19 April 2020
4QFY20 Results Update | Sector: Financials
HDFC Bank
Estimate change
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
HDFCB IN
5,477
4992 / 63.2
1304 / 739
-10/-6/-1
10009
CMP: INR910
TP: INR1,200 (+32%)
High contingent provisions drive flat PBT; 3 candidates
finalized for CEO
Prudential provisioning to enable steady earnings trajectory
Buy
Financials & Valuations (INR b)
Y/E MARCH
FY20 FY21E
NII
561.9 668.9
OP
487.5 576.1
NP
262.6 302.7
NIM (%)
4.2
4.3
EPS (INR)
48.0
55.2
EPS Gr. (%)
21.2
14.9
BV/Sh. (INR)
311.8 357.4
ABV/Sh. (INR)
297.9 338.5
Ratios
RoE (%)
16.4
16.5
RoA (%)
1.9
1.9
Payout (%)
25.0
17.4
Valuations
P/E(X)
18.9
16.5
P/BV (X)
2.9
2.5
P/ABV (X)
3.1
2.7
Div. Yield (%)
1.3
1.1
Shareholding pattern (%)
As On
Mar-20 Dec-19
Promoter
21.2
21.3
DII
17.9
17.1
FII
48.6
49.6
Others
12.4
12.0
FII Includes depository receipts
FY22E
772.9
660.1
360.6
4.3
65.8
19.2
412.9
392.9
17.1
1.9
15.6
13.8
2.2
2.3
1.1
HDFC Bank (HDFCB) reported healthy business growth in 4QFY20, led by
continued strength in its corporate portfolio while retail growth was soft.
Operating performance stood flat as margin expansion was offset by lower
fee income due to the COVID-19 impact. Further, the bank has made
contingent provisions of INR15.5b, which affected earnings.
We have fine-tuned our other income estimates factoring in the current
trends, which has resulted in ~2% cut each in our FY21E/FY22E earnings.
Maintain
Buy.
HDFCB reported a steady quarter with PAT growth of ~18% YoY (-7% QoQ),
supported by NII growth of 16% YoY (7% QoQ) as margins increased 10bp
QoQ to 4.3%. However, provisions spiked to INR37.8b (+24% QoQ) as the
bank made contingent provision of INR15.5b toward COVID-19.
For FY20:
NII/ PPoP/PAT grew 16%/23%/25% YoY to INR562b/INR487b/INR263b.
Core fee income growth moderated to ~15% YoY to INR42b affected by the
lockdown, which resulted in loss of fees/other income of INR4.5b. Opex
grew ~16% YoY led by employee expenses (+20% YoY). C/I ratio increased to
39% (+110bp QoQ) while PPoP stood flat QoQ at INR129.6b (+20% YoY).
Loans grew 21% YoY, led by corporate loans (+29% YoY) while retail loan
growth was soft at 14.6% YoY. Within retail, credit cards were flat QoQ
while personal loans grew 5.5% QoQ. Deposits increased 24% YoY while
CASA mix soared to 42.2% (+270bp QoQ). LCR ratio stood at 132%.
Slippages stood at INR31.5b (1.3% annualized) while some of the overdue
accounts availed moratorium, which otherwise would have slipped during the
quarter, resulting in ~6%/21% QoQ decline in GNPA/NNPA. Thus, GNPA /
NNPA ratios declined by 16bp YoY/12bp QoQ (10bp/6bp benefit due to the
moratorium). As a result, PCR improved by ~530bp QoQ to 72%. HDFCB
carries a floating provision of INR14.5b and contingent provision of INR29.9b.
COVID-19 impact:
Under the stress case, we expect ~9% of the SME portfolio
to be vulnerable and see maximum potential GNPA impact of ~50bp.
Of the retail customers who are applying for moratorium, ~95-98% are not
in default (0 dpd) as on 29
th
Feb’20, and are availing moratorium mainly
from a caution perspective rather than from stress building up.
CEO change:
Mr. Aditya Puri is set to retire on 26
th
Oct’20; the bank has
finalized three candidates and would be applying to the RBI for approval.
Stable earnings performance; provision coverage improves to 72%
Mar-19
21.4
13.4
50.5
14.7
Highlights from management commentary
Valuations and view
HDFCB's business growth remains robust despite economic activity getting
impacted due to the COVID-19 outbreak. Corporate loan growth remains strong
and is driving overall loan growth while retail loan growth remains soft.
Although the RBI moratorium supports asset quality, credit cost is expected to
stay elevated while provisioning buffers should limit the overall impact on
earnings. A strong liability franchise would support margins while higher
Research Analyst: Nitin Aggarwal
(Nitin.Aggarwal@MotilalOswal.com); +91 22 6129 1542 |
Himanshu Taluja
(Himanshu.Taluja@motilaloswal.com)
Alpesh Mehta
(Alpesh.Mehta@MotilalOswal.com);
Yash Agarwal
(Yash.Agarwal@motilaloswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal
2020
14 January
research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
1
 Motilal Oswal Financial Services
HDFC Bank
liquidity levels would enable the bank to ride the current crisis and gain further
market share. We, thus, estimate loan book/PAT to deliver CAGR of 16%/17% over
FY20-22E. Management succession remains a big event to watch for. Maintain
Buy
with PT of INR1,200 (3.0x Sep’21E ABV).
Quarterly performance
1Q
108.1
15.4
38.2
146.3
59.8
86.5
15.0
16.3
70.2
24.2
46.0
18.2
20.0
22.0
8,058
7,086
1.3
0.4
69.5
FY19
2Q
3Q
117.6 125.8
20.6
21.9
40.2
49.2
157.8 175.0
63.0
67.2
94.8 107.8
21.3
27.5
18.2
22.1
76.6
85.7
26.5
29.8
50.1
55.9
20.6
20.3
20.9
24.1
8,334
7,508
1.3
0.4
70.0
22.0
23.7
8,525
7,810
1.4
0.4
69.7
4Q
130.9
22.8
48.7
179.6
71.2
108.4
22.7
18.9
89.5
30.7
58.9
22.6
17.0
24.5
9,231
8,194
1.4
0.4
71.4
1Q
132.9
22.9
49.7
182.6
71.2
111.5
28.9
26.1
85.3
29.7
55.7
21.0
18.5
17.1
9,546
8,297
1.4
0.4
69.7
FY20
2Q
135.2
14.9
55.9
191.0
74.1
117.0
23.4
27.0
90.0
26.5
63.4
26.8
22.6
19.5
10,216
8,970
1.4
0.4
69.7
FY19
3Q
141.7
12.7
66.7
208.4
79.0
129.5
20.1
30.4
99.0
24.9
74.2
32.8
4Q
152.0
16.2
60.3
212.4
82.8
129.6
19.5
37.8
91.7
22.5
69.3
17.7
24.3
21.3
11,475
9,937
1.3
0.4
72.0
482.4
20.3
176.3
658.7
261.2
397.5
21.8
75.5
322.0
111.2
210.8
20.5
17.0
24.5
9,231
8,194
1.4
0.4
71.4
FY20
561.9
16.5
232.6
794.5
307.0
487.5
22.6
121.4
366.1
103.5
262.6
24.6
24.3
21.3
11,475
9,937
1.3
0.4
72.0
(INRb)
FY20E V/s our
4QE
Est
151
0.8
15.2
0.9
62
-2.9
213
-0.3
80
3.9
133
-2.8
22.9
-3.4
38
0.5
96
-4.1
24
-6.8
72
-3.2
21.6
-3.9
24.2
21.2
11,465
9,931
1.6
0.5
70.1
0.1
0.1
0.1
0.1
-0.3
-0.1
1.9
Net Interest Income
% Change (Y-o-Y)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (Y-o-Y)
Provisions
Profit before Tax
Tax
Net Profit
% Change (Y-o-Y)
Operating Parameters
Deposit Growth (%)
Loan Growth (%)
Deposit
Loan
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
E:MOFSL Estimates
25.2
19.9
10,674
9,360
1.4
0.5
66.7
Quarterly snapshot
1Q
Profit and Loss (INR b)
Interest Income
Loans
Investment
Others
Interest Expenses
Net Interest Income
Other Income
Trading profits
Exchange Profits
Others (Ex non core)
Total Income
Operating Expenses
Employee
Others
Operating Profits
Core Operating Profits
Provisions
PBT
Taxes
PAT
Balance Sheet (INR b)
Deposits
Loans
Asset Quality (INR b)
GNPA
NNPA
FY18
2Q
3Q
4Q
1Q
FY19
2Q
3Q
4Q
1Q
273.9
218.0
52.5
3.4
141.0
132.9
49.7
2.1
5.8
41.8
182.6
71.2
22.2
49.0
111.5
109.4
26.1
85.3
29.7
55.7
FY20
2Q
3Q
281.7
225.1
50.9
5.6
146.5
135.2
55.9
4.8
5.5
45.6
191.0
74.1
23.6
50.5
117.0
112.2
27.0
90.0
26.5
63.4
293.7
234.2
52.0
7.4
152.0
141.7
66.7
6.8
5.3
54.7
208.4
79.0
24.5
54.4
129.5
122.7
30.4
99.0
24.9
74.2
4Q
298.9
240.4
50.9
7.5
146.8
152.0
60.3
5.7
5.0
49.7
212.4
82.8
25.0
57.8
129.6
123.9
37.8
91.7
22.5
69.3
Change (%)
YoY QoQ
13
14
1
181
11
16
24
147
24
17
18
16
20
15
20
17
100
2
-27
18
24
21
13
10
2
3
-2
1
-3
7
-10
-16
-5
-9
2
5
2
6
0
1
24
-7
-10
-7
8
6
-6
-21
186.7 196.7 205.8 213.2 225.5 242.0 258.9 263.3
144.9 153.6 161.6 166.6 173.9 188.3 203.1 210.2
38.9 40.1 41.0 42.2 45.9 50.4 53.2 50.5
2.9
3.1
3.2
4.4
5.7
3.3
2.6
2.7
93.0 99.2 102.7 106.6 117.4 124.4 133.1 132.4
93.7 97.5 103.1 106.6 108.1 117.6 125.8 130.9
35.2 36.1 38.7 42.3 38.2 40.2 49.2 48.7
3.3
3.6
2.6
0.2
-2.8
-0.3
4.7
2.3
3.0
3.8
4.3
4.2
5.0
4.2
4.0
4.0
28.9 28.7 31.8 37.9 36.0 36.3 40.5 42.4
128.9 133.6 141.8 148.9 146.3 157.8 175.0 179.6
53.7 55.4 57.3 60.5 59.8 63.0 67.2 71.2
16.6 17.2 16.9 17.4 18.1 19.1 19.7 20.7
37.1 38.2 40.4 43.1 41.7 43.9 47.5 50.4
75.2 78.2 84.5 88.4 86.5 94.8 107.8 108.4
71.9 74.6 81.9 88.1 89.3 95.1 103.0 106.1
15.6 14.8 13.5 15.4 16.3 18.2 22.1 18.9
59.6 63.4 71.0 72.9 70.2 76.6 85.7 89.5
20.7 21.9 24.6 25.0 24.2 26.5 29.8 30.7
38.9 41.5 46.4 48.0 46.0 50.1 55.9 58.9
6,714 6,893 6,990 7,888 8,058 8,334 8,525 9,231 9,546 10,216 10,674 11,475
5,810 6,049 6,312 6,583 7,086 7,508 7,810 8,194 8,297 8,970 9,360 9,937
72.4
25.3
77.0
26.0
82.3
27.7
86.1
26.0
95.4
29.1
101.0 109.0 112.2 117.7
30.3 33.0 32.1 35.7
125.1
37.9
134.3
44.7
126.5
35.4
19 April 2020
2
 Motilal Oswal Financial Services
HDFC Bank
19 April 2020
3
 Motilal Oswal Financial Services
HDFC Bank
Quarterly snapshot contd.
Ratios
Asset Quality Ratios (%)
GNPA
NNPA
PCR (Calc.)
Slippage
Business Ratios (%)
Fees to Total Income
Cost to Core Income
Tax Rate
CASA (Reported)
Loan/Deposit
Profitability Ratios (%)
Yield on loans
Yield On Investments
Yield on funds
Cost of funds
Spreads
Margins
RoA
RoE
Other Details
Branches
ATMs
Employees
1Q
1.2
0.4
65.1
2.6
22.4
42.7
34.7
44.0
86.5
10.2
7.2
9.3
5.0
4.3
4.4
1.8
17.0
FY18
2Q
3Q
1.3
0.4
66.3
2.0
21.5
42.6
34.5
42.9
87.7
10.4
7.0
9.6
5.1
4.5
4.3
1.9
17.5
1.3
0.4
66.3
1.9
22.4
41.2
34.6
43.9
90.3
10.5
6.9
9.6
5.2
4.5
4.3
2.0
18.9
4Q
1.3
0.4
69.8
1.8
25.5
40.7
34.2
43.5
83.5
10.3
7.1
9.7
5.0
4.7
4.3
1.9
18.5
1Q
1.3
0.4
69.5
2.2
24.6
40.1
34.4
41.7
87.9
10.2
7.1
9.6
5.1
4.5
4.2
1.8
17.2
FY19
2Q
3Q
1.3
0.4
70.0
1.9
23.0
39.8
34.7
42.0
90.1
10.3
7.0
9.5
5.2
4.3
4.3
1.8
16.4
1.4
0.4
69.7
2.1
23.1
39.5
34.8
40.7
91.6
10.6
7.3
9.8
5.5
4.4
4.3
2.0
15.9
FY20
4Q
1.4
0.4
71.4
1.8
23.6
40.1
34.3
42.4
88.8
10.5
7.1
9.7
5.3
4.5
4.4
2.0
16.1
1Q
1.4
0.4
69.7
2.1
22.9
39.4
34.8
39.7
86.9
10.6
7.1
9.8
5.4
4.4
4.3
1.8
14.6
2Q
1.4
0.4
69.7
1.8
23.9
39.8
29.5
39.3
87.8
10.4
6.7
9.7
5.4
4.3
4.2
2.0
16.3
3Q
1.4
0.5
66.7
2.4
26.2
39.2
25.1
39.5
87.7
10.2
6.7
9.6
5.3
4.3
4.2
2.2
18.6
4Q
1.3
0.4
72.0
0.0
23.4
40.0
24.5
42.2
86.6
10.0
5.8
9.1
4.7
4.3
4.3
2.0
16.6
Change (bps)
YoY QoQ
-10
-3
64
-183
-22
-9
-979
-20
-217
-54
-129
-62
-51
-12
-10
-8
45
-16
-12
528
-238
-284
89
-61
270
-109
-26
-94
-50
-55
5
10
-24
-201
4,727 4,729 4,734 4,715 4,804 4,825 4,963 5,103 5,130
5,314
5,345
5,416
313
71
12,220 12,259 NA 12,260 12,808 13,018 13,407 13,160 13,395 13,514 14,533 14,901 1,741
368
83,757 NA 86,600 88,253 89,550 94,907 96,425 98,061 104,154 111,208 113,981 116,971 18,910 2,990
Highlights of management commentary
P&L & balance sheet related
Liquidity remains high with average LCR ratio at 132% (INR500b of surplus
liquidity available).
Retail fees contribute ~93% to the core fee income while wholesale forms ~7%.
Retail growth would continue to remain tepid over the next few quarters while
wholesale trends would remain strong.
Portfolio Diversification:
The bank has diversified its portfolio across 150
sectors.
On cost side:
Virtual technological platforms need to be adapted; investment on
the cyber security side and higher VPN access would also be required. Further
digitalization would help in improving productivity and overall cost ratios.
The bank has guided for ~3-5% improvement in cost ratios over the next few
years.
Retail to wholesale mix would remain at 50: 50.
~80% of unsecured loans are to salaried customers of which 2/3
rd
is towards
high rated corporate employees while the rest 1/3
rd
is of slightly higher risk. The
difference in delinquency trends for these high-risk profile customers vs others
is ~0.09%.
High CIBIL customers:
Delinquency levels ~40-60% lower compared to peers.
Low CIBIL customers:
Delinquency levels 30-50% lower compared to peers. Also,
HDFCB is better placed in the self-employed segment compared to market
trends. This is mainly due to high underwriting process, multiple bureau and
scorecards being considered while making assessments.
The bank uses several propriety tools to access customer profile.
The bank will continue to focus on 10-second loan disbursements.
Unsecured Portfolio
19 April 2020
4
 Motilal Oswal Financial Services
HDFC Bank
Expect self-employed segment to face high disruptions in making monthly
payments.
Corporate portfolio reflects strong growth trends, mainly on account of strong
client support and willingness on the part of clients to keep high-cash/liquidity
post lockdown. Corporate banking is benefitting from strong disbursement to
public sector companies, MNC corporates, etc.
Strong growth is coming in from power, material, consumer, agriculture and
allied sectors, PSL on-lending, etc.
Top-20 disbursements by value reflect that ~42% is toward working capital
requirements, ~24% toward capital expenditure, ~14% toward balance sheet
borrowings for acquisition and the balance toward liquidity buffers.
The bank has not lowered its risk thresholds. Over 92% of incremental
disbursements are coming from top-rated clients. Also, HDFCB is continuing to
make its portfolio diverse and reduce concentration.
Cross-sell benefits:
CASA in corporate banking has doubled in two years; the
bank has witnessed strong traction in corporate salaries.
In business banking, each RM is making calls and is in continuous touch with
clients.
Focus is on granular portfolio, geographical spread, risk-mitigation through self-
funding, high-collateral value and strong documentation.
On a regional basis, Punjab, Haryana and UP are showing strong trends while
moderate trends are visible in the western region. Also, high customer
acquisition has been witnessed from the semi-urban and rural regions.
~1,500 new customers were acquired during the quarter.
~60-65% of the portfolio qualifies for the PSL purpose.
~85% of the borrowers have collateral of more than 100% while 77% of the
collateral is in real estate.
At this point, it would be difficult to assess the percentage of customers availing
moratorium; small players with less access to the market are likely to avail this
facility.
Under the stress case, we expect ~9% of the SME portfolio to be vulnerable and
to see maximum potential GNPA impact of ~50bp.
Including contingent provisions, PCR stood at ~90% while PCR including specific,
floating and contingent stood at 142%.
SME segment:
Decline in high-risk profile customers visible.
The bank did a stress test to analyze the COVID-19 impact. At this point, the
bank believes that it has made sufficient contingent provisions. If required, the
bank would utilize the existing buffer provisions built over the last few years.
The maximum GNPA impact due to COVID-19 could be around 50bp.
If not for the RBI’s relaxation of NPA norms, slippages would have increased
by 40bp.
Slippages for the quarter came in at INR31.5b.
Corporate Portfolio
Wholesale SME & Business Banking Portfolio
Asset quality
19 April 2020
5
 Motilal Oswal Financial Services
HDFC Bank
Asset quality analysis on retail portfolio
Assumptions:
Zero collection in Apr’20. The bank expects weak trends in
May’20 while the trend should improve Jun’20 onwards.
The bank expects maximum impact of INR15.5b due to COVID-19.
Of the customers applying for moratorium, ~95-98% are not in default (0 dpd)
category.
The bank did a survey and found that customers availed moratorium
mainly from a caution perspective rather than from stress building.
HDFCB has been cautious of its retail portfolio over the last one year, and
therefore, tightened its underwriting standards prior to the crisis itself. Thus, it
is better placed to manage the current crisis.
Others
CEO change:
Finalized a list of three candidates and proposal to the RBI for
approval would be submitted.
Another 250 branches are almost ready and should open post the lockdown.
~52% of the branches are in rural and semi-urban regions.
~6.3m new liability relationships have been acquired during FY20.
The bank has a credit card base of ~14.5m.
HDFCB credit rating is 2 notches above the sovereign ratings by S&P.
HDB Financials has adopted a different methodology and provided moratorium
to all its customers.
Key Exhibits
Exhibit 1: Share of retail loans stands at ~50% in 4QFY20 v/s ~51% in 3QFY20
INRb
Car Loans
CV loans
2 wheeler loans
Sub-total - Auto Loans
Personal loans
Business banking
Loan against shares
Credit Cards
Home loans
Gold loans
Other Retail
Retail Total
Corporate and international
Total loans
4QFY19
806.8
287.3
100.5
1,194.5
929.8
570.4
18.8
466.3
513.6
51.9
568.4
4,313.6
3,880.4
8,194.0
3QFY20
835.5
281.2
101.5
1,218.3
1,095.3
632.6
18.1
576.8
617.3
53.2
589.9
4,801.3
4,559.0
9,360.3
4QFY20
839.4
290.5
98.6
1,228.4
1,155.6
641.2
18.0
575.8
634.5
54.3
636.3
4,944.0
4,993.0
9,937.0
YoY (%)
4.0
1.1
-1.9
2.8
24.3
12.4
-4.3
23.5
23.5
4.7
12.0
14.6
28.7
21.3
QoQ (%)
0.5
3.3
-2.9
0.8
5.5
1.4
-0.6
-0.2
2.8
2.1
7.9
3.0
9.5
6.2
% of total
8.4
2.9
1.0
12.4
11.6
6.5
0.2
5.8
6.4
0.5
6.4
49.8
50.2
100.0
19 April 2020
6
 Motilal Oswal Financial Services
HDFC Bank
Exhibit 2: Share of unsecured loans declined to 17.4%
15.2
17.2 17.1
16.0 16.5 16.6 16.6
17.8 17.3 17.9 17.4
12.0 11.9 12.5 12.4
13.1 13.4
14.2 13.7 14.7
Source: MOSL, Company
Exhibit 3: Fee income/average assets (%) declined to 1.15% due to impact of COVID-19
Fee Inc.(INR b)
Fee Inc. as % of Avg. Assets
1.1 1.2
1.3
1.3
1.2 1.2 1.1 1.1 1.1 1.2 1.2 1.1 1.2
1.2 1.2 1.2 1.2 1.1 1.3
1.1
Source: MOSL, Company
Valuation view
Corporate loan growth for HDFCB is picking up and compensating well for the
softness in its retail portfolio (caused by muted growth in the vehicle
segment/credit cards). Among retail assets, growth is coming primarily from
unsecured personal loans.
Fee income profile was slightly impacted in the current quarter due to decline in
economic activity on account of COVID-19. However, strong cost controls are
likely to drive an improvement in the bank’s return ratios. Besides, margins have
improved sequentially due to decline in cost of funds aided by strong/granular
liability franchise. As corporate lending is picking up, we believe corporate fees
would also reflect improving trends as economic activity picks up.
Asset quality also witnessed an improvement aided by the RBI announcement
(17
th
Apr’20) on NPA relaxation by excluding the moratorium period from 90-day
NPA recognition norm. CV/CE and unsecured retail loans to the self-employed
segment needs to be monitored amidst COVID-19 and we expect rising
delinquency trends in the near term. PCR increased ~530bp to ~72% while the
bank carries a floating provision of INR14.5b and contingent provision of
INR29.9b. Overall, we continue to expect NNPA to remain at 0.5% in FY22E.
We have seen some pick-up in investments in branches/ATMs and calibration in
the workforce. Overall, we believe that strong capitalization and liquidity levels
(surplus liquidity buffer of INR500b) should help HDFCB to sustain its growth
momentum over the next few years.
19 April 2020
7
 Motilal Oswal Financial Services
HDFC Bank
Buy with a target price of INR1,200:
HDFCB's business growth remains robust in
a tough macro environment where economic activity is getting impacted due to
the COVID-19 outbreak. Corporate loan growth remains strong and is driving
overall loan growth while retail loan growth stands soft as vehicle/credit cards
have moderated. Asset quality improved aided by the RBI moratorium, though
credit cost is expected to stay elevated. Provisioning buffers, however, should
limit the overall impact on earnings. A strong liability franchise would support
margins while higher liquidity levels would enable the bank to ride the current
crisis and further gain market share. We, thus, estimate loan book/PAT to
deliver CAGR of 16%/17% over FY20-22E. Management succession remains a big
event to watch for. Maintain
Buy
with a PT of INR1,200 (3.0x Sep’21E ABV).
Exhibit 5: One-year forward P/E
Max (x)
-1SD
4.2
3.8
21.0
3.1
2.4
2.5
13.0
5.0
29.0
P/E (x)
Min (x)
Avg (x)
+1SD
23.2
20.7
18.1
Max (x)
-1SD
26.0
Exhibit 4: One-year forward P/B
4.4
3.6
2.8
2.0
1.2
P/B (x)
Min (x)
Avg (x)
+1SD
3.4
15.2
15.8
Source: MOFSL, Company
Source: MOFSL, Company
19 April 2020
8
 Motilal Oswal Financial Services
HDFC Bank
Story in Charts
Exhibit 6: Loan growth picked up to 21% YoY (6.2% QoQ)
Loans (INR b)
23
19 23 22
28
YoY Growth (%)
Exhibit 7: Deposit grew strongly by 24% YoY (7.5% QoQ)
Deposits (INR b)
19 17 21 18 17 16
YoY Gr (%)
18
13
24 24 24
19 22
17 19 20 21
10
23 25 24
23 20 21 22
17 18
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 8: Vehicle loan growth stood muted at 3% YoY
(+0.8% QoQ)
Vehicle Loans (INR b)
19 20 17
YoY Growth (%)
Exhibit 9: NIM expanded 10bp QoQ to 4.3% due to decline
in cost of funds
4.3
4.2
4.3 4.3
4.4
4.2
4.1
4.3
4.4
4.3 4.3 4.3
4.2
4.3 4.3
4.4
4.3
4.2 4.2
4.3
25 26 22 24 24
21 20
18
10 8
3
1
3
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 10: CASA ratio increased 270bp QoQ to 42.2%
CASA Deposits (INR b)
CASA Ratio (%)
Exhibit 11: GNPA/NNPA ratio improved by 16bp/12bp QoQ
Gross NPAs (%)
Net NPAs (%)
Source: MOFSL, Company
Source: MOFSL, Company
19 April 2020
9
 Motilal Oswal Financial Services
HDFC Bank
Exhibit 12: DuPont Analysis – Return ratios to remain stable
Y/E March
Interest Income
Interest Expense
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
FY15
8.96
4.82
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
9.27
5.02
4.25
1.23
0.43
1.65
5.48
2.61
0.88
1.74
3.29
2.86
0.42
2.87
0.98
1.89
9.6
18.3
FY17
8.81
4.60
4.21
1.12
0.44
1.56
5.33
2.51
0.82
1.68
3.27
2.83
0.46
2.82
0.97
1.85
9.7
17.9
FY18
8.32
4.17
4.16
1.31
0.27
1.58
5.74
2.35
0.71
1.65
3.38
3.11
0.61
2.77
0.96
1.81
9.8
17.9
FY19
8.57
4.40
4.18
1.34
0.18
1.53
5.71
2.26
0.67
1.59
3.44
3.26
0.65
2.79
0.96
1.83
9.0
16.5
FY20
8.27
4.23
4.05
1.43
0.24
1.68
5.73
2.21
0.69
1.53
3.51
3.27
0.88
2.64
0.75
1.89
8.7
16.4
FY21E
8.41
4.29
4.12
1.36
0.23
1.59
5.70
2.16
0.67
1.49
3.54
3.32
1.06
2.49
0.63
1.86
8.9
16.5
FY22E
8.4
4.3
4.15
1.36
0.23
1.59
5.75
2.20
0.69
1.51
3.54
3.31
0.96
2.59
0.65
1.94
8.8
17.1
19 April 2020
10
 Motilal Oswal Financial Services
HDFC Bank
Financials and Valuations
Income Statement
Y/E March
Interest Income
Interest Expense
Net Interest Income
Growth (%)
Non-Interest Income
Total Income
Growth (%)
Operating Expenses
Pre Provision Profits
Growth (%)
Core PPP
Growth (%)
Provisions (excl. tax)
PBT
Tax
Tax Rate (%)
PAT
Growth (%)
FY15
484.7
260.7
224.0
21.2
90.0
313.9
18.9
139.9
174.0
21.2
150.3
23.0
20.8
153.3
51.1
33.4
102.2
20.5
FY16
602.2
326.3
275.9
23.2
107.5
383.4
22.1
169.8
213.6
22.7
184.5
22.7
27.3
186.4
63.4
34.0
123.0
20.4
FY17
693.1
361.7
331.4
20.1
123.0
454.4
18.5
197.0
257.3
20.4
220.9
19.7
35.9
221.4
75.9
34.3
145.5
18.3
FY18
802.4
401.5
400.9
21.0
152.2
553.2
21.7
226.9
326.2
26.8
311.0
40.8
59.3
267.0
92.1
34.5
174.9
20.2
FY19
989.7
507.3
482.4
20.3
176.3
658.7
19.1
261.2
397.5
21.8
380.3
22.3
75.5
322.0
111.2
34.5
210.8
20.5
FY20
1,148.1
586.3
561.9
16.5
232.6
794.5
20.6
307.0
487.5
22.6
458.4
20.5
121.4
366.1
103.5
28.3
262.6
24.6
FY21E
1,366.8
697.8
668.9
19.1
258.2
927.1
16.7
351.0
576.1
18.2
543.8
18.6
171.6
404.5
101.8
25.2
302.7
15.3
(INRb)
FY22E
1,564.8
791.9
772.9
15.5
296.9
1,069.9
15.4
409.8
660.1
14.6
622.4
14.5
178.2
482.0
121.3
25.2
360.6
19.2
Balance Sheet
Y/E March
Equity Share Capital
Reserves & Surplus
Net Worth
Deposits
Growth (%)
of which CASA Dep
Growth (%)
Borrowings
Other Liabilities & Prov.
Total Liabilities
Current Assets
Investments
Growth (%)
Loans
Growth (%)
Fixed Assets
Total Assets
FY15
5.0
615.1
620.1
4,508.0
22.7
1,984.9
20.6
452.1
324.8
5,905.0
363.3
1,516.4
25.4
3,655.0
20.6
31.2
5,905.0
FY16
5.1
721.7
726.8
5,464.2
21.2
2,363.1
19.1
849.7
367.3
7,408.0
389.2
1,958.4
29.1
4,645.9
27.1
33.4
7,408.0
FY17
5.1
855.6
860.7
6,436.4
17.8
3,091.5
30.8
740.3
601.0
8,638.4
489.5
2,144.6
9.5
5,545.7
19.4
36.3
8,638.4
FY18
5.2
1,057.8
1,063.0
7,887.7
22.5
3,430.9
11.0
1,231.0
457.6
10,639.3
1,229.2
2,422.0
12.9
6,583.3
18.7
36.1
10,639.3
FY19
5.4
1,486.6
1,492.1
9,231.4
17.0
3,912.0
14.0
1,170.9
551.1
12,445.4
813.5
2,905.9
20.0
8,194.0
24.5
40.3
12,445.4
FY20
5.5
1,704.4
1,709.9
11,475.0
24.3
4,846.3
23.9
1,446.3
673.9
15,305.1
866.2
3,918.3
34.8
9,937.0
21.3
44.3
15,305.1
FY21E
5.5
1,954.3
1,959.7
13,311.0
16.0
5,537.4
14.3
1,171.2
761.6
17,203.6
1,173.1
4,231.7
8.0
11,427.6
15.0
48.8
17,203.6
FY22E
5.5
2,258.8
2,264.3
15,707.0
18.0
6,769.7
22.3
1,207.9
860.6
20,039.8
1,353.2
4,739.5
12.0
13,370.3
17.0
53.6
20,039.8
Asset Quality
Y/E March
GNPA
NNPA
GNPA Ratio
NNPA Ratio
Slippage Ratio
Credit Cost
PCR (Excl. Tech. write off)
FY15
34.4
9.0
0.9
0.2
1.6
0.5
73.9
FY16
43.9
13.2
0.9
0.3
1.6
0.5
69.9
FY17
58.9
18.4
1.1
0.3
1.5
0.6
68.7
FY18
86.1
26.0
1.3
0.4
2.1
0.8
69.8
FY19
112.2
32.1
1.4
0.4
1.9
1.0
71.4
FY20
126.5
35.4
1.3
0.4
1.8
1.3
72.0
FY21E
256.8
68.7
2.2
0.6
2.7
1.5
73.3
FY22E
263.7
67.6
1.9
0.5
2.5
1.4
74.4
19 April 2020
11
 Motilal Oswal Financial Services
HDFC Bank
Financials and Valuations
Ratios
Y/E March
Yield & Cost Ratios (%)
Avg. Yield-Earning Assets
Avg. Yield on loans
Avg. Yield on Inv.
Avg. Cost-Int. Bear. Liability.
Avg. Cost of Deposits
Interest Spread
Net Interest Margin
Capitalization Ratios (%)
CAR
Tier I
Tier II
Business and Efficiency Ratios
(%)
Loans/Deposit
CASA Ratio
Cost/Assets
Cost/Total Income
Cost/Core Income
Int. Expense/Int. Income
Fee Income/Total Income
Non Int. Inc./Total Income
Emp. Cost/Total Expense
Investment/Deposit
FY15
10.1
11.1
7.2
5.8
5.7
4.3
4.6
FY16
10.1
10.8
8.1
6.0
5.9
4.3
4.6
FY17
9.6
10.2
7.8
5.5
5.3
4.2
4.6
FY18
9.4
10.3
7.2
4.9
4.6
4.5
4.4
FY19
9.6
10.5
7.6
5.2
4.8
4.4
4.4
FY20
9.0
10.1
6.1
5.0
4.9
4.0
4.2
FY21E
9.1
10.0
7.0
5.1
4.9
4.0
4.3
FY22E
9.0
10.0
7.0
5.0
4.9
3.9
4.3
16.8
13.7
3.1
15.5
13.2
2.3
14.6
12.8
1.8
14.8
13.3
1.6
17.1
15.8
1.3
18.5
17.2
1.3
18.5
17.3
1.2
18.4
17.4
1.0
81.1
44.0
2.4
44.6
47.0
53.8
24.4
28.7
34.0
33.6
85.0
43.2
2.3
44.3
46.7
54.2
23.6
28.0
33.6
35.8
86.2
48.0
2.3
43.4
45.8
52.2
21.8
27.1
32.9
33.3
83.5
43.5
2.1
41.0
42.2
50.0
22.8
27.5
30.0
30.7
88.8
42.4
2.1
39.7
40.7
51.3
23.5
26.8
29.7
31.5
86.6
42.2
2.0
38.6
40.1
51.1
25.1
29.3
31.0
34.1
85.9
41.6
2.0
37.9
39.2
51.1
23.8
27.8
31.2
31.8
85.1
43.1
2.0
38.3
39.7
50.6
23.7
27.8
31.3
30.2
Valuation
RoE
RoA
RoRWA
Book Value (INR)
Growth (%)
Price-BV (x)
Adjusted BV (INR)
Price-ABV (x)
EPS (INR)
Growth (%)
Price-Earnings (x)
Dividend Per Share (INR)
Dividend Yield (%)
19.4
1.9
2.7
123.7
36.5
122.4
20.4
15.3
4.0
18.3
1.8
2.5
143.7
16.2
141.8
24.3
19.3
4.8
17.9
1.8
2.4
167.9
16.9
5.4
165.4
5.5
28.4
16.7
32.1
5.5
0.6
17.9
1.8
2.4
204.8
22.0
4.4
193.9
4.7
33.9
19.4
26.9
7.8
0.9
16.5
1.8
2.4
273.9
33.8
3.3
262.8
3.5
39.6
16.9
23.0
9.0
1.0
16.4
1.9
2.7
311.8
13.8
2.9
297.9
3.1
48.0
21.2
18.9
12.0
1.3
16.5
1.9
2.9
357.4
14.6
2.5
338.5
2.7
55.2
14.9
16.5
9.6
1.1
17.1
1.9
3.0
412.9
15.5
2.2
392.9
2.3
65.8
19.2
13.8
10.2
1.1
19 April 2020
12
 Motilal Oswal Financial Services
HDFC Bank
NOTES
19 April 2020
13
 Motilal Oswal Financial Services
HDFC Bank
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial
products. MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are
available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a
registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and
National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National
Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance
Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate entities of Motilal Oswal Financial Services Limited are
available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report
should be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific
merchant banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the
website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated
from MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability
or use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong
Kong Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers
Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any
brokerage and investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is
intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as
"major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which
this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration
provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange
Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-
dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this
chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public
appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL
in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”,
of which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives have financial interest in the subject company, as they have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has received compensation for investment banking/merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
19 April 2020
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 Motilal Oswal Financial Services
HDFC Bank
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The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent
of MOFSL. 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. MOFSL will not treat recipients as
customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or
distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for
informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing
in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances.
The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this
document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this
document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views
expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade
securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of
the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and
should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make
modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from
time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to
perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a
separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of
information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or
may not subscribe to all the views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on,
directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or
entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law,
regulation or which would subject MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in
all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.
Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost
revenue or lost profits that may arise from or in connection with the use of the information.
The person accessing this information specifically agrees to exempt MOFSL or any of its
affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such
misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages,
expenses that may be suffered by the person
accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263;
Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth
Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is
a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt.
Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL.
Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no
assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance
Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.
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