Automobiles

Sector Update | 9 March 2022

Consumer
Commodity cost inflation inflicts earnings cuts
Geopolitical crisis leads to material cost pressures
 Consumer Staples have underperformed over the last couple of years largely battered
Change in EPS estimates (%)
Company FY23E FY24E by unprecedented and broad-based material cost increases. The COVID-induced
APNT -16.2 -7.9 restrictions imposed in urban centers and disruptions to the modern trade (MT)
BRIT -12.5 -10.6 channel also led to lower premium product sales.
GCPL -21.9 -12.5  In recent months, MT has rebounded to near normalcy in tandem with the gradual
HUVR -10.3 -8.4 lifting of COVID-led restrictions. However, the ongoing geopolitical crisis has led to a
NEST -2.6 -3.9
further build-up of material cost pressures, which has been quite steep in some cases.
PIDI -16.5 -5.2
UBBL -16.8 -11.0  As indicated in our commodity cost update last week, several commodities such as
UNSP -10.9 -7.7 crude, palm oil, and barley have witnessed an extremely steep increase sequentially
with end of Feb’22 prices being sharply higher than Dec’21 quarter averages. We also
indicated UBBL’s vulnerability to prevailing high barley costs in another note published
in the preceding week. Agri commodities, barring palm oil, had been benign earlier but
are witnessing a sequential upswing as well.
 With several companies having already taken sharp price hikes until 3QFY22 (with
some more in Jan-Feb’22 in a few cases), slowing rural and bottom-of-pyramid
demand would make them wary of passing on the recent sharp commodity cost
increases. We have reduced our estimates for eight of the 23 companies in our
coverage that are more vulnerable to recent developments. The remaining companies
are less adversely affected and changes to these will be made as part of our 4QFY22
preview, after observing the movement of commodity prices until then.
 Changes to our EPS forecasts are largely operating margin driven and have led to an
average reduction of ~13%/~8% in FY23/FY24 EPS for these eight companies. Existing
stock of lower-cost RM inventory may not dent 4QFY22 estimates materially. The
highest FY23E EPS cuts have been taken for GCPL (-22%), UBBL (-17%), APNT (-16%),
and PIDI (-16%) while NEST has been the least affected (3%/4% cut in CY22E/CY23E
EPS) due to its relatively higher pricing power. If inflation persists at prevailing levels
or higher for the next few months, there could be more cuts not only to our FY23E EPS
but also to our FY24E EPS (sharper cuts than the ones already assumed). Petrol and
diesel price hikes, likely in next few days, would also impact margins of consumer
companies adversely (due to transport/logistics costs) along with crude-related
packaging costs.
 We have also cut our FY24E target multiples for APNT and PIDI from 60x/65x to
50x/55x. Both of these stocks were significant beneficiaries of the re-rating in recent
years but intense commodity cost pressures in the recent quarters have made their
earnings more susceptible than peers, especially if crude costs sustain at high levels
for a few more months.
 GCPL, DABUR, and MRCO remain our top picks among Staples. While estimate cuts to
GCPL are sharp due to the unexpected steep surge in palm oil costs along with some
caution on growth and margins in its Africa business (because of sharp inflation), the
turnaround story is evidently intact. We had reiterated in a detailed note in Jan’22 on
the building blocks in place (for GCPL) for sustained topline and earnings growth.
Valuations here are inexpensive despite earnings cuts. DABUR and MRCO are less
adversely affected by the ongoing commodities surge. We had also highlighted the
strong investment case for DABUR in a detailed note last month. Within
discretionaries, we like TTAN, JUBI and DEVYANI. Demand outlook is buoyant and
commodity costs are not worrying yet.

Krishnan Sambamoorthy – Research analyst (Krishnan.Sambamoorthy@MotilalOswal.com)

Research analyst: Dhairya Dhruv (Dhairya.Dhruv@MotilalOswal.com) / Kaiwan Jal Olia (Kaiwan.O@MotilalOswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Consumer

Brent Crude Index 132 Hindustan Unilever

 Two factors have held back HUVR’s earnings growth over the past two years
(FY20-22), after a stellar period of ~17% earnings CAGR in the preceding four
37 years. These factors are: a) extremely steep commodity cost inflation affecting
over half of its portfolio adversely and b) underperformance of its high-margin
discretionary portfolio.
 Worries/uncertainties remain on both these aspects. With steep sequential
Jul-20

Jul-21
Nov-20

Nov-21
Mar-20

Mar-21

Mar-22

increases in palm oil and crude costs (which also affects LAB used in detergents),
management’s earlier expectations of commodity cost stability/ decline in
2HCY22 is likely to get pushed back further. We also need to monitor if
persistent inflation ends up impacting premiumization or causes significant
down-trading in Staples, the latter has not been a factor so far.
 We believe HUVR’s earnings growth will bounce back to mid-teen levels once
TiO2 price (INR/kg) 444 the abovementioned worries ebb. However, uncertainty remains over the next
couple of quarters. We maintain our BUY rating; however, HUVR does not
feature among our top picks for now.
250
Asian Paints and Pidilite
 Crude-related RMs and chemicals adversely affected by supply chain issues form
Jul-20

Jul-21
Nov-20

Nov-21
Mar-20

Mar-21

Mar-22

over half of the material costs for both companies.

 While TiO2 prices have not witnessed an alarming sequential increase and VAM
costs are actually down (v/s the extremely high levels seen in Dec’21), these
commodities are highly correlated to crude (with a lag), which has surged over
the Dec’21 quarter average.
 APNT has already hiked prices by over 22% while PIDIs price hikes in response to
the cost increases until Dec’21 have also been sharp.
VAM prices (USD/MT)
 Both these companies face a high base of sales growth for the next few
quarters.
1,982  Moreover, there is no indication that the industry growth trajectory for either
paints or adhesives has improved post COVID unlike in the case of QSRs, nor is
854
there are any substantial share gains from the unorganized sector in either
category.
Jun-20

Jun-21
Feb-20

Feb-21

Feb-22
Oct-20

Oct-21

 In light of the above arguments, we have also cut our FY24E target multiples for
APNT and PIDI from 60x/65x to 50x/55x. Re-rating has also played a big part in
driving these stock prices in recent years and the stocks are thus vulnerable to
earnings disappointment.
 We maintain our Neutral rating on both these stocks.

Palm Oil (MYR/MT) 6,996

GCPL
 Management indicated in an interview that YoY decline in gross margin for
4QFY22 would be lower than preceding quarters. Nevertheless, the sequential
increase in palm oil costs has been so steep that FY23 estimates appear to be at
2,276 risk, especially for the Soaps business, if these levels sustain for a few months.
We are also cautious of the impact of high crude and other commodity inflation
on the lower income economies of Africa.
Jul-20

Jul-21
Nov-20

Nov-21
Mar-20

Mar-21

Mar-22

 Material cost concerns overall are fewer v/s peers and GCPL has more pricing
power with market leadership in other domestic segments such as Household
Insecticides, Hair Colors, and Air Fresheners.
9 March 2022 2
 Consumer

 The turnaround story is evidently intact despite near-term challenges. We had

India WPI Glass Bottle 150
Index reiterated in a detailed note in Jan’22 on the building blocks in place for
sustained topline and earnings growth. Valuations are inexpensive despite
earnings cuts.
131

UBBL and UNSP

 Since UBBL procures barley ahead of the crucial summer season (1Q typically
May-20

May-21
Jan-20

Sep-20

Jan-21

Sep-21

Jan-22

accounts for 35-40% of full-year EBITDA), we believe the prevailing high prices
for barley in Feb/Mar’22 would have an adverse impact on UBBL’s gross margins
for FY23E even if sales are buoyant for the summer season for the first time in
three years, as expected. We had highlighted risks of the same in our note
before the Ukraine situation escalated.
 Glass bottle costs have also witnessed double-digit growth YoY (and could also
NCDEX Barley Spot see further inflation since fuel is an important component of bottle
(INR/quintal) 2,386 manufacturing), which will adversely affect both UBBL and UNSP.
 The increase in price of aluminum cans was a key factor affecting 3QFY22 gross
2,010 margin for UBBL and inflation continues to be extremely steep sequentially.
Cans are ~15% of sales with bottles account for the remaining 85% for UBBL.
 Sustained high crude costs could also result in higher levels of ethanol blending
and disruptions in ENA supply for UNSP in FY23E.
Jul-20

Jul-21
Nov-20

Nov-21
Mar-20

Mar-21

Mar-22

 With around 70% of the market for alcobev requiring permissions for price
increases from state governments (which are usually approved with a significant
lag), commodity inflation is even more of a bother for alcobev players compared
with other consumer companies with direct control over pricing power.
 If economic growth gets negatively affected and crude costs sustain at these
levels, possibility of sharp excise increases by state governments in their state
Wheat (INR/quintal) budgets in March and April and beyond is also a potential worry. Especially on a
2,293 base of no material increases in FY22 budget in most states (unprecedented)
this could adversely impact net sales growth and margins further.
1,900

Britannia and Nestle

 Barring palm oil and packaging costs that witnessed massive increases, food
Jul-20

Jul-21
Nov-20

Nov-21
Mar-20

Mar-21

Mar-22

companies were facing relatively benign agri commodity inflation until Dec’21.
 Wheat, sugar, and SMP have seen significant sequential inflation in 4QFY22.
 While the Ukraine crisis has led to a spike in global wheat costs, India is
expected to have a bumper wheat crop this year, which should keep domestic
prices in check.
 Nevertheless, material cost inflation is higher than earlier expectations for food
companies.
SMP (US$/CWT)
 BRIT, with its low gross margin, is especially vulnerable while the management
181
of NEST in its analyst meet in Feb’22 indicated that commodity inflation is here
to stay. This was even before the Ukraine crisis that ignited further pressures.
125  We remain Neutral on NEST. While we have a BUY rating on BRIT, it is not
among our top picks (similar to HUVR) as the visibility on its earnings is lower
than peers over the next two to three quarters.
Jun-21
Dec-20

Mar-21

Sep-21

Dec-21

Mar-22

9 March 2022 3
 Consumer

Exhibit 1: Major commodities continue to witness acute inflationary pressures

Dec’21 Spot v/s
Q4FY22 YTD Q3FY22 QoQ (%) Q4FY21 YoY (%) Spot average Dec’21 (%)
Non-agri Commodities
Brent crude (USD/bbl) 94.6 79.4 19.1 60.7 55.9 132.0 74.3 77.6
Titanium dioxide (INR/kg) 444.3 425.7 4.4 272.7 62.9 447.0 435.4 2.7
VAM China (USD/MT) 1,982.0 2,454.3 (19.2) 1,730.7 14.5 1,982 1,955 (26.1)
India WPI glass index 150.1 142.6 5.2 134.0 12.0 150.1* 144.8 3.7
Agri Commodities
Palm oil (MYR/MT) 5,904.6 5,171.4 14.2 3,925.8 50.4 6,996.0 5,085.0 37.6
Wheat (INR/quintal) 2,067.7 2,040.4 1.3 1,780.1 16.2 2,292.5 2,042.8 12.2
SMP (USD/CWT) 177.2 152.2 16.5 131.4 34.8 180.8 159.9 13.1
Barley (INR/quintal) 2,454.9 2,347.7 4.6 1,516.4 61.9 2,386.1 2,382.4 0.2
*Prices for end of Jan’22 Source: Bloomberg, MOFSL

Exhibit 2: Revised EPS estimates

FY23E FY24E
Rev Old Change (%) Rev Old Change (%)
APNT 42.0 50.1 -16.2 53.5 58.1 -7.9
BRIT 66.8 76.3 -12.5 83.1 93.0 -10.6
GCPL 16.8 21.5 -21.9 22.3 25.5 -12.5
HUVR 39.1 43.6 -10.3 45.7 49.9 -8.4
NEST 259.9 266.8 -2.6 299.8 312.0 -3.9
PIDI 26.9 32.2 -16.5 36.1 38.1 -5.2
UBBL 17.8 21.4 -16.8 23.4 26.3 -11.0
UNSP 13.1 14.7 -10.9 16.9 18.3 -7.7
Source: MOFSL

Exhibit 3: Comparative valuations

Mcap CMP TP EPS (INR) EPS CAGR P/E (x)
Companies Rating (INR b) (INR) (INR) FY22E FY23E FY24E FY22-24E (%) FY23E FY24E
APNT Neutral 2,613 2,875 2,700 34.6 42.0 53.5 24.3 68.4 53.7
BRIT Buy 748 3,126 3,740 63.1 66.8 83.1 14.8 46.8 37.6
GCPL Buy 718 703 1,000 17.5 16.8 22.3 12.9 41.9 31.5
HUVR Buy 4,577 1,998 2,500 37.0 39.1 45.7 11.1 51.1 43.7
NEST* Neutral 1,668 17,147 18,700 240.8 259.9 299.8 11.6 66.0 57.2
PIDI Neutral 1,119 2,239 2,000 25.2 26.9 36.1 19.7 83.1 62.0
UBBL Sell 356 1,399 1,100 12.6 17.8 23.4 36.3 78.7 59.9
UNSP Neutral 573 818 760 11.5 13.1 16.9 21.2 62.6 48.4
*Dec-year ending Source: Bloomberg, MOFSL

9 March 2022 4
 Consumer

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
products. MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are
available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a
registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and
National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National
Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance
Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products. Details of associate entities of Motilal Oswal Financial Services Limited are
available on the website at http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) 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) or may have
any 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
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report
should be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific
merchant banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the
website at https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at www.nseindia.com, www.bseindia.com. Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated
from MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability
or use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong
Kong Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal 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
applicable state laws in the United States. In addition MOFSL 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 MOFSL , 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., MOFSL 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 MOFSL, 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 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, 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 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
********************************************************************************************************************************

9 March 2022 5
 Consumer

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.
Terms & Conditions:
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
of MOFSL. 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. 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
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. 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
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 MOFSL 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 MOFSL or any of its
affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such
misuse and further agrees to hold MOFSL 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 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.

9 March 2022 6