CMP: INR526 TP: INR630 (+20%) Buy

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1 BSE SENSEX S&P CNX 32,607 10,208 Bloomberg Z IN Equity Shares (m) M.Cap.(INRb)/(USDb) / Week Range (INR) 561 / 429 1, 6, 12 Rel. Per (%) -1/-9/-13 Avg Val, INRm 1087 Free float (%) 56.9 Financials & Valuations (INR b) Y/E MARCH E 2019E Net Sales EBITDA Adj. NP Adj. EPS (INR) Adj. EPS Gr. (%) BV/Share (INR) RoE (%) RoCE (%) Adj. P/E (x) P/B (x) EV/EBITDA (x) Estimate change TP change Rating change 24 October QFY18 Results Update Sector: Media Zee Entertainment CMP: INR526 TP: INR630 (+20%) Buy Ad recovery in sight; subscription growth stable Ex-sports revenue up 7%, EBITDA flat: Ex-sports revenue rose 7% YoY, led by domestic ad and subscription revenue. Consol. revenue fell 7% YoY to INR15.8b (in-line). Consol. EBITDA stood at INR4.9b (flat YoY, 4% beat) with a 31% margin (+210bp YoY), despite lower revenues, led by 25% YoY savings in content cost. PAT surged 148% to INR5.9b (est. of INR3b). PAT, after adjusting for INR1.3b exceptional gains from sports, INR1.6b other income from equity revaluation and reversal of INR81m interest provision, rose 21% YoY to INR2.9b (7% miss). GST slows ad, subscription growth: Domestic ad revenue grew 6% YoY (exsports, RBNL and IWPL) to INR9.3b, impacted by GST. Overall ad growth was meager 3% YoY to INR 9.9b (in-line) due to 34% fall in international ad revenues on currency appreciation and region-specific issues. Domestic subscription revenue ex-sports grew 7% to INR4b, as TRAI tariff order delayed contract renewals. Overall subscription revenue fell 14% YoY to INR5b (est. of INR4.8b). Ad recovery in sight; subscription growth stable: With the onset of festive season, domestic ad growth strongly rebounded to normal level, with broadbased recovery (incl. FMCG and ecommerce). Zee s strong ratings should be maintained, with an increase in original content of flagship channel to 32 hours by 4QFY18E from 28 hours. We expect 15% ad revenue growth in 2HFY18 and 16% in FY19E. Subscription revenue should grow at 12%/14% in 2HFY18/FY19E. Maintain Buy with TP of INR630: We broadly maintain our ex-sports revenue growth of 11%/16% for FY18/19E. High original content, launch of OTT app Z5 and rebranding Zee TV should reduce room for operating leverage. Thus, we cut EBITDA margin by ~300bp to 32.6% in FY19E. This is still above management s guidance of 30%+ margin, building operating leverage from high revenue growth and &TV breakeven in two quarters. We have assigned 35x P/E on Sept'19 adj. EPS v/s 32x earlier, given Zee's steady improvement in viewership share and a strong recovery in the ad market, which should support ~20% EPS growth on a sustainable basis. Maintain Buy with TP of INR630. Consolidated - Quarterly Earning Model (INR m) Y/E March FY17 FY18 FY17 FY18E 2QFY18E v/s est (%) 1Q 2Q 3Q 4Q 1Q 2Q 3QE 4QE Total Revenue from Operations 15,717 16,954 16,391 15,280 15,402 15,821 17,230 16,103 64,342 64,556 15, YoY Change (%) Total Expenditure 11,185 12,062 11,233 10,593 10,559 10,909 11,774 10,962 45,073 44,204 11, EBITDA 4,532 4,892 5,158 4,688 4,844 4,912 5,456 5,141 19,269 20,352 4, Margins (%) Depreciation ,152 1, Interest , ,372 1, Other Income ,011 2, ,240 4, Fair Value through P&L gain/(loss) -1, , PBT before EO expense 3,808 4,074 4,630 4,269 4,864 6,381 4,952 4,672 16,780 20,869 4, Extra-Ord expense , , ,234-1,346 0 PBT 3,808 4,074 4,630 16,504 4,864 7,727 4,952 4,672 29,014 22,215 4, Tax 1,626 1,634 2,081 1,464 2,344 1,832 1,684 1,916 6,805 7,775 1, Rate (%) Minority Int. & P/L of Asso. Cos Reported PAT 2,169 2,383 2,508 15,156 2,516 5,912 3,268 2,756 22,216 14,451 3, Adj PAT 2,169 2,383 2,508 4,006 2,516 2,876* 3,268 2,756 11,067 11,416 3, YoY Change (%) Margins (%) * Adjusted for exceptional gains from sports, other income from equity revaluation and reversal of interest provision) Aliasgar Shakir Research analyst (Aliasgar.Shakir@motilaloswal.com); Hafeez Patel Research analyst (Hafeez.Patel@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 Concall Highlights Key Takeaways Ad spending has recovered to normal level. Ad growth is broad-based, and all sectors are growing well. Expect mid-teens growth, excluding gains of low base. For subscription, outlook remains the same at mid-teens growth. Remain confident based on discussion on content contract renewals in 2HFY18. FY18 EBITDA margin guidance stands at 30%+. This includes digital launch, increase in original content on Zee to 32hrs/week from 28hrs/week currently, rebranding flagship Zee and 25 years celebrations. Inventory is high primarily due to acquisition of both satellite and digital movie rights for Hindi, as well as regional content. This might remain high for next months. On regional side, Zee plans to enter Kerala and Punjab through greenfield organic expansion. &TV channel is expected to breakeven by 4QFY18. Current quarter performance Advertisement revenue growth, though impacted by GST post 1Q, has recovered strongly. Domestic subscription revenue growth was 7.2% (on a like to like basis) % content is in-house, which may have gone up. Content cost was low, mainly on account of sale of sports business and lower amortization on movies. TV content cost has increased in line with revenues. Effective tax rate was 36%. However, it is higher on consolidated level due to fair value gain on IWPL and goodwill. Overall strong improvement in channel standing was witnessed. Pay Hindi GEC: Zee has maintained its leadership, while &TV witnessed improvement in viewership. Zee Marathi and Big Ganga were leaders in their genre. Zee stands at second position for Bangla, Telugu and Kannada, while in Tamil it stands third. Sarthak is a leader in Odiya market. Launched 2 new HD channels: &prive HD and Zee Tamil HD in 2QFY18. Music label witnessed 2.6b views. Ozee has average of 115m views per month. Digital hrs will be exclusive digital content yearly, while rest of the content could be leveraged on TV platform, so that will also support margin. Digital subscription rev contribution is small currently. In 2HFY18, it may see bump up as the deal with telecom operators gets concluded. Management plans to have an unmatched digital content on its platform. This will include the linear channels, VOD side, film rights, which all will be exclusive. However, films licensed from international studios may not be exclusive. Ozee and Ditto TV would be acting as a sound launch-pad for its new digital product Z5. 24 October

3 Ozee and Ditto customers will get an automatic upgrade with the Z5 launch. Content streaming deal with Jio is only for mobile handset (not on TV as of now). Outlook Advertisement growth For advertisement, management expects to beat industry growth in 2HFY18, mid-teens visible. Ad growth is broad-based and all sectors are growing well. Ad spending has recovered to normal level, including, FMCG, e-comm. Management targets to beat industry growth. So if the industry grows at a higher pace, Zee too will grow at a higher pace. Renewed deal with HUL in September. Subscription growth For subscription, outlook remains same at mid-teen growth. Subscription midteen guidance is based on content contract renewal happening in 2nd half, which has been the case before and based on the discussion, management remains confident. Until tariff order implementation, the deals will be renewed on fixed fee basis. Since the digital content consumption is driven by TV content, management believes there would be no erosion on subscription. International subscription revenue, especially South Asian biz, could de-grow in near future. This will be shifted to digital revenues. But may see a lag in time. Profitability FY18 EBITDA margin guidance stands at 30%+, despite investments in regional (especially Tamil) and digital ventures. Management is focused on increasing the market share, but at reasonable profitability. &TV channel is expected to breakeven by 4QFY18. It has 24hrs programming currently and will remain the same in 3QFY18. Based on the performance in 3QFY18, it will decide future programming. Advertisement cost will rise due to rebranding, launch of Z5 - digital platform and 25 year celebration (one time) Cost to increase because of new channel launch, 8 shows launched on Zee and &TV (against 2-3 usually), and 25-year branding related cost Currently, programming hrs for Zee stand at ~27.5 hrs, which management plans to take to 30hrs by 3QFY18, and 32hrs by 4QFY18 (FY16 it was 30+ hrs; however, in FY17 it fell below 30 hrs) FY18 tax guidance stands at 35-36%. For 1QFY18, it was higher due to income from foreign subsidiary. Growth Despite HD channels of peers, Zee is offering bouquet of channels. However, management believes it may not necessarily lose on subscription due to non-hd channels. Management believes the tariff order when implemented will help remove leakages, which will be positive for Zee. 24 October

4 Balance sheet/acquisitions Inventory is high primarily due to acquisition of both Satellite and Digital movie rights for Hindi, as well as regional content. Additionally, music rights and movie production (FY18 guidance 1.5 b) have also contributed to the increase. Investment strategy has changed from largely Hindi GEC products, now to regional genre as well digital. This might remain lopsided for next months INR cr inventory has gone up to INR20b in the last 1-2 years. Recent movies acquired include Raees, Dangal, Half Girlfriend, Barreli Ki Barfi and Toilet Ek Prem Katha, apart from multiple regional movie rights. 9XM acquisition is based on the stated policy of regional and niche categories and will benefit immensely from Zee s network. Timeline of 9X Media consolidation is uncertain due to treaties and regulatory approvals pending. Will take 2 more months to consol (not in 3QFY18). Management didn t give any guideline on preference shares redemption. It is still working on taxation and regulatory matters. Cash balance stood at INR30.6b. On regional side, Zee plans to enter Kerala and Punjab through green-field organic expansion. Digital will also be far better to launch then to acquire. No acquisition opportunity in the space requiring expansion. Ad revenue grew 3% YoY; in-line Ad revenue grew 3% YoY to INR9.9b (in-line). Domestic ad growth (ex-sports, RBNL and IWPL) grew 6% YoY to INR9b. Exhibit 1: Ad revenue and YoY growth (INR b, %) 34.3 Advertising (INR b) YoY (%) QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 Source: Company, MOSL Subscription revenue down 14%; 5% beat 2QFY18 domestic subscription (ex-sports) grew 7% to INR4b. Domestic/International subscription declined 14%/16% YoY to INR4b/1b. 24 October

5 Exhibit 2: Subscription revenue trend (INR b) Domestic International QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 Source: Company, MOSL Exhibit 3: Trend in EBITDA and margins ex-sports (INR b) EBITDA (ex sports) (INR b) EBITDA margin (ex sports) (%) QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY Exhibit 4: Valuation based on average EPS for FY19and FY20E INR Average EPS for FY19E and FY20E 17.7 PE multiple (x) 35 Target Price 630 CMP 526 Upside (%) 20% Valuation and view Source: Company, MOSL ZEE continues to lead the industry in advertising growth. Recent strong ratings in Hindi GEC should further strengthen Zee s presence in this core segment, driving market share gains. Zee also has a strong subscription income base, and management has guided for mid-teens growth on the back of monetizing of digitization. We have revised down EPS estimates by ~10% for FY19/FY20 to factor in higher costs. Expect 19% EPS CAGR over FY17-20E. FY18E EPS is revised up by 15% to factor in one-time exceptional item in 2QFY18. We have assigned 35x P/E on Sept'19 adj.eps v/s 32x earlier, given Zee's steady improvement in viewership share and a strong recovery in the ad market, which should support ~20% EPS growth on a sustainable basis. Maintain our Buy rating and target price of INR630. Zee s healthy ROIC of over 40% accounting for cash should garner healthy valuations. 24 October

6 Exhibit 5: ZEE: P/E band Oct-07 P/E (x) Avg (x) Max (x) Min (x) 47.9 Jan-09 Apr-10 Jul-11 Oct-12 Jan Apr-15 Jul Oct-17 Source: MOSL, Company Exhibit 6: Quarterly performance (INR m) 2QFY17 1QFY18 2QFY18 YoY% QoQ% 2QFY18E v/s est (%) Advertising revenue 9,592 9,665 9, , Subscription revenue 5,833 4,791 5, , Other sales and services 1, , Total revenue 16,954 15,402 15, , Total operating expenses 12,062 10,559 10, , EBITDA 4,892 4,844 4, , EBITDA margin (%) bp -40bp bp Depreciation Finance Cost Other income 432 1,011 2, Fair Value through P&L PBT 4,074 4,864 6, , Exceptional item 0 0 1,346 NA NA 0 NA Reported PBT 4,074 4,864 7, , Tax 1,634 2,344 1, , Effective Tax Rate (%) ,642-2, bps PAT 2,439 2,520 5, , Associates/Minority Interest Reported PAT after minorities 2,383 2,516 5, , Advertisement revenue (INR m) Domestic 8,800 8,688 9, , International Total advertisement revenue 9,592 9,665 9, , Subscription revenue (INR m) Domestic 4,675 3,788 4, , International 1,158 1, Total subscription revenue 5,833 4,791 5, , Operating costs (INR m) Prog, Transmission & Direct Exp , , Staff Cost 1,533 1,669 1, , Selling and Other Exp 2,841 3,027 3, , Total operating costs 12,062 10,559 10, , Revenue segments (INR m) 2QFY17 1QFY18 2QFY18 YoY% QoQ% Sports 2, Non-Sports 14,829 15,201 15, Total 16,954 15,402 15, Source: Company, MOSL 24 October

7 Exhibit 7: Summary of estimate change (INR b) FY17 FY18E FY19E FY20E Total revenue Old New Change (%) EBITDA Old New Change (%) EBITDA margin (%) Old New Change (bp) PAT Old New Change (%) EPS (INR) Old New Change (%) Source: Company, MOSL Exhibit 8: Zee Entertainment: A Snapshot (INR b) FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E Advertisement Revenue YoY (%) Subscription Revenue YoY (%) Domestic YoY (%) International YoY (%) Other Sales & Services YoY (%) Total Revenue YoY (%) Operating expenses YoY (%) EBITDA YoY (%) EBITDA margin (%) Revenue mix (%) Ad and broadcast revenue Subscription revenue Domestic International Other sales and services Sports/Non-sports break-up Revenue Sports Non-sports EBITDA Sports Non-sports EBITDA margin (%) Sports Non-sports Source: Company, MOSL 24 October

8 Financials and Valuations Consolidated - Income Statement (INR m) Y/E March FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E Total Income from Operations 30,406 36,997 44,217 48,837 58,125 64,342 64,556 74,659 85,490 Change (%) Programming/Production expenses 11,387 13,962 17,056 20,135 24,658 26,295 23,000 26,327 29,950 Employees Cost 2,925 3,491 3,905 4,498 4,986 6,043 6,950 7,905 9,091 Other Expenses 8,698 9,999 11,214 11,666 13,345 12,735 14,254 16,082 17,925 Total Expenditure 23,010 27,452 32,175 36,299 42,989 45,073 44,204 50,314 56,966 % of Sales EBITDA 7,396 9,545 12,042 12,538 15,136 19,269 20,352 24,345 28,524 Margin (%) Depreciation ,152 1,439 1,562 1,732 EBIT 7,073 9,146 11,541 11,865 14,359 18,117 18,912 22,783 26,792 Int. and Finance Charges ,598 1,372 1,377 1, Other Income 1,384 1,461 1,807 2,278 1,951 2,240 4,013 3,650 4,111 Fair Value through P&L gain/(loss) , PBT bef. EO Exp. 8,407 10,521 13,191 14,040 14,039 16,780 20,869 25,331 30,077 EO Items ,234 1, PBT after EO Exp. 8,407 10,521 13,191 14,040 13,708 29,014 22,215 25,331 30,077 Total Tax 2,500 3,337 4,291 4,284 5,491 6,805 7,775 8,866 10,527 Tax Rate (%) Minority Interest/Associate Reported PAT 5,892 7,198 8,921 9,776 8,231 22,217 14,451 16,465 19,550 Adjusted PAT 5,892 7,198 8,921 9,776 8,429 12,852 11,416 16,465 19,550 Change (%) Margin (%) Consolidated - Balance Sheet (INR m) Y/E March FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E Equity Share Capital Preference Capital ,170 20,192 17,140 19,077 15,262 11,446 7,631 Total Reserves 33,349 38,161 26,247 34,346 47,079 65,608 77,178 90,186 1,06,278 Net Worth 34,354 39,115 47,377 55,498 65,179 85,645 93,400 1,02,592 1,14,869 Minority Interest Total Loans Deferred Tax Liabilities Capital Employed 34,006 38,888 47,169 54,993 64,573 84,772 92,521 1,01,714 1,13,990 Gross Block 4,311 5,179 5,921 6,415 9,221 11,181 12,808 14,358 15,768 Less: Accum. Deprn. 2,006 2,400 2,813 2,925 3,792 4,542 5,903 7,465 9,198 Net Fixed Assets 2,305 2,779 3,108 3,490 5,429 6,639 6,904 6,893 6,571 Goodwill on Consolidation 6,894 7,127 7,625 7,886 8,843 2,676 2,676 2,676 2,676 Capital WIP ,104 1,558 1,558 1,558 1,558 Total Investments 8,492 8,435 12,597 14,579 10,501 13,433 13,431 13,431 13,431 Curr. Assets, Loans&Adv. 24,925 32,045 35,692 42,694 53,135 75,160 81,854 92,891 1,07,402 Inventory 7,339 8,745 11,736 11,878 13,180 16,844 14,956 17,071 19,377 Account Receivables 8,660 9,890 10,281 10,692 13,482 13,059 13,088 15,136 17,332 Cash and Bank Balance 3,283 5,316 5,644 7,365 9,631 26,133 36,180 41,234 49,367 Loans and Advances 5,643 8,094 8,031 12,759 16,842 19,124 17,631 19,449 21,326 Curr. Liability & Prov. 8,811 11,567 12,850 14,534 14,439 14,694 13,902 15,735 17,647 Account Payables 3,872 5,172 5,050 4,204 4,768 4,891 4,610 5,248 5,924 Other Current Liabilities 3,006 3,608 4,154 5,258 9,060 8,947 8,457 9,628 10,869 Provisions 1,933 2,787 3,646 5, Net Current Assets 16,114 20,478 22,842 28,160 38,696 60,467 67,952 77,156 89,755 Appl. of Funds 34,006 38,888 47,169 54,993 64,573 84,772 92,521 1,01,714 1,13,990 E: MOSL Estimates 24 October

9 Financials and Valuations Ratios Y/E March FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E Basic (INR) Adj. EPS Adj. Cash EPS BV/Share DPS Payout (%) Valuation (x) Adj. P/E Adj. Cash P/E P/BV EV/Sales EV/EBITDA Dividend Yield (%) Return Ratios (%) RoE RoCE RoIC Working Capital Ratios Asset Turnover (x) Inventory (Days) Debtor (Days) Creditor (Days) Leverage Ratio (x) Net Debt/Equity Consolidated - Cash Flow Statement (INR m) Y/E March FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E OP/(Loss) before Tax 8,406 10,519 13,191 14,040 14,040 16,780 22,215 25,331 30,077 Depreciation ,152 1,439 1,562 1,732 Interest & Finance Charges ,377 1, Direct Taxes Paid -3,025-3,669-4,242-4,164-5,827-6,810-7,775-8,866-10,527 (Inc)/Dec in WC -1,621-2,348-4,904-2,236-2,497-5,670 2,561-4,149-4,467 CF from Operations 4,093 4,931 4,622 8,335 6,521 5,525 19,816 14,980 17,642 Others -6-1, , ,165-4,001-3,650-4,111 CF from Operating incl EO 4,087 3,863 3,829 6,809 7,309 6,690 15,815 11,330 13,531 (Inc)/Dec in FA ,465-1,091-2,716-2,704-1,705-1,551-1,410 Free Cash Flow 3,290 3,154 2,364 5,718 4,593 3,986 14,110 9,780 12,121 (Pur)/Sale of Investments -1, , Others 1, ,524 20,664 5,030 4,667 5,128 CF from Investments ,047-1,649 1,197 14,985 3,327 3,116 3,718 Issue of Equity / Pref Shares -2, ,821-3,815-3,815 Inc/(Dec) in Debt , Interest Paid ,377-1, Dividend Paid -2,273-1,663-2,244-2,348-4,051-4,065-2,881-3,457-3,457 Others CF from Fin. Activity -4,488-2,287-1,444-3,427-4,046-4,138-8,078-8,375-8,100 Inc/Dec of Cash , ,733 4,460 17,537 11,064 6,072 9,149 Opening Balance 3,848 3,274 5,306 5,632 5,171 8,596 25,116 35,163 40,217 Closing Balance 3,283 5,316 5,644 7,365 9,631 26,133 36,180 41,234 49, October

10 Corporate profile Company description ZEEL is the leading player in television broadcasting and syndication of content overseas with a bouquet of 40 TV channels. Zee has well-established reach of over 730m+ viewers across 169 countries. ZEEL has channels encompassing all major genres like Hindi GEC, Hindi Movies, Regional GECs and Sports. Exhibit 1: Sensex rebased Source: MOSL/Bloomberg Exhibit 2: Shareholding pattern (%) Sep-17 Jun-17 Sep-16 Promoter DII FII Others Note: FII Includes depository receipts Source: Capitaline Exhibit 3: Top holders Holder Name % Holding Oppenheimer Developing Markets Fund 6.8 Vanguard international Growth Fund 1.6 Government of Singapore 1.3 Vanguard Emerging Markets Stock Index Fund, A Series Of Vanguard International Equity Index Fund 1.0 NA 0.0 Source: Capitaline Exhibit 4: Top management Name Designation Exhibit 5: Directors Name Name Subhash Chandra Chairman Ashok Kurien Manish Chokhani Punit Goenka Managing Director & CEO Neharika Vohra Sunil Sharma M Lakshminarayanan Executive VP & CS Subodh Kumar Adesh Kumar Gupta Source: Capitaline *Independent Exhibit 6: Auditors Name MGB & Co LLP Statutory Type Source: Capitaline Exhibit 7: MOSL forecast v/s consensus EPS (INR) MOSL forecast Consensus forecast Variation (%) FY FY FY Source: Bloomberg 24 October

11 N O T E S 24 October

12 Disclosures: The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations). Zee Entertainment 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. 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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 24 October