8 August 2020
2QFY21 Results Update | Sector: Others
BSE
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)
BSE IN
47
22.6 / 0.3
608 / 275
-15/-1/-10
125
CMP: INR502
TP: INR680 (+36%)
Buy
Operational beat led by strong market activity
BSE’s 2QFY21 reported revenue was above estimates, largely led higher
revenue from services to corporates. Management’s decision to explore
options to unlock value from its Star MF segment is encouraging. Strong
transactional income from the Equity segment was offset by lower revenue
in Star MF on one-time rate negotiation. Cross-subsidization by NSE has
limited monetization opportunities for BSE in the INX and Commodity
Derivatives segments in the near term. While the announced additional
income streams may be small currently, some of them have the potential to
present meaningful opportunity over the long term.
We find BSE to be a tactical play. Confidence on the structural story would
only come after a meaningful scale-up in adjacent revenue streams.
Reiterate
Buy.
BSE reported revenue growth of 18% YoY. The EBITDA margin stood at
19.7% v/s -5.3% in 2QFY20.
2QFY21 revenue of INR1.3b was above our estimate, led by higher listings
and book-building fees.
Strong growth in transactional income (~73% YoY) was partially offset by
58% decline in income from Star MF. Lower income in Star MF was largely
led by one-time rate negotiations with various AMCs.
A higher EBITDA margin was largely attributable to positive operating
leverage in the business.
During the quarter, BSE incurred a one-time expense of INR145.3m. This
resulted from arbitration and legal cost from an attempt to terminate the
index licensing agreement with S&P Dow Jones. It was offset by tax reversal
during the quarter, resulting in a tax credit of INR192m.
This led to an increase of 25% YoY in PAT to INR460m.
The Star MF platform is seeing strong traction in volumes. The number of
orders processed grew 56% YoY in 2QFY21.
However, led by one-time rate negotiations, BSE took a hit in September.
Oct onward, all of the AMCs would transact on the revised rate by the
company, which is lower than the realization in the previous quarters.
NSE’s competitive pricing has impacted BSE’s ability to charge in the Star
MF, INX, and Commodity Derivatives segments. BSE would approach the
regulator to intervene on anti-competitive practices; until then, it would
continue with its liquidity enhancement schemes and no/low charges (Star
MF).
Financials & Valuations (INR b)
Y/E Mar
2020 2021E 2022E
Net Sales
4.5
5.0
5.5
EBIT
-0.5
0.2
0.3
PAT
1.4
2.1
2.2
EPS (INR)
24.9
37.9
47.3
EPS Gr (%)
-32.5
52.0
25.0
BV / Sh (INR)
494
543
566
Ratios
RoE (%)
5.0
7.0
8.4
RoCE (%)
7.9
10.6
11.7
Valuations
P/E (x)
20.1
13.2
10.6
P/BV (x)
1.0
0.9
0.9
Operations above estimates
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Jun-20 Mar-20 Jun-19
0.0
0.0
0.0
9.9
10.5
13.6
42.0
42.5
44.1
48.1
47.0
42.3
FII Includes depository receipts
Key highlights from management commentary
Research Analyst: Anmol Garg
(Anmol.Garg@MotilalOswal.com)
11 February
are
Investors
2020
advised to refer through important disclosures
1
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
BSE
BSE market share in India INX, operating out of GIFT City, stood at 79%. Total
turnover in 2Q increased 38% YoY to USD206.4b.
BSE expects inter-operability, along with a push toward the best price execution,
to increase liquidity on its electronic trading platform over time.
Currently, BSE hosts a large amount of smaller companies on the platform. With
an external push, brokers should start using BSE for larger companies as well.
BSE would maintain its capital allocation policy of returning 90–95% standalone
profit to its shareholders.
Valuation and view – play on optionality, yield, and valuations
Our ‘Buy’ stance on BSE is centered on option value from new segments (Star
MF platform, Commodities, and INX) over and above the SOTP value of its
businesses.
Our SOTP fair valuation of BSE ascribes value to: (i) core operations excl. cash
income (INR82/share), (ii) BSE operations, including cash and margin money
income (INR301/share), and (iii) the floating of encumbered cash
(INR153/share), and (iv) implied value from CDSL’s market price at a Holdco
discount (INR147/share). Our TP of INR680 implies a 37% upside.
(INR m)
Var.
(%/bp)
19.2
1901bp
-1.4
706.5
1679bp
9.4
7.7
-24.7
27.1
-51.0
-324.7
-13976bp
57.8
43.7
1272bp
-633bp
Cons. Quarterly perf.
Y/E March
Revenue from operations
YoY Change (%)
Total Expenditure
EBITDA
Margins (%)
Depreciation
Interest
Investment income
PBT before EO expense
Extra-Ord expense
PBT
Tax
Rate (%)
MI & P/L of Asso. Cos.
Reported PAT
YoY Change (%)
Margins (%)
E: MOFSL Estimates
Key Perfor. Indicators
Y/E March
1Q
1,095
-7.6
1,066
29
2.6
120
5
565
470
38
432
88
20.4
70
414
-19.7
32.7
FY20
2Q
3Q
1,088 1,104
-2.9
8.7
1,146 1,154
-58
-50
-5.3
-4.5
125
132
4
5
507
383
320
196
66 -211
254
407
-40
8
-15.7
2.0
73
57
367
456
-20.0
1.6
26.0 36.2
4Q
1Q
1,196 1,032
6.2
-5.7
1,150 1,049
46
-17
3.8
-1.6
134
132
10
22
362
589
264
418
267
121
-3
297
82
73
-2,562.5 24.7
72
101
-13
325
-102.5 -21.5
-161.4 24.1
FY21E
2Q
3QE
1,284 1,314
18.0 19.0
1,031 1,054
253
260
19.7 19.8
145
136
24
24
350
424
434
524
267
0
167
524
-192
131
-114.8 25.0
101
65
460
458
25.4
0.5
19.0 31.2
FY20 FY21E
4QE
1,379
15.3
1,095
285
20.6
138
24
440
563
0
563
141
25.0
69
491
-3,822.0
31.9
4,483
0.8
4,516
-33
-0.7
511
24
1,817
1,249
160
1,089
138
12.7
272
1,223
-33.5
32.6
5,009
11.7
4,229
781
15.6
551
94
1,803
1,939
388
1,551
153
9.9
336
1,734
39.5
40.7
Est. 2Q
1,077
-1
1,046
31
3
133
22
465
342
0
342
85
25
64
320
-13
25
Listing Fees
Listing processing and other listing fees
Book building fees
Other services to corporates
Transaction charges income - Equity
Transaction charges income - currency derivatives
Listing fees
Book building and other services
Star MF platform
1Q
394
44
43
11
226
16
438
54
119
FY20
2Q
381
68
49
16
147
17
449
65
88
3Q
419
81
26
18
139
16
500
44
121
4Q
386
107
64
13
166
19
493
77
119
1Q
359
32
18
7
168
13
391
25
142
FY21
2Q
379
93
133
12
255
14
472
145
37
FY20
3Q
4Q
1580
300
182
58
678
68
1880
240
447
FY21
8 November 2020
2
 Motilal Oswal Financial Services
BSE
Key highlights from management commentary
Star MF platform
The Star MF platform is seeing strong traction in volumes. The number of orders
processed grew 56% YoY in 2QFY21. Star MF contributed INR14.9b to net equity
inflow in Sep’20 v/s negative industry inflow of INR7.3b.
However, led by one-time rate negotiation, BSE took a hit in September. Oct
onward, all of the AMCs would transact on the revised rate by the company,
which is lower than the realization in the previous quarters.
India INX platform
BSE’s market share in India INX, operating out of GIFT City, stood at 79%. During
the quarter, total turnover increased 38% YoY to USD206.4b.
BSE is still unable to monetize the platform due to competitive pressures.
Equity and equity derivatives
BSE expects inter-operability, along with a push toward the best price execution,
to increase liquidity on its electronic trading platform over time.
Currently, BSE hosts a large amount of smaller companies on the platform. With
an external push, brokers should start using BSE for larger companies as well.
Total market share for BSE in the Equity segment is still below 6%.
Commodity derivatives
Commodity futures contracts include Gold, Silver, Copper, Oman Crude Oil, Guar
Gum, Guar Seed, Cotton, Almond, Brent Crude Oil, Aluminum, Zinc, and
Turmeric.
BSE’s market share in commodity derivatives stands at 7%. The platform is
focusing on contracts that do not exist yet on other exchanges.
Others
BSE would maintain its capital allocation policy of returning 90–95% standalone
profit to shareholders.
Valuation and view
Our ‘Buy’ stance on BSE is centered on option value from new segments (Star
MF platform, Commodities, and INX) over and above the SOTP value of its
businesses.
Our SOTP fair valuation of BSE ascribes value to: (i) core operation excl. cash
income (INR 82/share), (ii) BSE operations, including cash and margin money
income (INR301/share), (iii) the floating of encumbered cash (INR153/share),
and (iv) implied value from CDSL’s market price at a Holdco discount
(INR147/share). Our TP of INR680 implies a 37% upside.
8 November 2020
3
 Motilal Oswal Financial Services
BSE
Financials and valuations
Income Statement
Y/E March
Revenue
Revenue ex-CDSL
Change (%)
Employee expenses
Technology expenses
Admin & Others
EBITDA
EBITDA %
Depreciation / Amortization
EBIT
EBIT %
Finance costs
Investment income
PBT
Tax
ETR %
PAT before MI and associate profits
Minority Interest
Share of Associates profit
PAT after MI and Associate profits
Change (%)
PAT margin %
Exceptional items
PAT after exceptional items
Balance Sheet
Y/E March
Total fixed assets
Non-current investments
Other non-current assets
Total non-current assets
Cash & Current investments
Trade receivables
Other current assets
Total current assets
TOTAL ASSETS
Share Capital
R&S
Shareholders’ equity
Core SGF
Minority Interest
Deferred tax liabilities
LT borrowings
Other LT liabilities
Total non-current liabilities
Outstanding dues to creditors
Other current liabilities
Total current liabilities
TOTAL LIABILITIES
2015
4,022
2,976
32.6
999
704
1,492
827.4
20.6
588
239.7
6.0
7
2,226
2,458.8
438
17.8
2,021.0
213
3
1,810.5
-8.0
45.0
508
1,514
2016
4,686
3,459
16.2
1,116
806
1,656
1,108.6
23.7
617
491.8
10.5
7
1,897
2,381.6
324
13.6
2,057.5
364
3
1,696.7
-6.3
36.2
466
1,592
2017
5,255
3,797
9.8
1,415
1,056
1,732
1,052.0
20.0
540
512.0
9.7
10
2,785
3,287.0
406
12.4
2,881.0
446
11
2,446.0
44.2
46.5
208
2,238
2018
4,894
4,894
28.9
1,201
1,111
1,458
1,124.0
23.0
455
669.0
13.7
10
2,095
2,754.0
555
20.2
2,199.0
0
199
2,398.0
-2.0
49.0
26
2,372
2019
4,448
4,448
-9.1
1,392
1,134
1,736
186.0
4.2
511
-325.0
-7.3
9
2,427
2,093.0
233
11.1
1,860.0
0
292
2,152.0
-10.3
48.4
210
1,942
2020
4,483
4,483
0.8
1,513
1,177
1,826
-33.0
-0.7
511
-543.5
-12.1
24
1,817
1,249.4
138
11.0
1,111.4
-6
266
1,383.4
-35.7
30.9
160
1,223
2021E
5,009
5,009
11.7
1,491
965
1,772
780.9
15.6
551
229.7
4.6
94
1,803
1,939.1
153
7.9
1,786.0
0
336
2,122.4
53.4
42.4
388
1,734
(INR m)
2022E
5,510
5,510
10.0
1,625
1,052
1,932
901.3
16.4
562
339.1
6.2
94
2,129
2,375.1
594
25.0
1,781.3
0
387
2,168.2
2.2
39.3
0
2,168
(INR m)
2022E
2,599
9,252
4,156
16,006
35,493
604
679
36,777
52,783
90
25,847
25,937
4,354
186
45
0
111
156
758
21,392
22,150
52,783
2015
2,542
14,102
940
17,585
23,184
360
844
24,389
41,974
107
24,502
24,609
1,113
1,986
27
36
648
710
581
12,975
13,556
41,973
2016
2,496
15,251
1,327
19,074
21,474
480
1,043
22,996
42,070
107
24,385
24,493
1,761
2,223
2
19
719
739
697
12,158
12,854
42,070
2017
2,519
17,478
1,128
21,125
29,278
687
740
30,705
51,830
108
26,516
26,624
2,045
2,909
0
0
88
88
563
19,601
20,164
51,830
2018
2,142
17,600
1,537
21,278
27,715
549
302
28,566
49,844
107
31,237
31,344
2,910
0
142
0
95
236
629
14,725
15,354
49,844
2019
2,181
13,096
1,830
17,108
27,137
490
304
27,931
45,039
104
29,253
29,357
3,945
0
0
0
114
114
419
11,205
11,623
45,039
2020
2,085
9,252
4,207
15,543
28,196
700
321
29,216
44,759
90
24,161
24,251
4,354
186
1
0
111
113
758
15,098
15,856
44,759
2021E
2,341
9,252
4,168
15,761
32,484
549
618
33,651
49,412
90
24,787
24,877
4,354
186
36
0
111
148
758
19,090
19,848
49,412
8 November 2020
4
 Motilal Oswal Financial Services
BSE
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
EPS (excl. EOI)
Cash EPS
Book Value
DPS
Payout %
Valuation (x)
P/E
Cash P/E
EV/EBITDA
EV/Sales
Price/Book Value
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
Turnover Ratios
Debtors (Days)
Fixed Asset Turnover (x)
E: MOFSL Estimates
Cash Flow Statement
Y/E March
PBT
Depreciation
Contribution to SGF
Interest & Dividend income
Other adjustments
Working capital changes
Taxes paid
CF - Operations
Capital expenditure
FCF
Other investment changes
CF - Investments
Finance costs
Dividends including taxes
Others
CF - Financing activities
Net change in cash
Cash at beginning
Cash at end
2015
23.8
23.8
34.5
450.8
10.0
42.1
21.0
14.5
-8.3
-1.0
1.1
2.0
5.3
12.8
36.4
2.1
2016
24.5
24.5
34.4
448.7
8.0
32.6
20.4
14.5
-4.7
-0.7
1.1
1.6
5.5
12.6
41.2
2.6
2017
41.6
41.6
51.6
494.9
28.0
67.3
12.0
9.7
-11.7
-2.2
1.0
5.6
8.4
13.8
48.5
3.1
2018
130.3
43.5
138.6
574.2
30.0
23.0
3.8
3.6
-15.2
-2.3
0.9
6.0
7.6
10.7
44.9
2.5
2019
36.9
36.9
46.6
558.3
40.0
108.3
13.5
10.7
10.4
-2.0
0.9
8.0
6.6
9.3
50.0
2.0
2020
24.9
24.9
35.3
493.9
50.0
200.7
20.1
14.2
6.0
-1.8
1.0
10.0
5.0
7.9
73.3
2.0
2021E
37.9
37.9
49.9
543.2
40.0
105.6
13.2
10.0
-13.9
-2.2
0.9
8.0
7.0
10.6
40.0
2.5
2022E
47.3
47.3
59.6
566.4
50.0
105.6
10.6
8.4
-14.7
-2.4
0.9
10.0
8.4
11.7
40.0
2.5
2015
1,951
588
258
-2,107
18
-1,756
-480
-1,528
-726
-2,254
4,413
3,687
-7
-607
7,114
6,500
8,659
14,525
23,184
2016
1,916
617
174
-1,901
261
-825
-733
-491
-623
-1,115
2,270
1,646
-7
-1,244
5,469
4,218
5,373
16,101
21,474
2017
3,287
540
208
-5,255
10
7,670
-406
6,053
-650
5,403
3,381
2,731
-10
-670
-3,085
-3,764
5,020
24,258
29,277
2018
2,754
455
26
-4,894
10
-4,064
-555
-6,268
-700
-6,968
1,904
1,204
-10
-2,839
15,802
12,953
7,889
19,826
27,715
2019
2,093
511
210
-4,448
9
-3,899
-233
-5,757
-701
-6,458
5,184
4,483
-9
-4,258
17,196
12,929
11,656
15,481
27,137
2020
1,249
511
160
-4,483
24
1,880
-138
-797
-379
-1,175
7,880
7,502
-24
-5,677
11,100
5,399
12,104
16,092
28,195
2021E
1,939
551
388
-5,009
94
1,270
-153
-921
-800
-1,721
5,009
4,209
-94
-7,096
16,005
8,815
12,103
20,381
32,484
(INR M)
2022E
2,375
562
0
-5,510
94
1,492
-594
-1,582
-800
-2,382
5,510
4,710
-94
-5,677
14,746
8,975
12,104
23,390
35,494
8 November 2020
5
 Motilal Oswal Financial Services
BSE
NOTES
8 November 2020
6
 Motilal Oswal Financial Services
BSE
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
8 November 2020
7
 Motilal Oswal Financial Services
BSE
********************************************************************************************************************************
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.
8 November 2020
8