9 February 2021
3QFY21 Results Update | Sector: Financials
Muthoot Finance
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)
MUTH IN
401
475.8 / 6.5
1405 / 478
-13/-37/31
3023
CMP: INR1,186
TP: INR1,500 (+26%)
Strong all-round performance
Buy
Muthoot Finance (MUTH)’s 3QFY21 PAT grew 22% YoY to INR9.9b, driven
by healthy loan growth, stable spreads, and continued cost control. In
9MFY21, MUTH delivered 23–24% NII/PPOP/PAT growth.
While the number of customers and loan accounts had been largely
flattish for the past several quarters, a 4–5% sequential uptick was seen in
the same. Likewise, gold tonnage and gold loans grew 2%/7% QoQ.
Total
AUM (standalone) stood at INR497b (up 32% YoY).
Notably, with 7% sequential loan growth, MUTH outperformed its next
largest peer (3% QoQ) despite more than twice the loan book size.
The company continues to diversify the borrowing mix, raising INR20b via
retail NCDs in the quarter.
Overall cost of funds (calc.) declined 60bp QoQ
to 8.5%, while spreads were sequentially stable at 14.2%.
The company continues to maintain a tight control on expenses – total opex
was down 2–3% QoQ and YoY, driven by lower employee expenses (due to
lower variable pay) and advertising costs. Its expense ratio of 3.6% is the
lowest in the past several years and ~100bp lower v/s FY20.
The company reported 67% LTV on the balance sheet; incremental LTV is
68–70%.
Incremental CoF is 8% for banks and 7.5% for NCDs. It would maintain
excess liquidity.
The GNPL ratio was stable at 1.3%. Total provisions on the BS stand at 1.8%.
The share of NCDs has increased 500bp to 30% over the past two quarters.
Liquidity on the BS remains elevated at 21% of borrowings.
Muthoot Homefin:
Total AUM declined 3% QoQ / 7% YoY to INR19b.
Disbursements are still at 10–15% of pre-COVID levels.
The GNPL ratio
increased from 1.7% to 6.8% (proforma).
Total BS provisions stand at 2.1%.
Belstar Investment and Finance:
After two subdued quarters, the company
resumed growth.
AUM grew 7% QoQ / 26% YoY to INR29b, while PAT was
muted at INR54m (v/s INR258m YoY).
The GNPL ratio was largely stable at
0.7%. Total BS provisions stand at 2.1%.
Key highlights of the quarter – volume-led loan growth; lower CoF
Financials & Valuations (INR b)
Y/E March
2020
2021E
NII
57.7
66.4
PPP
41.5
51.7
PAT
30.2
37.5
EPS (INR)
75.3
93.4
EPS Gr. (%)
52.9
24.1
BV/Sh.(INR)
289
363
Ratios
NIM (%)
14.9
14.0
C/I ratio (%)
30.0
25.2
RoA (%)
6.8
6.6
RoE (%)
29.0
28.7
Payout (%)
19.9
17.0
Valuations
P/E (x)
15.8
12.7
P/BV (x)
4.1
3.3
Div. Yld. (%)
1.3
1.3
Shareholding pattern (%)
As On
Dec-20 Sep-20
Promoter
73.4
73.4
DII
7.0
7.7
FII
15.1
13.9
Others
4.5
5.0
FII Includes depository receipts
2022E
78.9
61.8
44.9
111.9
19.8
452
14.1
24.7
6.9
27.5
17.0
10.6
2.6
1.6
Highlights from management commentary
Other highlights
Dec-19
73.4
7.8
14.5
4.2
Subsidiary performance
Valuation and view
After several quarters of stagnant customer and loan count, 4–5% sequential
growth this quarter is encouraging. As the economy recovers from the shock of
the pandemic, loan demand is likely to remain high. We expect the company to
deliver 12–15% loan growth post FY21. Incremental cost of funds is ~100bp
lower than on-book cost of funds – this should mitigate yield pressure, if any.
RoA/RoE is likely to remain robust at 7%/27% over the medium term. We
increase our EPS estimates by 6–7%, factoring in stronger growth and lower
opex. Maintain Buy, with TP of INR1,500 (2.7x FY23E BVPS).
Research Analyst: Alpesh Mehta
(Alpesh.Mehta@MotilalOswal.com) |
Piran Engineer
(Piran.Engineer@MotilalOswal.com)
Nitin Aggarwal
(Nitin.Aggarwal@MotilalOswal.com)|
Divya Maheshwari
(Divya.Maheshwari@Motilaloswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
14 January
research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
1
Motilal Oswal
2020
 Motilal Oswal Financial Services
Muthoot Finance
Quarterly Performance
Y/E March
Income from operations
Other operating income
Total Operating income
YoY Growth (%)
Other income
Total Income
YoY Growth (%)
Interest Expenses
Net Income
Operating Expenses
Operating Profit
YoY Growth (%)
Provisions
Profit before Tax
Tax Provisions
Net Profit
YoY Growth (%)
Key Operating Parameters (%)
Yield on loans (Cal)
Cost of funds (Cal)
Spreads (Cal)
NIMs (Cal)
Credit Cost
Cost to Income Ratio
Tax Rate
Balance Sheet Parameters
AUM (INR b)
Change YoY (%)
Gold loans (INR b)
Change YoY (%)
Gold Stock Holding (In tonnes)
Avg gold loans per branch (INR
m)
Borrowings (INR b)
Change YoY (%)
Borrowings Mix (%)
Listed secured NCDs
Term loans
Commercial Paper
Others
Debt/Equity (x)
Asset Quality Parameters (%)
GS 3 (INR m)
Gross Stage 3 (% on Assets)
Total Provisions (INR m)
Return Ratios (%)
RoAUM (Rep)
RoE (Rep)
E: MOFSL estimates
1Q
18,274
294
18,568
13.8
19
18,587
13.8
6,416
12,171
3,972
8,199
8.2
33
8,166
2,866
5,300
7.8
21.2
9.3
11.9
13.9
0.0
32.6
35.1
358
15.5
352
15.1
176
78
281
21.1
28.1
49.0
17.1
5.8
2.9
FY20
2Q
3Q
21,057 22,806
312
399
21,369 23,206
29.5
35.2
37
4
21,405 23,209
29.7
35.2
6,699 7,094
14,707 16,115
3,969 4,542
10,738 11,573
43.6
47.6
265
612
10,473 10,961
1,894 2,809
8,579 8,152
77.3
68.0
23.9
9.5
14.4
16.4
0.3
27.0
18.1
357
10.6
349
9.1
171
77
285
17.0
30.4
47.0
17.2
5.4
2.6
25.0
9.3
15.7
17.4
0.7
28.2
25.6
385
18.6
377
18.7
173
83
326
29.2
31.9
39.6
14.1
4.5
2.7
9,769
2.5
8,377
8.8
29.6
4Q
23,506
497
24,004
27.7
23
24,026
27.8
7,700
16,326
5,304
11,021
35.3
48
10,974
2,822
8,151
59.4
24.0
8.8
15.1
16.3
0.0
32.5
25.7
416
21.5
408
21.4
176
89
372
38.3
26.0
39.2
9.7
4.8
2.9
1Q
23,160
691
23,851
28.4
3
23,854
28.3
8,715
15,139
3,738
11,400
39.0
146
11,255
2,847
8,408
58.6
23.0
9.2
13.9
14.6
0.1
24.7
25.3
413
15.3
405
15.1
165
89
389
38.2
23.2
40.3
12.7
4.4
2.6
FY21
2Q
3Q
25,066 27,168
768
480
25,834 27,649
20.9
19.1
11
116
25,845 27,765
20.7
19.6
9,241 9,455
16,603 18,309
4,496 4,410
12,107 13,900
12.7
20.1
107
585
12,000 13,314
3,056 3,401
8,944 9,914
4.2
21.6
23.4
9.1
14.3
15.0
0.1
27.1
25.5
470
31.6
462
32.3
163
100
422
48.4
25.6
42.0
11.2
3.7
2.7
5,920
1.3
8,590
8.1
28.1
22.7
8.5
14.2
15.0
0.5
24.1
25.5
504
30.9
497
31.7
166
107
466
42.8
28.5
41.9
10.6
3.2
2.8
6,568
1.3
9,162
8.1
29.0
4QE
28,172
690
28,862
20.2
21
28,883
20.2
9,788
19,095
4,800
14,294
29.7
580
13,714
3,518
10,196
25.1
22.6
FY20
(INR m)
Act v/s
FY21 3QFY21E
Est. (%)
26,006
625
26,631
14.8
25
26,656
14.9
9,334
17,322
4,724
12,599
8.9
600
11,999
3,036
8,963
9.9
4
-23
4
364
4
1
6
-7
10
-2
11
12
11
85,644 103,566
1,502
2,629
87,146 106,196
26.7
21.9
81
150
87,228 106,346
26.8
21.9
27,909 37,200
59,319 69,146
17,787 17,445
41,531 51,702
33.8
24.5
957
1,419
40,574 50,283
10,391 12,822
30,183 37,461
53.0
24.1
22.1
8.7
13.4
14.9
0.2
30.0
25.6
426
22.0
21.9
9.0
13.0
14.0
0.3
25.2
25.5
520
22.0
14.9
0.5
25.1
25.7
520
24.9
371
38.4
460
23.9
11,474 12,267
3.2
3.4
8,095 8,213
6.1
21.7
9.6
33.7
8,992 10,553
2.2
2.6
8,381 8,492
8.1
28.4
8.1
28.2
8,992
2.11
8,566
1.65
6.8
29.0
6.6
28.7
9 February 2021
2
 Motilal Oswal Financial Services
Muthoot Finance
Highlights from management commentary
Business updates
Expect 25–26% AUM growth for the year.
It reported 67% LTV on the balance sheet. Incremental LTV is 68–70%.
Stage 2 in gold loans stands at 0.48%.
Average loan yield is ~22%.
It would add 150–200 branches every year.
Stage 3 provisions are INR730m v/s INR590m QoQ.
Sequential decline in employee expenses is due to lower variable pay.
Funding
It raised INR20b via retail NCDs in the quarter.
It would keep excess liquidity on the balance sheet even in FY22.
Incremental CoF is 8% for banks and 7.5% for NCDs.
INR15b of CPs and bank lines mature every month.
It would restrict the share of CPs to 10% of total borrowings.
Subsidiaries
It has not initiated restructuring in the non-gold segments.
HFC – Collection efficiency (CE) stands at 88.7%, excluding arrear collections.
Without the SC order, GNPL would be 6.81%.
MFI – Disbursements and collections are back at pre-COVID levels. CE is back to
98% (due to SHG model). Small exposure is seen in WB and nil in Assam.
VF – CE is 83.8%.
Others
Gold loan growth has been largely uniform across geographies.
22% of the portfolio comprises loans with ticket sizes of more than INR300k.
‘Other income’ includes insurance claims from burglaries and recoveries from
past write-offs.
STD asset provisions stand at 1.09%.
Key exhibits
Exhibit 1: AUM growth trajectory strong
AUM (INR b)
YoY Growth (%)
32
17
11
31
16
5
310 323 325 342 358 357 385 416 413 470 504
72
75
78
77
83
89
89
100
107
19
13
Exhibit 2: Trend in productivity
Avg Gold Loans/Branch (INR m)
Growth (%)
30
29
15
18
16
19
11
22
15
10
12
11
Source: MOFSL, Company
Source: MOFSL, Company
9 February 2021
3
 Motilal Oswal Financial Services
Muthoot Finance
Exhibit 3: AUM mix (%)
East
West
North
South
Exhibit 4: Branches open up during the quarter
58
38
31
6
34
25
52
49
23
49
23
49
23
48
23
20
9
48
23
20
9
49
23
19
9
48
23
20
9
49
23
19
9
49
23
19
9
26
19
22
-4
20
8
20
8
20
8
Source: MOFSL, Company, Gold loan portfolio mix
Source: MOFSL, Company
Exhibit 5: Spreads largely stable (%)
Yields
20.8
21.2
22.5
21.2
23.9
25.0
CoF
24.0
23.0
23.4
22.7
Exhibit 6: Higher NCD share due to retail NCD issuance (%)
Term loans
4
0
12
35
3
0
16
33
2
0
18
31
3
0
17
31
NCD
3
0
17
33
CP
2
10
14
34
3
20
10
ECB
3
19
13
25
40
Others
2
17
11
27
42
2
16
11
30
42
9.0
9.5
9.4
9.3
9.5
9.3
8.8
9.2
9.1
8.5
49
48
49
49
47
28
39
40
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 7: 50bp decline in the expense ratio
Opex. To AUM (%)
5.5
4.6
5.3
3.6
4.1
3.6
Exhibit 8: GNPA ratio stable (%)
4.2
4.5
4.4
4.9
Source: MOFSL, Company
Source: MOFSL, Company
9 February 2021
4
 Motilal Oswal Financial Services
Muthoot Finance
Exhibit 9: 22% YoY growth in PAT
PAT (INR b)
77
68
59
Exhibit 10: Strong profitability continues
Growth (%)
59
22
4
6.1
6.0
6.3
6.1
RoE
9.6
8.8
RoAUM
8.1
8.1
8.1
8.1
1
1
8
4.9
5.1
5.3
8.6
8.2
8.2
8.4
8.9
9.9
22.7 21.5 21.5 21.7 33.7 29.6 28.4 28.2 28.1 29.0
Source: MOFSL, Company
Source: MOFSL, Company, Reported
Valuation and view
Over the past few quarters, there have been tailwinds to growth from increasing
gold prices. However, the number of customers was largely stagnant for several
quarters. 4–5% sequential growth in the customer count this quarter is
encouraging.
As the economy recovers from the shock of the pandemic, loan demand is likely
to remain high. We expect the company to deliver 12–15% loan growth post
FY21.
Positive ALM and adequate balance sheet liquidity have helped MUTH access
debt capital with relative ease. Over the past year, MUTH raised USD1b from
ECBs – this liability diversification would be helpful going ahead. It has also
raised substantial money from retail NCDs. Incremental cost of funds is ~100bp
lower than on-book cost of funds – this should mitigate yield pressure, if any.
RoA/RoE is likely to remain robust at 7%/27% over the medium term. We
increase our EPS estimates by 6–7%, factoring in stronger growth. Maintain Buy,
with TP of INR1,500 (2.7x FY23E BVPS).
9 February 2021
5
 Motilal Oswal Financial Services
Muthoot Finance
Exhibit 11: We upgrade our EPS estimates by 6–7%, factoring in stronger growth and lower opex
INR b
NII
Other Income
Net Income
Operating Expenses
Operating Profits
Provisions
PBT
Tax
PAT
Loans
Borrowings
Spread (%)
RoA (%)
RoE (%)
FY21
64.6
2.9
67.5
18.4
49.1
1.6
47.4
12.0
35.4
511
399
12.1
6.6
27.3
Old Est
FY22
75.9
3.4
79.3
21.1
58.2
1.9
56.2
14.2
42.0
588
442
11.8
7.0
26.2
FY23
88.4
4.0
92.3
24.3
68.1
2.2
65.8
16.7
49.2
676
490
11.8
7.2
25.0
FY21
66.4
2.8
69.1
17.4
51.7
1.4
50.3
12.8
37.5
520
460
13.0
6.6
28.7
New Est
FY22
78.9
3.2
82.0
20.2
61.8
1.6
60.2
15.4
44.9
598
478
12.8
6.9
27.5
FY23
91.4
3.6
95.1
22.7
72.4
1.8
70.6
18.0
52.6
669
515
12.7
7.3
26.0
FY21
2.7
2.5
-5.2
5.3
-13.5
6.0
6.8
5.7
1.7
% Change
FY22
4.0
3.5
-4.2
6.3
-18.7
7.1
8.0
6.8
1.7
FY23
3.5
2.9
-6.6
6.4
-19.8
7.2
8.1
7.0
-1.0
Source: MOFSL, Company
Valuation matrix
Rating
66
FY23E
HFCs
HDFC*
LICHF
PNBHF
AAVAS
CANFIN
REPCO
Vehicle
Finance
SHTF
MMFS
CIFC
Diversified
BAF
SCUF
LTFH
INDOSTAR
MAS
Gold Finance
MUTH
MGFL
Wholesale
PIEL
ABCL
Buy
Buy
Neutral
Neutral
Buy
Buy
CMP
Mcap
P/E (x)
P/BV (x)
RoA (%)
RoE (%)
(INR) (USD b) FY21E FY22E FY23E FY21E FY22E FY23E FY21E FY22E FY23E FY21E FY22E FY23E
2,747
439
353
2,264
500
261
64.6
3.0
0.8
2.2
0.9
0.2
28.8
7.2
5.6
64.0
14.1
5.6
22.2
6.5
5.0
52.2
13.8
5.3
16.4
6.0
4.0
40.8
12.4
4.8
3.2
1.1
0.7
7.5
2.6
0.8
2.6
1.0
0.6
6.5
2.2
0.7
2.0
0.8
0.5
5.6
1.9
0.6
1.8
1.4
1.4
3.3
2.2
2.4
1.9
1.4
1.5
3.4
2.1
2.3
1.9
1.3
1.8
3.8
2.1
2.4
12.5
16.1
12.6
12.4
19.9
15.2
12.4
15.7
12.8
13.4
17.2
14.0
13.1
14.9
14.2
14.8
16.4
13.7
Buy
Buy
Buy
Neutral
Buy
Buy
Neutral
Buy
Buy
Buy
Buy
Buy
1,414
184
459
5,400
1,470
89
323
885
1,186
173
1,578
89
4.4
1.6
5.2
45.3
1.3
2.5
0.6
0.7
6.5
2.0
4.6
3.0
13.6
28.2
20.8
73.8
10.1
18.9
33.9
30.9
13.4
8.3
14.4
6.8
10.8
19.3
16.0
36.7
8.1
8.2
26.1
25.7
11.3
7.0
12.3
4.6
9.4
12.6
14.1
28.9
6.5
5.8
18.3
21.6
9.7
6.0
10.7
1.0
1.6
1.5
3.8
8.9
1.2
1.2
1.0
4.4
3.3
2.0
1.2
0.7
1.4
1.4
3.1
7.3
1.1
1.0
1.0
3.9
2.7
1.6
1.1
0.4
1.3
1.3
2.6
6.0
0.9
0.9
0.9
3.4
2.2
1.3
1.0
0.1
2.2
1.1
2.7
2.6
3.1
0.8
1.1
3.5
6.6
5.6
0.0
1.6
2.7
1.5
3.2
4.8
3.7
1.9
1.3
4.1
7.0
5.7
0.0
1.4
2.8
2.1
3.4
5.0
4.3
2.4
1.9
4.2
7.2
5.8
0.0
1.8
13.2
6.0
20.1
12.8
12.6
6.4
3.5
14.9
27.3
27.0
8.4
10.6
14.2
7.5
21.7
21.9
13.9
13.5
3.7
15.9
26.2
25.6
9.4
8.5
14.3
10.7
20.3
22.7
15.1
16.5
5.1
16.7
25.0
24.2
10.0
10.5
9 February 2021
6
 Motilal Oswal Financial Services
Muthoot Finance
Financials and valuations
INCOME STATEMENT
Y/E MARCH
Interest Income
Interest Expense
Net Interest Income
Change (%)
Other income
Net Income
Change (%)
Operating Expenses
Pre Provision Profits
Change (%)
Provisions
PBT
Tax
Tax Rate (%)
PAT
Change (%)
Proposed Dividend
BALANCE SHEET
Y/E MARCH
Equity Share Capital
Reserves & Surplus
Networth
Borrowings
Change (%)
Other liabilities
Change (%)
Total Liabilities
Loans
Change (%)
Investments
Net Fixed Assets
Other assets
Total Assets
E: MOFSL Estimates
2016
47,995
22,577
25,418
17.9
755
26,173
18.0
11,381
14,792
38.9
1,624
13,168
5,072
38.5
8,096
20.7
2,393
2017
56,369
22,938
33,431
31.5
1,098
34,529
31.9
12,503
22,026
48.9
2,816
19,210
7,411
38.6
11,799
45.7
2,397
2018
62,021
19,314
42,707
27.7
1,310
44,017
27.5
13,174
30,843
40.0
2,397
28,447
10,671
37.5
17,776
50.7
4,010
2019
67,570
22,368
45,202
5.8
1,236
46,438
5.5
15,394
31,044
0.6
275
30,768
11,047
35.9
19,721
10.9
4,812
2020
85,644
27,909
57,735
27.7
1,584
59,319
27.7
17,787
41,531
33.8
957
40,574
10,391
25.6
30,183
53.0
6,016
2021E
103,566
37,200
66,367
15.0
2,779
69,146
16.6
17,445
51,702
24.5
1,419
50,283
12,822
25.5
37,461
24.1
6,368
2022E
117,338
38,465
78,874
18.8
3,174
82,047
18.7
20,248
61,799
19.5
1,565
60,234
15,360
25.5
44,875
19.8
7,629
(INR m)
2023E
131,155
39,726
91,429
15.9
3,627
95,056
15.9
22,667
72,389
17.1
1,774
70,615
18,007
25.5
52,608
17.2
8,943
(INR m)
2023E
4,010
218,893
222,904
514,973
7.7
26,734
15.0
764,611
669,465
12.0
18,709
2,965
73,472
764,611
2016
3,990
52,202
56,192
185,670
-4.5
28,625
27.2
270,487
245,241
4.2
983
2,274
21,990
270,487
2017
3,995
61,170
65,164
209,855
13.0
32,112
12.2
307,131
274,242
11.8
2,091
2,182
28,615
307,131
2018
4,000
74,120
78,120
211,670
0.9
18,132
-43.5
307,923
295,068
7.6
3,954
1,922
6,978
307,923
2019
4,007
88,151
92,158
268,332
26.8
20,198
11.4
380,687
349,329
18.4
9,826
1,867
19,666
380,687
2020
4,010
111,708
115,718
371,300
38.4
17,578
-13.0
504,597
426,042
22.0
14,383
2,227
61,944
504,597
2021E
4,010
141,463
145,473
459,974
23.9
20,215
15.0
625,662
519,771
22.0
15,462
2,450
87,979
625,662
2022E
4,010
177,107
181,117
478,189
4.0
23,247
15.0
682,553
597,737
15.0
17,008
2,695
65,113
682,553
9 February 2021
7
 Motilal Oswal Financial Services
Muthoot Finance
Financials and valuations
RATIOS
Y/E MARCH
Spreads Analysis (%)
Avg Yield on loans
Avg Cost of funds
Spreads on loans
NIMs on AUM
Profitability Ratios (%)
RoE
RoA
Cost to Income
Empl. Cost/Op. Exps.
Asset-Liability Profile (%)
GNPL ratio (%)
Debt/Equity (x)
Average leverage
Valuations
Book Value (INR)
Price-BV (x)
EPS (INR)
EPS Growth (%)
Price-Earnings (x)
Dividend
Dividend Yield (%)
E: MOFSL Estimates
2016
20.1
11.9
8.2
10.6
2017
21.8
11.6
10.2
12.9
2018
21.8
9.2
12.7
15.0
2019
21.0
9.3
11.7
14.0
2020
22.1
8.7
13.4
14.9
2021E
21.9
9.0
13.0
14.0
2022E
21.0
8.2
12.8
14.1
(%)
2023E
20.7
8.0
12.7
14.4
15.1
3.0
43.5
56.4
19.4
4.1
36.2
61.1
24.8
5.8
29.9
59.4
23.2
5.7
33.2
58.3
29.0
6.8
30.0
57.8
28.7
6.6
25.2
56.6
27.5
6.9
24.7
56.1
26.0
7.3
23.8
56.1
2.2
3.3
3.6
2016
140.8
20.3
20.4
6.0
2.8
3.2
3.3
2017
163.1
29.5
45.6
6.0
4.4
2.7
2.9
2018
195.3
44.4
50.4
10.0
2.7
2.9
2.8
2019
230.0
49.2
10.8
12.0
2.2
3.2
3.1
2020
288.5
4.1
75.3
52.9
15.8
15.0
1.3
1.6
3.2
3.2
2021E
362.7
3.3
93.4
24.1
12.7
15.9
1.3
1.6
2.6
2.9
2022E
451.6
2.6
111.9
19.8
10.6
19.0
1.6
1.6
2.3
2.5
2023E
555.8
2.1
131.2
17.2
9.0
22.3
1.9
9 February 2021
8
 Motilal Oswal Financial Services
Muthoot Finance
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
9 February 2021
9
 Motilal Oswal Financial Services
Muthoot Finance
********************************************************************************************************************************
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.
9 February 2021
10