27 November 2017

Initiating Coverage I Sector: Plastic Products

Nilkamal Limited
BSE SENSEX S&P CNX
33,680 10,390
CMP: INR1,680 TP: INR2,215 (+32%) Buy
We recommend BUY on Nilkamal for target price of INR2,215 (20x
September FY19E EPS).
Market leader in moulded furniture (chairs) in India, with strong brand:
Nilkamal is a market leader with ~32% share in the moulded furniture
segment and sells ~1.4 million plastic moulded chairs per annum (one
of the largest in India). The plastics division is the largest revenue
MAXIMUM BUY generator for the company at 89% in FY17. The company has been able
PRICE: INR1,780
to grow this business consistently (8.3% CAGR over FY12-17) on the
back of new products, designs and innovation (ex. Hybrid chairs
Stock Info

Initiating Coverage
combining metal and plastics).
Bloomberg NILK IN
Beneficiary of shift from unorganised to organised: Market size of
Equity Shares (m) 14.9
Furniture Industry is ~INR750bn. Of this 85% is unorganized - mainly
52-Week Range (INR) 2275 / 1210
carpentered products and there is an accelerated shift towards
1, 6, 12 Rel. Per (%) 1 /-23 / -1
organized Ready Furniture sector due to better aesthetics, design,
M.Cap. (INR b) 25.1
quality, scalability in manufacturing, paucity of labour and time.
M.Cap. (USD b) 0.4
Nilkamal offers ~450 different products in Ready Furniture category
12M Avg Val (INR M) 503
with pan India distribution network. Further GST implementation
Free float (%) 36.0
would also aid shift from unorganized to organized, where Nilkamal
is a market leader and is best suited to benefit from this shift.
Financials Snapshot (INR b)
Performance of @home to improve: Nilkamal's retail division, @home,
Y/E Mar 2018E 2019E 2020E
Net Sales 21.1 23.1 25.8 which had been sluggish over the years, is now witnessing a revival as
EBITDA 2.5 2.8 3.2 well as turnaround at EBIT level. From negative EBIT is the past, the
PAT 1.3 1.5 1.8 segment reported INR32mn EBIT profit in FY17 with margin of 1.4%.
EPS (Rs) 87.3 100.9 120.6 The company is undertaking various initiatives like closing down the
EPS Growth (%) 6.3 15.5 19.5 non-profitable stores, product standardization, improving supply chain
BV/Share (INR) 571.0 651.6 747.4 process, foray into customised kitchens, wall units and wardrobes,
P/E (x) 19.2 16.7 13.9
etc. We believe that the retail business is now at an inflexion point
P/BV (x) 2.9 2.6 2.2
and would pick up pace with the improvement in consumer spending.
EV/EBITDA (x) 10.3 9.1 7.8
Div payout (%) 15.5 20.1 20.5 We expect Revenue of INR3bn with EBIT margins of 3.2% in FY20.
RoE (%) 16.3 16.5 17.2 Earnings to grow 14% with stable ROE of 17%: Over FY12-17, Nilkamal's
RoCE (%) 15.3 15.7 16.6 revenue and PAT grew at 7%/17% as EBITDA margin expanded by
~110bps. We expect margins to further improve by 110bps over FY17-
Shareholding pattern (%)
20E on the back of better product mix, operational efficiencies and
As On Sept-17 Jun-17 Mar-17
Promoter 64.1 64.1 64.1 cost optimization on account of rationalization in the low margin
MFs 9.6 7.2 5.3 @home division. Going ahead, we expect revenue and PAT CAGR of
FPIs 3.6 4.0 4.9 8.4% and 13.7%, respectively, over FY17-20E and EBITDA margins of
Others 22.7 24.7 25.7 12.6% in FY20E. RoE is expected to remain largely stable around 17%
over FY17-20E.
Valuation and view: The company has free cash flows with very low
Investors are advised to refer through leverage (D/E of 0.14x FY17). Return ratios (RoE) improved from 10%
disclosures made at the end of the Research in FY15 to ~18% in FY17. Despite steady growth, healthy balance sheet
Report.
and stable RoE the stock is trading at 17x our FY19E EPS. We believe
that with improving product mix and market share shift to organized
Siddhartha Khemka players, Nilkamal could command higher valuations. We initiate
siddhartha.khemka@MotilalOswal.com coverage with TP of INR2,215 (20x Sept'FY19 P/E) and recommend Buy.
Tel: +91 22 3010 2452
 Nilkamal Limited

Company background
Nilkamal is an industry leader in the moulded furniture and material handling products with
diversified product portfolio catering to different industries and a diversified base of customers
including household customers, industrial customers and retail buyers. It also has presence in
the retail business of lifestyle furniture, furnishings and accessories under its brand '@home' &
Nilkamal Mattresses.
The company has two major business verticals viz; 1) Plastic division and 2) Lifestyle Furniture,
furnishings and accessories division. In FY17, Plastics division contributed ~89% to the total
revenues while the retail division ('@home') contributed ~11% to the revenue. The plastic
division comprises of verticals like Material Handling, Moulded Furniture and Mattresses.
Material handling accounts for ~57% of the total revenues of Plastics division while Moulded
Furniture contributes ~41% and balance 2% comes from Mattress business (new business, which
the company ventured in 2012).
Exhibit 1: Nilkamal business snapshot
Business Segments Plastics Lifestyle
Sub Segments Material Moulded Mattress Bubble Retail
Handling Furniture guard (@home)
Year Started 1984 1990 2011 2018 2005
FY17 Revenue (INR mn) 10300 7600 480 - 2340
Revenue Contribution 50% 37% 2% - 11%
Major Products Crates, pallets Home & Office Chairs, Coir, Spring & Nilkamal Bubble Wide range of
cabinets, tables Foam Mattress GUARD is a multi- home décor
Pillows player polyproplyne products inc.
board used for furniture, soft
protection, packaging, furnishings,
printing and paneling accessories &
modular kitchens
*Broad estimate; Source: Company, MOSL

Exhibit 2: Strategic tie-ups with international players

Source: Company, MOSL

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 Nilkamal Limited

Journey since Inception

Exhibit 3: -----

Launches Nilkamal
2018 2011
BubbleGUARD
Enters mattress
business

Exhibit 4: Auditors Exhibit 5: Segmental Contribution

Name Type
B S R & Co LLP Statutory
Vora & Associates Statutory
Pratik M Shah Secretarial Audit
B F Modi Cost Auditor
Source: Capitaline

Source: Company, MOSL

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 Nilkamal Limited

Investment argument
Market leader in moulded furniture in India, with strong brand recal:
Nilkamal is a market leader with ~32% share in the moulded furniture segment and sells ~1.4
million plastic moulded chairs per annum (one of the largest in India). The moulded furniture
division which is a part of plastics division contributed ~32% of the revenue in FY17. The product
portfolio includes range of chairs from premier chairs, baby chairs, chair shells, dining tables,
center tables, stools, racks, trolleys, school benches to planters. The company has been able to
grow this business consistently on the back of new products, designs and innovation (Hybrid
chairs combining metal and plastics). In order to maintain the strong foothold in this segment
the company introduced 9 new models in moulded furniture segment in FY16-17 mainly in
premium range which would be margin accretive. In order to improve the market share of the
company going forward and stay ahead of the competition Nilkamal has planned to launch 10
new products in the value added segment.

The ready furniture vertical (offering a range of 450 different products) comprising of office
and home segment Home & office furniture segments like bedroom, living, desking and storage,
dinning etc. offers a huge opportunity in future. The overall market size of furniture industry is
estimated to be INR750bn and is largely catered by unorganised players (~85%) mainly through
carpentered products. The recently implemented GST is likely to benefit organised players like
Nilkamal to gain market share form the unorganized players. Also, due to better aesthetics,
design, quality, scalability in manufacturing, paucity of labour & time as regards the end
consumer; the ready furniture industry is expected to gain going ahead. The two pronged
growth drivers of GST and industry shift puts Nilkamal in a sweet spot to gain significantly over
time.

Exhibit 6: Sharp increase in advertisement spend to create brand awareness

Source: Company, MOSL

27 November 2017 4
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 Nilkamal Limited

Mattress segment on the cusp of growth

The size of the organized mattress industry is ~ INR32bn and is expected to grow at 12-15% p.a.
for the next few years. The company's mattress vertical (started in FY12) is relatively at the
nascent stage (commanding 2% of FY17 revenue). Until now the main focus of the company for
the mattress segment has been to improve reach, enhance the product offering and increase
awareness of the Nilkamal mattress brand. The integration of mattress vertical with the furniture
business helped the company to register a growth of 44% in FY17 vs. industry growth of ~10%.
Currently Nilkamal has mattress manufacturing facilities at Southern and Eastern part of the
country, and has plans to set up production units in North and West during FY18. The future
strategy for the division is to leverage the existing pan India network of distributors and dealers
to accelerate the growth of the mattress segment. The management expects the mattress
division to contribute ~INR2bn of revenue in FY20 registering a CAGR of 60% over FY17-20E. This
will largely be driven by increasing per capita income, increasing literacy across states triggering
"The Wellness Theme" would in-turn help shift from unorganized to branded players.
Market leadership in material handling equipment
Material handling division is one of the largest business segments of the company (56% of FY17
revenue). In India, Nilkamal had pioneered the use of plastic crates and today the company is
the largest manufacturer of plastic crates for various industries ranging from Automobile,
Pharmaceutical, Engineering, Electrical, Logistics, Textiles, Supermarkets, Electronics, Retail,
Food & Beverages, Agriculture, Seafood, Hospitality & Catering and other allied business.
Performance of @home likely to improve
Nilkamal's retail division, '@home', has 17 large format stores, one Go-to-Market (GTM) store
and 8 shop-in-shop stores (Shoppers Stop), spread across 14 cities, covering a retail space of
over 2.87 lakh sq. ft. The division contributes 10.7% to the total revenues of Nilkamal and has
grown by 3.4% CAGR over FY13-17. The company is undertaking various initiatives like closing
down the non-profitable stores, product standardization, improving supply chain management
using auto replenishment systems, foray into customised kitchens, wall units and wardrobes,
etc. These cost optimization steps by management coupled with improving penetration of
organized retail in furniture is likely to help improve sales/sq. feet for the company.

Exhibit 7: No. of @home stores Exhibit 8: Revenue per sq.ft for @home

Source: Company, MOSL Source: Company, MOSL

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 Nilkamal Limited

Financial Analysis
Healthy performance track record :
Over FY12-17, Nilkamal's revenue grew at a CAGR of 7.4% to INR21.6bn. EBITDA and net profit
grew by 9.3% and 17.3% respectively during the period. Nilkamal's EBITDA margin expanded by
~110bps to 11.4% over the last 5 years and we expect it to further improve by another 110bps to
12.6% by FY20E on the back of better operational efficiencies, cost optimization on account of
rationalization in the low margin @home division, better product mix. In FY17, the company
had a healthy balance sheet with net debt free.
Expect PAT growth of 14% over FY17-20E :
Going ahead, we expect revenue and PAT CAGR of 8.4% and 13.7%, respectively, over FY17-20E
and EBITDA margins of 12.6% in FY20E. We model a gradual debt repayment over FY17-20E
owing to internal accruals which could improve the gross debt/equity from 0.11x in FY17 to
0.03x by FY20E. RoE is expected to remain largely stable around 18% over FY17-20E.

Valuation
With sharp improvement in margins and on the back of high growth the stock had seen sharp
rerating during FY16-17 leading to 1-year forward P/E reaching 24x. However the stock has seen
some correction from its recent highs. Despite steady growth, healthy balance sheet and
stable RoE, (FY19 RoE of 17%, OPM of 12.6%) the stock is trading at ~17x FY19E P/E. We believe
that with improving product mix and market share shift to organized players, Nilkamal could
again command higher valuations.
Exhibit 9: Peer comparison
MKT CAP OPM (%) RoE (%) P/E (x) Sales CAGR PAT CAGR
Company (INR bn) FY18E FY19E FY18E FY19E FY18E FY19E FY17-19E FY17-19E
Supreme Industries 144 15.3 15.9 23.6 25.8 34.2 27.2 15% 19%
Astral Poly 96 14.6 15.2 18.9 20.5 52.7 39.2 20% 30%
Finolex Industries 78 17.7 18.1 16.6 17.8 22.9 19.3 9% 7%
Time Techno 42 14.8 15 12.7 13.6 23.4 18.5 15% 21%
Nilkamal 25 11.7 12.1 16.3 16.5 19.5 16.9 8% 14%
Source: Bloomberg, Company, MOSL
Exhibit 10: Nilkamal 1-year forward P/E (x)

Source: Company, MOSL

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 Nilkamal Limited

Story in Charts
Exhibit 11: Improving Revenue growth Exhibit 12: Margin improvement likely to continue

Source: Company, MOSL

Exhibit 13: Expect 17% CAGR in PAT over FY17-20E Exhibit 14: ROE to remain stable

Source: Company, MOSL

Exhibit 15: Plastic segment PBIT to remain steady Exhibit 16: Turnaround expected in Lifestyle PBIT

Source: Company, MOSL

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 Nilkamal Limited

Key Risks
Volatility in raw material prices :
Nilkamal's major segment being plastics - its raw material prices are closely linked to global
crude oil prices. Further, given that the plastic furniture segment is largely unorganized and is
price sensitive - Nilkamal has low pricing power despite having a brand presence. Hence any
sharp volatility in crude oil price could impact the company's margins in case of its inability to
pass on the input cost inflation to its customers.
Inability to ramp-up new businesses in near future :
Nilakmal entered the retail lifestyle and furniture business in 2005 and is now witnessing a
recovery and turnaround in this business. The losses in the retail segment impacted the
company's overall financials for the past several years. The company also entered the mattress
business in 2011 which is yet to contribute meaningfully and has now entered into the building
material segment (bubble guard). The overall financials could be impacted in case the company
is unable to significantly ramp-up these businesses in near future.

Increasing Competition from organised and unorganised players :

The plastic business is highly fragmented with a large unorganized segment. However, the GST
implementation is expected to bring in a level playing field, favoring the organised and branded
players. Other organised players include Supreme Industries, Wimplast (Cello), Prima Plastics.
While Nilakmal is the market leader in the organised plastic furniture industry, the company
needs to continuously spend on advertising and brand promotion to maintain its leadership.
Further, increasing competition from the organized players could result in pricing pressure and
impact operational performance of the company.

27 November 2017 7
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 Nilkamal Limited

Management Overview
Mr. Vamanrai V. Parekh, Chairman
Mr. Parekh, co-founder and promoter of Nilkamal Group has 60 years of experience
in the plastics industry. His leadership has steered Nilkamal to become a prominent
company in India and abroad. He has been a part of several prestigious committees
in the plastic industry. After serving as chairman of the Plastics Export Promotion
Council, he was on the board of the National Advisory Board of Plast India. He is
also a trustee in various educational and charitable institutions, including the
illustrious Shree Vile Parle Kelavni Mandal.
Mr. Sharad V. Parekh, Managing Director
Mr. Sharad is the Managing Director of the Nilkamal Group. Co-founder and promoter
of the Group, he is Mr. Vamanrai's younger brother and has oversees marketing and
administration of the group since its inception. He has been innovative in developing
and selling customized material handling solutions to all industries. He pioneered
the material handling business in India.
Mr. Hiten V. Parekh, Joint Managing Director and Promoter
Mr. Hiten is the Joint Managing Director and Promoter. With an undergraduate
degree in Commerce from Mumbai University and a Diploma in Quality Systems &
Management from NMIMS University, he plays a pivotal role. With over 30 years of
experience in the manufacturing sector, he oversees operations of several factories
and drives new project developments. He took the company to the forefront of the
furniture retail sector with the inception of @home and also launched the brand
Mattrezzz, the group's foray into manufacturing mattresses. Most recently, he
introduced the JIT Inventory Management System resulting in smooth availability
of products, streamlined operations, release of cash and space at Factories and
Depots across India
Mr. Manish V. Parekh, President and Executive Director (Furniture)
Mr. Manish is associated with Nilkamal for past 25 years. He oversees the furniture
business of the company and is the pillar behind the enormous dealer network,
which is responsible for catering to requirements of the most remote regions of
the country. He has helped the company to become one of the largest producers of
molded plastic furniture in the world. He is also responsible in conceptualizing and
launching @home - the home retail division of the company. He initiated E-
commerce arm of the company by conceptualizing & launching the E-com portal of
@home and in tying up with major E-tail players to strengthen the digital presence
of the furniture and the @home division.
Mr. Nayan S. Parekh, President and Executive Director (Material Handling)
Mr. Nayan is a Promoter of the Group and has a Bachelor's degree in Plastics
Engineering from the University of Massachusetts, USA and monitors the
manufacturing, operations and sales of the material handling division of the Group.
The division has seen expansion with a huge range of verticals. He is the brain
behind NilkamalBito Storage Systems P Ltd. (JV with BITO LagertechnicBittmann
GmbH to manufacture metal storage systems) and CambroNilkamal Pvt. Ltd. (JV
with Cambro, USA to manufacture products for the hospitality industry).

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 Nilkamal Limited

Financials and valuations

Income Statement (INR Million)
Y/E March 2014 2015 2016 2017 2018E 2019E 2020E
Net Sales 17,418 18,946 19,265 20,240 21,053 23,150 25,778
Change (%) 8.8 1.7 5.1 4.0 10.0 11.4
EBITDA 1,571 1,536 2,300 2,317 2,463 2,790 3,235
Margin (%) 9.0 8.1 11.9 11.4 11.7 12.1 12.6
Depreciation 522 574 550 505 547 653 731
EBIT 1,049 962 1,750 1,811 1,916 2,137 2,504
Int. and Finance Charges 425 299 182 117 88 60 46
Other Income 36 46 33 33 66 119 176
Extraordinary Items 0 0 0 0 0 0 0
PBT 659 708 1,601 1,728 1,894 2,196 2,635
Tax 183 196 516 536 625 725 870
Tax Rate (%) 27.8 27.6 32.2 31.0 33.0 33.0 33.0
Min. Int. & Assoc. Share 5 8 -55 -34 -34 -34 -34
PAT 470 505 1,141 1,225 1,303 1,505 1,799
Change (%) 7.3 126.0 7.4 6.3 15.5 19.5
Margins (%) 2.7 2.7 5.9 6.1 6.2 6.5 7.0

Balance Sheet
Y/E March 2014 2015 2016 2017 2018E 2019E 2020E
Share Capital 149 149 149 149 149 149 149
Reserves 4,718 5,181 6,126 7,270 8,371 9,574 11,004
Net Worth 4,868 5,331 6,275 7,419 8,521 9,723 11,153
Minority Interest 54 62 72 72 90 109 127
Debt 2,709 1,692 832 826 626 426 326
Deferred Tax 250 166 103 68 65 65 65
Total Capital Employed 7,880 7,250 7,283 8,386 9,302 10,323 11,671
Gross Fixed Assets 7,735 7,694 3,265 3,702 4,721 5,321 5,921
Less: Accum. Depriciation 4,161 4,694 538 994 1,542 2,194 2,925
Net Fixed Assets 3,573 3,000 2,728 2,707 3,180 3,127 2,996
Capital WIP 22 12 45 320 300 200 100
Investments 18 325 435 416 1,058 1,725 2,669
Current Assets 6,799 6,285 6,769 7,488 7,483 8,277 9,187
Inventory 3,158 2,825 3,046 3,360 3,236 3,591 3,963
Debtors 2,357 2,369 2,691 3,010 3,032 3,357 3,738
Cash and Bank Balance 256 147 159 141 211 231 258
Loans and Advances 1,029 944 874 977 1,005 1,098 1,229
Curr. Liability & Provisions 2,532 2,373 2,694 2,546 2,718 3,006 3,282
Current Liabilities 1,897 1,768 1,966 1,727 1,926 2,118 2,296
Other Long Term Liab. & Provs. 635 604 728 818 793 888 986
Net Current Assets 4,267 3,913 4,075 4,943 4,765 5,271 5,906
Appl. of Funds 7,880 7,250 7,283 8,386 9,302 10,323 11,671

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 Nilkamal Limited

Financials and valuations

Ratios
Y/E March 2014 2015 2016 2017 2018E 2019E 2020E
Basic (INR)
EPS 31.5 33.8 76.4 82.1 87.3 100.9 120.6
Cash EPS 66.5 72.3 113.3 116.0 124.0 144.6 169.6
BV/Share 326.2 357.2 420.5 497.2 571.0 651.6 747.4
DPS 4.0 4.5 7.0 11.0 12.0 18.0 22.0
Payout (%) 14.7 15.5 10.3 15.1 15.5 20.1 20.5
Valuation (x)
P/E 53.3 49.7 22.0 20.5 19.2 16.7 13.9
Cash P/E 25.3 23.2 14.8 14.5 13.5 11.6 9.9
P/BV 5.2 4.7 4.0 3.4 2.9 2.6 2.2
EV/Sales 1.6 1.4 1.3 1.3 1.2 1.1 1.0
EV/EBITDA 17.5 17.3 11.2 11.1 10.3 9.1 7.8
Dividend Yield (%) 0.2 0.3 0.4 0.7 0.7 1.1 1.3
FCF per share 86.3 91.8 94.9 18.5 76.0 75.8 87.7
Return Ratios (%)
RoE 9.7 9.9 19.7 17.9 16.3 16.5 17.2
RoCE 10.3 10.0 17.1 16.6 15.3 15.7 16.6
Working Capital Ratios
Asset Turnover (x) 2.2 2.6 2.6 2.4 2.3 2.2 2.2
Inventory (Days) 66 54 58 61 56 57 56
Debtor (Days) 49 46 51 54 53 53 53
Creditor (Days) 21 18 21 20 20 20 20
Leverage Ratio (x)

Consolidated - Cash Flow Statement (INR Million)

Y/E March 2014 2015 2016 2017 2018E 2019E 2020E
Adjusted EBITDA 1,571 1,536 2,300 2,317 2,463 2,790 3,235
(Inc)/Dec in Wkg. Cap. 265 250 -45 -660 247 -485 -609
Tax Paid -143 -238 -515 -578 -625 -725 -870
Other operating activities -11 6 105 9 49 52 52
CF from Operations 1,681 1,554 1,845 1,088 2,134 1,632 1,809
(Inc)/Dec in FA & CWIP -393 -185 -430 -812 -1,000 -500 -500
Free Cash Flow 1,288 1,369 1,416 276 1,134 1,132 1,309
(Pur)/Sale of Investments -71 -21 -123 12 -642 -668 -944
Others 77 52 139 104 66 119 176
CF from Investments -387 -155 -414 -696 -1,576 -1,049 -1,267
Inc/(Dec) in Net Worth 0 0 0 0 0 0 0
Inc/(Dec) in Debt -814 -1,112 -1,021 -185 -200 -200 -100
Interest Paid -434 -328 -208 -145 -88 -60 -46
Dividend Paid -65 -69 -191 -79 -202 -303 -370
Others 0 0 0 0 0 0 0
CF from Fin. Activity -1,312 -1,508 -1,419 -409 -489 -562 -515
Inc/Dec of Cash -18 -109 12 -18 69 21 26
Add: Opening Balance 274 256 147 159 141 211 231
Closing Balance 256 147 159 141 210 231 258

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" Analyst ownership of 1% or more securities No
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or its associates maintains arm's length distance with Research Team as all the activities are segregated from MOSL research activity and therefore it can have an independent view with regards to subject company for which Research Team have
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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
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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
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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
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Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022-3980 4263; www.motilaloswal.com. Correspondence Address: Palm Spring Centre, 2nd Floor,
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Registration details of group entities.: Motilal Oswal Securities Ltd. (MOSL): INZ000158836 (BSE/NSE/MSE); CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412 . AMFI: ARN 17397. Investment Adviser:
INA000007100. Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670) offers PMS and Mutual Funds products. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.:
INP000004409) offers wealth management solutions. *Motilal Oswal Securities Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs 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

November 2017