22 April 2021
4QFY21 Results Update | Sector: Financials
ICICI Securities
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)
ISEC IN
322
136.7 / 1.8
569 / 308
8/-20/-25
293
CMP: INR424
TP: INR650 (+53%)
Buy
Strong customer acquisition; Distribution segment healthy
4QFY21 was another robust quarter in an overall strong year for ISEC. PAT
more than doubled YoY to INR3.3b (45% beat), driven by 54% growth in
revenue, coupled with significantly lower C/I ratio.
In FY21, ISEC delivered 50%/97% revenue/PAT growth. We increase our
FY22E/FY23E EPS estimate by ~10% to factor in healthy brokerage
revenue. Maintain Buy with a TP of INR650/share (18x FY23E EPS).
ISEC added 350k new customers v/s 139k QoQ.
Of this, 220k customers
were added through the Digital channel initiated last year. Around 55% of
such accounts are being opened by non-ICICIBC channels.
The activation rate jumped to 84% from mid-60s levels in the past two
quarters.
As a result, the number of NSE active clients increased to 1.6m
from 1.3m QoQ.
However, its cash market share dipped by ~100bp to 9.5% QoQ.
In the
F&O segment, ISEC’s market share had dropped to 3.5% in Dec’20 post the
implementation of new regulations. The company largely maintained its
market share (~3%) in 4QFY21.
Retail Broking revenue improved 7% QoQ to INR3.5b despite the
moderation in market share.
Distribution revenue was up 22% YoY to INR1.41b (QoQ not strictly
comparable due to seasonality). This was driven largely by all segments.
In MF distribution, the SIP count increased 12% YoY to 0.74m, while
ISEC’s market share improved 75bp YoY to 4.05%. Overall MF AUM was
up 20% YoY to INR413b.
The Institutional Equities segment delivered 30% YoY revenue growth to
INR480m. Given the buoyant capital market, revenue from Investment
Banking more than doubled QoQ to INR533m.
C/I ratio declined 200bp QoQ and 17pp YoY to 40%. The management
has guided at near term C/I ratio above these levels.
The lending book grew 37% QoQ to INR25.7b.
Financials & Valuations (INR b)
Y/E March
2021 2022E
Revenues
25.9
27.3
Opex
11.6
12.7
PBT
14.3
14.6
PAT
10.7
10.9
Ratios
C/I ratio (%)
44.7
46.5
PAT margin (%)
41.3
39.9
RoE (%)
70.4
55.0
Div. Payout (%)
65.0
70.0
EPS
33.1
33.9
Valuations
P/E (x)
12.8
12.5
P/BV (x)
7.5
6.4
Div. Yield (%)
5.1
5.6
Shareholding pattern (%)
As On
Mar-21 Dec-20
Promoter
75.0
75.0
DII
9.0
9.9
FII
3.7
4.6
Others
12.2
10.5
FII Includes depository receipts
Retail Broking: Pick-up in customer acquisition drives healthy topline
2023E
29.1
13.8
15.3
11.4
47.4
39.3
49.9
75.0
35.5
11.9
5.6
6.3
Strong performance in the distribution financial products too
Mar-20
79.2
11.5
3.2
6.2
Other highlights
Valuation and view
Changes in ISEC’s product and sourcing strategy have yielded results over the
past year. The ‘NEO’ plan has helped counter competition from discount
brokers as well as some traditional brokers who offer discount plans. We are
now seeing the digital sourcing model gain strong traction in terms of
customer acquisition. After a few turbulent years, the Distribution business has
stabilized. The impact of regulations on margin, coupled with overall trends in
industry volumes, would be key to watch out for in FY22E.
We raise our
FY22E/FY23E EPS estimate by ~10%. Maintain Buy with a TP of INR650 per
share (18x FY23E EPS).
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)
17 July 2020
are advised to refer through important disclosures made at the last page of the Research Report.
1
Investors
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
ICICI Securities
Quarterly performance
Y/E March
Revenue from Operations
Other Income
Total Income
Change YoY (%)
Operating Expenses
Change YoY (%)
PBT
Change YoY (%)
Tax Provisions
Net Profit
Change YoY (%)
Key Operating Parameters (%)
Cost-to-Income Ratio
PBT Margin
Tax Rate
PAT Margin
Revenue from Operations (INR m)
Retail Brokerage Income
Institutional Brokerage Income
Investment Banking
Distribution Income
Other servicing Income
Interest Income
Other Operating Income
Revenue from Operations Mix (%)
Retail Brokerage Income
Institutional Brokerage Income
Investment Banking
Distribution Income
Other servicing Income
Interest Income
Other Operating Income
Opex Mix (%)
Employee Expenses
Depreciation
Interest Expense
Others
Other Parameters (%)
Blended MS
Equity MS
Derivatives MS
NSE Active Customer MS
No. Of Branches
Network Partners
E: MOFSL estimates
(INR m)
Actual v/s
FY21 4QFY21E
estimate (%)
25,862
5,957
24
0
0
25,862
5,957
24
49.9
23.6
11,554
2,916
2
18.9
6.3
14,308
3,041
45
90.0
46.4
3,631
773
45
10,677
2,267
45
97.0
45.5
44.7
55.3
25.4
41.3
51.6
48.4
25.7
36.0
1Q
3,865
156
4,021
-7.7
2,261
-3.1
1,760
-13.1
622
1,138
-15.0
56.2
43.8
35.4
28.3
FY20
2Q
3Q
4,170 4,222
12
4
4,182 4,227
-8.7
4.4
2,341 2,376
-6.5 -3.7
1,841 1,851
-11.4 17.1
490
479
1,351 1,372
0.7 35.6
56.0
44.0
26.6
32.3
56.2
43.8
25.9
32.5
4Q
4,804
15
4,819
12.5
2,742
14.5
2,077
10.0
519
1,559
28.3
56.9
43.1
25.0
32.3
1Q
5,460
4
5,464
35.9
2,870
26.9
2,594
47.4
663
1,931
69.7
52.5
47.5
25.6
35.3
3,210
348
223
798
103
624
154
58.8
6.4
4.1
14.6
1.9
11.4
2.8
60.2
4.7
8.0
27.1
FY21
2Q
6,807
-2
6,805
62.7
3,082
31.6
3,723
102.2
942
2,782
105.9
45.3
54.7
25.3
40.9
3,534
386
623
990
285
898
90
51.9
5.7
9.2
14.5
4.2
13.2
1.3
58.3
4.2
9.2
28.2
3Q
6,201
-1
6,200
46.7
2,622
10.4
3,578
93.3
908
2,670
94.6
42.3
57.7
25.4
43.1
FY20
4Q
7,393 17,062
0
187
7,393 17,249
53.4
-0.1
2,980 9,720
8.7
0.2
4,413 7,529
112.4
-0.6
1,118 2,109
3,295 5,420
111.4
10.4
40.3
59.7
25.3
44.6
56.4
43.6
28.0
31.4
1,893 1,833 1,961 2,501
306
326
285
372
167
323
176
99
984 1,062 1,029 1,155
10
67
84
62
501
535
602
712
4
24
86
-96
49.0
7.9
4.3
25.5
0.3
13.0
0.1
56.3
6.9
7.9
28.9
44.0
7.8
7.7
25.5
1.6
12.8
0.6
57.2
6.3
7.6
28.9
46.4
6.7
4.2
24.4
2.0
14.2
2.0
55.9
6.2
9.2
28.6
52.1
7.7
2.1
24.0
1.3
14.8
-2.0
50.9
5.9
10.5
32.6
3,242 3,461
380 485
234 533
1,079 1,412
275 405
893 1,034
98
64
52.3
6.1
3.8
17.4
4.4
14.4
1.6
49.5
5.2
9.7
35.6
46.8
6.6
7.2
19.1
5.5
14.0
0.9
0.0
0.0
0.0
0.0
3.2
9.6
3.0
0.0
148
0.0
8,188 13,447
1,289 1,599
765 1,613
4,230 4,279
223 1,069
2,350 3,449
17.7
406
48.0
7.6
4.5
24.8
1.3
13.8
0.1
54.9
6.3
8.9
29.9
52.0
6.2
6.2
16.5
4.1
13.3
1.6
50.9
4.7
9.3
35.1
7.4
7.3
8.7
8.0
9.0
8.9
6.5
8.1
8.7
8.9
9.1
10.7
11.1
10.5
7.4
7.3
8.7
8.0
8.9
8.8
6.3
9.8 10.1 10.0 10.0
9.2
8.4
0.0
198
187
178
172
171
156
151
7500+ 8000+ 8600+ 9400+ 12100+ 13600+ 15200+
22 April 2021
2
 Motilal Oswal Financial Services
ICICI Securities
Highlights from the management commentary
Business updates
Industry cash ADTO moderated in Mar’21 (when the regulatory norms on
margin funding further tightened) while F&O ADTO remained unaffected.
Slight decline in market share in the F&O segment in Mar’21 is due to higher
leverage and greater share of intraday products as compared to the industry.
The management said that one-click investment for MFs on its app is the key
reason for market share growth in SIP.
ARPU for active retail customers rose to 10.1k YoY in FY21 from 8.7k in FY20.
As per the management, the minor loss in cash volumes market share is due to
intraday trades rather than delivery trades.
The company is disbursing INR5b loans per month v/s INR2-2.5b earlier. It has
tie-ups with eight different financiers. Typically, ISEC earns 75-125bp as fees on
these disbursements.
Sustainable employee cost-to-income ratio would be 25-27%. The overall C/I
ratio would not be sustainable at 4QFY21 levels of 40%.
ISEC expects the customer acquisition run-rate of 100k per month to continue.
Others
Leverage, tools, and pricing are the three competitive vectors in the F&O
segment. Historically, ISEC used to compete on leverage, but now it will work on
the other two also.
Cash constitutes over 50% of total Retail Broking revenue. Contribution of
Delivery trades to overall cash trading revenue is over 50%.
MTF yields are starting at 8.9%. ISEC’s MTF market share has risen to 19.3%
from 18.5% (specify period).
Increase in fee and commission expense is due to higher IB revenue, revenue
sharing arrangement with ICICIBC, and strong growth in revenue from the
partner channel.
The management is focused on digital marketing and new tie-ups.
The NEO plan is being offered to all customers. About 60k customers have
subscribed to the plan so far. There is a one-time fee of INR300.
Tie-up with FB for a 3-in-1 account is similar to that with ICICIBC. The customer
float remains with the bank and not with ISEC. Revenue share with FB is the
same as that with ICICIBC (35%/25% of revenue sharing in the first/second year).
ISEC has smoothened the digital account opening process in Dec’20.
Annual subscription revenue from Prime clients stands ~INR600m.
The management said ISEC holds the float in the digital acquisition model.
Valuation and view
ISEC is a classic play on increasing financialization of savings and retail
participation in the equity market. Thus, its business and profitability is cyclical.
During the downcycle of the past two years, the company took several initiatives
to make its business leaner and well-geared for the upcycle. Initiatives such as
the tie-up with ICICIBC; ‘Prime’, ‘Prepaid’, and ‘Options 20’ models; etc. have
started to yield results.
Post COVID-19, the Retail Brokerage segment in India has benefitted from
tailwinds of increased trading activity from retail customers, especially in Tier
3
22 April 2021
 Motilal Oswal Financial Services
ICICI Securities
II and III cities. Customer acquisition for the industry has seen an upsurge over
the past nine months. ISEC is well-placed to benefit from sectoral tailwinds.
The ‘NEO’ plan has helped counter competition from discount brokers as well as
some traditional brokers who offer discount plans. We are now seeing the
digital sourcing model gain strong traction in terms of customer acquisition.
After a few turbulent years, the Distribution business has stabilized. The impact
of regulations on margin, coupled with overall trends in industry volumes, would
be key to watch out for in FY22E.
We raise our FY22E/FY23E EPS estimate by ~10%.
Maintain Buy with a TP of
INR650 per share (18x FY23E EPS).
Exhibit 1: Upgrade our FY22E/FY23E EPS estimate by ~10% on better operating performance
INR b
Brokerage Income
Income from services
Other Income
Total Income
Operating Expenses
PBT
Tax
PAT
C/I ratio
RoE
Dividend payout ratio
Old Estimate
FY22E
FY23E
13.8
14.5
7.1
8.0
4.3
5.0
25.1
27.5
12.1
13.4
13.1
14.1
3.3
3.6
9.8
10.5
48.0
48.9
59.3
53.8
70.0
70.0
New Estimate
FY22E
FY23E
15.3
15.5
7.7
8.8
4.3
4.9
27.3
29.1
12.7
13.8
14.6
15.3
3.7
3.9
10.9
11.4
46.5
47.4
55.0
49.9
70.0
75.0
Change (%)
FY22E
FY23E
11.0
6.2
9.0
10.3
1.1
-1.8
8.7
6.0
5.4
2.7
11.8
9.1
11.7
9.0
11.9
9.1
Source: MOFSL, Company
Key exhibits
Exhibit 2: Revenue growth remains healthy…
Total revenue (INR b)
36
-8
4.0
-9
4.2
4
13
Growth (%)
63
47
53
2.0
-19
4.2
4.8
5.5
6.8
6.2
7.4
2.0
-22
-6
1.9
1.8
-16
28
-1
2.0
2.5
3.2
3.5
3.2
3.5
Exhibit 3: …driven by Retail Brokerage
Retail brokerage (INR b)
70
Growth (%)
93
65
38
-18
4.0
-16
4.3
Source: MOFSL, Company
Source: MOFSL, Company
22 April 2021
4
 Motilal Oswal Financial Services
ICICI Securities
Exhibit 4: Strong revenue from Institutional Brokerage
Institutional brokerage (INR m)
29
12
0
291
331
306
326
17
285
-2
372
348
386
380
485
1.07
12
14
18
-11
Growth (%)
33
30
1.13
-19
-15
-17
-4
3
0.80
-19
0.99 1.08 1.41
5
-7
Exhibit 5: Distribution revenue picks up seasonally
Distribution revenue (INR b)
Growth (%)
22
0.98 1.06 1.03 1.16
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 6: MF distribution yields largely stable
MF distribution revenue (INR m)
0.70
0.67
0.61
599
592
562
0.62 0.61
556
576
570
0.66
0.62
0.65 0.65
0.67
Yield (%)
Exhibit 7: 90bp QoQ moderation in equity market share (%)
Equity
8.00 8.50
7.40 7.30
Derivative
8.70
8.00
Blended
9.00 8.90
6.50
3.20
494
571
627
694
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 8: Trend in Investment Banking revenue
Corp. Fin. Revenue (INR m)
Exhibit 9: Ongoing branch rationalization
No. of branches
200 200 202 200 199 198 187
178 172 171
156 151 148
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 10: C/I ratio declines 200bp QoQ
Total opex (INR b)
60.9
C/I ratio (%)
45.3 42.3
40.3
55.9 56.2 56.0 56.2 56.9 52.5
Exhibit 11: Trend in PAT
PAT (INR b)
Growth (%)
106
70
1.0
-34
1.2
-20
1.1
-15
36
1
1.4
1.4
1.6
1.9
2.8
2.7
3.3
28
95
111
2.5
2.4
2.3
2.3
2.4
2.7
2.9
3.1
2.6
3.0
Source: MOFSL, Company
Source: MOFSL, Company
22 April 2021
5
 Motilal Oswal Financial Services
ICICI Securities
Financials and valuations
Income Statement
Y/E March
Total Income
Change (%)
Brokerage Income
Income from Services
Interest Income
Other Operating Income
Other Income
Operating Expenses
Change (%)
Employee expenses
Interest expenses
Depreciation
Others
Profit Before Tax
Change (%)
Tax
Tax Rate (%)
PAT
Change (%)
Proposed Dividend
FY17
14,042
24.9
7,756
4,982
1,091
214
0
8,822
17.6
4,847
289
155
3,531
5,220
39.5
1,835
35.1
3,386
41.8
2,468
FY18
18,610
32.5
10,243
6,552
1,574
241
0
10,086
14.3
5,504
495
153
3,935
8,524
63.3
2,989
35.1
5,535
63.5
3,646
FY19
17,270
-7.2
9,328
5,733
1,792
193
225
9,698
-3.8
5,545
423
150
3,580
7,572
-11.2
2,665
35.2
4,907
-11.3
3,646
FY20
17,249
-0.1
9,476
5,218
2,350
19
187
9,720
0.2
5,338
864
614
2,905
7,529
-0.6
2,109
28.0
5,420
10.4
3,825
FY21
25,862
49.9
15,045
6,961
3,449
407
0
11,554
18.9
5,880
1,073
542
4,060
14,308
90.0
3,631
25.4
10,677
97.0
6,940
FY22E
27,340
5.7
15,302
7,724
4,138
176
0
12,706
10.0
6,468
1,234
525
4,480
14,634
2.3
3,713
25.4
10,921
2.3
7,644
FY23E
29,142
6.6
15,454
8,823
4,635
231
0
13,812
8.7
6,953
1,419
500
4,941
15,330
4.8
3,890
25.4
11,440
4.8
8,580
(INR m)
FY24E
31,968
9.7
16,394
10,097
5,191
286
0
15,028
8.8
7,474
1,632
475
5,447
16,940
10.5
4,298
25.4
12,641
10.5
9,481
Balance Sheet
Y/E March
Equity Share Capital
Reserves and Surplus
Net Worth
Borrowings
Other Liabilities
Total Liabilities
Cash and Investments
Change (%)
Loans
Net Fixed Assets
Net Current Assets
Total Assets
E: MOFSL estimates
FY17
1,611
3,404
5,015
3,987
11,423
20,424
9,952
55.3
50
375
10,048
20,424
FY18
1,611
6,866
8,477
6,771
13,491
28,739
15,499
55.7
5,782
421
7,037
28,739
FY19
1,611
8,862
10,473
4,518
31,655
46,646
31,515
103.3
4,033
476
10,623
46,646
FY20
1,611
10,485
12,095
14,998
17,335
44,428
24,139
-23.4
5,709
2,061
12,520
44,428
FY21
1,611
16,610
18,221
35,238
28,350
81,809
38,822
60.8
29,015
1,688
12,285
81,809
FY22E
1,611
19,886
21,497
40,524
31,185
93,206
48,862
25.9
29,015
1,857
13,472
93,206
FY23E
1,611
22,746
24,357
46,603
34,303
1,05,263
55,077
12.7
33,367
2,043
14,777
1,05,263
FY24E
1,611
25,907
27,518
53,593
37,733
1,18,844
62,015
12.6
38,372
2,247
16,211
1,18,844
(INR m)
22 April 2021
6
 Motilal Oswal Financial Services
ICICI Securities
Financials and valuations
Ratios
Y/E March
As a percentage of revenue
Brokerage Income
Income from Services
Interest Income
Other Income
Total cost
Employee Cost
Opex (excluding employee) Cost
PBT
PAT
Profitability Ratios (%)
RoE
Dividend Payout Ratio
Valuations
BVPS (INR)
Change (%)
Price-to-BV (x)
EPS (INR)
Change (%)
Price-to-Earnings (x)
DPS (INR)
Dividend Yield (%)
E: MOFSL estimates
FY17
55.2
35.5
7.8
1.5
62.8
34.5
28.3
37.2
24.1
75.3
72.9
FY17
15.6
25.9
10.5
41.8
6.4
FY18
55.0
35.2
8.5
1.3
54.2
29.6
24.6
45.8
29.7
82.0
65.9
FY18
26.3
69.0
17.2
63.5
9.4
FY19
54.0
33.2
10.4
2.4
56.2
32.1
24.0
43.8
28.4
51.8
74.3
FY19
32.5
23.5
15.2
-11.3
9.4
FY20
54.9
30.2
13.6
1.2
56.4
30.9
25.4
43.6
31.4
48.0
70.6
FY20
37.5
15.5
11.3
16.8
10.4
25.2
11.0
2.6
FY21
58.2
26.9
13.3
1.6
44.7
22.7
21.9
55.3
41.3
70.4
65.0
FY21
56.5
50.6
7.5
33.1
96.9
12.8
21.5
5.1
FY22E
56.0
28.3
15.1
0.6
46.5
23.7
22.8
53.5
39.9
55.0
70.0
FY22E
66.7
18.0
6.4
33.9
2.3
12.5
23.7
5.6
FY23E
53.0
30.3
15.9
0.8
47.4
23.9
23.5
52.6
39.3
49.9
75.0
FY23E
75.6
13.3
5.6
35.5
4.8
11.9
26.6
6.3
FY24E
51.3
31.6
16.2
0.9
47.0
23.4
23.6
53.0
39.5
48.7
75.0
FY24E
85.4
13.0
5.0
39.2
10.5
10.8
29.4
6.9
(%)
22 April 2021
7
 Motilal Oswal Financial Services
ICICI Securities
NOTES
22 April 2021
8
 Motilal Oswal Financial Services
ICICI Securities
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”,
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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
22 April 2021
9
 Motilal Oswal Financial Services
ICICI Securities
********************************************************************************************************************************
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.
22 April 2021
10