TeamLease
10 November 2020
2QFY21 Results Update | Sector: Others
TeamLease
Buy
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
52.0
50.2
EBIT Margin (%)
1.3
1.6
PAT
0.8
0.9
EPS (INR)
48.9
53.8
EPS Gr. (%)
-14.7
10.0
BV/Sh. (INR)
334.6 388.4
Ratios
RoE (%)
15.0
14.9
RoCE (%)
5.8
13.0
Payout (%)
0.0
0.0
Valuations
P/E (x)
48.1
43.7
P/BV (x)
7.0
6.1
EV/EBITDA (x)
43.2
35.3
Div Yield (%)
0.0
0.0
TEAM IN
17
41.3 / 0.5
2908 / 1421
-2/18/-20
67
CMP: INR2,418
Optimistic outlook
TP: INR2,700 (+12%)
Stability to come in 3QFY21
The General Staffing headcount remained flat on a sequential basis and was
better than our expectation. Impressively, realizations remained stable
despite the pressure on markups in the industry. Furthermore, FTE
productivity improved to 300, contributing to margin expansion during the
quarter.
Ongoing restructuring in the lagging businesses is a key positive and should
unlock management bandwidth. With the management optimistic on the
prospect of growth recovery, we expect a good rebound in the General
Staffing headcount over the next two quarters, with an FY21 exit to be
better v/s FY20. Healthy cash conversion is another key positive.
Over the medium term, as both the central and state governments look
forward to liberalizing and formalizing the labor markets, TeamLease should
be among the biggest direct beneficiaries.
Our estimates remain largely unchanged. Our TP of INR2,700 implies 32x
FY22E EPS. Reiterate
Buy.
TeamLease reported revenue / EBITDA / adj. PAT growth of -11%/-6%/7%
YoY (v/s our estimate of -12%/0%/-3%). For 1H, the company reported
revenue / EBITDA / adj. PAT growth of -10%/0%/-1%.
Overall revenue was slightly ahead of our estimates. General Staffing
revenues were flat QoQ (better than expectations) and in line with
headcount movement.
Revenue from Specialized Staffing was resilient (~2% QoQ decline), while
revenue from other HR services declined (~12% QoQ), as the company
undergoes a planned exit from some of these service lines.
Overall EBITDA margins declined ~20bp QoQ, but improved YoY.
Within segments, General Staffing and Specialized Staffing continue to
improve on profitability, driven by business performance and cost
optimization.
Realizations in General Staffing remained stable despite markup pressure in
the industry.
While EBITDA was 6% below our estimates, higher other income drove PAT
ahead by 11% (v/s our expectations).
Management expects positive growth momentum in 3Q and 4Q, although
this would be nowhere near pre-COVID levels. However, festival demand
would not be as large as it was in earlier periods.
The Manufacturing and Auto industries are showing early signs of recovery,
reflected in the company’s NETAP headcount.
2022E
65.2
1.9
1.4
82.9
54.0
471.3
19.3
17.3
0.0
28.4
5.0
24.2
0.0
Marginal beat on revenues
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Sep-20
40.0
14.5
40.0
5.5
Sep-19
40.3
7.7
44.6
7.4
Jun-20
40.0
14.5
40.0
5.5
FII Includes depository receipts
Key highlights from management commentary
Mukul Garg – Research analyst
(Mukul.Garg@MotilalOswal.com)
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
10 November 2020
1
Heenal Gada – Research analyst
(Heenal.Gada@MotilalOswal.com)
 Motilal Oswal Financial Services
TeamLease
The management’s intended restructuring has played out in terms of headcount
and cost rationalization. Going forward, the focus would be on customer
growth.
The company reported de-growth of around 43% of its overall customers in 2Q,
and 30% of the total are now showing some signs of growth. Within Staffing, the
company has won a large-ticket customer and won back a large chunk of the
business from Samsung, increasing its market share.
Labor law reforms would not have an immediate impact on business revenues,
but over the longer term, the company would be a beneficiary of the same.
For the current year, the focus is on taking margins to FY19 levels. In the long
run, management targets a 3–4% margin band.
The company expects a tax refund of INR300m in 3QFY21.
Given some level of uncertainty in the economy (due to the back and forth on
lockdowns), some of the otherwise permanent roles are likely to be fulfilled
through flexi-staffing as employers attempt to keep their costs variable. We
noticed similar trends in the immediate aftermath of GFC and the
demonetization, when staffing companies benefitted due to positive hiring
trends in some verticals. Such a trend should likely play out in the near term,
benefitting staffing firms such as TeamLease.
Over the medium term, as both the central and state governments look to
liberalize and formalize the labor markets, TeamLease should be among the
biggest direct beneficiaries.
We keep our estimates largely stable. Our TP of INR2,700 implies 32x FY22E EPS.
Reiterate
Buy.
(INR m)
Est. Var. (% /
2QFY21 bp)
11,137
1%
-12.2%
10,892
2%
245
-6%
2.2% -16bQ
82
163
-10%
1.5% -17bQ
25
-25%
60
92%
198
23%
0
-3
0
195
7%
0
0% 1123bQ
195
-5%
-3% -451bQ
1.8% -10bQ
195
11%
-3% 1037bQ
1.8%
16bQ
Valuation and view – key beneficiary of formalization
Consolidated Quarterly Performance
1Q
12,512
23%
12,281
232
1.9%
61
171
1.4%
28
35
178
0
-5
173
-15
-9%
188
-14%
1.5%
188
-14%
1.5%
FY20
FY21E
FY20 FY21E
2Q
3Q
4Q
1Q
2Q
3QE
4QE
12,678 13,514 13,303 11,364 11,291 12,984 14,542 52,007 50,182
16.2%
15%
14%
-9% -10.9%
-4%
9%
17%
-4%
12,433 13,239 13,104 11,119 11,061 12,699 14,193 51,056 49,071
245
275
199
246
230
286
349
951 1,111
1.9%
2.0%
1.5%
2.2%
2.0%
2.2%
2.4%
1.8%
2.2%
66
76
83
82
83
82
82
286
330
179
199
116
164
146
204
267
665
781
1.4%
1.5%
0.9%
1.4%
1.3%
1.6%
1.8%
1.3%
1.6%
29
29
37
26
19
25
25
123
94
54
73
147
41
115
60
60
308
276
204
243
227
179
243
239
302
851
962
0
0
0
0
30
0
0
0
30
-9
-4
-3
-3
-3
-3
-5
-21
-14
195
238
224
176
210
236
297
830
918
-6
-16
518
5
24
0
0
480
29
-3%
-7% 232%
3%
11%
0%
0%
58%
3%
202
255
-294
171
186
236
297
350
890
-19%
1% -213%
-9%
-8%
-7% -201%
-64% 154%
1.6%
1.9% -2.2%
1.5%
1.6%
1.8%
2.0%
0.7%
1.8%
202
255
192
171
216
236
297
836
920
-19%
1%
-26%
-9%
7%
-7%
55%
-15%
10%
1.6%
1.9%
1.4%
1.5%
1.9%
1.8%
2.0%
1.6%
1.8%
Revenue
YoY Change (%)
Total Expenditure
Reported EBITDA
Margins (%)
Depreciation
Reported EBIT
Margins (%)
Interest
Other Income
PBT before EO expense
Extra-Ord expense
Share of profit from associate
Reported PBT
Tax
Rate (%)
Reported PAT
YoY Change (%)
Margins (%)
Adjusted PAT
YoY Change (%)
Margins (%)
10 November 2020
2
 Motilal Oswal Financial Services
TeamLease
Key Perfor. Indicators
Y/E March
Headcount
General staffing associates
Apprentices
Specialised staffing
Revenue
General staffing
Specialised staffing
Other HR Services
Operating Margins
General staffing
Specialised staffing
Other HR Services
1Q
1,60,614
57,292
6,858
11,306
982
224
2.0
6.4
(28.3)
FY20
2Q
1,65,029
51,341
6,549
11,392
1,005
282
1.8
6.1
(1.3)
3Q
4Q
1,61,365
50,620
8,225
11,954
1,065
284
2.1
6.7
(13.8)
1Q
1,45,259
35,888
7,461
10,234
1,009
122
1.9
8.7
(36.7)
FY21
2Q
1,45,778
42,927
7,228
10,197
986
108
2.0
9.0
(48.2)
3Q
4Q
FY20
FY21
1,67,216
52,388
8,244
12,161
1,046
306
1.6
7.4
1.9
1,61,365
50,620
8,225
46,813
4,098
1,096
1.9
6.6
(9.2)
Key highlights from management commentary
Management expects positive growth momentum in 3Q and 4Q, although this
would be nowhere near pre-COVID levels. However, festival demand would not
be as large as it was in earlier periods.
The Manufacturing and Auto industries are showing early signs of recovery,
reflected in the company’s NETAP headcount.
The management’s intended restructuring has played out in terms of headcount
and cost rationalization. Going forward, the focus would be on customer
growth.
The company reported de-growth of around 43% of its overall customers in 2Q,
and 30% of the total are now showing some signs of growth. Within Staffing, the
company has won a large-ticket customer and won back a large chunk of the
business from Samsung, increasing its market share.
Labor law reforms would not have an immediate impact on business revenues,
but over the longer term, the company would be a beneficiary of the same.
For the current year, the focus is on taking margins to FY19 levels. In the long
run, management targets a 3–4% margin band.
The company expects a tax refund of INR300m in 3QFY21.
TeamLease reported revenue / EBITDA / adj. PAT growth of -11%/-6%/7% YoY
(v/s our estimate of -12%/0%/-3%). For 1H, the company reported revenue /
EBITDA / adj. PAT growth of -10%/0%/-1%.
Overall revenue was slightly ahead of our estimates. General Staffing revenues
were flat QoQ (better than expectations) and in line with headcount movement.
Revenue from Specialized Staffing was resilient (~2% QoQ decline), while
revenue from other HR services declined (~12% QoQ), as the company
undergoes a planned exit from some of these service lines.
Overall EBITDA margins declined ~20bp QoQ, but improved YoY.
Within segments, General Staffing and Specialized Staffing continue to improve
on profitability, driven by business performance and cost optimization.
Realizations in General Staffing remained stable despite markup pressure in the
industry.
While EBITDA was 6% below our estimates, higher other income drove PAT
ahead by 11% (v/s our expectations).
Marginal beat on revenues
10 November 2020
3
 Motilal Oswal Financial Services
TeamLease
Exhibit 1: Headcount movement flat on a sequential basis
General staffing (ex-apprentices) headcount growth (YoY, %)
14
17
16
17
14
10
5
-10
-12
Source: Company, MOFSL
Exhibit 2: Associate-to-core ratio improves further
Assosiate to Core employee Ratio
283
264
300
260
241
270
277
261
266
Source: Company, MOFSL
Valuation and view – key beneficiary of formalization
Given some level of uncertainty in the economy (due to the back and forth on
lockdowns), some of the otherwise permanent roles are likely to be fulfilled
through flexi-staffing as employers attempt to keep their costs variable. We
noticed similar trends in the immediate aftermath of GFC and the
demonetization, when staffing companies benefitted due to positive hiring
trends in some verticals. Such a trend should likely play out in the near term,
benefitting staffing firms such as TeamLease.
Over the medium term, as both the central and state governments look to
liberalize and formalize the labor markets, TeamLease should be among the
biggest direct beneficiaries.
We keep our estimates largely stable. Our TP of INR2,700 implies 32x FY22E EPS.
Reiterate
Buy.
10 November 2020
4
 Motilal Oswal Financial Services
TeamLease
Financials and valuations
Income Statement
Y/E March
Total Income from Operations
Change (%)
Employee Benefit Expense
Other Expense
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT
Total Tax
Tax Rate (%)
Minority Interest
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Total Loans
Capital Employed
Net Fixed Assets
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Other Current Liabilities
Provisions
Net Current Assets
Deferred Tax assets
Appl. of Funds
FY15
20,071
31.2
19,445
385
19,830
98.8
240
1.2
27
213
1
114
326
0
326
18
5.5
0
308
308
73.2
1.5
FY15
5
1,480
1,485
228
1,713
95
0
3,354
2
805
1,147
1,400
1,792
1,702
90
1,562
56
1,713
FY16
25,049
24.8
24,391
400
24,791
99.0
258
1.0
30
228
4
154
378
0
378
130
34.4
0
248
248
-19.4
1.0
FY16
171
2,945
3,116
526
3,642
111
0
5,629
2
1,205
2,590
1,832
2,144
2,051
93
3,485
45
3,642
FY17
30,419
21.4
29,377
599
29,976
98.5
443
1.5
43
400
11
224
613
0
613
-50
-8.2
0
663
663
167.5
2.2
FY17
171
3,640
3,811
435
4,247
1,029
103
5,641
2
1,872
1,593
2,174
2,677
2,525
152
2,964
149
4,247
FY18
36,241
19.1
34,712
841
35,553
98.1
688
1.9
92
596
25
154
725
0
725
-9
-1.3
0
735
735
10.7
2.0
FY18
171
4,246
4,417
559
4,976
1,378
593
6,491
0
2,235
1,424
2,832
3,885
3,661
224
2,606
399
4,976
FY19
44,476
22.7
41,971
1,560
43,531
97.9
945
2.1
105
839
52
177
964
0
964
-16
-1.7
0
980
980
33.4
2.2
FY19
171
5,220
5,391
767
6,158
1,578
414
8,251
0
2,643
1,230
4,377
4,737
4,347
391
3,513
653
6,158
FY20
52,007
16.9
49,365
1,691
51,056
98.2
951
1.8
286
665
123
288
830
0
830
480
57.8
0
350
836
-14.7
1.6
FY20
171
5,550
5,721
1,854
7,575
2,360
253
9,795
0
2,959
970
5,866
4,977
4,490
487
4,818
144
7,575
FY21E
50,182
-3.5
48,111
960
49,071
97.8
1,111
2.2
330
781
94
262
948
-30
918
29
3.1
0
890
920
10.0
1.8
FY21E
171
6,470
6,641
1,280
7,921
1,361
253
10,582
3
2,887
2,308
5,385
4,420
4,186
234
6,162
144
7,921
(INR m)
FY22E
65,205
29.9
62,385
1,255
63,640
97.6
1,565
2.4
328
1,237
80
260
1,417
0
1,417
0
0.0
0
1,417
1,417
54.0
2.2
(INR m)
FY22E
171
7,887
8,058
1,342
9,400
1,361
253
13,344
3
3,751
3,724
5,865
5,702
5,439
263
7,641
144
9,400
10 November 2020
5
 Motilal Oswal Financial Services
TeamLease
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
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Asset Turnover (x)
Debtor (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/Equity
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
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
FY15
18.0
19.6
86.9
0.0
0.0
130.5
119.9
27.0
2.0
163.2
17.8
23.0
20.0
36.5
11.7
15
1.9
153.5
-0.6
FY15
316
27
-65
17
48
343
0
343
-38
305
-186
-20
-244
0
-8
-1
-10
89
129
218
FY16
14.5
16.3
182.2
0.0
0.0
162.0
144.5
12.9
1.5
147.8
-8.9
10.8
9.4
18.5
6.9
18
2.6
58.1
-0.7
FY16
378
30
-99
-265
-150
-105
0
-105
-47
-152
-1,192
52
-1,187
1,380
194
-4
1,569
277
218
496
FY17
38.8
41.3
222.9
0.0
0.0
60.6
56.9
10.5
1.3
88.1
18.3
19.2
17.1
24.0
7.2
22
2.1
36.5
-0.3
FY17
613
43
-114
-191
-19
332
0
332
-18
314
-202
51
-169
-2
-399
-11
-412
-249
496
247
FY18
43.0
48.3
258.3
0.0
0.0
54.7
48.6
9.1
1.1
57.2
45.0
17.9
16.5
21.9
7.3
23
1.7
24.2
-0.3
FY18
728
92
-28
-655
656
792
0
792
-23
769
-202
-10
-235
-49
-109
-25
-183
374
247
621
FY19
57.3
63.5
315.3
0.0
0.0
41.0
37.0
7.5
0.9
42.0
-13.8
20.0
18.6
22.8
7.2
22
1.7
16.1
-0.2
FY19
968
105
-49
-862
-285
-124
0
-124
-113
-236
105
26
18
0
-12
-49
-61
-167
671
504
FY20
48.9
65.6
334.6
0.0
0.0
48.1
35.8
7.0
0.8
43.2
-3.5
15.0
5.8
5.2
6.9
21
2.0
5.4
0.1
FY20
851
286
122
-855
-307
97
0
97
-157
-61
-431
115
-473
0
117
-118
-1
-377
504
127
FY21E
53.8
73.1
388.4
0.0
0.0
43.7
32.1
6.1
0.8
35.3
42.8
14.9
13.0
12.9
6.3
21
2.4
8.3
-0.2
FY21E
948
330
181
-29
-581
851
0
851
-118
732
0
0
-118
0
0
0
0
732
127
859
FY22E
82.9
102.1
471.3
0.0
0.0
28.4
23.0
5.0
0.6
24.2
106.6
19.3
17.3
22.9
6.9
21
2.3
15.5
-0.3
(INR m)
FY22E
1,417
328
200
0
-1
1,944
0
1,944
-122
1,822
0
0
-122
0
0
0
0
1,822
859
2,682
10 November 2020
6
 Motilal Oswal Financial Services
TeamLease
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
10 November 2020
7
 Motilal Oswal Financial Services
TeamLease
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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
8