25 April 2021
4QFY21 Results Update | Sector: Financials
Mahindra & Mahindra Financial
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)
MMFS IN
615
221 / 2.9
224 / 76
-11/15/38
2230
CMP: INR179
TP: INR215 (+20%)
Buy
Strengthening the balance sheet
Mahindra & Mahindra Financial (MMFS) reported net profit of INR1.5b
v/s our PAT estimate of INR6.2b.
While operating profit grew 9% YoY to
INR10.5b (4% beat), higher provisions of INR8.9b (v/s our expectation of
INR1.7b) drove the PAT miss. The increase in provisions is largely on
account of one-off additional provisions of INR13.2b taken in 4QFY21.
NII/PPoP for FY21 was up 8%/22% YoY, while PAT declined 63% YoY to
INR3.4b. Total credit costs stood at 6% – the highest in the past decade.
We upgrade our FY22 EPS estimate on account of lower credit costs as
provisions were upfronted in FY21 itself.
Buy, with TP of INR215 (1.5x
P/BV FY23E).
The GS 2/3 loan ratio declined 150bp/100bp QoQ to 12.5%/9%.
The
company reduced Stage 1/2 provisions by 100bp to 2%, but increased
Stage 3 provisions to 58% (from 37% QoQ).
The number of customers that had not made a single payment during
the quarter declined to ~47k in 4Q from ~90k in 3Q. Also, only INR3b
ECLGS and INR0.5b restructuring were undertaken during the quarter.
MMFS had ~INR58b GNPLs pre-COVID and has ~INR58b GNPLs currently.
However, it had only ~INR25b total provisions pre-COVID, while it has
~INR47b total provisions currently.
In our view, the incremental provisions
made over the past year would suffice for any potential asset quality shock
arising from the second wave of the pandemic.
Contrary to expectations, disbursements declined 5% QoQ / 15% YoY in
4QFY21. As a result, the loan book declined 3% sequentially to INR646b.
Interestingly, the share of securitization in total borrowings is up 300bp
YoY to 18%. Note that it stood at 2–3% pre-IL&FS crisis.
Spreads improved ~130bp QoQ to 9.4%. Cost of funds came in at 7.40%
(down 36bp). MMFS maintains 15% liquidity on the balance sheet.
The HFC subsidiary delivered PAT of INR1.5b (flat YoY) in FY21.
The management aims to continue to maintain sub-4% net NPLs. We
expect normalcy in terms of growth after September. The expense ratio
would be 2.3–2.5%.
Financials & valuations (INR b)
Y/E March
2021
2022E
NII
PPP
PAT
EPS (INR)
EPS Gr. (%)
BV/Sh.(INR)
Ratios
NIM (%)
C/I ratio (%)
RoA (%)
RoE (%)
Payout (%)
Valuations
P/E (x)
P/BV (x)
Div. Yield (%)
55.3
41.6
3.4
2.7
-82
119
9.1
28.2
0.4
2.6
34.4
65.8
1.5
0.4
60.2
44.4
18.8
15.3
461
131
10.1
29.7
2.5
12.2
23.4
11.7
1.4
1.7
2023E
63.8
46.3
21.8
17.7
16
145
10.0
31.0
2.8
12.8
23.4
10.1
1.2
2.0
Sharp rise in PCR to drive net NPL below 4%
Disbursements disappoint; loan book declines QoQ
Shareholding pattern (%)
As On
Dec-20 Sep-20
Promoter
52.2
52.2
DII
15.5
12.5
FII
21.5
21.7
Others
10.8
13.7
FII Includes depository receipts
Dec-19
51.2
15.4
25.3
8.2
Management commentary and other highlights
Valuation and view
Contrary to expectations, MMFS has not yet been able to ramp up disbursements
to pre-COVID levels; in our view, this is still 1–2 quarters away. Hence, we forecast
3%/11% loan growth over FY22/FY23. However, the company has done a good job
of increasing provisions on the balance sheet; hence, we lower our FY22 credit
cost estimate. Therefore, while our PPoP estimates remain largely unchanged, our
lower credit cost estimates lead us to upgrade our EPS estimate by 60%/21% over
FY22/FY23. While RoE was subdued at 3% in FY21, it should reach 13% in FY23E.
Maintain Buy, with TP of INR215 (1.5x 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
Mahindra & Mahindra Financial
Quarterly Performance (INR m)
Y/E March
1Q
Operating Income
23,940
Other Income
185
Total income
24,125
YoY Growth (%)
24.4
Interest Expenses
11,282
Net Income
12,843
YoY Growth (%)
17.7
Operating Expenses
5,600
Operating Profit
7,243
YoY Growth (%)
2.6
Tax Provisions
363
Net Profit
684
YoY Growth (%)
-74.6
Key Operating Parameters (%)
Yield on loans (Cal)
15.3
Cost of funds (Cal)
8.4
Spreads (Cal)
6.9
Credit Cost (Cal)
4.0
Cost to Income Ratio
43.6
Tax Rate
34.6
Balance Sheet Parameters
Loans (INR B)
624
Change YoY (%)
20.9
Borrowings (INR B)
548
Change YoY (%)
28.4
Loans/Borrowings (%)
113.9
Debt/Equity (x)
5.0
Asset Quality Parameters (%)
GS 3 (INR B)
53.0
Gross Stage 3 (% on Assets)
8.2
NS 3 (INR B)
39.8
Net Stage 3 (% on Assets)
6.3
PCR (%)
24.9
ECL (%)
3.6
Return Ratios (%)
ROAA
0.4
ROAE
2.5
FY20
2Q
3Q
24,864 25,806
545
354
25,409 26,160
18.4
16.5
12,022 12,089
13,387 14,072
10.2
14.8
5,196 5,189
8,190 8,883
4.1
19.3
2,066 1,229
2,518 3,653
-34.0
14.6
15.5
8.6
6.8
2.3
38.8
45.1
638
15.0
565
18.0
112.9
5.3
52.0
7.9
41.9
6.4
19.5
3.3
1.4
9.3
15.7
8.4
7.3
2.5
36.9
25.2
655
12.4
587
17.9
111.5
5.3
57.7
8.5
44.5
6.7
22.9
3.6
2.0
13.4
4Q
26,369
389
26,758
7.9
12,895
13,863
3.8
4,197
9,666
23.9
716
2,209
-62.4
15.9
8.7
7.2
4.1
30.3
24.5
650
6.1
595
12.5
109.3
5.2
57.5
8.4
39.7
6.0
31.0
4.4
1.2
7.9
1Q
26,405
144
26,549
10.0
12,646
13,903
8.3
3,457
10,447
44.2
523
1,497
118.7
16.2
8.2
8.0
5.2
24.9
25.9
638
2.3
634
15.7
100.8
5.5
62.2
9.2
37.3
5.7
40.1
5.5
0.8
5.4
FY21
2Q
3Q
26,129 25,418
366
331
26,495 25,749
4.3
-1.6
12,216 11,583
14,279 14,165
6.7
0.7
3,968 4,185
10,311 9,980
25.9
12.4
1,082
-946
3,035 -2,741
20.6 -175.0
16.1
7.9
8.2
3.9
27.8
26.3
644
0.9
604
6.9
106.7
4.1
47.7
7.0
30.9
4.7
35.1
4.9
1.6
9.2
15.9
7.8
8.1
8.6
29.5
25.6
621
-5.1
592
0.7
105.0
4.0
66.4
10.0
42.1
6.6
36.6
6.4
-1.4
-7.4
4Q
26,000 1,00,979 1,03,952
375
1,473
1,277
26,375 1,02,451 1,05,229
-1.4
16.3
2.7
10,887 48,287
47,332
15,488 54,164
57,897
11.7
11.3
6.9
4,915 20,182
16,325
10,573 33,982
41,573
9.4
12.6
22.3
214
4,374
873
1,500
9,064
3,352
-32.1
-41.8
-63.0
16.8
7.4
9.4
5.8
31.7
12.5
599
-7.8
586
-1.5
102.3
4.0
57.9
9.0
24.3
4.0
57.9
7.0
0.8
4.1
15.8
8.6
7.2
3.3
37.3
32.5
650
6.1
595
12.5
109.3
5.2
57.5
9.1
39.7
6.1
31.0
4.9
1.3
8.3
16.4
8.0
8.4
6.0
28.2
20.7
599
-7.8
586
-1.5
102.3
4.0
57.9
8.3
24.3
4.1
57.9
7.4
0.4
2.6
Source: MOFSL, Company
FY20
FY21
4QFY21E
25,134
411
25,545
-4.5
11,097
14,447
4.2
4,272
10,175
5.3
2,194
6,245
182.7
v/s est
3
3
-2
7
15
4
-90
-76
Highlights from management commentary
Business updates
March was a strong month from a disbursement as well as collection
perspective.
Large M&HCV fleet owners have started adding capacity. However, small fleet
operators are yet to resume buying. Hence, MMFS was unable to benefit from
the pickup in M&HCV sales in 4QFY21.
The Bus, Tourism, and Taxi Aggregator segments are yet to return to normal
levels.
We expect growth to return to normal after September.
We expect the expense ratio to come in at 2.3–2.5% going forward. We do not
expect this to return to the pre-COVID levels of 3%.
25 April 2021
2
 Motilal Oswal Financial Services
Mahindra & Mahindra Financial
The company would look to cross-sell consumer loans (digital and personal
loans) to existing customers as a pilot. In the pilot phase, the company was able
to disburse to 5–7k customers per month. It would also look at 2W financing in
the future. It is not considering LAP at present.
4Q disbursements were lower v/s 3Q.
Employee expenses were up 32% YoY in 4Q on a lower base (due to write-backs
of employee incentives in 4QFY20).
Apr’21 – The pandemic has reached the rural areas. Dealerships and branches
would be closed for a few days. There could be a labor shortage on the ground
as well. However, agri and infra-related cash flows are good.
Asset quality
The sharp QoQ increase in PCR is out of prudence. The company would continue
to maintain sub-4% net NPLs.
Write-offs and termination losses stood at INR6.29b in 4QFY21.
Stage 1 and 2 provisioning percentages were down QoQ on account of the ECL
model being refreshed.
Others
The agri community is doing well; normal monsoons are predicted this year.
UV disbursements were low due to a) low OEM supply and b) a higher share of
sales in urban areas (where MMFS does not have a presence).
It adds 750–800k customers per year.
Criteria for branch openings – a) the business potential of that location b) OEMs’
plans to expand in the location, and c) proximity to the customer.
An INR320m provision was taken for ‘interest on interest’ on moratorium loans.
40% of the book of its rural HFC subsidiary is from Maharashtra. This geography
has been stressed over the past three years.
Key exhibits
Exhibit 1: Loan growth continues to decline
Loans (INR b)
26.2
20.9
15.0
12.4
621
2.3
638
0.9
(5.1)
612
624
638
655
650
644
599
(7.8)
689
714
727
YoY Growth (%)
30.6
21.6
15.9
15.7
11.9
772
14.0
12.3
7.8
814
817
5.9
Exhibit 2: AUM growth trend
AUM (INR b)
YoY Growth (%)
818
817
6.1
759
Source: MOFSL, Company
Source: MOFSL, Company
25 April 2021
3
 Motilal Oswal Financial Services
Mahindra & Mahindra Financial
Exhibit 3: Yield improves 92bp sequentially
Yields on loans (%)
14.9
15.3
15.6
CoF(%)
15.7
15.9
16.2
16.1
15.9
16.8
15.5
16.1
15.3
15.5
8.1
8.2
8.2
8.4
8.9
8.4
8.6
8.4
8.7
8.2
7.9
7.8
7.4
Source: MOFSL, Company
Share of CV/CE down 100bp
to 16% QoQ
Exhibit 4: AUM mix largely stable sequentially (%)
M&M-Auto/UV (%)
PV, Other UV & Tractors, SV (%)
Used Vehicles (%)
12
8
14
22
17
27
12
8
14
22
17
27
14
8
15
21
17
25
10
9
17
21
17
26
9
9
18
21
17
26
8
9
19
21
17
26
9
9
19
20
17
26
7
10
18
21
17
27
M&M Tractors (%)
CV & CE (%)
SME & Others (%)
6
10
19
21
17
27
6
10
19
21
17
27
7
9
18
21
17
28
5
9
17
22
17
30
6
9
16
22
17
30
Source: MOFSL, Company
Exhibit 5: PCR now stands at 58%
GS 3 (%)
PCR (%)
58
40
19
6
25
Exhibit 6: Credit cost improves ~285bp QoQ
Credit Cost (Bp of AUM)
8.64
4.01
2.29
-0.77
2.48
4.13
5.23
5.81
3.86
31
20
7
23
8
8
9
35
37
7
7
10
9
Source: MOFSL, Company, GS 3% on total assets
Source: MOFSL, Company
Valuation and view
The company is yet to recover from the pandemic in terms of disbursements.
Disbursements in 4Q were 5% lower than in the prior quarter. While we factor
in 3%/11% loan book growth over FY22/FY23, there is a downside risk to
growth, stemming from any potential impact of the second COVID wave.
Given its strong parentage, MMFS has been able to easily raise money from the
banking system and capital markets. Its incremental cost of funds is sub-6%
from the capital markets, while its on-book cost of funds has come in below
25 April 2021
4
 Motilal Oswal Financial Services
Mahindra & Mahindra Financial
7.5%. In addition to lower cost of funds, trimming balance sheet liquidity in FY22
would aid margins.
Given the elevated provisions on the balance sheet, credit costs are likely to
normalize going forward. We forecast ~3.1%/2.6% credit cost over FY22/FY23.
We upgrade our FY22 EPS estimate by 60% given our lower credit cost
estimates. While RoE is currently subdued at 3%, it should reach 13% in FY23E.
Maintain Buy, with TP of INR215 (1.5x FY23E BVPS).
Exhibit 7: We upgrade our FY22 EPS estimate to account for lower credit costs
INR B
NII (incl. Sec. Inc)
Other Income
Total Income
Operating Expenses
Operating Profits
Provisions
PBT
Tax
PAT
Loans
Credit Cost
RoA on AUM
RoE
FY22
60.6
1.4
62.0
18.2
43.8
27.9
15.9
4.2
11.8
703
4.2
1.5
7.5
Old Est
FY23
67.4
1.5
68.9
20.3
48.6
24.2
24.4
6.4
18.0
796
3.2
2.1
10.7
FY22
61.7
1.4
63.1
18.7
44.4
18.9
25.5
6.7
18.8
620
3.1
2.5
12.2
New Est
FY23
65.5
1.5
67.1
20.8
46.3
16.7
29.5
7.7
21.8
686
2.6
2.8
12.8
FY22
1.7
2.0
1.8
2.8
1.3
-32.1
59.8
59.8
59.8
-11.8
% Change
FY23
-2.8
2.0
-2.7
2.7
-4.9
-30.9
20.9
20.9
20.9
-13.7
Source: MOFSL, Company
Exhibit 8: One-year forward P/B
2.2
1.8
1.4
1.0
0.7
0.6
1.4
1.1
P/B (x)
Min (x)
Avg (x)
+1SD
1.7
1.4
Max (x)
-1SD
2.0
Exhibit 9: One-year forward P/E
40.0
30.0
18.4
20.0
13.3
10.0
0.0
8.2
5.0
P/E (x)
Min (x)
Avg (x)
+1SD
Max (x)
-1SD
29.2
18.0
Source: MOFSL, Company
Source: MOFSL, Company
25 April 2021
5
 Motilal Oswal Financial Services
Mahindra & Mahindra Financial
Financials and valuations
Income Statement
Y/E March
Interest Income
Interest Expended
Net Interest Income
Change (%)
Other Operating Income
Other Income
Net Income
Change (%)
Operating Expenses
Operating Profits
Change (%)
Provisions
PBT
Tax
Tax Rate (%)
PAT
Change (%)
Proposed Dividend (Incl Tax)
Balance Sheet
Y/E March
Equity Share Capital
Reserves & Surplus (Ex OCI)
Net Worth
Other Comprehensive Income
Net Worth
Change (%)
Borrowings
Change (%)
Other liabilities
Total Liabilities
Investments
Change (%)
Loans and Advances
Change (%)
Other assets
Total Assets
E: MOFSL Estimates
2017
60,127
28,574
31,553
6.0
1,612
636
33,801
3.5
14,509
19,292
-7.6
13,091
6,201
2,198
35.5
4,002
-40.5
1,610
2018
65,842
30,816
35,025
11.0
493
517
36,036
6.6
14,336
21,700
12.5
5,681
16,019
5,907
36.9
10,111
152.6
2,938
2019
86,146
39,446
46,700
33.3
1,084
869
48,653
35.0
18,476
30,177
39.1
6,352
23,824
8,254
34.6
15,571
54.0
4,779
2020
99,417
48,287
51,130
9.5
1,561
1,473
54,164
11.3
20,182
33,982
12.6
20,545
13,438
4,374
32.5
9,064
-41.8
0
2021
1,02,670
47,332
55,338
8.2
1,283
1,277
57,897
6.9
16,325
41,573
22.3
37,348
4,224
873
20.7
3,352
-63.0
986
2022E
1,00,591
40,438
60,153
8.7
1,539
1,405
63,097
9.0
18,710
44,387
6.8
18,918
25,469
6,673
26.2
18,796
460.8
3,759
2023E
1,04,479
40,646
63,832
6.1
1,693
1,545
67,070
6.3
20,815
46,255
4.2
16,738
29,517
7,734
26.2
21,784
15.9
4,357
INR m
2024E
1,15,917
46,212
69,704
9.2
1,862
1,700
73,266
9.2
23,158
50,108
8.3
17,035
33,073
8,665
26.2
24,408
12.0
4,882
INR m
2024E
2,464
1,95,656
1,98,120
81
1,98,201
10.9
6,83,289
15.5
58,506
9,39,915
91,291
10.0
7,85,783
14.5
62,841
9,39,915
2017
1,130
64,994
66,124
0
66,124
8.6
3,52,656
19.7
24,404
4,43,185
19,843
29.3
4,06,000
12.1
17,342
4,43,185
2018
1,229
92,052
93,281
0
93,281
41.1
4,00,932
13.7
33,715
5,27,927
27,341
37.8
4,85,470
19.6
15,116
5,27,927
2019
1,230
1,03,072
1,04,221
81
1,04,302
11.8
5,28,469
31.8
38,009
6,70,780
37,917
38.7
6,12,496
26.2
20,367
6,70,780
2020
1,231
1,12,408
1,13,558
81
1,13,639
9.0
5,94,623
12.5
32,451
7,40,712
59,110
55.9
6,49,935
6.1
31,668
7,40,712
2021
2,464
1,43,666
1,46,049
81
1,46,130
28.6
5,85,767
-1.5
38,469
7,70,365
1,16,073
96.4
5,99,474
-7.8
54,818
7,70,365
2022E
2,464
1,58,702
1,61,086
81
1,61,166
10.3
5,29,751
-9.6
44,239
7,35,156
75,447
-35.0
6,19,808
3.4
39,900
7,35,156
2023E
2,464
1,76,129
1,78,593
81
1,78,674
10.9
5,91,530
11.7
50,875
8,20,998
82,992
10.0
6,86,174
10.7
51,831
8,20,998
25 April 2021
6
 Motilal Oswal Financial Services
Mahindra & Mahindra Financial
Financials and valuations
Ratios
Y/E March
Spreads Analysis (%)
Yield on Portfolio
Cost of Borrowings
Interest Spread
Net Interest Margin
Profitability Ratios (%)
Cost/Income
Empl. Cost/Op. Exps.
RoE
RoA
Asset Quality (%)
GNPA
NNPA
GNPA %
NNPA %
PCR %
Capitalisation (%)
CAR
Tier I
Tier II
Average Leverage on Assets (x)
Valuation
Book Value (INR)
BV Growth (%)
Price-BV (x)
EPS (INR)
EPS Growth (%)
Price-Earnings (x)
Dividend
Dividend Yield (%)
E: MOFSL Estimates
2017
15.7
8.8
6.8
8.6
2018
14.8
8.2
6.6
8.0
2019
15.7
8.5
7.2
8.7
2020
15.8
8.6
7.2
8.3
2021
16.4
8.0
8.4
9.1
2022E
16.5
7.3
9.3
10.1
2023E
16.0
7.3
8.8
10.0
(%)
2024E
15.8
7.3
8.5
9.7
42.9
46.9
6.3
1.0
39.8
58.1
12.7
2.1
38.0
59.0
15.8
2.6
37.3
56.9
8.3
1.3
28.2
62.2
2.6
0.4
29.7
62.4
12.2
2.5
31.0
62.8
12.8
2.8
31.6
63.2
13.0
2.8
68,311
40,938
15.5
10.1
40.1
50,270
33,109
9.8
6.8
34.1
40,706
32,907
6.4
5.4
19.2
57,467
39,665
8.4
6.1
31.0
57,860
24,340
9.1
4.1
57.9
51,705
23,267
8.3
3.9
55.0
50,351
25,176
7.3
3.8
50.0
54,421
27,211
6.9
3.6
50.0
18.1
13.6
4.5
6.6
2017
117.0
8.5
7.1
-40.5
2.4
22.7
17.0
5.7
6.1
2018
151.8
29.7
16.5
132.3
4.0
2.2
20.3
15.5
4.8
6.1
2019
169.5
11.7
1.1
25.3
53.9
7.1
6.5
3.6
20.1
16.0
4.1
6.5
2020
184.5
8.9
1.0
14.7
-41.8
12.2
0.0
0.0
21.7
17.7
4.0
5.8
2021
118.5
-35.8
1.5
2.7
-81.5
65.8
0.8
0.4
22.9
19.5
3.5
4.9
2022E
130.8
10.3
1.4
15.3
460.8
11.7
3.1
1.7
22.8
20.0
2.8
4.6
2023E
145.0
10.9
1.2
17.7
15.9
10.1
3.5
2.0
22.0
19.8
2.2
4.7
2024E
160.8
10.9
1.1
19.8
12.0
9.0
4.0
2.2
25 April 2021
7
 Motilal Oswal Financial Services
Mahindra & Mahindra Financial
NOTES
25 April 2021
8
 Motilal Oswal Financial Services
Mahindra & Mahindra Financial
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
25 April 2021
9
 Motilal Oswal Financial Services
Mahindra & Mahindra Financial
********************************************************************************************************************************
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.
25 April 2021
10