Motilal Oswal Financial Services

SBI Life Insurance

BSE SENSEX

44,180

S&P CNX

12,938

Chalet Hotels

18 November 2020

Company Update | Sector: Financials

CMP: INR858

TP: INR1,050 (+22%)

Buy

Protection trends remain robust; cost leadership continues

Growth steadily revives after seeing trough levels; valuations reasonable

Bloomberg

Equity Shares (m)

M.Cap.(INRb)/(USDb)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

12M Avg Val (INR M)

Free float (%)

SBILIFE IN

1,000

857.7 / 11.6

1020 / 520

-3/-24/-24

1693

39.3



Financial snapshot (INRb)

Y/E MARCH

FY20 FY21E FY22E

Net Premiums

403

469

553

Surplus / Deficit

19.0

30.3

36.0

Sh.PAT

14.2

16.6

18.3

NBP gr- unwtd (%)

20.3

7.0

18.0

NBP gr- APE (%)

10.2

6.2

14.3

Premium gr (%)

23.2

16.0

18.2

VNB margin (%)

18.7

20.5

21.1

RoE (%)

17.4

17.6

16.9

RoEV (%)

17.4

17.2

Total AUMs (INRt)

1.6

1.9

2.3

VNB

20.1

22.9

26.9

EV per share

263

308

361

Valuations

P/EV (x)

3.2

2.8

2.4

P/EPS (x)

59.8

51.3

46.4



SBILIFE posted a rebound in business premium with individual APE growing at 14%

YoY in Oct’20 after reporting a consecutive decline for the past many months.

During 2QFY21, the ULIP business declined 13% YoY but grew 166% QoQ from the

troughs seen earlier. Protection growth remains robust both in individual and

group segments and is expected it to remain strong. The revival in credit growth,

with parent SBIN indicating that the retail disbursement run-rate is now higher

than pre-COVID levels, further augurs well for SBILIFE.

The company reported an improvement in persistency rate across cohorts, with

the highest improvement seen in the 61st month (up 340bp YoY to ~61% in

1HFY21). Persistency in the Protection business remains strong. The ULIP business

is showing signs of a recovery on improved capital market performance.

SBILIFE is also looking to optimize its product mix in the Protection/Annuity

business. This should help VNB margin to further expand to ~22% by FY23E, which

should drive 19% CAGR in VNB over FY20-23E. We expect operating RoEV to

remain steady ~18%, while EV clocks 17% CAGR over FY20-23E. Maintain Buy with

TP of INR1,050/share (2.7x Sep’22E EV).

APE growth showing improving trends; Renewal growth remains robust

Total APE declined ~3% YoY (grew 113% QoQ) during 2QFY21 as business trends

continue to march towards normalcy. ULIP business declined 13% YoY, but

improved 166% QoQ from the troughs witnessed during 1QFY21, while

Protection trends remains strong. During Oct’20, SBILIFE posted 14% YoY growth

in individual APE, while overall APE grew 13% YoY. The company continues to

post strong Renewal growth at 29% YoY (way ahead of its peers). SBILIFE’s

distinct competitive advantage owing to its parent SBIN provides it a long-term

Shareholding pattern (%)

structural growth story. With retail disbursements moving towards normalcy, we

As On

Sep-20 Jun-20 Sep-19

expect business volumes to revive further in coming months.

Promoter

60.7

62.8

DII

7.1

7.0

FII

25.8

26.2

Others

6.5

6.1

FII Includes depository receipts

Stock Performance (1-year)

SBI Life Insuran

1,175

950

725

500

Sensex - Rebased

6.9

23.7

6.6

NBP (un-weighted) growth trends for SBILIFE better v/s peers

Growth in new business premium (un-weighted) outperformed the industry and

peers, which SBILIFE grew ~15% YoY over FY21 YTD (v/s 3.1% for the industry

and 12.4% for HDFCLIFE and 10.5% decline for IPRU).Also, Sum assured growth

trends remains robust for both IPRU and SBILIFE, which suggests improving

trends in the Protection segment.

Protection business trends remain strong; individual protection mix increasing

Protection growth remained strong (70% YoY) in 2QFY21, led by both individual

and group protection. The share of Protection business improved to 12.5% (v/s

7.1% in 2QFY20 and 8.9% in FY20). The management said growth in individual

protection was volume driven, while the ticket size broadly remains the same.

The share of individual protection in total APE improved to ~7% (v/s 4.7% in

FY20). Group protection trends remain steady despite flat trends in credit life.

The pick -up in home loan and other retail disbursements for parent SBIN will

allow higher cross-sell of credit life business and support VNB margin.

Research Analyst: Nitin Aggarwal

(Nitin.Aggarwal@MotilalOswal.com) |

Himanshu Taluja

(Himanshu.Taluja@motilaloswal.com)

Alpesh Mehta

(Alpesh.Mehta@MotilalOswal.com);

Yash Agarwal

(Yash.Agarwal@motilaloswal.com)

Investors are advised to refer through important disclosures made at the last page of the Research Report.

Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

SBI Life Insurance

Cost leadership strengthens further; TER improves to 8.6% in 1HFY21

SBILIFE has one of the lowest cost structures among its peers. It has a lower banca

commission rates (v/s peers), which allows it to maintain strong control on cost

ratios. The company has steadily reduced its total expense as a percentage of gross

written premium (GWP) to 8.6% in 1HFY21 from 9.9% in FY20 and 15.9% in FY13.

The management indicated it will continue to invest in growing its agency channel,

cost-intensive Protection business and digital initiatives. We expect SBILIFE to

maintain its cost leadership, with GWP at 9.8% over FY23E.

Persistency rate inches towards pre-COVID levels; Renewal growth leads peers

The company reported an improvement in persistency rate across cohorts (barring

the 49

month), with the highest improvement seen in the 61st month (up 340bp

YoY to 60.9% in 1HFY21), which aided growth in the Renewal business (up 29% YoY

vs 7% for IPRU and 22% for HDFCLIFE). Among segments, persistency in the

Protection segment remains strong, while the same for ULIP is reviving gradually on

a buoyant capital market performance. However, persistency based on regular

premium declined for the 13

month by 80bp to 83.2%, but improved for the 61

month by 140bp YoY to 50%.

VNB margin remains resilient, estimate margin to expand to ~22%

VNB margin improved to 20.2%, led by an increase in Retail Protection during

2QFY21, though it lagged re-pricing of Protection products. Change in operating and

economic assumptions dragged margin. We expect VNB margin to expand in the

medium term as SBILIFE further optimizes its product mix with a focus on the

Protection/Annuity business, re-bound in premium growth from FY22E onwards and

re-pricing of Protection products. We expect VNB margin expansion to touch ~22%

and deliver 19% VNB CAGR over FY20-23E.

Valuation and view

SBILIFE continues to report steady growth in the Protection business, while the ULIP

business is expected to see a gradual recovery. We expect growth to revive

meaningfully from FY22E. The company has reported a sharp improvement in the

persistency rate. The improvement in cost ratios has also been commendable. We

estimate the VNB margin to touch ~22% by FY23E and deliver 19% VNB CAGR over

FY20-23E. We expect operating RoEV to sustain ~18% by FY23E. Maintain Buy with a

TP of INR1,050/share (2.7x Sep’22E EV).

Exhibit 1: One-year forward P/EV chart for various insurers

7.0

5.0

3.0

1.0

IPRU IN

HDFCLIFE IN

SBILIFE IN

4.8

2.5

2.1

Source: MOFSL, Company

18 November 2020

SBI Life Insurance

STORY IN CHARTS

Exhibit 2: Individual APE market share trends for SBILIFE (%)

Individual wrp market share

9.7

11.2

12.3

12.9

13.3

Exhibit 3: Protection mix across insurers (%)

FY18

FY19

FY20

1HFY21

11.7

17.2

11.0

17.0

12.1 1.0 1.6

19.5

5.4

6.8

15.1

8.9

12.6

8.0

10.0

20.0

13.0

FY16

FY17

FY18

FY19

FY20

1HFY21

HDFCLIFE

IPRULIFE

SBILIFE

MAXLIFE

Source: Company, MOFSL

Exhibit 4: Persistency improves across cohorts (total

premium,%)

13th Mth

25th Mth

61st Mth

Exhibit 5: Share of protection mix increasing gradually

PAR

ULIP

Non PAR Savings

Grp Savings

FY18

FY19

FY20

1QFY21

Protection

1HFY21

FY18

FY19

FY20

1QFY21

1HFY21

FY17

Source: Company, MOFSL

Exhibit 6: SBILIFE has lowest Banca commission

rate vs peers (%)

FY18

FY19

FY20

Exhibit 7: SBILIFE has a distinct cost leadership over its peers

Total Expense ratio (%)

SBI life

HDFC life

IPRU life

Max life

Source: MOFSL, Company

18 November 2020

SBI Life Insurance

Exhibit 8: Agent productivity highest for SBILIFE v/s

HDFCLIFE and IPRU

Individual Agent premium/ No. of Agents (INRlacs)

FY17

FY20

22%

Exhibit 9: Total AUM grew ~19% CAGR over FY15-1HFY21

Total AUM

22%

19%

12%

YoY growth (%)

21%

14%

20%

2.3

2.5

1.5

2.5

1.2

1.0

1.2

0.9

713

798

FY16

977

FY17

1,163

FY18

1,410

FY19

1,604

FY20

1,864

1HFY21

HDFCLIFE

IPRULIFE

SBILIFE

MAXLIFE

FY15

Source: MOFSL, Company

Exhibit 10: Renewal premium growth remains robust

Renewal Premium (INRb)

41%

35%

28%

32% 33%

YoY growth (%)

Exhibit 11: Value SBILIFE at INR1,050 per share

Appraisal value method (INR b)

Embedded value

New business profit

Appraisal value

Appraisal value/embedded value

Value per share

Implied multiples -

- VNB multiple

- P/E

Upside

Sep’22

393.4

30.3

1,050

2.7x

1,050

21.7

52.1

24%

Source: Company, MOFSL

29%

15%

30% 28%

26.8 41.9 52.7 70.5 35.4 55.8 67.9 81.3 45.8 71.5

Source: Company, MOFSL

Exhibit 12: Estimate VNB margin to improve to ~22%

Exhibit 13: Operating RoEV to recover to 18.3% by FY23E

ROEV (%)

Op. ROEV (%)

18.4%

19.8%

20.7%

20.5%

21.1%

21.8%

15.3%

18.0%

17.5%

17.3%

17.4%

20.5%

17.2%

17.5%

17.2%

17.6%

17.9%

18.3%

Source: Company, MOFSL

18 November 2020

SBI Life Insurance

Valuations and veiw



With an Individual market share of ~11.7% as of 1HFY21-end, SBILIFE is the

market leader among private life insurers. Favorable demographics, increasing

customer awareness about financial products, and strong distribution network

of its parent SBIN should aid in a strong performance for the company.

We expect SBILIFE to continue to deliver good persistency and Renewal growth.

At the same time, it should maintain its cost leadership.

The share of ULIP has remained stable for SBILIFE in the last few years. The

management, however, has started focusing more on the Protection/Annuity

segment. This has led to the share of Non-PAR Savings/Protection rising in the

APE mix. The product mix change would aid in VNB margin expansion.

Maintain Buy with a TP of INR1,050:

SBILIFE continues to report steady growth

in the Protection business, while the ULIP business is expected to see a gradual

recovery. We expect growth to revive meaningfully from FY22E. The company

has reported a sharp improvement in the persistency rate. The improvement in

cost ratios has also been commendable. We estimate the VNB margin to touch

~22% by FY23E and deliver 19% VNB CAGR over FY20-23E. We expect operating

RoEV to sustain ~18% by FY23E. Maintain Buy with a TP of INR1,050/share (2.7x

Sep’22E EV).

18 November 2020

SBI Life Insurance

Financials and valuations

Technical account (INR b)

Gross premiums

Net premiums

Income from investments

Other income

Total income (A)

Commission

Operating expense

Total commission and opex

Benefits paid (net)

Change in reserves

Total expenses (B)

(A) - (B)

Provision for tax

Surplus/deficit (calculated)

Shareholder's a/c (INR b)

Transfer from technical a/c

Income from investments

Total income

Total expenses

PBT

Provision for tax

PAT

Growth

Premium (INR b) & growth

New business prem. - un-weighted

New business prem. - WRP

Renewal premium

Total premium - un-weighted

New bus. growth - un-weighted

New business growth - WRP

Renewal premium growth

Total prem. growth - un-weighted

Premium mix

New business - un-weighted

- Individual mix

- Group mix

New business mix - WRP

- Participating

- Non-participating

- ULIPs

Total premium mix - un-weighted

- Participating

- Non-participating

- ULIPs

Individual premium sourcing mix

Individual agents

Corporate agents - banks

Direct business

Others

24.8%

19.5%

55.7%

FY18

31.2%

67.4%

0.8%

0.5%

21.8%

20.8%

57.4%

FY19

29.6%

68.9%

0.7%

18.3%

23.8%

57.9%

FY20

28.8%

67.5%

2.0%

1.8%

21.9%

24.3%

53.8%

FY21E

27.0%

68.5%

3.0%

1.5%

22.4%

25.3%

52.2%

FY22E

26.7%

67.0%

4.5%

1.8%

22.4%

26.0%

51.6%

FY23E

25.2%

68.0%

5.0%

1.8%

24.0%

9.0%

67.0%

18.4%

10.3%

71.3%

10.9%

18.6%

70.5%

12.4%

15.4%

72.2%

13.3%

14.1%

72.6%

13.8%

15.0%

71.2%

76.7%

23.3%

69.9%

30.1%

67.8%

32.2%

66.0%

34.0%

68.0%

32.0%

67.0%

33.0%

FY18

253.5

251.7

84.6

1.4

337.7

11.2

17.2

28.4

117.1

176.0

325.1

12.6

2.4

10.2

FY18

8.3

4.6

12.9

1.1

11.8

0.3

11.5

20.5%

FY18

110

144

254

8.1%

27.6%

32.3%

20.6%

FY18

FY19

329.9

328.9

112.1

1.6

442.6

13.5

21.2

34.7

152.9

235.9

429.0

13.6

2.7

10.9

FY19

10.0

5.2

15.2

1.4

13.7

0.5

13.3

15.3%

FY19

138

192

330

25.8%

13.2%

33.4%

30.1%

FY19

FY20

406.3

403.2

30.0

5.2

438.4

16.2

24.1

40.3

162.5

206.0

415.7

22.8

3.8

19.0

FY20

14.6

4.8

19.5

5.3

14.1

(0.1)

14.2

7.2%

FY20

166

105

240

406

20.3%

10.2%

25.2%

23.2%

FY20

FY21E

471.5

468.5

116.9

6.8

592.2

19.0

26.5

45.4

198.4

300.5

550.8

41.4

11.1

30.3

FY21E

13.6

4.4

18.0

0.7

17.3

0.7

16.6

16.6%

FY21E

178

112

294

472

7.0%

6.2%

22.3%

16.0%

FY21E

FY22E

557.1

552.7

146.7

8.5

707.9

22.6

34.8

57.4

230.8

362.6

658.3

49.6

13.6

36.0

FY22E

15.2

5.0

20.1

1.0

19.1

0.8

18.3

10.5%

FY22E

209

127

348

557

18.0%

14.3%

18.2%

FY22E

FY23E

662.4

657.0

166.1

10.6

833.7

24.7

40.4

65.1

273.7

427.0

774.5

59.2

16.2

43.0

FY23E

18.3

6.2

24.4

1.5

22.9

0.9

22.0

20.2%

FY23E

256

155

407

662

22.0%

21.5%

17.0%

18.9%

FY23E

18 November 2020

SBI Life Insurance

Financials and valuations

Balance Sheet (INR b)

Sources of fund

Shareholders' funds

Policy liabilities

Prov. for linked liabilities

Funds for future app.

Current liabilities & prov.

Total

Application of funds

Shareholders’ inv

Policyholders’ inv

Assets to cover linked liab.

Current assets

Total

Operating ratios

Investment yield

Commissions/GWP

- First-year premiums

- Renewal premiums

- Single premiums

Operating expenses/GWP

Total expense ratio

Solvency ratio

Persistency ratios

13th Month

25th Month

37th Month

49th Month

61st Month

Profitability ratios

VNB margin

RoE

RoIC

Operating RoEV

RoEV

Valuation ratios

Total AUMs

- of which equity AUMs

Dividend

Dividend payout ratio

EPS (INR)

VNB

- VNB growth

EV per share

P/AUM

P/EV (x)

P/EPS (x)

50.1

544.9

549.4

65.2

1,217.1

FY18

7.8%

4.4%

8.7%

2.7%

0.8%

6.8%

11.2%

206%

FY18

83.0%

75.2%

70.0%

63.9%

58.4%

FY18

16.2%

19.0%

19.4%

18.0%

15.3%

FY18

1,163

23%

20%

21%

11.5

13.8

36.1%

190.6

73%

4.5

74.0

57.2

644.7

691.3

66.4

1,467.3

FY19

8.4%

4.1%

8.3%

2.7%

1.5%

6.4%

10.5%

213%

FY19

85.1%

76.7%

71.4%

66.4%

57.2%

FY19

17.7%

18.8%

19.2%

17.3%

17.5%

FY19

1,410

23%

20%

18%

13.3

17.2

24.1%

224.0

60%

3.8

64.1

68.3

734.2

785.7

58.2

1,655.8

FY20

1.8%

4.0%

8.4%

2.7%

1.4%

5.9%

9.9%

195%

FY20

86.1%

78.5%

71.6%

67.3%

59.9%

FY20

18.7%

17.4%

20.5%

17.4%

FY20

1,604

21%

14.2

20.1

17.0%

262.9

53%

3.2

59.8

79.9

879.6

968.9

73.6

2,012.5

FY21E

6.0%

4.0%

7.9%

2.7%

2.1%

5.6%

9.6%

205%

FY21E

85.6%

77.6%

71.5%

66.9%

59.6%

FY21E

20.5%

17.6%

17.3%

17.5%

17.2%

FY21E

1,928

24%

25%

18%

16.6

22.9

14%

308.1

44%

2.8

51.3

94.3

1,030.2

1,153.0

88.6

2,377.7

FY22E

6.4%

4.1%

8.0%

2.5%

2.0%

6.2%

10.3%

192%

FY22E

86.4%

79.0%

71.6%

67.5%

60.0%

FY22E

21.1%

16.9%

16.7%

17.6%

17.2%

FY22E

2,277

25%

30%

20%

18.3

26.9

17%

361.1

37%

2.4

46.4

111.2

1,211.9

1,361.7

106.7

2,804.5

FY23E

6.0%

3.7%

7.5%

2.5%

1.8%

6.1%

9.8%

181%

FY23E

86.6%

79.3%

71.8%

68.3%

60.2%

FY23E

21.8%

17.6%

17.5%

18.3%

17.9%

FY23E

2,685

26%

35%

19%

22.0

33.7

25%

425.7

32%

2.0

38.6

65.3

555.6

495.6

35.5

1,217.1

75.8

649.5

605.9

2.8

37.4

1,467.3

87.4

761.2

763.0

7.1

30.2

1,655.8

101.1

861.5

1,019.5

8.2

29.0

2,012.5

116.0

1,008.9

1,234.6

9.7

30.1

2,377.7

134.0

1,186.7

1,483.6

11.4

31.3

2,804.5

FY18

FY19

FY20

FY21E

FY22E

FY23E

18 November 2020

SBI Life Insurance

NOTES

18 November 2020

SBI Life Insurance

Explanation of Investment Rating

Investment Rating

BUY

SELL

NEUTRAL

UNDER REVIEW

NOT RATED

Expected return (over 12-month)

>=15%

< - 10%

< - 10 % to 15%

Rating may undergo a change

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 - MOFSL) 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

associate

entities

Motilal

Oswal

Financial

Services

Limited

are

available

the

website

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 have financial interest in the subject company, as they 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

********************************************************************************************************************************

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

18 November 2020

SBI Life Insurance

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.

* MOFSL 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.

18 November 2020