4 July 2020
Company Update | Sector: Financials
Equitas Holdings
BSE SENSEX
S&P CNX
36,021
10,067
CMP: INR54
TP: INR65 (+21%)
Buy
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Moratorium book receding but still elevated
Disbursements recovering; Focus on existing customer base
To share a business update on trends related to disbursements, deposits
accretion and moratorium proportion availed across segments, EQUITAS
hosted an analyst call. Following are the key takeaways:
Moratorium book receding but elevated
EQUITAS has provided the
‘Opt-out’
facility to all customers under moratorium
1.0 due to the strict lockdown, which impacted customers severely. However,
the
‘Opt-in’
facility has been provided under moratorium 2.0 as lockdown
restrictions eased and economic activity picked up. In the MFI business, ~56%
centers opted for moratorium as at Jun’20. Further, the percentage of loan
portfolio availed moratorium in other segments: ~42% in Small business loans,
~69% in Vehicle loans and ~96% in Small corporate portfolio while all NBFC
customers paid Jun’20 EMIs.
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
EQUITAS IN
342
18.3 / 0.3
131 / 33
4/-36/-46
603
100.0
Disbursements improving; focus remains on existing customer base
EQUITAS made almost nil disbursements during Apr’20 and disbursed ~INR0.9b
during May’20. However, disbursement trends started improving from Jun’20
with disbursing ~INR4.6b during the month. The bank remains focused on
helping its existing customer base to normalize their business. Nearly ~90% of
incremental disbursements in the MFI business are to existing borrowers. It is
also witnessing strong traction for gold loans with the product available in 100+
banking outlets currently.
Financials & Valuations (INR b)
Y/E March
FY20 FY21E
NII
15.0
16.0
OP
6.0
6.2
NP
2.4
1.6
NIM (%)
8.8
8.2
EPS (INR)
7.1
4.7
BV/Sh. (INR)
80.3
83.9
ABV/Sh. (INR)
75.6
75.6
Ratios
RoE (%)
9.7
5.8
RoA (%)
1.4
0.8
Valuations
P/E(X)
7.5
11.3
P/BV (X)
0.7
0.6
P/ABV (X)
0.7
0.7
FY22E
17.8
6.9
2.6
8.0
7.6
89.1
78.5
8.8
1.1
7.0
0.6
0.7
MFI: Center meeting rate improves to 95%; offering small top-ups up to
INR10k
EQUITAS started conducting center meetings after 3
rd
Jun’20 and managed to
improve the meeting run-rate to ~95%. Currently, ~44% centers have collected
payment dues for Jun’20 while 56% centers opted for moratorium in the month.
Further, based on customer feedback, the bank expects collection trends to
improve in the coming months. EQUITAS is also providing top-up loans up to
INR10k to existing customers to help re-start their operations.
Shareholding pattern (%)
As On
Mar-20 Dec-19 Mar-19
Promoter
0.0
0.0
0.0
DII
34.5
37.2
42.0
FII
28.7
26.1
18.6
Others
36.9
36.7
39.4
FII Includes depository receipts
Deposit growth at 11% QoQ led by term deposits
Deposits grew 11% QoQ and stood at INR114.7b, mainly led by term deposits,
which grew 13% QoQ. CASA deposits grew 7% QoQ and stood at INR23.5b.
Thus, CASA ratio stands at 20.5%. Nearly ~57k accounts were acquired through
digital products (Selfie SA and Selfie FD) during 1QFY21. It has recently
introduced ‘Video KYC’ to help on-boarding of new customers.
Research Analyst: Nitin Aggarwal
(Nitin.Aggarwal@MotilalOswal.com) |
Himanshu Taluja
(Himanshu.Taluja@motilaloswal.com)
Alpesh Mehta
(Alpesh.Mehta@MotilalOswal.com);
Yash Agarwal
(Yash.Agarwal@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.
 Motilal Oswal Financial Services
Equitas Holdings
Other business highlights
Vehicle segment:
In the vehicle finance portfolio, the bank categorizes
exposure of INR11.4b (76% availed moratorium) toward high risk. Therefore, the
bank has carried out vehicle inspections to evaluate risk in the portfolio. The
entire moratorium book has been inspected, of which ~98% vehicles are in good
condition. Overall, the average LTV in vehicle portfolio is ~75.6%.
Small business loans:
The incidence of customers availing higher moratorium
in small-ticket sized loan (ticket size below INR0.5m) category is higher at 49%
v/s high-ticket sized loan (ticket size above INR1m) at 24%. The bank indicated
that smaller ticket sized loans, while more vulnerable during the lockdown
period but have the ability to return to normalcy faster than high-ticket sized
category customers. Further, very few customers are eligible for credit
guarantee loans as the guidelines includes group MSME while most of its
customers are individuals.
Valuation and view
We expect business growth to remain modest. The bank is focused on improving
collection trends as high proportion of loans are currently under moratorium.
Although some improvement is visible towards disbursements made during
Jun’20, the focus remains on providing top-up facility to its existing customer
base. We maintain a cautious stance on EQUITAS’ asset quality and expect credit
cost to rise over FY21/FY22E. We maintain our TP of INR65 (0.8x FY22E ABV)
with a
Buy
rating.
th
Exhibit 2: Moratorium update across segments as at 30
Exhibit 1: Disbursement trends over 1QFY21 across segments Jun’20
Disbursements (INR m)
Micro Finance
Small Business Loans (Incl. HF)
Vehicle Finance
MSE Finance
Corporate Finance
Others
Total Disbursements
April'20
-
44
6
15
-
10
75.0
May'20
198
519
88
86
-
17
907.9
June'20
1,112
2,088
Asset Products
Micro Finance
Small Business Loans
Opt in (% of Gross Advances)
56% (of Centers)
42%
65%
70%
48%
0%
96%
950 New Commercial Vehicle Finance
263 Used Commercial Vehicle Finance
190 MSE Finance (Working Capital)
48 Corporate – NBFC Book
4,650.8
Corporate – Small Corporate
Source: MOFSL, Company
Source: MOFSL, Company; Please note Gross Advances data as on
FY20
4 July 2020
2
 Motilal Oswal Financial Services
Equitas Holdings
Exhibit 3: MFI borrowers profile
Customer Profile of MFI borrowers
Animal Husbandry
Tailoring
Agriculture
Trading
Shop Keeper
Food Products
Handicrafts
Others
% of no of Customers
44%
20%
10%
7%
6%
5%
2%
7%
Exhibit 4: MFI center meeting rate hits ~95%; ~56% of centers
opted for moratorium
States
Centers
2,304
6,136
3,985
3,960
11,086
9,921
110,069
7,730
18,514
173,705
% of Center
Meetings held
99%
93%
98%
99%
95%
96%
95%
99%
87%
95%
Opt in
(% Centers)
36%
46%
28%
58%
36%
48%
60%
34%
59%
56%
Chhattisgarh
Madhya Pradesh
Haryana
Punjab
Rajasthan
Karnataka
Tamil Nadu
Gujarat
Source: MOFSL, Company
Maharashtra
Overall
Source: MOFSL, Company
Exhibit 5: Small business loans – customer profile
Small Business loans
Customers Profile
Essential Services
Essential
Related
Livestock
Salaried
Total
Gross Advances
(INRb)
19.7
15.1
5.2
5.7
17.1
62.8
%
31
24
8
9
27
100
Exhibit 6: Small business loans – Moratorium availed across
customer segments
Customer Profile
Self Employed
Salaried
Agriculture
Overall
Opt in
portfolio
(INRb)
16.9
6.9
2.7
26.4
Gross
Advances
(INRb)
38.8
18.8
5.2
62.8
Opt
in
(%)
44%
37%
51%
42%
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 7: Vehicle Finance moratorium across segments
Moratorium 2.0
Particulars
Used CV
New CV
Vehicle Finance
% of gross
advances
70%
30%
% Opt in
Opt in
Advances (INRb)
70%
18.3
65%
7.4
69%
25.7
Exhibit 8: Vehicle Finance exposure across segments
Risk Category
Low Risk
Medium Risk
High Risk
Total
Gross Advances
Opt in Gross
(INRb) Advances (INRb)
5.2
3.0
20.6
11.4
37.2
14.1
8.6
25.7
Opt-in
(%)
57%
68%
76%
69%
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 9: Corporate loans under moratorium – All NBFCs paid Jun’20 EMI
Particulars
FY20
Gross Advances
(INRb)
7.0
1.2
Mar'20
April'20
May'20
June'20
% of Moratorium book
0%
88%
23%
88%
39%
88%
0%
96%
NBFC
Small Corporate
Source: MOFSL, Company
Exhibit 10: Deposit trends over 1QFY21
Particulars (INRb)
CASA
Term Deposits
-Retail TD
Total Deposits
FY20
22
81
38
103
1QFY21
24
91
45
115
QoQ
Growth (%)
7%
13%
17%
11%
Source: MOFSL, Company
4 July 2020
3
 Motilal Oswal Financial Services
Equitas Holdings
Valuation view
Asset quality to remain under watch:
The COVID-19 pandemic would have an
impact across segments due to the contagion effect. We expect potential
increase in delinquencies in the MFI/Business loans and CV portfolio. Thus, we
expect slippage/credit cost trend to rise sharply in the near term.
Maintain Buy with target price of INR65:
We expect business growth trends to
moderate in the near term. The bank remains focused on improving its
collection trend as high proportion of loans are under moratorium. Although
some improvement is visible toward disbursements made during Jun’20, focus
will remain on providing top-up facility to the existing customer base. We
remain cautious on EQUITAS’ asset quality and expect credit cost to rise over
FY21/FY22E. We currently maintain our TP of INR65 (0.8x FY22E ABV) with a
Buy
rating.
Exhibit 11: DuPont Analysis: Return ratios to remain under pressure in the near term
Interest Income
Interest Expense
Net Interest Income
Fee income
Trading and others
Other Income
Total Income
Operating Expenses
Employees
Others
Operating Profits
Core operating Profits
Provisions
NPA
Othes
PBT
Tax
RoA
Leverage (x)
RoE
FY16
19.2
8.1
11.11
1.23
0.21
1.44
12.56
6.65
4.32
2.33
5.91
5.69
1.09
0.77
0.33
4.81
1.72
3.09
4.3
13.3
FY17
18.3
7.5
10.86
1.11
0.34
1.45
12.31
7.81
5.08
2.73
4.50
4.16
1.31
1.25
0.06
3.20
1.17
2.02
4.4
8.9
FY18
14.1
5.8
8.24
1.47
0.00
1.47
9.70
8.07
4.80
3.26
1.64
1.64
1.42
0.22
1.20
0.22
0.17
0.05
5.1
0.2
FY19
14.4
6.6
7.87
1.93
0.00
1.93
9.81
6.89
3.77
3.13
2.91
2.91
0.70
0.70
0.00
2.21
0.77
1.44
6.5
9.3
FY20E
15.1
6.6
8.53
1.61
0.00
1.61
10.14
6.73
4.05
2.68
3.41
3.41
1.41
0.00
1.41
2.00
0.61
1.39
7.0
9.7
FY21E
13.8
5.9
7.85
1.19
0.28
1.46
9.31
6.28
3.82
2.46
3.03
2.76
1.97
1.93
0.04
1.06
0.27
0.79
7.3
5.8
FY22E
13.6
6.0
7.68
1.20
0.24
1.45
9.13
6.13
3.78
2.35
3.00
2.75
1.50
1.45
0.05
1.50
0.38
1.12
7.8
8.8
4 July 2020
4
 Motilal Oswal Financial Services
Equitas Holdings
Financials and Valuations
Income Statement
Y/E March
Interest Income
Interest Expense
Net Interest Income
Growth (%)
Non Interest Income
Total Income
Growth (%)
Operating Expenses
Pre Provision Profits
Growth (%)
Core PPoP
Growth (%)
Provisions (excl tax)
PBT
Tax
Tax Rate (%)
PAT
Growth (%)
FY16
10,368
4,359
6,009
69.3
781
6,790
47.2
3,597
3,193
49.2
3,077
48.2
591
2,602
930
35.7
1,672
56.8
FY17
14,426
5,871
8,555
42.4
1,140
9,695
42.8
6,150
3,545
11.0
3,279
6.6
1,029
2,516
922
36.6
1,594
-4.7
FY18
16,120
6,691
9,428
10.2
1,677
11,106
14.5
9,233
1,873
-47.2
1,873
-42.9
1,621
252
198
78.5
54
-96.6
FY19
21,119
9,602
11,517
22.2
2,829
14,346
29.2
10,085
4,261
127.5
4,261
127.5
1,024
3,237
1,132
35.0
2,106
3,775.3
FY20
26,454
11,501
14,953
29.8
2,824
17,777
23.9
11,801
5,976
40.2
5,976
40.2
2,466
3,509
1,073
30.6
2,436
15.7
FY21E
28,165
12,116
16,049
7.3
2,993
19,042
7.1
12,840
6,202
3.8
5,636
-5.7
4,033
2,169
546
25.2
1,623
-33.4
(INRm)
FY22E
31,530
13,764
17,766
10.7
3,352
21,118
10.9
14,179
6,938
11.9
6,372
13.1
3,467
3,471
874
25.2
2,597
60.0
Balance Sheet
Y/E March
Equity Share Capital
Reserves & Surplus
Net Worth
Deposits
Growth (%)
of which CASA Dep
Growth (%)
Borrowings
Other Liabilities & Prov.
Total Liabilities
Current Assets
Investments
Growth (%)
Loans
Growth (%)
Fixed Assets
Other Assets
Total Assets
Asset Quality
GNPA (INR m)
NNPA (INR m)
GNPA Ratio
NNPA Ratio
Slippage Ratio
Credit Cost
PCR (Excl Tech. write off)
FY16
2,699
10,714
13,413
0
0
46,579
3,497
63,489
9,469
119
-93.2
50,702
46.3
623
2,576
63,489
FY16
681
478
1.34
0.94
0.72
0.97
29.8
FY17
3,378
18,928
22,306
18,850
3,320
46,579
6,264
93,999
10,642
18,959
15,831.9
58,351
15.1
3,288
2,759
93,999
FY17
2,060
860
3.46
1.47
2.53
1.80
58.3
FY18
3,404
19,359
22,763
47,190
150.3
16,340
392.2
58,877
6,118
134,948
11,940
38,569
103.4
78,001
33.7
3,304
3,133
134,947
FY18
2,125
1,126
2.69
1.44
4.89
1.67
47.0
FY19
3,415
19,129
22,543
90,067
90.9
22,720
39.0
39,730
5,286
157,627
12,606
23,445
-39.2
115,950
48.7
2,373
3,253
157,627
FY19
2,957
1,674
2.52
1.44
3.27
0.81
43.4
FY20
3,418
24,024
27,441
107,884
19.8
22,082
-2.8
51,349
6,471
193,145
25,368
23,425
-0.1
137,472
18.6
2,128
4,752
193,145
FY20
4,173
2,286
2.99
1.66
3.23
1.68
45.2
FY21E
3,418
25,247
28,665
122,988
14.0
29,517
33.7
56,484
7,571
215,708
23,331
28,110
20.0
155,344
13.0
2,996
5,927
215,708
FY21E
7,840
4,017
4.93
2.59
4.50
2.70
48.8
FY22E
3,418
27,045
30,463
145,126
18.0
37,733
27.8
62,132
9,237
246,957
22,798
33,170
18.0
180,199
16.0
3,295
7,495
246,957
FY22E
9,792
5,196
5.30
2.88
3.50
2.00
46.9
4 July 2020
5
 Motilal Oswal Financial Services
Equitas Holdings
Financials and Valuations
Ratios
Y/E March
Yield and Cost Ratio (%)
Avg. Yield- on Earning Assets
Avg. Yield on loans
Avg. Yield on Investments
Avg. Cost of Int. Bear. Liab.
Interest Spread
NIM (on IEA)
Business and Efficiency Ratios (%)
Loans/Deposit Ratio
CASA Ratio
Cost/Assets
Cost/Total Income
Cost/Core income
Int. Expense/Int.Income
Fee Income/Total Income
Non Int. Inc./Total Income
Empl. Cost/Total Expense
Investment/Deposit Ratio
FY16
20.3
24.0
12.4
11.2
9.0
11.8
FY17
19.5
25.9
2.0
10.5
9.0
11.5
FY18
14.9
20.6
7.2
7.8
7.1
8.7
FY19
15.1
18.8
8.3
8.1
6.9
8.2
FY20
15.6
19.1
6.7
8.0
7.7
8.8
FY21E
14.3
18.0
6.8
7.2
7.2
8.2
FY22E
14.2
17.5
6.7
7.1
7.1
8.0
NM
NM
5.7
53.0
53.9
42.0
9.8
11.5
65.0
NM
309.6
17.6
6.5
63.4
65.2
40.7
9.0
11.8
65.0
100.6
165.3
34.6
6.8
83.1
83.1
41.5
15.1
15.1
59.6
81.7
128.7
25.2
6.4
70.3
70.3
45.5
19.7
19.7
54.7
26.0
127.4
20.5
6.1
66.4
66.4
43.5
15.9
15.9
60.1
21.7
126.3
24.0
6.0
67.4
69.5
43.0
12.7
15.7
60.8
22.9
124.2
26.0
5.7
67.1
69.0
43.7
13.2
15.9
61.7
22.9
Profitability Ratios and Valuation
RoE
RoA
Book Value (INR)
Growth (%)
Price-BV (x)
Adjusted BV (INR)
Price-ABV (x)
EPS (INR)
Growth (%)
Price-Earnings (x)
E: MOFSL Estimates
13.3
3.1
49.7
14.1
48.5
6.2
-0.6
8.9
2.0
66.0
32.9
64.3
5.2
-15.5
10.2
0.2
0.0
66.9
1.3
0.8
64.6
0.8
0.2
-96.9
333.9
9.3
1.4
66.0
-1.3
0.8
62.6
0.9
6.2
3,754.5
8.7
9.7
1.4
80.3
21.6
0.7
75.6
0.7
7.1
15.5
7.5
5.8
0.8
83.9
4.5
0.6
75.6
0.7
4.7
-33.4
11.3
8.8
1.1
89.1
6.3
0.6
78.5
0.7
7.6
60.0
7.0
4 July 2020
6
 Motilal Oswal Financial Services
Equitas Holdings
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.
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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
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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
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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
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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
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The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
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”,
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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
4 July 2020
7
 Motilal Oswal Financial Services
Equitas Holdings
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
********************************************************************************************************************************
The associates of MOFSL may have:
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financial interest in the subject company
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actual/beneficial ownership of 1% or more securities in the subject company
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received compensation/other benefits from the subject company in the past 12 months
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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.
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acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
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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)
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received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
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This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent
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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