Avenue Supermarts
BSE SENSEX
34,865
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
S&P CNX
10,513
DMART IN
624
832 / 11.3
1682 / 1063
-5/-13/1
1205
18.8
15 October 2018
2QFY19 Results Update | Sector: Retail
CMP: INR1,333
TP: INR1,124 (-16%)
Sell
Margin cap to restrict pace of earnings growth
Competitive pricing by peers led to shrinking gross margin
EBIDTA and PAT growth lags revenue growth on shrinking gross margin:
Avenue Supermarts (DMart) revenue increased 39% YoY to INR48.7b (estimated
INR44.6b) in 2QFY19. EBITDA/PAT; however, grew 23%/18% YoY to
INR3.9b/INR2.3b (estimated INR4.4b/INR2.6b) lagging much below revenue
growth. This is primarily due to 180bp decline in gross margin to 14.3%. In the
recent analyst meet, management had highlighted that the high EBITDA margin
may not be sustainable as the company plans to prioritize price competitiveness
v/s margin improvements.
Added three new stores in 2QFY19; looking to add 25-30 stores annually:
In the
recent analyst meet, the company reiterated its strategy to accelerate store
addition; it also plans to explore the leasing model. Although, the company does
not have a set target, it plans to add 25-30 stores annually. In 2QFY19, DMart
added three new stores (five stores in 1HFY19), taking its total store count to
160. The company had added 24 stores in FY18, of which 14 were in 4Q. Total
store count rose from 131 in FY17 to 155 in FY18, and at a 16% CAGR over FY13-
18. In order to reach 25 stores, DMart needs to add 20 stores in 2HFY19 against
the five stores in 1HFY19.
Valuations and view:
DMart has consistently outperformed its peers, with
strong 14% same store sales growth (SSSG) and 9% EBITDA margin (as at FY18).
We expect the strong momentum to continue, with a robust revenue/EBITDA
CAGR (FY18-21) of 27%/29%, driven by 19% SSSG and healthy store additions
(~25) annually. However, risk of competitive pricing by peers has led to gross
margin shrinking, and has contained EBITDA margin. We have yet broadly
maintained EBITDA/PAT estimates for FY19/20E as revision in revenue growth is
offset by lower EBITDA margin. We maintain our 50x P/E on FY20E (on the back
of strong competitive moat) to arrive at a TP of INR1,124 (prior: INR1,117). At
CMP, the stock is expensively valued at 63x/48x FY20/21E P/E. At such rich
valuations, we believe there is limited room for re-rating. Maintain
Sell.
FY18
FY19E
FY18 FY19E
2Q
3Q
4Q
1Q
2Q
3QE
4QE
35,083 40,939 38,100 45,594 48,725 53,220 49,600 150,332 197,139
26.3
22.6
22.5
26.7
38.9
30.0
30.2
26.4
31.1
31,904 36,721 35,155 41,367 44,829 48,271 45,028 136,804 179,495
3,179 4,217 2,945 4,227 3,896 4,950 4,571 13,528 17,644
9.1
10.3
7.7
9.3
8.0
9.3
9.2
9.0
9.0
351
393
465
403
444
480
526 1,590 1,853
109
110
132
100
101
50
2
594
253
212
137
149
143
139
140
146
726
567
2,930 3,851 2,497 3,866 3,491 4,560 4,189 12,070 16,105
1,020 1,334
826 1,360 1,233 1,596 1,335 4,158 5,524
34.8
34.6
33.1
35.2
35.3
35.0
31.9
34.4
34.3
0
0
0
0
0
0
0
-185
0
1,910 2,518 1,671 2,506 2,257 2,964 2,853 8,097 10,581
1,910 2,518 1,671 2,506 2,257 2,964 2,853 8,097 10,581
65.2
65.8
72.9
43.4
18.2
17.7
70.8
69.1
30.7
5.4
6.1
4.4
5.5
4.6
5.6
5.8
5.4
5.4
(INR Million)
FY19E
Var
2QE
(%)
44,555
9
27.0
40,189
12
4,366
-11
9.8
-180
440
1
50
102
140
-1
4,016
-13
1,406
-12
35.0
33
0
2,611
-14
2,611
-14
36.7
5.9
-123
Financials & Valuations(INR b)
2018 2019E
Y/E March
Sales
150.3
197.1
EBITDA
13.5
17.6
NP
8.1
10.6
EPS (Rs)
12.9
17.0
EPS Growth (%)
68.4
31.2
BV/Share (INR)
74.8
91.8
P/E (x)
103.2
78.6
P/BV (x)
17.8
14.5
RoE (%)
18.9
20.4
RoCE (%)
16.1
19.7
2020E
248.2
22.8
14.0
22.5
32.6
114.3
59.3
11.7
21.8
21.0
Estimate change
TP change
Rating change
Standalone - Quarterly
Y/E March
Net Sales
YoY Change (%)
Total Expenditure
EBITDA
Margins (%)
Depreciation
Interest
Other Income
PBT
Tax
Rate (%)
Minority Interest & P/L of Asso. Cos.
Reported PAT
Adj PAT
YoY Change (%)
Margins (%)
E: MOSL Estimates
1Q
35,981
35.7
32,949
3,032
8.4
337
243
228
2,680
932
34.8
0
1,748
1,748
47.6
4.9
Aliasgar Shakir – Research analyst
(Aliasgar.Shakir@motilaloswal.com); +91 22 6129 1565
Hafeez Patel – Research analyst
(Hafeez.Patel@motilaloswal.com); +91 22 6129 1568
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
 Motilal Oswal Financial Services
Avenue Supermarts
Exhibit 1: Summary of estimate change
Revenue (INR b)
Old
Actual/New
Change (%)
RM cost (INR b)
Old
Actual/New
Change (%)
EBITDA (INR b)
Old
Actual/New
Change (%)
EBITDA margin (%)
Old
Actual/New
Change (bp)
Net Profit (INR b)
Old
Actual/New
Change (%)
EPS (INR)
Old
Actual/New
Change (%)
FY19E
188.1
197.1
4.8
158.0
166.2
5.2
17.4
17.6
1.4
9.3
9.0
-30bps
10.4
10.6
1.5
16.7
17.0
1.5
FY20E
237.5
248.2
4.5
199.2
209.0
4.9
22.7
22.8
0.7
9.6
9.2
-35bps
13.9
14.0
0.7
22.3
22.5
0.7
FY21E
295.8
308.4
4.2
247.6
259.7
4.9
29.3
29.0
-1.0
9.9
9.4
-50bps
18.5
18.3
-1.1
29.6
29.3
-1.1
15 October 2018
2
 Motilal Oswal Financial Services
Avenue Supermarts
Story in charts
Exhibit 2: Revenues to grow at 26% CAGR by FY20
Net Revenue (INR b)
51%
40%
40%
37%
39%
33%
26%
31%
26% 24%
7%
7%
8%
8%
9%
9%
9%
YoY growth (%)
Exhibit 3: EBIDTA margin expansion to continue
EBITDA (INR b)
EBITDA margin (%)
9%
6%
1.4
6%
2.2
22
33
47
64
86
119 150 197 248 308
3.4
4.6
6.6
9.8
13.5 17.6 22.8 29.0
Source: Company, MOSL
Source: Company, MOSL
Exhibit 4: PAT to grow at 31% CAGR over FY18-20
PAT (INR b)
72%
46%
55%
31%
0.6
0.9
1.6
2.1
3.2
4.9
7.9
51% 54%
YoY growth (%)
60%
34% 33% 30%
10.6 14.0 18.3
Exhibit 5: Working capital trend
Inventory (Days)
35
36
34
Debtor (Days)
34
34
Creditor (Days)
34
34
11
1
0
8
0
10
1
9
1
9
1
9
1
9
Source: Company, MOSL
Source: Company, MOSL
Exhibit 6: RoE and RoCE trend
RoE (%)
30.0
25.0
20.0
15.0
10.0
5.0
RoCE (%)
RoIC (%)
Exhibit 7: Rising trend in asset turnover ratios
Fixed Asset Turnover (x)
2.9
3.0
3.1
4.3
3.9
2.2
4.1
4.3
Asset Turnover (x)
3.0
3.1
3.2
4.8
3.4
3.5
Source: Company, MOSL
Source: Company, MOSL
15 October 2018
3
 Motilal Oswal Financial Services
Avenue Supermarts
Financials and Valuations
Consolidated - Income Statement
Y/E March
Total Income from Operations
Change (%)
Raw Materials
Gross Margins
Margin (%)
Employees Cost
Other Expenses
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Minority Interest
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY13
33,409
51.3
28,572
4,837
14.5
687
1,997
31,256
93.6
2,153
6.4
458
1,695
426
143
1,411
0
1,411
473
33.5
0
939
939
55.4
2.8
FY14
46,865
40.3
39,845
7,020
15.0
873
2,729
43,448
92.7
3,417
7.3
570
2,847
557
158
2,449
0
2,449
835
34.1
0
1,614
1,614
71.9
3.4
FY15
64,394
37.4
54,879
9,515
14.8
1,341
3,592
59,811
92.9
4,583
7.1
815
3,768
724
183
3,226
0
3,226
1,109
34.4
0
2,117
2,117
31.2
3.3
FY16
85,838
33.3
73,035
12,802
14.9
1,490
4,676
79,201
92.3
6,636
7.7
984
5,652
913
179
4,918
0
4,918
1,715
34.9
1
3,202
3,202
51.3
3.7
FY17
118,977
38.6
100,810
18,167
15.3
1,925
6,429
109,165
91.8
9,812
8.2
1,278
8,534
1,220
286
7,600
0
7,600
2,683
35.3
129
4,788
4,788
49.5
4.0
FY18
150,332
26.4
126,356
23,976
15.9
2,826
7,622
136,804
91.0
13,528
9.0
1,590
11,938
595
693
12,036
0
12,036
4,158
34.5
-185
8,063
8,063
68.4
5.4
FY19E
197,139
31.1
166,189
30,951
15.7
3,450
9,857
179,495
91.1
17,644
9.0
1,853
15,791
253
567
16,105
0
16,105
5,524
34.3
0
10,581
10,581
31.2
5.4
(INR Million)
FY20E
248,173
25.9
208,962
39,211
15.8
4,219
12,160
225,341
90.8
22,832
9.2
2,152
20,680
0
677
21,357
0
21,357
7,326
34.3
0
14,032
14,032
32.6
5.7
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Total Loans
Deferred Tax Liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Deferred Tax assets
Misc Expenditure
Appl. of Funds
FY13
5,441
2,455
7,895
5,261
201
13,360
10,950
1,704
9,247
1,181
160
4,333
2,762
133
616
822
1,561
944
555
62
2,773
0
0
13,360
FY14
5,468
4,088
9,556
6,408
265
16,229
13,969
2,252
11,717
888
155
5,316
3,783
95
554
884
1,847
1,226
533
89
3,469
0
0
16,229
FY15
5,615
6,377
11,992
9,043
305
21,340
18,321
3,041
15,281
981
152
7,134
5,396
71
380
1,287
2,208
1,185
843
179
4,926
0
0
21,340
FY16
5,615
9,589
15,204
11,923
399
27,527
21,918
983
20,935
817
293
8,970
6,717
84
351
1,818
3,488
1,944
1,487
56
5,482
0
0
27,527
FY17
6,241
32,177
38,418
14,973
505
53,898
27,764
2,260
25,504
1,529
531
30,662
9,479
210
18,843
2,130
4,328
2,607
1,637
84
26,334
0
0
53,897
FY18
6,241
40,450
46,691
2,533
452
49,681
37,041
3,987
33,054
1,471
845
20,330
11,634
335
5,602
2,758
6,802
3,173
3,502
127
13,527
1
0
49,681
FY19E
6,241
51,031
57,271
2,533
452
60,262
43,536
5,840
37,696
1,577
845
26,612
15,481
324
7,259
3,549
7,252
4,098
2,957
197
19,360
1
0
60,262
(INR Million)
FY20E
6,241
65,062
71,303
2,533
452
74,294
50,032
7,992
42,039
1,489
845
38,260
19,465
408
13,920
4,467
9,123
5,152
3,723
248
29,136
1
0
74,294
15 October 2018
4
 Motilal Oswal Financial Services
Avenue Supermarts
Financials and Valuations
Ratios
Y/E March
Basic (INR)
EPS (diluted from FY17)
Cash EPS (diluted from FY17)
BV/Share (diluted from FY17)
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/Equity
FY13
1.7
2.5
14.5
0.0
0.0
FY14
3.0
3.9
17.5
0.0
0.0
FY15
3.8
5.2
21.4
0.0
0.0
353.6
255.3
62.4
13.1
183.4
0.0
-4.1
19.6
14.0
14.3
3.5
3.0
36
0
8
3.2
5.2
0.7
FY16
5.7
7.5
27.1
0.0
0.0
233.8
178.8
49.2
9.8
127.1
0.0
-3.2
23.6
15.8
16.0
3.9
3.1
34
0
10
2.6
6.2
0.7
FY17
7.7
9.7
61.6
0.0
0.0
173.8
137.2
21.7
7.0
84.4
0.0
-2.8
17.9
14.2
18.7
4.3
2.2
34
1
9
7.1
7.0
-0.1
FY18
12.9
15.5
74.8
0.0
0.0
103.2
86.2
17.8
5.5
61.3
0.0
-2.9
18.9
16.1
20.9
4.1
3.0
34
1
9
3.0
20.0
-0.1
FY19E
17.0
19.9
91.8
0.0
0.0
78.6
66.9
14.5
4.2
46.9
0.0
2.2
20.4
19.7
22.5
4.5
3.3
34
1
9
3.7
NA
-0.1
FY20E
22.5
25.9
114.3
0.0
0.0
59.3
51.4
11.7
3.3
35.9
0.0
9.6
21.8
21.0
25.0
5.0
3.3
34
1
9
4.2
NA
-0.2
0.0
-1.8
12.8
10.3
10.9
3.1
2.5
35
1
12
2.8
4.0
0.6
0.0
-1.2
18.5
13.6
14.4
3.4
2.9
35
1
11
2.9
5.1
0.6
Consolidated - Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
FY13
1,411
458
426
-367
-653
1,275
-4
1,271
-2,377
-1,107
69
2
-2,307
140
1,454
-422
0
3
1,175
139
477
616
FY14
2,449
570
557
-750
-827
1,998
-17
1,981
-2,706
-724
7
5
-2,694
46
1,148
-552
0
11
652
-60
614
554
FY15
3,226
815
724
-1,000
-1,520
2,245
-25
2,220
-4,770
-2,549
31
8
-4,731
326
2,634
-621
0
5
2,345
-166
546
380
FY16
4,918
984
913
-1,642
-685
4,489
-154
4,335
-6,350
-2,015
-151
181
-6,320
0
2,898
-934
0
0
1,964
-21
370
349
FY17
7,600
1,278
1,220
-2,586
-2,697
4,815
-237
4,578
-6,354
-1,775
-229
255
-6,328
18,406
3,050
-1,203
0
0
20,253
18,503
340
18,843
FY18
12,036
1,590
595
-4,027
-2,427
7,767
-467
7,300
-9,087
-1,787
-247
13,950
4,616
0
-10,791
-800
0
0
-11,591
325
329
655
FY19E
16,105
1,853
253
-5,524
-4,176
8,512
-567
7,945
-6,602
1,343
0
567
-6,034
0
0
-253
0
0
-253
1,657
674
2,331
(INR Million)
FY20E
21,357
2,152
0
-7,326
-3,116
13,068
-677
12,391
-6,407
5,983
0
677
-5,730
0
0
0
0
0
0
6,661
2,331
8,992
15 October 2018
5
 Motilal Oswal Financial Services
Avenue Supermarts
NOTES
15 October 2018
6
 Motilal Oswal Financial Services
Avenue Supermarts
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
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Securities Ltd. (MOSL)* is a SEBI Registered Research Analyst having registration no. INH000000412. MOSL, 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. MOSL is a
subsidiary company of Motilal Oswal Financial Service Ltd. (MOFSL). MOFSL is a listed public company, the details in respect of which are available on
www.motilaloswal.com.
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 (MCX) & National Commodity & Derivatives Exchange Ltd. (NCDEX) for its stock broking activities & is Depository
participant with Central Depository Services Limited (CDSL) & National Securities Depository Limited (NSDL) and is member of Association of Mutual Funds of India (AMFI) for
distribution of financial products. Details of associate entities of Motilal Oswal Securities Limited are available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOSL 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 MOSL even though
there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOSL 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 MOSL 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 Securities 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 MOSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from
MOSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have 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 MOSL & 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 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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15 October 2018
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 Motilal Oswal Financial Services
Avenue Supermarts
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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