Quess Corp
BSE SENSEX
38,471
S&P CNX
11,269
5 March 2020
Update | Sector: Technology
CMP: INR501
TP: INR560 (+12%)
Neutral
Shift of focus toward RoE improvement
We attended Quess Corp’s (QUESS) Analyst Day. Key takeaways:
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
QUESS IN
147
73.8 / 1
820 / 387
-12/4/-37
140
All-weather business model to benefit during downturns
Management indicated that propensity of clients to outsource increases
during downturns. In good times, the flexi staffing business model anyways
benefits from outsourcing of non-core activities by clients to support their
growth.
The company indicated that key focus going forward will be on RoE
improvement at contract/individual business unit level.
CEOs of different segments will have RoE targets. The focus will be on these
rather than the EBITDA margin/gross margins targets.
Over time, the company intends to divest businesses that do not meet the RoE
threshold, which we understand is 20%.
QUESS also hinted at further headroom for an improvement on asset turns.
At the company level, RoE of ~20% is aspired to be achieved by FY23.
Strengthening governance, improving capital allocation and balance sheet
lightening are the other key priorities of the new CEO.
In general staffing, QUESS remains focused on volume growth through new
client additions.
Driving greater share of value-added services (VAS) and efficiency
improvements through digitization are other strategic priorities.
Expanding bill rate model and enhancing sourcing channels are the key
priorities in the Indian IT staffing business.
Renewed sales engine, renewed focus on new acquisitions (enterprise, tech,
SE Asia), rebuilding/modernizing talent, reinforcing performance culture and
digital marketing are the key priorities in Monster.
Focus beyond BFSI industry and strengthening of GTM team are the focus
areas in overseas IT staffing business.
Faster collections, project closures and reducing capex intensity will be the key
objectives in training and development.
Through Comtel, QUESS has exposure to geographies like Singapore which
were severely impacted by COVID-19.
Increasing spread of COVID-19 in core geographies like India will pose a key
risk to business continuity of QUESS. This will be a double whammy given the
already weak economy and demand for business services.
We downgrade our FY21-22 PAT estimate and TP by 6%. Maintain
Neutral.
Financials Snapshot (INR b)
Y/E Mar
2020E 2021E 2022E
Sales
108.7 129.2 160.5
EBIT Margin (%)
3.7
3.6
3.5
PAT
2.9
3.4
4.6
EPS (INR)
19.6
23.2
31.3
EPS Gr. (%)
11.9
18.2
35.3
BV/Sh. (INR)
265.8 295.7 336.2
Ratios
RoE (%)
10.0
10.7
12.8
RoCE (%)
12.1
12.1
13.8
Payout (%)
0.0
0.0
0.0
Valuations
P/E (x)
P/BV (x)
EV/EBITDA (x)
EV/Sales (x)
25.6
1.9
11.0
0.7
21.6
1.7
9.1
0.5
16.0
1.5
6.9
0.4
Shift of focus toward RoE improvement
Strategic priorities in key segments
Shareholding pattern (%)
As On
Dec-19 Sep-19 Dec-18
Promoter
54.7
71.6
71.4
DII
13.2
5.6
5.6
FII
16.6
14.8
14.1
Others
15.5
8.0
8.9
FII Includes depository receipts
Stock Performance (1-year)
Quess Corp
Sensex - Rebased
920
730
540
350
Valuation and view – Weak macro + COVID-19 to be a double whammy
Sudheer Guntupalli – Research analyst
(Sudheer.Guntupalli@MotilalOswal.com); +91 22 5036 2749
Research analyst: Anmol Garg
(Anmol.Garg@MotilalOswal.com); +912271934271 /
Mohit Sharma
(Mohit.Sharma@MotilalOswal.com); +91226129 1531
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
Quess Corp
Exhibit 1: Change in estimates
Revised
FY21E
1,29,238
18.9
7,645
3.6
23.2
18.2
FY22E
1,60,536
24.2
9,312
3.5
31.3
35.3
Earlier
FY21E
1,33,072
22.4
7,925
3.8
24.7
25.9
FY22E
1,65,858
24.6
9,632
3.9
33.4
35.4
Change
FY21E
-2.9%
-353bp
-3.5%
-14bp
-6.1%
-771bp
FY22E
-3.2%
-42bp
-3.3%
-38bp
-6.2%
-5bp
Revenue (m)
Rev. growth (%)
EBITDA (m)
EBIT Margin (%)
EPS (INR)
EPS Growth (%)
Source: Company, MOFSL
5 March 2020
2
 Motilal Oswal Financial Services
Quess Corp
Financials and valuations
Consolidated – Income Statement
Y/E March
Total Income from Operations
Change (%)
Cost of services
Employees Cost
Other Expenses
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
PBT after EO Exp.
Total Tax
Tax Rate (%)
Minority Interest
Reported PAT
Change (%)
Margin (%)
(INR Million)
FY15
25,671
155.2
717
22,684
965
24,366
94.9
1,305
5.1
101
1,203
218
57
1,042
1,042
370
35.5
0
672
276.3
2.6
FY16
34,350
33.8
481
30,069
2,289
32,839
95.6
1,511
4.4
144
1,367
310
91
1,147
1,147
335
29.2
0
812
20.8
2.4
FY17
43,149
25.6
714
36,339
3,718
40,771
94.5
2,378
5.5
275
2,103
471
154
1,787
1,787
534
29.9
-1
1,254
54.5
2.9
FY18
61,673
42.9
1,422
50,793
5,914
58,129
94.3
3,544
5.7
747
2,796
755
569
2,611
2,611
-483
-18.5
-4
3,098
147.0
5.0
FY19
85,270
38.3
2,624
67,132
10,868
80,624
94.6
4,646
5.4
1,232
3,414
1,144
712
2,983
2,983
329
11.0
88
2,565
-17.2
3.0
FY20E
1,08,698
27.5
3,345
85,577
13,180
1,02,101
93.9
6,596
6.1
2,554
4,042
1,571
685
3,156
3,156
229
7.3
57
2,870
11.9
2.6
FY21E
1,29,238
18.9
3,977
1,01,748
15,868
1,21,593
94.1
7,645
5.9
2,972
4,673
1,549
775
3,899
3,899
507
13.0
0
3,392
18.2
2.6
FY22E
1,60,536
24.2
4,940
1,26,388
19,895
1,51,223
94.2
9,312
5.8
3,692
5,620
1,518
1,124
5,225
5,225
635
12.2
0
4,590
35.3
2.9
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Minority Interest
Total Loans
Deferred Tax Liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Goodwill on Consolidation
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
Appl. of Funds
E: MOFSL Estimates
FY15
258
2,267
2,525
0
2,170
-35
4,660
604
415
189
1,104
0
0
5,869
4
2,755
818
2,292
2,502
414
1,941
147
3,367
4,660
FY16
1,133
2,433
3,566
0
3,783
-1,345
6,005
1,043
541
502
2,020
24
37
8,573
18
6,926
1,094
536
5,151
674
4,138
339
3,423
6,005
FY17
1,268
11,780
13,048
9
7,440
-1,633
18,864
3,504
976
2,529
9,187
77
776
14,433
71
8,966
3,039
2,357
8,138
778
6,825
536
6,294
18,864
FY18
1,455
23,153
24,608
16
9,662
-3,647
30,638
7,485
2,126
5,359
10,959
22
888
28,111
85
13,936
5,661
8,430
14,701
1,481
12,166
1,054
13,411
30,638
FY19
1,461
25,795
27,256
31
7,502
-5,046
29,742
8,152
3,357
4,795
11,769
147
820
27,540
221
16,164
5,855
5,300
15,328
1,729
12,351
1,248
12,212
29,742
FY20E
1,461
28,665
30,125
88
7,293
-5,046
32,460
8,702
5,912
2,791
11,769
164
820
36,774
221
20,251
8,117
8,186
19,915
2,190
16,051
1,675
16,859
32,402
(INR Million)
FY21E
1,461
32,057
33,518
88
7,104
-5,046
35,664
9,752
8,884
868
11,769
184
820
45,286
221
25,139
10,925
9,000
23,320
2,608
18,721
1,991
21,966
35,606
FY22E
1,461
36,647
38,108
88
6,935
-5,046
40,085
10,302
12,577
-2,274
11,769
204
820
58,006
221
31,227
16,316
10,241
28,497
3,243
22,780
2,474
29,509
40,027
5 March 2020
3
 Motilal Oswal Financial Services
Quess Corp
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
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
Asset Turnover (x)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Net Debt/Equity
FY15
5.9
6.8
22.3
0.0
0.0
104.8
91.0
26.4
2.7
52.3
0.0
-1.1
30.8
22.6
25.9
5.5
39
6
0.5
FY16
7.0
8.3
31.5
0.0
0.0
88.2
74.9
18.7
2.1
46.8
0.0
-6.2
26.7
17.1
22.3
5.7
74
7
0.7
FY17
10.1
12.3
115.1
0.0
0.0
61.3
50.3
5.1
1.8
32.6
0.0
2.4
15.1
11.4
14.9
2.3
76
7
0.3
FY18
21.8
27.1
217.1
0.0
0.0
28.4
22.9
2.7
1.4
24.7
0.0
1.1
16.5
14.6
17.0
2.0
82
9
0.1
FY19
17.5
25.9
240.5
0.0
0.0
35.4
23.9
2.1
0.9
16.0
0.0
7.2
9.9
10.6
12.9
2.9
69
7
0.0
FY20E
19.6
37.0
265.8
0.0
0.0
25.6
13.5
1.9
0.7
11.0
0.0
23.3
10.0
12.1
16.2
3.4
68
7
-0.1
FY21E
23.2
43.4
295.7
0.0
0.0
21.6
11.5
1.7
0.5
9.1
0.0
25.7
10.7
12.1
17.3
3.6
71
7
-0.1
FY22E
31.3
56.5
336.2
0.0
0.0
16.0
8.9
1.5
0.4
6.9
0.0
40.6
12.8
13.8
21.2
4.0
71
7
-0.3
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
E: MOFSL Estimates
FY15
1,049
101
218
-412
-942
15
9
24
-145
-120
-525
375
-295
0
1,015
-217
0
0
798
527
291
818
FY16
1,147
144
310
-482
-1,622
-503
8
-495
-226
-721
0
129
-97
34
1,137
-304
0
0
867
275
818
1,093
FY17
1,723
333
479
-839
-941
755
-71
684
-383
301
0
-5,434
-5,817
3,693
3,816
-443
0
13
7,079
1,946
1,093
3,039
FY18
2,615
747
755
-744
-1,858
1,515
-428
1,087
-928
159
-1,808
-5,330
-8,066
8,479
1,785
-665
0
0
9,599
2,619
3,039
5,658
FY19
2,566
3
1,144
-1,750
-1,248
714
1,302
2,016
-957
1,058
-117
2,898
1,823
0
-74
-865
0
-2,706
-3,645
194
5,661
5,855
FY20E
3,156
2,554
1,571
-229
-2,385
4,667
-685
3,982
-570
3,412
0
0
-570
57
-209
-1,571
0
573
-1,150
2,262
5,855
8,117
FY21E
3,899
2,972
1,549
-507
-2,299
5,615
-775
4,840
-1,070
3,770
0
0
-1,070
0
-188
-1,549
0
775
-961
2,808
8,117
10,925
FY22E
5,225
3,692
1,518
-635
-2,152
7,649
-1,124
6,525
-570
5,955
0
0
-570
0
-169
-1,518
0
1,124
-564
5,391
10,925
16,316
5 March 2020
4
 Motilal Oswal Financial Services
Quess Corp
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
********************************************************************************************************************************
5 March 2020
5
 Motilal Oswal Financial Services
Quess Corp
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.
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