20 May 2021
4QFY21 Results Update | Sector: Financials
IIFL Wealth
Buy
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)
IIFLWAM IN
87
96.6 / 1.3
1358 / 782
-4/-2/-30
47
CMP: INR1,099
A mixed quarter
TP: INR1,500 (+37%)
Flows rebound due to a large institutional mandate
PAT grew 7% QoQ to INR1.03b (8% beat) in 4QFY21. The beat was driven
largely by higher-than-expected TBR income.
Core revenue (excluding other income) was largely flat at INR9.2b and PAT
was up ~87% YoY to INR3.7b in FY21. Excluding the impact of other income,
core operating profit was also flat YoY at INR3.5b.
Following the sharp decline in 3QFY21, net new flows rebounded to
INR58b. This was aided by one large portfolio management mandate of
INR35b.
Net flows in FY21 were INR142b.
The company has guided at flows
improving to INR200b/INR250b in FY22/FY23.
Annual Recurring Revenue (ARR) assets have continued to drive AUM
growth. AUM rose 3.3% QoQ/32% YoY to INR2.07t, of which ARR assets
grew 13% QoQ/63% YoY to INR1.02t. Transactional/Brokerage Revenue
(TBR) assets declined 4% QoQ, but grew 11% YoY to INR1.05t.
IIFL-ONE continued to gain traction, with AUM up 8% QoQ/58% YoY to
~INR280b. However, the share of discretionary assets (which are high
yielding) declined to 31% from 35% QoQ.
ARR revenue (up 4% QoQ/13% YoY) missed our estimate by 7%. This was
due to a 100bp QoQ decline in NIM on loans as well as a 6bp QoQ decline
in AMC yields.
Yields in IIFL-ONE remains stable at 28bp.
Strong transactional revenue (36% beat) aided overall operational revenue
beat.
The surprise on TBR revenue came from IB/syndication-related fees
of INR600m v/s INR442m in 3QFY21.
The management guided at a 5bp reduction in overall yields to 52bp over
FY21-23E.
Total opex remained flat QoQ and was down 6% YoY to INR1.5b.
The company is looking to increase ARR share to 70-75% over the next 12-
18 months from ~50% currently. IIFL-ONE share will rise to 50-55% of ARR
by the end of FY22.
Third-party products of INR227b, wherein commissions were received
upfront (under TBR), are likely to mature in the proportion of
50%/35%/15% in FY22/FY23/FY24.
Financials & Valuations (INR b)
Y/E March
2021 2022E 2023E
Net Revenues
9.2
11.0
12.9
Opex
5.7
6.2
6.7
Core PBT
3.5
4.8
6.2
PAT
3.7
4.4
5.3
Ratios
PBT margin (bp)
22
25
28
PAT margin (bp)
23
23
24
RoE (%)
12.7
16.3
19.9
Div. Payout (%)
167
150
80.0
Valuations
P/E (x)
26.2
21.9
18.2
P/BV (x)
3.4
3.7
3.6
Div. Yield (%)
6.4
6.9
4.4
Strong transactional revenue; opex flat
Shareholding pattern (%)
As On
Mar-21 Dec-20 Mar-20
Promoter
22.9
23.0
22.9
DII
2.0
1.9
1.3
FII
24.2
21.9
20.1
Others
50.8
53.3
55.7
FII Includes depository receipts
Highlights from the management commentary
Valuation and view
Over the past decade, IIFLWAM has evolved into one of the leading wealth
management franchises in India. It has also become one of the largest alternate
asset managers, with unique product offerings. The AMC business has been
scaling up fast and now comprises 18% of total AUM. Traction in IIFL-ONE
remains healthy. However, yields are still sub-par. In 4QFY21, net flows have
been encouraging. We keep our estimates largely unchanged. Buy with a TP of
INR1,500/share (25x 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)
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
 Motilal Oswal Financial Services
IIFL Wealth
Quarterly performance
Y/E March
Net Revenues
Change (%)
Income from ARR Assets
Income from TBR Assets
Operating Expenses
Change (%)
Cost-to-Income Ratio (%)
Operating Profit
Change (%)
Other Income
Profit Before Tax
Change (%)
Tax
Tax Rate (%)
PAT
Change (%)
PAT Margin (%)
Key operating parameters (%)
AUM (INR b)
1,423
Change (%)
24.3
ARR Assets
635
TBR Assets
979
Less: Double Counting
191
Yields on AUM – Calculated
%*
0.60
ARR Assets
0.84
TBR Assets
0.34
1Q
2,108
-27.5
1,286
823
1,269
-11.0
60.2
839
-43.4
62
901
-40.3
287
31.8
615
-43.8
29.2
INR m
Act. v/s
FY21 4QFY21E
est. (%)
9,154
-0.5
5,828
3,325
5,679
0.6
62.0
3,474
-2.3
1,375
4,849
69.3
1,157
23.9
3,692
83.5
40.3
1,583
14.0
732
1,036
185
2,493
-3.0
1,721
772
1,479
-9.3
59.3
1,014
7.9
240
1,254
736.0
299
23.8
955
NM
38.3
1,832
32.0
980
1,105
254
7
-7
36
3
FY20
2Q
2,316
-13.7
1,249
1,067
1,304
-7.2
56.3
1,012
-20.9
-191
821
-47.0
136
16.6
685
-31.8
29.6
1,439
19.7
640
993
194
0.65
0.78
0.43
3Q
2,211
1.0
1,392
819
1,444
11.9
65.3
767
-14.6
233
1,000
-3.1
258
25.8
742
-7.3
33.6
1,508
15.9
704
1,017
214
0.60
0.83
0.33
4Q
2,565
4.8
1,419
1,146
1,628
38.5
63.5
936
-26.4
-795
142
-88.9
171
120.9
-30
-103.5
-1.2
1,388
1.6
626
943
181
0.71
0.85
0.47
1Q
1,988
-5.7
1,277
711
1,299
2.4
65.4
689
-18.0
405
1,093
21.3
271
24.8
823
33.8
41.4
1,583
11.2
732
1,036
185
0.54
0.75
0.29
FY21
2Q
2,120
-8.5
1,401
719
1,339
2.7
63.2
781
-22.8
347
1,128
37.5
257
22.8
871
27.3
41.1
1,671
16.2
791
1,080
200
0.52
0.74
0.27
3Q
2,392
8.2
1,543
849
1,519
5.2
63.5
873
13.8
406
1,279
27.9
314
24.6
965
30.1
40.3
1,775
17.7
905
1,100
230
0.56
0.73
0.31
4Q
2,656
3.6
1,608
1,047
1,523
-6.5
57.3
1,133
21.0
215
1,348
851.5
315
23.4
1,033
NM
38.9
1,801
29.7
1,020
1,051
270
0.59
0.67
0.39
FY20
9,200
-10.1
5,345
3,855
5,645
6.6
61.4
3,555
-28.0
-691
2,864
-46.8
853
29.8
2,011
-46.3
21.9
1,388
1.6
626
943
181
12
8
5
8
-2
4
-5
6
Highlights from the management commentary
AUM related
The company is looking to increase ARR share to 70-75% over the next 12-18
months from ~50% currently.
Given the lower return on fixed income, appetite for differentiated investments
and equities has increased.
Strong growth in distribution-based products faced some cannibalization due to
IIFL-ONE.
Growth triggers for IIFL-ONE are: a) onboarding a large part of the flow of new
clients to this segment, and b) movement from existing TBR AUM. IIFL-ONE
share will rise to 50-55% of ARR by the end of FY22.
Most corporate clients are happy to move to the advisory platform and don’t
see any impact of a change in regulation.
Third-party products of INR227b, wherein commissions were received upfront
(under TBR), are likely to mature in the proportion of 50%/35%/15% in
FY22/FY23/FY24. Part of it will move to ARR (55-60%) and the rest will remain in
TBR.
HR and admin related
Mr. Aman Mirani joined the team and will head the RE segment.
It is extensively adding digital capabilities.
20 May 2021
2
 Motilal Oswal Financial Services
IIFL Wealth
Senior level attrition in the Wealth and AMC business stood at five from over 80
people. Of this, three moved to start their own venture and two personnel were
lost to competition.
It promoted 6-7 principals to the partner level.
Senior level attrition at the investment level is one out of 10 professionals.
It lost 3-3.5% of clients and 1.3-1.4% of AUM.
P&L related
Employee cost is likely to be 33-37% of income. It is ideally looking to maintain
the same at 35% of income. ESOP cost will come down in FY22.
In FY21, there was an additional one-off variable/employee cost of INR100-
150m/INR200m.
It clocked an INR850-900m MTM gain on AIF from a total other income of
INR1.37b in FY21.
It invested INR7-8b of equity at 7%. The INR10b AIF investment also leads to
MTM gains/losses.
Capital and dividend
It will require an optimal capital (excluding goodwill) of INR20b. The same at the
NBFC/WM/AMC/holding company level is INR10b/INR5b/INR4b/INR1b.
Another special dividend of INR35-40/share is likely in FY22. The management is
looking to maintain its regular dividend payout ratio in the 60-80% range.
Capital allocation in the Wealth and AMC business: INR2.2-2.3b of WC
requirement, INR1-1.2b exchange requirement, and INR4-5b of investments.
Incremental investments going into AIF stands at 1.5-2% of the funds mobilized.
Others
Out of a total debt of INR47b, INR14-15b MLD is maturing by Jun-Jul’21, 97-98%
are MLD, and the rest is CPs.
Wealth unit economics in the long term
– Fees: 40-45bp + TBR: 10-15bp + NIM:
8-10bp; CIR: 50-52%; and PAT: 27-28bp.
Team level unit economics:
A senior banker, with a fixed salary of INR8-12.5m,
is in turn supported by 3-4 juniors, with a fixed salary aggregating to INR12.5-
15m. The total fixed compensation of the team is INR20-22.5m. Other
associated direct cost are: a) advisory council, b) product team, c) execution
team, and d) other opex. These costs together work out to INR22.5-25m. Total
cost at the team level is INR45m. To break even at a yield of 60-70bp, AUM of
INR7-7.5b are required. It sees operating leverage in fixed cost and variable cost.
A new team takes 2-3 years to break even. On a steady state basis, fixed cost-to-
salary ratio fell to 0.7x v/s 1x.
Steady state cost-to-income ratio in Wealth/AMC is 56-57%/50%. This can
reduce by a maximum of 5%.
20 May 2021
3
 Motilal Oswal Financial Services
IIFL Wealth
Exhibit 1: Largely maintain our FY22E/FY23E estimate
INR b
ARR Revenue
TBR Revenue
Total Income
Operating Expenses
Operating Profit
Other Revenue
PBT
Tax
PAT
Total AUM
Cost-to-core income
RoE
Dividend payout ratio
Old Estimate
FY22E
FY23E
7.9
10.0
3.3
3.4
11.2
13.4
6.5
7.4
4.7
6.0
1.0
1.2
5.7
7.2
1.4
1.8
4.3
5.4
2,165
2,561
57.7
55.4
19.1
25.6
206.5
70.0
New Estimate
FY22E
FY23E
7.7
9.8
3.2
3.1
11.0
12.9
6.2
6.7
4.8
6.2
1.0
0.8
5.8
7.0
1.4
1.7
4.4
5.3
2,062
2,371
56.2
52.2
16.3
19.9
150.0
80.0
Change (%)
FY22E
-1.8
-1.8
-1.8
-4.2
1.5
0.0
1.3
2.6
-4.8
FY23E
-2.2
-8.1
-3.7
-9.3
3.3
-33.3
-2.9
-1.6
-7.4
Source: MOFSL, Company
Key exhibits
Exhibit 2: Total AUM up 32% off a low base
Total Gross AUM(INR b)
21
YoY Growth (%)
32
62.5
60.7
60.8
59.1
60.1
58.6
57.7
54.9
50.7
Exhibit 3: ARR share now ~50% (%)
ARR AUM
TBR AUM
17
16
1
9
15
16
37.5
39.3
39.2
40.9
39.9
41.4
42.3
45.1
49.3
Source: MOFSL, Company
Source: MOFSL, Company; Note: Share in gross AUM
Exhibit 4: ARR AUM mix (%)
IIFL One
8
8
33
36
15
7
8
34
35
16
IIFL AMC
6
8
32
37
18
6
7
26
38
23
MFs
6
6
25
35
28
Managed Accounts
4
7
28
34
27
4
7
27
34
28
3
6
26
36
29
Loans
4
6
26
37
27
Exhibit 5: Sequential uptick in the loan book
Loan Book (INR b)
YoY Growth (%)
2
-18
-38
-15
-26
-26
-25
-38
48
46
39
40
35
29
28
30
36
Source: MOFSL, Company
Source: MOFSL, Company
20 May 2021
4
 Motilal Oswal Financial Services
IIFL Wealth
Exhibit 6: ARR yields decline (%)
0.90
0.84
0.83
0.85
Exhibit 7: Trend in core revenue
Core Revenues (INR b)
0.78
0.79
0.75
0.73
0.67
Source: MOFSL, Company
Source: MOFSL, Company; Defined as ARR+TBR revenues
Exhibit 8: C/I ratio moderates
C/I Ratio (%)
65.3 63.5 65.4 63.2 63.5
Exhibit 9: Trend in consolidated PAT (INR m)
58.9
48.0
60.2
56.3
57.3
835
616
684
741
823
871
965
1,033
-30
Source: MOFSL, Company
Source: MOFSL, Company
20 May 2021
5
 Motilal Oswal Financial Services
IIFL Wealth
Financials and valuations
Income Statement
(INR m)
FY17
2,392
4,687
7,079
52.6
4,013
3,066
69.4
779
3,845
69.8
1,161
30.2
2,684
58.4
534
FY18
3,670
6,618
10,288
45.3
5,652
4,636
51.2
140
4,775
24.2
1,099
23.0
3,676
37.0
785
FY19
4,437
5,794
10,231
-0.5
5,297
4,934
6.4
445
5,380
12.7
1,634
30.4
3,746
1.9
848
FY20
5,345
3,855
9,200
-10.1
5,645
3,555
-28.0
-691
2,864
-46.8
853
29.8
2,011
-46.3
2,018
FY21
5,828
3,325
9,154
-0.5
5,679
3,474
-2.3
1,375
4,849
69.3
1,157
23.9
3,692
83.5
6,150
FY22E
7,750
3,245
10,995
20.1
6,185
4,810
38.5
1,000
5,810
19.8
1,394
24.0
4,416
19.6
6,624
FY23E
9,813
3,092
12,905
17.4
6,738
6,167
28.2
800
6,967
19.9
1,672
24.0
5,295
19.9
4,236
FY24E
12,075
3,027
15,102
17.0
7,344
7,758
25.8
800
8,558
22.8
2,054
24.0
6,504
22.8
5,203
Y/E March
Annual Recurring Revenues Assets
Transactional/Broking Revenues Assets
Net Revenue
Change (%)
Operating Expenses
Core Profit Before Tax
Change (%)
Other Income
Profit Before Tax
Change (%)
Tax
Tax Rate (%)
PAT
Change (%)
Proposed Dividend
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: MOSL estimates
Y/E March
AUM (excluding custody assets) (INR b)
Change (%)
Annual Recurring Revenue Assets
Transactional/Brokerage Assets
Double counted assets
E: MOFSL estimates
FY17
156
15,043
15,198
56,261
4,505
75,964
32,887
36,520
291
6,267
75,964
FY18
160
18,469
18,629
69,663
7,374
95,666
18,564
-43.6
70,561
523
6,017
95,666
FY19
169
28,935
29,104
61,145
7,553
97,802
33,300
79.4
49,665
5,100
9,737
97,802
FY20
174
29,741
29,915
88,381
11,967
1,30,263
76,911
131.0
36,319
5,754
11,278
1,30,263
FY21
176
28,102
28,278
47,116
12,006
87,400
33,010
-57.1
37,206
8,153
9,030
87,400
FY22E
176
25,894
26,070
56,477
13,206
95,752
33,403
1.2
43,443
8,968
9,937
95,752
FY23E
176
26,953
27,129
67,772
14,527
1,09,427
36,496
9.3
52,132
9,865
10,934
1,09,427
FY24E
176
28,254
28,430
81,326
15,979
1,25,735
40,294
10.4
62,559
10,852
12,030
1,25,735
(INR m)
FY17
859
44.9
299
685
-125
FY18
1,124
30.9
449
861
-185
FY19
1,366
21.5
583
972
-189
FY20
1,388
1.6
626
943
-181
FY21
1,801
29.7
1,020
1,051
-270
FY22E
2,062
14.5
1,343
1,043
-324
FY23E
2,371
15.0
1,727
1,018
-373
FY24E
2,683
13.1
2,131
1,000
-448
20 May 2021
6
 Motilal Oswal Financial Services
IIFL Wealth
Financials and valuations
Ratios
Y/E March
As a percentage of Net Revenue
ARR Income
TRB Income
Total Cost (Cost-to-Income Ratio)
Employee Cost
PBT
Profitability Ratios (%)
RoE
Dividend Payout Ratio
DuPont Analysis (Bp of AAAUM)
Y/E March
Operating Income
Operating Expenses
Core Profit Before Tax
Other Income
Profit Before Tax
Tax
ROAAAUM
Valuations
BVPS (INR)
Change (%)
Price-to-BV (x)
EPS (INR)
Change (%)
Price-to-Earnings (x)
DPS (INR)
Dividend Yield (%)
E: MOFSL estimates
FY17
33.8
66.2
56.7
37.8
43.3
17.7
19.9
FY18
35.7
64.3
54.9
37.9
45.1
21.7
21.4
FY19
43.4
56.6
51.8
32.4
48.2
15.7
22.6
FY20
58.1
41.9
61.4
40.5
38.6
6.8
100.3
FY21
63.7
36.3
62.0
44.7
38.0
12.7
166.6
FY22E
70.5
29.5
56.2
40.0
43.8
16.3
150.0
FY23E
76.0
24.0
52.2
36.6
47.8
19.9
80.0
FY24E
80.0
20.0
48.6
33.6
51.4
23.4
80.0
FY17
98
55
42
11
53
16
37
FY17
195
FY18
104
57
47
1
48
11
37
FY18
234
19.8
46
33.9
9
FY19
82
43
40
4
43
13
30
FY19
344
47.5
44
-3.8
10
FY20
67
41
26
-5
21
6
15
FY20
343
-0.4
23
-47.9
20
FY21
57
36
22
9
30
7
23
FY21
322
-6.3
3.4
42
82.0
26.2
70
6.4
FY22E
57
32
25
5
30
7
23
FY22E
297
-7.8
3.7
50
19.6
21.9
75
6.9
FY23E
58
30
28
4
31
8
24
FY23E
309
4.1
3.6
60
19.9
18.2
48
4.4
FY24E
60
29
31
3
34
8
26
FY24E
323
4.8
3.4
74
22.8
14.8
59
5.4
34
6
20 May 2021
7
 Motilal Oswal Financial Services
IIFL Wealth
NOTES
20 May 2021
8
 Motilal Oswal Financial Services
IIFL Wealth
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
< - 10 % to 15%
Rating may undergo a change
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
********************************************************************************************************************************
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
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 Motilal Oswal Financial Services
IIFL Wealth
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.
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