1.1

1.1

1.2

1.2

1.3

1.4

1.4

1.4

1.5

1.5

1.7

1.6

1.7

1.8

1.7

1.1

1.6
1QFY16

2QFY16

3QFY16

4QFY16

1QFY17

2QFY17

3QFY17

4QFY17

1QFY18

2QFY18

3QFY18

4QFY18

1QFY19

2QFY19

3QFY19

4QFY19

1QFY20

2QFY20

3QFY20

4QFY20

1QFY21

2QFY21

Source: Company, MOFSL

Exhibit 4: EBITDA/scm at INR8.0

5.6

5.0

5.0

4.8

6.5

6.1

6.0

5.2

6.2

5.9

5.4

5.7

5.8

5.7

5.8

5.9

6.3

6.5

6.4

6.6

3.4

8.0
2QFY18
1QFY16

2QFY16

3QFY16

4QFY16

1QFY17

2QFY17

3QFY17

4QFY17

1QFY18

3QFY18

4QFY18

1QFY19

2QFY19

3QFY19

4QFY19

1QFY20

2QFY20

3QFY20

4QFY20

1QFY21

2QFY21

Source: Company, MOFSL

11 November 2020 3
 Indraprastha Gas

Story in charts
Exhibit 5: Sales growth to continue, barring COVID-19-led Exhibit 6: IGL maintains margins by passing on cost
demand impact in FY21 increases to CNG and PNG consumers
PNG (mmscm) CNG (mmscm) Realization (INR/scm)

2,237
1,948
1,738
1,602

28
1,413

1,399
1,028

1,266

28
1,125
1,072

27
26

26

25
25

25
619 741 762
581

24
479 552
356 330 342 407

23
FY16
FY14

FY15

FY17

FY18

FY19

FY20

FY21E

FY22E

FY23E

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21E

FY22E

FY23E
Source: Company, MOFSL Source: Company, MOFSL

Exhibit 7: IGL profitability (PAT in INR/scm) to normalize in Exhibit 8: EBITDA/scm to decrease in FY22-23, as APM prices
FY22–23 revive from the trough

PAT (INR/scm) EBITDA (INR/scm)

4.8 4.5 4.4
4.1 6.6
3.4 3.5 3.7 6.4
3.1 6.4
2.6 2.9
5.9 6.0
5.8 5.8
5.6 5.6
5.3
FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21E

FY22E

FY23E

FY15
FY14

FY16

FY17

FY18

FY19

FY20

FY21E

FY22E

FY23E
Source: Company, MOFSL Source: Company, MOFSL

Exhibit 9: Return ratios to stabilize <20% Exhibit 10: Stock trades at 58% premium to its LT PE average
ROE (%) ROCE (%) P/E (x) Avg (x) Max (x)
27 64.0 Min (x) +1SD -1SD

22 23 46.4
21 21 48.0
21 25 19
18 26.9
17 17 32.0
20 20 20 19 18.3
19 18 28.9
17 17 16.0
16 7.6 9.6
0.0
FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21E

FY22E

FY23E

Oct-10

Apr-13

Jul-14

Oct-15

Apr-18

Jul-19

Oct-20
Jan-12

Jan-17

Source: Company, MOFSL Source: Company, MOFSL

11 November 2020 4
 Indraprastha Gas

Financials and valuations

Income Statement (INR m)
Y/E March 2016 2017 2018 2019 2020 2021E 2022E 2023E
Net Sales 36,858 38,148 45,921 57,600 64,853 51,267 68,559 75,050
Change (%) 0.4 3.5 20.4 25.4 12.6 -20.9 33.7 9.5
EBITDA 7,747 9,638 11,133 12,521 15,196 13,119 17,147 17,960
% of Net Sales 21.0 25.3 24.2 21.7 23.4 25.6 25.0 23.9
Depreciation 1,563 1,671 1,813 2,011 2,523 2,849 3,066 3,284
Interest 99 12 17 21 81 81 73 66
Other Income 299 652 1,021 1,510 1,564 1,735 1,938 1,930
PBT 6,385 8,607 10,325 12,000 14,157 11,924 15,946 16,540
Tax 2,194 2,896 3,617 4,134 1,134 2,918 4,018 4,168
Rate (%) 34.4 33.6 35.0 34.4 8.0 24.5 25.2 25.2
PAT 4,191 5,711 6,708 7,867 13,023 9,006 11,927 12,372
Adj. PAT 4,191 5,969 6,604 7,867 11,365 9,006 11,927 12,372
Change (%) -4.3 42.5 10.6 19.1 44.5 -20.8 32.4 3.7
Adj. PAT
Balance Sheet (INR m)
Y/E March 2016 2017 2018 2019 2020 2021E 2022E 2023E
Share Capital 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400
Reserves 23,764 27,866 33,729 39,899 49,224 56,592 66,062 75,977
Net Worth 25,164 29,266 35,129 41,299 50,624 57,992 67,462 77,377
Deferred Tax 1,650 1,806 2,253 2,678 2,119 2,119 2,119 2,119
Capital Employed 26,815 31,072 37,382 43,977 52,743 60,111 69,581 79,496
Gross Fixed Assets 33,752 36,402 41,364 47,607 55,744 62,344 69,544 77,344
Less: Depreciation 13,560 15,231 17,044 19,054 21,577 24,426 27,492 30,775
Net Fixed Assets 20,192 21,172 24,320 28,553 34,167 37,919 42,053 46,569
Capital WIP 2,669 3,518 3,860 4,781 7,767 12,167 16,967 22,167
Investments 2,592 6,770 11,477 15,440 2,581 2,581 2,581 2,581
Curr. Assets, L & Adv.
Inventory 576 517 524 509 511 404 540 591
Debtors 2,511 2,014 2,261 2,215 1,704 1,347 1,801 1,972
Cash & Bank Balance 4,538 6,086 5,580 6,071 21,799 18,092 22,350 23,946
Loans & Advances 80 103 149 153 154 154 154 154
Other Current Assets 655 682 1,110 1,772 1,819 1,819 1,819 1,819
Current Liab. & Prov.
Liabilities 6,847 9,580 11,690 13,687 16,172 12,784 17,096 18,715
Provisions 151 210 210 1,830 2,808 2,808 2,808 2,808
Net Current Assets 1,362 -388 -2,275 -4,797 7,007 6,224 6,760 6,959
Application of Funds 26,815 31,072 37,382 43,977 52,743 60,111 69,581 79,496
E: MOFSL Estimates

11 November 2020 5
 Indraprastha Gas

Financials and valuations

Ratios
Y/E March 2016 2017 2018 2019 2020 2021E 2022E 2023E
Basic (INR)
EPS 6.0 8.5 9.4 11.2 16.2 12.9 17.0 17.7
Cash EPS 8.2 10.9 12.0 14.1 19.8 16.9 21.4 22.4
Book Value 35.9 41.8 50.2 59.0 72.3 82.8 96.4 110.5
DPS 1.2 1.7 2.0 2.4 2.8 2.0 3.0 3.0
Payout 20.0 19.9 21.2 21.4 17.2 15.5 17.6 17.0
Valuation (x)
P/E 74.8 52.5 47.5 39.9 27.6 34.8 26.3 25.3
Cash P/E 54.5 41.0 37.3 31.7 22.6 26.5 20.9 20.0
EV / EBITDA 39.9 31.9 27.7 24.6 19.2 22.5 17.0 16.1
EV / Sales 8.4 8.1 6.7 5.3 4.5 5.8 4.2 3.9
Price / Book Value 12.5 10.7 8.9 7.6 6.2 5.4 4.6 4.1
Dividend Yield (%) 0.3 0.4 0.4 0.5 0.6 0.4 0.7 0.7
Profitability Ratios (%)
RoE 18.2 21.0 20.8 20.6 28.3 16.6 19.0 17.1
RoCE 16.8 19.8 19.6 19.4 27.1 16.1 18.5 16.7
RoIC 24.6 33.3 38.9 40.4 60.9 32.4 38.3 37.5
Turnover Ratios
Debtors (No. of Days) 15 17 21 26 33 34 44 40
Asset Turnover (x) 1.5 1.3 1.3 1.4 1.3 0.9 1.1 1.0
Leverage Ratio
Net Debt / Equity (x) -0.2 -0.2 -0.2 -0.1 -0.4 -0.3 -0.3 -0.3

Cash Flow Statement (INR m)

Y/E March 2016 2017 2018 2019 2020 2021E 2022E 2023E
OP/(Loss) before Tax 6,385 8,607 10,325 12,000 14,157 11,924 15,946 16,540
Depreciation 1,563 1,671 1,813 2,011 2,523 2,849 3,066 3,284
Deferred tax 378 156 447 425 -559 0 0 0
Direct Taxes Paid -2,194 -2,896 -3,617 -4,134 -1,134 -2,918 -4,018 -4,168
(Inc)/Dec in Wkg. Capital -440 3,298 1,382 3,012 3,924 -2,924 3,721 1,397
CF from Op. Activity 5,691 10,835 10,349 13,315 18,910 8,931 18,715 17,052
(Inc)/Dec in FA & CWIP -2,325 -3,499 -5,304 -7,164 -11,123 -11,000 -12,000 -13,000
Free Cash Flow 3,367 7,336 5,045 6,151 7,787 -2,069 6,715 4,052
(Pur)/Sale of Investments 317 -4,179 -4,707 -3,963 12,859 0 0 0
CF from Inv. Activity -2,008 -7,678 -10,011 -11,127 1,736 -11,000 -12,000 -13,000
Dividends Paid (incl.tax) -983 -1,310 -1,688 -1,966 -2,293 -1,638 -2,457 -2,457
CF from Fin. Activity -1,461 -1,609 -844 -1,697 -4,917 -1,638 -2,457 -2,457
Inc / ( Dec) in Cash 2,223 1,548 -506 491 15,729 -3,707 4,258 1,595
Add: Opening Balance 2,315 4,538 6,086 5,580 6,071 21,799 18,092 22,350
Closing Balance 4,538 6,086 5,580 6,071 21,799 18,092 22,350 23,946
E: MOFSL Estimates 0 0 0 0 0

11 November 2020 6
 Infosys

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
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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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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
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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.
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Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
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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"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
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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
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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.
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
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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

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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.
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This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
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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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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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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
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the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and
should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make
modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from
time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to
perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a
separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of
information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or
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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
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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;
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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
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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
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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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