Motilal Oswal Financial Services

10 November 2020

IndiaMART

2QFY21 Results Update | Sector: Technology

IndiaMART

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)

Financials & Valuations (INR b)

Y/E Mar

2020 2021E

Sales

6.4

6.5

EBITDA

1.7

2.9

PAT

1.3

2.7

EPS (INR)

51.3

92.7

EPS Gr. (%)

566.2

80.8

BV/Sh. (INR)

150.4

279.5

Ratios

RoE (%)

57.8

68.1

RoCE (%)

62.3

68.7

Payout (%)

22.7

12.9

Valuations

P/E (x)

97.5

53.9

P/BV (x)

33.2

17.9

INMART IN

144.5 / 2



5488 / 1641

-8/73/177

409

CMP: INR4,965



TP: INR5,830 (+17%)

Buy

Strong recovery; Positive outlook

IndiaMART posted a strong operational performance in 2Q, primarily led by

a quicker-than-anticipated rebound in paid suppliers. Collections were up

73% sequentially, reaching 94% of pre-COVID levels.

The company also showed great resilience in margins, curtailing its operating

cost to INR815m, v/s an average quarterly run-rate of ~INR1.2b. This led to

EBIT margins of 47%, v/s 23% in FY20. While we concur that margins are not

sustainable at current levels, overall the company would see benefit from

cost optimization and operating leverage.

Leading indicators such as traffic and business inquiries are up 38% and 56%,

respectively, from pre-COVID levels. This provides confidence on the

company sustaining the current momentum. Management targets adding 5k

paid suppliers every quarter and is confident of breaching FY20 levels by the

end of 4QFY21.

We increase our EPS estimate by 7%/4% for FY21/FY22 as we anticipate

much faster recovery in operations.

We value IndiaMART on a DCF basis at INR5,830 per share (+17% upside), on

an assumption of 11% WACC and 5% terminal growth rate, implying a one-

year forward multiple of 55x.

Reiterate Buy.

2QFY21 revenue stood at INR1.6b (7% beat on our est.; +4.2% YoY and

+6.6% QoQ). Collections increased by 73% QoQ and are now at 94% of pre-

COVID levels.

Revenue was a function of 6% QoQ increase in paid suppliers and 1 QoQ%

rise in realization.

During the quarter, along with a rebound in monthly subscribers, the

company was also able to upsell packages to its suppliers, resulting in an

increase in ARPU levels.

The EBIT margin was the highest ever at 47% (est. 34%; +27pp YoY and

+240bp QoQ). This was led by optimization across cost items. Employee

expenses reduced 29% YoY, and outsourcing sales cost declined 28% YoY.

All traffic on the platform was organic in nature; therefore, the company has

not incurred any advertisement expenses.

PAT was up 686% YoY to INR700m, implying a PAT margin of 43%. Adjusting

for a one-time tax impact in 2QFY20, PAT increased 74% YoY.

Traffic growth stood at 32% YoY, and business inquiries increased 42% YoY.

Total suppliers on the platform stood at 6.2m, an increase of 9% YoY. Total

paid suppliers stood at 141k (est. 139k; +3% YoY and +6% QoQ). ARPU

increased 3% YoY and 1% QoQ to INR45.8k.

During the quarter, total employee count stood at 2,917 (a reduction of

233). This was majorly due to natural attrition, which was not filled up.

Total cash and investments increased 34% YoY to INR10b. CFO stood at

INR780m, an increase of 85% YoY.

2022E

8.0

3.1

2.7

95.4

2.9

406.2

43.8

15.7

52.4

12.3



Beat on all fronts



Shareholding pattern (%)

As On

Promoter

DII

FII

Others

Sep-20

52.0

5.7

22.3

20.0

Jun-20

52.3

3.8

15.3

28.6

Sep-19

52.3

3.6

10.6

33.5



FII Includes depository receipts



Research Analyst: Anmol Garg

(Anmol.Garg@MotilalOswal.com)

Mukul Garg – Research analyst

(Mukul.Garg@MotilalOswal.com) /

Heenal Gada – Research analyst

(Heenal.Gada@MotilalOswal.com)

10 November 2020

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.

IndiaMART

Management commentary highlights



The increase in collections was primarily led by: 1) an increase in online

adoption and 2) an uptick in economic activity. The relevancy of the platform

remains very strong as repeat buyers are now at 60% v/s 55% in the previous

quarter.

1HFY21 margins almost doubled, led by: 1) a reduction in employee expenses on

some amount of cutback in salaries and the non-payment of variable pay, 2)

pricing renegotiations in outsourcing sales contracts, and 3) the optimization of

other expenses, led by the closure of offices.

Going ahead, we can expect half of the benefit to return as the company has

now rolled back salaries to pre-COVID levels (from August 2020). Also, it would

start paying variable pay when collections breach the pre-COVID mark.

In 2Q, IndiaMART added 8K suppliers, of which 80% of suppliers witnessed

churn in 1QFY21. Net new suppliers were around 2000. The company expects to

breach the 147k mark (pre-COVID levels) before the end of FY21. The target is to

add 5k paid suppliers every quarter. Most of the additions from the next quarter

would be net new suppliers.

For the first 10–15 years, IndiaMART solely focused on exports. However, it took

the strategic decision to focus only on domestic suppliers in 2009. With India

turning attractive for manufacturing, IndiaMART decided to once again venture

into exports (from Sept). Currently, the company has only a few 100 suppliers

outside of India. It would be some time before the initiative would scale up and

the company achieves significant revenue contribution from the same.

IndiaMART expects JD Mart (Justdial’s new B2B initiative) to help expand the

market. If the platform is able to generate positive ROI for its customers, it could

co-exist with IndiaMART as the market is very large. However, there is also a

strong network effect in the B2B Classifieds businesses; therefore, IndiaMART

does not expect any market share loss from the launch of JD Mart. The company

does not expect to spend on advertising to compete with the JD Mart platform.

Valuation and view



The COVID-19 impact led to a 10% reduction in paid suppliers in 1QFY21, leading

to a drop in collections by 50%. However, collections sharply rebounded,

offsetting most of the impact of 1QFY21. Given the strong momentum

witnessed in 2Q, coupled with an encouraging stand from the management, we

expect a 12%/4% CAGR in paid suppliers/ARPU for FY20–23.

We remain confident of strong fundamental growth in operations, driven by: a)

high growth in digitization among the SMEs (~25%), b) the need for out-of-the-

circle buyers, c) a strong network effect, d) >70% market share in the underlying

industry, e) the ability to increase ARPU on account of low price sensitivity, and

f) high operating leverage.

We arrive at our DCF-based Target Price of INR5,830 on the assumption of 11%

WACC and 5% terminal growth rate. TP implies upside of 17%.

Reiterate Buy.

10 November 2020

IndiaMART

Consolidated – Quarterly Earnings Model

Y/E March

FY20

Gross Sales

1,470

1,566

YoY Change (%)

30.1

28.4

Total Expenditure

1,110

1,203

EBITDA

360

363

Margins (%)

24.5

23.2

Depreciation

Interest

Other Income

140

205

PBT before EO expense

460

511

PBT

460

511

Tax

140

422

Rate (%)

30.4

82.6

Minority Interest &

Profit/Loss of Asso. Cos.

Reported PAT

320

Adj PAT

320

YoY Change (%)

-156.1

-55.5

Margins (%)

21.8

5.7

E: MOFSL Estimates

(INR m)

Var.

(% / bp)

6.9

670bp

-16

1370bp

-25

-100bp

1,649

23.1

1,213

436

26.4

166

539

761

141

18.5

620

398

37.2

24.1

1,701

23.3

1,178

523

30.7

172

619

612

169

27.6

443

450

55.2

26.5

1,531

4.1

798

733

47.9

337

1,008

1,004

263

26.2

741

745

132.8

48.7

FY21

3QE

1,632 1,670

4.2

1.3

815

966

817

703

50.1

42.1

179

181

934

839

932

839

234

219

25.1

26.2

698

700

686.5

42.9

619

55.6

37.1

FY20

4QE

1,688

-0.7

1,003

685

40.6

190

829

217

26.2

612

36.1

36.3

6,386

26.0

4,704

1,682

26.3

207

683

2,129

2,344

872

37.2

1,472

1,257

498.6

19.7

FY21E Estimate

2QE

6,521

1,527

2.1

-2.5

3,583

971

2,938

556

45.1

36.4

179

887

239

3,610

750

3,604

750

933

196

25.9

26.2

2,671

2,677

112.9

41.0

554

522.5 16400bp

36.3 660bp

Key Perfor. Indicators

Y/E March

Revenue Indicators

Paid Suppliers ('000)

ARPU ('000)

Cost Indicators

Employees

Outsourcing Sales Employees

Other Expenses ( INR M)

133.0

43.6

3160

1138

350

FY20

137.0

44.6

3324

1350

335

142.0

45.3

3373

1374

305

147.0

45.0

3307

1374

320

133.0

45.5

3150

1315

198

FY21E

3QE

141.0

45.8

2917

1000

196

147.3

45.4

3017

1100

267

FY20

4QE

150.4

44.9

3017

1100

304

559

3307

1374

1310

572

3017

1100

965

FY21E

Management commentary highlights

Recruitment

Robust financial performance



Revenue for the quarter stood at INR1.6b, an increase of 4.2% YoY. The EBIT

margin stood at 47%, up 27pp YoY. PAT stood at INR700m, up 686% YoY. In 2Q,

collections increased by 75% sequentially and are now at 94% of pre-COVID

levels. This was primarily led by 1) an increase in online adoption and 2) an

uptick in economic activity. The platform’s relevancy remains very strong as

repeat buyers are now at 60% v/s 55% in the previous quarter.

Expect some margin normalization going forward



1HFY21 margins almost doubled, led by: 1) a reduction in employee expenses on

some amount of cutback in salaries and the non-payment of variable pay, 2)

pricing renegotiations in outsourcing sales contracts, and 3) the optimization of

other expenses, led by the closure of offices. Going ahead, we can expect half of

the benefit to return as the company has now rolled back salaries to pre-COVID

levels (from August 2020). Also, it would start paying variable pay when

collections breach the pre-COVID mark. The company also expects some

increase in other expenses, led by a potential increase in transportation costs on

account of in-person sales pitches and collections.

10 November 2020

IndiaMART

Reduced employee count



In 2Q, the employee count declined by 300 and outsourced sales employee

count by ~400. This was due to the company’s decision not to fill the empty

positions (due to natural attrition) and the sale of its subsidiary 10Times Online

Ltd. Going forward, the company would re-look at hiring more sales employees

when collections increase above pre-COVID levels.



The focus is on adding 5k paid customers quarterly.



In 2Q, IndiaMART added 8k suppliers, of which 80% witnessed churn in 1QFY21.

Net new suppliers were around 2000. The company expects to breach the 147k

mark (pre-COVID levels) before the end of FY21. The target is to add 5k paid

suppliers every quarter. Most of the additions from the next quarter would be

net new suppliers.

Mode of payment



Pre-COVID almost 40% of the payments used to happen via check/cash; the

salesperson collected the payment from the client location. In 2Q, 85–90% of

payments have been happening digitally. Going forward, the company expects

some rollback in digital payments as it is necessary for the sales team to pitch

the benefit of the IndiaMART portal to promoters/CMOs of platinum clients –

which commits more than 200–300k during the time of renewal of the

contracts.

New features on the platform



IndiaMART’s focus is on making its platform more relevant to its suppliers. There

is a high focus on improving the lead management system so that more and

more relevant leads go to the suppliers. Additionally, the company would work

on features related to logistics and credit, wherein it would match logistics and

credit partners to its suppliers. IndiaMART is also focusing on enhancing its

payment gateway feature by adding more features and making it more user-

friendly.

Re-initiation of exports



For the first 10–15 years, IndiaMART solely focused on exports. However, it took

the strategic decision to focus only on domestic suppliers in 2009. With India

turning attractive for manufacturing, IndiaMART decided to once again venture

into exports (from Sept). Currently, the company has only a few 100 suppliers

outside of India. It would be some time before the initiative would scale up and

the company achieves significant revenue contribution from the same.

Competition



IndiaMART expects JD Mart (Justdial’s new B2B initiative) to help expand the

market. If the platform is able to generate positive ROI for its customers, it could

co-exist with IndiaMART as the market is very large. However, there is also a

strong network effect in the B2B Classifieds businesses; therefore, IndiaMART

does not expect any market share loss from the launch of JD Mart. The company

does not expect to spend on advertising to compete with the JD Mart platform.

In terms of other competitors, Udaan, Power2SME, etc. focus on B2B e-

commerce, via which they assist suppliers in selling standardized B2B products

to buyers. IndiaMART has a very different market from these companies as the

majority of the products on the platform are non-standardized.

10 November 2020

IndiaMART

Exhibit 1: Leading indicators are positive

Traffic (m)

259

181

198

173

171

184

196

188

180

191

131

118 120 112 113

123

112 116

Business enquiries (m)

175

Source: Company, MOFSL

Exhibit 2: Sharp rebound in paid suppliers

Paid Suppliers ('000)

137

142

147

133

141

Exhibit 3: ..with consistent ARPU

ARPU ( INR )

45.5 45.8

44.6 45.3 45.0

113

119

124

130

133

39.4 40.2

42.3 41.7

43.6

Source: MOFSL, Company

Valuation and view



The COVID-19 impact led to a 10% reduction in paid suppliers in 1QFY21, leading

to a drop in collections by 50%. However, collections sharply rebounded,

offsetting most of the impact of 1QFY21. Given the strong momentum

witnessed in 2Q, coupled with an encouraging stand from the management, we

expect a 12%/4% CAGR in paid suppliers/ARPU for FY20–23.

We remain confident of strong fundamental growth in operations, driven by: a)

high growth in digitization among the SMEs (~25%), b) the need for out-of-the-

circle buyers, c) a strong network effect, d) >70% market share in the underlying

industry, e) the ability to increase ARPU on account of low price sensitivity, and

f) high operating leverage.

We arrive at our DCF-based Target Price of INR5,830 on the assumption of 11%

WACC and 5% terminal growth rate. TP implies upside of 17%.

Reiterate Buy.

Change in estimates

Exhibit 4: Revisions to our estimates

Standalone business

Revenue (INR m)

YoY (%)

EBITDA (%)

EBIT (%)

EPS (INR)

FY20

6386.0

26.0

26.3

23.1

51.3

Revised

FY21E

6521.1

2.1

45.1

42.3

92.7

FY22E

7959.9

22.1

38.7

36.0

95.4

FY20

6,386.0

26.0

26.3

23.1

51.3

Earlier

FY21E

6,279.1

(1.7)

40.0

37.2

86.8

FY22E

7,164.0

14.1

34.2

31.3

91.4

FY20

0.0

0bp

0.0

Change (% / bp)

FY21E

FY22E

3.9

11.1

380bp

800bp

500bp

450bp

510bp

470bp

6.8

4.4

Source: MOFSL, Company

10 November 2020

IndiaMART

Story in Charts

Exhibit 5: Expect 12% CAGR in paid suppliers over FY20–23

Paying Suppliers ('000)

33%

20%

13%

108

130

13%

147

150

177

208

YoY Growth

Exhibit 6: …with 4% increase in ARPU

ARPU (INR '000)

43.4

45.1

47.1

42.3

17%

18%

32.8

32.1

37.2

38.4

Exhibit 7: …resulting in 15% revenue CAGR

Revenue (INR M)

29%

23%

Exhibit 8: Normalized EBIT to be significantly above FY20

levels

EBIT Margin (%)

42%

22%

23%

Growth YoY

26%

11%

16%

23%

36%

6521

2460

3180

4110

5070

6386

7960

9815

-52%

-19%

Exhibit 9: Strong operations with negative working capital

and low capex requirement to result in robust FCF

FCF (INR M)

4796

3770

2500

1768

563

2560

2527

Exhibit 10: Return ratios remain strong

RoE

36.0

RoCE

57.8 62.3

68.1 68.7

43.8 43.8

38.0 38.0

-34.2

-26.0

-56.2

FY18

Source:

FY19

FY20

FY21E

FY22E

FY23E

Source:

10 November 2020

IndiaMART

Financials and valuations

Consolidated - Income Statement

Y/E March

Total Income from Operations

Change (%)

Employees Cost

Outsourced sales cost

Other Expenses

Total Expenditure

% of Sales

EBITDA

Margin (%)

Depreciation

EBIT

Int. and Finance Charges

Other Income

PBT bef. EO Exp.

EO Items

PBT after EO Exp.

Total Tax

Tax Rate (%)

Minority Interest

Reported PAT

Adjusted PAT

Change (%)

Margin (%)

Consolidated - Balance Sheet

Y/E March

Equity Share Capital

Preference Capital

Total Reserves

Net Worth

Other Liabilities

Total Loans

Deferred Tax Liabilities

Capital Employed

Net Fixed Assets

Goodwill on Consolidation

Capital WIP

Other Assets

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

Misc Expenditure

Appl. of Funds

E: MOFSL Estimates

FY18

4,110

29.2

1,950

440

1,250

3,640

88.6

470

11.4

440

1,230

190

-600

-1,150

191.7

550

-185.7

13.4

FY19

5,070

23.4

2,290

570

1,370

4,230

83.4

840

16.6

800

650

410

560

350

62.5

210

-61.8

4.1

FY20

6,386

26.0

2,670

724

1,310

4,704

73.7

1,682

26.3

207

1,475

683

2,129

215

2,344

872

37.2

1,472

1,257

498.6

19.7

FY21E

6,521

2.1

2,077

541

965

3,583

54.9

2,938

45.1

179

2,760

887

3,610

-6

3,604

933

25.9

2,671

2,677

112.9

41.0

(INR m)

FY22E

7,960

22.1

2,632

815

1,433

4,880

61.3

3,080

38.7

215

2,866

857

3,722

974

26.2

2,749

2.7

34.5

(INR m)

FY22E

289

7,140

7,429

4,312

-576

11,165

1,514

11,219

4,813

4,456

335

6,475

187

5,962

325

-1,661

11,171

FY18

100

-3,312

-3,213

5,393

-1,247

933

345

3,111

642

467

168

3,247

419

2,720

107

-2,604

934

FY19

286

1,313

1,599

2,300

-964

2,935

6,450

657

402

250

4,308

450

3,709

149

-3,650

2,936

FY20

289

2,462

2,751

3,312

-536

5,527

1,514

8,719

401

169

215

5,166

179

4,682

305

-4,765

5,527

FY21E

289

4,823

5,112

3,643

-556

8,200

1,514

9,219

2,789

2,496

275

5,395

148

4,933

315

-2,606

8,206

10 November 2020

IndiaMART

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

Fixed Asset Turnover (x)

Asset Turnover (x)

Inventory (Days)

Debtor (Days)

Creditor (Days)

Leverage Ratio (x)

Current Ratio

Interest Cover Ratio

Net Debt/Equity

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

FY18

28.6

-175.6

0.0

174.8

-28.5

23.3

203.6

0.0

92.0

-34.2

36.0

30.5

56.4

4.4

0.2

0.4

1.1

FY19

7.7

87.4

0.0

649.4

57.2

26.8

161.9

0.0

91.7

-26.0

-56.2

-9.1

59.8

1.7

0.2

1.2

-4.3

FY20

51.3

150.4

10.0

22.7

97.5

33.2

22.4

85.2

0.2

89.2

57.8

62.3

-25.4

122.8

1.2

0.1

50.9

-3.2

FY21E

92.7

279.5

11.8

12.9

53.9

17.9

22.0

48.8

0.2

79.8

68.1

68.7

-59.4

90.6

0.8

0.5

76.1

-2.3

FY22E

95.4

406.2

15.0

15.7

52.4

12.3

17.5

45.3

0.3

122.8

43.8

-52.7

86.5

0.7

-2.1

(INR m)

FY22E

3,722

215

-974

1,663

4,627

-857

3,770

-235

3,535

-2,000

857

-1,378

-432

1,960

2,496

4,456

FY18

-601

-28

-10

1,297

687

1,103

1,791

-22

1,769

-1,586

-44

-1,653

152

291

177

467

FY19

539

-30

-52

1,684

2,183

368

2,551

-51

2,500

-2,591

-116

-2,758

144

-3

141

-65

467

402

FY20

2,114

211

-186

1,022

3,194

-589

2,605

-45

2,560

-2,047

-233

-2,325

-199

-333

-513

-233

402

169

FY21E

3,646

179

-933

480

3,408

-881

2,527

-199

2,329

-500

881

182

-36

-346

-382

2,327

169

2,496

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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

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IndiaMART

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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.

10 November 2020