11 February 2021
3QFY21 Results Update | Sector: Financials
MAS Financial Services
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)
MASFIN IN
55
46.9 / 0.7
1269 / 448
-10/-2/-51
28
CMP: INR858
TP: INR1,020 (+19%)
Buy
Muted 3QFY21, focus remains on asset quality
MASFIN’s 3QFY21 PAT declined 25% YoY to INR362m (9% miss). The
miss was due to lower topline on account of sequential run-down in
AUM. In 9MFY21, it delivered 15%/9%/17% decline in total
income/PPOP/PAT.
While disbursements improved QoQ, they were still ~80% of YoY levels
(in line with the management’s guidance). As a result, consolidated
AUM declined 4% QoQ/ 15% YoY to INR53b. The loan mix remained
largely stable with the share of MSME/SME loans at 60%/31%.
The share of off Balance Sheet loans declined sharply to 33% from 42%
QoQ. However, the company has DA sanctions worth INR10b.
Yield on loans (calc.) declined ~200bp QoQ to 13.4%. While this was
offset by an 80bp decline in the CoF, overall spreads fell 130bp to 5.2%.
MASFIN reduced BS liquidity from INR16b to INR10b sequentially. Yet,
this is quite healthy at 30% of loans.
The expense ratio improved from 1.6% to 1.3% YoY.
From 92% in Sep’20, collection efficiency improved to 96% in 3QFY21.
GS3 ratio (pro forma) was largely stable at 1.7%.
MASFIN incurred ~INR40m of COVID-19 provisions during 3QFY21,
taking the total provisions to INR560m (1.7% of loans).
Over 0dpd loans increased marginally to 6.2% from 5.9%.
The management expects INR8-10b of disbursements in 4QFY21. It is
confident of achieving 20-25% AUM growth once normalcy sets in.
Restructuring to be ~1% of the loan book
The average ticket size of SME loans more than doubled QoQ to
INR5.6m.
HFC subsidiary
– AUM has been flat for the past eight quarters at
INR2.7b; GS3 ratio (pro forma) stood at 36bp.
Tier I ratio stands at 30%. RoA/RoE for 3QFY21 was 3.1%/13%.
AUM runs down; on-book spreads contract
Financials & Valuations (INR b)
Y/E March
2020
2021E
Total income
4.3
3.4
PPP
3.3
2.8
PAT
1.8
1.4
EPS (INR)
33.2
26.4
EPS Gr. (%)
19.2
-20.3
BVPS (INR)
182
201
Ratios (%)
NIM
9.2
6.7
C/I ratio
23.2
17.4
RoA on AUM
3.1
2.6
RoE
19.8
13.8
Payout
24.1
26.0
Valuations
P/E (x)
25.9
32.5
P/BV (x)
4.7
4.3
Div. yield (%)
0.9
0.8
Shareholding pattern (%)
As On
Dec-20 Sep-20
Promoter
73.6
73.6
DII
11.0
11.2
FII
1.5
1.3
Others
13.9
14.0
FII Includes depository receipts
2022E
3.8
3.0
1.8
32.4
22.5
226
7.6
20.8
3.4
15.2
24.4
26.5
3.8
0.9
Collection efficiency close to pre-COVID levels; GNPL ratio stable
Key highlights from the management commentary
Dec-19
73.5
10.9
1.6
14.0
Other highlights
Valuation and view
The company operates in a tough environment, with a large exposure to
the MFI/MSME sector. The MFI sector is among the worst hit by the recent
pandemic, with collection efficiency far below pre-COVID levels. The
management is focusing only on collections and recalibration of
underwriting processes in FY21, while growth has taken a backseat. We
expect 20% AUM decline in FY21, followed by 15% CAGR over FY21-23E.
Collection efficiency at 96% is encouraging. Total provisions of INR1b (~3%
of loans) on the Balance Sheet are largely adequate. We cut our EPS
estimate by ~7% to factor in lower AUM growth, partially offset by lower
credit costs on account of healthy collection efficiency. The company is
likely to deliver 4-4.5% RoA/15-16% RoE over the medium term. Maintain
Buy with a TP of INR1,020/share (4x 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.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
14 January 2020
1
 Motilal Oswal Financial Services
MAS Financial Services
Quarterly performance
Y/E March
1Q
Revenue from Operations
1,592
Interest Income
1,357
Gain on assignments
200
Other operating Income
35
Interest expenses
640
Total income
953
Growth YoY (%)
21.1
Operating Expenses
196
Operating Profit
756
Growth YoY (%)
25.5
Provisions
130
Profit before tax
627
Growth YoY (%)
33.8
Tax Provisions
219
Net Profit
407
Growth YoY (%)
33.7
Key Operating Parameters (%)
Yield on loans (Cal.)
16.0
Cost of funds (Cal.)
9.3
Spreads (Cal.)
6.8
NIM on AUM (Cal.)
7.0
Credit Cost (%)
1.0
Cost to Income Ratio
20.6
Tax Rate
35.0
Balance Sheet Parameters
Standalone AUM (INR b)
55.8
Change YoY (%)
29.2
Disbursements (INR b)
12.0
Change YoY (%)
20.6
Borrowings (INR b)
29.6
Change YoY (%)
56.0
Debt/Equity (x)
3.1
Asset liability Mix
AUM Mix (%)
Micro Enterprises
64.5
SME loans
24.7
2W loans
8.2
CV loans
2.7
Borrowings Mix (%)
Direct Assignment
47.0
Cash Credit
34.0
Term Loan
18.0
Sub Debt
1.0
Asset Quality Parameters (%)
GS 3 (INR m)
668
GS 3 (%)
1.39
NS 3 (INR m)
528
NS 3 (%)
1.14
PCR (%)
20.8
Return Ratios (%)
RoA
4.1
Tier I ratio
26.5
E: MOFSL estimates
(INR m)
FY21E
Actual
3QFY21E v/s est
(%)
5,973
1,605 -11
4,795
1,267
874
275
303
63
2,617
711 -10
3,356
893 -13
-21.3
-22.3
585
161
1
2,770
733 -16
-15.4
-20.8
842
200 -33
1,928
533
-9
-19.2
-28.0
484
134
-9
1,444
399
-9
-20.3
-27.6
FY20
2Q
1,675
1,394
242
38
718
957
11.5
231
725
10.4
226
500
-6.8
98
402
16.2
15.4
9.7
5.8
6.7
1.6
24.2
19.6
58.9
26.4
13.6
16.9
29.8
34.7
3.2
3Q
1,734
1,435
253
45
672
1,061
3.2
239
823
-0.3
174
649
-6.5
165
483
6.4
16.1
8.9
7.1
7.2
1.2
22.5
25.5
59.6
20.3
13.2
6.5
30.5
22.4
3.2
4Q
1,729
1,393
289
46
690
1,039
5.3
232
807
0.8
327
479
-25.1
123
357
-14.2
16.5
8.9
7.5
7.0
2.2
22.3
25.6
59.7
11.8
12.9
-6.0
31.2
21.6
3.2
1Q
1,604
1,412
157
34
694
910
-4.4
122
788
4.2
299
489
-21.9
123
366
-10.2
17.6
9.1
8.5
6.3
2.1
13.5
25.2
56.6
1.4
1.1
-91.0
30.0
1.4
2.7
FY21
2Q
1,523
1,199
245
79
701
821
-14.2
125
696
-4.0
240
456
-8.7
114
342
-14.9
15.5
9.0
6.5
6.0
1.8
15.2
25.0
53.0
-10.1
8.2
-39.7
32.3
8.3
3.0
3Q
1,421
1,080
229
111
639
782
-26.4
163
619
-24.8
135
484
-25.4
122
362
-25.2
13.4
8.2
5.2
6.0
1.0
20.8
25.2
50.5
-15.2
10.3
-22.0
29.9
-2.0
2.6
4QE
1,426
1,104
243
79
583
842
-18.9
175
667
-17.3
169
499
4.0
124
374
4.9
FY20
7,224
5,969
1,093
162
2,961
4,263
16.5
988
3,275
13.6
889
2,386
2.0
573
1,813
19.2
61.3
28.5
7.9
2.4
48.0
31.0
20.0
1.0
623
1.27
503
1.06
19.3
3.8
25.5
61.6
28.2
7.6
2.7
50.0
26.0
23.0
1.0
652
1.29
513
1.06
21.4
4.5
28.8
61.0
29.7
6.7
2.6
50.0
24.0
24.0
1.0
629
1.42
464
1.14
26.2
3.2
28.9
60.5
29.6
7.1
2.8
50.0
24.0
25.0
1.0
597
1.41
441
1.14
26.1
3.2
32.2
59.4
31.0
6.8
2.8
44.0
26.0
24.0
1.0
632
1.56
417
1.16
34.0
2.9
32.7
60.0
30.5
6.4
3.1
39.0
31.0
23.0
1.0
490
1.32
327
1.00
33.3
3.1
30.4
11 February 2021
2
 Motilal Oswal Financial Services
MAS Financial Services
Highlights from the management commentary
Business updates:
Loan cycle is typically of 18-24 months.
The management expects INR8-10b of disbursements in 4QFY21. It is confident
of achieving 20-25% AUM growth once normalcy sets in.
The company has clocked ~85% of business volumes on a YoY basis.
The MSME segment continues to be the key driver of business going forward.
The management said it is seeing a 70-80% recovery in borrower activity.
Asset quality:
Collection efficiency over 96%, almost at pre-COVID levels.
Restructuring to be ~1% of the loan book.
Provision buffer at 1.67% of net owned assets. Overall, provisions should take
care of worst contingencies (including the impacted NBFC in Assam).
The third-party administer has recovered INR150m from the Sambandh NPA
account.
Around 1.51%/1.74% of micro enterprise/SME loans are in the over 90 dpd
bucket.
GNPA to be rangebound ~1.5-2%.
Liquidity and margin
:
Liquidity on books stands ~INR10b, with unutilized credit lines of INR5b. It has
INR18b of additional cash credit lines (of which ~65% have been utilized).
The company has sanctions of INR18.5b in the form of term loans for 4QFY21
and 1QFY22.
In 3QFY21, it undertook direct assignments of INR1.03b with PSU banks and
rolled over ~INR11b of working capital loans.
In the quarter gone by, the company raised INR35b in the form of term loans.
The management said it is comfortable to meet obligations of ~INR5b for the
next one year.
Others:
The company is developing several fintechs platforms.
It has 0.76m of live accounts as of Dec’20.
Around 68% of the book is sourced via intermediaries.
The management said it usually sees 80-100bp of write offs in a year.
11 February 2021
3
 Motilal Oswal Financial Services
MAS Financial Services
Key exhibits
Exhibit 1: Disbursements ~80% of YoY levels…
33
9
Exhibit 2: …resulting in AUM decline
AUM (INR b)
34
-22
28
29
26
20
12
1
-10
8.2
10.3
49.6
53.4
55.8
58.9
59.6
59.7
56.6
-15
53.0
50.5
Disbursements (INR b)
21
17
6
-6
YoY Growth (%)
YoY Growth (%)
1.1
-40
12.4
13.7
12.0
13.6
13.2
12.9
-91
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 3: AUM mix largely stable (%)
MEL
3
9
24
3
10
24
3
9
25
SME
2
3
8
8
25
28
2W
3
8
28
3
7
30
3
7
CV
Exhibit 4: Trend in yields and CoF (Calc., %)
3
7
31
3
6
30
Yield
16.9
15.9
16.1
15.4
16.1
Cost of funds
16.5
17.5
15.4
30
13.4
63
63
63
64
61
62
61
61
59
60
10.0
9.0
9.3
9.7
8.9
8.9
9.1
9.0
8.2
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 5: NIM on AUM sequentially stable
Net Income (INR m)
8.6
7.7
7.0
6.7
7.2
7.0
NIM on AUM (%)
Exhibit 6: Slight uptick in the expense ratio (%)
C/I Ratio
1.8
1.7
1.5
1.4
1.6
1.6
Opex/AUM
1.6
1.3
0.8
0.9
6.3
6.0
6.0
23.4 19.8 18.9 20.6 24.2 22.5 22.3 13.5 15.2 20.8
Source: MOFSL, Company; Note: including upfront assignment
income
Source: MOFSL, Company
11 February 2021
4
 Motilal Oswal Financial Services
MAS Financial Services
Exhibit 7: Asset quality healthy (%)
GNPL ratio
1.38
1.39
1.39
NNPL ratio
1.42
Exhibit 8: Creates INR40m of COVID-related provisions in
3QFY21
Provisions (INR m)
1.56
1.32
1.1
1.2
1.0
1.6
1.2
Credit costs (%)
2.2
2.1
1.8
1.0
1.27
1.29
1.41
1.13
1.14
1.14
1.06
1.06
1.14
1.14
1.16
1.00
132
159
130
226
174
327
299
240
135
Source: MOFSL, Company; Note: Ratios after considering SC order
Source: MOFSL, Company
Exhibit 9: Lower NII impacts PAT
51
29
34
16
PAT (INRm)
YoY (%)
Exhibit 10: RoA (on AUM) (%)
3.08 3.13 3.04 2.98
2.88
2.80
3.26
2.80
2.39 2.45 2.50
-14
-10
-15
-25
6
Source: MOFSL, Company
Source: MOFSL, Company. Reported RoA
Exhibit 11: Muted growth in HFC subsidiary
HFC AUM (INR b)
31
33
29
19
13
6
5
0
-2
YoY Growth (%)
Exhibit 12: HFC asset quality trend (%)
GNPL ratio
0.36
0.40
0.40
NNPL ratio
0.36
0.24
0.24
0.26
0.29
0.30
0.25
0.25
0.26
0.18 0.03
0.03
0.34
0.34
0.34
Source: MOFSL, Company
Source: MOFSL, Company; Note: Ratio is after SC order
11 February 2021
5
 Motilal Oswal Financial Services
MAS Financial Services
Exhibit 13: Cut our EPS estimates by ~7% to factor in lower AUM, partially offset by lower credit costs
INR b
NII
Other Income
Total Income
Operating Expenses
Operating Profit
Provisions
PBT
Tax
PAT
AUM
NIM (%)
RoAA (%)
RoAE (%)
Old estimate
FY21E
FY22E
2.4
2.8
1.2
1.4
3.7
4.2
0.6
0.8
3.1
3.5
1.0
1.0
2.1
2.5
0.5
0.6
1.6
1.9
60
69
4.0
4.4
3.5
4.1
14.8
16.0
New estimate
FY21E
FY22E
FY23E
2.2
2.5
2.8
1.2
1.4
1.6
3.4
3.8
4.4
0.6
0.8
0.9
2.8
3.0
3.5
0.8
0.7
0.7
1.9
2.4
2.8
0.5
0.6
0.7
1.4
1.8
2.1
50
55
66
3.9
4.7
4.6
3.3
4.2
4.5
13.8
15.2
15.8
FY21E
-9.8
-8.1
-2.0
-9.3
-13.8
-7.2
-7.2
-7.2
-16.5
Change (%)
FY22E
-12.1
-9.5
4.8
-12.7
-29.2
-6.3
-6.3
-6.3
-20.0
FY23E
-14.7
-10.2
-4.1
-11.7
-25.2
-7.3
-7.3
-7.3
-18.1
3.3
1.7
4.9
1.0
4.0
1.0
3.0
0.8
2.2
81
4.4
4.2
16.8
Source: MOFSL, Company
11 February 2021
6
 Motilal Oswal Financial Services
MAS Financial Services
Financials and valuations
Income Statement
Y/E MARCH
Interest Income
Interest Expense
Net Financing income
Change (%)
Gains on Assignment
NII incl. assignment income
Change (%)
Fees and Others
Total Income
Change (%)
Operating Expenses
Change (%)
Operating Profit
Change (%)
Total Provisions
% to operating income
PBT
Tax
Tax Rate (%)
PAT
Change (%)
Proposed Dividend
Balance Sheet
Y/E MARCH
Equity Share Capital
Reserves and Surplus (ex. OCI)
Net worth (ex. OCI)
OCI
Net Worth (incl. OCI)
Change (%)
Minority Interest
Other Capital Instruments
Borrowings
Change (%)
Other liabilities
Change (%)
Total Liabilities
Loans
Change (%)
Investments
Net Fixed Assets
Other assets
Total Assets
E: MOFSL estimates
FY16
2,779
1,423
1,356
29.6
2
1,359
29.2
260
1,619
28.0
681
30.2
938
26.5
236
25.1
702
271
38.5
432
27.7
176
FY17
3,148
1,513
1,634
20.5
0
1,634
20.3
268
1,902
17.5
604
-11.3
1,298
38.4
267
20.6
1,031
357
34.6
674
56.1
132
FY18
3,594
1,705
1,889
15.6
801
2,689
64.6
115
2,804
47.4
725
20.1
2,079
60.2
428
20.6
1,652
617
37.4
1,034
53.5
200
FY19
4,645
2,067
2,579
36.5
941
3,520
30.9
139
3,659
30.5
775
6.8
2,885
38.7
545
18.9
2,339
818
35.0
1,521
47.1
279
FY20
5,969
2,961
3,008
16.6
1,093
4,101
16.5
162
4,263
16.5
988
27.5
3,275
13.6
889
27.2
2,386
573
24.0
1,813
19.2
437
FY21E
4,795
2,617
2,178
-27.6
874
3,052
-25.6
303
3,356
-21.3
585
-40.7
2,770
-15.4
842
30.4
1,928
484
25.1
1,444
-20.3
375
FY22E
4,876
2,401
2,475
13.6
1,006
3,480
14.0
362
3,842
14.5
798
36.4
3,044
9.9
683
22.4
2,362
593
25.1
1,769
22.5
432
INR m
FY23E
5,459
2,665
2,795
12.9
1,207
4,001
15.0
432
4,434
15.4
933
16.9
3,500
15.0
728
20.8
2,772
696
25.1
2,077
17.4
498
INR m
FY23E
547
13,369
13,916
455
14,371
12.3
0
0
35,395
19.6
536
20.0
50,302
39,642
19.6
375
803
9,482
50,302
FY16
160
1,235
1,395
0
1,395
19.7
98
955
16,665
25.6
1,397
8.8
19,458
17,249
30.5
3
82
2,124
19,458
FY17
430
1,147
1,576
159
1,735
24.4
0
0
18,433
10.6
101
-92.8
20,269
19,342
12.1
133
72
722
20,269
FY18
547
6,674
7,221
376
7,596
337.7
0
0
18,871
2.4
509
405.8
26,977
25,463
31.6
134
565
815
26,977
FY19
547
7,859
8,406
455
8,861
16.6
0
0
27,438
45.4
736
44.5
37,036
32,185
26.4
223
572
4,056
37,036
FY20
547
9,385
9,932
455
10,387
17.2
0
0
34,870
27.1
310
-57.8
45,568
33,378
3.7
375
603
11,212
45,568
FY21E
547
10,454
11,001
455
11,456
10.3
0
0
28,970
-16.9
372
20.0
40,798
31,867
-4.5
375
663
7,893
40,798
FY22E
547
11,791
12,338
455
12,793
11.7
0
0
29,596
2.2
447
20.0
42,836
33,148
4.0
375
730
8,584
42,836
11 February 2021
7
 Motilal Oswal Financial Services
MAS Financial Services
Financials and valuations
Ratios
Y/E MARCH
Spreads Analysis (%)
Yield on loans
Cost of Funds
Spreads (On books)
NIMs (On Books)
Profitability Ratios (%)
RoE
RoA
RoA (on AUM)
Op. Exps./Net Income
Empl. Cost/Op. Exps.
Asset-Liability Profile (%)
Net NPAs-to-Adv.
Debt/Equity (x) - On BS
Average leverage
Valuations
Book Value (INR)
Price-to-BV (x)
EPS (INR)
EPS Growth (%)
Price-to-Earnings (x)
Dividend per share
Dividend yield (%)
E: MOFSL estimates
FY16
18.2
9.5
8.7
8.9
FY17
17.2
8.6
8.6
8.9
FY18
16.0
9.1
6.9
8.4
FY19
16.1
8.9
7.2
8.9
FY20
18.2
9.5
8.7
9.2
FY21E
14.7
8.2
6.5
6.7
FY22E
15.0
8.2
6.8
7.6
(%)
FY23E
15.0
8.2
6.8
7.7
33.7
2.5
1.8
42.1
35.8
45.3
3.4
2.2
31.8
43.4
23.5
4.4
2.7
25.9
52.4
19.5
4.8
3.1
21.2
60.9
19.8
4.4
3.1
23.2
59.4
13.8
3.3
2.6
17.4
51.1
15.2
4.2
3.4
20.8
45.0
15.8
4.5
3.4
21.1
44.3
0.9
11.9
11.7
FY16
87
27.0
28
0.8
11.7
11.8
FY17
37
15.7
-42
3.3
1.0
2.6
4.2
FY18
132
18.9
21
3.7
0.9
3.3
3.0
FY19
154
27.8
47
30.8
5.1
0.7
3.5
3.4
FY20
182
4.7
33.2
19
25.9
8.0
0.9
1.6
2.6
3.0
FY21E
201
4.3
26.4
-20
32.5
6.9
0.8
1.3
2.4
2.5
FY22E
226
3.8
32.4
22
26.5
7.9
0.9
1.1
2.5
2.5
FY23E
255
3.4
38.0
17
22.6
9.1
1.1
11 February 2021
8
 Motilal Oswal Financial Services
MAS Financial Services
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
11 February 2021
9
 Motilal Oswal Financial Services
MAS Financial Services
********************************************************************************************************************************
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.
11 February 2021
10