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23 May 2016
4QFY16 Results Update | Sector: Consumer
TTK Prestige
BSE SENSEX S&P CNX CMP: INR4,607 TP: INR5,400 (+17%) Buy 25,230 7,731 Bloomberg TTKPT IN Equity Shares (m) 11.6 M.Cap.(INR b)/(USD b) 53.4 / 0.8
52-Week Range (INR) 4,971/3,521 1, 6, 12 Rel. Per (%) 5/12/26 Avg Val,( INR m) 47 Free float (%) 29.6 Financials & Valuations (INR b) Y/E Mar 2016 2017E 2018E Net Sales 15.3 19.6 22.8 EBITDA 1.8 2.6 3.3 PAT 1.2 1.7 2.1 EPS (INR) 100.7 145.2 180.0 Gr. (%) 29.6 44.1 24.0 BV/Sh (INR) 620.3 718.7 840.2 RoE (%) 17.2 21.7 23.1 RoCE (%) 17.3 20.5 21.1 P/E (x) 43.9 30.5 24.6 P/BV (x) 7.1 6.2 5.3
Estimate change TP change Rating change
EBITDA and PAT beat estimates; New launches and acquisition to drive FY17 Results beat estimates: TTKPT reported overall revenue of INR3.1b (est. of
INR3.3b) marking a 7.5% YoY growth. Cooker revenue grew 4% during 4QFY16 to INR1,100m, cookware de-grew by 11% YoY to INR490m and appliances grew 17% YoY to INR1,390m. EBITDA margins expanded 460bp to 11% in 4QFY16 (est. of 8.2%) led by gross margin expansion of 350bp, largely helped by benign commodity prices. Adj. PAT grew 131% YoY—to INR216m in 4QFY16 (est. of INR162m). Management highlighted that revenue grew at moderate pace due to slowdown in mass consumption.
Foray into Cleaning solutions and Horwood acquisition to drive growth in FY17: TTKPT forayed into home cleaning market which is pegged at INR25b and growing at 15-20% annually. The company will outsource manufacture of most products except for one (electric MOP) which will be made in-house. The products will be first launched in PSK’s and management expects the business to constitute 5% of revenue in FY17. Horwood posted revenue of ~INR1,760m with EBITDA margins of ~16.5% in FY16 and shall be consolidated from 1QFY17. On account of this, we expect strong revenue CAGR of 22% over FY16-18E.
EBITDA margins to expand from by 230bp over FY16-18E: We expect higher capacity utilization, lower raw material prices and consolidation of higher margin business of Horwood to drive EBITDA margin expansion of 230bp to 14.3% in FY18E. Company is expected allocate marginally higher advertisement spends for Cleaning solution business.
Valuation and view: New launches and acquisitions, narrowing ecommerce price parity, softening raw material prices and higher utilizations reinforces our belief and we upgrade PAT estimates by 7%/5% in FY17/FY18. We expect revenue CAGR of 22% and PAT CAGR of 34% over FY16-18E. Maintain Buy with TP of INR5,400—30x FY18E EPS.
Investors are advised to refer through important disclosures made at the last page of the Research Report. Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Niket Shah ([email protected]); +91 22 3982 5426 Chintan Modi ([email protected]); +912239825422/Kaustubh Kale ([email protected]); +912230102498
TTK Prestige
23 May 2016 2
Results beat estimates TTKPT reported overall revenue of INR3.1b (est. of INR3.3b) as against INR2.9b
in 4QFY15, marking a 7.5% YoY growth. Cooker revenue grew 4% during 4QFY16 to INR1,100m, cookware de-grew by
11% YoY to INR490m and appliances grew 17% YoY to INR1,390m. EBITDA margins expanded 460bp to 11% in 4QFY16 (est. of 8.2%) led by gross
margin expansion of 350bp, largely helped by benign commodity prices. Adj. PAT grew 131% YoY—to INR216m in 4QFY16 (est. of INR162m). Management highlighted that revenue grew at moderate pace due to slowdown
in mass consumption.
Exhibit 1: Revenue trend
Source: MOSL, Company
Exhibit 2: EBITDA trend
Source: MOSL, Company
Exhibit 3: PAT trend
Source: MOSL, Company
Foray into Cleaning solutions to be key growth driver in FY17: TTKPT forayed into home cleaning market which is pegged at INR25b and
growing at 15-20% annually. The company will outsource manufacture of most products expect for one
(electric MOP) which will be made in-house. Launched innovative range of products which includes world’s first domestic
electric mop which sweeps, mops and scrubs at the same time; vaccum cleanerfloor polisher and all-purpose steam cleaner.
The products will be first launched in PSK’s and management expects thebusiness to constitute 5% of revenue in FY17.
The initiative is being launched under the ‘Prestige Clean Home’ banner.
3,06
3
3,45
5 3,69
4
2,72
5
3,36
4
3,82
0
3,83
7
2,86
2
3,48
6
4,21
0
4,47
8
3,07
7
1.3 3.0 (15.5) (3.8)
9.8 10.5 3.9 5.0 3.6
10.2 16.7
7.5
1QFY
14
2QFY
14
3QFY
14
4QFY
14
1QFY
15
2QFY
15
3QFY
15
4QFY
15
1QFY
16
2QFY
16
3QFY
16
4QFY
16
Revenues (INR m) Growth (YoY, %)
414 444 450 283 410 462 455 184 382 526 581 338
13.5 12.8 12.2 10.4
12.2 12.1 11.9
6.4
11.0 12.5 13.0
11.0
1QFY
14
2QFY
14
3QFY
14
4QFY
14
1QFY
15
2QFY
15
3QFY
15
4QFY
15
1QFY
16
2QFY
16
3QFY
16
4QFY
16
EBITDA (INR m) Margin (%)
258 303 295 262 265 280 281 94 246 340 372 216
-15.90.1
-33.1-6.5 2.8 -7.7 -4.8
-64.3
-7.421.7 32.6
131.2
1QFY
14
2QFY
14
3QFY
14
4QFY
14
1QFY
15
2QFY
15
3QFY
15
4QFY
15
1QFY
16
2QFY
16
3QFY
16
4QFY
16
PAT (INR m) Growth (YoY, %)
TTK Prestige
23 May 2016 3
Exhibit 4: Revenues (INR m) Segments 1QFY14 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 Cookers 1,190 1,380 1,330 1,040 1,350 1,480 1,400 1,060 1,310 1,610 1,550 1,100 Cookware 480 560 710 520 560 740 780 550 640 760 850 490 Appliances 1,380 1,500 1,630 1,130 1,400 1,550 1,590 1,190 1,490 1,800 2,020 1,390 Others 90 90 110 90 130 140 160 130 130 130 150 160 Total 3,140 3,530 3,780 2,780 3,440 3,910 3,930 2,930 3,570 4,300 4,570 3,140
Source: Company, MOSL
Exhibit 5: Revenues growth (YoY) Segments 1QFY14 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 Cookers -2% 4% -16% 6% 13% 7% 5% 2% -3% 9% 11% 4% Cookware -11% -8% -5% -5% 17% 32% 10% 6% 14% 3% 9% -11%Appliances 13% 9% -18% -10% 1% 3% -2% 5% 6% 16% 27% 17% Others -25% -25% -15% -10% 44% 56% 45% 44% 0% -7% -6% 23% Total 2% 3% -15% -4% 14% 11% 4% 5% 4% 10% 16% 7%
Source: Company, MOSL
Exhibit 6: Revenue mix (%) Segments 1QFY14 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QY16 4QFY16 Cookers 38% 39% 35% 37% 39% 38% 35% 36% 37% 37% 34% 35% Cookware 15% 16% 19% 19% 16% 19% 20% 19% 18% 18% 19% 16% Appliances 44% 42% 43% 41% 41% 40% 41% 41% 42% 42% 44% 44% Others 3% 3% 3% 3% 4% 4% 4% 4% 4% 3% 3% 5% Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Source: Company, MOSL
Horwood acquisition to drive growth in FY17 Horwood posted revenue of ~INR1,760m with EBITDA margins of ~16.5% in
FY16 and shall be consolidated from 1QFY17. Horwood has a broad customer base of over 1000 retailers. It does not have any
manufacturing base but outsources all requirements from third partymanufacturers.
TTK over the medium term plans to leverage its domestic manufacturingcapacities to cater to these branded segments. With ~60% capacity utilizationcurrently, we believe TTKPT can utilize the in-house capacities in India instead ofoutsourcing it to third parties, resulting in higher margins and better RoCE.
On account of this, we expect strong revenue CAGR of 22% over FY16-18E.Management highlighted TTKPT gained market share during the quarterwith e-commerce being the fastest growing channel (5% of total revenue)..
Other conference call highlights Advertising spends during the quarter were 6-6.5%. Number of PSKs at the end of 3QFY16 was 539 spread across 294 towns.
TTK Prestige
23 May 2016 4
Valuation and view We value TTKPT at 30x FY18E EPS of INR180 and arrive at a price target of INR5,400 and we believe our target multiple is justified, given the following: Prestige is India’s brand leader in the kitchenware and appliances categories and
commands a ~37% market share in pressure cooker category, 31% market sharein the cookware category and ~10% market share in the appliances category.
Having expanded fixed assets by 8x over last 5 years, TTKPT has ample room toimprove capacity utilization (~60% currently). We believe substitution of importswith own manufacturing, expected revival of domestic demand as well assuccessful tapping of OEM exports strategy will drive utilization rate higher.
With an aim to overcome predatory pricing by e-commerce players and avoidchannel conflicts, TTKPT is in process of direct tie up with e-commerce players tomaintain price discipline. This will ensure channel conflicts are avoided.
We believe the de-growth phase is behind for the company, and withdiscretionary spends revival as well as ramp-up of export opportunity, TTK willpost a robust 14% revenue CAGR over FY15-18.
We expect higher capacity utilization to drive significant operating leverage forTTKPT with margins expanding 330bp over FY15-18, driving 30% PAT CAGR.
Better asset utilization and minimal reinvestment needs should drive strong freecash flow generation and improved return ratios.
Exhibit 7: Price to earnings (one year forward)
Source: MOSL, Company
Exhibit 8: Price to book (one year forward)
Source: MOSL, Company
TTK Prestige
23 May 2016 5
Story in charts: Rules India’s kitchen
Exhibit 9: Significant portfolio expansion
Source: MOSL, Company
Exhibit 10: Strong marketing investments
Source: MOSL, Company
Exhibit 11: Higher penetration through Prestige Smart Kitchens
Source: MOSL, Company
Exhibit 12: Significant capacity expansion
Source: MOSL, Company
Exhibit 13: Robust cash generation
Source: MOSL, Company
Exhibit 14: Strong return ratios
Source: MOSL, Company
59 56 55 53 47 41 36 37 37 37 36 31 31
15 15 16 15 17 20 20 18 17 19 18 15 16
10 11 10 10 12 10 10 9 13 12 13 11 11
9 13 14 17 20 25 31 33 30 28 30 27 28
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
E
FY18
E
Horwood Cleaning appliancesKitchen Electrical Appliances Gas StovesNonStick Cookware Pressure Cookers & Pans
1.6% 2.6%
3.5% 4.2%
6.2%
BajajElectricals
Havells Hawkins V-Guard TTK Prestige
Ad spend to revenues (%)
80 180 173 196 228 279
356 433
536 580 539650
725
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
E
FY18
E
Prestige Smart Kitchens (nos)
419
1,507 1,681
3,396 3,365 3,323
5,316 5,251
FY11 FY12 FY13 FY14 FY15 FY16 FY17E FY18E
Net Fixed Assets (INR m)
637 1,005 912
721 971
1,674 1,918
FY12 FY13 FY14 FY15 FY16 FY17E FY18E
Operating Cash Flow (INR m)
47 39
22 15 17
22 23
FY12 FY13 FY14 FY15 FY16 FY17E FY18E
RoE (%)
TTK Prestige
23 May 2016 6
Assumption Sheet
Exhibit 15: Key assumptions Assumptions FY12 FY13 FY14 FY15 FY16 FY17E FY18E Pressure Cookers & Pans 4,132 5,106 4,940 5,440 5,570 6,188 7,147 NonStick Cookware 2,247 2,449 2,270 2,660 2,750 3,086 3,726 Gas Stoves 1,108 1,279 1,669 1,750 2,040 2,244 2,468 Kitchen Electrical Appliances 3,494 4,490 3,907 3,900 4,639 5,495 6,509 Cleaning appliances 600 900 Horwood 1,785 1,964 Total Revenues (INR m) 11,034 13,585 12,938 13,883 15,251 19,556 22,827 Pressure Cookers & Pans 30% 24% -3% 10% 5% 11% 16% NonStick Cookware 46% 9% -7% 17% 5% 12% 21% Gas Stoves 37% 15% 30% 5% 17% 10% 10% Kitchen Electrical Appliances 81% 28% -13% 0% 17% 18% 18% Cleaning appliances 50% Horwood 10% Total Revenue Growth (%) 45% 23% -5% 7% 10% 28% 17% Pressure Cookers & Pans 37% 38% 38% 39% 37% 32% 31% NonStick Cookware 20% 18% 18% 19% 18% 16% 16% Gas Stoves 10% 9% 13% 13% 13% 11% 11% Kitchen Electrical Appliances 32% 33% 30% 28% 30% 28% 29% Cleaning appliances 3% 4% Horwood 9% 9% Total Revenue Mix (%) 100% 100% 100% 100% 100% 100% 100%
Source: MOSL, Company
TTK Prestige
23 May 2016 7
Financials and Valuations Income Statement (INR Million) Y/E Mar 2011 2012 2013 2014 2015 2016 2017E 2018E Net Sales 7,636 11,034 13,585 12,938 13,883 15,251 19,556 22,827 Change (%) 50.3 44.5 23.1 -4.8 7.3 9.9 28.2 16.7 EBITDA 1,217 1,720 2,037 1,602 1,492 1,825 2,621 3,264 EBITDA Margin (%) 15.9 15.6 15.0 12.4 10.7 12.0 13.4 14.3 Depreciation 43 62 90 148 190 209 257 315 EBIT 1,174 1,658 1,947 1,455 1,302 1,616 2,363 2,950 Interest 8 64 143 85 45 18 26 53 Other Income 43 31 47 79 51 96 101 126 Extraordinary items -6 0 0 70 24 -37 0 0 PBT 1,204 1,625 1,852 1,518 1,333 1,656 2,438 3,023 Tax 366 499 521 400 410 508 746 925 Tax Rate (%) 30.4 30.7 28.1 26.3 30.7 30.7 30.6 30.6 Min. Int. & Assoc. Share 0 0 0 0 0 0 0 0 Reported PAT 838 1,126 1,331 1,118 923 1,148 1,692 2,098 Adjusted PAT 842 1,126 1,331 1,067 906 1,174 1,692 2,098 Change (%) 60.6 33.7 18.2 -19.9 -15.0 29.6 44.1 24.0
Balance Sheet (INR Million) Y/E Mar 2011 2012 2013 2014 2015 2016 2017E 2018E Share Capital 113 113 114 117 117 117 117 117 Reserves 1,801 2,738 3,841 5,728 6,343 7,113 8,260 9,676 Net Worth 1,915 2,851 3,955 5,845 6,460 7,230 8,376 9,793 Debt 382 597 1,145 269 0 0 1,050 1,050 Deferred Tax 33 68 101 205 260 292 292 292 Total Capital Employed 2,329 3,516 5,201 6,319 6,720 7,521 9,718 11,134 Gross Fixed Assets 892 2,029 2,262 4,125 4,297 4,464 6,714 6,964 Less: Acc Depreciation 473 522 581 729 931 1,141 1,398 1,712 Net Fixed Assets 419 1,507 1,681 3,396 3,365 3,323 5,316 5,251 Capital WIP 495 794 1,401 243 264 31 196 228 Investments 226 4 0 90 35 680 680 680 Current Assets 3,115 4,532 4,825 4,988 5,294 5,933 6,881 8,937 Inventory 1,050 1,749 2,355 2,668 2,747 3,247 3,751 4,378 Debtors 747 1,060 1,432 1,491 1,593 1,753 2,143 2,502 Cash & Bank 535 223 326 296 295 312 50 951 Loans & Adv, Others 782 1,499 712 533 659 621 937 1,107 Curr Liabs & Provns 1,925 3,320 2,706 2,399 2,239 2,446 3,355 3,963 Curr. Liabilities 1,063 1,995 2,202 2,036 1,869 2,289 2,679 3,127 Provisions 862 1,325 504 363 370 157 676 836 Net Current Assets 1,189 1,212 2,119 2,589 3,055 3,487 3,526 4,974 Total Assets 2,329 3,516 5,201 6,319 6,720 7,521 9,718 11,134 E:MOSL Estimates
TTK Prestige
23 May 2016 8
Financials and Valuations Ratios Y/E Mar 2011 2012 2013 2014 2015 2016 2017E 2018E Basic (INR) EPS 74.3 99.4 117.2 91.5 77.8 100.7 145.2 180.0 Cash EPS 78.0 104.9 125.1 104.2 94.1 118.7 167.2 207.0 Book Value 168.9 251.6 348.3 501.5 554.2 620.3 718.7 840.2 DPS 12.5 17.5 17.5 20.6 22.6 27.0 41.1 51.4 Payout (incl. Div. Tax.) 19.6 20.6 17.5 24.4 33.4 31.1 32.2 32.5 Valuation(x) P/E 56.9 43.9 30.5 24.6 Price / Book Value 8.0 7.1 6.2 5.3 EV/Sales 3.7 3.4 2.7 2.3 EV/EBITDA 34.4 28.1 20.1 15.8 Dividend Yield (%) 0.5 0.6 0.9 1.2 Profitability Ratios (%) RoE 53.3 47.3 39.1 21.8 14.7 17.2 21.7 23.1 RoCE 44.7 40.8 33.5 20.1 14.9 17.3 20.5 21.1 RoIC 85.0 64.4 46.9 23.4 15.3 17.8 21.5 22.7 Turnover Ratios (%) Asset Turnover (x) 3.3 3.1 2.6 2.0 2.1 2.0 2.0 2.1 Debtors (No. of Days) 35 34 38 41 41 41 39 39 Inventory (No. of Days) 50 58 63 75 72 78 70 70 Creditors (No. of Days) 51 66 59 57 49 55 50 50 Leverage Ratios (%) Net Debt/Equity (x) -0.2 0.1 0.2 0.0 -0.1 -0.1 0.0 -0.1
Cash Flow Statement (INR Million) Y/E Mar 2011 2012 2013 2014 2015 2016 2017E 2018E Adjusted EBITDA 1,217 1,720 2,037 1,602 1,492 1,825 2,621 3,264 Non cash opr. exp (inc) 0 6 19 86 29 59 101 126 (Inc)/Dec in Wkg. Cap. -123 -647 -760 -367 -473 -405 -301 -547 Tax Paid -351 -468 -324 -471 -373 -508 -746 -925 Other operating activities 0 0 0 0 0 0 0 0 CF from Op. Activity 743 611 973 850 675 971 1,674 1,918 (Inc)/Dec in FA & CWIP -318 -1,523 -924 -705 -193 66 -2,415 -283 Free cash flows 425 -911 49 145 482 1,038 -741 1,635 (Pur)/Sale of Invt -222 222 0 -90 55 -645 0 0 Others 37 24 35 62 48 0 0 0 CF from Inv. Activity -502 -1,277 -889 -733 -90 -579 -2,415 -283 Inc/(Dec) in Net Worth 0 0 0 1,053 0 0 0 0 Inc / (Dec) in Debt 0 575 365 -881 -250 0 1,050 0 Interest Paid -8 -56 -147 -85 -45 -18 -26 -53 Divd Paid (incl Tax) & Others -138 -165 -199 -233 -291 -357 -545 -682 CF from Fin. Activity -145 353 19 -147 -586 -376 478 -734 Inc/(Dec) in Cash 96 -312 103 -30 -1 17 -262 901 Add: Opening Balance 440 535 223 326 296 295 312 50 Closing Balance 535 223 326 296 295 312 50 951 E:MOSL Estimates
TTK Prestige
23 May 2016 9
Corporate profile Exhibit 1: Sensex rebased
Source: MOSL/Bloomberg
Exhibit 2: Shareholding pattern (%)
Mar-16 Dec-15 Mar-15
Promoter 70.4 70.4 70.4
DII 5.6 5.3 6.1
FII 16.3 16.5 14.8
Others 7.7 7.8 8.7
Note: FII Includes depository receipts Source: Capitaline
Exhibit 3: Top holders Holder Name % Holding Axis Mutual Fund Trustee Ltd A/c Axis Mutual 5.2
Nalanda India Equity Funds Limited 3.5
Wellington Trust Co, National Association 2.4
T.Rowe Price International Discovery Fund 2.4
Napean Trading And Investment Co 1.2
Source: Capitaline Exhibit 4: Top management
Name Designation
T T Raghunathan Vice Chairman
T T Jagannathan Executive Chairman
Chandru Kalro Managing Director
K Shankaran Director & Company Secretary
Source: Capitaline
Exhibit 5: Directors Name Name
T T Raghunathan Murali Neelakantan*
T T Jagannathan Vandana R Walvekar*
Chandru Kalro Arun K Thiagarajan*
T T Mukund Dileep Kumar Krishnaswamy*
R Srinivasan* K Shankaran
*Independent
Exhibit 6: Auditors Name Type
S Viswanathan Statutory
Source: Capitaline
Exhibit 7: MOSL forecast v/s consensus EPS (INR)
MOSL forecast
Consensus forecast Variation (%)
FY17 145.2 134.2 8.2
FY18 180.0 171.4 5.0
Source: Bloomberg
Company description Prestige is India’s brand leader in the kitchenware and appliances categories and commands a ~37% market share in pressure cooker category, 31% market share in the cookware category and ~10% market share in the appliances category. It commands 14% share in the INR90b kitchenware industry. It derives 39% of sales coming pressure cookers, 19% of the revenue from non-stick cookware, 28% from kitchen electric appliances, 13% from gas stoves and the balance from other products.
TTK PRESTIGE REPORT GALLERY
TTK Prestige
23 May 2016 11
N O T E S
TTK Prestige
23 May 2016 12
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Pending Regulatory inspections against Motilal Oswal Securities Limited: 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 replied to the Show Cause Notice whereby SEBI granted us an opportunity of Inspection of Documents. Since all the documents requested by us were not covered we have requested to SEBI vide our letter dated June 23, 2015 to provide pending list of documents for inspection.
List of associate companies of Motilal Oswal Securities Limited -Click here to access detailed 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. The research analysts, strategists, or research associates principally responsible for preparation of MOSt research receive compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors and firm revenues Disclosure of Interest Statement TTK PRESTIGE Analyst ownership of the stock No Served as an officer, director or employee No A graph of daily closing prices of securities is available at www.nseindia.com and http://economictimes.indiatimes.com/markets/stocks/stock-quotes
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For Hong Kong: This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of research report in Kong 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: Varun Kumar Kadambari Balachandran [email protected] [email protected] Contact : (+65) 68189232 (+65) 68189233 / 65249115 Office Address:21 (Suite 31),16 Collyer Quay,Singapore 04931
Motilal Oswal Securities Ltd
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