CMP: INR840 TP: INR941 (+12%) Neutral TRAI boost to RJio; increasing target price

Transcription

1 20 September 2017 Update Sector: Oil & Gas Reliance Industries BSE SENSEX S&P CNX 32,402 10,148 Stock Info Bloomberg RIL IN Equity Shares (m) Week Range (INR) 861 / 466 1, 6, 12 Rel. Per (%) 4/22/42 M.Cap. (INR b) M.Cap. (USD b) Avg Val, INRm 12,124 Free float (%) 55.0 Financials Snapshot (INR b) Y/E March E 2019E Net Sales 2,420 3,237 3,723 EBITDA Net Profit EPS (INR) EPS Gr. (%) BV/Sh. (INR) RoE (%) RoCE (%) P/E (x) P/BV (x) EV/EBITDA (x) Shareholding pattern (%) As On Jun-17 Mar-17 Jun-16 Promoter DII FII Others FII Includes depository receipts CMP: INR840 TP: INR941 (+12%) Neutral TRAI boost to RJio; increasing target price The Telecom Regulatory Authority of India (TRAI) has reduced the interconnect usage charge (IUC) from 14p/min to 6p/min with effect from 1 st October This would be further reduced to zero from 1 st January ~40% reduction in RJio s access cost would result in the company s EBITDA increasing by 43%/31% in FY19/20. We also roll over our valuation to September 2018, and increase our target price on Reliance Industries (RIL) from INR750 to INR950, implying a 13% upside. Revising RJio s EBITDA by 43%/30% for FY19/20E led by IUC savings Based on the reduction in the IUC rate, RJio s access cost is revised down by ~INR30b (40%) to INR44b/49b for FY19/20E. Subsequently, we have revised up our EBITDA estimates for FY19/20E by 43%/31% to INR91b/INR130b. Our subscriber and ARPU estimates for FY19/20E remains intact at 132m/156m and INR215/INR229, respectively. Zero IUC by 2020 may not alter the scenario significantly. We believe that, by 2020, a significant proportion (70-75%) of subscribers would be data subscribers. In the event of complimentary voice offerings, bundled (data and voice) price plans should protect incumbents ARPUs. RJio could choose market share over profitability The key question is whether RJio will pass on the benefits to feature phone subscribers to chase market share or will focus on enhancing profitability. RJio s current active subscriber market share stands at 9.6%. We believe RJio will continue tapering freebies for smartphone subscribers, even as it may extend discounts to feature phone subscribers to accelerate market share growth. Based on 43%/31% increase in EBITDA for FY19/20E, we increase our DCFbased TP to INR190/share (ex. bonus; prior: INR130/share). Our DCF factors in 12% WACC and 2% terminal growth. Stock Performance (1-year) Reliance Inds. Sensex - Rebased Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Increasing valuation multiples; maintaining Neutral We have increased the refining and marketing multiples from 6x to 7x, driven largely by the better performance exhibited by the company in its refining segment in an adverse environment, due to its better risk and yield/crude management. Key triggers: (i) how the company further unfolds its strategy in RJio and (ii) how other core expansions take shape. The stock trades at 12.2x standalone FY19E P/E and 10.4x standalone FY19E EV/EBITDA. We roll over to September 2018, and increase our target price on RIL from INR750 to INR941, implying a 12% upside. Maintain Neutral. Swarnendu Bhushan Research Analyst (Swarnendu.Bhushan@MotilalOswal.com); Abhinil Dahiwale Research Analyst (Abhinil.Dahiwale@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 Bloomberg, Thomson Reuters, Factset and S&P Capital.

2 Exhibit 1: RIL: Key assumptions Key Metrics FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E Exchange Rate (INR/USD) Refining Capacity (mmt) Production (mmt) Capacity Utilization (%) 107% 109% 110% 110% 110% 112% 113% 113% 113% 113% GRM (USD/bbl) Singapore GRM Premium/(disc) RIL GRM E&P Gas Production (mmscmd) Oil Production (kbd) Pricing Brent Oil (USD/bbl) Wellhead Gas Price (USD/mmbtu) Exhibit 2: RIL: Segmental EBIT break-up (INRb) Segmental EBTI (INRb) FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E Refining Petchem E&P Total Segmental EBIT share (%) Refining 36% 40% 55% 55% 60% 69% 66% 64% 61% 60% Petrochemicals 37% 38% 32% 36% 33% 30% 33% 34% 37% 39% E&P 26% 22% 13% 8% 6% 1% 1% 2% 2% 1% Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Exhibit 3: RIL: Sum of the parts valuation (Sep-18 TP) Core business Value Remarks/Methodology Refining 347 7x FY19 EBITDA Petchem 305 7x FY19 EBITDA E&P 33 KG D6 5 DCF PMT 6 DCF NEC-25 2 USD 5/boe CBM 4 USD 5/boe Shale (23) 7x EV/EBITDA FY19 KG basin exploratory upside 39 USD 5/boe Investments RGTIL 3 Book value Reliance Retail 49.7x FY19 sales RJio 190 As per our telecom analyst Total 928 Net debt / (cash) (13) Target price September

3 Reilance Jio: Story in charts Exhibit 4: Subscriber market share to get a fillip Exhibit 5: Data traffic to touch new highs Subsrciber base (m) Subscriber Market Share (%) Data Traffic (b Mb) 0.12 Data realizations (INR/MB) ,111 3,428 4,399 5,443 6,614 FY17E FY18E FY19E FY20E FY21E FY22E FY18E FY19E FY20E FY21E FY22E Exhibit 6: Subscribers (mn) across India 20 September

4 Reliance Industries: Story in charts Exhibit 7: RIL s earnings growth momentum on a recovery track 24.9 (1.2) PAT (INRb) PAT - YoY (%) Exhibit 8: Also, return ratios are expected to gradually recover RoCE (%) RoE (%) FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E Exhibit 9: Refinery throughput to remain at 70mmt in FY18/19; GRM to stabilize Refinery Thr' put (mmt) RIL GRM (USD/bbl) FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E Exhibit 10: Expect petchem EBITDA contribution to increase, going forward, followed by refining Refining Petchem E&P Total FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E 20 September

5 Reliance Industries: Story in charts Exhibit 11: Segmental EBIT break-up (%) - E&P a dampener, refining and petchem outshine Refining Petrochemicals E&P Exhibit 12: Expect E&P production to decline; though new policy can boost long-term production (mmscmd) Gas Production (mmscmd) FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E Exhibit 13: RIL refining margins improved in FY16 (USD/bbl) after staying flat in recent years Singapore GRM Premium/(disc) RIL GRM Exhibit 14: We expect petchem EBITDA to improve in FY18/19 Petchem EBITDA (INRb) FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E Exhibit 15: Dividend payout stabilized in recent years (%) Dividend payout (%) 20 Exhibit 16: RIL 1-year forward P/E chart (last 10 years) P/E (x) Avg (x) Max (x) 38.0 Min (x) +1SD -1SD FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E Sep-07 Dec-08 Mar-10 Jun-11 Sep-12 Dec-13 Mar-15 Jun-16 Sep September

6 Reilance Jio - Financials and Valuations Consolidated - Income Statement (INR m) Total Income from Operations , , ,039 Change (%) NA ,733, Tower Rental Cost , , ,707 Spectrum and License Costs ,821 43,524 52,364 Access and Roaming Charge ,475 51,459 58,637 Employees Cost ,820 19,246 21,825 Subscriber Acquisition/Servicing Costs ,599 63,381 67,488 Other Expenses ,000 22,000 20,000 Total Expenditure , , ,021 % of Sales 48, , , EBITDA ,139 91, ,018 Margin (%) Depreciation , , ,274 EBIT ,846-11,794 28,744 Int. and Finance Charges , , ,559 Other Income ,075 3,957 4,760 PBT bef. EO Exp , ,397-76,055 EO Items PBT after EO Exp , ,397-76,055 Total Tax Tax Rate (%) Minority Interest Reported PAT , ,397-76,055 Adjusted PAT , ,397-76,055 Change (%) NA , Margin (%) -57, , , Consolidated - Balance Sheet (INR m) Equity Share Capital 301, , , , , ,000 Total Reserves ,644 35,314-76, ,138 Net Worth 300, , , , , ,862 Total Loans 296, ,078 1,244,490 1,244,490 1,344,490 1,394,490 Capital Employed 597, ,581 1,953,134 1,929,803 1,918,407 1,892,352 Gross Block 10,256 11,825 13,606 2,048,000 2,096,000 2,120,000 Less: Accum. Deprn. 1,398 2,428 3, , , ,097 Net Fixed Assets 8,858 9,397 9,744 1,939,431 1,884,177 1,806,903 Capital WIP 722,978 1,183,499 1,779, Total Investments 7,924 8,333 8,731 8,731 8,731 8,731 Curr. Assets, Loans&Adv. 80, , ,634 82, , ,992 Account Receivables ,052 32,521 39,126 Cash and Bank Balance , , ,460 Loans and Advances 80, , ,366 31,120 59,350 71,406 Curr. Liability & Prov. 222, ,685 55, , , ,274 Account Payables ,184 37,505 42,660 Other Current Liabilities 222, ,286 55,067 51,867 98, ,010 Provisions ,747 39,567 47,604 Net Current Assets -142, , ,883-18,359 25,499 76,718 Appl. of Funds 597, ,581 1,953,134 1,929,803 1,918,406 1,892, September

7 Reilance Jio - Financials and Valuations Ratios Basic (INR) EPS* Cash EPS BV/Share DPS Payout (%) Return Ratios (%) RoE NA RoCE NA RoIC NA Working Capital Ratios Fixed Asset Turnover (x) Asset Turnover (x) Debtor (Days) Creditor (Days) Leverage Ratio (x) Current Ratio Interest Cover Ratio Net Debt/Equity *Based on RJio s number of shares Consolidated - Cash Flow Statement (INR m) OP/(Loss) before Tax , ,397-76,055 Depreciation , , ,274 Interest & Finance Charges ,484 99, ,799 Direct Taxes Paid (Inc)/Dec in WC -27,827-43,454-33, ,241 31,492 14,623 CF from Operations -28,009-43,633-34, , , ,641 Others CF from Operating incl EO -28,017-43,659-34, , , ,641 (Inc)/Dec in FA -95, , , ,618-48,000-24,000 Free Cash Flow -123, , ,456-68,516 74, ,641 (Pur)/Sale of Investments -5, Others ,075 3,957 4,760 CF from Investments -100, , , ,544-44,043-19,240 Issue of Shares 70, , , Inc/(Dec) in Debt 71, , , ,000 50,000 Interest Paid -13,453-32,740-58,188-99, , ,559 Dividend Paid Others CF from Fin. Activity 128, , , ,441-3,559-59,559 Inc/Dec of Cash ,999 75,350 65,843 Opening Balance , ,617 Closing Balance , , , September

8 Reilance Industries - Financials and Valuations Standalone - Income Statement (INR m) Total Income from Operations 3,290,760 2,331,580 2,420,250 3,236,723 3,723,331 3,827,661 Change (%) Purchases 90,770 84,120 3,220 12, Manufacturing and Other Expenses 2,883,970 1,853,990 1,984,470 2,700,792 3,158,186 3,255,739 Total Expenditure 2,974,740 1,938,110 1,987,690 2,713,212 3,158,186 3,255,739 % of Sales EBITDA 316, , , , , ,921 Margin (%) Depreciation 84,880 85,900 84, , , ,246 EBIT 231, , , , , ,675 Int. and Finance Charges 23,670 25,620 27,230 37,418 30,375 31,500 Other Income 87,210 78,210 87,090 94, , ,563 PBT bef. EO Exp. 294, , , , , ,738 EO Items PBT after EO Exp. 294, , , , , ,738 Total Tax 67,490 86,320 93, , , ,122 Tax Rate (%) Reported PAT 227, , , , , ,616 Adjusted PAT 227, , , , , ,616 Change (%) Margin (%) Standalone - Balance Sheet (INR m) Equity Share Capital 32,360 32,400 32,510 65,020 65,020 65,020 Eq. Share Warrants & App. Money Total Reserves 2,129,230 2,507,580 2,850,620 3,132,394 3,481,968 3,861,593 Net Worth 2,161,760 2,539,980 2,883,130 3,197,414 3,546,988 3,926,613 Total Loans 976, ,200 1,013, , , ,000 Deferred Tax Liabilities 126, , , , , ,660 Capital Employed 3,264,700 3,700,650 4,143,820 4,095,074 4,494,648 4,874,273 Gross Block 2,360,620 2,622,320 2,584,480 3,557,650 3,707,650 3,757,650 Less: Accum. Deprn. 1,214,990 1,146,890 1,053,180 1,362,651 1,482,529 1,620,775 Net Fixed Assets 1,145,630 1,475,430 1,531,300 2,194,999 2,225,121 2,136,875 Capital WIP 757,530 1,109,050 1,341, , , ,868 Total Investments 1,125,730 1,572,500 1,924,500 1,924,500 1,924,500 1,924,500 Curr. Assets, Loans&Adv. 948, , ,770 1,092,010 1,835,825 2,367,472 Inventory 365, , , , , ,824 Account Receivables 46,610 34,950 54,720 70,942 81,607 83,894 Cash and Bank Balance 115,710 68,920 17, ,065 1,077,030 1,586,838 Loans and Advances 421, , , , , ,916 Curr. Liability & Prov. 713,150 1,116,090 1,323,640 1,852,303 2,126,667 2,190,441 Account Payables 650,570 1,093,730 1,289,780 1,773,547 2,040,181 2,097,348 Provisions 62,580 22,360 33,860 78,756 86,486 93,093 Net Current Assets 235, , , , , ,030 Appl. of Funds 3,264,700 3,700,650 4,143,820 4,095,074 4,494,648 4,874,273 E: MOSL Estimates 20 September

9 Reilance Industries - Financials and Valuations Ratios Basic (INR) EPS Cash EPS BV/Share DPS Payout (%) Valuation (x) P/E Cash P/E P/BV EV/Sales EV/EBITDA Dividend Yield (%) FCF per share Return Ratios (%) RoE RoCE RoIC Working Capital Ratios Fixed Asset Turnover (x) Asset Turnover (x) Inventory (Days) Debtor (Days) Creditor (Days) Leverage Ratio (x) Current Ratio Interest Cover Ratio Net Debt/Equity Standalone - Cash Flow Statement (INR m) OP/(Loss) before Tax 294, , , , , ,738 Depreciation 84,880 85,900 84, , , ,246 Direct Taxes Paid -67,490-86,320-93, , , ,122 (Inc)/Dec in WC 174, , , , ,514 41,936 CF from Operations 486, , , , , ,798 Others 4, ,700 10, CF from Operating incl EO 491,140 1,031, , , , ,798 (Inc)/Dec in FA -476, , , ,500-50,000-50,000 Free Cash Flow 14, , , , , ,798 (Pur)/Sale of Investments -231, , , CF from Investments -707,930-1,213, , ,500-50,000-50,000 Issue of Shares ,380 70, Inc/(Dec) in Debt 36,600 31,790 89, ,030 50,000 0 Dividend Paid -35,590-37,000-41,738-52,976-58,925-63,991 CF from Fin. Activity , , ,006-8,925-63,991 Inc/Dec of Cash -216,530-46,790-51, , , ,808 Opening Balance 332, ,710 68,920 17, ,065 1,077,030 Closing Balance 115,710 68,920 17, ,065 1,077,030 1,586, September

10 Disclosures: The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations). Reliance Industries Motilal Oswal Securities Ltd. (MOSL) is a SEBI Registered Research Analyst having registration no. INH 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 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), Metropolitan Stock Exchange Of India Ltd. (MSE) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) & National Securities Depository Limited (NSDL) and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products. Details of associate entities of Motilal Oswal Securities Limited are available on the website at Pending Regulatory Enquiries against Motilal Oswal Securities Limited by SEBI: SEBI pursuant to a complaint from client Shri C.R. Mohanraj alleging unauthorized trading, issued a letter dated 29th April 2014 to MOSL notifying appointment of an Adjudicating Officer as per SEBI regulations to hold inquiry and adjudge violation of SEBI Regulations; MOSL requested SEBI to provide all documents, records, investigation report relied upon by SEBI which were referred in Show Cause Notice and also sought personal hearing. The matter is currently pending. MOSL, it s associates, Research Analyst or their relative may have any financial interest in the subject company. MOSL and/or its associates and/or Research Analyst may have beneficial ownership of 1% or more securities in the subject company at the end of the month immediately preceding the date of publication of the Research Report. 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. Research Analyst may have served as director/officer, etc. in the subject company in the last 12 month period. MOSL and/or its associates may have received any compensation from the subject company in the past 12 months. In the last 12 months period ending on the last day of the month immediately preceding the date of publication of this research report, MOSL or any of its associates may have: a) managed or co-managed public offering of securities from subject company of this research report, b) received compensation for investment banking or merchant banking or brokerage services from subject company of this research report, c) received compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company of this research report. d) Subject Company may have been a client of MOSL or its associates during twelve months preceding the date of distribution of the research report. MOSL and it s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report. To enhance transparency, MOSL has incorporated a Disclosure of Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the 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. 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. 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. Disclosure of Interest Statement Reliance Industries Analyst ownership of the stock No A graph of daily closing prices of securities is available at 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. 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. INH ) 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 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 Motilal Oswal Capital Markets Singapore Pte Limited is acting as an exempt financial advisor under section 23(1)(f) of the Financial Advisers Act(FAA) read with regulation 17(1)(d) of the Financial Advisors Regulations and is a subsidiary of Motilal Oswal Securities Limited in India. This research is distributed in Singapore by Motilal Oswal Capital Markets Singapore Pte Limited and it is only directed in Singapore to accredited investors, as defined in the Financial Advisers Regulations and the Securities and Futures Act (Chapter 289), as amended from time to time. In respect of any matter arising from or in connection with the research you could contact the following representatives of Motilal Oswal Capital Markets Singapore Pte Limited: 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 ; Tel No.: ; Correspondence Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai Tel No: Compliance Officer: Neeraj Agarwal, Id: na@motilaloswal.com, Contact No.: Registration details of group entities.: MOSL: NSE (Cash): INB ; NSE (F&O): INF ; NSE (CD): INE ; BSE (Cash): INB ; BSE(F&O): INF ; BSE(CD); MSE(Cash): INB ; MSE(F&O): INF ; MSE(CD): INE ; CDSL: IN-DP ; NSDL: IN-DP-NSDL ; Research Analyst: INH AMFI: ARN Investment Adviser: INA Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration No.: INP ) offers PMS and Mutual Funds products. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP ) 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 Commodities Broker Pvt. Ltd. offers Commodities 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 20 September