BSE SENSEX
37,104
S&P CNX
10,983
Piramal Enterprises
CMP: INR1,965
Moderating growth
12 September 2019
Annual Report Update | Sector: Financials - NBFC
TP: INR2,400 (+22%)
Buy
Financial Services’ domination increases
The liquidity crisis, lag impact of demonetization, RERA implementation and stress
in the Real Estate financing space has weighed down the growth of PIEL’s Financial
Services (FS) business. FY19 saw PIEL’s customer assets grow by 34% YoY to
INR566b v/s 50%+ in the past few years. Nevertheless, dominance of FS in overall
revenue and operating profitability continue to rise with share of 53%/67% v/s
47%/67% in FY18
.
Pressure on margins (partially led by move towards low yielding Retail Housing
loans) and cost of Retail rollout weighed on profitability. ROAs declined ~50bp to
3.1%.
Stress loans increased with stage 2/3 loan share at 1.9% v/s 0.9% a year ago.
Outstanding provisions on the balance sheet stand at 1.8% of loans (stable YoY).
Real estate share of the loan book is down to 71.6% YoY v/s 75.9% a year ago,
helped by sharp rise in the share of Retail Housing loans (9.5% v/s 2.9% a year ago).
In the FS business, banks (71%), mutual funds (11%) and insurance companies (8%)
are the largest sources of funding. The share of CPs is down to 12% v/s 18% a year
ago. At consolidated level, the mix between floating and fixed rate borrowing is
75:25 v/s 43:57 a year ago and at the FS business level, it is 60:40 v/s 50:50 a year
ago. From an Asset Liability Management (ALM) perspective, ~84% (~90% in FY18)
of liabilities mature within three years, while ~55% (~58% in FY18) of assets mature
during the same period.
Networth allocation disclosure: (a) FS business at INR114b; (b) Pharma and IT
business at INR50b; (c) Shriram group’s outstanding value at INR72b; and (d) the
rest is DTA related with networth of INR36b. Outstanding aggregate debt of Pharma
and IT business stands at ~INR95b.
Pharma business: PIEL has implemented multiple initiatives for improvement in
margins, thereby resulting in global EBITDA margin increasing from 14% in FY13 to
23% in FY19. Domestic pharma business continues to show moderation and remains
a drag on overall pharma business’ profitability. Company sold the Imaging business
and booked loss of INR4.5b (pre-tax) at the consolidated level and INR12.9b (pre-
tax) at the standalone level (including investment write-off of INR8.4b)
In the current environment, PIEL is focusing on (a) reducing key large exposures
such as Lodha, Wadhwa and Omkar, (b) reducing share of short-term borrowings,
and (c) diversifying the loan mix to lower risk assets. The company also plans to
raise capital to reduce leverage – this would help lower its cost of funds in the
Financing business, which is currently elevated at 10.3%. Considering the
challenging environment, we expect the company to keep higher capitalization and
liquidity on the balance sheet. Buy with TP of INR2,400 (FY21E SOTP-based).
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
PIEL IN
199
392.1 / 5.5
3054 / 1652
14/-23/-31
1763
53.9
2021E
181.5
48.8
25.4
127.3
23.7
1,424
35.0
19.0
1.7
1.9
Financials Snapshot (INR b)
Y/E March
2019 2020E
Revenues
132.2 153.6
EBITDA
36.6
42.2
PAT
14.7
20.5
EPS (INR)
73.7 102.9
EPS Gr. (%)
BV/Sh. (INR)
Payout (%)
Valuations
P/E (x)
P/BV (x)
Div. Yield (%)
-5.2
1,275
38.0
32.8
1.9
1.2
39.5
1,342
29.2
23.5
1.8
1.3
Shareholding pattern (%)
As On
Jun-18 Mar-18 Jun-17
Promoter
50.8
51.4
51.4
DII
4.4
3.8
3.6
FII
27.5
28.0
28.7
Others
17.3
16.8
16.3
FII Includes depository receipts
Stock Performance (1-year)
Piramal Enterp.
Sensex - Rebased
3,300
2,700
2,100
1,500
Research Analyst:
Alpesh Mehta
(Alpesh.Mehta@MotilalOswal.com); +91 22 6129 1526 /
Tushar Manudhane
(Tushar.Manudhane@motilaloswal.com); +91 22 6129 1519
Piran Engineer
(Piran.Engineer@MotilalOswal.com); +91 22 6129 1539/
Ashish Chopra
(Ashish.Chopra@MotilalOswal.com); +91 22 6129 1530
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.
 Motilal Oswal Financial Services
Piramal Enterprises
Financial Services business growth moderates
Loan book diversifying; Simplifying structure
PIEL has all products in Real Estate financing— from early stage to LRD/LAP, etc. The
share of RE financing has declined to ~67% in FY19 from 85% in FY15. The share of
hospitality, corporate finance group and emerging corporate group increased to 23%
from 21% in FY18. Importantly, Retail Housing share has increased to ~9% from ~2% a
year ago.
The Lending business is managed by two subsidiaries and the parent. Customer asset
at Piramal Housing and Capital Finance stood (PHCFL) at INR403.7b, followed by
Piramal FinInvest Pvt Ltd (PFL) at INR118.2b and the rest (INR44.4b) is on the parent’s
balance sheet. PIEL plans to run down/sell off the parent lending business to step
down subsidiaries.
PIEL has invested INR5b (v/s INR1.9b) in alternate assets and ARC funds in its JVs (ARC
business – AUM of INR7.4b and alternative AUM INR92.7b). The alternative Asset
Fund Management business is in Partnership with APG, CPPIB and CDPQ, while the
ARC business is via a JV with Bain Capital (each party committing USD100m upfront).
We note that in addition to home loans, PIEL is also looking to add new Retail
Financing businesses in the near-to-medium term.
Out of the total customer
assets of INR566.7b -
INR404b (~71%) is on
PCHFL, INR118b (~21%) is
on PFL and INR44b (~8%) is
on the parent’s balance
sheet.
Capital allocation to FS business
Outstanding capital allocation to the FS business stands at INR220b (out of
networth of INR272.6b) – INR72b in Shriram Group (including FVOCI), INR114b
for the Lending business and INR35b for DTA. Net debt to equity of the FS
business stands at 3.9x (excluding investment in Shriram Group) and 2.2x
(including investment in Shriram Group).
PIEL allocated incremental INR50b (out of the INR70b raised from rights issue
and CCDs conversion) of capital to the Financial Services business during the
year.
Out of the total customer assets of INR566.7b, INR404b is on PCHFL, INR118b is
on PFL and INR44b is on the parent’s balance sheet. PIEL holds INR11b of ECL
provisions; of this, INR7.53b is on PCHFL, INR2.1b is on PFL and INR1.39b is on
the parent’s balance sheet.
Share of bank borrowings
increased to 71% from 49%
as of Sep’18.
Measures taken in a stressed liquidity situation (For Piramal Capital and
Housing Finance)
CPs down from INR165b in 1HFY19 to INR89b as of FY19.
Raised INR165b via NCDs and Bank loans during 2HFY19 (stressed liquidity
period).
Share of bank borrowings increased to 71% from 49% as of Sep’18.
Share of MF borrowings declined to 11% in Mar’19 v/s 29% in Sep’18.
Strategic priorities for the lending business
Loan diversification.
Reducing client concentration.
Improving borrowing mix.
Maintaining health asset quality.
Continuing to report highest returns.
12 September 2019
2
 Motilal Oswal Financial Services
Piramal Enterprises
Takeaways for Real Estate (RE) financing business
70% of the loan portfolio
comes in from Grade-A
developers.
As of FY19, company had relationships with 147 developers for 400+ projects
across India.
Disbursements for the NBFC segment stood at INR298b (+40% YoY), of which
INR112b was disbursed in 2HFY19. Of the INR298b, INR210b was disbursed for
the RE segment; of this, INR67b was disbursed in 2HFY19.
Repayments from clients during the year stood at INR167b; of this, nearly half
was repaid in 2HFY19. INR134b was refinanced from the RE division during the
year, of which, INR59b was done in 2HFY19.
GNPA % stands at 0.9% with provisions to loans at 1.9%. INR1.1b recovered
from two NPA accounts by bringing in a stronger developer on board to
complete the project.
97% of the RE portfolio is in Mumbai, Pune, Bengaluru, Hyderabad, Chennai and
NCR; 70% of the portfolio is towards Grade ‘A’ developers.
PIEL has 28 corporate
borrower groups on CFG
platform.
Takeaways for CFG division
CFG division covers Infrastructure, Renewables, Cement, Auto Components,
Hospitality, Logistics, Cash Management and sub sectors in Manufacturing and
Services segment.
CFG downsold/exited INR20.2b during the year.
In FY19, company acquired
INR5b portfolio from other
NBFCs/HFCs.
Takeaways for Housing Finance division
PIEL offers housing finance across 15 cities through 16 branches. It has
partnered with 740+ DSAs and 1,850+ connectors on the housing finance
platform.
Loans sanctioned and yet to be disbursed stood at INR25b. In FY19, company
acquired INR5b portfolio from other NBFCs/HFCs.
ATS was INR7m with ~59% of the customers being salaried individuals.
PCHFL Tier I ratio was
27.2%, marginally higher
than 26.9% reported in
FY18.
Other Highlights for FS business
IndiaRF (ARC) invested USD156m in a marine chemical company and USD144m
in a pharma and vaccine player.
JV with IVAHNHOE Cambridge (Piramal-Ivanhoe Residential Equity fund) for an
investment of INR5b for the smart city being developed by a leading RE
developer.
PCHFL Tier I ratio was 27.2%, marginally higher than 26.9% reported in FY18.
FS business employee strength was up from 545 to 1,330, largely led by the
Housing Finance business.
12 September 2019
3
 Motilal Oswal Financial Services
Piramal Enterprises
Exhibit 1: In the worst case scenario, 18 out of 242 deals in Residential Real Estate exposure require ‘Proactive measures’
Source: MOFSL, PIEL Annual Report
Exhibit 2: Top 10 developer exposure -1/3 of total
rd
Source: MOFSL, PIEL Annual Report
Source: MOFSL, PIEL Annual Report
12 September 2019
4
 Motilal Oswal Financial Services
Piramal Enterprises
Exhibit 3: Financials Services business snapshot
Source: MOFSL, PIEL Annual Report
Exhibit 4: No new product launched in FY19; Housing Finance, CFG and ECL gain momentum
Source: MOFSL, PIEL Annual Report
12 September 2019
5
 Motilal Oswal Financial Services
Piramal Enterprises
Exhibit 5: Evolving loan mix (%)
1
18
5
47
29
Mezz
1
21
9
47
22
CF
3
21
9
46
21
LAP/LRD
3
22
9
46
19
4
22
10
44
20
Corp
7
24
8
42
19
HL
9
23
6
45
NCD, 19
16
Term loans,
63
Exhibit 6: Borrowing mix by type of instrument (FY19)
CP, 12
Tier II, 2
Others, 5
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 7: Borrowing mix by source of funding (FY19)
Insurance/P
ension, 8
FII, 2
Corporate/
Others, 7
Exhibit 8: Mix of fixed and floating rate borrowings (%)
Floating
Fixed
40
32
60
MFs, 11
40
Banks, 71
51
63
54
54
49
37
46
46
60
68
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 9: GNPL ratio trend (%)
0.9 0.9
0.6
0.4
0.5
0.5 0.5
0.3 0.3
Exhibit 10: ALM pattern (INR b)
320
Total borrowings
245
153
65
43
276
207
168
Total loans & investments
0.4
0.2 0.2
0.4
< 1yr
Source: MOFSL, Company
1-3yr
3-5yr
>5 yr
Source: MOFSL, Company
Exhibit 11: Stage three assets increased (%)
Break up of assets (%)
High quality liquid assets
Stage 1
Stage 2
Stage 3
FY16
8.05
90.62
0.39
0.93
FY17
4.55
93.91
0.83
0.72
FY18
2.62
96.24
0.78
0.36
FY19
3.37
94.34
1.27
1.03
Exhibit 12: ECL trend
ECL
High quality liquid assets
Stage 1 (% of Stage 1 assets)
Stage 2 (% of Stage 2 assets)
Stage 3 (% of Stage 3 assets)
Total (% of total assets)
FY16
0.0
2.3
7.5
47.5
2.5
FY17
0.0
1.9
3.8
42.7
2.1
FY18
0.0
1.6
3.6
76.7
1.8
FY19
0.0
1.4
12.7
28.9
1.8
Source: MOFSL, Company
Source: MOFSL, Company
12 September 2019
6
 Motilal Oswal Financial Services
Piramal Enterprises
Key takeaways from FS business’ related subsidaries
Simplifying structure of lending business
Takeaways from Piramal Capital and Housing Finance Ltd. subsidiary’s AR
Entire real estate financing
and allied businesses
housed under PCHFL;
Outstanding loans of
INR403b
Second full year of operations - started on 10
th
Feb’17.
Registered as non-deposit taking HFC on 28
th
Aug’17.
Converted to a public company on 17
th
Oct’17.
Amalgamated Piramal Finance Limited and Piramal Capital Limited on 31
st
Mar’18. Amalgamation is factored on
Purchase Method
and resultant Goodwill
was INR102b.
Name changed to Piramal Capital and Housing Finance Limited on 12
th
Jun’18.
Impaired credit loans at INR1.4b (Fair value of security INR533m) v/s INR782m a
year ago. Provisions for these loans stand at INR875m v/s INR782m a year ago.
Stage 1 and 2 provisions at INR4.25b v/s INR3.22b a year ago.
Impairment Provisions on Investment book at INR1.59b v/s INR2.12b a year ago.
Letter of Comfort issued by the company stands at INR4.49b v/s INR10.2b a year
ago.
Loans transferred from PIEL (INR22b) and loans transferred to PFL (INR94b).
Outstanding undisbursed sanctions at INR8.65b v/s INR3.75b.
Exposure to IL&FS Solar Power Limited at INR750m; provisions against the same
at INR6.4m.
Non-RE corporate and Infra
loans are under PFL;
Outstanding loans of
INR103b
Takeaways from Piramal FinInvest Private Limited
Incorporated on 8
th
Jun’94.
Impaired loans outstanding provisions at INR1.2b v/s NIL a year ago. Provisions
on investment book outstanding stands at INR735m.
Outstanding undisbursed sanctions at INR1,078m.
Loans transferred from PIEL (INR6.94b) and PCHFL stands at INR6.94b and
INR94b, respectively.
CAR of the company stood at 22% (109.3% a year ago). Tier-I of the company
stood at 20.75% (109.28% a year ago).
Top-20 borrowers contribute 43% to overall exposure.
Company has NIL NPA on the balance sheet.
12 September 2019
7
 Motilal Oswal Financial Services
Piramal Enterprises
Financials and Valuations – PFL and PCHFL
Exhibit 13: PFL key financials
INCOME STATEMENT
Y/E MARCH
Interest Income
Interest Expense
Net interest income
Change (%)
Other Operating Income
Net Income
Change (%)
Operating Expenses
Change (%)
Operating Profits
Change (%)
Total Provisions
% to operating income
PBT
Change (%)
Tax
Tax Rate (%)
PAT
Change (%)
BALANCE SHEET
Y/E MARCH
Networth
Borrowings
Change (%)
Other liabilities
Change (%)
Total Liabilities
Customer assets
Change (%)
Other assets
Change (%)
Total Assets
RATIOS
Y/E MARCH
Spreads Analysis (%)
Avg. Yield on loans
Avg. Cost of funds
Interest Spreads
Net Interest Margins
Profitability Ratios (%)
RoE
RoA
2018
12
0
12
18
30
1
29
0
0.0
29
5
17.9
24
(INR m)
2019
5,757
2,609
3,147
25,697.5
81
3,228
241
2,988
2,099
70.2
889
109
12.3
780
3,176.9
Exhibit 14: PCHFL key financials
INCOME STATEMENT
Y/E MARCH
Interest Income
Interest Expense
Net interest income
Change (%)
Other Operating Income
Net Income
Change (%)
Operating Expenses
Change (%)
Operating Profits
Change (%)
Total Provisions
% to operating income
PBT
Change (%)
Tax
Tax Rate (%)
PAT
Change (%)
BALANCE SHEET
Y/E MARCH
Networth
Borrowings
Change (%)
Other liabilities
Change (%)
Total Liabilities
Customer assets
Change (%)
Goodwill
Other assets
Change (%)
Total Assets
RATIOS
Y/E MARCH
Spreads Analysis (%)
Avg. Yield on loans
Avg. Cost of funds
Interest Spreads
Net Interest Margins
2018
425
159
265
254
520
493
27
0
0.0
27
-421
-1,563.6
448
(INR m)
2019
54,646
27,608
27,038
10,095.4
1,072
28,110
5,311.0
4,695
853.0
23,416
86,947.2
1,298
5.5
22,118
7,693
34.8
14,425
3,123.4
2018
496
0
0
496
389
107
496
2019
27,250
91,438
1,997
120,684
118,216
2,468
2,210.6
120,684
(%)
2019
9.7
5.7
4.0
5.3
2018
180,893
259,398
1,269
441,560
319,742
102,143
19,676
441,560
2019
195,309
323,086
24.6
2,830
123.0
521,225
403,666
26.2
102,568
14,991
-23.8
521,225
(%)
2019
15.1
9.5
5.6
7.5
2018
2018
Profitability Ratios (%)
RoE
Source: MOFSL, Company RoA
5.6
1.3
7.7
3.0
Source: MOFSL, Company
12 September 2019
8
 Motilal Oswal Financial Services
Piramal Enterprises
Takeaways from Piramal Asset Management Private Limited
First year of operations – started on 14
th
Jun’18.
Provides investment advisory in the non-real estate sector.
The company has established contributory trust - ‘Piramal Alternative
Opportunities Trust’.
Balance sheet size of just INR117b.
Networth negative at INR1.27m.
Reported loss of INR1.37m for the year.
Takeaways from Piramal Fund Management Private Limited
Provides investment advisory in the real estate sector.
Provides investment advisory to INDIAREIT Investment Management, Piramal
Asset Management Private Limited (Singapore) and IIFL Income Opportunities
Series Special Situation Fund.
The company has established contributory trust ‘Piramal Alternative
Opportunities Trust’.
Balance sheet size of just INR3b (INR3.4b a year ago).
Networth of INR746m (INR1.27b a year ago).
Reported loss of INR525m for the year (INR77m PAT a year ago).
Takeaways from Piramal Securities limited
First year of operations – started on 7
th
Jun’18.
Provides merchant banking services.
Balance sheet size of just INR115.8m.
Networth negative of INR50.4m.
Reported loss of INR148m for the year.
Dividend received from
Shriram Capital stood at
INR385m v/s INR76m a year
ago.
Takeaways from other subsidiaries’ annual report
Sold Piramal Imaging SA to Alliance Medical Group in Jun’18. The sale of
business resulted in a non-recurring and non-cash accounting charge of INR4.5b.
Piramal Phytocare Ltd. got amalgamated into Piramal Enterprises in May’18.
Other highlights from consolidated accounts
Goodwill increased INR3.1b to INR59.4b, largely on account of translation from
functional currency to reporting currency.
Other intangible assets on the balance sheet were largely stable at INR28.4b
(INR29.5b).
Consolidated debt to equity has increased to 2x v/s 1.57x a year ago, largely
driven by strong growth in the FS business (leading to higher borrowings), lower
profitability (due to loss on sale of Imaging business) and continued dividend
payout.
Undrawn credit lines at end-FY19 were at INR151b v/s INR179b a year ago.
Share of variable rate borrowings increased to 76% v/s 43% a year ago.
12 September 2019
9
 Motilal Oswal Financial Services
Piramal Enterprises
Parent level gearing increases to 0.9x
Standalone loans given grew 22% YoY led by investment in subsidiaries
One-off loss, Dividend
payment and reduction in
FV of Shriram investment
leading to increase in
gearing level
Parent balance sheet net debt to equity ratio of 0.9x
Debt to equity at parent level stands at 0.9x v/s 0.7x a year ago. Overall
networth declined from INR213b to INR195b and borrowings increased from
INR146b to INR175b.
Rise in the leverage is led by
Reduction in value of FVOCI in the Shriram group by ~INR5.4b (~INR1.85b in
SCUF and ~INR3.57b in SHTF),
Standalone loss of INR8.6b led by one-time write-off of INR12.9b (pre-tax)
due to selling of the Imaging business and marking down of investments,
Dividend (incl. tax) payment of ~INR5.4b, and
Increase in debt levels to infuse capital in PFL (INR62b of debt and INR26b of
equity).
During the year, the company received INR11b via proceeds from rights issue.
Related party loans
increased to INR105b v/s
INR55b a year ago.
Parent balance sheet loans up from INR87b to INR106b
In FY18, the standalone balance sheet had outstanding loans of INR86.5b;
however, of this, INR33b were ICDs. While outstanding loans have increased to
INR105.6b, the share of ICDs has declined drastically to INR1b.
Related party loans increased to INR105b v/s INR55b a year ago. Key net
additions during the year were (a) PFL: INR62b; and (b) Piramal Dutch IM Holdco
BV: INR27b (INR36.6b outstanding v/s INR9.6b year ago).
Key repayments during the year are (a) Piramal Healthcare INR16b (o/s NIL); (b)
Piramal Holdings INR11.5b (o/s NIL), and (c) Piramal Capital and Housing Finance
INR7.5b (o/s NIL).
We note that there are still customer assets worth ~INR44.4b (~INR100b) on the
parent balance sheet as of FY19 (FY18).
Exhibit 15: Loans to related parties (INR b)
FY18
FY19
62.2
36.6
16.0
-
Piramal
Healthcare
11.5
-
Piramal
Holdings
5.6 5.0
Piramal
Dutch
Holdings
9.6
0.5
Piramal
Dutch IM
Holdco
-
3.1
7.5
-
-
Piramal
Housing
Finance
-
0.4 0.3
1.0 0.9
Others
PEL Pharma DRG Holdco
PHL Finvest Convergence
Source: MOFSL, Company
12 September 2019
10
 Motilal Oswal Financial Services
Piramal Enterprises
Investment in subsidaries up +27% YoY
High impairment on sale of Imaging business
Overall investments in Subsidiaries, Associates, JVs and AIFs increased from INR107b
to INR136b, largely led by higher investments in Piramal Fininvest Pvt Ltd (PFL; PIEL’s
NBFC arm) by INR26b (Equity investment) and in AIFs by INR2.8b. Capital infusion in
PFL was partially helped by conversion of INR11b of loans to equity.
PIEL invested INR12.25b in Piramal Holding (Suisse), SA, via class B shares (voting) by
converting loans. Subsequently, company made impairment provision of INR12.9b on
the Imaging business, which was sold off.
PIEL also invested INR145m in equity instruments in Piramal Consumer Products
Private Ltd (domestic pharma business), INR200m in equity instruments in Piramal
Securities Ltd and INR500m in India Resurgence ARC Private Ltd (JV with Bain Capital).
Exhibit 16: Key investments (INR b)
FY17
FY18
65.0
65.0
26.1
13.9
0.1
PHL Fininvest
Piramal Dutch Holdings
N.V.
Piramal Capital and
Housing Finance
13.9
0.0
JVs
2.8
Source: MOFSL, Company; Note: JVs include Piramal Ivanhoe Residential Equity Fund 1 and India
Resurgence Fund – Scheme 2
Shriram Group investment
value recorded at INR72.5b
v/s INR75.6b a year ago.
Important transactions during the year with Shriram Group
Shriram Group investment value was recorded at INR72.5b v/s INR75.6b a year
ago. Decline in value is due to lower market price of SHTF and SCUF from
INR46.6b to INR41b, these investments are recorded at FVOCI. Shriram Capital
(Via Shrilekha Business Consultancy Pvt Ltd) is recorded at an amortized cost.
INR2.75b share of profit from Shriram Capital is considered in the consolidated
PAT; INR0.6b (INR0.5b) of dividend received from Shriram group during the
year.
Equity investment in
lending subsidiaries at
INR91b.
Important transactions during the year with Lending subsidiaries and AMC
Equity Investment (ex Shriram Group) into Lending subsidiaries put together
stands at INR91b (INR65b in PCHFL and INR26b in PFL) out of INR110b. Out of
the rest, INR13.9b is into Piramal Dutch Holdings N.V.
PIEL converted its INR11b of loans to PFL into equity shares. Total equity
investment into PFL during the year stood at INR26.1b v/s INR0.1b a year ago.
Further, the company has given INR62b of loans to PFL.
The company sold INR22.1b (INR30b a year ago) and INR6.9b (NIL a year ago) of
loans from parent balance sheet to PCHFL and PFL (both stepdown subsidiaries
of the company) in May’18.
PIEL’s investment into alternative asset management (own ventures) business
stands at INR3.4b v/s INR370m a year ago.
11
12 September 2019
 Motilal Oswal Financial Services
Piramal Enterprises
PIEL wrote off its cost of
equity (at the standalone
level) to the tune of
INR12.9b (pre-tax) for the
Imaging business; Loss at
the consolidated level was
reported at INR4.5b.
Important transactions during the year with other subsidiaries
Sold Piramal Imaging SA to Alliance Medical Group in Jun’18. The sale of
business resulted into a non-recurring and non-cash accounting charge of
INR4.5b at the consolidated level.
Break-up of INR4.5b loss – INR1.9b Intangible Assets (Neuraceq), INR1.3b
Molecules under development, INR142m Goodwill, INR1.3b other net assets and
INR80m cash consideration (loss on net sales consideration).
PIEL converted its INR12.3b loans to Piramal Holding (Suisse) SA into class B non-
voting shares. On account of the sale of its Imaging business (stepdown
subsidiary of Piramal Holding (Suisse) SA, PIEL wrote off its cost of equity (at the
standalone level) to the tune of INR12.9b (pre-tax).
PIEL converted its INR276m loans to DRG Analytics and Insights Pvt Ltd into
equity shares.
12 September 2019
12
 Motilal Oswal Financial Services
Piramal Enterprises
Multiple levers strenghten pharma margins
…with gradual growth in revenue
Pharma EBITDA margins continued to surpass previous highs to hit 23% in FY19.
The synergy benefit from acquired products and addition of new customers led
revenue growth as well as improvement in profitability of the global pharma business
(93% of pharma business).
While global pharma has been a key growth driver, PIEL has been building a
foundation for its India consumer product segment.
Niche products coupled
with synergy benefits from
acquired products drives
profitability.
EBITDA margin on firm footing
PIEL has considerably improved profitability of the pharma segment over the past
five years. EBITDA margin is up 1,720bp over FY14-19 to 20.5% in FY19. This is
largely due to (a) enhanced synergy of acquired brands, (b) increased traction in
high margin products (like Sevoflurane), (c) improved capacity utilization, (d)
backward integration of raw material, (e) broadening portfolio pushed through
existing distribution channel, and (f) cost rationalization.
Exhibit 17: EBITDA margin up ~200bp YoY
With ~90% of business
derived from complex
generics and CDMO,
profitability is not only
expected to be sustainable,
but should also enhance.
3.3
1.0
FY15
Healthcare EBITDA margin (%)
18.5
15.5
9.4
20.5
FY14
FY16
FY17
FY18
FY19
Source: MOFSL, Company
Revenue growth yet to pick up
About 75% of its order book
is from existing customers.
PIEL delivered 11% YoY growth in revenue to INR48b in FY19. Revenue CAGR has
been moderate over the past five years (including brand acquisitions). Growth was
led by global pharma, which comprises niche products that are difficult to
manufacture, sell and/or distribute. PIEL had full-year benefit of Levothyroxine
Sodium (injectable for Myxedoma Coma acquired in Jan’18). PIEL expanded its
portfolio by acquiring Yergesa (Capsule for Type I Gaucher and Niemann-Pick
disease) in Jun’18.
12 September 2019
13
 Motilal Oswal Financial Services
Piramal Enterprises
Exhibit 18: Revenue on moderate growth path
15.5
10.7
Healthcare Revenue (INRb)
12.3
YoY growth (%)
11.1
11.0
10.7
28
FY14
31
FY15
35
FY16
39
FY17
43
FY18
48
FY19
Source: MOFSL, Company
Consistency in regulatory compliance aids confidence of customers.
PIEL has successfully cleared two USFDA inspections in FY19, taking successful
inspections to 33 till date. Further, it had successful audits from other regulatory
agencies as well as customers provided comfort in terms of compliance risk.
Exhibit 19: Inspections snapshot
Financial Year
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
Total
USFDA
5
2
4
7
5
5
3
2
33
Inspecting Entities
Regulators
13
10
14
17
26
25
27
44
176
Customers
60
71
116
115
140
157
167
163
989
Source: MOFSL, Company
In FY19, PIEL established e-
commerce channel for India
consumer products.
Efforts towards building modern infrastructure for India consumer business
India consumer product business has been gradually declining for the past two years
to INR3.3b for FY19. Key developments in FY19 in this segment have been (a)
acquisition of marketing rights of Supradyn, Becozym C Forte and Benadon, (b)
launch of line extensions for Neko Soap 100gm and Naturolax A 10gm, (c) widening
of distribution network by tapping e-commerce, rural, exports and alternate
opportunities, (d) increasing the number of stockists in the channel, and (e) using
technology across internal operations to improve efficiency.
Exhibit 20: Downtrend in asset turnover pauses
Asset turnover has come in
at 55.6% in FY19 compared
to 51.6% in FY18. Better
capacity utilization has led
to improvement in asset
turnover.
0.71
0.74
0.73
Healthcare asset turnover (x)
0.55
0.56
0.52
FY18
FY19
FY14
FY15
FY16
FY17
Source: MOFSL, Company
12 September 2019
14
 Motilal Oswal Financial Services
Piramal Enterprises
Key takeaways from Chairman address to shareholders
Focus on quality, high liquidity on balance sheet and low gearing
Over the last 31 years, delivered revenue CAGR of 24%, net profit CAGR of 29%
and annual shareholder return of 28%.
“The unique combination of a strong balance sheet, uncompromising focus on
quality & compliance, pro-active risk management and our trusteeship approach
created maximum value for all stakeholders in tandem with our strong value-
driven culture, which has held us in good stead, despite the challenging industry
environment.”
On Financial Services business
Recognising the sector sentiment, shifted borrowing mix towards longer-term
sources of funds and significantly reduced the dependence on Commercial
Papers (CPs).
Continue to diversify our loan book and increase its granularity, as we aim to
reduce the overall risk profile.
Continue to constantly improve and transform business model with the
following key strategic priorities: (i) increase loan book diversification; ii) reduce
client concentration; (iii) improved borrowing mix; (iv) maintain a healthy asset
quality; and (v) deliver robust returns.
On Pharma and IT Services business
Similar to the risk monitoring and assessment framework set up in the Financial
Services business, company has implemented stringent controls with high focus
on compliance and quality in Pharma too.
The business is increasingly leveraging technology and analytics to augment
decision making in sales and operations and forging partnerships with leading e-
commerce players.
IT business:
In FY19, undertook a broad cost-reduction initiative to streamline
operating processes, flatten organisational structure, and prioritise resources
and investments on increasing client engagement and improving client
satisfaction.
12 September 2019
15
 Motilal Oswal Financial Services
Piramal Enterprises
Valuation Matrix
Rating
66
FY21E
Buy
Buy
Buy
Neutral
Buy
Buy
Neutral
Buy
Buy
CMP
(INR)
392
2,245
671
1,442
1,331
83
198
116
337
Mcap
(USDb)
35.3
85.6
24.5
38.4
11.2
2.3
0.9
0.6
2.0
P/E (x)
FY20E
13.7
24.2
20.3
32.6
14.5
10.3
16.4
12.8
13.8
FY21E
10.4
20.0
13.8
26.8
11.1
8.1
12.8
9.6
10.8
P/BV (x)
FY20E
1.6
3.6
2.3
4.2
2.4
1.1
1.8
1.4
1.7
FY21E
1.4
3.2
2.0
3.6
2.0
1.0
1.6
1.3
1.3
RoA (%)
FY20E
1.3
1.9
1.0
1.8
1.9
0.9
1.0
1.7
1.1
FY21E
1.5
1.9
1.3
1.8
2.1
1.0
1.1
1.7
1.2
RoE (%)
FY20E
12.0
15.9
12.0
13.2
18.6
11.5
12.3
11.9
13.0
FY21E
14.4
16.9
15.4
14.3
20.1
13.3
13.9
14.0
14.3
12.0
8.6
4.7
12.0
6.0
ICICIBC*
HDFCB
AXSB
KMB*
IIB
FB
DCBB
Equitas
RBL
Private Aggregate
SBIN (cons)*
Buy
274
34.1
8.3
7.7
0.9
0.8
0.6
0.7
11.7
PNB
Neutral
61
3.9
9.3
6.6
0.6
0.6
0.4
0.5
6.6
BOI
Neutral
64
2.5
-80.1
7.9
0.4
0.4
0.0
0.3
-0.5
BOB
Buy
94
5.1
8.2
4.3
0.6
0.5
0.4
0.7
6.4
CBK
Neutral
192
2.0
6.6
6.2
0.4
0.4
0.3
0.3
5.9
Public Aggregate
Banks Aggregate
HDFC*
Buy
2,042
47.8
22.4
16.5
2.8
2.1
1.7
1.7
13.3
LICHF
Buy
399
2.8
7.5
6.5
1.1
1.0
1.2
1.3
15.5
IHFL
UR
426
2.5
5.3
4.9
1.0
0.9
2.9
3.0
19.9
PNBHF
Buy
639
1.5
8.8
7.9
1.3
1.1
1.4
1.4
15.5
REPCO
Buy
317
0.3
7.7
7.2
1.1
1.0
2.2
2.1
15.7
Housing Finance
SHTF
Buy
994
3.1
8.5
7.7
1.3
1.1
2.4
2.5
15.7
MMFS
Buy
324
2.8
12.8
11.6
1.7
1.5
2.2
2.2
14.1
BAF
Neutral
3,371
27.1
38.2
30.9
8.0
6.5
3.5
3.4
23.2
CIFC
Buy
269
2.9
14.7
13.4
2.8
2.4
2.3
2.1
21.0
SCUF
Buy
1,342
1.2
8.4
7.4
1.2
1.1
3.5
3.6
15.4
LTFH
Buy
92
2.5
7.2
6.2
1.2
1.0
2.3
2.4
17.1
MUTH
Neutral
585
3.3
10.3
9.1
2.2
1.9
5.5
5.5
22.7
INDOSTAR
Buy
284
0.4
9.3
6.7
0.8
0.7
2.3
2.8
8.9
MAS
Buy
618
0.5
19.5
16.8
3.3
2.9
4.4
4.3
19.0
UR=Under Review*Multiples adj. for value of key ventures/Investments; For ICICI Bank and HDFC Ltd BV is adjusted for investments in
subsidiaries
# Div Yield based on FY16 expected dividend; UR: Under Review
13.5
15.9
19.5
15.1
14.5
15.3
13.9
23.3
19.2
15.3
17.2
22.1
11.1
19.0
12 September 2019
16
 Motilal Oswal Financial Services
Piramal Enterprises
Financials of Landing Business
INCOME STATEMENT
Y/E MARCH
Net Income
Change (%)
Operating Expenses
Change (%)
Operating Profits
Change (%)
Total Provisions
% to operating income
PBT
Change (%)
Tax
Tax Rate (%)
PAT
Change (%)
BALANCE SHEET
Y/E MARCH
Networth
Borrowings
Change (%)
Other liabilities
Change (%)
Total Liabilities
Customer assets
Change (%)
Other assets
Change (%)
Total Assets
RATIOS
Y/E MARCH
Spreads Analysis (%)
Avg. Yield on loans
Avg. Cost of funds
Interest Spreads
Net Interest Margins
Profitability Ratios (%)
RoE
RoA
2015
8,866
-28,549
37,416
473
1.3
36,943
12,930
35.0
24,013
2016
10,655
20.2
1,703
-106.0
8,952
-76.1
1,677
18.7
7,274
-80.3
2,856
39.3
4,419
-81.6
2017
15,990
50.1
3,208
88.3
12,782
42.8
1,550
12.1
11,232
54.4
4,485
39.9
6,748
52.7
2018
24,522
53.4
3,470
8.2
21,052
64.7
2,387
11.3
18,665
66.2
6,964
37.3
11,701
73.4
2019
32,734
33.5
5,550
59.9
27,184
29.1
3,244
11.9
23,941
28.3
8,551
35.7
15,390
31.5
2020E
37,637
15.0
7,099
27.9
30,538
12.3
3,669
12.0
26,869
12.2
9,662
36.0
17,207
11.8
2021E
45,834
21.8
8,918
25.6
36,916
20.9
5,780
15.7
31,136
15.9
11,284
36.2
19,852
15.4
(INR M)
2022E
55,478
21.0
11,427
28.1
44,051
19.3
7,803
17.7
36,248
16.4
13,266
36.6
22,982
15.8
2015
22,507
31,078
0
53,585
47,660
5,925
53,585
2016
27,811
109,052
250.9
0
136,862
133,380
179.9
3,482
-41.2
136,862
2017
32,784
231,789
112.5
0
264,574
249,750
87.2
14,824
325.7
264,574
2018
97,250
354,946
53.1
0
452,196
421,680
68.8
28,623
93.1
450,303
2019
114,420
473,443
33.4
0
587,863
566,240
34.3
16,576
-42.1
582,816
2020E
147,186
525,471
11.0
3,887
676,544
656,838
16.0
19,705
18.9
676,544
2021E
159,759
646,329
23.0
5,764
48.3
811,852
788,206
20.0
23,646
20.0
811,852
2022E
174,542
794,512
22.9
5,169
-10.3
974,223
945,847
20.0
28,375
20.0
974,223
2015
2016
2017
16.7
9.4
7.3
8.3
2018
14.5
8.2
6.3
7.3
2019
14.2
9.0
5.2
6.6
2020E
13.8
9.3
4.5
6.2
2021E
14.3
9.8
4.5
6.3
2022E
14.5
9.8
4.8
6.4
27.5
4.1
19.9
3.6
15.0
3.1
13.7
2.8
13.7
2.8
14.7
2.8
12 September 2019
17
 Motilal Oswal Financial Services
Piramal Enterprises
Financials and Valuations - Consolidated
INCOME STATEMENT
Y/E MARCH
FY15
FY16
FY17
FY18
FY19
FY20E
Revenues
51,230
63,815
85,468
106,394
132,153
153,614
Change (%)
13.8
24.6
33.9
24.5
24.2
16.2
HealthCare
31,210
34,670
38,927
43,220
47,860
53,759
Financial Services
9,371
17,397
33,515
49,816
70,634
84,823
Info Mgmt
10,196
11,559
12,224
12,092
13,322
14,654
Others
453
188
802
1,266
337
378
EBITDA*
8,698
13,726
21,007
29,611
36,582
42,239
Change (%)
102.3
57.8
53.0
41.0
23.5
15.5
HealthCare
299
3,266
6,028
8,001
9,809
11,703
Financial Services #
6,575
8,185
12,837
19,933
24,507
27,605
Info Mgmt
1,824
2,276
2,143
1,677
2,266
2,931
EBIT*
5,799
11,172
17,190
24,838
31,380
35,613
Change (%)
216.7
92.6
53.9
44.5
26.3
13.5
HealthCare
-1,628
1,151
3,124
4,244
5,880
6,525
Financial Services #
6,557
8,159
12,813
19,897
24,431
27,605
Info Mgmt
870
1,862
1,254
697
1,069
1,484
Unallocated Inc/(Exp)
-2,407
-4,028
-3,988
-5,200
-6,605
-8,293
Core PBT
3,392
7,144
13,202
19,638
24,775
27,321
Change (%)
-177.8
110.6
84.8
48.7
26.2
10.3
Exceptional Items
26,962
457
-99
0
-4,656
-113
Reported PBT
30,354
7,600
13,103
19,638
20,119
27,208
Taxes
3,450
495
2,281
6,928
8,611
9,523
Tax Rate (%)
11.4
6.5
17.4
35.3
42.8
35.0
PAT
26,904
7,105
10,821
12,710
11,507
17,685
Change (%)
-640.8
-73.6
52.3
17.5
-9.5
53.7
Minority Interest
-3
0
-3
0
0
0
Share from Asso. Co
1,593
1,942
1,699
2,801
3,194
2,822
PAT Post MI
28,500
9,047
12,523
15,511
14,701
20,507
Change (%)
-668.4
-68.3
38.4
23.9
-5.2
39.5
Dividend (Including Tax)
4,154
3,635
4,348
5,415
6,065
7,177
* Ex Exceptional, # Post interest expenses; FY16-18 nos based on IND AS; FY18 Excluding one off DTA of INR35.6b
FY21E
181,530
18.2
60,637
104,063
16,413
416
48,822
15.6
13,300
32,240
3,283
41,747
17.2
7,871
32,240
1,636
-9,001
32,745
19.9
0
32,745
10,479
32.0
22,267
25.9
0
3,105
25,371
23.7
8,880
FY22E
214,783
18.3
68,569
127,375
18,382
458
56,640
16.0
15,060
37,904
3,676
49,114
17.6
9,381
37,904
1,830
-10,005
39,110
19.4
0
39,110
12,515
32.0
26,594
19.4
0
3,426
30,021
18.3
10,507
12 September 2019
18
 Motilal Oswal Financial Services
Piramal Enterprises
Financials and Valuations - Consolidated
BALANCE SHEET
Y/E MARCH
Equity Share Capital
Reserves (Ex OCI)
Networth
OCI
Networth
Change (%)
Borrowings
Change (%)
Other liabilities
Change (%)
Total Liabilities
Loans+Investments
Change (%)
Goodwill
Fixed Assets
Other assets
Change (%)
Total Assets
Profitability Ratios (%)
EBITDA Margin - IT
EBITDA Margin - Pharma
Core ROE
ROE
Valuations
Book Value (INR)
BV Growth (%)
Price-BV (x)
EPS (INR)
EPS Growth (%)
Price-Earnings (x)
DPS (INR)
Dividend Yield (%)
E: MOFSL Estimates
FY15
345
119,925
120,270
13,985
134,255
44.0
71,863
-24.8
13,908
-47.2
220,026
125,696
12.8
49,437
18,298
26,595
-27.8
220,026
FY15
17.9
1.0
2.8
26.7
FY16
345
121,102
121,447
8,037
129,484
-3.6
162,788
126.5
17,526
26.0
309,798
198,500
57.9
54,854
23,949
32,495
22.2
309,798
FY16
19.7
9.4
5.5
7.5
FY17
345
133,609
133,954
14,872
148,826
14.9
304,510
87.1
29,058
65.8
482,394
325,163
63.8
54,272
54,251
48,707
49.9
482,394
FY17
17.5
15.5
9.8
9.8
FY18
399
243,287
243,686
21,977
265,662
78.5
441,608
45.0
20,734
-28.6
728,004
514,984
58.4
56,326
57,402
99,293
103.9
728,004
FY18
13.9
18.5
8.2
8.2
FY19
399
253,732
254,131
18,430
272,560
2.6
559,867
26.8
23,834
15.0
856,261
645,325
25.3
59,395
57,510
94,032
-5.3
856,261
FY19E
17.0
20.5
5.9
5.9
FY20E
399
267,061
267,460
18,430
285,890
4.9
616,216
10.1
27,503
15.4
929,608
735,923
14.0
59,395
63,261
71,030
-24.5
929,608
FY20E
20.0
21.8
7.9
7.9
FY21E
399
283,553
283,951
18,430
302,381
5.8
741,611
20.3
33,283
21.0
1,077,275
867,291
17.9
59,395
69,587
81,003
14.0
1,077,275
FY21E
20.0
21.9
9.2
9.2
(INR M)
FY22E
399
303,066
303,465
18,430
321,895
6.5
895,511
20.8
41,086
23.4
1,258,492
1,024,932
18.2
59,395
77,241
96,924
19.7
1,258,492
FY22E
20.0
22.0
10.2
10.2
697
29.0
165.2
-668
20
704
1.0
52.4
-68
18
776
10.3
72.6
38
21
1,222
57.4
2.0
77.8
7
30.8
25
1.0
1,275
4.3
1.9
73.7
-5
32.5
28
1.2
1,342
5.2
1.8
102.9
39
23.3
30
1.3
1,424
6.2
1.7
127.3
24
18.8
45
1.9
1,522
6.9
1.6
150.6
18
15.9
53
2.2
12 September 2019
19
 Motilal Oswal Financial Services
Piramal Enterprises
NOTES
12 September 2019
20
 Motilal Oswal Financial Services
Piramal Enterprises
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 is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial
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National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National
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though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
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Research Analyst views on Subject Company may vary based on Fundamental
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For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
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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
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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.
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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
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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
12 September 2019
21
 Motilal Oswal Financial Services
Piramal Enterprises
********************************************************************************************************************************
The associates of MOFSL 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 MOFSL 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 MOFSL 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 MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL 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.
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This report has been prepared by MOFSL 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
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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,
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instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL 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
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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
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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
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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. MOFSL, 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 MOFSL. 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
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The person accessing this information specifically agrees to exempt MOFSL or any of its
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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 71934200/ 022-71934263;
Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth
Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is
a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt.
Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL.
Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no
assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance
Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* 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.
12 September 2019
22