27 October 2020
2QFY21 Results Update | Sector: Financials
Mahindra & Mahindra Financial
Estimate change
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
MMFS IN
615
155.2 / 2.2
246 / 76
-4/16/-42
1663
CMP: INR126
TP: INR165 (+31%)
Buy
Lower provisioning leads to big PAT beat; Book largely flat
Mahindra Finance (MMFS)’s 2QFY21 PAT was up 21% YoY to INR3b (a 64%
beat and v/s INR1.5b QoQ). While PPoP was largely in line with est., lower
provisions of INR6.2b (v/s est. INR8b) led to the PAT beat.
PPoP grew 26% YoY to INR10.3b as opex declined 24% YoY to INR3.9b.
Decline in opex was largely driven by 46% YoY decline in other expenses.
Value of Assets (VOA) financed stood at INR54b (down 45% YoY).
In the
Auto/UV and Tractor segments, VOA was down just 22–23% YoY, and in
other segments, it was down 65–85% YoY. While we acknowledge the
slowdown in the CV segment, disbursements in PV/Tractor were lower
than expected.
The loan book grew 1% QoQ/YoY to INR644b. With the uptick seen in
2HFY21, management is confident of 8–10% YoY growth in AUM for FY21.
Auto / Utility Vehicle disbursements better v/s other segments
Financials & valuations (INR b)
Y/E March
2020
2021E
NII
PPP
PAT
EPS (INR)
EPS Gr. (%)
BV/Sh.(INR)
Ratios
NIM (%)
C/I ratio (%)
RoA (%)
RoE (%)
Payout (%)
Valuations
P/E (x)
P/BV (x)
Div. Yield (%)
51.1
34.0
9.1
14.7
-41.8
185
8.3
37.3
1.3
8.3
0.0
8.6
0.7
0.0
57.4
42.7
9.8
8.0
-46.0
125
8.9
29.3
1.3
7.3
23.4
15.8
1.0
0.0
2022E
61.8
45.0
11.2
9.1
13.9
132
GS3
9.2
30.8
1.4
7.0
23.4
13.9
1.0
1.4
ratio improves sequentially to 7.03%, but ECL declines
The Gross Stage 3 ratio improved ~215bp QoQ to 7.03%. The company
reduced its PCR to 35% from 40% in 1QFY21. Adjusted for the impact of
the SC order on NPL classification, GS3/NS3 would have been
7.53%/4.97%.
MMFS wrote off INR10.6b during the quarter v/s INR5.2b YoY. Also, given
the reduction in PCR (as mentioned above), total ECL decreased to 4.9%
v/s 5.5% in 1QFY21 (3.3% in 2QFY20).
Calc. yield on loans improved 65bp YoY to 16.1%, while cost of funds
declined 75bp YoY to 7.9%.
Mahindra Rural Housing Finance:
Disbursements remained muted at
INR1.1b. PBT/PAT increased 36%/100% YoY to INR827m/INR574m.
Collection efficiency (CE) for Sep came in at 82% (normally 87–88%). 250–
275k customers who availed moratorium did not pay in September. Do not
expect more than 100–150k customers (of 2m totally) to request
restructuring (~INR60b).
During the quarter, the company made COVID-related provisions of
INR4.34b. Taxi, School Bus, HCV, and tourism-related vehicle segments
remain pressured. These comprise 7–8% of the portfolio.
Other highlights
Shareholding pattern (%)
As On
Sep-20 Jun-20
Promoter
52.2
51.2
DII
12.5
13.1
FII
21.7
23.9
Others
13.7
11.9
FII Includes depository receipts
Sep-19
51.2
15.3
25.6
8.0
Highlights from management commentary
Valuation and view
Disbursements at 55% of YoY levels improved from the prior quarter, yet came
in below expectations, given the strong trends in OEMs. While we expect an
uptick in 2H, overall loan growth should be in the mid-single digits. While asset
quality numbers are encouraging, we believe the true impact of the lockdown
would reflect only in 2HFY21. We increase our FY21 EPS estimate by 8% given
lower credit cost. Our FY22 EPS estimate is largely unchanged. While RoE is
currently subdued at 7%, it should reach 10% in FY23E. Maintain Buy, with TP
of INR165 (1.2x Sep’22E BVPS).
Research Analyst: Alpesh Mehta
(Alpesh.Mehta@MotilalOswal.com) |
Piran Engineer
(Piran.Engineer@MotilalOswal.com)
Nitin Aggarwal
(Nitin.Aggarwal@MotilalOswal.com) |
Divya Maheshwari
(Divya.Maheshwari@motilaloswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
14
Oswal
2020
1
Motilal
January
research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
Mahindra & Mahindra Financial
Quarterly Performance
Y/E March
Operating Income
Other Income
Total income
YoY Growth (%)
Interest Expenses
Net Income
YoY Growth (%)
Operating Expenses
Operating Profit
YoY Growth (%)
Provisions
Profit before Tax
Tax Provisions
Net Profit
YoY Growth (%)
Key Operating Parameters
(%)
Yield on loans (Cal)
Cost of funds (Cal)
Spreads (Cal)
Credit Cost (Cal)
Cost to Income Ratio
Tax Rate
Balance Sheet Parameters
Loans (INR B)
Change YoY (%)
Value of Asset Fin (INR B)
Change YoY (%)
Borrowings (INR B)
Change YoY (%)
Loans/Borrowings (%)
Debt/Equity (x)
Asset Quality Parameters
(%)
GS 3 (INR B)
Gross Stage 3 (% on
Assets)
NS 3 (INR B)
Net Stage 3 (% on Assets)
PCR (%)
ECL (%)
Return Ratios (%)
ROAA
ROAE
1Q
23,940
185
24,125
24.4
11,282
12,843
17.7
5,600
7,243
2.6
6,196
1,047
363
684
-74.6
FY20
2Q
3Q
24,864 25,806
545
354
25,409 26,160
18.4
16.5
12,022 12,089
13,387 14,072
10.2
14.8
5,196 5,189
8,190 8,883
4.1
19.3
3,606 4,001
4,584 4,882
2,066 1,229
2,518 3,653
-34.0
14.6
4Q
26,369
389
26,758
7.9
12,895
13,863
3.8
4,197
9,666
23.9
6,741
2,925
716
2,209
-62.4
1Q
26,405
144
26,549
10.0
12,646
13,903
8.3
3,457
10,447
44.2
8,427
2,020
523
1,497
118.7
FY21
2Q
3QE
26,129 27,226
366
375
26,495 27,601
4.3
5.5
12,216 12,094
14,279 15,507
6.7
10.2
3,968 4,882
10,311 10,625
25.9
19.6
6,194 7,250
4,117 3,375
1,082
888
3,035 2,487
20.6
-31.9
FY20
FY21E
4QE
28,378 1,00,979 1,08,138
366
1,473
1,252
28,745 1,02,451 1,09,390
7.4
16.3
6.8
12,060 48,287
49,016
16,684 54,164
60,374
20.4
11.3
11.5
5,408 20,182
17,715
11,276 33,982
42,659
16.7
12.6
25.5
7,503 20,545
29,374
3,773 13,438
13,285
988
4,374
3,481
2,785
9,064
9,804
26.1
-41.8
8.2
(INR m)
2QFY21E v/s est
26,581
250
26,831
5.6
12,267
14,565
8.8
4,071
10,494
28.1
8,000
2,494
648
1,846
-26.7
-2
-1
0
-2
-3
-2
-23
65
67
64
15.3
8.4
6.9
4.0
43.6
34.6
624
20.9
106
2.5
548
28.4
113.9
5.0
15.5
8.6
6.8
2.3
38.8
45.1
638
15.0
97
-10.2
565
18.0
112.9
5.3
15.7
8.4
7.3
2.5
36.9
25.2
655
12.4
128
-3.8
587
17.9
111.5
5.3
15.9
8.7
7.2
4.1
30.3
24.5
650
6.1
93
-21.0
595
12.5
109.3
5.2
16.2
8.2
8.0
5.2
24.9
25.9
638
2.3
35
-67.1
634
15.7
100.8
5.5
16.1
7.9
8.2
3.9
27.8
26.3
644
0.9
54
-44.6
604
6.9
106.7
4.1
16.5
8.1
8.4
4.5
31.5
26.3
654
-0.2
100
-21.8
594
1.1
110.0
3.9
16.7
8.2
8.5
4.5
32.4
26.2
680
4.7
90
-2.8
586
-1.4
116.0
3.8
15.8
8.6
7.2
3.3
37.3
32.5
650
6.1
424
-8.3
595
12.5
109.3
5.2
16.0
8.3
7.7
4.4
29.3
26.2
680
4.7
276
-35.0
586
-1.4
116.0
3.8
53.0
8.2
39.8
6.3
24.9
3.6
0.4
2.5
52.0
7.9
41.9
6.4
19.5
3.3
1.4
9.3
57.7
8.5
44.5
6.7
22.9
3.6
2.0
13.4
57.5
8.4
39.7
6.0
31.0
4.4
1.2
7.9
62.2
9.2
37.3
5.7
40.1
5.5
0.8
5.4
47.7
7.0
30.9
4.7
35.1
4.9
1.6
9.2
57.5
9.0
39.7
6.4
31.0
4.9
1.3
8.3
61.5
8.0
40.0
6.1
35.0
5.3
1.3
7.3
Highlights from management commentary
Business updates
While demand in the festive season is picking up, sales should be largely flat
YoY.
Farm cash flows are expected to be strong. Infra activity is seeing an uptick, but
not to levels expected by the management.
Taxi, School Bus, HCV, and tourism-related vehicle segments remain
pressured. These comprise 7–8% of the portfolio.
Expect to maintain market share going forward.
Overall disbursements in
2HFY21 would be largely flattish YoY. AUM growth of 8–10% YoY is expected
in FY21.
27 October 2020
2
 Motilal Oswal Financial Services
Mahindra & Mahindra Financial
Demand in the Tractor segment has thus far been reported from farms rather
than infra projects.
Supply-side issues are observed in pre-owned vehicles.
Yields are holding up well. But, higher liquidity has put ~50bp pressure on
margins.
Asset quality
70% of customers who opted for moratorium serviced their loans.
Restructuring for customers has not commenced yet.
Do not expect more than
100–150k customers (of 2m totally) to request restructuring (~INR60b).
Moreover, the company does not plan to offer any additional money in
restructuring – it would only increase the loan tenure or tweak EMI payments.
Do not foresee an NPL spike from hereon.
Collection efficiency (CE) for Sep stood at 82% (87–88% normally). 250–275k
customers who availed moratorium did not pay in September.
No NPL accounts were given moratorium.
Funding
Cost of funds should be largely stable hereafter.
This would bring down the liquidity on the BS.
Others
It has rationalized its regional offices, leading to decline in the branch count. The
company has not let go of any of its employees.
Competitors are crowding up in the non-Mahindra Tractor space.
Banks such as SBI are adopting an aggressive approach in the Car Loans space by
offering longer tenures and lower interest rates.
Once growth picks up, the expense ratio would also pick up due to higher
variable costs. However, due to COVID, the company has saved 50bp of
expenses permanently.
Key exhibits
Exhibit 1: Loan growth continues to decline (%)
Loans (INR b)
26.2
17.8
20.6
21.9
20.9
15.0
12.4
6.1
516
555
583
612
624
638
655
2.3
0.9
587
628
656
689
714
727
759
650
638
644
21.1
YoY Growth (%)
32.9
35.7
30.6
21.6
15.9
15.7
14.0
814
Exhibit 2: AUM growth down ~175bp sequentially (%)
AUM (INR b)
YoY Growth (%)
11.9
772
12.3
817
Source: MOFSL, Company
Source: MOFSL, Company
27 October 2020
3
 Motilal Oswal Financial Services
Mahindra & Mahindra Financial
Exhibit 3: Cumulative VOA financed down 56% YoY
Value of assets financed (INR b)
35.3
39.4
33.1
22.3
2.5
YoY Growth (%)
Exhibit 4: CoF declines 34bp sequentially (%)
Yields on loans (%)
89
CoF(%)
(4.0)
(3.9) (8.3)
35
15.3 15.6 15.5 16.1 15.3 15.5 15.7 15.9 16.2 16.1
(67.1)
103
212
345
462
106
203
331
424
(56.3)
8.2
8.2
8.4
8.9
8.4
8.6
8.4
8.7
8.2
7.9
Source: MOFSL, Company
Source: MOFSL, Company
Share of Tractor down to
26% from 34% QoQ in VOA
financed (%)
Exhibit 5: Share of Auto/UV in VOA financed up 900bp sequentially (%)
Auto/Uvs (%)
5
14
17
21
19
24
7
14
18
20
18
23
Tractors (%)
5
14
18
20
19
24
Cars (%)
4
14
19
20
18
25
CV & CE (%)
2
16
18
20
17
27
3
18
17
19
16
27
Used vehicles (%)
3
18
16
19
17
27
3
18
15
19
17
SME & Others (%)
19
3
6
15
34
23
9
7
5
21
26
32
28
Source: MOFSL, Company
Exhibit 6: Lower provisions in quarter
GS 3 (%)
81
PCR (%)
Exhibit 7: Credit cost down ~137bp QoQ
Credit Cost (Bp of AUM)
4.0
2.3
40
1.7
1.6
-0.8
9
7
2.3
2.5
4.1
5.2
3.9
35
9
35
9
27
8
6
25
8
20
8
23
9
31
8
35
Source: MOFSL, Company, GS 3% on total assets
Source: MOFSL, Company
Valuation and view
Disbursements at 55% of YoY levels improved from the prior quarter, yet came
in below expectations, given the strong trends in OEMs. While we expect an
uptick in 2H, overall loan growth should be in the mid-single digits.
Given its strong parentage, MMFS has been able to easily raise money from the
banking system and capital markets. Its incremental cost of funds is ~7.25%,
while its on-book cost of funds has come in below 8%. In addition to lower cost
of funds, reduced balance sheet liquidity would aid margins.
27 October 2020
4
 Motilal Oswal Financial Services
Mahindra & Mahindra Financial
While asset quality numbers are encouraging, we believe the true impact of the
lockdown would reflect only in 2HFY21. We forecast ~4.4% credit cost for FY21
and FY22.
We increase our FY21 EPS estimate by 8% given lower credit cost. Our FY22 EPS
estimate is largely unchanged. MMFS should deliver a normalized RoA of 2% and
RoE of 10% in FY23E. Maintain Buy, with TP of INR165 (1.2x Sep’22E BVPS).
Exhibit 8: We upgrade our EPS estimate for FY21 by 8%, but leave FY22 estimates largely unchanged
INR b
NII (incl. Sec. Inc)
Other Income
Total Income
Operating Expenses
Operating Profits
Provisions
PBT
Tax
PAT
Loans
Borrowings
Margins
Credit Cost
RoA on AUM
RoE
FY21
59.2
1.1
60.3
17.5
42.8
30.5
12.3
3.2
9.1
633
541
9.2
4.8
1.3
7.6
Old Est
FY22
57.6
1.2
58.8
19.6
39.2
24.2
14.9
3.9
11.0
616
527
9.2
3.9
1.6
8.5
FY21
59.1
1.3
60.4
17.7
42.7
29.4
13.3
3.5
9.8
680
586
8.9
4.4
1.3
7.3
New Est
FY22
63.7
1.4
65.1
20.1
45.0
29.9
15.1
4.0
11.2
712
608
9.2
4.3
1.4
7.0
FY21
-0.2
13.3
0.1
1.0
-0.3
-3.7
8.1
8.9
7.8
7.5
8.4
% Change
FY22
10.7
13.3
10.7
2.2
15.0
23.4
1.5
2.3
1.2
15.5
15.5
Source: MOFSL, Company
Exhibit 9: One-year forward P/B
2.6
P/B (x)
Min (x)
Avg (x)
+1SD
Max (x)
-1SD
2.0
1.7
1.6
1.4
Exhibit 10: One-year forward P/E
35.0
28.0
21.0
17.4
12.6
7.8
5.0
16.0
P/E (x)
Min (x)
Avg (x)
+1SD
Max (x)
-1SD
26.4
1.0
1.1
14.0
7.0
0.0
0.7
0.6
Source: MOFSL, Company
Source: MOFSL, Company
27 October 2020
5
 Motilal Oswal Financial Services
Mahindra & Mahindra Financial
Financials and valuations
Income Statement
Y/E March
Interest Income
Interest Expended
Net Interest Income
Change (%)
Other Operating Income
Other Income
Net Income
Change (%)
Operating Expenses
Operating Profits
Change (%)
Provisions
PBT
Tax
Tax Rate (%)
PAT
Change (%)
Proposed Dividend (Incl Tax)
2015
52,596
24,967
27,629
10.2
2,764
486
30,880
11.7
10,068
20,811
12.4
8,275
12,536
4,219
33.7
8,318
-6.2
2,730
2016
56,163
26,393
29,770
7.8
2,368
519
32,658
5.8
11,781
20,877
0.3
10,495
10,382
3,656
35.2
6,726
-19.1
2,713
2017
60,127
28,574
31,553
6.0
1,612
636
33,801
3.5
14,509
19,292
-7.6
13,091
6,201
2,198
35.5
4,002
-40.5
1,610
2018
65,842
30,816
35,025
11.0
493
517
36,036
6.6
14,336
21,700
12.5
5,681
16,019
5,907
36.9
10,111
152.6
2,938
2019
86,146
39,446
46,700
33.3
1,084
869
48,653
35.0
18,476
30,177
39.1
6,352
23,824
8,254
34.6
15,571
54.0
4,779
2020
99,417
48,287
51,130
9.5
1,561
1,473
54,164
11.3
20,182
33,982
12.6
20,545
13,438
4,374
32.5
9,064
-41.8
0
2021E
1,06,420
49,016
57,404
12.3
1,718
1,252
60,374
11.5
17,715
42,659
25.5
29,374
13,285
3,481
26.2
9,804
8.2
0
2022E
1,09,621
47,791
61,830
7.7
1,889
1,377
65,097
7.8
20,055
45,041
5.6
29,907
15,134
3,965
26.2
11,169
13.9
2,234
INR m
2023E
1,15,573
49,613
65,960
6.7
2,078
1,515
69,553
6.8
22,715
46,838
4.0
23,718
23,120
6,057
26.2
17,062
52.8
3,412
Balance Sheet
Y/E March
Equity Share Capital
Reserves & Surplus (Ex OCI)
Net Worth
Other Comprehensive Income
Net Worth
Change (%)
Borrowings
Change (%)
Other liabilities
Total Liabilities
Investments
Change (%)
Loans and Advances
Change (%)
Other assets
Total Assets
E: MOFSL Estimates
2015
1,128
55,566
56,694
56,694
11.3
2,62,633
9.7
31,414
3,50,741
10,857
8.0
3,24,314
11.1
15,571
3,50,741
2016
1,129
59,752
60,881
60,881
7.4
2,94,523
12.1
40,391
3,95,795
15,351
41.4
3,62,189
11.7
18,255
3,95,795
2017
1,130
64,994
66,124
0
66,124
8.6
3,52,656
19.7
24,404
4,43,185
19,843
29.3
4,06,000
12.1
17,342
4,43,185
2018
1,229
92,052
93,281
0
93,281
41.1
4,00,932
13.7
33,715
5,27,927
27,341
37.8
4,85,470
19.6
15,116
5,27,927
2019
1,230
1,03,072
1,04,221
81
1,04,302
11.8
5,28,469
31.8
38,009
6,70,780
37,917
38.7
6,12,496
26.2
20,367
6,70,780
2020
1,231
1,12,408
1,13,558
81
1,13,639
9.0
5,94,623
12.5
32,451
7,40,712
59,110
55.9
6,49,935
6.1
31,668
7,40,712
2021E
2,466
1,51,866
1,54,252
81
1,54,333
35.8
5,86,480
-1.4
37,318
7,78,131
70,932
20.0
6,80,317
4.7
26,882
7,78,131
2022E
2,466
1,60,802
1,63,187
81
1,63,268
5.8
6,08,283
3.7
42,916
8,14,466
70,932
0.0
7,11,691
4.6
31,844
8,14,466
INR m
2023E
2,466
1,74,452
1,76,918
81
1,76,999
8.4
6,72,046
10.5
49,353
8,98,317
81,571
15.0
7,79,573
9.5
37,172
8,98,317
27 October 2020
6
 Motilal Oswal Financial Services
Mahindra & Mahindra Financial
Financials and valuations
Ratios
Y/E March
Spreads Analysis (%)
Yield on Portfolio
Cost of Borrowings
Interest Spread
Net Interest Margin
Profitability Ratios (%)
Cost/Income
Empl. Cost/Op. Exps.
RoE
RoA
Asset Quality (%)
GNPA
NNPA
GNPA %
NNPA %
PCR %
Total Provisions/loans %
Capitalization (%)
CAR
Tier I
Tier II
Average Leverage on Assets (x)
2015
17.1
9.9
7.1
9.9
2016
16.4
9.5
6.9
9.4
2017
15.7
8.8
6.8
8.6
2018
14.8
8.2
6.6
8.0
2019
15.7
8.5
7.2
8.7
2020
15.8
8.6
7.2
8.3
2021E
16.0
8.3
7.7
8.9
2022E
15.8
8.0
7.8
9.2
2023E
15.5
7.8
7.8
9.1
32.6
45.6
15.5
2.5
36.1
47.4
11.4
1.8
42.9
46.9
6.3
1.0
39.8
58.1
12.7
2.1
38.0
59.0
15.8
2.6
37.3
56.9
8.3
1.3
29.3
61.6
7.3
1.3
30.8
62.6
7.0
1.4
32.7
63.5
10.0
2.0
20,997
8,182
6.5
2.6
61.0
4.2
32,242
12,351
8.9
3.6
61.7
5.8
68,311
40,938
15.5
10.1
40.1
8.9
50,270
33,109
9.8
6.8
34.1
6.7
40,706
32,907
6.4
5.4
19.2
3.4
57,467
39,665
8.8
6.4
31.0
4.9
61,489
39,968
9.0
6.1
35.0
5.3
57,289
37,238
8.0
5.4
35.0
5.1
49,299
32,044
6.3
4.2
35.0
4.5
18.3
15.5
2.8
6.2
2015
100.5
11.2
90.3
36.9
12.3
14.7
-6.4
4.0
17.3
14.6
2.7
6.3
2016
107.8
7.3
92.5
37.0
0.2
11.9
-19.2
4.0
18.1
13.6
4.5
6.6
2017
117.0
8.5
66.3
34.1
-7.7
7.1
-40.5
2.4
22.7
17.0
5.7
6.1
2018
151.8
29.7
114.1
35.3
3.4
16.5
132.3
4.0
3.2
20.3
15.5
4.8
6.1
2019
169.5
11.7
0.7
132.0
1.0
49.1
39.0
2.6
25.3
53.9
5.0
6.5
5.2
20.1
16.0
4.1
6.5
2020
184.5
8.9
0.7
136.2
0.9
55.2
12.5
2.3
14.7
-41.8
8.6
0.0
0.0
20.2
16.7
3.5
5.7
2021E
125.1
-32.2
1.0
100.8
1.3
34.6
-37.4
3.6
8.0
-46.0
15.8
0.0
0.0
20.1
17.1
3.0
5.0
2022E
132.3
5.8
1.0
109.7
1.1
36.5
5.6
3.4
9.1
13.9
13.9
1.8
1.4
19.8
17.3
2.5
5.0
2023E
143.5
8.4
0.9
124.0
1.0
38.0
4.0
3.3
13.8
52.8
9.1
2.8
2.2
Valuation
Book Value (INR)
BV Growth (%)
Price-BV (x)
Adjusted BV (INR)
Price-ABV (x)
OPS (INR)
OPS Growth (%)
Price-OP (x)
EPS (INR)
EPS Growth (%)
Price-Earnings (x)
Dividend
Dividend Yield (%)
E: MOFSL Estimates
27 October 2020
7
 Motilal Oswal Financial Services
Mahindra & Mahindra Financial
NOTES
27 October 2020
8
 Motilal Oswal Financial Services
Mahindra & Mahindra Financial
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.
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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
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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
27 October 2020
9
 Motilal Oswal Financial Services
Mahindra & Mahindra Financial
********************************************************************************************************************************
The associates of MOFSL may have:
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- 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
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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
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Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
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* 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.
27 October 2020
10