MOSt
Advisor
Monthly Markets Newsletter
October 2018
Key Highlights
In This Issue
•
Market Outlook for the month
•
Investment Ideas
• Technical & Derivatives Outlook
• Commodities Market Outlook
• Model Advisory Portfolios
• PMS
Nifty witnesses biggest monthly correction in 31 months
Monsoon season ends with 9% deficit
Sectors in Focus: Consumer, IT, Pharma
Dear Investor,
Equity markets witnessed one of its worst months in the
last couple of years. The Nifty 50 index declined 6.4% after
rising by 3% in August and 6% in July. Nifty Midcap Index
Global Market
Index
Sensex
Nifty
FTSE
Dow
Nasdaq
Hang Sang
28-Sep-18
36,227
10,930
7,510
26,458
8,046
27,788
MoM (%)YoY(%)
-6.3
14.0
-6.4
1.0
1.9
-0.8
-0.4
11.7
1.9
18.1
23.9
0.8
lost a massive 14% in September, resuming its
underperformance after briefly outperforming large-caps
in August.
Indian market witnessed sharp correction in September amidst the deteriorating
macros i.e. rising crude prices, depreciating INR, tightening liquidity and ILFS debt
default. FIIs continued to remain net sellers in domestic equity, selling to the tune
of Rs9,622 crore in September while DIIs inflow was robust at Rs12,504 crore.
In September, barring BSE IT (up 1.9% MoM) all other sectoral indices closed in red
with BSE Realty (down 21%), BSE Auto (down 13%) and BSE Telecom (down 13%)
being the major losers.
Economic Pulse
Key Indicators Current Mth
Pre. Mth
Monsoon season ends with 9% deficit having received 804mm of rainfall between
1st June and 30th Sept, 2018. Further, as per the government, Kharif foodgrain output
is estimated to be 0.6% higher YoY in 2018-19 season.
Despite the meltdown in September, India has stood out in CY18 with significant
outperformance v/s other emerging markets despite the list of concerns. However,
it has happened so far without any tangible and meaningful earnings rebound, even
as expectations for earnings revival stay lofty. This has indeed expanded valuation
premium v/s both historical averages and EM peers. Elevated bond earnings yield
spread is not helping either.
Nifty trades at 20x FY19E EPS, off from the recent highs but still rich. Our preference
still remains with large-caps, given the premium of mid-caps to large-caps amid an
environment of challenging macros, potential slowdown in domestic equity flows
and a forthcoming busy political calendar. Given this, we continue to advocate a
strategy centered around earnings visibility with incremental higher allocation to
defensives like Consumer, IT and Pharma. We continue liking the overall Consumption
theme even as near-term valuations in most of these names still remain expensive.
Siddhartha Khemka
Vice President- Head - Retail Research
IIP
CPI
10 Year Yield
USD/ INR
Crude ($)
Gold (10 gms)
6.6%
3.69%
8.02%
72.49
82.72
30296
7.0%
4.17%
7.95%
71
77.42
30226
Thought for the month
Investing is a strange business. It’s the only
one we know of, where the more
expensive the product
get, the more
customers want
to buy
them.
1
 Motilal Oswal Financial Services
On This Page
MOSt
Advisor
Monthly Markets Newsletter
Equity Investment Ideas
Must Act
October 2018
Investment Ideas
√
Growth in Jewelry segment picked up in 2QFY19, bucking the previous quarter's muted
trend, led by (a) market share expansion owing to exciting new collection launches and
Titan Company
CMP*:
Target:
INR 805
INR 1,070
(b) extended diamond studded activation.
√
Watches segment, too, performed strongly in the quarter, aided by new product addi-
tions and brand-building activities.
√
Revenue growth opportunity of 20% is immense and far superior to peers. Also, the
margin trajectory appears to be on an uptrend, as revenue is being driven by SSSG. We
expect 28% EPS CAGR over FY18-20E
BUY
√
Britannia is the market leader in the biscuits category which contributes over 85% of
consolidated revenue.
√
Rapidly expanding distribution, continuing investment in R&D, rapid pace of new launches
and significant expansion of its own manufacturing indicate immense growth prospects.
√
Opportunity beyond biscuits is also substantially high. Over the years, it has forayed into
other bakery items and dairy products.
√
Continuing premiumization, significant incremental cost savings and a favourable com-
modity cost outlook mean further EBITDA margin expansion prospects are bright as well.
√
We expect revenue/PAT CAGR of 15%/22% over FY18-20E
Britannia
CMP*:
Target:
INR 5,823
INR 6,870
BUY
√
Board has accepted the request of Ms Chanda Kochhar for early retirement with imme-
ICICI Bank
CMP*:
Target:
INR 305
INR 380
diate effect and appointed Mr Sandeep Bakhshi as MD & CEO for a period of five years
until 3rd October 2023.
√
We believe this removes a major overhang on the stock and will likely help improve
market perception of transparency and governance at ICICI Bank.
√
The upcoming results announcement will provide much-needed clarity on the bank's
BUY
performance and the revised business strategy under the new leadership.
√
We expect the bank to deliver 1.1% RoA/11% RoE by FY20, which should expand
further thereafter.
√
Tech Mahindra has strong capabilities in Communications (nearly half of current revenue)
and works with most of the major global service providers.
√
The trajectory for Communications looks positive going forward given the deal flow and
wins. TECHM is confident of sequential acceleration starting 2Q, leading to growth in
FY19 over the previous year.
√
Green shoots are being witnessed in the areas of network modernization and 5G, which
will pose broad-based opportunities for the company.
√
It is also likely to result in margin expansion, as it has in previous quarters, as early invest-
ments fructify.
Tech Mahindra
CMP*:
Target:
INR 745
INR 880
BUY
Data as on 28th Sep 2018
2
 Motilal Oswal Financial Services
On This Page
MOSt
Advisor
Monthly Markets Newsletter
Technical & Derivatives Outlook
Markets & Our Recommendations
October 2018
Technical & Derivatives Outlook
Technical Outlook
√
Nifty index failed to surpass previous months high and corrected sharply towards
10850 levels. It had a volatile move as traded in a wider range of 11751 to 10850
zones with negative bias. It formed a Bearish Engulfing pattern on monthly scale
followed by Lower highs - Lower highs formation on weekly scale. It has been
facing strong resistance at upper band of the rising channel and supports are gradu-
ally shifting lower. In the last week of the Month it tested the lows of 10850 levels
which is 50% retracement of the entire up swing from 9952 to 11760 zones. It
formed a Bearish Candle on a monthly, weekly and daily scale which suggests that
bears are putting pressure in the market. Now it needs to surpass immediate resis-
tance of 11080 and 11171 levels to witness a bounce towards 11333 and 11400
zones else a failure move above 11080 and a decisive hold below 10850 (50%
retracement) may take it towards 10650 (61.80% retracement) and even towards
10500 zones. In the month of September, market volatility spiked due to depreciat-
ing INR, Crude prices and concern over the Global Trade War. Buying interest was
only seen in selective Pharma, Metal and IT stocks while selling pressure was seen in
most of the PSU, NBFC, Auto, FMCG, Mid and Small caps counters.
√
Strategy-
Strategy
Nifty has gone into bear grip and selling pressure is seen at every resis-
tance zones. Now it needs to surpass immediate crucial resistance of 11080 and
11171 levels to witness a bounce towards 11333 and 11400 zones else a failure
move above 11080 and a decisive hold below 10850 may take it towards 10650
and even towards 10500 zones.
Nifty Monthly
Banknifty Weekly
Derivative Strategy
Nifty - BEAR PUT SPREAD - Oct Series
View : Hedge / Negative to range bound move
Buy 1 lot of 10900 Put @ 169 ; Sell 1 lot of 10600 Call @ 83
Net Premium paid : 86 points,Max Risk : 86 Points
Max Reward : 214 Points; Margin Required : Rs. 95000/- Approx
Rationale:
√
√
√
√
√
It has been making lower top - lower bottom and bounce is not happening as it is finding tough to surpass any immediate hurdle zones
Spurt in VIX, shift of resistances to lower zones, lower Put Call Ratio suggests weakness could intact or bounce could be sold
Previous swing high of 11171 zones could continue to act as an immediate hurdle
Maximum Call OI is at 11500 while meaningful Call writing at 11200 suggests as supply zones
Thus, continue to be with Bear Put Spread to protect the downside or to play the negative bias of the market
3
 Motilal Oswal Financial Services
On This Page
√
MOSt
Advisor
Monthly Markets Newsletter
Commodities & Currency Outlook
Markets & Our Recommendations
October 2018
Commodities & Currency Outlook
Crude Oil
√
Oil prices are trending higher based on not only supply and demand fundamentals, but also on geopolitical uncertainty. The oil market has
been caught between tales of two markets. The first is U.S. sanctions against Iran's oil exports come into effect in November which is bullish
for prices. The other is on-going trade dispute between U.S. and China could escalate and drag down the global economy and bearish for
crude. Still markets seemed to give more importance to the bullish news.
US-China Trade War:
√
The larger effect on oil market would come from negative impact on the global economy. However, the more tariffs continue to spiral, the
more likely it is that there will be negative impact on economy and oil demand of world's two largest oil consumers. The trade war could hit
oil and gas markets in several ways. First, the back-and-forth escalation of tariffs could drag down economic growth. The first round of tariffs,
which hit $50 billion in Chinese goods, targeted a relatively narrow set of products. But the latest $200 billion in tariffs will raise the cost for
a wide array of consumer goods in U.S., which could slow economy. Second, oil and gas are likely to be specifically affected by the trade war,
which wasn't the case in previous rounds of tariffs. However, the more tariffs continue to spiral, more likely it is that there will be a negative
impact on economy and oil demand of world's two largest oil consumers. First, the back-and-forth escalation of tariffs could drag down
economic growth. The latest $200 billion in tariffs will raise cost for a wide array of consumer goods in U.S., which could slow economy.
Second, oil and gas are likely to be specifically affected by trade war, which wasn't case in previous rounds of tariffs.
Supply and Demand Picture:
√
The supply picture right now is currently looking worrisome, with Venezuela and Iran supporting to drive prices higher. U.S. shale can partially
make up difference, but the explosive growth from shale drillers is starting to slowdown, in part because of pipeline bottlenecks. This means
that there isn't the same upward pressure on WTI as there is on Brent, largely because infrastructure bottlenecks in the shale patch keep supplies
somewhat stuck within U.S.. Six-month Brent calendar spreads are trading in a backwardation of around $2 per barrel, which is comparable
to the corresponding point in Sep 2007. But hedge funds have amassed large bullish position in Brent crude, amounting to almost 470 million
barrels, betting prices will head even higher. Saudi Arabia has officially reported that it could cover for Iran's losses, even if most of Iran's
production goes offline. With output already up to about 10.4 mb/d, that leaves significantly smaller pile of spare capacity than is commonly
thought.
√
Natural gas prices surged to highest and could spike this winter if there is a severe cold snap. Gas stockpiles are expected to end at 3,330 to
3,370 billion cubic feet, lowest level for an October month-end since 2005, making market vulnerable to potential winter supply disruptions.
However, any fall in natural gas's demand estimates might drag the premium in the future.
√
At a minimum, it appears that bearish sentiment from within oil and gas industry has evaporated. The escalating U.S.-China trade war, and
weakening currencies in major Asian oil importers are all expected to cap rising oil prices as global economic and oil demand growth could
suffer if Brent crude breaks above the $85-$90 band. For next month, we expect crude to trade between WTI $80-$85 as markets remained
supported by bearish sentiments.
4
 Motilal Oswal Financial Services
On This Page
MOSt
Advisor
Monthly Markets Newsletter
MOSt Multi Cap
For Whom :
Investment Duration :
Risk Profile :
Scrip
HDFC Bank
Bajaj Auto
L&T
Hindustan Unilever
HDFC Standard LiFe
Future Consumer
KEI
L&T Fin Holdings
Subros
Cash
Total
Data as on 28th Sep 2018
MOSt Multi Cap , MOSt Smart
Build a Portfolio
October 2018
Long Term Investors
One year and above
Moderate Investors
Wtg. Sectoral Allocation
10%
10%
10%
10%
5%
5%
5%
5%
5%
35%
100%
In
: Subros
We are recommending a MULTI-CAP approach with the
following characteristics:
√
Corpus requirement of INR 10 Lakhs
√
40-50% in Large-cap and 50-60% in Mid-cap
√
15 companies to invest at maximum, 10 minimum
√
Large-cap stocks are suitable for SIP investments as well
√
Adheres to our QGLP philosophy
CMP
2006
2687
1267
1608
392
39
358
130
305
Out : Shriram Trans., Repco Home
Nifty Option Maximiser - Monthly Short Strangle Strategy
Features:
Benefit from time decay and range bound move
Execution:
Nifty 300-400 points, "Out of the Money" call and Put writing/selling at the beginning of new series
Advantage:
Benefit from Time Decay as the day passes premium declines, High probability to get the premium benefits
Disadvantage:
Unlimited risk if Nifty moves sharply on either side.
Margin Requirement:
Particular
Nifty lot size
Margin Required (Span + Exposure)
to execute 1 pair of short strangle strategy
Risk:
Unlimited risk, need to follow strict stop loss
Reward:
40 to 60 points based on the premium at the beginning of series as per the Time value and Volatility
Particular
Amount Required for strategy
Premium received on average
Nifty lot size
Gain
ROI
: Amount
: Rs. 95,000
: 40 to 60 points
: 75
: 50*75 =Rs. 3,750 (Taking the premium of 50 points)
: (3,750/95,000) = 3.9%
: Values
: 75
: Rs. 95,000
5
 Motilal Oswal Financial Services
On This Page
MOSt
Advisor
Monthly Markets Newsletter
MOSt PMS
October 2018
MOSt PMS
Performance since inception
√
Large Cap PMS:- VALUE STRATEGY- An amount of 1 cr. Invested in March 2003 is worth INR 24.37 cr (compounded return of 22.83%)
√
Multi Cap PMS:- NTDOP STRATEGY- Amount of 1 cr. Invested in December 2007 is worth INR 5.64 cr (compounded return of 17.33%)
√
Multi Cap PMS:- ASK IEP STRATEGY- Amount of 1 cr. Invested in January 2010 is worth INR 4.63 cr (compounded return of 19.30%)
√
Mid & Small Cap PMS:- MOAMC IOP- Amount of 1 cr. Invested in Feb 2010 is worth INR 2.75 cr (compounded return of 12.45%)
Latest Performance of all OUR PMS (Portfolio Management Services) strategies. (As on 30th September, 2018)
Performance as on 30th September, 2018
6
 Motilal Oswal Financial Services
On This Page
MOSt
Advisor
Monthly Markets Newsletter
New Fund- ASK India 2025 Equity Fund AIF
October 2018
New Fund- ASK India 2025 Equity Fund AIF
(New product offering)
Other Costs: Above charges are excluding all applicable taxes and statutory levies, which is be applicable. Operating Expenses at actuals
subject to threshold of 0.25% p.a.
*First performance fees will be charged at the end of 3 years from Final closing and then annually thereafter.
7
 Motilal Oswal Financial Services
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 Securities Ltd. (MOSL)* is a SEBI Registered Research Analyst having registration no. INH000000412. MOSL, 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. MOSL is a subsidiary company of Motilal Oswal Financial Service Ltd. (MOFSL). MOFSL is a
listed public company, the details in respect of which are available on www.motilaloswal.com. 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) 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 Securities Limited are available on the website
at http://onlinereports.motilaloswal.com/Dormant/documents/Associate%20Details.pdf
MOSL, it's associates, Research Analyst or their relative may have any financial interest in the subject company. MOSL and/or its associates and/or Research Analyst may have beneficial ownership of 1% or more securities
in the subject company at the end of the month immediately preceding the date of publication of the Research Report. MOSL 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 MOSL even though there might exist an inherent conflict of interest in some of the
stocks mentioned in the research report. Research Analyst may have served as director/officer, etc. in the subject company in the last 12 month period. MOSL and/or its associates may have received any compensation
from the subject company in the past 12 months.
In the last 12 months period ending on the last day of the month immediately preceding the date of publication of this research report, MOSL or any of its associates may have:
a) managed or co-managed public offering of securities from subject company of this research report,
b) received compensation for investment banking or merchant banking or brokerage services from subject company of this research report,
c) received compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company of this research report.
d) Subject Company may have been a client of MOSL or its associates during twelve months preceding the date of distribution of the research report.
MOSL and it's associates have not received any compensation or other benefits from the subject company or third party in connection with the research report. To enhance transparency, MOSL has incorporated a Disclosure
of Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the report. MOSL 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 MOSL 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.
Terms & Conditions:
This report has been prepared by MOSL 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 MOSL. 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. MOSL will not treat recipients as customers by virtue of their receiving this report.
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.
Disclosure of Interest Statement
Analyst ownership of 1% or more securities
No
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 MOSL or its associates maintains arm's length distance with Research Team as all the activities are segregated from MOSL 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 MOSL & 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 Securities Limited (MOSL) 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
MOSL 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 MOSL, 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., MOSL 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
Motilal Oswal Capital Markets Singapore Pte Limited is acting as an exempt financial advisor under section 23(1)(f) of the Financial Advisers Act(FAA) read with regulation 17(1)(d) of the Financial Advisors Regulations
and is a subsidiary of Motilal Oswal Securities Limited in India. This research is distributed in Singapore by Motilal Oswal Capital Markets Singapore Pte Limited and it is only directed in Singapore to accredited investors,
as defined in the Financial Advisers Regulations and the Securities and Futures Act (Chapter 289), as amended from time to time. In respect of any matter arising from or in connection with the research you could contact
the following representatives of Motilal Oswal Capital Markets Singapore Pte Limited:
Disclaimer:
This report is intended for distribution to Retail Investors.
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. MOSL, 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 MOSL. 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 MOSL 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 MOSL or any of its affiliates or employees from, any and all
responsibility/liability arising from such misuse and agrees not to hold MOSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOSL 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.: 022-3980 4263; www.motilaloswal.com. Correspondence Address: Palm Spring
Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 3080 1000. Compliance Officer: Neeraj Agarwal, Email Id: na@motilaloswal.com, Contact No.:022-38281085.
Registration details of group entities.: Motilal Oswal Securities Ltd. (MOSL): INZ000158836 (BSE/NSE/MCX/NCDEX); CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412 . AMFI: ARN 17397.
Investment Adviser: INA000007100. IRDA Corporate Agent - CA0541. Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670) offers PMS and Mutual Funds products. Motilal
Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) offers wealth management solutions. *Motilal Oswal Securities Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Insurance,
Bond, NCDs and IPO products. * Motilal Oswal Commodities Broker Pvt. Ltd. offers Commodities Products. * Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. offers Real Estate products. * Motilal Oswal Private
Equity Investment Advisors Pvt. Ltd. offers Private Equity products
* 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.
The existing registration no(s) of MOSL would be used until receipt of new MOFSL registration numbers.