Kotak Mahindra Bank
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27 July 2020
1QFY21 Results Update | Sector: Financials
CMP: INR1,322
TP: INR1,300 (-2%)
Neutral
Moratorium book plunges; Loan book declines sharply
Remain watchful of asset quality trajectory
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
Financials & Valuations (INR b)
Y/E MARCH
FY20 FY21E
NII
135.0 149.1
OP
100.2 109.8
NP
59.5
54.5
Cons. NP
85.9
81.8
NIM (%)
4.3
4.3
EPS (INR)
31.1
28.0
EPS Gr. (%)
22.0
(9.9)
ABV. (INR)
234.2 283.7
Cons. BV. (INR)
348.3 377.4
Ratios
Cons. RoE (%)
RoE (%)
RoA (%)
Valuations
P/BV (X) (Cons.)
P/ABV (X) (Adj.)
P/E(X) (Adj.)
12.8
13.1
1.8
3.8
3.8
28.8
10.9
9.9
1.4
3.5
3.2
32.0
KMB IN
1,907
2616.9 / 35.7
1740 / 1000
-9/-10/-13
6487
73.9
KMB reported a mixed quarter with weak earnings performance, affected
by lower fee income, 32bp QoQ decline in margins and sharp sequential
decline in loan growth. On the asset quality front, slippages were elevated,
driving 45bp QoQ increase in GNPA ratio while provision coverage remained
broadly stable. Moratorium 2.0 declined to 9.65% with 95% coming from
moratorium 1.0. However, moratorium figures are not comparable due to a
different computation methodology used across banks.
On the business front, loan book declined 7% QoQ, affected by the (a)
lockdown, and (b) bank’s cautious approach in a weak macro environment.
SA deposits’ growth was steady, driving further improvement in CASA mix
to 56.7%.
We have cut our PAT estimate for FY21/22E by 10%/11%, primarily to factor
in higher credit cost, lower growth and other income. Maintain
Neutral.
KMB reported 9% YoY decline in 1QFY21 standalone PAT to INR12.4b (6%
below our estimates), affected by higher decline in other income and
elevated provisions toward COVID-19 of INR6.2b. KMB, thus, has total
COVID-19 provisions of INR12.6b (0.6% of advances).
NII grew ~17% YoY to INR37.2b (in-line) while margins contracted 32bp QoQ
to ~4.4%. Other income declined 41% YoY, affected by lower fee income
(33% YoY decline). Opex also decreased 10% YoY (19% QoQ decline),
resulting in PPoP growth of 9% YoY.
Loan book declined 2% YoY (7% QoQ decline) to INR2.0t while deposits
increased 12% YoY to INR2.6t. CASA deposits grew ~26% YoY and CASA mix,
thus, improved to 56.7% (v/s 56.2% in FY20). CASA + TD (below INR50m)
mix increased to ~90% of total deposits (v/s 86% in 4QFY20).
On the asset quality front, slippages came in at ~INR8.0b (1.5% annualized).
Thus, GNPA/NNPA ratio increased 45bp/16bp QoQ to ~2.7%/0.9%. PCR
ratio was broadly stable at ~68%. SMA-2 advances stood at ~INR1b (5bp of
loans).
Moratorium 2.0
declined to ~9.7% of loans as on 30
th
Jun’20 (v/s 26% in
Apr’20). ~95% of loans under moratorium 2.0 were from moratorium 1.0.
Further, ~80% of loans are secured under moratorium 2.0.
Subsidiaries
reported mixed performance with PAT declining 56% YoY for
Kotak Prime, 20% YoY increase for Kotak Life and 54% YoY increase for
Kotak Securities.
Moratorium:
Focus remains on assessing the viability of the borrower
(ability to repay). Customers who seem unviable have not been provided
the moratorium 2.0 and the bank prudently recognized the stress earlier.
Thus, this resulted in some of the accounts slipping during the quarter.
Loan book declines; Moratorium portfolio plunges to ~9.7%
FY22E
168.1
124.0
69.8
102.0
4.4
35.3
25.9
313.0
428.1
12.0
10.8
1.6
3.1
2.9
25.4
*Adjusted for Investment subs
Shareholding pattern (%)
As On
Jun-20 Mar-20
Promoter
26.1
29.9
DII
15.3
12.6
FII
42.2
39.2
Others
16.5
18.3
FII Includes depository receipts
Jun-19
30.0
11.7
40.5
17.8
Highlights from management commentary
Research Analyst: Nitin Aggarwal
(Nitin.Aggarwal@MotilalOswal.com) |
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 research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
Kotak Mahindra Bank
Collection trends have improved in the portfolio, which have come outside of
moratorium 1.0.
KMB has disbursed loans of INR5.5b under MSME credit guarantee scheme
during 1QFY20 and disbursed another INR35b during Jul’20.
Valuation and view
KMB continues to report steady progress in building a strong liability franchise with
CASA ratio improving further to ~57%. However, loan growth has reported sharp
deceleration as KMB remains cautious in a weak macro environment, which got
further aggravated due to the COVID-19. We estimate KMB to maintain a cautious
stance in lending though reduction in SA/TD rates should aid margins to a certain
extent. On the asset quality front, though NPLs have increased during the quarter,
moratorium book declined to 9.65%. The bank has further indicated that ~80% of
the moratorium book is secured, and therefore, will have lower LGDs. However,
with overdue accounts at >6% of loans besides the moratorium book, we expect NPL
formation to increase in the near term. Thus, we estimate 1.6% credit cost for FY21
(v/s avg. of 0.5% over FY18-20). Maintain
Neutral
with revised target price of
INR1,300 (2.7x FY22E ABV + INR426 for subs).
Quarterly performance
Y/E March
Net Interest Income
% Change (Y-o-Y)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (Y-o-Y)
Other Provisions
Profit before Tax
Tax Provisions
Net Profit
% Change (Y-o-Y)
Deposits (INRb)
Loans (INRb)
Deposit growth (%)
Loan growth (%)
Asset Quality
Gross NPA (%)
Net NPA (%)
PCR (%)
E:MOFSL Estimates
1Q
31,730
22.8
13,047
44,778
20,789
23,989
18.0
3,168
20,822
7,220
13,602
32.7
2,329
2,080
22.8
17.6
2.2
0.7
67.0
FY20
2Q
3Q
33,496 34,295
24.6
16.7
12,244 13,414
45,740 47,710
20,654 23,829
25,086 23,881
19.7
23.2
4,079
4,440
21,006 19,441
3,762
3,482
17,245 15,959
51.1
23.6
2,331
2,394
2,133
2,168
13.2
12.0
15.3
10.4
2.3
0.9
64.0
2.5
0.9
64.4
4Q
35,597
16.8
14,894
50,490
23,238
27,253
19.4
10,475
16,778
4,112
12,666
-10.0
2,628
2,197
16.4
6.8
2.3
0.7
69.0
1Q
37,239
17.4
7,735
44,974
18,737
26,237
9.4
9,620
16,617
4,173
12,445
-8.5
2,615
2,040
12.3
-1.9
2.7
0.9
68.4
FY21E
2QE
3QE
36,978 37,574
10.4
9.6
11,763 13,591
48,740 51,166
21,284 23,501
27,456 27,664
9.5
15.8
9,972
9,492
17,484 18,172
4,146
4,630
13,338 13,542
-22.7
-15.1
2,676
2,786
2,171
2,241
14.8
16.4
1.8
3.4
2.7
0.9
68.0
3.0
1.0
68.0
FY20
4QE
37,313
4.8
16,334
53,647
25,162
28,485
4.5
7,849
20,636
5,424
15,212
20.1
2,944
2,285
12.0
4.0
3.4
1.0
70.4
134,997
20.5
53,721
188,718
88,509
100,208
20.0
22,162
78,047
18,575
59,472
22.2
2,628
2,197
16.4
6.8
2.3
0.7
69.0
FY21E
149,104
10.4
49,423
198,527
88,684
109,843
9.6
36,933
72,910
18,373
54,536
-8.3
2,944
2,285
12.0
4.0
3.4
1.0
70.4
(INRm)
FY21E
V/s
1QE Our Est
37,540 -1%
18.3
12,897 -40%
50,437 -11%
23,266 -19%
27,171 -3%
13.3
9,568
1%
17,603 -6%
4,420 -6%
13,183 -6%
-3.1
2,691 -3%
2,217 -8%
15.5 -326
6.6 -852
2.3
0.7
69.4
40
15
-102
27 July 2020
2
 Motilal Oswal Financial Services
Kotak Mahindra Bank
Consolidated earnings snapshot
Y/E March
Kotak Bank
Kotak Prime
Kotak Securities
KMCC
Kotak Life
AMC & Trustee
Intl. subs
KIL
Others
Kotak Consol
Minority/associate adjustments
Kotak Cons. Reported PAT
Contribution of bank in total profits
1Q
10,250
1,390
1,300
250
1,170
510
330
480
280
15,960
(220)
15,740
65%
FY19
2Q
11,420
1,570
1,120
140
1,270
520
470
450
130
17,090
380
17,470
65%
3Q
12,910
1,390
990
30
1,250
760
370
400
110
18,210
230
18,440
70%
4Q
14,080
1,640
1,110
210
1,380
750
320
730
150
20,370
10
20,380
69%
1Q
13,600
1,530
1,100
450
1,340
730
290
630
170
19,840
(520)
19,320
70%
FY20
2Q
17,240
1,720
1,490
10
1,440
850
340
670
220
23,980
90
24,070
72%
3Q
15,960
1,870
1,280
400
1,660
910
260
640
300
23,280
210
23,490
68%
4Q
12,670
1,610
1,630
(70)
1,650
880
300
770
70
19,510
(460)
19,050
67%
FY21
1Q
12,440
680
1,690
60
1,610
710
540
430
350
18,510
20
18,530
67%
Highlights of management commentary
Opening remarks
The economy saw sharp recovery trends during Jun’20, while Jul’20 witnessed
flattening trends.
If the virus gets stabilized by Oct-Nov’20, expect gradual recovery trend in the
economy from FY22E.
Moratorium update
Focus remains on assessing the viability of the borrower (ability to repay).
Customers who seem unviable have not been provided the moratorium 2.0 and
the bank prudently recognized the stress earlier. Thus, this resulted in some of
the accounts slipping during the quarter.
The collection trends have improved in the portfolio, which have come outside
Moratorium 1.0 over Jun-Jul’20 (v/s Apr-May’20).
P&L and balance sheet related
KMB has disbursed INR5.5b under the MSME credit guarantee scheme during
1QFY20. It has disbursed another INR35b in Jul’20.
KMB is sitting on significant bond gains (~INR30b) and will monetize it at an
appropriate time.
The bank has an LCR of 150% on a daily average basis.
The bank witnessed strong growth in retail SA deposits.
Total consolidated advances stood at INR2.31t while customer assets stand at
INR2.45t.
Business strategy
Mortgage business will be a key segment for growth in the near term. Also,
focus is on disbursing loans to the MSME segment (still some opportunity
available to lend under credit guarantee scheme).
Expect better fee income trends in the MSME segment.
Overall working capital utilization limit has come down due to muted economic
activity trends.
27 July 2020
3
 Motilal Oswal Financial Services
Kotak Mahindra Bank
Collection front:
Expect improvement in resolutions trends; strengthened the
collection team; enabled multiple digital repayment tools.
CV segment:
Disbursements are quite low in this segment; however, it has
improved post May’20. Traffic movement suggests operations at 75% of pre-
COVID levels. Collection trends were better in Jun-Jul’20 (v/s Apr-May’20).
Construction equipment
segment is reflecting better trends and is improving
MoM.
Agri business:
Collection efficiency is quite good in this portfolio. Cash flows of
borrowers have not been impacted severely.
Tractor loans:
Higher disbursements in this segment, customer cash flows are
good and collection efficiency is close to pre-COVID levels.
Corporate portfolio:
Conservative in lending to this segment; cautious in
lending, especially to companies with high fixed cost, high leverage, etc.
SME portfolio:
Cleaned this portfolio last year; significant under-utilization of
limits due to low economic activity; optimistic in growing this segment. Market
share in the SME segment is around 2%.
HFC exposure:
Increase in exposure to top-rated HFCs only.
Unsecured business:
Remains cautious in this portfolio as it does not see risk-
reward in the current environment.
Overall, the bank sees huge opportunity in the non-credit risk business (such as
wealth management business).
Some opportunity exists in a special situation fund (significantly higher return);
some pockets of SME business, Home loans and on the LAP side.
Cost of funds provides competitive advantage. Expect cost of funds to further
trend downwards.
Future of branches:
In the post COVID era, lower branch expansion is expected
while higher digital adoption would be seen.
Asset quality
Total provisions (including COVID, contingent, NPA provisioning) stood at 107%
of the total GNPAs.
Single large accounts (3 digits) slipped during the quarter. This account is still
standard in other banks.
Total overdue accounts stood at INR130b (as on 29
th
Feb’20), of which, INR5b
slipped during this quarter.
Subsidiary business
Kotak Life:
Individual APE grew 8% YoY while renewal premium was affected by
the extension of grace period and lockdowns. Group business was affected due
to lower corporate activity. Overall, PAR, Non-PAR and ULIPs continued to be
balanced. Individual protection share grew from 6.2% in 1QFY20 to 9.3% in
1QFY21. Total insurance AUM grew by 17% YoY.
General Insurance
reported stable trends; underwriting practices were strong;
profits improved due to lower claims.
Kotak Securities:
Intra-day volumes have picked up; total number of demat
accounts stand at 43.1m. Kotak Institutional equity also gained market share
27 July 2020
4
 Motilal Oswal Financial Services
Kotak Mahindra Bank
Loan growth declined ~7% QoQ (- 2% YoY) affected by cautious stance and
COVID-19
Corporate banking and business
banking formed 37.3% of
overall book.
Loan growth declined 7.2% QoQ (-1.9% YoY), led by moderation across
segments like corporate and business banking, CV/CE and consumer banking
portfolio. Corporate and business banking declined by 6.5% YoY (-10.2% QoQ)
while CV/CE book decreased 7.4% YoY (-4.2% QoQ).
Within retail, home loans and LAP grew 8.3% YoY (-2.8% QoQ) while personal
loans, credit card and small businesses declined 4.3% YoY (-7.6% QoQ). Agri
book grew 4.1% YoY (-5.9% QoQ) to INR270.5b.
Personal loans, credit cards and small business loans formed 15.5% of the
overall loans (v/s 15.9% in 1QFY20), while home loans constituted 23.1% of the
total book.
Healthy traction in deposits continue; CASA ratio improves 50bp QoQ to
56.7%
Avg. SA balances grew 34%
YoY, whereas avg. CA
balances grew 10% YoY.
SA deposits grew 34.5% YoY/4.9% QoQ to ~INR1.1t, while CA deposits grew
5.6% YoY (-10.3% QoQ) to INR386b. SA deposits, as a proportion of overall
deposits, improved to 42.0% (v/s 35.0% in 1QFY20).
Average SA balance grew 34% YoY to INR106k. Weighted average SA rate for the
quarter was 4.22% (v/s 5.51% in 1QFY20).
TD declined 1.4% YoY (-1.8%% QoQ) to INR1.13t. TD sweep accounts formed
~7.2% of the total deposits (INR676b).
CASA and Retail TDs constitute 90% of the total deposits (v/s 82% in 1QFY20).
Asset quality deteriorates; SMA-2 stable at 0.05%
KMB reported higher slippages of INR7.9b, which resulted in an increase in
absolute GNPA/NNPA by 12%/14% QoQ to INR56b/18b, respectively.
GNPA/NNPA ratio, thus, increased 45bp/16bp QoQ to 2.7%/0.87%. PCR
moderated slightly by 63bp QoQ to 68.4%.
The bank has created COVID-19 related provision of INR6.16b, taking the total
COVID-19 related provisions to INR12.3b (0.62% of loans). Total provisions
including specific, standard and COVID stands higher than the GNPA of the
banks.
The bank has further highlighted that the moratorium book has declined to
~9.65% as on Jun’20 (v/s ~26% as on Apr’20). Of this, 9.15% is from Moratorium
1.0. ~80% of Moratorium 2.0 is secured. SMA 2 outstanding for the bank stood
at INR960m, which corresponds to 6bp on advances (v/s 16bp in 1QFY21).
Mixed performance by subsidiaries; Auto loan growth declines
Proportion of equity AUM
stood at 39.6% of overall
AUM v/s 42.0% in 4QFY20.
Profitability in securities business came in at INR1.7b (+54%/4% YoY/QoQ).
K-Sec market share declined slightly to ~1.6% (v/s 1.7% in 4QFY20).
Profitability in prime business moderated to INR680m (-56% YoY/-58% QoQ)
while NNPA increased 47bp to 1.07%, auto loans declined 17%/8% YoY/QoQ.
Profitability in asset management business came in at INR710m (-19% QoQ)
while average AUM increased 4% YoY (-10% QoQ), led by moderation in equity
AUM (3% YoY/-15% QoQ), which constitutes 39.6% of total AUM.
Life insurance profit increased 20% YoY to INR1.61b, even as premium income
declined 26% YoY.
5
27 July 2020
 Motilal Oswal Financial Services
Kotak Mahindra Bank
Exhibit 1: Kotak Prime - Loan growth declines 17%/8%
YoY/QoQ
Auto Loans (INR b)
Other Loans (INR b)
Exhibit 2: Domestic AUM grew 13% YoY
Debt
Offshore Funds
Equity
Alternate assets
PMS
Insurance
13 12 12 13 17 12 12 12 12 12 13 14 13
4 4 3 3 3 3 3 5 5 3 6 7 6
16 17 18 19 17 17 16 14 13 17 12 10 10
2 1 2 2 2 2 1 2 2 1 1 1 1
21 24 26 27 26 27 29 28 29 27 30 26 28
44 42 39 37 40 39 39 39 39 39 38 42 42
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 3: K-Sec: PAT grew by 54% YoY to INR1.7b
Tot. Inc.
33
25
33 34 34 33
31
PAT
PATM (%)
37
28 27
28 27
31
35 37
Exhibit 4: K-Sec market share declined to 1.6%
30
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 5: Investment banking reported PAT of INR60m
PAT
Exhibit 6: Kotak AMC: AUM mix (INRb)
Eq. AUM
PMS AUM
Offshore AUM
725
799
733
679
626
592
581
510 543
469 490
406
330 318 319 316 312 317
320
244 288 329 345 347
224 246
30
17
36
39
38
35
34
34
40
36
36
26
28
Source: MOFSL, Company
Source: MOFSL, Company
27 July 2020
6
 Motilal Oswal Financial Services
Kotak Mahindra Bank
Valuation view
The bank continues to maintain a cautious stance in lending in a weak macro
environment, which got further aggravated due to the COVID-19 crisis. Thus, we
expect loan growth trends to remain muted at 7% over FY20-22E.
On the other hand, the bank continues to strengthen its liability franchise with
CASA ratio remaining the highest at ~57%. It continues to surprise on the
positive side. This has enabled the bank to reduce its cost of funds and achieve
competitive position (cost of deposits comparable to large banks now), which
will help manage margin pressure to a certain extent.
On the asset quality front, although Moratorium 2.0 has declined to ~9.65% of
loans; however, with overdue accounts at >6% of loans, we expect NPL
formation to rise in the coming quarters. Thus, we expect slippage ratio at 2.8%
for FY21.
The bank has healthy capitalization (Tier 1 of 21.1%), which puts it in a
comfortable position to manage the current crisis. Further, the capital-light
nature of its capital market/asset management businesses can provide an
upside to its RoE as macro recovery takes place and corporate earnings cycle
improves.
Neutral with a target price of INR1,300:
KMB continues to report steady
progress in building a strong liability franchise with CASA ratio improving further
to ~57%. However, loan growth has reported sharp deceleration as KMB
remains cautious in a weak macro environment, which got further aggravated
due to the COVID-19. We estimate KMB to maintain a cautious stance in lending
though reduction in SA/TD rates should aid margins to a certain extent. On the
asset quality front, though NPLs have increased during the quarter, moratorium
book declined to 9.65%. The bank has further indicated that ~80% of the
moratorium book is secured, and therefore, will have lower LGDs. However,
with overdue accounts at >6% of loans besides the moratorium book, we expect
NPL formation to increase in the near term. Thus, we estimate 1.6% credit cost
for FY21 (v/s avg. of 0.5% over FY18-20). Maintain
Neutral
with revised target
price of INR1,300 (2.7x FY22E ABV + INR426 for subs).
Exhibit 7: SOTP-based pricing
Value
(INR B)
2,034
1,730
236
69
221
187
13
21
153
132
21
375
843
2,572
Value
(USD B)
26.8
22.8
3.1
0.9
2.9
2.5
0.2
0.3
2.0
1.7
0.3
4.9
11.1
33.9
INR
per share
1,028
875
119
35
112
94
7
11
77
67
10
190
426
1,300
33%
% To
Total
79
67
9
3
9
7
1
1
6
5
1
15
33
100
Rationale
2.7x FY22E Net-worth
2.7x FY22E Net-worth
2.7x FY22E Net-worth
6.5% of FY22E AUMs
Lending Business
Kotak Mahindra Bank
Kotak Prime (Car and other loans)
Kotak Investment Company (LAS)
Asset Management Business
Domestic Mutual Fund
Alternative Assets
Offshore Funds
Capital Markets related Business
Kotak Securities
Kotak Investment Banking (KMCC)
Kotak Life Insurance
Subs value @ 20% discount
Target Value (Post 20% holding discount)
- contribution of subs/associates to total PT
17x FY22E PAT
2.5x FY22E Net-worth
3.2x FY22E EV
27 July 2020
7
 Motilal Oswal Financial Services
Kotak Mahindra Bank
Exhibit 8: We cut FY21/22 estimates by 10%/11% as we factor in lower business growth, lower other income and higher
credit cost
INR b
Net Interest Income
Other Income
Total Income
Operating Expenses
Operating Profits
Provisions
PBT
Tax
Standalone PAT
Consolidated PAT
Loans
Deposits
Margins (%)
SA RoA (%)
Core RoE (%)
EPS
BV
Consol BV
FY21
153.9
56.8
210.7
95.4
115.3
34.5
80.8
20.4
60.4
87.6
2,329
2,944
4.38
1.61
11.7
45.8
284.1
393.3
Old Est.
FY22
175.9
62.5
238.4
105.1
133.3
28.3
105.0
26.5
78.6
110.2
2,586
3,356
4.53
1.89
13.5
57.6
323.9
450.0
Revised Est.
FY21
149.1
49.4
198.5
88.7
109.8
36.9
72.9
18.4
54.5
81.8
2,285
2,944
4.26
1.43
9.9
41.4
309.3
377.4
FY22
168.1
54.4
222.4
98.4
124.0
30.6
93.4
23.5
69.8
102.0
2,537
3,356
4.38
1.64
10.8
51.5
343.4
428.1
Change (%)/bps
FY21
FY22
-3.1
-4.5
-13.0
-13.0
-5.8
-6.7
-7.0
-6.3
-4.7
-7.0
6.9
8.4
-9.7
-11.1
-9.7
-11.1
-9.7
-11.1
-6.6
-7.5
-1.9
-1.9
0.0
0.0
(11)
(16)
(18)
(26)
(181)
(270)
-9.7
-10.5
8.9
6.0
-4.0
-4.9
27 July 2020
8
 Motilal Oswal Financial Services
Kotak Mahindra Bank
Story in Charts
Exhibit 9: Deposits grew 12% YoY to INR2.6t
Deposits (INRb)
20
14 14 14
21 22
16
24
18 17
13 12
YoY growth (%)
23
16
12
Exhibit 10: CASA ratio improves ~50bp to 56.7%
CASA Ratio (%)
17 17
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 11: Margins declined 32bp QoQ to 4.4%
NIM(%)
Exhibit 12: Asset quality deteriorates with PCR declining to
68.4%
GNPA (%)
57
56
52 52 50 53
NNPA (%)
PCR (%)
52 52
66 65 67 64 64 69 68
61 63
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 13: Trend in composition of PAT
Kotak Bank
31%
32%
40%
31%
Exhibit 14:
Growth in standalone PAT v/s subsidiaries’ PAT
Kotak Bank
32%
PAT from subsidiaries
34%
32%
31%
33%
PAT from subsidiaries
69%
68%
60%
69%
66%
68%
69%
67%
68%
Source: MOFSL, Company
Source: MOFSL, Company
27 July 2020
9
 Motilal Oswal Financial Services
Kotak Mahindra Bank
Exhibit 15: One-year forward P/B
P/B (x)
5.5
4.3
3.0
1.8
0.5
3.1
1.8
2.3
3.3
Min (x)
Avg (x)
+1SD
3.8
Max (x)
-1SD
4.4
45.0
35.0
25.0
15.0
5.0
24.7
13.0
17.9
Exhibit 16: One-year forward P/E
P/E (x)
Min (x)
Avg (x)
+1SD
31.6
Max (x)
-1SD
37.0
27.6
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 17: DuPont Analysis: We expect KMB to deliver FY22 RoA/RoE of 1.6%/10.7%
Y/E March
Interest Income
Interest Expense
Net Interest Income
Fee income
Trading and others
Non-Interest income
Total Income
Operating Expenses
Employee cost
Others
Operating Profits
Core operating Profits
Provisions
NPA
Others
PBT
Tax
RoA
Leverage (x)
RoE
FY16
9.0
5.2
3.8
1.3
0.1
1.4
5.2
3.0
1.5
1.5
2.2
2.1
0.5
0.4
0.1
1.7
0.6
1.1
8.1
9.3
FY17
8.70
4.71
3.99
1.49
0.22
1.71
5.70
2.76
1.36
1.40
2.94
2.72
0.41
0.30
0.11
2.53
0.85
1.68
7.9
13.2
FY18
8.24
4.26
3.98
1.60
0.09
1.69
5.67
2.68
1.23
1.45
2.99
2.90
0.39
0.26
0.13
2.59
0.89
1.70
7.4
12.5
FY19
8.28
4.40
3.88
1.59
0.02
1.61
5.50
2.60
1.10
1.50
2.89
2.87
0.33
0.29
0.04
2.56
0.87
1.69
7.2
12.1
FY20
8.01
3.99
4.02
1.45
0.14
1.60
5.61
2.63
1.16
1.47
2.98
2.84
0.66
0.42
0.24
2.32
0.55
1.77
7.3
12.9
FY21E
7.65
3.74
3.91
1.17
0.13
1.29
5.20
2.32
1.06
1.27
2.88
2.75
0.97
0.94
0.03
1.91
0.48
1.43
6.9
9.9
FY22E
7.49
3.55
3.94
1.16
0.12
1.27
5.21
2.31
1.04
1.27
2.90
2.79
0.72
0.68
0.04
2.19
0.55
1.64
6.6
10.7
27 July 2020
10
 Motilal Oswal Financial Services
Kotak Mahindra 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 Operating Profits
Growth (%)
Provisions (excl. tax)
PBT
Tax
Tax Rate (%)
PAT
Growth (%)
Consolidated PAT
Growth (%)
FY16
163.8
94.8
69.0
11.7
26.1
95.1
4.6
54.7
40.4
-4.3
38.3
-1.6
9.2
31.2
10.3
33.1
20.9
-15.7
34.6
-5.4
FY17
177.0
95.7
81.3
17.8
34.8
116.0
22.0
56.2
59.8
48.1
55.4
44.8
8.4
51.5
17.4
33.7
34.1
63.2
49.4
42.8
FY18
197.5
102.2
95.3
17.3
40.5
135.8
17.1
64.3
71.6
19.6
69.5
25.3
9.4
62.2
21.3
34.3
40.8
19.7
62.0
25.5
FY19
238.9
126.8
112.1
17.6
46.6
158.6
16.8
75.1
83.5
16.6
82.8
19.2
9.6
73.9
25.2
34.1
48.7
19.1
72.0
16.2
FY20
269.3
134.3
135.0
20.5
53.7
188.7
19.0
88.5
100.2
20.0
95.4
15.2
22.2
78.0
18.6
23.8
59.5
22.2
85.9
19.3
FY21E
291.9
142.8
149.1
10.4
49.4
198.5
5.2
88.7
109.8
9.6
104.9
10.0
36.9
72.9
18.4
25.2
54.5
-8.3
81.8
-4.8
(INRb)
FY22E
319.8
151.8
168.1
12.7
54.4
222.4
12.0
98.4
124.0
12.9
119.0
13.4
30.6
93.4
23.5
25.2
69.8
28.0
102.0
24.6
Balance Sheet
Y/E March
Equity Share Capital
Preference Share Capital
Reserves & Surplus
Net Worth
Of which Equity Net-worth
Deposits
Growth (%)
of which CASA Dep
Growth (%)
Borrowings
Other Liabilities & Prov.
Total Liabilities
Current Assets
Investments
Growth (%)
Loans
Growth (%)
Fixed Assets
Other Assets
Total Assets
FY16
9.2
0.0
230.5
239.6
239.6
1,386.4
11.8
527.8
27.8
209.8
86.8
1,922.6
108.8
512.6
-0.1
1,186.7
10.9
15.5
99.0
1,922.6
FY17
9.2
0.0
267.0
276.2
276.2
1,574.3
13.5
692.6
31.2
211.0
84.5
2,145.9
225.7
450.7
-12.1
1,360.8
14.7
15.4
93.2
2,145.9
FY18
9.5
0.0
365.3
374.8
374.8
1,926.4
22.4
977.7
41.2
251.5
96.5
2,649.3
196.2
645.6
43.2
1,697.2
24.7
15.3
95.1
2,649.3
FY19
9.5
5.0
414.5
429.0
424.0
2,258.8
17.3
1,185.9
21.3
322.5
111.4
3,121.7
246.8
711.9
10.3
2,056.9
21.2
16.5
89.6
3,121.7
FY20
9.6
5.0
475.6
490.2
485.2
2,628.2
16.4
1,476.2
24.5
379.9
104.2
3,602.5
532.9
750.5
5.4
2,197.5
6.8
16.2
105.4
3,602.5
FY21E
9.9
5.0
602.0
616.9
611.9
2,943.6
12.0
1,674.9
13.5
363.8
108.4
4,032.6
469.6
975.7
30.0
2,285.4
4.0
17.2
284.7
4,032.6
FY22E
9.9
5.0
669.3
684.2
679.2
3,355.7
14.0
1,949.7
16.4
351.0
114.9
4,505.8
481.9
1,180.6
21.0
2,536.8
11.0
18.2
288.3
4,505.8
Asset Quality
Y/E MARCH
GNPA
NNPA
GNPA Ratio (%)
NNPA Ratio (%)
Slippage Ratio (%)
Credit Cost (%)
PCR (Excl. Tech. write off) (%)
FY16
28.4
12.6
2.36
1.06
2.46
0.76
55.5
FY17
35.8
17.2
2.59
1.26
1.15
0.48
52.0
FY18
38.3
16.7
2.23
0.98
1.00
0.41
56.5
FY19
44.7
15.4
2.14
0.75
0.89
0.45
65.4
FY20
50.3
15.6
2.25
0.71
1.38
0.66
69.0
FY21E
80.4
23.8
3.43
1.04
2.80
1.60
70.4
FY22E
95.6
27.2
3.67
1.07
1.80
1.20
71.6
27 July 2020
11
 Motilal Oswal Financial Services
Kotak Mahindra Bank
Financials and Valuations
Ratios
Y/E March
Yield and Cost Ratios (%)
Avg. Yield-Earning Assets
Avg. Yield on loans
Avg. Yield on Investments
Avg. Cost-Int. Bear. Liabilities
Avg. Cost of Deposits
Interest Spread
Net Interest Margin
Capitalization Ratios (%)
CAR
Tier I
Tier II
Asset-Liability Profile (%)
Loans/Deposit Ratio
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 Expenses
Investment/Deposit Ratio
FY16
12.0
13.5
8.7
7.7
7.4
6.1
5.1
FY17
9.6
10.5
7.9
5.7
5.6
5.0
4.4
FY18
9.0
9.6
7.5
5.2
5.1
4.5
4.3
FY19
8.9
9.8
7.6
5.3
5.3
4.5
4.2
FY20
8.6
9.9
7.6
4.8
4.9
4.9
4.3
FY21E
8.3
9.6
7.4
4.5
4.3
5.3
4.3
FY22E
8.3
9.5
7.4
4.3
4.1
5.4
4.4
17.0
16.1
0.9
17.2
16.5
0.7
18.4
17.8
0.6
17.9
17.4
0.5
17.9
17.3
0.6
20.9
20.3
0.7
19.8
19.1
0.7
85.6
38.1
2.8
57.5
58.8
57.9
25.2
27.5
51.2
37.0
86.4
44.0
2.6
48.4
50.3
54.1
26.2
30.0
49.3
28.6
88.1
50.8
2.4
47.3
48.1
51.7
28.3
29.8
45.9
33.5
91.1
52.5
2.4
47.4
47.6
53.1
28.9
29.4
42.4
31.5
83.6
56.2
2.5
46.9
48.1
49.9
25.9
28.5
44.2
28.6
77.6
56.9
2.2
44.7
45.8
48.9
22.4
24.9
45.4
33.1
75.6
58.1
2.2
44.3
45.3
47.5
22.2
24.4
45.0
35.2
Profitability Ratios and Valuation
RoE (%)
RoA (%)
Consolidated ROE (%)
Consolidated ROA (%)
RoRWA (%)
Consolidated BV (INR)
Growth (%)
Price-Consol BV (x)
Standalone Adjusted BV (INR)
Growth (%)
Price-ABV (x)
Standalone EPS (INR)
Growth (%)
Price-Earnings (x)
11.0
1.4
10.4
1.8
1.1
181.9
10.8
121.6
18.2
12.4
-9.0
13.2
1.7
12.8
1.9
1.5
209.1
15.0
6.3
138.8
14.2
6.5
18.6
50.1
48.3
12.5
1.7
12.3
2.0
1.5
264.9
26.7
5.0
177.6
28.0
5.0
21.8
17.4
41.1
12.2
1.7
12.4
2.0
1.6
302.7
14.3
4.4
203.2
14.4
4.4
25.5
17.0
35.1
13.1
1.8
12.8
2.1
1.9
348.3
15.1
3.8
234.2
15.3
3.8
31.1
22.0
28.8
9.9
1.4
10.9
1.8
1.5
377.4
8.3
3.5
283.7
21.1
3.2
28.0
-9.9
32.0
10.8
1.6
12.0
1.9
1.7
428.1
13.4
3.1
313.0
10.3
2.9
35.3
25.9
25.4
27 July 2020
12
 Motilal Oswal Financial Services
Kotak Mahindra 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 does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
27 July 2020
13
 Motilal Oswal Financial Services
Kotak Mahindra Bank
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
********************************************************************************************************************************
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
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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)
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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,
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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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