CMP: INR2,798 TP: INR3,044 (+9%) Buy Capitalizing on multiple opportunities

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1 BSE SENSEX S&P CNX 30,435 9, May 2017 Update Sector: Financials Piramal Enterprises CMP: INR2,798 TP: INR3,044 (+9%) Buy Capitalizing on multiple opportunities NBFC and Pharma are key value drivers Our Initiating coverage report on Piramal Enterprises Stock Info Bloomberg PIEL IN Equity Shares (m) Week Range (INR) 2942 / , 6, 12 Rel. Per (%) 20/77/81 M.Cap. (INR b) M.Cap. (USD b) 7.5 Avg Val, INRm 291 Free float (%) 48.6 Financials Snapshot (INR b) Y/E March E 2019E Revenues EBITDA PAT EPS (INR) EPS Gr. (%) BV/Sh. (INR) Payout (%) Valuations P/E (x) P/BV (x) Div. Yield (%) Shareholding pattern (%) As On Mar-17 Dec-16 Mar-16 Promoter DII FII Others Piramal Enterprises (PIEL) has carved a niche for itself in wholesale lending, and is now one of the dominant players in most of the segments in which it operates. In the lending business, the company has one of the lowest GNPAs and the highest profitability. Post the initial years of lower-tenure loan book, PIEL is moving toward secured and higher-tenure products, which provides support to growth. We expect a 40% loan CAGR in the NBFC business. The Pharma business has demonstrated strong growth and improvement in profitability in recent years. With its focus on building a portfolio via inorganic acquisitions and the impending closure of the imaging business, we expect a sharp improvement in profitability. Over last five years, the stock has delivered 44% CAGR returns, and since our initiation three months ago (Initiation report), it has run up 54%. Led by strong macro tailwinds and healthy profitability, we raise the target multiple for financial services to 3.6x from 2.7x (in line with peers). Our revised SOTP is INR3,044. Our target price does not factor in the proposed capital raise of INR50b (~10% dilution), which, in our view, would be largely utilized for the financial services business. Product diversification key to its success story in NBFC space Since its foray into the financial services business in FY12, PIEL has exhibited a loan book CAGR of over 100%, mainly driven by its focus on catering to all the needs of developers right from equity capital for land purchase to last mile inventory funding. The company has significantly expanded its product suite over the years, with new products such as construction finance and LRD contributing to incremental loan growth. We believe this has been the key to Piramal s success story, as product diversification reduces dependence on any single product for growth and mitigates asset quality risks. Pharma business on a turnaround path We expect Pharma revenue CAGR of ~20% till FY20, driven by (1) recent acquisitions (leading to an increase in the addressable market size to USD20b in FY18 from USD1b in FY16), (2) expansion into new areas and ADC manufacturing capacity and (3) capacity expansion at other facilities. The global pharma business (90% of revenue) enjoys a strong operating margin of 20%+, but the domestic business has a low-single-digit margin. Imaging business, which was a drag on profitability, is likely to wind down by CY17, driving overall margins higher. We expect a strong turnaround in this business, with the EBITDA margin expanding to ~20.5% by FY19 (up ~600bp v/s FY17) and a revenue CAGR of 20%. FII Includes depository receipts Alpesh Mehta (Alpesh.Mehta@MotilalOswal.com); / Kumar Saurabh Piran Engineer (Piran.Engineer@MotilalOswal.com); / Ashish Chopra (Ashish.Chopra@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 Stock Performance (1-year) Proposed capital raise to drive strong growth in financial services business PIEL is planning to raise up to INR50b (~10% dilution), which, in our view, would support strong growth in the financial services business. The Pharma and IT businesses are sufficiently capitalized, with a debt to equity ratio of ~1x (our estimate). Our back-of-the-envelope calculations suggest that NBFC leverage in this business is 5x+. Considering the wholesale nature of the business, we believe peak leverage could be 6-7x. We have not factored in the capital raise, but, if accounted for, our consolidated BV for FY18/19 would be ~INR1,040/1,150 v/s our estimate of INR850/960 (under Indian GAAP). Reiterate Buy; strong foundation for robust growth PIEL has the distinction of being one of the few companies in India to generate 25%+ book value CAGR over past 25+ years. Post the sale of the domestic formulations business, management chose to invest and compound the money, rather than distributing it to shareholders. We believe the company has the DNA to incubate and grow businesses in niche segments. Significant proportion of capital (INR45.3b in Shriram Group + INR4b seed investment in PE business + INR40b in Pharma and IT) generates less than 5% RoE, but could create significant value over the longer term. Best talent, coupled with stringent underwriting, has enabled PIEL to build a fast-growing, highly profitable franchise with robust asset quality. The planned capital infusion (up to INR50b) will provide the much-needed ammunition to continue on the robust growth path. We use SOTP to arrive at a target price of INR3,044. Buy. Exhibit 1: PIEL: SOTP - March 2019 (without factoring in the proposed capital raise of up to ~INR50b) Value (INR B) Value (USD B) INR per share % To Total Rationale NBFC business , x PBV; ROA/ROE of ~4%/25%+ - Loan CAGR of 40% FY17-20 Shriram Investments Based on our Target Multiple; Implied 1.8x of invested capital AMC % AUM Pharma, IT and Others Pharma EV/EBITDA 14x; IT EV/Sales of 4x Target Value , Implied 3.2x Consolidated BV Current market cap ,798 Upside (%) Source: Company, MOSL Exhibit 2: PIEL: SOTP - March 2020 (without factoring in the proposed capital raise of up to ~INR50b) Value (INR B) Value (USD B) INR per share % To Total Rationale NBFC business , x PBV; ROA/ROE of ~4%/~25%+ - Loan CAGR of 40% FY17-20 Shriram Investments Based on our Target Multiple; Implied 1.8x of invested capital AMC % AUM Pharma, IT and Others , Pharma EV/EBITDA 14x; IT EV/Sales of 4x Target Value , Implied 3.5x Consolidated BV Current market cap ,798 Upside (%) Source: Company, MOSL 18 May

3 Upping the ante in wholesale lending Second largest real estate financier in the country PIEL has grown from strength to strength to become the second largest real estate lender in India, barely five years since its foray into the financial services business. It is now a formidable player in this segment, with a clientele of ~100 top-tier developers. This strong growth has been driven by its focus on catering to the needs of developers across the entire lifecycle from land purchase to last mile inventory funding. PIEL has an unparalleled suite of products, ranging from pure equity to senior lending. Despite strong growth over past five years, asset quality has remained best-in-class, with GNPLs consistently less than 1%. The company follows prudent standard asset provisioning of 2% of loans. Backed by higher margins, a low cost-to-income ratio and negligible credit cost, the business has exhibited a healthy RoA (pre-tax) of 5-6% and an RoE of 25%+. With the addition of low-yielding and higher-duration products, we expect a healthy CAGR of 40%. While new products are low-yielding, the benefit of capital raise (INR50b) would keep RoAs largely stable. RoE, however, is expected to fall from 25%+ to ~18% due to large capital infusion in this business. PIEL is now among the top 3 real estate financiers in India, with a loan book of INR214b Significant scale in financial services business In a span of only five years, PIEL has evolved to become one of the largest real estate financiers in India, with a loan book of over INR200b+ (100%+ five-year CAGR). The company s clientele includes tier-i developers in the top six metro locations. Unlike most of its competitors which are engaged purely in construction finance, PIEL offers a large suite of products across the entire real estate financing spectrum. It has positioned itself as a one-stop shop for all capital needs of developers from preferred equity to senior debt. The company has expanded its product suite over the years, with new products such as construction finance contributing the most to incremental loan growth. We believe this has been the key to Piramal's success story product diversification reduces dependence on any single product for growth and also mitigates asset quality risks. Exhibit 3: Loan book trend (INR b) (incl. special situations) Exhibit 4: Break-up of loan book as of FY Special Situations, 12% Others, 38% FY12 FY13 FY14 FY15 FY16 FY17 Constructio n Finance, 50% ; Note: Others include equity and mezzanine debt offerings 18 May

4 Exhibit 5: Loan book trend (INR b) Exhibit 6: Alternative asset management AUM (INR b) 4 43 Real estate lending SFG lending QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 Exhibit 7: Comparison of corporate loan portfolio with peers (INR b) HDFC PEL IHFL DHFL PNBHF Exhibit 8: PIEL caters to end-to-end capital needs of developers Particulars Private Equity Mezzanine Lending Construction Finance LRD Housing Finance Stages of lending for a project Primarily for land purchase Current Size Off Balance Sheet (Third Party Funds with PEL sponsor commitment upto 7.5%) Year of commencement Started in 2006; acquired by PEL in 2011 Post land purchase For construction of till projects commencement of construction (Phase of obtaining approvals) Lease rental discounting for commercial projects On Balance Sheet On Balance Sheet On Balance Sheet Current Size INR62b INR79b INR122b INR12b Average Yield / IRR 20-24% 17-19% 14-16% 11-12% Tenor 4-6 years 3-5 years 4-6 years 9-12 years Applied for HFC license in Awaiting approval from NHB. 18 May

5 Exhibit 9: Financial services business snapshot FINANCIAL SERVICES LENDING (INR244b) ALTERNATIVE AUM (INR72b) INVESTMENT IN SHRIRAM (INR46b) HOUSING FINANCE (INR10b*) REAL ESTATE (INR213b) STRUCTURED FINANCE (INR30b) MEZZANINE (INR 79b) CONSTRUCTION FINANCE (INR122b) LRD (INR 12b) MEZZANINE SENIOR (INR 14b) RESIDENTIAL (INR103b) COMMERCIAL (INR19b) ACQUISITION FUNDING LAS ; *INR10b committed to the retail housing finance business PIEL now caters to the capital needs of businesses across various sectors PIEL has successfully scaled up its commercial construction finance business over the past year From a pure residential RE financier to a diversified wholesale lender In FY12, PIEL acquired teams from leading financial services companies to run its NBFC business. It forayed into special-situation investing/lending (mezzanine financing) in This product has high yield, low tenure (18-24 months) and higher risk. Leveraging on its relationships, PIEL started with construction finance from January 2015 (low risk, but high maturity period of 4-5 years). The company forayed into commercial real estate financing in January Construction finance and lease rental discounting (7-10 year tenure - recently added) are the key products. It has recently launched a flexible LRD product for completed commercial real estate projects. Management is bullish on the prospects of LRD, expecting this book to grow to INR100b by end-fy18. By March 2018, we expect PIEL to have a strong diversified residential and commercial RE loan book. The company is looking at portfolios of other NBFCs to make inroads into strong projects and better developers. PIEL intends to do more business with existing clients rather than acquiring new clients. It is capitalizing on the opportunities available around existing relationships (e.g. refinancing, construction finance). Recently, the special investment group merged with the RE financing division. With this, PIEL is looking at wholesale lending across sectors. Construction finance and LRD driving incremental growth From a business model perspective, PIEL s loans used to get refinanced by banks (due to lower cost) post completion of certain milestones. However, by introducing construction finance, PIEL is able to retain relationships with developers till the end of the project lifecycle. With strong disbursements in construction finance over past two years, this segment now accounts for 56% of the outstanding real estate loan book. While earlier the company was involved only in residential construction finance, it has started with commercial construction finance a year ago. This book now stands at INR19b. 18 May

6 PIEL introduced its LRD product in FY17, which has scaled up well with the total loan book at INR12b. Both construction finance and LRD are lower-yielding products than other forms of wholesale lending (structured debt). Yields in construction finance range from 14-16%, while those in LRD are ~11-12%. Sector-agnostic lending in the SFG segment led to 100% YoY growth in the loan book Scaling up the structured finance group business Along with wholesale financing for real estate developers, PIEL offers financing for special situations (Structured Investment Group recently merged with PIEL) promoter financing, bridge funding for cash flow mismatches and financing for regulatory arbitrage opportunities. While the focus earlier was on opportunities in infrastructure, the company is now following a sector-agnostic lending mantra. It has exposure across the infrastructure, cement, renewables, transportation and entertainment sectors. PIEL used to do mezzanine financing earlier; however, it now also does senior lending, LAS and promoter funding. The senior lending book now accounts for 47% of the total SFG portfolio, leading to a better risk profile. Total loan book doubled in FY17 to INR30b. The business has healthy security and cash cover of 1.5-2x. Yields range from 13% to 20%, depending on product offerings and sector dynamics. Exhibit 10: Best-in-class financial metrics (%) FY16 FY17 Loan Yield 17% 16% C/I ratio 7% 9.7% GNPA 0.9% 0.4% RoA 7% 5.3% RoE 25% 25%+ Leverage 3.5x 5.0x We expect the loan book to grow at 40%+ CAGR over the next three years to INR690b Given the lack of availability of capital for real estate projects, multitude of opportunities in other sectors for stressed asset financing and the introduction of retail housing finance, we expect the loan book to continue growing at a rapid pace over the medium term. We believe growth will also be driven by its focus on catering to tier-i developers in non-metro cities. We expect the total loan book to reach INR690b+ by FY20, with further upside potential from fast ramp-up of the housing finance business and better-than-expected impact/benefit of RERA on tier I developers. Exhibit 11: Strong AUM growth expected over medium term Loan book (INRb) Growth (%) FY14 FY15 FY16 FY17E FY18E FY19E FY20E FY21E ; Note: Strong growth in FY16 due to introduction of construction finance 18 May

7 Partnering with the best Forging alliances with several reputed global firms for various opportunities The strength of PIEL s robust business model is evidenced by its partnerships with global firms of repute. The alliances cater to a variety of segments, including infrastructure, real estate and distressed situations. In February, the company partnered with Ivanhoe Cambridge for providing finance to the residential real estate segment. Finding opportunities for shareholder value creation Partnerships across the spectrum Special situations: PIEL has a strategic alliance with APG for mezzanine lending in special situations in the infrastructure segment. Both entities have committed to USD375m under this alliance. Total outstanding disbursements under this fund are INR9.7b (for each entity) as of March Real estate financing: The company entered into a joint venture with CPPIB in FY14 to provide INR debt financing to residential projects in urban geographies. It also entered into an alliance with Ivanhoe Cambridge in February 2017 for providing equity financing to tier-i residential developers across the top five metros in India. Distressed asset investing: PIEL has recently partnered with Bain Capital Credit to make debt/equity investments in restructuring/distressed situations (barring real estate) in India. Each party has committed to an initial contribution of USD200m. Investments are expected to generate an IRR of 16-18% over a period of 4-5 years. PIEL has made several key hires for this JV. 18 May

8 Entering retail financing via organic and inorganic ways HFC subsidiary and Shriram Group investments to be the key value drivers Over , PIEL forayed into the retail financing segment by acquiring a 10% stake each in Shriram Transport Finance and Shriram City Union Finance. In addition, it acquired a 20% stake in Shriram Capital. We do not expect the merger of both entities with the parent in the near term, as it would involve significant management attention. In both, retail as well as the wholesale lending business, growth opportunities are immense. PIEL has also applied for an HFC license with the NHB. It has committed INR10b to the HFC, and has also made key hires in this segment. Build-out of the systems and technology is underway. PIEL acquired 10% stake in SHTF in 2013, followed by 20% stake in Shriram Capital and 10% stake in SCUF Shriram Group stakes indirect entry into retail financing PIEL has been the quintessential M&S specialist. It prefers the M&A route to build long-gestation businesses. The company forayed into the retail financing business by acquiring stakes in Shriram Group companies. It has acquired 10% each in Shriram Transport (for INR16.4b in 2013) and Shriram City Union Finance (for INR8b in 2014). PIEL also acquired a 20% stake in these two companies parent, Shriram Capital (for INR21.5b in 2014). Altogether, it has invested INR45.8b (34% of net worth) in these companies. Shriram Transport (SHTF), Shriram Group s flagship company, is involved in commercial vehicle financing. It is the only organized player that offers old vehicle (8-10 years vintage) financing. With a turnaround in the CV industry, SHTF is well poised for growth over the medium term. SHTF s return ratios are just off cyclical lows, with decadal high credit cost and NPLs. We believe the worst of asset quality troubles is behind, and the company should witness improving return ratios due to lower credit costs. Additionally, we believe margin compression fears are overplayed with the company yet to reap significant benefit on CoF. SHTF and SCUF are at inflection points, where return ratios are expected to improve due to lower credit costs Shriram City Union (SCUF) is a multi-line financier dealing in SME, two-wheeler and gold loans. It offers SME loans with ticket sizes lower than its peers. It does not rely on DSAs for customer acquisition, but rather mines the large customer base of Shriram Chits. SCUF is a pioneer in 2W financing, and is one of the largest in the country in this space. It is a niche play in the retail NBFC space, with high growth potential, strong profitability and low competition. While the company has maintained GNPL (180dpd) <4.0% over the cycle, we expect it to rise to ~8% by FY19 on account of migration to 90dpd and some lingering impact of demonetization. Yet, loan loss provisioning is expected to decline as SCUF has best-in-class PCR of 73%, more than peers. We believe this is a %+ RoA business on a run-rate basis. After all the impact of NPA migration is over, we expect RoA/RoE of 3.9%/17.8% in FY May

9 Exhibit 12: SHTF AUM trend AUM (INR b) Growth (%) Exhibit 13: SHTF return ratios bottoming out RoA (%) RoE (%) ,003 1,146 FY13 FY14 FY15 FY16 FY17E FY18E FY19E FY20E FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E Exhibit 14: SCUF AUM trend AUM (INR b) Growth (%) (7) Exhibit 15: SCUF return ratios bottoming out RoE (%) RoA (%) FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E HFC license another avenue for sustainable growth PIEL has applied for an HFC license with the NHB and is awaiting approval for the same. The company has made key hires in this segment, and already chalked out the business strategy with work on systems and technology underway. We expect the company to receive the HFC license shortly. Given the strong execution skills of management, we believe this book could grow to a sizeable amount over next five years. While margins in this segment will be lower, credit costs will also be lower and leverage will be higher. We believe PIEL could deliver 15%+ sustainable RoE in this business post the initial scale-up. 18 May

10 Financials and valuations NBFC INCOME STATEMENT (INR Million) Y/E MARCH E 2018E 2019E 2020E Interest Income 7,426 14,766 29,958 47,275 63,684 84,290 Interest Expense 505 5,857 13,183 21,259 30,126 41,769 Net interest income 6,921 8,909 16,775 26,016 33,558 42,521 Change (%) AMC Fees 1,201 1,287 1,204 1,155 1,328 1,527 Fee income ,872 3,050 4,392 6,021 Other income Net Income 8,866 11,540 20,332 30,858 40,067 51,001 Change (%) Operating Expenses 1,819 1,655 1,972 2,469 3,205 4,080 Change (%) Operating Profits 7,047 9,885 18,360 28,389 36,861 46,921 Change (%) Total Provisions 473 1,700 4,119 6,100 8,784 12,041 % to operating income PBT 6,575 8,185 14,241 22,289 28,077 34,879 Tax 2,301 2,865 4,984 7,801 9,827 12,208 Tax Rate (%) PAT 4,274 5,320 9,256 14,488 18,250 22,672 Change (%) BALANCE SHEET Y/E MARCH E 2018E 2019E 2020E Networth 28,886 34,206 43,119 57,607 75,857 98,529 Borrowings 28, , , , , ,860 Change (%) Other liabilities ,593 13,813 22,526 Change (%) Total Liabilities 57, , , , , ,914 Customer assets 47, , , , , ,740 Change (%) Other assets 9,398 11,813 36,627 36,600 51,240 69,174 Change (%) Total Assets 57, , , , , ,914 RATIOS Y/E MARCH E 2018E 2019E 2020E Spreads Analysis (%) Avg. Yield on loans Avg. Cost of funds Interest Spreads Net Interest Margins Profitability Ratios (%) RoE RoA Cost to Income Ratio May

11 Healthcare: Rebuilding a niche franchise Following the sale of its domestic formulations business to Abbott in FY11, Piramal Enterprises (PIEL) has re-built its healthcare business. Over last five years, the company recorded healthcare revenue CAGR of high-teens, reaching INR39.7b in FY17 (~46% of total revenue). PIEL s pharma revenue grew 14% YoY in FY17, led by new product acquisitions (from Janssen and Mallinckrodt) and >25% organic growth in its Indian consumer business. In 4QFY17, the pharma business revenue grew ~29% YoY, driven by a strong order book and acquisition of niche products. EBITDA margin for the global pharma business has more than doubled over last five years, from 10% in FY12 to ~20% in FY17, primarily driven by the focus on highmargin niche branded generic product portfolios and cost efficiencies. We expect robust pharma revenue CAGR of ~20% till FY20, driven by (1) recent acquisitions (leading to an increase in the addressable market size to USD20b in FY18 from USD1b in FY16), (2) expansion into new areas and ADC manufacturing capacity and (3) debottlenecking/capacity expansion at other facilities. Global pharma business (90% of revenues) enjoys a strong operating margin of more than 20%; however, the domestic business has a margin of low-single-digits. Imaging business, which was a key drag on profitability, is likely to wind down by CY17, driving overall margins higher. Overall, we expect a strong turnaround in this business, with the EBITDA margin expanding to ~20.5% by FY19 (~600bp improvement v/s FY17), with revenue CAGR of 20%. 18 May

12 Piramal Healthcare Rebuilding a niche franchise Healthcare 2.0 Following the sale of its domestic formulations business to Abbott in FY11, PIEL has re-built its healthcare business. Over last five years, the company recorded healthcare revenue CAGR of 17%, reaching INR39.7b in FY17 (~46% of total revenue). PIEL operates under two broad divisions in the healthcare segment: (1) global pharma (constituting pharma solutions & critical care; ~90% of pharma revenues) and (2) consumer products (~10%). Exhibit 16: Healthcare business revenue (INR b) Healthcare (INR b) Exhibit 17: Healthcare business revenue composition (%) Global Pharma Domestic Products 10 FY12 FY13 FY14 FY15 FY16 FY17E FY18E FY19E 90 PIEL is one of the few large integrated CDMOs in the world, offering both APIs and formulations PIEL is one of the few large integrated contract development and manufacturing organizations (CDMOs) in the world, offering both APIs and formulations through its 11 sites across North America, Europe and India. We expect this business to deliver robust mid-teens growth over next three years, driven by (1) ramp-up of injectables business, (2) expansion into new areas, including high-potency APIs, (3) expansion of ADC manufacturing capacity and (4) debottlenecking/capacity expansion at other facilities. PIEL is the third largest player in the global inhalation anesthesia space (after Abbott and Baxter). It has a 12% market share in this space, which has increased from ~3% in FY09, led by a strong product portfolio, competitive pricing, consistent supply of products and a robust distribution network. Launch of Desflurane, cost reduction and entry into new markets should help the company achieve 17-18% CAGR over next three years. PIEL is actively looking at both organic and inorganic opportunities to add other critical-care products to its portfolio. The company has expanded its OTC product portfolio, now featuring among the top- 7 players in this space. Notably, it has done well to climb up the ladder from 40 th rank in PIEL has expanded its distribution reach to 1,500 towns (~480 in FY15), with a field force of ~2,000 (~800 in FY15). We expect margin in this business to expand (achieved breakeven in FY16), led by positive operating leverage (distribution expansion largely done) and sales force automation (to facilitate efficient productivity). 18 May

13 We expect EBITDA margin of global pharma business (Ex India) to jump to ~21% v/s ~16% in FY16. Invested ~INR30b toward seven acquisitions in pharma Over last two years, PIEL has invested heavily in the pharma business. It has spent ~INR30b to acquire seven assets across geographies in different areas of the business. It acquired two pharma businesses Coldstream into injectables and Ash Stevens into high-potency API. Both of these are in the US. Two pharma product portfolios containing differentiated branded generic products were acquired from Janssen, and the latest one was acquired from Mallinckrodt. In the consumer products portfolio in India, it acquired four brands from Pfizer, five brands from Organon India and MSD, and the baby-care brand Little s. Because of these acquisitions, pro forma revenue for FY16 would go up to INR43b from ~INR39b currently. Similarly, EBITDA margin of global pharma business (Ex India) will jump to ~21% v/s ~16% in FY16. Exhibit 18: Invested ~INR30b to do seven acquisitions in pharma Exhibit 19: Pro forma revenue increase led by seven acquisitions (INR b) Exhibit 20: Pro forma EBITDA margin expansion led by seven acquisitions 9% 10% 11% 12% 17% 16% 20% 21% FY11 FY12 FY13 FY14 FY15 FY16 FY17 Proforma FY16 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Proforma FY16 18 May

14 We expect the Global Pharma business to deliver 20% CAGR till FY20, led by acquisitions, launch of Desflurane and ramp-up of the CRAMs business Global pharma business adding niche capabilities The company s global pharma business recorded a 15% CAGR over last five years. We expect this business to deliver 20% CAGR till FY20, led by its recent acquisitions, launch of Desflurane and ramp-up of the CRAMs business. Exhibit 21: Global pharma the largest segment within healthcare (90% of FY17 revenue) Pharma Solutions (INR mn) 21,690 25,060 27,645 32,060 35,170 45,721 51,436 57,866 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E PIEL has end-to-end manufacturing and service delivery capabilities both for APIs and formulations, including niche capabilities in injectables, high-potency API, antibody drug conjugates, inhalation anesthesia, etc. It also has a large global distribution network, reaching over 100 countries through dedicated sales force/distributors with a strong presence in key geographies of North America, Europe, India and Japan. Exhibit 22: Global pharma adding capabilities in niche areas Product Portfolio Inhalation Anaesthesia Injectable Anaesthesia / Pain Management Intrathecal Severe Spasticity / Pain Management Other Products Desflurane Sublimaze* Gablofen API Generics Isoflurane Sufenta* Products under development Vitamins Sevoflurane Halothane To be launched in FY17-18 Repifen* Dipidolor* Hypnomidate* Announced acquisition from Mallinckrodt LLC in Jan 2017 Acquired from Janssen Pharmaceutica in Oct 2016 Differentiated branded hospital generics * Controlled substances 18 May

15 Niche capabilities across product segments Grangemouth (ADC): PIEL has a facility in Grangemouth (Scotland) for antibody drug conjugates (ADC a delivery system where the drug attaches itself to dead cancer cells and then bursts, thereby minimizing toxicity). It acquired this facility 5-6 years ago. Coldstream Laboratories (sterile injectables): In FY15, PIEL acquired US-based Coldstream Laboratories, a specialty pharmaceutical CDMO focused on the development and manufacture of sterile injectable products. This acquisition has strengthened its position in the injectables market, complementing its sterile injectables development capability at Mumbai. There is significant traction at Coldstream, with its order book running full. To cater to commercial demand from existing and new projects, it is implementing a USD12m capacity expansion project. Ash Stevens: PIEL is set to acquire US-based full-service CDMO, Ash Stevens. It develops and manufactures high-potency active pharmaceutical ingredients (HPAPIs). This is one of the fastest growing segments in the pharmaceuticals sector, and over 50% of the HPAPIs are anti-cancer drugs. NCE: The company has scaled back NCE R&D, and is now looking to divest these assets to suitable buyers. All assets are in phase-1 trials. 18 May

16 Key business drivers in global pharma business New product launch, JV with NavinFluorine and strong hospital network to drive global pharma business PIEL s consumer product business is the seventh largest among all OTC companies in India Desflurane launch in the US (USD200m market): PIEL is expected to launch its next-generation product, Desflurane, in the US in CY17. Currently, there is no generic substitute for this product in the US. Besides the launch of the first generic Desflurane in the US and other key geographies, growth would also be driven by the increasing share in the inhalation anesthesia market and the launch of existing products in new geographies. JV with NavinFluorine: PIEL would be collaborating with NavinFluorine to manufacture APIs in India, which would further lower manufacturing costs (procurement savings). It would be able to gain market share within the global inhalation anesthesia market by further lowering its selling prices. Leveraging strong hospital network: PIEL would be expanding its portfolio beyond inhalation anesthetics to injectable anesthetics, pain management, and other hospital and veterinary injectable products used in critical care. This would enable it to push products to hospitals where its sales force has relationships, and thus achieve higher sales and profitability. Ramp-up of acquired products from Janssen and Mallinckrodt: PIEL acquired five injectable anesthesia/pain management products from Janssen in October Four of these five products are controlled substances, and will remain limited competition products. PIEL has marketing authorization in >50 countries for these products. PIEL also acquired Gablofen, and two pain management products from Mallinckrodt. Consumer business Strong brand portfolio PIEL s consumer product business is the seventh largest among all OTC companies in India. It has a good portfolio of high-ranked brands Saridon (analgesic), Lacto Calamine (skincare), i-pill (oral contraceptive), Polycrol (antacid), Tetmosol (dermatology) and Jungle Magic. PIEL intends to be either number 1 or 2 in each category where it operates. As at end-fy16, six of PIEL s 11 brands featured among the top-100 Indian OTC brands. Exhibit 23: Consumer products PIEL targets INR10b revenue in 2020 (incl. Allergan sales) 2,720 3,140 3,565 2,799 3,750 4,500 5,625 7,031 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E Note: Consumer business excludes JV sales from Allergan ~INR1.6b in FY17 18 May

17 Exhibit 24: Consumer products portfolio Key business drivers Accrual of operating leverage benefits to boost profitability: PIEL has made the necessary investments in terms of ramping up its distribution network and expanding its field force. These investments appear to be yielding results. The business achieved EBITDA breakeven in FY16. Profitability (return ratios) could improve further if the company is able to leverage the investments made in distribution over past few years and sweat its resources efficiently by enhancing its product basket. Brand acquisitions: The company s non-compete agreement with Abbot expires in Until then, it cannot enter the domestic prescription (Rx) market. Its medium-term strategy is to drive growth through acquisition of Rx brands that have strong legacy and brand recall, and re-launch them as OTC products. The typical acquisition cost paid by the company is ~3x sales. Another strategy PIEL employs is to acquire strong regional brands and expand reach pan-india, leveraging its strong distribution network. Some of its recent acquisitions are: Baby-care brand Little s: In November 2015, PIEL acquired the baby-care brand, Little s. The Little s range, which includes products across the nonfood baby-care category, is preferred by mothers of babies in the age group of 0-4 years. The company already caters to children in the age group of 5-10 years through its in-house Jungle Magic brand. With this acquisition, it now has offerings for babies/children in the age group of 0-10 years. Five brands in gastro-intestinal (GI) segment: In December 2015, PIEL acquired five brands from Organon India Private Limited and MSD BV. These include Naturolax, Lactobacil and Farizym, which the company intends to continue in the GI segment through the OTC route. These brands have a rich legacy in India and high consumer pull. PIEL already has an antacid brand, Polycrol, in the GI segment. Polycrol is the number one brand in east India. With these additions, PIEL has enlarged its basket of offerings in the GI market. 18 May

18 Four brands from Pfizer: In May 2016, PIEL entered into an agreement to acquire four brands from Pfizer Ferradol, Neko, Sloan s and Waterbury s Compound. The agreement includes the trademark rights for Ferradol and Waterbury s Compound also for Bangladesh and Sri Lanka. These brands hold a rich legacy of 30+ years and enjoy high consumer pull. 18 May

19 PIEL Information Management Opening new avenues DRG s revenue grew at a CAGR of 11% over FY PIEL s Information Management business (PIM) comes from the acquisition of DRG (Decision Resources Group), which is a decision-support platform in the healthcare information services space. The company provides Consulting Services, Research Products, and Data & Analytics to life sciences companies, enabling them to make informed decisions around investment, cost containment and strategy. PIEL acquired the DRG core business in 2012, which primarily provided syndicated content to life sciences customers. DRG s products and services are built around proprietary data, algorithms, primary research and domain expertise. The business is headquartered in Burlington, Massachusetts, with strong presence in North America, Europe and Asia. Recently, the company leveraged its existing capabilities to establish presence in China, which will help it cater to a large part of emerging markets. It now has 15 office locations globally. In FY17, DRG s revenue grew 6% to INR12.2b. Over FY14-17, it grew at a CAGR of 11%. The company has capabilities across the customers product life cycle, and employs ~900 people (CY15), globally. Exhibit 25: Revenue CAGR of 11% since first full year of DRG acquisition Revenue (INR m) 8,993 10,196 11,563 12,224 4,827 5,227 6,462 6,496 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 PIM works with several leading life sciences companies, and has 10+ year relationships with all of the top-10 customers. The stickiness is reflected in the fact that it had 96% client retention (by value) in CY15, and 100% among its top- 20 customers. It derives 37% of its revenue from its top-10 customers, and 57% from its top May

20 Exhibit 26: Top-10 (20) customers contribute 37% (57%) of revenue Exhibit 27: Well-balanced composition of service lines Data & Analytics, 43 Global consulting services, 22 Research products, 35 PIM s strategy is based on the dual intent of revenue growth and profitability improvement Strategy based on four pillars PIM s strategy is based on the dual intent of revenue growth and profitability improvement. It has been increasing its addressable market through acquisitions and product innovation, and the focus on profitability improvement is visible through its efforts to augment presence in India, and realize operational synergies. Its strategy is based on the following four pillars: 1. Expanding market size and geographical presence: HBI acquisition to enable entry into provider market; acquisition of Adaptive Software to enable entry into payers market. 2. Continued development of cost and operational synergies: DRG India office is on target, with 250+ positions on-boarded in two offices. The company is leveraging India and reviewing cost structure to identify margin enhancement opportunities. Leadership team is progressing well on integrating products and services under one brand. 3. Inorganic growth opportunities: Continues to look at attractive opportunities to enhance capabilities/expand geographically through acquisitions. Four acquisitions since 2015 have bolstered DRG s Analytics, Provider, Payer, and Data Capabilities and Resources. 4. Product innovation: PIM has launched a new delivery platform for all DRG research reports. There are multiple new product ideas in the pipeline. PIM is increasingly focused on strategic partnerships and JVs to enhance product innovation, data capabilities and sales into new channels. Inorganic growth has been a crucial driver Acquisitions have been a key strategy to growth in the past. After PIEL s acquisition of DRG, the latter added six companies, thereby expanding the addressable market by ~2.7x (to USD16b from USD6b earlier). 18 May

21 Exhibit 28: Addressable market expanded through multiple acquisitions Addressable market (USDb) Past Present Future Addressable market could be USD16b in the future The company has opened offices in Bengaluru and Gurugram in the past two years While previous acquisitions have been towards adding/augmenting service lines, the two latest companies acquired give PIM access to the healthcare provider and payer space. Entry into these markets has been the key driver of the multifold expansion in addressable market. Acquisitions post PIEL taking control include: 1. Walnut Medical: UK-based data company that provides access to key European hospital-level data to enhance and expand data and analytics offerings 2. Abacus International: Gave access to European Health Economics and Outcomes Research (HEOR) market 3. Relay Technology Management: Enabled DRG to supply clients with premier analytics 4. Activate Networks: Expanded DRG s analytics capabilities; supports clients with sales force targeting 5. HealthHiway: Strength in providing analytics & solutions to Indian healthcare providers 6. Healthcare Business Insights: Trusted provider of best practice research, training & services to >1,400 hospitals in the US; marks company s entry into provider space 7. Adaptive Software: Leading solutions for Health Plans and Pharmacy Benefit Managers; marks company s entry into payer space India expansion to accelerate product development and profitability In FY17, PIM continued its expansion in India. It opened offices in Bengaluru and Gurugram in January 2015 and February 2016, respectively. It has hired 250+ employees in India so far. The objective of this initiative has been towards accelerating growth through accessing talent, increasing capabilities beyond existing products and services, improving customer delivery and response time, and realizing cost efficiencies. It will continue to capitalize on its India operations to drive innovation, enhance revenue, expand margins, and promote cost efficiencies. Performance demonstrative of strategy enablement Revenue growth of 13% in FY16 was a function of growth in Data & Analytics and the HBI acquisition. This slowed down slightly to 6% in FY17. The company has high revenue visibility driven by 96% retention rate in FY16 and continued addition in new customers. Moreover, the newly-entered provider and payer markets give an additional impetus to growth opportunities. 18 May

22 DRG s new, dynamic and web-based insight platform for DRG research reports was launched in FY17. The DRG Insights Platform combines Google-like search capabilities with a highly-intuitive user interface. This will help customers identify and explore highly-relevant content. The platform will transform the way customer s access and consume DRG content. PIEL had acquired DRG for a total consideration of USD635m, valuing the transaction at ~5x EV/Sales Global peers trade at 4-8x EV/Sales valuation PIEL has stated its intent to demerge its diverse business segments to unlock shareholders value. PIEL had acquired DRG for a total consideration of USD635m, valuing the transaction at ~5x EV/Sales. This is in line with global M&A transactions that are directly comparable to the operations of DRG. Exhibit 29: DRG's peer comparison EV/Revenue (x) EV/EBITDA (x) EV (USDm) Veeva Systems Inc ,297 Verisk Analytics, Inc ,924 Medidata Solutions, Inc ,362 Athenahealth, Inc ,336 Inovalon Holdings, Inc ,092 IMS Health ,542 Median Exhibit 30: M&A valuation multiples Buyer/ Acquisition Value/LTM Transaction value Target Investor price (USDm) revenue (x) /LTM EBITDA (x) ihealth Connolly 1, Heartbeat Experts Truven Vitruvian CRF IMS Health Quintiles 13, Altegra Emdeon Truven Health IBM Watson 2, Merge Healthcare IBM Watson 1, Median Value DRG conservatively at 4x forward sales Assuming DRG grows at a CAGR of 12% (versus 17% CAGR over CY05-15, and 11% since FY14 first full year of acquisition revenues), we expect sales of USD229m in CY18. We value it at 4x forward sales at USD690m, which would imply ~4.5x LTM sales of USD182m. We peg DRG inline with peers, which trade at a median value of 4.4x LTM revenue to factor in slower sales growth post acquisition in recent years. 18 May

23 Valuation and view SOTP of INR3,044; implied P/BV of 3.2x FY19E Post the sale of its domestic formulations business, PIEL has invested in fast-growing, profitable businesses. Starting with wholesale lending from scratch, it has now grown to become one of the top players in real estate financing. With the best talent, coupled with stringent underwriting and rigorous post-disbursal monitoring, PIEL has built a fast-growing, highly profitable franchise, with robust asset quality. We expect this business to deliver 40%+ loan book CAGR over FY The fund management business has AUM of INR70b+, and the company has seeded investments into each of the funds. We value this business at 7% AUM. We believe the financial services business is a key growth driver and value contributor for PIEL. This business constitutes ~70% of our SOTP valuation. Investment of INR46b in Shriram Group is valued at ~INR81b (FY19E), based on a target multiple of 2x for SHTF and 2.5x for SCUF. We have removed PIEL's investment in Shriram Group from net worth. Invested capital employed in the healthcare and IT businesses stands at INR120b+. We have allocated INR40b+ of net worth to these businesses. We have valued the healthcare business based on EV/EBITDA and the IT business based on EV/sales. Both these businesses together contribute ~30% of SOTP. Financial services business contributes ~70% of SOTP value The financial services segment is a key value contributor for PIEL. It has demonstrated its ability to grow faster than competitors and, at the same time, generate best-in-class return ratios with robust asset quality. Over past few years, it has gained a significant market share. The size of its loan book is comparable to the developer loan book of Indiabulls Housing Finance and is bigger than the developer loan books of Dewan Housing Finance and LIC Housing Finance. The company also generates significant fee income from its asset management business. The business generates a pre-tax RoA of 5%+ and an RoE of 25%+, with a C/I ratio of ~9%. Given strong growth the business has demonstrated over past few years as well as the immense opportunity available, we expect 40%+ loan CAGR over FY We expect the proposed capital raise of INR50b+ to be used to support such high loan growth. We expect RoA/RoE (post 35% tax rate) to be ~3.4%/25%+ by FY19. Asset quality should remain robust, given the best practices followed by the company. We have not factored in proposed capital raise in our estimates. Our valuation is based on P/BV of 2.5x for SCUF and 2x for SHTF. Total AUM of PIEL s alternate funds is INR70b+. Under some funds, PIEL has put the seed investment. We have factored in 15%+ CAGR in funds under management, and value this business at 7% AUM. We have deducted the seed investment from net worth to arrive at the allocated net worth to the financial services business. This business contributes ~1% of overall SOTP. On a blended basis, we value the NBFC business at 3.6x March 2019E BV INR1,583/share (~50% of SOTP). The implied value of Shriram Group investments is ~1.8x invested capital. Pharma and IT contribute ~20% of SOTP. Total capital employed in Pharma and IT businesses stands at INR120b+ as of FY17. Pharma 18 May

24 business has become profitable, and we expect it to deliver EBITDA margin of ~20% and revenue CAGR of ~19% over FY EBITDA growth is expected to be ~40% over FY On a blended basis, we have valued this business at EV/EBITDA of 14x. Over FY17-20, the IT business is expected to grow at a CAGR of 8-10% and EBITDA is likely to be ~16%. We value this business at EV/sales of 4x. Exhibit 31: PIEL: SOTP - March 2019 (without factoring in the proposed capital raise of up to ~INR50b) Value (INR B) Value (USD B) INR per share % To Total Rationale NBFC business , x PBV; ROA/ROE of ~4%/25%+ - Loan CAGR of 40% FY17-20 Shriram Investments Based on our Target Multiple; Implied 1.8x of invested capital AMC % AUM Pharma, IT and Others Pharma EV/EBITDA 14x; IT EV/Sales of 4x Target Value , Implied 3.2x Consolidated BV Current market cap ,798 Upside (%) Source: Company, MOSL Exhibit 32: PIEL: SOTP - March 2020 (without factoring in the proposed capital raise of up to ~INR50b) Value (INR B) Value (USD B) INR per share % To Total Rationale NBFC business , x PBV; ROA/ROE of ~4%/~25%+ - Loan CAGR of 40% FY17-20 Shriram Investments Based on our Target Multiple; Implied 1.8x of invested capital AMC % AUM Pharma, IT and Others , Pharma EV/EBITDA 14x; IT EV/Sales of 4x Target Value , Implied 3.5x Consolidated BV Current market cap ,798 Upside (%) Source: Company, MOSL 18 May

25 Capital raise to drive strong growth in financial services BV accretion of ~20% post capital raise PEL is planning to raise upto INR50b (~10% dilution) which in our view would support the strong growth in financial services business. The pharma and IT businesses are sufficiently capitalized, with a debt to equity ratio of ~1x (our estimate). Our back of the envelope calculations suggest that NBFC leverage in this business is 5x+. Considering wholesale nature of the business, we believe peak leverage could be 6-7x. While we have not factored in the capital raise, if accounted for our consolidated BV for FY18/19 would be ~INR1040/1150 vs our estimate of INR850/960 (under Indian GAAP). Below we show the sensitivity of capital raise to target price based on different multiples for financial services business. Exhibit 33: PIEL: SOTP - March 2019 (If proposed capital raise of INR50b factored in) FS multiple of 2.5x Value (INR B) Value (USD B) INR per share % To Total Rationale NBFC business , x PBV; ROA/ROE of ~4%/~16% - Loan CAGR of 40% FY17-20 Shriram Investments Based on our Target Multiple; Implied 1.8x of invested capital AMC % AUM Pharma, IT and Others Pharma EV/EBITDA 14x; IT EV/Sales of 4x Target Value , Implied 2.6x Consolidated BV Current market cap ,798 Upside (%) Exhibit 34: PIEL: SOTP - March 2019 (If proposed capital raise of INR50b factored in) FS multiple of 3.0x Value (INR B) Value (USD B) INR per share % To Total Rationale NBFC business , x PBV; ROA/ROE of ~4%/~16% - Loan CAGR of 40% FY17-20 Shriram Investments Based on our Target Multiple; Implied 1.8x of invested capital AMC % AUM Pharma, IT and Others Pharma EV/EBITDA 14x; IT EV/Sales of 4x Target Value , Implied 2.9x Consolidated BV Current market cap ,798 Upside (%) Source: Company, MOSL Exhibit 35: PIEL: SOTP - March 2019 (If proposed capital raise of INR50b factored in)- FS multiple of 3.6x Value (INR B) Value (USD B) INR per share % To Total Rationale NBFC business , x PBV; ROA/ROE of ~4%/~16% - Loan CAGR of 40% FY17-20 Shriram Investments Based on our Target Multiple; Implied 1.8x of invested capital AMC % AUM Pharma, IT and Others Pharma EV/EBITDA 14x; IT EV/Sales of 4x Target Value , Implied 3.3x Consolidated BV Current market cap ,798 Upside (%) Source: Company, MOSL Exhibit 36: PIEL: SOTP - March 2019 (If proposed capital raise of INR50b factored in) FS multiple of 4x Value (INR B) Value (USD B) INR per share % To Total Rationale NBFC business , x PBV; ROA/ROE of ~4%/~16% - Loan CAGR of 40% FY17-20 Shriram Investments Based on our Target Multiple; Implied 1.8x of invested capital AMC % AUM Pharma, IT and Others Pharma EV/EBITDA 14x; IT EV/Sales of 4x Target Value , Implied 3.5x Consolidated BV Current market cap ,798 Upside (%) Source: Company, MOSL 18 May

26 Financials and Valuations - Consolidated INCOME STATEMENT (INR M) FY13 FY14 FY15 FY16 FY17E FY18E FY19E FY20E Revenues 35,440 45,030 51,230 63,815 85, , , ,649 Change (%) HealthCare 24,410 28,200 31,210 34,670 38,920 50,221 57,061 64,897 Financial Services 3,930 7,260 9,371 17,397 33,515 52,117 70,193 92,769 Info Mgmt 6,510 8,900 10,196 11,559 12,224 13,691 15,334 17,174 Others EBITDA* 4,331 4,314 8,698 13,726 22,506 34,826 43,354 52,546 Change (%) HealthCare ,495 5,898 9,500 11,878 13,864 Financial Services # 2,796 2,110 6,575 8,185 14,241 22,314 28,102 34,904 Info Mgmt 1,628 1,257 1,824 3,046 2,368 3,012 3,373 3,778 Depreciation 2,096 2,469 2,899 2,554 3,817 3,397 3,697 3,997 HealthCare 1,457 1,560 1,927 1,344 2,564 2,094 2,344 2,594 Financial Services Info Mgmt ,185 1,228 1,278 1,328 1,378 EBIT* 2,236 1,845 5,799 11,172 18,689 31,429 39,657 48,549 Change (%) HealthCare -1, ,628 1,151 3,334 7,406 9,534 11,269 Financial Services # 2,790 2,096 6,557 8,159 14,216 22,289 28,077 34,879 Info Mgmt ,862 1,140 1,734 2,045 2,400 Unallocated Inc/(Exp) 0 0-2,407-4,028-5,487-8,183-8,383-8,583 Core PBT 2,236 1,845 3,392 7,144 13,202 23,246 31,274 39,966 Change (%) Exceptional Items , Reported PBT 2,236 1,845 30,354 7,600 13,103 23,246 31,274 39,966 Taxes , ,281 4,184 5,629 7,194 Tax Rate (%) PAT 1,988 1,217 26,904 7,105 10,821 19,062 25,645 32,772 Change (%) , Minority Interest Share from Asso. Co ,593 1,942 1,702 2,432 3,133 3,830 PAT Post MI 1,890 1,178 28,500 9,047 12,523 21,494 28,777 36,602 Change (%) , Dividend (Including Tax) 3,533 10,599 4,154 3,635 4,227 7,308 9,784 12,811 * Ex Exceptional, # Post interest expenses; FY16 & FY17 nos based on IND AS 18 May

27 Financials and Valuations - Consolidated BALANCE SHEET (INR M) Y/E MARCH FY13 FY14 FY15 FY16* FY17E* FY18E FY19E FY19E Equity Share Capital Reserves and Surplus 106,891 92, , , , , , ,143 Networth 107,236 93, , , , , , ,488 Borrowings 76,881 95,519 73, , , , , ,970 Change (%) Other liabilities 18,404 26,316 18,937 21,591 25,710 31,810 40,594 52,635 Change (%) Total Liabilities 202, , , , , , , ,093 Loans+Investments 114, , , , , , , ,869 Change (%) Goodwill 40,045 44,236 52,393 57,141 57,141 57,141 57,141 57,141 Fixed Assets 20,768 22,585 21,031 26,532 29,185 32,103 35,314 38,845 Other assets 27,094 36,818 20,781 25,075 50,739 37,998 55,289 69,239 Change (%) Total Assets 202, , , , , , , ,093 * Under Indian GAAP Profitability Ratios (%) EBITDA Margin - IT EBITDA Margin - Pharma Core ROE ROE Valuations Book Value (INR) ,098 BV Growth (%) Price-BV (x) EPS (INR) EPS Growth (%) , Price-Earnings (x) DPS (INR) Dividend Yield (%) E: MOSL Estimates 18 May

28 N O T E S 18 May

29 G A L L E R Y Piramal Enterprises 18 May

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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: Varun Kumar Varun.kumar@motilaloswal.com Contact : (+65) Office Address:21 (Suite 31),16 Collyer Quay,Singapore Motilal Oswal Securities Ltd Motilal Oswal Tower, Level 9, Sayani Road, Prabhadevi, Mumbai Phone: reports@motilaloswal.com 18 May