Sector Update | Technology
Sector Update | 6 August 2020
Technology
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Acceleration in technology spend at top BFSI firms
Remain buoyant, also aided by certain one-time increases in spends
Earlier edition of this note
As we anticipated in an earlier edition of this note (link), technology spending at
the top global BFSI firms indeed surprised in 2QCY20.
Growth in aggregate technology spend in the 5 key US banks – JPM, Citi, BofA,
MS, and Bancorp – accelerated to 7% YoY in Jun’20 (v/s 5% in Mar’20).
Barring Citi, spending growth trends at other 4 banks were robust (9–14%, YoY).
Compared with 1QCY20, growth (YoY decline) in technology spend accelerated
(moderated) across most of the key European BFSI firms (e.g., Credit Suisse,
UBS, and Banco Santander). Adjusted for one-offs and non-cash items, while
technology spend at DB remained stable, that at Barclays declined.
For numerous enterprises globally (including BFSI), tech spending decisions over
Mar–Jun’20 were largely reactive, rather than proactive.
In the wake of the COVID-19, firms were compelled to incur certain one-time
spends to ensure business continuity. These included the purchase of hardware,
software licenses and cloud migrations for remote work access etc.
Similarly, as global banks struggled to cope up with the herculean task of
distributing stimulus funds within a short time frame, we understand a number
of them had to make one-time investments toward reconfiguring their systems.
These spends were one-time events and are unlikely to recur going forward.
Not surprisingly, almost all of the banks hinted at a phenomenal increase in
customer engagement through digital channels, driven by lockdowns.
We postulated that this increase in digital engagement, led by a lack of choice,
should eventually result in permanent change in customer behavior.
Commentary of global banks in 2QCY20 has reinforced this argument. Even as
economies re-open and social distancing protocols are relaxed, global banks
expect digital adoption by customers to remain sticky.
Accordingly, most of them outlined plans to turn more tech-driven and efficient.
This is also viewed as a way to optimize cost related to the physical channel.
Some BFSI firms (e.g., Barclays) made an explicit reference to the fact that
digital channels are able to offer engagement with clients while simultaneously
securing superior margins (v/s branches).
Some key technology themes echoed in the earnings calls of the global banks:
(a) accelerating the shift to digital, (b) cloud migration, (c) automation, and (d)
reshaping physical and branch presence.
Over the previous 9 quarters (post the segmental reclassification by TCS and
Infosys), aggregate BFSI revenue of Top 7 IT companies (includes ACN & CTSH)
closely tracked the aggregate technology spends at the Top 8 global banks.
This correlation is understandable given that the Top 8 global BFSI firms account
for a significant share of the aggregate IT spend by the BFSI vertical. Similarly,
the Top 7 IT vendors account for the lion’s share of their outsourcing ecosystem.
However, accelerated digitalization looks like more of a secular trend
Yet to reflect in BFSI revenues of Indian IT companies
Sudheer Guntupalli – Research analyst
(Sudheer.Guntupalli@MotilalOswal.com)
Research analyst: Mohit Sharma
(Mohit.Sharma@MotilalOswal.com) |
Heenal Gada
(Heenal.Gada@MotilalOswal.com)
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are
6 August 2020
advised to refer through important disclosures made at the last page of the Research Report.
1
 Motilal Oswal Financial Services
Sector Update | Technology
However, the correlation seems to have discontinued this time. Even as
aggregate tech spends at the Top 8 banks grew 3% YoY, the aggregate revenue
of the Top 7 IT companies from BFSI declined 4% YoY (USD). This divergence
looks sharper (~11 pp) if only Top-5 US banks are considered for this analysis.
Barring Infosys (-2% YoY, organic) and TechM (19% YoY), all other companies
reported sharp declines in BFSI revenue (USD). Robust growth at TechM was
largely led by a favorable base and ramp-up in an APAC-centric insurance deal.
The weakness in BFSI revenue of IT companies seems to be more pronounced in
Europe. This is partly attributable to the fact that Europe’s BFSI industry was
relatively late in giving compliance approvals and migrating to the remote work
model. Notably, the US BFSI industry itself reacted late in this regard.
Accordingly, we reckon India’s IT industry was disadvantaged on the supply side
for at least a month (i.e. April-20) within this vertical. A significant share of
spend during this time could have been executed through internal IT
teams/captives, where compliance approvals were obtained relatively early.
Moreover, we understand that exposure to niche sub-segments (e.g., Cards /
Payments), which are entwined with heavily troubled verticals, would have
shaved off some percentage points of growth for Indian IT companies.
In conclusion, we are of the view that this aberration is likely to be a one-off,
driven by: (1) spends in areas where IT companies do not participate, (2) supply-
side bottlenecks v/s captives in April, and (3) exposure to certain niche sub-
segments. It is unlikely that India’s IT industry is losing wallet share to captives.
On the contrary, some IT companies (such as Infosys and HCLT) indicated they
were benefitting from the consolidation opportunity and gaining share from tail
vendors. Our primary research corroborates this trend.
As proactive decision-making returns and one-offs are behind, the BFSI revenue
of IT companies is likely to again echo the strong and secular technology
spending trends at global banks.
Given the above themes, BFSI vertical should be a key driver of medium-term
growth for Indian IT and accordingly we expect companies with high BFSI
exposure to be major beneficiaries (e.g. TCS, INFO, WPRO, LTI, NIIT, MPHL).
In the last month, the Nifty IT rallied 18% (v/s 4% rally in the Nifty), led by the
strong surprise on cost and cash management by the sector in 1QFY21.
Despite the COVID-19 disruption, IT saw limited impact on revenue, strong deal
signings, and the closure of certain marquee deals (e.g., Vanguard – Infosys and
Ericsson – HCLT). This led the street to rethink the resilience, adaptability, and
terminal growth rates of the business model. In conjunction with the fall in risk-
free rates, the sector witnessed decent multiple re-ratings across the board.
As more of the physical economy migrates to the Digital space, Indian IT would
be the key second-order beneficiary, in our view. Accordingly, we believe this re-
rating was due. Despite the strong rally, we continue to prefer IINFO, TCS, HCLT,
and WPRO among the large-caps and LTI, MTCL, and PSYS among the mid-caps.
In this context, some of the promising low P/E stocks (such as HCLT, WPRO,
TECHM, PSYS, MPHL & CYL) outperforming the Nifty IT would not surprise us.
(1) Potential demand, pricing, and WC headwinds post the withdrawal of
stimulus (even in FY22) and (2) political uncertainty in the US around corporate
taxes in the wake of an impending election are key risks to monitor.
2
Is this divergence led by loss of wallet share to captives?
Valuation and view – Remain positive on the sector, but wary of risks
6 August 2020
 Motilal Oswal Financial Services
Sector Update | Technology
Exhibit 1:
Divergence between tech spends of Top-8 global banks & BFSI sales of Top-7 IT companies has never been this stark
Top 7 IT firms - BFSI ( YoY, USD)
9%
8%
5%
4%
3%
5%
2%
2%
4%
4%
5%
4%
4%
3%
1%
3%
3%
Tech Spend by Top 8 Global banks (YoY, USD)
-4%
Source: Company, MOFSL. Note: Top-8 global banks’ sample = JPM, Citi, BofA, Morgan Stanley, US Bancorp, DB, Credit Suisse and UBS. Top-7
IT firms’ sample = Accenture, TCS, Cognizant, Infosys, Wipro, HCL Tech and TechM.
Exhibit 2:
Divergence between tech spends of Top-5 US banks & BFSI sales of Top-7 IT companies has never been this stark
Top 7 IT firms - BFSI ( YoY, USD)
9%
9%
5%
7%
3%
8%
6%
2%
4%
4%
5%
6%
4%
5%
1%
-4%
5%
Tech Spend by Top-5 US banks (YoY, USD)
7%
Source: Company, MOFSL. Note: Top-5 US banks’ sample = JPM, Citi, BofA, Morgan Stanley and US Bancorp. Top-7 IT companies’ sample =
Accenture, TCS, Cognizant, Infosys, Wipro, HCL Tech and Tech Mahindra
Exhibit 3:
BFSI exposure of our Coverage Universe
45%
31%
32%
31%
22%
16%
20%
49%
50%
39%
32%
28%
Source: Company, MOFSL
6 August 2020
3
 Motilal Oswal Financial Services
Sector Update | Technology
Exhibit 4:
Key takeaways from 2QCY20 earnings calls of North American banks
S. No
1
2
Company
JPMorgan
BofA
Key Commentary
Increase in tech spend was healthy at 9% YoY.
Since the start of the pandemic, bank has seen increased levels of digital engagement. For example, quick
deposit enrollment is up by two times that of pre-COVID-19 levels.
Information processing and communication expense was up 9% YoY.
Digital log-ins were 2.3b in the quarter and increased 20% in the past 12 months.
More customers discovered convenience and safety in opening accounts digitally.
This health crisis has proven the value of the bank’s high-tech and high-touch strategy. Significant
investments and innovation in digital capabilities have been a valuable resource for customers,
complementing investments in financial centers.
Technology & communication expense grew 1% YoY in 2QCY20. Citigroup is expected to maintain its full-
year overall expenses at a roughly flattish level.
Citigroup benefitted from the investments made in digital capabilities, as digital deposit sales grew
meaningfully to as high as USD12b by the end of the quarter (growth of 33% QoQ).
Two-thirds of growth is coming from outside the branch footprint.
Continue to see momentum in digital efforts, as evidenced by strong growth in CitiDirect users and digital
account openings.
Technology and equipment expense declined 12% YoY in 2QCY20.
This was predominantly due to lower equipment expense related to the continued evaluation of
technology projects. Furthermore, it included one-off reversal of accrual of software expense.
Trends in digital usage were strong. Mobile deposited dollar volumes were up over 100% in the second
quarter (YoY). Digital log-ins were up 21% YoY.
Information processing and communications expense increased 9% YoY in 2QCY20.
Management indicated the firm has major opportunity to make the business more efficient and
technology-driven. The company would continue to invest in its platform technology to modernize Morgan
Stanley.
Technology and communications expenses increased 14% YoY in 2QCY20.
It also reflected an increase in capital expenditure related to developing digital capabilities and business
investments.
Management expects digital adoption by customers to remain sticky even after the economy fully
reopens. Furthermore, the bank would continue to invest in digital initiatives.
Digital now accounts for more than 75% of all service transactions and around 46% of all loan sales.
It is benefiting from the significant investments in technology over the last few years to provide alternative
ways of delivering products and services to clients. It has seen significant growth in digital banking
volumes, with mobile sessions up 20% YoY. It has also seen increased e-transfers and digital sales.
RBC has been ramping-up spends on technology, with focus on the client base, efficiency, and market
share over the last five years. It was done with the anticipation that if and when a recession hit, the bank
could dial this back and still be in a strong position, which holds true currently. It would still continue to
invest.
Expect to see opportunities for cost savings going forward, assuming client preferences continue to trend
toward digital interactions.
Source: Company, MOFSL
3
Citigroup
4
Wells Fargo
5
Morgan Stanley
6
U.S. Bancorp
7
Royal Bank of
Canada
6 August 2020
4
 Motilal Oswal Financial Services
Sector Update | Technology
Exhibit 5:
Key takeaways from 2QCY20 earnings calls of European banks
S. No
1
Company
Barclays
Key Commentary
Outsourcing costs were down by 32% YoY in 1HCY20.
Investments made over the past 5+ years in digital capabilities have enabled the bank to serve its
customers seamlessly through this period. A consequence of the pandemic-led lockdown has been the
increased demand for the bank’s digital services.
In the long term, the more customers the bank can get to migrate to its digital offerings to manage their
transaction volumes, the better. This is a higher margin way of engaging with the consumer.
It has slowly been decreasing the branch footprint over the last couple of years.
IT costs declined, reflecting lower amortization, given the impairments taken in 2019. However, IT spend
was broadly stable and within the target range as the bank continues its investment program.
The investment bank is on track to decommission 30% of IT applications by the end of 2022 as part of
ongoing technology investments.
Its commitment to spend EUR13b on technology between 2018 and 2022 remains unchanged.
It would continue to invest in technology and controls despite a reduction in the overall cost base. The
bank’s accelerated digital transition further supports its 2022 financial targets.
IT costs have declined by 10%/7% YoY in 1QCY20/2QCY20, given there was a one-off restructuring expense
in 1HCY19.
As a result of the global health crisis, digital adoption has accelerated a lot. Digital products and services
are becoming more important than ever. The bank has increased 6m mobile customers since June 2019,
growing 22%, and reached 40 million digital customers. Digital sales penetration increased to 47% in 2Q
v/s 36% in 2019.
IT, machinery, and equipment expense increased 10% YoY in 2QCY20.
The bank is accelerating the pace of change to make the organization even more effective in how it serves
clients and generates efficiencies.
Ongoing cost discipline helped fund continued investments in digitalization and select hires.
It intends to transform the High-Tech business through the development of Direct Banking and accelerate
front-to-back digitalization.
Tech spend in 2QCY20 declined 3% YoY.
Automation and technology enablement is more relevant than ever. UBS plans to roll out more robots and
accelerate migration to cloud.
Based on observations before and during COVID-19, it is clear that clients are getting used to technology,
digital channels, and different ways of interacting with the bank. Therefore branch and physical presence
to service clients would have to be reshaped.
The pandemic has accelerated clients’ shift to digital. Smart solutions in this area are gaining popularity.
Building on the bank’s strength and momentum in a rapidly evolving environment through cloud
migration, remote working collaboration capabilities, and automation to gain efficiency.
The strength of the bank’s digital platforms is evidenced in particular by a steady increase in the number of
customers active on mobile apps as well as the number of daily connections during and after the
respective lockdowns.
Moreover, digitalization facilitated the implementation of support measures by public authorities with (for
example) 100% of related requests made online in Poland.
Management has a view of interacting with customers using fewer branches, more digital, and the likes.
What the company has been able to observe during the lockdown period is that it can take the aspects of
digitalization a step further.
Source: Company, MOFSL
2
DB
3
Banco Santander
4
Credit Suisse
5
UBS
6
BNP Paribas
6 August 2020
5
 Motilal Oswal Financial Services
Sector Update | Technology
Exhibit 6:
Indian IT firms seeing increasing consolidation opportunities in the market
S. No
1
Company
TCS
Key Commentary
This quarter is not a one-off; a little bit of everything is being witnessed, including large deals and
consolidation.
In one of the deals, a good solution initially around SBWS at scale changed the nature of the opportunity
and expanded the overall scope. TCS then signed a much larger engagement with the client over a longer
period, which also includes consolidation of the overall landscape.
Infosys reoriented its client focus with the speed to new and emerging needs, cloud and digital, cost
efficiency and automation, and consolidation discussions.
Deal pipeline is robust, with the focus on cost takeout, digital transformation, captive takeover, and
vendor consolidation.
It won a large consolidation opportunity in Europe.
An easy and low hanging fruit is tail vendor consolidation. While a lot of big companies have a few large
partners, the company has a long list of tail vendors. There is emphasis to consolidate that which is mostly
coming at normal rate cards / pricing.
Also, there are accounts where clients already have a few large vendors, and HCL is not really there in any
meaningful way. Also, given that there is a lot of emphasis on some of the digital technologies and some of
the newer aspects, including digital foundation, clients are looking to evaluate the entire landscape and
potentially bring in one or two new service providers as challengers. These opportunities are being purely
driven by capability differentiation and some amount of fatigue with some of the existing providers.
Clients are consolidating vendors as they seek more strategic partners to help them through the
implications of COVID-19.
Certainly, as they seek commercial constructs or financial constructs that are appealing to them, they are
looking at companies with strong balance sheets, and companies that are willing to invest.
Source: Company, MOFSL
2
Infosys
3
HCL
4
Cognizant
Exhibit 7:
Relative Valuation table
IT Company
TCS
Infosys
Wipro
HCLT
TechM
LTI
Mindtree
Persistent
Mphasis
NIIT Tech
Hexaware
Cyient
Zensar
CMP
2,310
972
280
703
661
2,498
1,144
966
1,172
2,036
392
340
176
Revenue Growth (USD YoY %)
FY20
FY21E
FY22E
5.4
-5.1
12.1
8.2
1.1
11.6
1.7
-6.0
5.0
15.1
-1.6
10.0
4.3
-3.0
10.0
13.0
5.0
14.4
8.7
-3.7
14.0
4.3
9.4
11.0
10.8
2.9
10.0
14.3
6.0
12.0
17.1
6.3
11.0
-5.3
-12.5
5.0
5.8
-9.1
8.0
EBIT margin (%)
FY20 FY21E FY22E
24.6 24.5 25.3
21.3 22.4 22.9
17.1 18.0 18.5
19.6 20.2 20.5
11.6 11.0 12.8
16.1 17.0 17.5
10.5 15.2 15.5
9.2 11.0 13.0
16.0 15.5 15.8
13.7 12.6 13.8
13.9 12.5 13.1
9.2 8.2
9.8
8.5 10.2 10.5
EPS Growth (%)
FY20 FY21E FY22E
3.7 -2.7 18.2
5.1 6.9 15.8
8.5 2.4
8.2
11.1 9.0 14.8
-5.9 -7.1 22.9
0.4 9.7 19.6
-16.4 49.8 18.3
0.9 21.0 29.0
11.3 0.0 17.5
11.3 -3.0 34.2
12.6 -2.1 18.0
-22.2 -10.3 15.2
-17.2 18.5 13.4
FY20
27
25
17
17
14
29
30
22
19
28
18
10
15
PE (x)
FY21E FY22E
28
23
23
20
16
15
16
14
15
13
26
22
20
17
18
14
19
16
28
21
18
16
11
10
13
11
FY20
36.4
25.2
17.3
24.3
18.5
31.1
20.0
14.3
21.4
20.5
24.9
13.5
13.3
RoE
FY21E
36.6
25.2
16.1
21.7
15.6
28.1
24.6
14.9
19.2
19.3
22.0
11.4
14.3
FY22E
43.5
25.4
15.3
20.2
17.0
27.7
24.4
16.6
20.8
24.7
23.1
12.3
14.5
Source: Company, MOFSL
6 August 2020
6
 Motilal Oswal Financial Services
Sector Update | Technology
Story in charts
Exhibit 8:
As JPM witnessed a strong increase in tech spend
JPM - Increase in Tech Spend (YoY %)
15%
12%
10%
9%
9%
9%
-2%
-4%
-1%
Exhibit 9:
…that of Citi remained stable
Citi - Increase in Tech Spend (YoY%)
1%
0%
1%
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 10:
Strong acceleration in tech spend of BofA
BofA - Increase in Tech Spend (YoY%)
9%
Exhibit 11:
Lower equipment costs led to decline
Well Fargo - Increase in Tech Spend (YoY%)
3%
0%
4%
1%
4%
-12%
2QCY20
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 12:
Technology spends of Morgan Stanley and…
MS - Increase in Tech Spend (YoY%)
11%
8%
9%
7%
6%
9%
Exhibit 13:
…US Bancorp accelerated in 2QCY20
USB - Increase in Tech Spend (YoY %)
15%
12%
9%
12%
12%
14%
Source: Company, MOFSL
Source: Company, MOFSL
6 August 2020
7
 Motilal Oswal Financial Services
Sector Update | Technology
Exhibit 14:
Technology spends at Credit Suisse and…
Credit Suisse Tech spend (YoY %)
17%
19%
12%
10%
8%
10%
Exhibit 15:
…UBS accelerated in 2QCY20
UBS Tech spend (YoY %)
-12%
-9%
-15%
-3%
-5%
-3%
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 16:
Adjusted for one-off, tech spend was stable
DB - Tech spend increase (ex Transformation
charges, YoY %)
11%
2%
-4%
-15%
Exhibit 17:
Outsourcing costs at Barclays declined sharply
Barclays - Change in outsourcing costs (YoY%)
116%
-7%
-9%
-32%
-7%
Source: Company, MOFSL
Source: Company, MOFSL
6 August 2020
8
 Motilal Oswal Financial Services
Sector Update | Technology
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.
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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
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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
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
6 August 2020
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 Motilal Oswal Financial Services
Sector Update | Technology
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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.
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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
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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
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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
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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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