25 August 2021
Company Update | Sector: Financials
Bajaj Finance
BSE SENSEX
55,944
S&P CNX
16,635
CMP: INR6,943 TP: INR7,700 (+11%)
Buy
BAJFIN and the entire Financial Services group set to
benefit from the new AMC license in the parent entity
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
BAF IN
602
4190.4 / 56.4
7052 / 3009
7/16/47
15784
2023E
246.3
173.8
101.4
168.6
43.3
863
10.0
29.4
4.5
21.4
10.0
41.2
8.0
0.2
Financials & Valuations (INR b)
Y/E March
2021
2022E
Net Income
172.7
199.2
PPP
119.6
138.9
PAT
44.2
70.8
EPS (INR)
73.5
117.7
EPS Gr. (%)
-16.3
60.2
BV/Sh. (INR)
606
712
Ratios
NIM (%)
9.5
10.0
C/I ratio (%)
30.7
30.3
RoA (%)
2.6
3.8
RoE (%)
12.8
17.9
Payout (%)
13.6
10.0
Valuations
P/E (x)
94.5
59.0
P/BV (x)
11.5
9.8
Div. Yield (%)
0.1
0.2
Shareholding pattern (%)
As On
Jun-21
Bajaj Finserv has got an in-principle approval from SEBI for sponsoring
a Mutual Fund (MF). While the opportunity is huge, given the under
penetration and financialization of savings in the country, the
competitive intensity in the industry is high with 44 players.
Bajaj Finserv has inherent advantages in its business model, given its
presence in the Retail Finance, Life Insurance, General Insurance, and
Securities businesses. Strong brand presence and wide distribution
reach are key pillars for garnering AUM, where BAGIC, BALIC, and BAF
have proved their expertise. Cross-sell to the existing customers of
these businesses is a huge opportunity.
Technology investments will be a key differentiator, given the
emergence of new-age Fintech players. Akin to the strong growth
displayed in other lines of businesses, Bajaj Finserv will be able to
deliver an industry-leading growth in the AMC business as well.
Barring any new COVID-related disruptions, we expect BAF to deliver
~21% AUM growth in FY22E and 25% CAGR thereafter. This Financial
Services group already had Lending products, General and Health
Insurance, Life Insurance, and Broking services. With an AMC in the
fold, the missing piece of a captive MF investment product (other than
deposits/traditional savings/ULIP products) will also be complete. This
should aid the fee and commission (particularly distribution) income
of BAF, which was already exhibiting high growth until Mar’20 when
COVID-19 struck.
BAF’s return ratios have been consistent and also the highest in our
Coverage Universe (excluding gold Financiers). Given the strong recovery
post relaxation of the lockdowns and the healthy progress made in its
digital transformation program (including wallets and payments), we
reiterate our Buy rating, with a TP of INR7,700 per share (8x 1HFY24E BV).
Jun-20
56.2
10.1
21.5
12.2
Mar-21
Promoter
56.0
56.1
DII
9.3
9.1
FIIFIIFII
24.2
24.2
Others
10.4
10.6
FII Includes depository receipts
Stock Performance (1-year)
The AMC business offers a huge growth opportunity
Bajaj Finance
Sensex - Rebased
6,800
5,600
4,400
3,200
2,000
India’s MF industry has come a long way, with assets under
management (AUM) quadrupling to INR32t in the past decade (16%
CAGR). At 12% of GDP, India’s MF penetration is significantly lower
than that of other countries (UK: 62%, Brazil: 68%, and the US: 120%).
Increasing per capita income, the gradual financialization of savings, a
growing awareness with targeted marketing campaigns such as
‘Mutual Funds
Sahi Hai’,
and improving reach, with digital platforms,
will lead to strong AUM growth ahead.
While the number of PAN card holders in India has crossed the 500m
mark, the industry has ~23m unique MF investors.
Research Analyst: Abhijit Tibrewal
(Abhijit.Tibrewal@MotilalOswal.com)
Prayesh Jain
(Prayesh.Jain@motilaloswal.com)
Nitin Aggarwal
(Nitin.Aggarwal@MotilalOswal.com) |
Divya Maheshwari
(Divya.Maheshwari@Motilaloswal.com)
21 July 2021
1
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.
 Motilal Oswal Financial Services
Bajaj Finance
Distribution is key in the Asset Management business. The group already
has this expertise in other businesses
BALIC has 54 corporate agents and 88,000 individual agents. BAGIC has 130
corporate agents and more than 80,000 individual agents. BAF has an overall
customer franchise of ~50.5m and cross-sell client base of ~27.4m.
B30 is the key focus area for all AMCs owing to its huge under penetration and
higher TER charge (30bp) that can be levied on inflows from B30. BAF derives
~34% of its AUM from rural areas, which gives it a strong brand presence.
This experience will go a long way in building the IFA network, which is key to its
MF distribution among retail investors.
Cross-sell opportunity and group investments offers an advantage over new
AMCs
BAF has investments of over INR110b in Mutual Funds at the consolidated level,
which can be moved over the years to the new captive AMC.
Cross-sell opportunities are large for the AMC business, with a huge retail
customer base across the three lines of businesses.
Product strategy would be key
New age AMCs largely focus on passive products, but these are low margin (ETFs
earn 10-20bp as against 80-90bp/30-40bp/10-12bp for Equity/Debt/Liquid).
Equity AUM growth needs three major elements: brand, performance and a
strong IFA network. Both Bajaj Finserv and BAF have a strong brand and can
build a strong IFA network, given their expertise in managing Retail distribution
in other businesses. Its performance track record will evolve over the years
(BALIC ULIP funds have closely tracked benchmark returns in largecap and index
funds based on five year CAGR).
Valuation and view
The COVID-related disruptions are known unknowns, and the quantum of
impact on disbursements/asset quality is difficult to ascertain. In the context of
the strong recovery seen in Jul-Aug’21, we expect BAF to be able to deliver a
pre-COVID quarterly run-rate in AUM growth for the remainder of FY22.
Provided there is no new COVID-19 wave, we expect BAF to contain credit costs
~2.6% in FY22E. Margin is likely to see a sharp improvement in FY22E on: a)
lower cost of funds, b) reduced liquidity, and c) a favorable base due to interest
reversals.
While FY21 was an aberration, distribution income, as a proportion of total fee
and commission income for BAF, has been on an increasing trajectory,
improving to 43% in FY20 from 30% in FY18. With the digital ecosystem play and
one-stop shop offering to its large cross-sell customer franchise, distribution
income growth can quickly accelerate over FY23-24E. We estimate ~21% CAGR
in fee and commission income over FY21-24E.
We expect BAF to deliver ~4.8% RoA/23% RoE over the medium term. Given the
positive outlook, we maintain our BUY rating, with a TP of INR7,700 per share
(8x 1HFY24E BVPS).
25 August 2021
2
 Motilal Oswal Financial Services
Bajaj Finance
Fees have offered strong support to earnings in the past. Expect
it to emerge as an even bigger contributor to future earnings
Despite a significant drop in volumes/new disbursements, fees declined by just
5% YoY in FY21 (on a higher base). Its contribution to overall profitability
remained high at 1.5% of average assets (down 30bp YoY, but near FY19 levels).
Services and administrative charges grew 45% YoY to INR13.2b, with their
contribution to overall fees at 54% (v/s 35-40% previously). This may have been
driven largely by: a) conversion fees to hybrid flexi loans, b) the cross-selling of
health EMI cards (1.1m sold), and c) penal interest charges (if any).
Distribution fees declined by 45% YoY due to modest co-branded credit card
usage (interchange fees) and lower incremental sourcing.
The number of EMI cards/outstanding cross-sells of credit cards grew at a
modest pace of 8%/12% YoY to 23.8m/2.1m.
Exhibit 1: Distribution fees were down YoY in FY21 because of COVID but demonstrated
strong growth over FY18-FY20
INR m
Service and administration charges
Fee on value added products
Foreclosure income
Distribution income
Brokerage income
Total
8,082
16,819
FY18
3,434
1,972
247
2,428
FY19
5,806
3,285
1,052
6,676
FY20
8,996
4,137
1,574
11,153
49
25,910
FY21
13,138
3,697
1,446
6,125
118
24,524
Source: MOFSL, Company
Significant focus on digital transformation
BAF used the crisis as an opportunity to accelerate its digital journey. The
company is targeting the omni-channel platform to enable the customer to
move between online and offline, and vice-versa, in a frictionless manner. It
plans to complete the entire transformation process by the end of Oct’21. With
this transformation, the management is targeting significant business velocity,
reduction in opex, and an improved customer experience.
The enterprise technology architecture is being rapidly modernized to address
the need for ‘consumerization’ and manage the scale and agility requirements
of BAF. To that end, BAF is re-building its customer-facing mobility app with: i) a
refreshed visualization layer; ii) a payments stack encompassing wallets, UPI, bill
pay services, and a single-payment checkout gateway; iii) customer engagement
features such as in-app programs, rewards, offers, deals, and location-based
services; iv) enhanced service engagement features and information, with a
robust search mechanism; and v) frictionless loans, investments, and insurance
purchase. Data, technology, and analytics are the core pillars of BAF’s business
transformation strategy. Significant changes are being undertaken in operating
processes and the core technology stack of the company. These are detailed
below:
25 August 2021
3
 Motilal Oswal Financial Services
Bajaj Finance
BAF is developing five proprietary marketplaces: i) the ‘EMI store’, ii) the
‘Insurance Marketplace’, iii) the ‘Investment Marketplace’, iv) ‘BFL Health’,
and v) the ‘Broking App’ with the help of its group companies.
These five apps
would provide customers with the option to review, compare, and buy a host of
financial products and services across electronics, insurance, investments, and
health categories.
BAF is also developing four productivity apps: i) ‘Sales One’, ii) ‘Merchant’, iii)
‘Collections’, and iv) ‘Partner’. These would significantly improve the
productivity and efficiencies of employees, channel partners, and the merchant
ecosystem.
Having received approval for running its own wallet business, BAF has
developed a wallet application called ‘Bajaj Pay’. This would offer an integrated
payment solution to its customers, comprising UPI, PPI, EMI card, and credit
card products. The company started offering ‘Bajaj Pay’ to its customers in
1QFY22.
BAF is also developing ‘Bajaj Pay’ for merchants. This will broaden the scope of
its payment solution to ~98,300 of its merchants, enabling higher growth and
larger market share.
The company is partnering with over 25 adjunct app ecosystems, with related
product or service offerings, for its customers. These apps would provide
adjacency to BAF’s core offerings and increase customer stickiness.
Appendix
Exhibit 2: Huge customer franchise that has been growing at
breakneck speed (except in FY21 due to COVID-19 outbreak)
No. of customers (mn)
30
25
32
24
53.5
14
59.8
60.2
64.9
Growth YoY (%)
Exhibit 3: Share of cross-selling has been in the 65-70%
range over the last three years
Cross sell ratio (%)
70.4
64.5
16.1
FY16
20.1
FY17
26.2
FY18
34.5
FY19
42.6
FY20
48.6
FY21
FY16
FY17
FY18
FY19
FY20
FY21
Source: MOFSL, Company
Source: MOFSL, Company
25 August 2021
4
 Motilal Oswal Financial Services
Bajaj Finance
Exhibit 4: Despite a YoY decline in fee income in FY21, led by lower business volumes and
distribution income, BAF has many levers for strong and sustainable fee improvement
Fee income (INR b)
% of avg. AUM (%)
2.0
1.7
1.1
1.1
1.6
0.8
0.8
0.9
1.6
FY14
2.3
FY15
3.5
FY16
5.7
FY17
8.1
FY18
16.8
FY19
25.9
FY20
24.5
FY21
Source: MOFSL, Company
Exhibit 5: One-year forward P/B
12.0
9.0
6.1
6.0
4.0
3.0
1.9
0.9
P/B (x)
Min (x)
Avg (x)
+1SD
Max (x)
-1SD
Exhibit 6: One-year forward P/E
P/E (x)
Min (x)
Avg (x)
+1SD
Max (x)
-1SD
59.8 50.2
38.1
24.0
15.0
9.8
5.1
9.0
9.0
65.0
40.0
0.0
-10.0
Source: MOFSL, Company
Source: MOFSL, Company
25 August 2021
5
 Motilal Oswal Financial Services
Bajaj Finance
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 profit
Change (%)
Provisions and W/Offs
PBT
Tax
Tax Rate (%)
PAT
Change (%)
Proposed Dividend
Balance Sheet
Y/E March
Capital
Reserves and Surplus (Excl. OCI)
Net Worth
OCI
Net Worth (Including OCI)
Change (%)
Borrowings
Change (%)
Other liabilities
Total Liabilities
Investments
Change (%)
Loans
Change (%)
Other assets
Total Assets
E: MOFSL estimates
FY16
65.5
29.3
36.2
37.0
7.5
0.4
44.1
39.0
19.0
25.1
44.0
5.4
19.6
6.9
34.9
12.8
42.4
1.6
FY17
87.1
38.0
49.0
35.4
12.7
0.3
62.0
40.7
25.6
36.4
45.0
8.2
28.2
9.8
34.8
18.4
43.6
2.5
FY18
115.9
46.1
69.7
42.2
11.6
0.1
81.4
31.3
32.7
48.7
34.1
10.3
38.4
13.5
35.0
25.0
35.9
2.8
FY19
163.5
66.2
97.3
39.5
21.4
0.1
118.8
45.9
42.0
76.8
57.6
15.0
61.8
21.8
35.3
39.9
60.0
4.3
FY20
229.7
94.7
135.0
38.8
34.0
0.1
169.1
42.4
56.6
112.5
46.5
39.3
73.2
20.6
28.1
52.6
31.8
7.3
FY21
233.0
94.1
138.9
2.9
33.6
0.1
172.7
2.1
53.1
119.6
6.3
59.7
59.9
15.7
26.2
44.2
-16.0
6.0
FY22E
259.4
95.7
163.7
17.9
35.3
0.2
199.2
15.3
60.3
138.9
16.2
43.3
95.7
24.9
26.0
70.8
60.2
7.1
FY23E
327.9
126.1
201.8
23.2
44.3
0.2
246.3
23.7
72.5
173.8
25.1
36.7
137.1
35.6
26.0
101.4
43.3
10.1
INR b
FY24E
416.4
160.8
255.6
26.7
53.8
0.3
309.7
25.7
89.0
220.6
27.0
40.8
179.8
46.7
26.0
133.0
31.2
13.3
INR b
FY24E
1.2
637.9
639.1
-1.2
637.9
23.1
2,369.7
23.5
54.2
3,061.8
184.0
0.0
2,804.4
25.0
73.5
3,061.8
FY16
0.5
73.7
74.3
0.0
74.3
54.7
370.2
38.7
25.2
469.7
10.3
211.2
438.3
40.5
21.1
469.7
FY17
1.1
89.4
90.5
0.0
90.5
21.9
508.9
37.5
19.9
619.4
41.3
299.5
564.0
28.7
14.1
619.4
FY18
1.2
157.4
158.6
-0.1
158.5
75.1
665.6
30.8
23.9
848.0
31.4
-24.0
800.0
41.8
16.6
848.0
FY19
1.2
195.8
197.0
0.0
197.0
24.3
1,015.9
52.6
29.5
1,242.3
86.0
173.9
1,137.1
42.1
19.2
1,242.3
FY20
1.2
323.0
324.2
-0.9
323.3
64.1
1,298.1
27.8
22.6
1,643.9
175.4
104.0
1,428.0
25.6
40.5
1,643.9
FY21
1.2
363.2
364.4
-1.2
363.2
12.3
1,316.5
1.4
35.6
1,715.3
184.0
4.9
1,483.3
3.9
48.0
1,715.3
FY22E
1.2
426.9
428.1
-1.2
426.9
17.5
1,561.5
18.6
41.0
2,029.4
184.0
0.0
1,794.8
21.0
50.6
2,029.4
FY23E
1.2
518.2
519.4
-1.2
518.2
21.4
1,918.2
22.8
47.1
2,483.5
184.0
0.0
2,243.5
25.0
56.0
2,483.5
25 August 2021
6
 Motilal Oswal Financial Services
Bajaj Finance
Financials and valuations
Ratios
Y/E March
Spreads Analysis (%)
Yield on Advances
Cost of borrowings
Interest Spread
Net Interest Margin
Profitability Ratios (%)
Cost-to-Income
Empl. Cost/Op. Exps.
RoE
RoA
Asset Quality (%)
GNPA
NNPA
GNPA
NNPA
PCR
Capitalization (%)
CAR
Tier I
Tier II
Average Leverage on Assets (x)
Valuation
Book Value (INR)
Price-to-BV (x)
EPS (INR)
EPS Growth (%)
Price-to-Earnings (x)
Dividend per Share (INR)
Dividend Yield (%)
E: MOFSL estimates
FY16
17.5
9.2
8.3
9.7
FY17
17.4
8.7
8.7
9.8
FY18
17.0
7.9
9.1
10.2
FY19
16.9
7.9
9.0
10.0
FY20
17.9
8.2
9.7
10.5
FY21
16.0
7.2
8.8
9.5
FY22E
15.4
6.7
8.7
10.0
FY23E
15.8
7.3
8.5
10.0
(%)
FY24E
16.0
7.5
8.5
10.1
43.1
33.2
20.9
3.2
41.4
36.3
22.3
3.4
40.1
43.9
20.0
3.4
35.3
46.2
22.5
3.8
33.5
45.0
20.2
3.6
30.7
47.0
12.8
2.6
30.3
47.6
17.9
3.8
29.4
48.3
21.4
4.5
28.8
49.2
23.0
4.8
5.4
1.2
1.2
0.3
77.2
9.8
2.6
1.7
0.5
74.0
11.6
3.5
1.4
0.4
69.6
18.0
7.3
1.6
0.6
59.7
23.6
9.4
1.6
0.7
60.3
27.3
11.4
1.8
0.8
58.4
33.8
13.5
1.8
0.7
60.0
41.2
16.5
1.8
0.7
60.0
50.8
20.3
1.8
0.7
60.0
19.5
16.1
3.4
6.5
FY16
138.7
23.9
33.0
2.5
19.5
13.3
6.2
6.6
FY17
165.5
33.6
40.7
3.6
24.0
18.4
5.5
5.9
FY18
275.7
43.4
29.2
4.0
20.7
16.3
4.4
5.9
FY19
341.4
69.3
59.6
6.0
25.0
21.3
3.7
5.5
FY20
540.3
12.9
87.7
26.7
79.1
10.0
0.1
28.3
25.1
3.2
4.9
FY21
605.7
11.5
73.5
-16.3
94.5
10.0
0.1
25.3
23.0
2.3
4.7
FY22E
711.6
9.8
117.7
60.2
59.0
11.8
0.2
24.5
22.7
1.8
4.8
FY23E
863.3
8.0
168.6
43.3
41.2
16.9
0.2
24.0
22.6
1.3
4.8
FY24E
1,062.4
6.5
221.2
31.2
31.4
22.1
0.3
25 August 2021
7
 Motilal Oswal Financial Services
Bajaj Finance
NOTES
25 August 2021
8
 Motilal Oswal Financial Services
Bajaj Finance
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
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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
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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.
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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
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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
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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
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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
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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
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 Motilal Oswal Financial Services
Bajaj Finance
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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.
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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
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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
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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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