17 October 2018

Update | Sector: Radio

Music Broadcast
BSE SENSEX S&P CNX
34,780 10,453 CMP: INR325 TP: INR420 (+29%) Buy
Operating leverage at play
EBITDA to grow 21% over FY18-21E

The Music Broadcast Ltd (MBL) stock is down ~30% from its peak YTD—partly due to
concerns over growth visibility for the radio medium at large, and MBL in particular.
Stock Info
RADIOCIT IN
Also, MBL posted weak 10% revenue growth in FY18 and 8% revenue CAGR in 1HFY19,
Bloomberg
57
which is much lower than our expectation. In this context, we hosted MBL management
Equity Shares (m)
18.6 / 0.3
for an investor roadshow to discuss the radio sector outlook and MBL’s growth
M.Cap.(INRb)/(USDb)
52-Week Range (INR) 458 / 282
prospects. Key takeaways:
a.) As per management, the current low growth is largely due to weak retail/local, real
1, 6, 12 Rel. Per (%) 8/-17/-23
estate and government advertisements, which is witnessing slow recovery post
12M Avg Val (INR M) 14
demonetization/GST. Management also reaffirmed that over the next three years,
Free float (%) 27.9
company should grow revenues at 13-15% CAGR and PAT at 20-25% led by steep
operating leverage coming from 90% fixed cost.
Financials Snapshot (INR b)
b.) TV players have seen swift recovery from demonetization/GST due to FMCG
Y/E Mar 2018 2019E 2020E
companies, which contribute less than 10% to the radio sector v/s over 50% for the
Sales 3.0 3.4 3.9 TV industry. However, radio has not lost its sheen in India where listenership
EBITDA 1.0 1.2 1.4 remains steady at 54mins for 5.1days/week—radio is viable for advertisers due to its
NP 0.5 0.7 0.9 reach and also because it’s a cost efficient medium.
EPS (INR) 9.1 11.9 15.8 c.) Even in the US/UK, reach as well as time spent on radio has remained strong driven
EPS Gr. (%) 41.1 31.7 32.4 by healthy radio ad growth. In fact, radio ad growth is higher than the growth in the
BV/Sh. (INR) 105.1 109.6 125.4 overall media spends.
RoE (%) 9.0 11.0 13.4 d.) With majority of the heavy lifting behind (license renewal and new phase III station
RoCE (%) 9.2 10.8 13.5 launch), both operating cost and capex has peaked out in FY18, driving strong
P/E (x) 35.8 27.2 20.6 operating leverage, OCF generation and RoCE improvement.
P/BV (x) 3.1 3.0 2.6 e.) The recent acquisition of the Kolkata station (awaiting Ministry of Information and
EV/EBITDA (x) 18.8 15.8 11.9 Broadcasting approval) and potential consolidation opportunities should further fuel
growth. MBL’s high-cash generation should also drive investor returns in the form of
Shareholding pattern (%) dividend and buy backs.
As On Sep-18 Jun-18 Sep-17
Promoter 72.1 71.4 71.4 Reaffirm 13-15% revenue CAGR over next three years
DII 8.1 8.1 8.3 The expected healthy growth of 13-15% over the next three years should be
FII 3.5 4.0 5.1 driven by a mix of pricing and volume growth across markets, which are in
Others 16.2 16.5 15.2 different growth phases. Of MBL’s 39 stations, 12 are in the ‘matured’ phase, 16
FII Includes depository receipts are in the ‘growth’ phase and around 11 are ‘new’. This mix of
matured/growth/new should fuel revenue growth of about 8%/12%/25% over the
Stock Performance (1-year)
next 2-3 years. Growth for stations in the ‘matured’ phase would be fueled 2/3 by
Music Broadcast
Sensex - Rebased pricing and 1/3 by volume; while stations in the ‘growth’ phase would be driven
540 2/3 by volume. The ‘new’ phase III stations should be purely volume led. The
470 recent weak environment has curtailed price increase opportunities; however,
400 management highlighted that the company still took 6-8% price increase in the
330 last 2-3 years. Therefore, if the market environment improves, it should be able to
260 increase prices further. The recently announced Kolkata acquisition should also
Jul-18
Apr-18
Jan-18
Oct-17

Oct-18

contribute 10% to the growth and can be scaled to company level margin in two
years. The completion of lock-in period in the radio market has opened up
acquisition opportunities. With limited buyers in the market, MBL is in a favorable
position as it has a healthy net cash position of INR2.2b. We expect 14% revenue
CAGR over FY18-21E taking its revenue to INR4.4b.

Aliasgar Shakir – Research Analyst (Aliasgar.Shakir@motilaloswal.com); +91 022 6129 1565

Hafeez Patel – Research Analyst (Hafeez.Patel@motilaloswal.com); +91 22 3010 2611
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.
 Music Broadcast

Radio not losing its sheen

Management shared global, as well as Indian references to indicate the strength of
radio viewership and advertisement. Radio’s reach has increased from 27% in Phase
I period to 78% in Phase III, which has clearly increased its marketability for local and
national advertisers. Radio remains the most efficient advertisement medium in
terms of cost per thousand impressions (CPM)—being 1/3 the cost of TV, offering
attractive value proposition for the advertiser. Currently, in India radio garners
54mins of listenership for 5.1days. Globally, in developed markets like the US and
the UK where digital penetration is high, radio has a reach of 90%. In the US, weekly
listenership is an average 12hours across age groups and continues to remain the
second fastest growing ad medium after digital in the market.
Strong asset monetization to continue over next three years
With large part of the heavy lifting behind in terms of capex and opex investment,
management highlighted that the inherent 90% fixed-cost nature of the industry
should drive EBITDA/PAT growth. With an average 6-8% inflationary growth in fixed-
cost, even if revenue growth is 12-14%, EBITDA growth could be over 18-20%. We
have built in revenue CAGR of 14% for FY18-21E and operating cost CAGR of 9%,
which gives an EBITDA growth of 21% over FY18-21E. Even after assuming INR350m
capex towards Friends FM (Kolkata station), overall cumulative capex over FY18-21E
should be INR526m, thus allowing healthy free cash flow (FCF) generation of
INR565m/INR890m in FY19/20E and RoIC of 14% and 19%, respectively. We have
not factored in earnings from the Kolkata station yet, even though we have factored
in the capex.
Revised earnings, but maintain TP
We have revised down our revenue/EBITDA by 2%/4% for FY19E and 2%/5% for FY20E,
given the weak 1HFY19. The stock is trading at a P/E and EV/EBITDA of 20x and 12x on
FY20E; however, excluding cash of INR3b in FY20, it is trading at a P/E of 16x with
potential PAT growth of 30% and RoIC potential of ~25% in three years. Although the
overall media sector has seen de-rating due to concerns about digital evolution, the
radio segment appears well poised for sustainable growth, primarily as it continues to
offer attractive value proposition for advertisers and enjoy good listenership. We arrive
at a TP of INR430 on 15x EV/EBITDA (v/s INR450). Maintain Buy.
Exhibit 1: Summary of estimate changes
FY19E FY20E
Revenue (INR m)
Old 3,417 3,930
Actual/New 3,367 3,852
Change (%) -1.5 -2
EBITDA (INR m)
Old 1,199 1,501
Actual/New 1,153 1,431
Change (%) -3.9 -4.7
EBITDA margin (%)
Old 35.1 38.2
Actual/New 34.2 37.1
Change (bp) -85bps -107bps
Net Profit (INR m)
Old 694 925
Actual/New 663 878
Change (%) -4.4 -5
EPS (INR)
Old 12.5 16.6
Actual/New 11.9 15.8
Change (%) -4.4 -5
Source: MOSL, Company

17 October 2018 2
 Music Broadcast

Story in charts
Exhibit 2: Revenue and EBITDA margin trend (INR m)
Revenue (INR m) EBITDA margin (%)

39.2 41.7
36.9 36.0 36.6 36.0 34.4
32.2 29.0 31.5 28.8 30.5 31.5 31.9 30.6
24.2 24.9
430

513

564

502

455

555

648

590

628

692

728

666

703

758

762

759

757
1QFY15

2QFY15

3QFY15

4QFY15

1QFY16

2QFY16

3QFY16

4QFY16

1QFY17

2QFY17

3QFY17

4QFY17

1QFY18

2QFY18

3QFY18

4QFY18

1QFY19
Source: MOSL, Company

Exhibit 3: Revenue from new stations on an uptrend (INR m) Exhibit 4: EBITDA mix of legacy and new stations (INR m)

Legacy stations Phase III stations Phase III stations

Legacy stations
EBITDA margin % (Legacy stations)
48 48 55
68 38.8%
36.0% 0 36.2%
35.0% 34.1% 12
37
710 714 705 256 273
689 233 243 249
666
-11 -13 -10
1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19
Source: MOSL, Company Source: MOSL, Company

Exhibit 5: Revenue to witness 14% CAGR over FY18-20E

Revenues (INR m) YoY growth (%)
30%

20%
13% 12% 13% 14%
12% 10%

1,222 1,381 1,542 2,008 2,255 2,714 2,983 3,367 3,852

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19E FY20E

Source: MOSL, Company

17 October 2018 3
 Music Broadcast

Exhibit 6: Revenue growth accelerated by new stations (INR m) Exhibit 7: EBITDA mix from new stations to improve (INR m)

Phase II - 28 stations Phase III Batch 1 - 11 stations Phase III Batch 1 - 11 stations
Phase II - 28 stations
Combined EBITDA Margins
364
273 37%
188 35% 34% 33% 34%
31 31%
118
- 49

623 782 1,004 1,008 1,104 1,312

2,008 2,255 2,683 2,795 3,094 3,488
(92) (37)
FY15 FY16 FY17 FY18 FY19E FY20E FY15 FY16 FY17 FY18 FY19E FY20E

Source: MOSL, Company Source: MOSL, Company

Exhibit 8: Overall ad rates and volumes both increasing

steadily Exhibit 9: Overall capacity utilization levels to increase (%)

Air time sold (hrs in 000's) Ad Rates/10 sec (INR) 74%

66%
223 230 223 226 230 58% 59%
197 212 52%
178 188 45% 48% 45%
42%
47.4
42.0
37.2
32.8
26.3 28.1
19.1 20.4 21.8
FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19E

FY20E

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19E

FY20E
Source: MOSL, Company Source: MOSL, Company

Exhibit 10: Steady rise in FCF and FCF yield Exhibit 11: Return ratios to improve from FY19 (%)
ROE (%) ROCE (%) ROIC (%)
FCF (INR m) FCF Yield (%) 138%
5% 6%
4% 2%
2% 3% 23%
22%
623 815 19%
327 515 339 779 13% 13% 15%
13%
-2,224 13%

13% 11%
9% 9%
-15% 11% 13%
27%
10% 9%
FY14 FY15 FY16 FY17 FY18 FY19E FY20E
FY15 FY16 FY17 FY18 FY19E FY20E
Source: MOSL, Company Source: MOSL, Company

17 October 2018 4
 Music Broadcast

Exhibit 12: Media consumption

MBL Financial Model
Radio Operating Leverage Phase 1 Phase 2 Phase 3
2001-05 2006-10 2010-15 2016-18 2019-20
Operating Revenues 100 100 100 100 100
Employee Cost 6 27 26 23 22
License Fess 102 6 5 7 6
Royalty 13 12 4 4 3
Other Expenses 67 55 40 34 32
Total Expenses 189 101 76 68 63
Operating Profit -89 -1 24 32 37
Source: Company, MOSL

Exhibit 13: Radio reach in India

Phase 1 Phase 2 Phase 3
2001-2005 2005-2015 2015-2030
Cities 12 86 350
Channels
Urban Population (Cr) 7.55 12.9 21.9
% Reach 27% 46% 78%
% Radio to M & E 0.90% 3% 6%-7%
Source: Company, MOSL

Exhibit 14: Media consumption Exhibit 15: Preferred medium for radio consumption
Average Frequency (Days Per Week) Preferred Medium for Radio Consumption
Average Minutes/Day (Delhi, Mumbai & Bangalore)

78 3% 6%
54 55 Home
19%
30
Car
Work
5.1 3.8 3.8 4.7 72% Other

Listen To Radio Surfing the Reading Social

Internet Newspaper Networking All stations Listenership Share % in Mumbai, Delhi &
Source: Nielsen Research Source: Nielsen Research

Exhibit 16: Day part media consumption

Day Part Media Consumption
Radio Newspaper TV

58%
52% 52%

36%
30%
22% 23% 22% 24%
21% 22%
15% 27% 13%
12% 20% 17% 11%
13% 20% 7% 5% 4%
12% 3% 2% 0%
1%
0%
7AM-9AM 9AM-11AM 11AM-1PM 1PM-3PM 3PM-5PM 5PM-7PM 7PM-9PM 9PM-11PM 11PM-1AM 1 AM
Onwards
Source: Nielsen Research

17 October 2018 5
 Music Broadcast

Exhibit 17: RADIO - most efficient CPT medium

TV Print Radio Digital Videos RADIO - Most Efficient Cost Per Thousand (CPT) Medium

898
761 762
699

350
250 281 246.5
188.5 185.5 163.5 117.5
130 85.5 80 124 131.5
40 33 32

All India 8 Metros 1 mn+ Towns 0.1 to 1 mn Towns <0.1 mn Towns

Note: CPT shared is directional, basis industry prevailing rates on medium. Radio rates are applied on 4 RAM markets. Source: Industry

Exhibit 18: Hockey Stick - Build/ Scale/ Sustain

MBL + Crystal (In Crores) Net Revenue EBITDA

Setup Phase & Expansion Learning &

Foot on acceleration 298
of Stations Consolidation
271
225
203
152 160
131
88 87 109 91 97
75 79 78
56 58
39
23 31
13 -2 2 17
16 -11
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Source: Company

Exhibit 19: US radio listener profile

Age Groups Millenials Gen X Boomers Hispanics African Americans
(18-34) (35-49) (50-64) (12+) (12+)
Number of Listeners (million) 66.5 57.4 58 40 31.1
Weekly Reach 92% 95% 94% 97% 92%
Male/Female Split
Male 52% 53% 54% 54% 48%
Female 48% 47% 46% 46% 52%
Weekly Time Spent (minutes) 669 815 906 747 767
Top Daypart 3PM-7 PM 6AM-10AM 10AM-3PM 10AM-3PM 3PM-7 PM
#1 Format Country Country Country Mexican Urban Adult
Regional Contemporary
% of Listening taking place out of home 75% 75% 66% 70% 65%
% of adult listeners who are full time employees 55% 72% 61% 57% 51%

Source: Nielsen, MarketingCharts.com

17 October 2018 6
 Music Broadcast

Exhibit 20: Weekly radio reach in the UK

90.1% of the adult (15+) UK population tuned

into their selected radio stations each week in
second quarter of 2016

91.7% 90.8%

89.9% 90.1%
89.8%
89.4%

Q2 2011 Q2 2012 Q2 2013 Q2 2014 Q2 2015 Q2 2016

Source: RAJAR

Exhibit 21: Where do Americans discover music?

49% of Americans discover Music on Radio

49%
40%
27% 25% 23%
14%

Radio(over the air) Friends/Relatives Online Music Services Social Media Online Radio Satellite Radio

Note: Based on a survey of 3000 U.S. consumers aged 13+ conducted in August 2017 Source: Nielsen Music 360

Exhibit 22: Using radio while in the car Exhibit 23: US ad spending trends

Using Radio While in the Car US Ad Spending Trends*, by Medium, 2017

11.6%
Drivers using AM/FM
18%
Radio while in the car 5.9%
3.8% 4.6%

Drivers not using -3.0% -3.5%

AM/FM Radio while
82% in the car Overall TV Digital Radio Out of Print
Home

Source: Edison Research/ Tricon Digital Source: Standard Media Index, MarketingCharts.com
Note: *Standard Media Index data is sourced directly from advertising agencies' billing systems, and is then aggregated to show the combined
picture of direct agency ad spend across different types of media. It includes all media bookings from the participating agency groups and
covers up to 80% of total agency spend across 15 global markets.

17 October 2018 7
 Music Broadcast

Financials and Valuations

Standalone - Income Statement (INR Million)
Y/E March FY14 FY15 FY16 FY17 FY18 FY19E FY20E
Total Income from Operations 1,542 2,008 2,255 2,714 2,983 3,367 3,852
Change (%) 11.7 30.3 12.3 20.4 9.9 12.9 14.4
Total Expenditure 1,118 1,385 1,473 1,802 2,012 2,214 2,421
% of Sales 72.5 69.0 65.3 66.4 67.4 65.8 62.9
EBITDA 424 623 782 913 971 1,153 1,431
Margin (%) 27.5 31.0 34.7 33.6 32.6 34.2 37.1
Depreciation 155 157 167 197 263 269 282
EBIT 269 466 614 716 708 884 1,149
Int. and Finance Charges 57 62 207 190 150 30 0
Other Income 31 67 148 44 194 161 194
PBT bef. EO Exp. 243 471 555 570 752 1,014 1,343
EO Items 0 0 -136 0 0 0 0
PBT after EO Exp. 243 471 420 570 752 1,014 1,343
Total Tax 0 0 143 203 235 351 465
Tax Rate (%) 0.0 0.0 34.2 35.7 31.2 34.6 34.6
Reported PAT 243 471 276 367 517 663 878
Adjusted PAT 243 471 366 367 517 663 878
Change (%) 109.4 93.5 -22.3 0.3 41.1 28.2 32.4
Margin (%) 15.8 23.4 16.2 13.5 17.3 19.7 22.8

Standalone - Balance Sheet (INR Million)

Y/E March FY14 FY15 FY16 FY17 FY18 FY19E FY20E
Equity Share Capital 389 389 420 571 571 556 556
Total Reserves -283 187 1,680 4,911 5,428 5,536 6,415
Net Worth 106 576 2,100 5,481 5,999 6,092 6,970
Total Loans 1,282 2,932 2,242 1,509 499 -1 -1
Deferred Tax Liabilities 0 0 -316 -252 -182 0 0
Capital Employed 1,388 3,507 4,026 6,738 6,316 6,091 6,969
Gross Block 2,166 2,189 2,471 3,480 3,596 4,005 4,063
Less: Accum. Deprn. 1,850 2,002 167 364 627 896 1,177
Net Fixed Assets 317 187 2,304 3,116 2,969 3,109 2,886
Capital WIP 3 3 657 0 0 0 0
Total Investments 0 0 147 268 1,559 1,559 1,559
Curr. Assets, Loans&Adv. 1,380 3,787 1,474 3,975 2,276 1,886 3,051
Account Receivables 628 772 763 817 1,104 1,153 1,214
Cash and Bank Balance 339 543 159 2,679 762 387 1,471
Loans and Advances 413 2,472 552 480 410 346 366
Curr. Liability & Prov. 311 470 554 621 488 463 525
Account Payables 231 339 223 329 223 231 264
Other Current Liabilities 55 94 279 224 222 186 209
Provisions 26 36 53 69 43 46 52
Net Current Assets 1,069 3,317 919 3,354 1,788 1,424 2,525
Appl. of Funds 1,388 3,507 4,026 6,738 6,316 6,091 6,969
E: MOSL Estimates

17 October 2018 8
 Music Broadcast

Financials and Valuations

Ratios
Y/E March FY14 FY15 FY16 FY17 FY18 FY19E FY20E
Basic (INR)
EPS 6.3 12.1 8.7 6.4 9.1 11.9 15.8
Cash EPS 10.2 16.1 12.7 9.9 13.7 16.8 20.9
BV/Share 2.7 14.8 50.0 96.1 105.1 109.6 125.4
DPS 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Payout (%) 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Valuation (x)
P/E 26.9 37.4 50.6 35.8 27.2 20.6
Cash P/E 20.1 25.6 32.9 23.8 19.4 15.6
P/BV 22.0 6.5 3.4 3.1 3.0 2.6
EV/Sales 10.4 9.1 6.4 6.1 5.4 4.4
EV/EBITDA 33.6 26.4 19.0 18.8 15.8 11.9
Dividend Yield (%) 0.0 0.0 0.0 0.0 0.0 0.0 0.0
FCF per share 5.7 10.9 -39.0 9.0 6.0 9.9 15.6
Return Ratios (%)
RoE NM 138.0 27.3 9.7 9.0 11.0 13.4
RoCE 21.9 21.8 12.8 8.6 9.2 10.8 13.5
RoIC 24.9 23.3 13.4 13.4 12.5 14.2 18.6
Working Capital Ratios
Asset Turnover (x) 1.1 0.6 0.6 0.4 0.5 0.6 0.6
Debtor (Days) 149 140 123 110 135 125 115
Creditor (Days) 55 62 36 44 27 25 25
Leverage Ratio (x)
Net Debt/Equity 8.9 4.1 0.9 -0.3 -0.3 -0.3 -0.4

Standalone - Cash Flow Statement

Y/E March FY14 FY15 FY16 FY17 FY18 FY19E FY20E
OP/(Loss) before Tax 243 471 555 570 752 1,014 1,343
Depreciation 155 157 167 197 263 269 282
Interest & Finance Charges 57 62 207 190 150 30 0
Direct Taxes Paid -4 7 -104 -85 -235 -351 -465
(Inc)/Dec in WC -77 -54 8 -68 -351 -10 -18
CF from Operations 373 643 833 804 579 952 1,142
Others -9 7 -227 -15 -123 21 -194
CF from Operating incl EO 364 650 606 789 456 973 948
(Inc)/Dec in FA -37 -27 -2,830 -274 -116 -409 -59
Free Cash Flow 327 623 -2,224 515 339 565 890
(Pur)/Sale of Investments 0 0 -134 -109 -1,291 0 0
Others 139 -1,871 2,400 65 194 161 194
CF from Investments 101 -1,898 -564 -319 -1,213 -248 136
Issue of Shares 0 0 0 3,823 0 -570 0
Inc/(Dec) in Debt -203 1,649 -88 -1,557 -1,010 -500 0
Interest Paid -56 -51 -227 -244 -150 -30 0
Dividend Paid 0 0 0 0 0 0 0
Others 0 0 0 29 0 0 0
CF from Fin. Activity -259 1,599 -316 2,050 -1,159 -1,100 0
Inc/Dec of Cash 206 351 -274 2,521 -1,917 -375 1,084
Opening Balance 133 192 432 159 2,679 762 387
Closing Balance 339 544 159 2,679 762 387 1,471

17 October 2018 9
 Music Broadcast

NOTES

17 October 2018 10
 Music Broadcast

Explanation of Investment Rating

Investment Rating Expected return (over 12-month)
BUY >=15%
SELL < - 10%
NEUTRAL < - 10 % to 15%
UNDER REVIEW Rating may undergo a change
NOT RATED We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst becomes inconsistent with the investment rating legend, the Research Analyst shall within 28 days of the
inconsistency, take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
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Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial
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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
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL
in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”,
of which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOSL has not received any compensation or other benefits from third party in connection with the research report
10 MOSL has not engaged in market making activity for the subject company
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The associates of MOSL may have:

- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on
the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOSL
even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.

The associates of MOSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOSL also earns DP income from clients
which are not considered in above disclosures.
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.
Terms & Conditions:
This report has been prepared by MOSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and may
not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of
MOSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature. The
information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty, representation
of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The report is
prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments for
the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOSL will not treat recipients as customers by
virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed,
in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose
and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report
constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities
discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives,
financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this document
should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including
the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be
suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade securities - involve substantial
risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions
contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as
endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make modifications and
alternations to this statement as may be required from time to time without any prior approval. MOSL, its associates, their directors and the employees may from time to time, effect
or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to perform investment
banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a separate, distinct and
independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already
available in publicly accessible media or developed through analysis of MOSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the
views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other
person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of
or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject MOSL
to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of
investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. Neither the Firm, not its directors, employees,
agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in
connection with the use of the information. The person accessing this information specifically agrees to exempt MOSL or any of its affiliates or employees from, any and all
responsibility/liability arising from such misuse and agrees not to hold MOSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOSL or
any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and
delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022-3980 4263; www.motilaloswal.com.
Correspondence Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 3080 1000. Compliance Officer:
Neeraj Agarwal, Email Id: na@motilaloswal.com, Contact No.:022-38281085.
Registration details: MOSL: SEBI Registration: INZ000158836 (BSE/NSE/MCX/NCDEX); 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, Insurance and IPO 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.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench. The existing registration no(s) of MOSL would be used until receipt of new MOFSL registration numbers.

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