ICICI Bank
BSE SENSEX
33,793
S&P CNX
10,443
3 January 2018
Update
| Sector:
Financials
CMP: INR315
TP: INR370 (+17%)
Buy
Capex recovery still sometime away; retail growth holding well
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, INRm
Free float (%)
Financials Snapshot (INR b)
2018E 2019E
Y/E Mar
NII
OP
NP
NIM (%)
EPS (INR)
EPS Gr (%)
BV/Sh (INR)*
RoE (%)
RoA (%)
AP/E (x)
AP/BV (x)
237.6
228.4
87.2
3.3
13.6
-11.1
129.6
8.8
1.1
17.0
1.6
262.1
253.3
109.2
3.2
17.0
25.2
139.7
10.5
1.2
12.7
1.4
ICICIBC IN
6,408
2,018.9/31.8
332 / 227
0/0/9
5197
100.0
2020E
302.5
295.7
139.8
3.2
21.8
28.0
158.9
12.4
1.4
8.8
1.3
We met ICICI Bank recently. Following are our key takeaways from the meeting:
Capex demand remains muted; maintains 18-20% growth guidance for retail
segment:
Credit demand from corporates remains muted and the management is
not seeing any signs of capex revival. Resolution of NCLT referred cases would give
more clarity on capex pickup and asset quality outlook. ICICIBC is aiming for ~15%
growth in domestic corporate portfolio (excluding restructured loans and loans to
companies included in the drilldown list) even as the overall corporate loan growth
remains a muted 4% YoY. Retail loan growth, however, is holding up well and the
bank maintained its retail loan growth guidance of 18-20% for FY18, led by
continued traction across product lines. Unsecured retail loans have increased to
9.6% of total retail loans and largely pertain to the bank’s existing customers.
Margins likely to moderate in 2HFY18:
ICICIBC has reported 12bp YoY expansion in
margins over 1HFY18 to 3.27%, aided by interest on income tax refund, strong CASA
growth and continued traction in retail loans. However, the absence of such one-off
gains, accelerated repricing of advances portfolio and migration of base rate loans
to MCLR will weigh heavy on margins in 2HFY18. On CASA, the bank is reaching out
to government clients to provide customized solutions, dashboard and MIS, which
will provide it a sticky business opportunity.
Monetization of subsidiaries on track; pace of decline in overseas loan portfolio to
moderate:
ICICIBC is open to evaluating opportunities to unlock value in its
subsidiaries. It has recently filed DRHP towards the public issue of its securities
business. ICICIBC currently holds 54.9%/55.9% stake in its life/general insurance
subsidiaries and will eventually look to retain majority stake in these subsidiaries. It
is not looking to reduce stake in AMC business, where it holds 51%. There are no
plans to sell stake in housing finance subsidiary as well. On overseas business,
ICICIBC indicated that the pace of decline in loan book will moderate (22% YoY
decline currently) and there exists some scope of capital repatriation from its
Canada subsidiary.
Provisioning expenses to stay elevated; requires INR20b of provisioning towards
second NCLT list:
ICICIBC expects credit cost to stay elevated in the near term, as it
needs to provide INR20b by March 2018 towards the second list of stressed
accounts given by the RBI. The bank has not given any guidance on haircuts
expected in NCLT cases. ICICIBC will be sharing its asset quality divergence details
along with 3QFY18 results, however mentioned that outside stressed asset pool the
maximum ticket size to any BB and below rated borrower is INR6b, which gives
comfort.
Shareholding pattern (%)
As On
Sep-17 Jun-17 Sep-16
Promoter
DII
FII
Others
0.0
32.0
59.4
8.7
0.0
30.4
60.0
9.6
0.0
27.6
63.3
9.1
FII Includes depository receipts
Stock Performance (1-year)
ICICI Bank
Sensex - Rebased
350
300
250
200
Research Analyst: Nitin Aggarwal
(Nitin.Aggarwal@MotilalOswal.com); +91 22 3982 5540
| Anirvan Sarkar
(Anirvan.Sarkar@MotilalOswal.com); +91 22 3982 5505
Alpesh Mehta
(Alpesh.Mehta@MotilalOswal.com); +91 22 3982 5415 |
Piran Engineer
(Piran.Engineer@MotilalOswal.com); +91 22 3980 4393
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.

ICICI Bank
Valuation and view
While credit cost is likely to stay elevated in the near term (NPL ageing +
requirement toward the second list), we expect it to moderate from FY19, enabling
ICICIBC to deliver ~12% RoE by FY20E (~8% currently). We reiterate
Buy
with an
SOTP-based target price of INR370, which corresponds to 1.8x March 2020E ABV for
the standalone bank. Subsidiaries and associates account for ~30% of our target
valuation. Progress on asset resolution via NCLT remains a key trigger while
impending divergence notification remains an overhang.
Exhibit 1: We value ICICI Bank at INR370/share based on SOTP
Value per share (INR)
ICICI Standalone
Subsidiaries / Others
ICICI Bank UK
ICICI Bank Canada
Life insurance
General insurance
Asset management
Private equity
Primary dealer
Investment banking & broking
Home finance
Total subsidiaries' value @ 20% discount
% contribution of Subsidiaries / Others
Total fair value per share
Holding (%) Multiple
100
100
100
54.9
55.9
51
100
100
100
100
1.8x
1x
1x
15x
4.5%
15x
12x
12x
1.5x
Basis
Avg (EVA &
two-stage GGM)
BV
BV
NBM
AUM
PAT
PAT
PAT
ABV
FY19E
257
6
6
61
31
11
2
3
17
3
113
30.4
370
Source: MOSL, Company
3 January 2018
2

ICICI Bank
Story in charts
Exhibit 2: Retail loan book has steadily gained share in total
book…
Share of retail loans (%)
Exhibit 3: …with steady increase in unsecured retail
proportion
2
3
3
3
3.1 3.3 3.6 3.7 3.9 4.4 4.7 5.0 5.1
Source: MOSL, Company
Source: MOSL, Company
Exhibit 4: Margins have been supported by robust CASA
portfolio
NIM
CASA ratio (%)
45
41 41 41 41 42 42
40
40 39
3.4 3.5 3.6 3.5 3.5 3.5 3.4 3.2 3.1 3.1 3.6 3.3 3.3
47
45 45
Exhibit 5: Total net stressed pool continues to decline
NNPA
15.4
1.7
8.6
1.6
3.4
OSRL
14.0
1.9
7.2
1.4
3.6
Watchlist
12.7
0.9
6.0
1.4
4.4
11.8
1.3
4.1
0.9
5.5
Other stressed loans
11.5
1.2
4.4
0.5
5.5
11.2
1.7
4.1
0.4
5.0
Source: MOSL, Company
Source: MOSL, Company
Exhibit 6: Balance sheet of Canada subsidiary has declined
steadily….
Total assets (CAD$b)
Exhibit 7: …while decline in UK subsidiary balance sheet has
reversed
Total assets (USD$b)
6.7
6.5
6.3
4QFY17
6.3
1QFY18
3.6
6.2
2QFY18
2QFY17
3.4
3QFY17
3.7
3.5
4QFY17
3.5
1QFY18
2QFY18
2QFY17
3QFY17
Source: MOSL, Company
Source: MOSL, Company
3 January 2018
3

ICICI Bank
Exhibit 8: ICICI Bank DuPont Analysis (% of average assets)
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
Less: Dividend from Subs
Core RoA (ex-income from subs)
Core Leverage
RoE
FY13
2.70
1.48
0.15
1.63
4.33
1.76
0.76
1.00
2.57
2.42
0.35
2.22
0.60
1.62
0.18
1.45
10.25
14.81
FY14
2.91
1.40
0.45
1.84
4.76
1.82
0.75
1.08
2.93
2.49
0.46
2.47
0.73
1.73
0.23
1.51
10.11
15.21
FY15
3.07
1.56
0.41
1.96
5.03
1.85
0.77
1.09
3.18
2.77
0.63
2.55
0.75
1.80
0.25
1.55
9.83
15.23
FY16
3.11
1.56
0.69
2.24
5.35
1.86
0.73
1.12
3.49
2.80
1.71
1.78
0.36
1.42
0.22
1.20
9.45
11.33
FY17
2.91
1.54
1.07
2.61
5.53
1.98
0.77
1.21
3.55
2.48
2.04
1.51
0.20
1.31
0.19
1.12
9.10
10.22
FY18E
2.92
1.34
0.58
1.92
4.84
2.03
0.77
1.26
2.81
2.23
1.45
1.36
0.29
1.07
0.18
0.89
9.05
8.83
FY19E
2.88
1.26
0.63
1.89
4.77
1.98
0.77
1.21
2.79
2.16
1.23
1.56
0.36
1.20
0.18
1.02
9.46
10.49
FY20E
2.92
1.35
0.54
1.89
4.81
1.96
0.76
1.19
2.86
2.31
1.06
1.80
0.45
1.35
0.17
1.18
9.94
12.41
Source: Company, MOSL
3 January 2018
4

ICICI Bank
Financials and valuations
Income Statement
Y/E March
Interest Income
Interest Expended
Net Interest Income
Change (%)
Other Income
Net Income
Change (%)
Operating Exp.
Operating Profits
Change (%)
Provisions & Cont.
PBT
Tax
Tax Rate (%)
PAT
Change (%)
Dividend (Including Tax)
Core PPP*
Change (%)
*Core PPP is (NII+Fee income-Opex)
Balance Sheet
Y/E March
Equity Share Capital
Reserves & Surplus
Net Worth
Of which Equity Net Worth
Deposits
Change (%)
Change (%)
Borrowings
Other Liabilities & Prov.
Total Liabilities
Current Assets
Investments
Change (%)
Loans
Change (%)
Net Fixed Assets
Other Assets
Total Assets
Asset Quality
GNPA (INR m)
NNPA (INR m)
GNPA Ratio
NNPA Ratio
Slippage Ratio
Credit Cost
PCR (Excl Technical write off)
E: MOSL Estimates
2013
400,756
262,092
138,664
29.2
83,457
222,121
21.8
90,129
131,992
27.1
18,025
113,967
30,712
26.9
83,255
28.8
25,996
127,042
22.2
2014
441,782
277,026
164,756
18.8
104,279
269,034
21.1
103,089
165,946
25.7
26,264
139,682
41,577
29.8
98,105
17.8
28,336
155,776
22.6
2015
490,911
300,515
190,396
15.6
121,761
312,157
16.0
114,958
197,199
18.8
39,000
158,199
46,446
29.4
111,754
13.9
31,729
180,269
15.7
2016
527,394
315,154
212,240
11.5
153,231
365,471
17.1
126,836
238,635
21.0
116,678
121,957
24,694
20.2
97,263
-13.0
31,907
198,035
9.9
2017
541,563
324,190
217,373
2.4
195,045
412,418
12.8
147,551
264,867
11.0
152,081
112,786
14,775
13.1
98,011
0.8
28,057
179,097
-9.6
2018E
577,708
340,125
237,583
9.3
156,036
393,619
-4.6
165,246
228,373
-13.8
118,009
110,364
23,176
21.0
87,187
-11.0
34,206
187,051
1.0
(INR Million)
2019E
2020E
643,573
735,310
381,497
432,799
262,077
302,511
10.3
15.4
171,639
195,669
433,716
498,180
10.2
14.9
180,385
202,477
253,331
295,703
10.9
16.7
111,518
109,298
141,813
186,405
32,617
46,601
23.0
25.0
109,196
139,804
25.2
28.0
36,553
42,177
221,070
265,055
14.5
15.9
(INR Million)
2019E
2020E
12,828
12,828
1,094,886 1,192,513
1,107,714 1,205,341
1,104,214 1,201,841
6,261,817 7,263,708
14.5
16.0
16.1
15.3
1,854,072 2,083,928
433,201
498,181
9,656,804 11,051,159
593,973
620,847
2,142,304 2,452,938
11.0
14.5
6,085,734 7,071,623
15.5
16.2
91,883
99,693
742,910
806,058
9,656,804 11,051,159
2013
12,701
654,358
670,560
667,060
2,926,136
14.5
10.4
1,449,915
321,336
5,367,947
414,175
1,713,936
7.4
2,902,494
14.4
46,471
290,871
5,367,947
2014
12,716
719,418
735,633
732,133
3,319,137
13.4
16.2
1,544,091
347,555
5,946,416
415,296
1,770,218
3.3
3,387,026
16.7
46,781
327,094
5,946,416
2015
12,762
791,532
807,794
804,294
3,615,627
8.9
15.5
1,720,673
317,199
6,461,293
423,046
1,581,292
-10.7
3,875,221
14.4
47,255
534,479
6,461,293
2016
12,797
884,559
900,856
897,356
4,214,257
16.6
17.5
1,744,574
347,264
7,206,951
598,687
1,604,118
1.4
4,352,639
12.3
75,769
575,737
7,206,951
2017
12,816
979,005
995,321
991,821
4,900,391
16.3
27.8
1,472,062
350,141
7,717,914
757,131
1,615,065
0.7
4,642,321
6.7
78,052
625,346
7,717,914
2018E
12,828
1,022,243
1,035,071
1,031,571
5,468,836
11.6
9.0
1,650,424
376,697
8,531,028
559,815
1,930,003
19.5
5,269,034
13.5
84,296
687,880
8,531,028
96,078
22,306
3.2
0.8
1.41
0.51
76.8
105,058
32,980
3.0
1.0
1.56
0.72
68.6
150,947
62,555
3.8
1.6
2.35
0.87
58.6
262,213
129,631
5.8
3.0
4.31
1.75
50.6
425,520
252,168
8.8
5.4
7.95
3.27
39.8
482,174
269,464
9.2
5.1
4.20
2.30
44.1
505,277
280,567
8.3
4.6
2.70
1.90
44.5
485,267
244,473
6.9
3.5
2.00
1.60
49.6
3 January 2018
5

ICICI Bank
Financials and valuations
Ratios
Y/E March
Spreads Analysis (%)
Avg. Yield - Earning Assets
Avg. Yield on loans
Avg. Yield on Investments
Avg. Cost-Int. Bear. Liab.
Avg. Cost of Deposits
Interest Spread
Net Interest Margin
Profitability Ratios (%)
RoE
Adjusted RoE
RoA
Int. Expended/Int.Earned
Other Inc./Net Income
Efficiency Ratios (%)
Op. Exps./Net Income*
Empl. Cost/Op. Exps.
Busi. per Empl. (INR m)
NP per Empl. (INR lac)
* ex treasury
Asset-Liability Profile (%)
Loan/Deposit Ratio
CASA Ratio %
Invest./Deposit Ratio
G-Sec/Invest. Ratio
CAR
Tier 1
Valuation
Book Value (INR)
BV Growth (%)
Price-BV (x)
ABV (for Subsidaries) (INR)
ABV Growth (%)
Price-ABV (x)
ABV (for Subs Invst & NPA) (INR)
Adjusted Price-ABV (x)
EPS (INR)
EPS Growth (%)
Price-Earnings (x)
Adj. Price-Earnings (x)
Dividend Per Share (INR)
Dividend Yield (%)
E: MOSL Estimates
2013
8.8
10.1
6.7
5.7
6.2
3.0
3.0
2014
8.7
10.0
6.6
5.5
5.7
3.2
3.2
2015
8.9
9.8
6.3
5.5
5.9
3.5
3.5
2016
8.9
9.5
6.7
5.2
5.5
3.6
3.6
2017
8.3
8.8
7.1
5.0
5.0
3.4
3.3
2018E
7.8
8.6
7.3
5.0
4.8
2.8
3.3
2019E
7.8
8.6
7.2
5.0
4.8
2.8
3.2
2020E
7.8
8.5
7.1
5.0
4.8
2.8
3.2
13.3
14.8
1.62
65.4
37.6
14.4
15.2
1.73
62.7
38.8
15.0
15.2
1.80
61.2
39.0
11.9
11.3
1.42
59.8
41.9
10.9
10.2
1.31
59.9
47.3
8.8
8.2
1.1
58.9
39.6
10.5
10.0
1.2
59.3
39.6
12.4
12.0
1.4
58.9
39.3
41.5
43.2
88.0
13.4
39.8
40.9
86.8
13.6
38.9
41.3
104.6
16.5
39.0
39.4
108.4
13.1
45.2
38.9
109.3
11.8
48.2
38.9
121.5
11.0
44.8
38.9
134.9
12.1
43.7
38.9
153.1
14.3
99.2
41.9
58.6
53.9
18.7
12.8
102.0
42.9
53.3
53.8
17.7
12.8
107.2
45.5
43.7
66.8
17.0
12.8
103.3
45.8
38.1
69.0
16.6
13.1
94.7
50.4
33.0
68.4
17.4
14.4
96.3
53.1
35.3
68.1
17.0
14.1
97.2
53.2
34.2
70.1
15.9
13.2
149.3
170.3
7.1
1.8
139.7
7.8
1.4
122.1
1.66
17.0
25.2
18.5
12.7
5.7
1.8
97.4
52.9
33.8
72.3
14.9
12.5
239
185.6
8.9
1.7
158.9
13.7
1.3
140.5
1.44
21.8
28.0
14.5
8.8
6.6
2.1
102.9
9.6
83.5
12.5
81.0
13.1
28.7
111.6
8.5
92.7
11.1
89.1
15.4
17.7
122.9
10.1
105.5
13.8
98.6
17.5
13.5
133.2
8.4
120.8
14.5
106.6
15.2
-13.2
3.6
4.2
4.5
4.5
147.4
10.7
2.1
135.4
12.1
1.5
107.9
1.9
15.3
0.6
20.6
16.0
4.0
1.3
159.0
7.8
2.0
129.6
-4.3
1.6
112.8
1.80
13.6
-11.1
23.2
17.0
5.3
1.7
3 January 2018
6

ICICI Bank
NOTES
3 January 2018
7

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.
ICICI Bank
NOTES
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 the stock
ICICI 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
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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
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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
3 January 2018
8