Motilal Oswal Financial Services

16 November 2021

Info Edge

2QFY22 Result Update | Sector: Technology

Info Edge(India)

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)

INFOE IN

104

818.5 / 11

7463 / 3784

-8/23/25

3477



CMP: INR6,355



TP: INR6,150 (-3%)

Neutral

Growth to remain strong, but valuation leaves little upside

INFOE reported an in-line operating performance in 2QFY22, with

standalone revenue growth of 37% YoY (estimate of +35%), the EBITDA

margin at 30.2% (estimate of 30.1%), and APAT growth of 98% YoY (estimate

of 101% YoY). 2Q billings stood at INR4.02b, +67% YoY and +28% QoQ.

Billing growth was led by Recruitment Solutions (73.9%), 99acres (45.9%),

and Shiksha (74.7%).

The Naukri business is expected to grow exceptionally well on account of

robust hiring demand across the board, driven by both IT and Non-IT. The

Real Estate market is seeing decade-high demand momentum, and the

revenue growth rate is expected to be strong.

The 2Q EBITDA margin fell 100bps QoQ to 30.2%. Margins have expanded

for the Recruitment business, led by operating leverage from strong growth.

However, margin tailwinds were offset by higher advertisement and

promotional expenses in 99acres.

If the buoyancy in the job market continues, there is further scope for

margin expansion in Recruitment. Within Real Estate, the demand rebound

has been strong, and the management would continue to invest in

marketing to establish leadership within the space.

With continuous pressure on tech salaries and growth improving in 99acres,

we expect the operating spend to increase going forward. However, we see

this as being more than compensated by strong revenue growth. We expect

standalone revenues / PAT to post a 31%/47% CAGR over FY21–23, driven

by strong acceleration in the Naukri business.

We continue to see a good long-term growth opportunity at INFOE’s

operating entities, with margin improvement, as scale benefits come over

the next few years. However, we believe the valuation continues to fairly

price in the growth outlook.

We value its operating entities using the DCF valuation, with WACC of 11%

and a terminal growth rate of 6%. Our SoTP-based valuation indicates Target

Price of INR6,150 per share. Maintain

Neutral.

Financials & Valuations (INR b)

Y/E Mar

2021 2022E 2023E

Sales

11.0

14.8

18.9

EBITDA

2.8

4.6

6.0

PAT

2.7

87.1

5.9

EPS (INR)

21.3

34.8

44.7

EPS Gr. (%)

27.5

63.1

28.4

BV/Sh. (INR)

353.9 1,010.1 1,040.4

Ratios

RoE (%)

7.8

5.1

4.5

RoCE (%)

7.9

5.1

4.5

Payout (%)

44.9

34.5

31.4

Valuations

P/E (x)

298.0

182.7

142.3

P/BV (x)

18.0

6.3

6.1



Shareholding pattern (%)

As On

Promoter

DII

FII

Others

Sep-21

38.4

13.6

37.9

10.1

Jun-21

38.4

13.3

37.9

10.4

Sep-20

38.5

12.8

39.3

9.4



FII Includes depository receipts



In-line performance; profits boosted by Zomato listing



Standalone revenues grew 37% YoY (estimate of +35.4%). EBITDA grew

106% YoY v/s estimate of 102% growth. The EBITDA margin stood at 30.2%

v/s estimate of 30.1%. APAT growth was 98% YoY v/s estimate of 101% YoY.

1HFY22 revenue/EBITDA/APAT grew 25%/32%/51%.

Billings for the quarter stood at INR4.02b, an increase of 61% YoY. Billing

growth was led by Recruitment Solutions (73.9%), 99acres (45.9%), and

Shiksha (74.7%). Compared with pre-pandemic levels (2QFY20), billing

growth was 33.9%, led by Recruitment Solutions (38.8%) and 99acres

(12.5%).

Standalone revenue was INR3.52b, +10% QoQ and 37.3% YoY, in line with

our estimates of +35.4% YoY.

Mukul Garg – Research analyst

(Mukul.Garg@MotilalOswal.com)

Research analyst: Akshay Ramnani

(Akshay.Ramnani@MotilalOswal.com)/

Raj Prakash Bhanushali

(raj.bhanushali@motilaloswal.com)

15 February 2021

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.

Info Edge



The EBITDA margin was stable at 30.2% (-100bps QoQ), in line with our estimate

of 30.1%.

The margin was impacted by higher advertisement and promotional expenses

(320bp QoQ impact on margin), offset by better operating leverage.

Adj PAT was INR1.02b (v/s est. of 1.03b), +98% YoY and flat QoQ, driven by

strong YoY growth in EBITDA.

Reported PAT came in at INR83.56b. RPAT was aided by 1) gains on the Zomato

stake sale (INR3.6b) and 2) the fair valuation of the Zomato Investment

(INR89.4b) – partially offset by higher tax expense and provisions on start-up

investment.

Highlights from management commentary



Recruitment:

It saw a sharp growth rebound, which was also seen in a 60% YoY

increase in the Jobspeak index. Naukri’s India Enterprise/ Corporate business is

up 60% v/s pre-COVID levels and 82% YoY.

If the strength in the market continues, Info Edge may see margins expand from

current levels. However, if the market stabilizes, margins will likely stabilize or

inch down. The company does not target margins.

Real Estate:

The industry is seeing strong revival, visible in the growth in the

loan books of banks. Low prices and higher personal incomes are driving strong

demand, which is at decade highs. Renewal rates have bounced back to pre-

COVID levels.

The company expects the growth momentum to continue, driven by the

Residential Homes segment. While the market would grow at a high rate, the

competitive intensity is also high. The management would continue to invest in

marketing expenses within 99acres to establish its leadership.

The Talent market is hot, and if it continues to be strong, the company may have

a structurally higher wage bill.

The management stated that if Zomato had been a private company, Info Edge

would have advised it to focus on the core business rather than adjacent

verticals. However, this would have been at Zomato’s discretion.

Valuation and view



FY22 should see a strong rebound in revenue growth after 14% decline in FY21.

Billing is also expected to see a sharp pickup, which should help provide

operating leverage support to margins. With the expectation of additional jobs

coming in (on pent-up demand) and a rebound in real estate demand, we expect

a 31% revenue CAGR over FY21–23E.

With the management investing prudently, some of INFOE’s current

investments should be scaled up over the medium-to-long term, further

contributing to the group’s valuation.

We have individually valued INFOE’s group entities using the DCF-based

valuation (WACC: 11%; terminal growth rate: 6%). Our SoTP-based Target Price

stands at INR6,150/share.

Maintain Neutral.

16 November 2021

Info Edge

Quarterly Performance (Standalone)

Y/E March

Revenues

2,801

YoY (%)

-10.4

Salary costs

1,297

Ad and Promotion costs

256

Other Expenses

203

EBITDA

1,046

EBITDA Margin (%)

37.3

Depreciation

111

EBIT Margin (%)

33.4

Other Income

203

PBT bef. Extra-ordinary

1,122

Provision for Tax

290

ETR (%)

25.8

PAT bef. Minority

832

EOI

Adjusted PAT

832

QoQ (%)

5.6

YoY (%)

11.1

EPS (INR)

6.8

Key Perfor. Indicators

Y/E March

Operating metrics

Headcount

Naukri - Revenue per unique customer

99acres - Listing (k)

Revenue (YoY %)

Recruitment

99acres

Jeevansathi

4,590

38853

1,396

13%

15%

21%

(INR M)

Var.

(% / bp)

1.4

190bp

-0.4

7.8

-3.9

1.9

10bp

-21.8

100bp

7.5

6.6

37.3

610bp

7,996.7

-1.6

FY21

2,561 2,723 2,900 3,197

-19.1 -15.0 -10.2 14.1

1,363 1,315 1,515 1,518

502

503

557

459

181

224

296

223

516

682

532

997

20.1 25.0 18.3 31.2

110

109

106

103

15.8 21.0 14.7 28.0

263

316

406

410

654

875

819 1,290

142

176

120

281

21.8 20.1 14.6 21.7

512

699

667 1,010

-32

512

699

699 1,010

-38.5 36.6

0.1 44.4

-39.2 -23.3 -11.3 21.3

4.0

5.4

5.2

7.8

FY22E

3QE

3,517 3,863

37.3 41.9

1,605 1,704

617

657

232

313

1,063 1,189

30.2 30.8

104

27.4 28.1

440

1,392 1,513

377

318

27.1 21.0

83,557 1,195

82,542

1,015 1,195

0.6 17.7

98.5 71.1

7.8

9.2

FY21

4QE

4,193

44.6

1,821

721

345

1,306

31.2

106

28.6

447

1,635

343

21.0

1,292

8.0

84.7

9.9

10,986

-13.7

5,490

1,817

904

2,775

25.3

436

21.3

1,188

3,469

728

21.0

2,709

-32

2,677

-18.6

21.3

FY22E

14,769

34.4

6,648

2,453

1,113

4,555

30.8

412

28.0

1,737

5,830

1,318

22.6

87,054

82,542

1,69,596

6,235.0

34.8

Est.

2QFY22

3,469

35.4

1,612

572

241

1,044

30.1

127

26.4

410

1,306

274

21.0

1,032

2.2

101.7

8.0

-1.9

FY20

4,698

38752

1,318

11%

25%

4,562

41584

642

-9%

-25%

13%

4,478

37004

1,109

-19%

-36%

14%

FY21

4,465

35956

1,159

-18%

-23%

15%

4489

38808

894

11%

16%

15%

FY22

4,460

39452

1,469

40%

33%

FY20

FY21

4379

34342

1,214

-14%

-11%

14%

4,698

91429

5,267

15%

19%

17%

4379

79983

4,124

-15%

-24%

14%

Highlights from the management commentary

Recruitment



Saw a sharp rebound in growth, which was also seen in 60% increase YoY

increase in Jobspeak index.

IIM jobs saw 110% YoY growth.

Naukri’s India Enterprise/ Corporate business is up 60% v/s pre-covid levels and

82% YoY.

Overall job market is very strong and is driven by both IT and Non-IT

As the market is hot, company has rationalized discounts.

If strength of market will continue, Info Edge might see margins expand from

current levels. However, if the market stabilizes then margins will likely stabilize

or inch down a bit.

Company doesn’t target margins.

Real Estate



The industry is seeing strong revival, visible in the growth in the loan books of

banks.

Low prices and higher personal incomes are driving strong demand, which is at

decade highs. Renewal rates have bounced back to pre-COVID levels.

16 November 2021

Info Edge



Company has seen recovery in all sub-segments within Real estate business.

Daily listings on platforms in up 29% QoQ.

Renewal rates have bounced back to pre-covid levels.

Few customers are focusing on upgrades and high value services which are

offered on 99 Acres platform.

The company expects the growth momentum to continue, driven by the

Residential Homes segment. While the market would grow at a high rate, the

competitive intensity is also high.

The management would continue to invest in marketing expenses within

99acres to establish its leadership.

Other highlights



Talent market is hot and if it continues to be strong then company might have

structurally higher wage bill.

Money raised from Zomato OFS was not very material (increased fund balance

by ~10%) and it will be used for general business purpose.

The management stated that if Zomato had been a private company, Info Edge

would have advised it to focus on the core business rather than adjacent

verticals. However, this would have been at Zomato’s discretion.

Exhibit 1: Overall/Recruitment billing shows a sequential improvement

INFOE Billings (INR m)

Growth (YoY)

Naukri Billings (INR m)

Growth (YoY)

Source: Company, MOFSL

Exhibit 2: Strong recovery in the billings of 99acres

99 acres Billings (INR m)

Growth (YoY)

Exhibit 3: Jeevansathi’s billings stable in 2Q

JS and Siksha Billings (INR m)

Growth (YoY)

Source: MOFSL, Company

16 November 2021

Info Edge

Exhibit 4: SoTP-based TP at INR5,230/share

Info Edge (India)

Segment

Methodology

Methodology description



We have taken an assumption of 18% revenue

CAGR and 20% EBIT CAGR for FY21-34. Our

WACC and Terminal growth estimates stands

at 11% and 6% respectively.



We forecast 8% CAGR in total absorption for

the next 15 years, coupled with 4% CAGR in

weighted average price, which gives 12%

CAGR for the sector. Based on assumptions of

long term average of 7% market share of

99acres in real estate marketing expenditure,

we estimate 19% CAGR in revenue for FY20-

34. Our WACC and Terminal growth estimates

stands at 11% and 6% respectively.



Factoring in current market valuation



Factoring in current market valuation



We estimate 18% revenue CAGR for FY20-34

and increase in margins from -78% in FY20 to

30% in FY34. Our WACC and Terminal growth

estimates stands at 11% and 6% respectively.



7x One year forward sales

Valuation towards

INFOE (INR b)

413

Contribution

(INR per share)

3,182

Naukri

DCF

99acres.com

DCF

402

Zomato.com

Policybazaar.com

Jeevansathi.com

Other Businesses

Market valuation

DCF

192

1,480

554

135

Multiples

40% premium to the

Other investee companies

investment value

Cash On books

Total

273

6,150

Source: MOFSL, Company

Exhibit 5: Revisions to our estimates

Standalone business

Revenue (INR m)

YoY (%)

EBITDA (%)

EBIT (%)

EPS (INR)

Revised

FY22E

FY23E

14.8

18.9

34.4

28.2

30.8

31.5

28.0

29.2

34.8

44.7

Earlier

FY22E

FY23E

14.5

18.5

32.2

27.7

30.0

31.2

26.6

28.3

33.3

45.0

Change (% / bp)

FY22E

FY23E

1.7

2.1

220bp

50bp

90bp

30bp

150bp

80bp

4.4

-0.7

Source: MOFSL, Company

Valuation and view

Direct, high-quality play on exploding e-commerce opportunity



India’s e-commerce industry is expected to grow to USD100b by CY25 from the

current size of USD30b. As per Google, the Classifieds segment is expected to

grow at 18% CAGR, with Jobs, Real Estate, and Matrimony constituting two-

thirds of the market.

As GDP growth revives in India, it would directly benefit INFOE’s Recruitment

segment, which has had a 7–8pp historical multiplier effect for every 1pp uptick

in GDP growth. Naukri.com’s traffic share is almost 70%.

Reducing industry burn vindicates prudent investment strategy



The scenario in venture capital funding appears to have changed over the last

few months, with companies making a pivot toward monetization and

profitability. This would imply that the worst in terms of month-on-month burn

is behind.

16 November 2021

Info Edge



This plays into INFOE’s strategy of staying put to protect its market leadership in

multiple franchises such as Zomato. It could now look forward to deriving the

financial rewards from its investments sooner rather than later.

Revival in GDP growth to help its flagship Recruitment segment



Naukri.com should directly and disproportionately benefit from the uptick in

GDP growth. This should be compounded by a pickup in demand for IT

resources. A V-shaped recovery in billings is likely on the assumption that GDP

would revive back in FY22 (given that hiring persists in the IT sector).

Disciplined management action drives confidence



Backing strong teams:

Despite acquiring significant stake in investee companies,

the approach has been to back its teams and get involved as and when its

guidance is sought.

Prioritizing:

INFOE has been quick to write-off its investments where either

scale visibility has dwindled and/or the company’s focus has changed (INR2.2b

to date).

Valuation and view



FY22 should see a strong rebound in revenue growth after 14% decline in FY21.

Billing is also expected to see a sharp pickup, which should help provide

operating leverage support to margins. With the expectation of additional jobs

coming in (on pent-up demand) and a rebound in real estate demand, we expect

a 31% revenue CAGR over FY21-23E.

With the management investing prudently, some of INFOE's current

investments should be scaled up over the medium-to-long term, further

contributing to the group's valuation.

We have individually valued INFOE's group entities using the DCF-based

valuation (WACC: 11%; terminal growth rate: 6%). Our SoTP-based Target Price

stands at INR6,150/share.

Maintain Neutral.

16 November 2021

Info Edge

Financials and valuations

Income Statement

Y/E March

Sales

Change (%)

Employee expense

Advertising cost

Other expense

EBITDA

% of Net Sales

Depreciation

Interest

Other Income

PBT

Tax

Rate (%)

Adjusted PAT

Extraordinary Items

Reported PAT

Change (%)

Balance Sheet

Y/E March

Share Capital

Reserves

Net Worth

Loans

Capital Employed

Gross Block

Less : Depreciation

Net Block

CWIP

Investments

Curr. Assets

Current Investments

Debtors

Cash

Loans & Advances

Other Current Assets

Current Liab. & Prov

Current Liabilities

Provisions

Net Current Assets

Application of Funds

2014

5,059

15.7

1,968

662

761

1,668

33.0

174

432

1,876

591

31.5

1,285

25.7

2015

6,116

20.9

2,520

842

931

1,822

29.8

173

764

2,383

736

30.9

1,647

292

1,939

50.9

2016

7,123

16.5

3,247

1,318

1,137

1,421

20.0

210

721

1,932

539

27.9

1,393

-160

1,233

-36.4

2017

8,021

12.6

3,752

881

1,114

2,275

28.4

241

625

2,659

575

21.6

2,084

-40

2,044

65.7

2018

9,155

14.1

3,931

1,164

1,088

2,973

32.5

215

971

3,728

991

26.6

2,737

-913

1,824

-10.8

2019

10,983

20.0

4,586

1,757

1,226

3,413

31.1

204

1,112

4,320

1,169

27.1

3,152

-334

2,818

54.5

2020

12,727

15.9

5,396

2,044

1,260

4,027

31.6

414

876

4,423

1,133

25.6

3,290

-1,233

2,057

-27.0

2021

10,986

-13.7

5,490

1,817

904

2,775

25.3

436

1,188

3,469

728

21.0

2,742

-32

2,709

31.7

2022E

14,769

34.4

6,648

2,453

1,113

4,555

30.8

412

1,737

5,830

1,318

22.6

4,512

82,542

87,054

3,113.1

(INR M)

2023E

18,933

28.2

8,369

3,029

1,567

5,968

31.5

446

2,016

7,488

1,541

20.6

5,947

-93.2

2014

1,092

6,530

7,622

4.4

7,626

1,501

645

857

3,775

5,088

2,531

2,311

127

2,189

1,865

324

2,899

7,626

2015

1,202

15,422

16,624

2.8

16,627

1,635

700

935

5,578

12,907

8,973

3,007

155

673

2,794

2,341

452

10,114

16,627

2016

1,209

16,431

17,640

60.2

17,700

1,901

881

1,020

7,405

12,152

357

118

9,522

347

1,808

2,877

2,448

429

9,275

17,700

2017

1,211

18,620

19,831

52.3

19,883

1,723

1,121

602

8,371

15,188

2,162

11,280

247

1,424

4,278

3,862

416

10,910

19,883

2018

1,216

19,859

21,074

44.0

21,118

1,866

1,337

529

10,720

15,028

11,456

1,458

2,070

5,159

4,703

456

9,869

21,118

2019

1,220

22,019

23,239

46.0

23,285

2,109

1,540

569

12,857

15,984

3,400

1,052

11,472

6,125

5,628

496

9,860

23,285

2020

1,223

23,094

24,317

568.7

24,885

3,279

1,954

1,325

16,404

13,381

2,554

4,275

6,482

6,225

5,676

549

7,156

24,885

2021

1,285

44,357

45,642

449.1

46,091

3,462

2,391

1,072

21,694

30,293

6,351

23,888

6,968

6,306

662

23,325

46,091

2022E

1,285

1,29,855

1,31,140

449.1

1,31,589

3,786

2,803

983

21,694

1,18,689

90,680

27,931

9,777

9,115

662

1,08,912

1,31,589

2023E

1,285

1,33,787

1,35,072

449.1

1,35,521

4,106

3,249

857

21,694

1,24,832

95,581

29,156

11,862

11,200

662

1,12,970

1,35,521

16 November 2021

Info Edge

Financials and valuations

Ratios

Y/E March

Basic (INR)

EPS

Cash EPS

Book Value

DPS

Payout (%)

Valuation (x)

P/E

Cash P/E

EV/EBITDA

EV/Sales

Price/Book Value

Dividend Yield (%)

Profitability Ratios (%)

RoE

RoCE

RoIC

Turnover Ratios

Debtors (Days)

Fixed Asset Turnover (x)

Cash Flow Statement

Y/E March

CF from Operations

Cash for Working Capital

Net Operating CF

Net Purchase of FA

Free Cash Flow

Net Purchase of Invest.

Net Cash from Invest.

Proceeds from Equity

Proceeds from LTB/STB

Dividend Payments

Cash Flow from Fin.

Net Cash Flow

Opening Cash Bal.

Add: Net Cash

Closing Cash Bal.

2014

11.8

13.7

86.0

2.5

23.6

540.0

462.9

390.7

110.2

73.9

0.0

14.6

18.5

-116.2

5.3

2015

16.5

13.0

138.3

3.0

31.2

385.4

487.2

481.1

123.6

46.0

0.0

11.5

13.8

-112.9

6.5

2016

10.0

14.0

188.0

4.3

44.2

633.0

454.8

512.8

81.4

33.8

0.1

6.4

8.1

-338.4

7.0

2017

15.4

17.4

162.7

3.0

23.2

413.1

365.4

364.6

94.1

39.1

0.0

10.0

11.1

-210.6

13.3

2018

14.9

24.2

172.9

5.5

29.3

427.1

262.3

256.4

83.3

36.8

0.1

13.4

-91.1

17.3

2019

23.0

27.5

190.7

5.5

25.6

276.9

230.8

222.8

69.3

33.3

0.1

14.2

135.3

19.3

2020

16.7

30.4

199.5

6.1

26.7

380.0

209.1

187.2

59.2

31.9

0.1

13.8

13.9

70.5

9.6

2021

21.3

24.6

353.9

8.0

44.9

298.0

257.9

285.3

72.1

18.0

0.1

7.8

7.9

18.8

10.3

2022E

34.8

37.9

1,010.1

10.0

34.5

182.7

167.6

156.5

48.3

6.3

0.2

5.1

17.2

15.0

2023E

44.7

49.2

1,040.4

12.0

31.4

142.3

129.1

118.6

37.4

6.1

0.2

4.5

23.4

22.1

2014

1,334

-425

908

-1,024

-115

-1,015

-36

-255

-291

-398

2,709

-398

2,311

2015

1,968

1,970

-2,151

-181

-6,279

-8,430

7,497

-4

-337

7,156

696

2,311

696

3,007

2016

809

6,706

7,515

-1,620

5,895

1,320

-300

-726

-701

6,514

3,007

6,514

9,522

2017

1,653

630

2,283

-1,970

314

1,864

-106

-1

-437

-419

1,759

9,522

1,759

11,280

2018

1,901

1,166

3,067

-4,158

-1,091

-7,973

-12,132

-1

-803

-757

-9,822

11,280

-9,822

1,458

2019

2,097

860

2,956

-2,276

680

8,718

6,442

-808

-781

8,618

1,458

-405

1,053

2020

1,735

752

2,487

-9,039

-6,552

5,245

-3,794

-204

-1,176

-1,377

-2,684

1,053

3,222

4,275

2021

2,092

756

2,848

-391

2,456

3,371

2,980

18,292

-233

18,059

23,886

4,275

2,076

6,351

2022E

85,778

-1,258

84,520

-324

84,196

1,737

1,413

-50

-1,556

-1,605

84,328

6,351

84,328

90,680

2023E

4,278

842

5,121

-320

4,801

2,016

1,696

-49

-1,867

-1,915

4,901

90,680

4,901

95,580

16 November 2021

Info Edge

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

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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

16 November 2021

Info Edge

********************************************************************************************************************************

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

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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

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.

16 November 2021