24 October 2017
2QFY18 Results Update | Sector: Financials
HDFC Bank
Buy
BSE SENSEX
32,607
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, INRm
Free float (%)
S&P CNX
10,208
HDFCB IN
Robust PPoP growth; operating leverage will continue to aid earnings
2,562.5
HDFC Bank (HDFCB) reported strong 30% YoY growth in PPoP (~4% beat), led
4,779 / 73.5
by steady revenue growth and controlled opex. However, higher provisions
1877 / 1159
(HDFCB made contingent provisions toward one large account that
0/12/32
underwent 5:25 restructuring in Feb-16) resulted in 20% YoY growth in PAT.
2821
Loans grew 22% YoY/4% QoQ to INR6.05t. Incremental growth in the quarter
78.9
CMP: INR1,865 TP: INR2,150(+15%)
Financials & Valuations (INR b)
Y/E MARCH
2018E 2019E
NII
407.0 481.0
OP
329.3 395.2
NP
176.1 217.0
NIM (%)
4.6
4.5
EPS (INR)
68.7
84.7
EPS Gr. (%)
21.0
23.2
BV/Sh. (INR)
381.4 449.8
ABV/Sh. (INR)
357.3 421.8
RoE (%)
18.8
20.4
RoA (%)
1.9
1.9
Valuations
P/E(X)
27.1
22.0
P/BV (X)
4.9
4.1
P/ABV (X)
5.2
4.4
Div. Yield (%)
0.8
0.9
2020E
580.0
485.2
270.1
4.5
105.4
24.5
537.2
503.7
21.4
2.0
17.7
3.5
3.7
1.0
was driven by retail loans (+29% YoY/7% QoQ), resulting in an increase in its
loan mix share to 55%. Business banking, personal loans and credit card
continue to report strong growth within the retail segment.
Fee income growth stood at 24% YoY, which coupled with strong FX income
and treasury gains of INR3.84b, resulted in 24% YoY growth in other income.
CASA deposits held flat on a sequential basis, while term deposits grew 4.7%
QoQ. CASA ratio thus moderated 110bp QoQ to 42.9% (48% in 4QFY17 –
after demonetization).
Asset quality remained largely stable; however, the bank made contingent
provisions of INR4b toward an account that underwent restructuring in Feb-
16 and remains standard in the books. Provisioning coverage ratio thus
improved 119bp QoQ to 66.3%.
Valuation and view:
HDFCB has been consistently gaining market share across
most products in the retail segment (personal loans, business banking, credit
cards and auto loans), and appears well poised to maintain this traction.
Operating expenses have been under control and resulted in a consistent decline
in the C/I ratio to ~42%. With Tier-1 capital of 13.3%, strong
sourcing/distribution capability and significant digitization initiatives, the bank is
well placed to benefit from the expected pick-up in the economic growth cycle.
We arrive at an SOTP based valuation of INR2,150 for the bank (4.4x Sept-19E
BV for the bank at INR2,050 compared to our earlier valuation of INR1.900 for
the standalone bank at 4x Jun-19E BV, and INR100 for subsidiaries) and
maintain Buy.
Research Analyst: Alpesh Mehta
(Alpesh.Mehta@MotilalOswal.com); +91 22 3982 5415
| Piran Engineer
(Piran.Engineer@MotilalOswal.com); +91 22 3980 4393
Nitin Aggarwal
(Nitin.Aggarwal@MotilalOswal.com); +91 22 3982 5540
| Anirvan Sarkar
(Anirvan.Sarkar@MotilalOswal.com); +91 22 3982 5505
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.

HDFC Bank
Exhibit 1: Quarterly performance: In line with est.
Y/E March
Interest Income
Interest Expense
Net Interest Income
% Change (Y-o-Y)
Other Income
Net Income
Operating Expenses
Operating Profit
% Change (Y-o-Y)
Other Provisions
Profit before Tax
Tax Provisions
Net Profit
% Change (Y-o-Y)
2QFY18A
1,96,703
99,182
97,521
22
36,059
1,33,580
55,401
78,179
30
14,762
63,417
21,907
41,510
20
2QFY18E
1,96,034
98,373
97,661
22
33,840
1,31,502
55,942
75,559
25
11,000
64,559
22,273
42,286
22
V/S our Est Comments
0
1
0
7
2
-1
3
34
-2
-2
-2
Stronger than expected forex income
in line
INR4b of contingent provisions led to miss
In line; higher operating profits offset by miss on provisions
Source: MOSL, Company
Growth was led by retail
loans, which increased 26%
YoY, driven by business
banking and personal loans
Retail loan growth remains healthy, share of retail picks up
Loan book grew 4% QoQ and 22% YoY to INR6.05t. Deposits grew 2.7%/16.5%
QoQ/YoY to INR6.9t. CD ratio increased to 88 from 86.5% in 1QFY18
Incremental growth in the quarter was driven by retail loans (retail loan share at
68.3% of book compared to 66.1% in 1QFY18). In retail loans (+7.6% QoQ and
25.7% YoY), the main drivers were business banking and personal loans (up
9.5%/27.9% QoQ and 9.4%/36.2% YoY).
Corporate book growth was relatively muted at 15.7% YoY, with a 2.7% QoQ
decline
Exhibit 2: Share of unsecured loans continued to tick up
13
14
14
15
15
11
11
11
11
11
11
12
11
12
12
13
12
13
Source: MOSL, Company
24% YoY CASA growth
Reported NIM shrinks 10bp QoQ; CASA ratio moderates to 42.9%
NIM (reported) declined 10bp sequentially from a high of 4.4% to 4.3% but
increased 10bp YoY.
CASA deposits were flat QoQ but grew 23.6% YoY driven by 23.6% YoY growth in
each of SA and CA. CASA ratio stood at 42.9%, marginally down from 44% in
1QFY18
24 October 2017
2

HDFC Bank
Strong fee income led to
24% YoY increase in other
income
Fee income growth picks up
Fee income recorded robust growth at 24% YoY to INR26.1b, (30% YoY in the
prior quarter). Overall fee income / average assets stayed stable at 1.2%. Forex
income recorded unusually strong growth of 30% YoY (5.6% YoY decline in
1QFY18)
Trading gains came in strong at INR 3.6b, up 25.5% YoY.
Exhibit 3: Fee income/ average assets (%) remained stable QoQ
Fee Inc.(INR b)
1.3 1.3
1.4
Fee Inc. as % of Avg. Assets
1.3 1.1 1.2 1.4 1.3
1.1 1.2 1.2 1.2 1.1 1.1 1.1 1.2 1.2 1.2
Source: MOSL, Company
Operating expenses well
under control with a stable
cost to core income ratio
Operating expenses well under control; Asset quality stable
Overall opex growth continued to moderate at 13.8% YoY (3.2% QoQ), led by
strong control in employee expenses (+3.5% QoQ and YoY).
Total branch count stood at 4.729 branches.
Cost-to-core income ratio stayed stable QoQ at ~44%.
Asset quality ratios were stable with GNPA/NNPA of 1.26%/0.40%. The bank
provided for INR4b of contingent provisions towards a flexible restructured
account, taking up PCR to 66.3%
2QFY18 Conference Call Highlights
P&L related
The bank made INR7b of provisions for the 5:25 account (~INR4b through P&L
and they used INR3b from floating provisions).
Management guided to revenue growth outpacing expenses growth over the
next 2-3 years, leading to a steady decline in the CI ratio.
The bank experienced 10-15bp reduction in yields due to increased competition
in retail, which was partly offset by cost of funds reduction.
Risk weights in credit card/PL portfolio are comparable to those for auto loans.
Increase in CC/PL is not contributing to increase in RWA/total assets. Market risk
(not credit risk) has increased due to investments.
Competition has spread across categories of retail (CC/PL/auto/CV) and SME
from just auto earlier.
Overseas advances stand at INR210b.
Business banking ticket size is in single-digit crores.
Both disbursements and run-offs are high in segments where dealer
dependence is higher (CV, credit cards etc.)
3
B/S related
24 October 2017

HDFC Bank
Asset quality
They are yet to hear from regulator on final asset classification on the 5:25
account; meanwhile, have made contingent provisions.
Crop loan repayments are timed with crop cycles. The bank has seen
improvement in waivers, but not meaningful.
Management is comfortable with asset quality in credit card and PL, yields price
in excess credit costs.
The bank used INR3b of floating provisions during the quarter, and has another
INR10b of floating provisions.
Movement in NPA: Slippages – INR24.73b, recoveries and upgrades – INR12.5b,
write-offs – INR7.61b.
Government business is a growth area for them in terms of liabilities.
More and more SMEs are joining organized financing with GST, which opens up
a wider market for banks.
Others
Valuation and view
Buy with a target price of
INR2,150 (SOTP based)
Structural drivers in place with (1) CASA ratio of ~43%, (2) opportunities’ for the
significant market share gains (25% of incremental market share in FY17), (3)
improving operating efficiency led by digitalization initiatives, (4) expected
traction in income due to strong expansion in branch network, and (5) best-in-
class asset quality.
Post demon strong improvement in retail loan growth is impressive especially
when the bank was focused on cutting flab from the system. Retail loan growth
is seeing a strong revival with the contribution from high ROE retail products like
unsecured personal loans, LAS and Credit cards going up. Despite the moderate
growth in underlying assets like Auto, CV and CE loans – HDFCB is seeing the
strong loan growth-Indicating a market share gain.
Sharp pick in corporate loans is impressive. Helped by strong benefit on the cost
of funds bank has been aggressive in gaining market share in the corporate
loans. We expect the trend to continue considering the large part of the
competition is struggling with its own issues like capitalization, asset quality etc.
We have seen some moderation in the investments in branches and ATMs and
calibration in workforce. In our view, this is largely to improve the productivity
from the existing investments and cutting the flab in the system. Core revenue
growth is expected to be healthy at 16%+. This along with improving operating
efficiencies which will help overall earnings growth to 18%+ in our view.
Despite pricing pressure, NIMs moderation is expected to be limited due to a)
high CASA ratio, b) benefit of falling rate cycle will occur due to high share of
fixed rate retail loans (~68% of book) and c) high-yielding retail loans
contribution within retail to rise.
Over the last 12 years, HDFCB’s market share has increased significantly in (1)
retail loans, (2) low-cost deposits and (3) profitability, indicating the strength of
its franchisee. Strong fundamentals and near-nil stress loans would enable the
bank to gain market share. Further, continued strong investment in people and
branches indicating management positive outlook on business. RoEs are
24 October 2017
4

HDFC Bank
expected to be the best amongst private banks at ~18-21%. The stock trades at
FY19 PBV/PE of 4.1x/22.0x.
We value bank at INR2,150 based on SOTP model.
We roll forward our target
price to Sept 2019 from Jun 2019 earlier. We arrive at an SOTP based valuation
for the bank with INR2,050 for the bank (4.4x Sept 19 BV) and we value the
subsidiaries at INR100, leading to a TP of INR2,150 for the bank and maintain
Buy.
Exhibit 4: We largely maintain our earnings estimates
INR b
Net Interest Income
Other Income
Total Income
Operating Expenses
Operating Profits
Provisions
PBT
Tax
PAT
Margins (%)
Credit Cost (%)
RoA (%)
RoE (%)
EPS
BV
ABV
Old Estimates
FY18 FY19 FY20
400.9 479.4 576.0
146.7 170.3 194.0
547.5 649.7 770.0
226.0 260.7 303.2
321.6 389.0 466.8
54.7
66.0
77.3
266.8 323.0 389.5
92.1 111.4 134.4
174.8 211.6 255.1
4.66
4.61
4.55
0.82
0.80
0.75
1.8
1.9
1.8
18.8
19.7
20.3
68
83
100
388
451
528
382
448
523
New Estimates
FY18 FY19 FY20
407.0 481.0 580.0
147.6 175.6 207.2
554.6 656.6 787.2
225.2 261.5 302.0
329.3 395.2 485.2
60.5
63.9
72.8
268.8 331.2 412.4
92.7 114.3 142.3
176.1 217.0 270.1
4.57
4.52
4.52
0.95
0.85
0.82
1.9
1.9
2.0
18.8
20.4
21.4
69
85
105
381
450
537
357
422
504
% Change
FY18 FY19 FY20
1.5
0.3
0.7
0.6
3.1
6.8
1.3
1.1
2.2
-0.3
0.3
-0.4
2.4
1.6
3.9
10.5 -3.2
-5.8
0.8
2.6
5.9
0.8
2.6
5.9
0.8
2.6
5.9
0
1
3
2
-2
0
2
-6
-6
Source: MOSL, Company
Exhibit 5: One year forward P/BV
3.8
P/B (x)
Min (x)
Avg (x)
+1SD
Max (x)
-1SD
Exhibit 6: One year forward P/E
35.0
P/E (x)
Min (x)
Avg (x)
+1SD
Max (x)
-1SD
3.3
2.7
2.2
1.8
0.9
2.8
2.9
30.7
21.1
16.7
25.0
21.8
12.3
8.0
1.8
15.0
0.8
5.0
Source: MOSL, Company
Source: MOSL, Company
24 October 2017
5

HDFC Bank
Exhibit 7: DuPont Analysis: Risk adjusted NIMs continue to improve; RoAs close to decadal high (%)
Y/E March
Net Interest Income
Core Fee Income
Trading and others
Non Interest income
Total Income
Operating Expenses
Employee cost
Others
Operating Profits
Core operating Profits
Provisions
PBT
Tax
RoA
Leverage (x)
RoE
FY12
4.19
1.37
0.51
1.88
5.56
3.02
1.11
1.91
3.05
2.54
0.61
2.44
0.76
1.68
11.1
18.7
FY13
4.28
1.34
0.51
1.86
5.63
3.04
1.07
1.97
3.10
2.58
0.45
2.64
0.82
1.82
11.2
20.3
FY14
4.14
1.30
0.48
1.78
5.44
2.70
0.94
1.76
3.22
2.74
0.36
2.86
0.96
1.90
11.2
21.3
FY15
4.14
1.23
0.43
1.66
5.37
2.59
0.88
1.71
3.22
2.79
0.38
2.83
0.94
1.89
10.3
19.4
FY16
4.15
1.20
0.42
1.62
5.34
2.55
0.86
1.69
3.21
2.79
0.41
2.80
0.95
1.85
9.9
18.3
FY17
4.13
1.10
0.43
1.53
5.23
2.46
0.81
1.65
3.21
2.77
0.45
2.76
0.95
1.81
10.1
18.3
FY18E
4.31
1.20
0.36
1.56
5.87
2.38
0.74
1.65
3.49
3.13
0.64
2.85
0.98
1.86
10.3
19.2
FY19E
4.26
1.23
0.33
1.56
5.82
2.32
0.70
1.61
3.50
3.17
0.57
2.94
1.01
1.92
10.6
20.4
FY20E
4.26
1.19
0.33
1.52
5.78
2.22
0.66
1.55
3.56
3.23
0.53
3.03
1.04
1.98
10.8
21.4
Source: MOSL, Company
24 October 2017
6

HDFC Bank
Story in Charts
Exhibit 8: Loans grew 22% YoY (4% QoQ)
Loans (INR b)
21
16
23 26
22 17 21 22
21
YoY Growth (%)
28 26 27 23
18 13 19 23 22
Exhibit 9: Deposits registered 16% YoY growth
Deposits (INR b)
23 24 23 25 19 23
22 20 18
14
30 30 27
YoY Gr (%)
21 19 17 21 18 17 16
Source: MOSL, Company
Source: MOSL, Company
Exhibit 10: Healthy traction in vehicle loans
Vehicle Loans (INR b)
17
19 19
YoY Growth (%)
25 26 22
22 22 19 20
17
Exhibit 11: CV/CE loans grew 22% YoY
CV and CE loans (INR b)
YoY Growth (%)
9 9
2 -1
5 7
13
Source: MOSL, Company
Source: MOSL, Company
Exhibit 12: Share of retail loans (based on internal
classification) ticked lower to 68.3% compared to 66.1% in
4QFY17
% of
2Q
loans FY18
Auto
13.1
790
PL
10.1
613
LAS
0.5
32
2Wheerlers
1.4
85
CV and CE
6.7
404
CC
5.1
308
Bus. Banking
16.0
965
Home loans
6.6
400
Gold loans
0.9
53
Kissan gold cards
5.2
317
Others
2.7
165
Retail loans
68.3 4132
Corp & International 31.7 1916
Total loans
100.0 6049
2Q
YoY
FY17 Gr (%)
644 22.6
450 36.2
21
56.9
71
19.9
336 20.3
213 44.5
754 27.9
336 19.2
51
3.1
261 21.4
150
9.7
3288 25.7
1657 15.7
4944 22.3
1Q
FY18
737
561
30
77
385
291
881
388
51
281
159
3841
1969
5810
QoQ
Gr
7.1
9.4
8.9
10.5
5.0
5.9
9.5
3.2
2.4
12.8
3.7
7.6
-2.7
4.1
Exhibit 13: NIMs declined 10bp QoQ to 4.3%
4.6
4.3
4.4 4.4
4.2
4.5
4.4 4.4
4.3
4.3 4.3
4.4
4.2
4.1
4.3
4.4
4.3
4.2
Source: MOSL, Company
Source: MOSL, Company
24 October 2017
7

HDFC Bank
Exhibit 14: Quarterly fees/assets (%) remained stable
Fee Inc.(INR b)
1.3
1.3
1.4 1.3
1.1 1.2
1.4 1.3
Fee Inc. as % of Avg. Assets
1.1 1.2 1.2 1.2 1.1 1.1 1.1 1.2 1.2 1.2
Exhibit 15: GNPA was stable to 1.26%
Gross NPAs (%)
Net NPAs (%)
Source: MOSL, Company
Source: MOSL, Company
Exhibit 16: Added 2 branches during the quarter
800
600
400
200
0
274
Branch Addition (4 qtr rolling)
Exhibit 17: CASA ratio declined to 43%
CASA Deposits (INR b)
CASA Ratio (%)
627
Source: MOSL, Company
Source: MOSL, Company
24 October 2017
8

HDFC Bank
Exhibit 18: Quarterly Snapshot
1Q
Profit and Loss (INR m)
Net Interest Income
Other Income
Trading profits
Exchange Profits
Others (Ex non core)
Total Income
Operating Expenses
Employee
Others
Operating Profits
Provisions
PBT
Taxes
PAT
Asset Quality
GNPA
NNPA
GNPA (%)
NNPA (%)
PCR (Calculated, %)
Slippage (%)
Ratios (%)
Fees to Total Income
Cost to Core Income
Tax Rate
CASA (Reported)
Loan/Deposit
RoA
RoE
Margins (%) - Calculated
Yield on loans
Yield On Investments
Yield on funds
Cost of funds
Spreads
Margins
Margins (%) - Reported
63,888
24,619
1,259
3,480
19,880
88,507
40,008
13,590
26,418
48,499
7,280
41,219
14,262
26,957
38,522
10,277
1.0
0.3
73.3
1.8
22.5
45.9
34.6
39.6
78.9
1.8
17.0
11.2
8.1
10.3
6.0
4.3
4.7
4.3
FY16
2Q
3Q
66,809
25,518
1,624
3,196
20,698
92,327
41,898
14,140
27,758
50,429
6,813
43,616
14,922
28,695
38,278
10,377
0.9
0.3
72.9
1.6
22.4
46.2
34.2
40.0
82.6
1.8
17.2
10.9
7.9
10.1
5.9
4.2
4.6
4.2
70,685
28,722
3,279
2,774
22,669
99,407
42,048
14,313
27,736
57,359
6,539
50,820
17,251
33,568
42,552
12,606
1.0
0.3
70.4
2.0
22.8
43.7
33.9
40.0
83.3
2.0
19.1
10.7
8.3
10.1
5.8
4.3
4.6
4.3
FY17
4Q
74,533
28,659
1,155
2,828
24,676
1,03,192
45,843
14,980
30,863
57,349
6,625
50,725
16,982
33,742
43,928
13,204
0.9
0.3
69.9
1.4
23.9
44.9
33.5
43.0
85.0
1.9
18.7
10.6
8.8
10.1
5.8
4.4
4.7
4.3
FY18
3Q
4Q
1Q
2Q
1Q
2Q
Variation (%)
QoQ YoY
4
3
7
29
-1
4
3
4
3
4
-5
6
6
7
6
3
2
-4
119
22
24
26
30
23
23
14
4
19
30
97
20
20
20
52
74
24
10
-434
77,814
79,936
83,091
90,551
93,707
97,521
28,066
29,010
31,427
34,463
35,167
36,059
2,769
2,835
3,986
1,804
3,314
3,559
3,145
2,950
2,972
3,567
2,968
3,840
22,152
23,225
24,469
29,092
28,885
28,660
1,05,881 1,08,945 1,14,518 1,25,014 1,28,874 1,33,580
47,689
48,700
48,425
52,220
53,675
55,401
15,852
16,572
16,886
15,527
16,575
17,158
31,837
32,128
31,539
36,693
37,100
38,243
58,192
60,246
66,093
72,794
75,199
78,179
8,667
7,490
7,158
12,618
15,588
14,762
49,525
52,756
58,935
60,176
59,612
63,417
17,136
18,202
20,281
20,275
20,673
21,907
32,389
34,553
38,653
39,901
38,938
41,510
49,209
14,934
1.0
0.3
69.7
2.1
20.9
46.2
34.6
39.9
82.0
1.8
17.4
10.7
8.2
10.0
5.6
4.3
4.7
4.4
50,690
14,889
1.0
0.3
70.6
1.4
21.3
45.9
34.5
40.0
83.6
1.8
17.6
10.7
7.4
9.7
5.5
4.2
4.5
4.2
52,323
15,643
1.1
0.3
70.1
1.8
21.4
43.8
34.4
45.0
78.0
1.9
18.7
10.7
7.3
9.7
5.4
4.3
4.6
4.1
58,857
18,440
1.1
0.3
68.7
1.5
23.3
42.4
33.7
48.0
86.2
1.9
18.3
10.3
7.6
9.6
5.1
4.5
4.8
4.3
72,429
25,282
1.2
0.4
65.1
2.6
22.4
42.7
34.7
44.0
86.5
1.8
17.0
10.2
7.2
9.3
5.0
4.3
4.7
4.4
77,028
25,968
1.3
0.4
66.3
2.0
21.5
42.6
34.5
42.9
87.7
1.9
17.5
10.6
7.0
0.0
5.3
-5.3
4.8
4.3
39
-18
-935
22
-956
-26
43
-10
-35
-970
-28
-942
-11
63
Source: MOSL, Company
24 October 2017
9

HDFC Bank
Exhibit 19: Valuation metrics
66
Rating
ICICIBC*
HDFCB
AXSB
KMB*
YES
IIB
IDFC Bk
FB
DCBB
JKBK
SIB
Equitas
RBL
Private Aggregate
SBIN (cons)*
PNB
BOI
BOB
CBK
UNBK
OBC
INBK
Public Aggregate
Banks Aggregate
HDFC*
LICHF
IHFL
PNBHF
GRHF
REPCO
DEWH
Housing Finance
SHTF
MMFS
BAF
CIFC
SCUF
LTFH
MUTH
CAFL
SKSM
Asset Finance
FY19E
Buy
Buy
Neutral
Buy
Buy
Buy
Neutral
Buy
Neutral
Neutral
Buy
Buy
Buy
Buy
Buy
Neutral
Buy
Neutral
Neutral
Neutral
Buy
CMP
(INR)
266
1,865
452
1,068
348
1,665
57
125
181
74
32
153
537
255
138
140
143
317
131
119
270
Mcap
(USDb)
25.9
73.4
16.6
29.9
12.4
15.6
2.9
3.3
0.9
0.6
0.7
0.8
3.0
32.6
4.3
2.2
4.9
2.6
1.3
0.6
1.9
EPS (INR)
FY18E FY19E
14.5
16.6
68.2
82.6
18.1
29.9
32.4
41.0
18.5
22.9
60.9
78.6
2.8
3.2
5.5
6.6
8.5
10.5
3.9
8.3
1.9
3.8
1.7
6.1
17.2
22.5
14.6
5.8
-11.2
9.5
30.1
9.0
17.1
34.4
26.8
11.0
6.6
20.8
47.0
19.1
21.4
38.3
P/E (x)
FY18E FY19E
12.3
9.8
27.3
22.6
24.9
15.1
32.9
26.0
18.9
15.2
27.3
21.2
20.5
17.7
22.5
18.7
21.3
17.3
19.1
9.0
17.3
8.5
89.8
25.2
31.2
23.9
15.3
23.6
-12.5
15.0
10.5
14.5
7.0
7.8
8.2
12.5
21.3
6.9
6.7
6.9
5.6
7.0
P/BV (x)
FY18E FY19E
1.22
1.03
4.80
4.13
1.84
1.66
4.60
3.92
3.21
2.75
4.31
3.67
1.26
1.19
1.96
1.80
2.16
1.93
0.66
0.63
1.18
1.07
2.26
2.09
3.36
3.01
0.98
0.75
0.65
0.90
0.64
0.43
0.31
0.82
0.88
0.72
0.65
0.82
0.59
0.41
0.29
0.76
RoA (%)
FY18E FY19E
1.14
1.15
1.84
1.85
0.67
0.97
1.84
1.99
1.78
1.80
1.82
1.89
0.74
0.71
0.81
0.86
0.98
1.00
0.23
0.44
0.42
0.75
0.58
1.65
1.28
1.28
0.36
0.17
-0.19
0.31
0.29
0.14
0.22
0.73
0.60
0.30
0.10
0.61
0.41
0.27
0.26
0.72
RoE (%)
FY18E FY19E
8.6
9.3
18.8
19.7
7.6
11.6
15.0
16.3
18.3
19.5
16.9
19.0
6.3
6.9
9.6
10.0
11.5
11.8
3.5
7.2
6.7
12.6
2.5
8.6
13.0
13.3
7.0
3.2
-5.2
6.1
6.2
3.0
4.6
10.9
11.4
5.9
3.0
12.4
9.1
6.1
5.4
11.2
Buy
Neutral
Buy
Buy
Neutral
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Neutral
1,723
634
1,343
1,446
499
649
598
1,118
419
1,826
1,179
2,120
211
498
743
992
41.7
5.1
8.7
3.7
2.8
0.6
2.8
3.9
3.7
16.2
2.7
2.2
5.8
3.1
1.1
2.2
39.9
41.6
83.6
48.1
9.9
33.7
37.6
80.0
13.9
45.7
56.0
118.3
6.8
38.7
32.8
29.9
45.4
48.9
105.1
65.1
12.0
38.4
46.0
102.4
17.8
63.7
68.1
155.3
10.1
44.4
42.4
54.9
24.7
15.2
16.1
30.1
50.6
19.3
15.9
14.0
30.2
39.9
21.1
17.9
30.8
12.9
22.6
33.2
19.2
12.9
12.8
22.2
41.4
16.9
13.0
10.9
23.6
28.7
17.3
13.6
20.8
11.2
17.5
18.0
4.31
2.58
4.19
3.93
15.08
3.05
2.12
2.00
3.49
6.41
3.63
2.47
4.17
2.59
2.82
4.54
3.05
2.23
3.69
3.45
12.37
2.62
1.87
1.73
3.21
5.38
3.07
2.14
3.57
2.20
2.46
3.65
1.79
1.44
3.16
1.52
2.40
2.18
1.23
2.67
1.73
3.45
2.85
3.34
1.61
4.82
1.74
3.24
1.81
1.51
3.09
1.48
2.40
2.14
1.28
3.06
1.90
3.55
2.94
3.84
2.09
4.94
1.80
4.03
18.6
18.2
27.6
13.8
32.8
17.1
14.1
15.0
12.0
20.2
18.6
14.6
14.7
21.8
13.2
15.1
17.8
18.5
30.7
16.6
32.8
16.7
15.3
16.9
14.2
20.4
19.2
16.8
18.5
21.2
15.0
22.4
Source: MOSL, Company
24 October 2017
10

HDFC Bank
Financials and Valuation
Income Statement
Y/E March
Interest Income
Interest Expense
Net Interest Income
Change (%)
Non Interest Income
Net Income
Change (%)
Operating Expenses
Pre Provision Profits
Change (%)
Provisions (excl tax)
PBT
Tax
Tax Rate (%)
PAT
Change (%)
Equity Dividend (Incl tax)
Core PPP*
Change (%)
*Core PPP is (NII+Fee income-Opex)
2013
3,50,649
1,92,538
1,58,111
22.7
68,526
2,26,637
21.4
1,12,361
1,14,276
21.7
16,770
97,506
30,249
31.0
67,257
30.2
15,360
97,607
22.9
2014
4,11,355
2,26,529
1,84,826
16.9
79,196
2,64,023
16.5
1,20,422
1,43,601
25.7
15,880
1,27,721
42,937
33.6
84,784
26.1
19,275
1,22,227
25.2
2015
4,84,699
2,60,742
2,23,957
21.2
89,964
3,13,920
18.9
1,39,875
1,74,045
21.2
20,758
1,53,287
51,128
33.4
1,02,159
20.5
24,142
1,50,348
23.0
2016
6,02,214
3,26,299
2,75,915
23.2
1,07,517
3,83,432
22.1
1,69,797
2,13,635
22.7
27,256
1,86,379
63,417
34.0
1,22,962
20.4
28,790
1,84,470
22.7
2017
6,93,060
3,61,667
3,31,392
20.1
1,22,965
4,54,357
18.5
1,97,033
2,57,324
20.4
35,933
2,21,391
75,894
34.3
1,45,496
18.3
33,927
2,20,859
19.7
2018E
8,12,534
4,05,534
4,07,000
22.8
1,47,558
5,54,558
22.1
2,25,230
3,29,328
28.0
60,500
2,68,828
92,746
34.5
1,76,082
21.0
40,722
3,09,587
40.2
2019E
9,48,052
4,67,034
4,81,018
18.2
1,75,594
6,56,612
18.4
2,61,462
3,95,151
20.0
63,906
3,31,245
1,14,279
34.5
2,16,965
23.2
49,293
3,71,601
20.0
(INR Million)
2020E
11,36,060
5,56,084
5,79,976
20.6
2,07,201
7,87,177
19.9
3,02,021
4,85,156
22.8
72,798
4,12,358
1,42,264
34.5
2,70,095
24.5
59,450
4,57,108
23.0
Balance Sheet
Y/E March
Equity Share Capital
Reserves & Surplus
Net Worth
Deposits
Change (%)
of which CASA Dep
Change (%)
Borrowings
Other Liabilities & Prov.
Total Liabilities
Current Assets
Investments
Change (%)
Loans
Change (%)
Fixed Assets
Other Assets
Total Assets
Asset Quality
GNPA (INR m)
NNPA (INR m)
GNPA Ratio
NNPA Ratio
Slippage Ratio
Credit Cost
PCR (Excl Tech. write off)
E: MOSL Estimates
2013
4,759
3,57,383
3,62,141
29,62,470
20.1
14,05,215
17.7
3,30,066
3,48,642
40,03,319
2,72,802
11,16,136
14.5
23,97,206
22.7
27,031
1,90,144
40,03,319
23,346
4,690
1.0
0.2
1.61
0.57
79.9
2014
4,798
4,29,988
4,34,786
36,73,375
24.0
16,46,214
17.2
3,94,390
4,13,444
49,15,995
3,95,836
12,09,511
8.4
30,30,003
26.4
29,399
2,51,246
49,15,995
29,893
8,200
1.0
0.3
1.93
0.60
72.6
2015
5,013
6,15,081
6,20,094
45,07,956
22.7
19,84,921
20.6
4,52,136
3,24,845
59,05,031
3,63,315
15,16,418
25.4
36,54,950
20.6
31,217
3,39,131
59,05,031
34,384
8,963
0.9
0.2
1.58
0.52
73.9
2016
5,056
7,21,721
7,26,778
54,64,242
21.2
23,63,108
19.1
8,49,690
3,67,251
74,07,961
3,89,188
19,58,363
29.1
46,45,940
27.1
33,432
3,81,038
74,07,961
43,928
13,204
0.9
0.3
1.56
0.51
69.9
2017
2018E
2019E
5,125
5,125
5,125
8,55,571
9,72,191
11,47,519
8,60,696
9,77,316
11,52,645
64,36,397
76,01,384
90,07,640
17.8
18.1
18.5
30,91,525
33,90,217
40,98,476
30.8
9.7
20.9
7,40,289
9,76,769
12,96,400
6,01,020
6,97,525
8,57,955
86,38,402 1,02,52,994 1,23,14,640
4,89,521
6,51,940
7,83,107
21,44,633
23,37,876
28,29,476
9.5
9.0
21.0
55,45,682
67,38,004
80,51,914
19.4
21.5
19.5
36,267
39,531
43,089
4,22,298
4,85,643
6,07,054
86,38,402 1,02,52,994 1,23,14,640
58,857
18,440
1.1
0.3
1.53
0.62
68.7
86,626
28,404
1.3
0.4
1.65
0.95
74.8
97,297
30,008
1.2
0.4
1.55
0.85
89.9
2020E
5,125
13,71,351
13,76,476
1,07,55,123
19.4
50,44,153
23.1
17,47,754
10,55,285
1,49,34,637
9,50,219
35,96,856
27.1
95,81,778
19.0
46,967
7,58,817
1,49,34,637
1,07,929
30,404
1.1
0.3
1.50
0.82
89.1
24 October 2017
11

HDFC Bank
Financials and Valuation
Ratios
Y/E March
Spreads Analysis (%)
Avg. Yield-Earning Assets
Avg. Yield on loans
Avg. Yield on Invt
Avg. Cost-Int. Bear. Liab.
Avg. Cost of Deposits
Interest Spread
Net Interest Margin
Profitability Ratios (%)
RoE
RoA
Int. Expense/Int.Income
Fee Income/Net Income
Non Int. Inc./Net Income
Efficiency Ratios (%)
Cost/Income*
Empl. Cost/Op. Exps.
* ex treasury
Asset-Liability Profile (%)
Loans/Deposit
CASA Ratio
Investment/Deposit
CAR
Tier 1
2013
10.6
12.3
7.5
6.4
6.0
4.2
4.8
2014
10.3
11.7
7.8
6.2
5.7
4.1
4.6
2015
10.1
11.1
7.2
5.8
5.7
4.3
4.6
2016
10.1
10.8
8.1
5.8
5.9
4.3
4.6
2017
9.6
10.2
7.8
5.4
5.3
4.2
4.6
2018E
9.5
10.3
7.9
5.1
5.1
4.4
4.6
2019E
9.3
10.1
7.7
4.9
4.9
4.3
4.5
2020E
9.2
10.1
7.7
4.9
4.8
4.3
4.5
20.3
1.8
54.9
27.3
30.2
21.3
1.9
55.1
27.2
30.0
19.4
1.9
53.8
24.4
28.7
18.3
1.8
54.2
23.6
28.0
18.3
1.8
52.2
21.8
27.1
18.8
1.9
49.9
20.5
26.6
20.4
1.9
49.3
21.1
26.7
21.4
2.0
48.9
20.6
26.3
49.9
35.3
80.9
47.4
37.7
16.8
11.1
45.8
34.7
82.5
44.8
32.9
16.1
11.8
47.0
34.0
81.1
44.0
33.6
16.8
13.7
46.7
33.6
85.0
43.2
35.8
15.5
13.2
45.8
32.9
86.2
48.0
33.3
14.6
12.8
42.1
30.9
88.6
44.6
30.8
15.7
14.0
41.3
30.4
89.4
45.5
31.4
16.2
14.8
39.8
29.9
89.1
46.9
33.4
16.5
15.3
Valuation
Book Value (INR)
Change (%)
Price-BV (x)
Adjusted BV (INR)
Price-ABV (x)
EPS (INR)
Change (%)
Price-Earnings (x)
Dividend Per Sh (INR)
Dividend Yield (%)
E: MOSL Estimates
152
19.4
151
28.3
28.4
5.5
181
19.2
179
35.3
25.0
6.9
247
36.5
245
40.8
15.3
8.0
287
16.2
284
48.6
19.3
9.5
336
16.9
5.6
331
5.6
56.8
16.7
32.8
11.0
0.6
381
13.6
4.9
357
5.2
68.7
21.0
27.1
14.4
0.8
450
17.9
4.1
422
4.4
84.7
23.2
22.0
16.2
0.9
537
19.4
3.5
504
3.7
105.4
24.5
17.7
18.1
1.0
24 October 2017
12

HDFC Bank
Corporate profile
Company description
HDFC Bank was amongst the ten private sector bank
which were awarded license post liberalization of
1990s. The bank was incorporated in August 1994
and is promoted by the biggest mortgage lender in
the country, HDFC Limited (18.8% stake). The bank
is now the second largest private sector bank in
India with asset size of INR6t+ and market share of
~5% in deposit and loans respectively. As on March
31, 2017, the bank had a network of 4,715 branches
and 12,260 ATMs spread across the country.
Exhibit 1: Sensex rebased
Source: MOSL/Bloomberg
Exhibit 2: Shareholding pattern (%)
Sep-17
Promoter
DII
FII
Others
21.0
11.6
52.2
15.1
Jun-17
21.1
11.1
52.7
15.2
Sep-16
21.3
11.8
50.6
16.3
Source: Capitaline
Exhibit 3: Top holders
Holder Name
Europacific Growth Fund
LIC of India
SBI-ETF NIFTY 50
ICICI Prudential Life Insurance Company
Limited
Capital World Growth and Income Fund
% Holding
3.9
2.0
1.5
1.2
1.1
Source: Capitaline
Note: FII Includes depository receipts
Exhibit 4: Top management
Name
Shyamala Gopinath
Aditya Puri
Paresh Sukthankar
Kaizad Bharucha
Sanjay Dongre
Designation
Chairperson
Managing Director
Deputy
Managing
Director
Executive Director
Company Secretary
Exhibit 5: Directors
Name
A N Roy
K M Mistry
Partho S Datta
Srikanth Nadhamuni
Name
Bobby Parikh
Malay Patel
Renu Karnad
Umesh Chandra Sarangi
Source: Capitaline
*Independent
Exhibit 6: Auditors
Name
Deloitte Haskins & Sells
Type
Statutory
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY18
FY19
FY20
MOSL
forecast
68.7
84.7
105.4
Consensus
forecast
68.7
83.5
100.9
Variation (%)
0.0
1.4
4.4
Source: Bloomberg
Source: Capitaline
24 October 2017
13

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), Metropolitan Stock Exchange Of India Ltd. (MSE) 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. Details of associate entities of Motilal Oswal Securities Limited are
available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/Associate%20Details.pdf
Pending Regulatory Enquiries against Motilal Oswal Securities Limited by SEBI:
SEBI pursuant to a complaint from client Shri C.R. Mohanraj alleging unauthorized trading, issued a letter dated 29th April 2014 to MOSL notifying appointment of an Adjudicating Officer as per SEBI regulations to hold
inquiry and adjudge violation of SEBI Regulations; MOSL requested SEBI to provide all documents, records, investigation report relied upon by SEBI which were referred in Show Cause Notice and also sought personal
hearing. The matter is currently pending.
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.
HDFC Bank
Disclosure of Interest Statement
Analyst ownership of the stock
HDFC Bank
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:
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.:022-30801085.
Registration details of group entities.: MOSL: NSE (Cash): INB231041238; NSE (F&O): INF231041238; NSE (CD): INE231041238; BSE (Cash): INB011041257; BSE(F&O): INF011041257; BSE(CD); MSE(Cash): INB261041231;
MSE(F&O): INF261041231; MSE(CD): INE261041231; CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412. AMFI: ARN 17397. Investment Adviser: INA000007100. 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, Bond, NCDs, Insurance 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
24 October 2017
14