19 January 2021
IndiaMART
3QFY21 Results | 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
2021E 2022E
Sales
6.7
8.4
EBITDA
3.3
3.7
PAT
3.1
3.5
EPS (INR)
105.1
120.4
EPS Gr. (%)
104.9
14.5
BV/Sh. (INR)
300.6
468.2
Ratios
RoE (%)
74.1
49.8
RoCE (%)
75.0
49.8
Payout (%)
11.5
12.5
Valuations
P/E (x)
70.4
61.5
P/BV (x)
24.6
15.8
INMART IN
29
215.7 / 3
8375 / 1641
16/227/228
563
CMP: INR 7,406
TP: INR 9,000 (+22%)
Buy
Higher resilience in margin offers a positive outlook
IndiaMART delivered strong operational performance during 3QFY21, led by
robust increase in paid suppliers (at 7k v/s their target range of ~5k).
Collections were up 9% sequentially but flat on a YoY basis.
Margin showed great resilience, with the company reporting the highest
ever EBIT margin of 48.4% (v/s our estimate of 39.8%) on lower variable pay
and stable employee count.
Leading indicators such as traffic and business inquiries are up 35% and 38%
YoY, offering confidence on the sustenance of the current momentum.
While we concur that margin at current levels are not sustainable, the
company will see a structural shift in operations from pre-COVID levels. Half
of the savings, led by cost optimization, would continue to flow through on:
1] permanent optimization in G&A (reduction in offices to 40 from 80), 2]
sales through channel partners are making cost more variable (would lead to
reduction in total employees), 3] movement of BPO to cloud telephony
system (would lead to 10% savings per seat), and 4] reduction in travel
expenses by shifting some of the meetings to video conferencing.
For
9MFY21, revenue/EBIT/PAT grew by 4.6%/128%/178%.
The company has taken Board’s approval to raise INR11b. The same would
be majorly used to pursue inorganic opportunities around: 1] SaaS products,
2] fintech, and 3] vertical commerce. We view the business model
diversification as a positive step to upscale into the SME value chain.
We increase our FY22E/FY23E EPS estimate by 17%/16% as we anticipate
greater resilience on the margin front over the longer term.
We value IndiaMART on a DCF basis at INR9,000 per share (+22% upside)
assuming 11% WACC and 5% terminal growth rate, implying 62x FY23E EPS.
Reiterate Buy.
Revenue stood at INR1.7b (3% beat on our estimates), up 5.3% YoY and 6.4%
QoQ.
Total collections have now recovered back to pre COVID-19 levels at INR
1.8b, implying a sequential growth of 10%.
EBIT margin was the highest ever at 48.4% (v/s our estimate of 40%), +26pp
YoY and +100bp QoQ. This was led by continued optimization across all cost
items.
All traffic on the platform was organic in nature. The company has not
incurred any advertisement expenses.
PAT rose 102% YoY to INR802m, implying a PAT margin of 46%.
The Board has approved raising of funds, not exceeding INR11b. An
extraordinary general meeting is scheduled on 10 Feb’21 to seek approval of
its members for the proposed fund raising.
Traffic grew 35% YoY to 253m in 3QFY21 v/s 188m in 3QFY20.
2023E
10.3
4.5
4.2
145.3
20.7
675.6
40.4
40.4
10.3
50.9
11.0
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Dec-20 Sep-20 Dec-19
52.0
52.0
52.3
5.0
5.7
2.6
24.8
22.3
11.8
18.2
20.0
33.3
FII Includes depository receipts
Beat on all fronts! Board approves INR11b in fund raising
Anmol Garg – Research analyst
(Anmol.Garg@MotilalOswal.com)
Research analyst: Mukul Garg
(Mukul.Garg@MotilalOswal.com) /
Heenal Gada
(Heenal.Gada@MotilalOswal.com)
19 January 2021
1
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.
 Motilal Oswal Financial Services
IndiaMART
Total suppliers on the platform stood at 6.4m, an increase of 9% YoY.
Total paid suppliers stood at 148k (v/s our estimate of 147k), an increase of 4%
YoY and 5% QoQ. ARPU increased by 3% YoY to INR 46.7k.
Deferred revenue stood at INR 6,330m, a marginal decline of 2% YoY, but an
increase of 1% QoQ.
Total cash and Investments stood at INR 11.4B, an increase of 33% YoY.
OCF stood at INR 770m, up 9% YoY, implying an OCF-to-PAT ratio of 96%.
During 3QFY21, IndiaMART added 7k suppliers. Of this, 1.5k were suppliers that
returned due to the previous churn and the rest were new additions.
Business for 90% categories are back to pre-COVID levels. However, 10% are yet
to recover.
EBIT margin in 9MFY21 more than doubled (47% in 9MFY21 v/s 22% in 9MFY20),
led by: 1) reduction in employee expenses on non-payment of variable pay, 2)
re-negotiation on pricing and reduction in outsourcing sales contracts, and 3)
optimization in other expenses on closure of offices.
The management intends to make long-term investments, along with one or
two acquisitions, and some minority investments. The latter could be a
customer acquisition, payment facilitation (credit), API banking, or business
insurance, where it can leverage IndiaMART.
It has changed the price of its base package to INR3k plus taxes from INR3k per
month plus INR5k setup fees. This would help in reducing one-time higher
upfront payment.
It has launched quarterly and six monthly premium plans to reduce higher
payments up front and also introduced the concept of daily buying of leads.
Apart from the strong recovery in paid suppliers, collections, and revenue
growth, the company has shown higher resilience on the margin front. While we
concur that margin at current levels are not sustainable, the company would see
positive benefits from cost optimization and operating leverage. We increase
our FY22E/FY23E EPS estimate by 17%/16% to factor in a robust operating
performance.
We remain confident of strong fundamental growth in operations, led by: a)
high growth in digitization among SMEs (~25%), b) the need for out-of-the-circle
buyers, c) a strong network effect, d) over 70% market share in the underlying
industry, e) the ability to increase ARPU on low price sensitivity, and f) high
operating leverage.
We arrived at our DCF-based target price of INR9,000 per share assuming 11%
WACC and 5% terminal growth rate. Our TP implies an upside of 22%.
Reiterate
Buy.
Highlights from the management commentary
Valuation and view
19 January 2021
2
 Motilal Oswal Financial Services
IndiaMART
Consolidated quarterly earnings model
Y/E March
FY20
1Q
2Q
3Q
Gross Sales
1,470 1,566 1,649
YoY Change (%)
30.1 28.4
23.1
Total Expenditure
1,110 1,203 1,213
EBITDA
360
363
436
Margin (%)
24.5 23.2
26.4
Depreciation
40
50
58
Interest
0
7
5
Other Income
140
205
166
PBT before EO expense
460
511
539
PBT
460
Tax
140
Rate (%)
30.4
Minority Interest and Profit/Loss
0
of Asso. Cos.
Reported PAT
320
Adjusted PAT
320
YoY Change (%)
-156.1
Margin (%)
21.8
E: MOFSL estimates
Key performance indicators
Y/E March
1Q
Revenue indicators
Paid suppliers ('000)
ARPU ('000)
Cost indicators
Employees
Outsourcing sales employees
Other expenses (INR m)
133.0
43.6
3160
1138
350
511
422
82.6
0
89
89
-55.5
5.7
761
141
18.5
0
620
398
37.2
24.1
(INR m)
Var. (%)
3QFY21E
1,687
2.3
969
717
42.5
45
0
181
852
852
214
25.1
0
639
639
60.5
37.9
26
26
4100bp
830bp
2.9
300bp
-11
22
800bp
-16
NA
36
26
25
23
-40bp
4Q
1,701
23.3
1,178
523
30.7
59
17
172
619
612
169
27.6
0
443
450
55.2
26.5
1Q
1,531
4.1
798
733
47.9
44
18
337
1,008
1,004
263
26.2
0
741
745
132.8
48.7
FY21
2Q
3Q
1,632 1,736
4.2
5.3
815
858
817
878
50.1
50.6
44
38
18
16
179
246
934 1,070
932
234
25.1
0
698
700
686.5
42.9
1,065
263
24.7
0
802
802
101.5
46.2
FY20
4QE
1,821
7.1
975
847
46.5
40
0
258
1,065
1,065
262
24.6
0
803
803
78.5
44.1
6,386
26.0
4,704
1,682
26.3
207
29
683
2,129
2,344
872
37.2
0
1,472
1,257
498.6
19.7
FY21E
6,720
5.2
3,446
3,275
48.7
166
52
1,020
4,077
4,066
1,022
25.1
0
3,044
3,050
142.7
45.4
FY20
2Q
137.0
44.6
3324
1350
335
3Q
142.0
45.3
3373
1374
305
4Q
147.0
45.0
3307
1374
320
1Q
133.0
45.5
3150
1315
198
FY21E
2Q
141.0
45.8
2917
1000
196
FY20
3Q
148.0
46.7
2826
874
211
4QE
154.4
47.2
2826
874
328
559
42
3307
1374
1310
FY21E
576
44
2826
874
933
Highlights from the management commentary
Robust financial performance
Revenue in 3QFY21 stood at INR1.7b, an increase of 5% YoY. EBIT margin came
in at a record high of 48%, up 25pp YoY. PAT stood at INR 802m, up 102% YoY.
Collections increased 9% sequentially and are now at pre-COVID levels.
Relevancy of the platform remains very strong as repeat buyers are now at 60%
as against 55% in FY20.
EBIT margin in 9MFY21 more than doubled (47% in 9MFY21 v/s 22% in 9MFY20),
led by: 1) reduction in employee expenses on non-payment of variable pay, 2)
re-negotiation on pricing and reduction in outsourcing sales contracts, and 3)
optimization in other expenses on closure of offices.
Going forward, we can expect half of this benefit to return as the company
would start paying variable pay, given that collections have breached the pre-
COVID mark.
Half of the savings would continue to flow through on: 1] permanent
optimization in G&A (reduction in offices to 40 from 80), 2] sales through
channel partners are making cost more variable (would lead to reduction in total
employees), 3] movement of BPO to cloud telephony system (would lead to 10%
Expect some normalization in margin going forward
19 January 2021
3
 Motilal Oswal Financial Services
IndiaMART
savings per seat), and 4] reduction in travel expenses by shifting some of the
meetings to video conferencing.
Fund raiser for inorganic ventures
The company has taken Board’s approval to raise INR11b. The same would be
majorly used to pursue inorganic opportunities around: 1] SaaS products, 2]
fintech, and 3] vertical commerce.
The management intends to make long-term investments, along with one or
two acquisitions, and some minority investments. The latter could be a
customer acquisition, payment facilitation (credit), API banking, or business
insurance, where it can leverage IndiaMART.
The company meets and evaluates 25-30 companies every quarter and
undertakes secondary research on another 25-30 companies.
The acquisitions would be in the area of transaction and business enablement.
The court has granted interim injunction in favor of IndiaMART.
The next hearing is scheduled for 25 Jan’21.
The company has changed the price of its base package to INR3k plus taxes from
INR3k per month plus INR5k setup fees. This would help in reducing one-time
higher upfront payment.
It has launched quarterly and six monthly premium plans to reduce higher
payments up front and also introduced the concept of daily buying of leads.
Till date, it has seen good response to the change in its pricing structure.
The management would look towards differential pricing once things stabilize.
The same remains an important part of its agenda. At present, only export leads
are priced differently.
During 3QFY21, IndiaMART added 7k suppliers. Of this, 1.5k were suppliers that
returned due to the previous churn and the rest were new additions.
The management targets to add 5k paid suppliers every quarter. Most of the
additions from next quarter would be new suppliers.
Business for 90% categories are back to pre-COVID levels. However, 10% are yet
to recover.
Invested in order manufacturing system ‘pooraa’.
Invested in Vyapar for invoicing and accounting. The same has grown very well
in a short duration, with more than 70-75k customers as against 25k (specify
when). Vyapar is clocking INR30 in revenues every month.
Invested in Bizom a data distribution management tool. Revenue at INR350m
was the same as last year.
IndiaMART is slowly trying to establish itself in the entire SMEs value chain.
Legal case with Just Dial
Change in pricing structure
Focus to add 5k paid customers quarterly
Categories
Looks to be a one stop shop
19 January 2021
4
 Motilal Oswal Financial Services
IndiaMART
Exhibit 1: Leading indicators are positive
Traffic (m)
259 253
181 198 173 171 184 196 188 180 191
98
131
118 120 112 113
123
112 116
Business enquiries (m)
175
154
Source: Company, MOFSL
Exhibit 2: Sharp rebound in paid suppliers
Paid Suppliers ('000)
142
147
133
148
Exhibit 3: …with consistent ARPU
ARPU ( INR )
46.7
45.3
45.0
45.5
45.8
44.6
113
119
124
130 133
137
141
39.4 40.2
42.3 41.7
43.6
Source: Company, MOFSL
Source: Company, MOFSL
Valuation and view
Apart from the strong recovery in paid suppliers, collections, and revenue growth,
the company has shown higher resilience on the margin front. While we concur that
margin at current levels are not sustainable, the company would see positive
benefits from cost optimization and operating leverage. We increase our
FY22E/FY23E EPS estimate by 17%/16% to factor in a robust operating
performance.
We remain confident of strong fundamental growth in operations, led by: a) high
growth in digitization among SMEs (~25%), b) the need for out-of-the-circle buyers,
c) a strong network effect, d) over 70% market share in the underlying industry, e)
the ability to increase ARPU on low price sensitivity, and f) high operating leverage.
We arrived at our DCF-based target price of INR9,000 per share assuming 11%
WACC and 5% terminal growth rate. Our TP implies an upside of 22%.
Reiterate
Buy.
Change in estimates
Exhibit 4: Revisions to our estimates
Standalone business
Revenue (INR m)
YoY (%)
EBITDA (%)
EBIT (%)
EPS (INR)
FY21E
6720.4
5.2
48.7
46.3
105.1
Revised
FY22E
8426.0
25.4
43.5
41.3
120.4
FY23E
10324.6
22.5
43.2
41.0
145.3
FY21E
6,612.1
3.5
45.6
42.8
95.3
Earlier
FY22E
8,253.7
24.8
40.2
37.5
102.9
FY23E
10,113.9
22.5
40.4
37.7
125.4
FY21E
1.6
170bp
320bp
340bp
10.4
Change (%)
FY22E
FY23E
2.1
2.1
60bp
0bp
320bp
280bp
370bp
330bp
17.0
15.9
Source: MOFSL
19 January 2021
5
 Motilal Oswal Financial Services
IndiaMART
Story in Charts
Exhibit 5: Expect 13% CAGR in paid suppliers for FY20-23E
Paying Suppliers ('000)
33%
YoY Growth
210
130
178
42.3
37.2
20%
13%
13%
5%
15%
18%
32.8
32.1
38.4
Exhibit 6: ..with a 5% increase in ARPU
ARPU (INR '000)
47.3
49.1
108
72
147
154
43.5
96
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 7: ..resulting in 17% revenue CAGR
Revenue (INR M)
29%
29%
23%
26%
Growth YoY
25%
Exhibit 8: Normalized EBIT to be significantly above FY20
levels
EBIT Margin (%)
46%
41%
41%
6720
5%
2460
3180
4110
5070
6386
23%
11%
16%
23%
8426 10325
-19%
-52%
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 9: Strong operations with negative working capital
and lower capex to result in robust FCF
FCF (INR M)
5290
4492
3025
Exhibit 10: Return ratios remain strong
RoE
36.0
RoCE
75.0
62.3
74.1
49.8
57.8
49.8
40.4
40.4
2500
1768
76
563
2560
-34.2
-26.0
-56.2
FY18
Source: Company, MOFSL
FY19
FY20
FY21E
FY22E
FY23E
Source: Company, MOFSL
19 January 2021
6
 Motilal Oswal Financial Services
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
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 and Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability and Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Miscellaneous Expenditure
Appl. of Funds
E: MOFSL estimates
FY18
4,110
29.2
1,950
440
1,250
3,640
88.6
470
11.4
30
440
1,230
190
-600
0
-600
-1,150
191.7
0
550
550
-185.7
13.4
FY19
5,070
23.4
2,290
570
1,370
4,230
83.4
840
16.6
40
800
650
410
560
0
560
350
62.5
0
210
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
29
683
2,129
215
2,344
872
37.2
0
1,472
1,257
498.6
19.7
FY21E
6,720
5.2
1,998
515
933
3,446
51.3
3,275
48.7
166
3,109
52
1,020
4,077
-11
4,066
1,022
25.1
0
3,044
3,055
143.1
45.5
FY22E
8,426
25.4
2,461
786
1,517
4,763
56.5
3,663
43.5
184
3,479
0
1,166
4,645
0
4,645
1,142
24.6
0
3,503
3,503
14.7
41.6
(INR m)
FY23E
10,325
22.5
3,064
943
1,858
5,865
56.8
4,460
43.2
226
4,234
0
1,373
5,607
0
5,607
1,378
24.6
0
4,229
4,229
20.7
41.0
(INR m)
FY23E
289
12,068
12,357
5,410
0
-596
17,171
112
5
2
1,514
14,219
9,537
0
28
9,114
395
8,219
218
7,654
346
1,319
0
17,171
FY18
100
-3,312
-3,213
5,393
0
-1,247
933
73
8
2
345
3,111
642
0
7
467
168
3,247
419
2,720
107
-2,604
0
934
FY19
286
1,313
1,599
2,300
0
-964
2,935
85
6
2
44
6,450
657
0
6
402
250
4,308
450
3,709
149
-3,650
0
2,936
FY20
289
2,462
2,751
3,312
0
-536
5,527
52
5
2
1,514
8,719
401
0
17
169
215
5,166
179
4,682
305
-4,765
0
5,527
FY21E
289
5,209
5,498
3,736
0
-556
8,678
72
5
2
1,514
9,219
3,409
0
18
3,116
275
5,543
142
5,075
326
-2,134
0
8,678
FY22E
289
8,276
8,565
4,528
0
-576
12,517
92
5
2
1,514
11,219
6,491
0
23
6,133
335
6,807
175
6,296
336
-316
0
12,516
19 January 2021
7
 Motilal Oswal Financial Services
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 Coverage Ratio
Net Debt/Equity
Consolidated Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest and 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
28.6
-175.6
0.0
0.0
258.7
258.7
-42.1
34.5
301.8
0.0
92.0
-34.2
36.0
30.5
56.4
4.4
0
1
37
0.2
0.4
1.1
FY19
7.7
7.7
87.4
0.0
0.0
961.0
961.0
84.7
39.7
239.8
0.0
91.7
-26.0
-56.2
-9.1
59.8
1.7
0
0
32
0.2
1.2
-4.3
FY20
51.3
51.3
150.4
10.0
22.7
144.2
144.2
49.2
33.2
126.1
0.1
89.2
57.8
62.3
-25.4
122.8
1.2
0
1
10
0.1
50.9
-3.2
FY21E
105.1
105.1
300.6
11.9
11.5
70.4
70.4
24.6
32.0
65.6
0.2
96.4
74.1
75.0
-66.3
93.3
0.8
0
1
8
0.6
59.8
-2.2
FY22E
120.4
120.4
468.2
15.0
12.5
61.5
61.5
15.8
24.8
57.1
0.2
147.4
49.8
49.8
-61.8
91.6
0.7
0
1
8
1.0
NA
-2.0
FY23E
145.3
145.3
675.6
15.0
10.3
50.9
50.9
11.0
20.0
46.2
0.2
173.3
40.4
40.4
-58.0
92.2
0.6
0
1
8
1.2
NA
-1.9
(INR m)
FY23E
5,607
226
0
-1,378
2,208
6,663
-1,373
5,290
-246
5,044
-3,000
1,373
-1,873
0
0
0
-437
0
-437
2,980
6,133
9,114
FY18
-601
29
-28
-10
1,297
687
1,103
1,791
-22
1,769
-1,586
-44
-1,653
152
0
0
0
0
152
291
177
467
FY19
539
41
-30
-52
1,684
2,183
368
2,551
-51
2,500
-2,591
-116
-2,758
144
0
-3
0
0
141
-65
467
402
FY20
2,114
211
33
-186
1,022
3,194
-589
2,605
-45
2,560
-2,047
-233
-2,325
19
0
-199
-333
0
-513
-233
402
169
FY21E
4,129
166
52
-1,022
709
4,034
-1,009
3,025
-186
2,839
-500
1,009
323
0
0
-52
-349
0
-401
2,947
169
3,116
FY22E
4,645
184
0
-1,142
1,971
5,658
-1,166
4,492
-204
4,288
-2,000
1,166
-1,038
0
0
0
-437
0
-437
3,017
3,116
6,133
19 January 2021
8
 Motilal Oswal Financial Services
IndiaMART
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
19 January 2021
9
 Motilal Oswal Financial Services
IndiaMART
********************************************************************************************************************************
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.
19 January 2021
10