Motilal Oswal Financial Services

COPE

The Economy Observer

6 October 2020

India’s debt growth remains tepid in 1QFY21

Things could, however, change in 2QFY21



The outstanding debt of India’s non-financial sector (NFS

) stood at INR322t or 167.3% of GDP in 1QFY21 (or 2QCY20), up

from around 153% in the past few quarters. 9.1% YoY growth in NFS debt and 0.6% YoY decline in annualized nominal

GDP

led to a jump in NFS’ debt-to-GDP ratio in 1QFY21.

Within NFS, general government (center + states

) debt grew at a 30-quarter high pace of 14.3% YoY. Moreover, non-

government non-financial (NGNF

) debt grew 4.6% YoY in 1QFY21 (against record-low growth levels of 4% in 4QFY20).

Within the NGNF sector, household debt grew at near-record lows of 6% YoY in 1QFY21 (8.9% in 4QFY20, but slowest

growth of 5.7% in 4QFY09). Additionally, non-financial corporate (NFC) debt grew 3.7%, the second lowest to record-low

growth levels of 1% in 4QFY20. A look at long-term trends suggests the country’s debt growth weakened to the single

digits for the first time in two decades in 2QFY20, and COVID-19 failed to change this in 1QFY21.

Details of NGNF debt suggest: (a) banks’ lending grew 5% YoY in the quarter (v/s record-low growth of 4.7% in 4QFY20);

(b) borrowings through corporate bonds (CBs) grew ~6% YoY (v/s 0.5% in 4QFY20); and (c) external commercial

borrowings (ECBs) grew 12.5% in 1QFY21 (similar to 12.4% in the previous quarter). In contrast, lending by NBFCs grew at

record-low levels of just 3.6% in 1QFY21, and HFCs’ loan book grew marginally (0.3% YoY) after declining for the first

time in 4QFY20.

Due to COVID-19 and the related collapse in economic activity, a jump in the debt-to-GDP ratio across nations was

inevitable. However, the pickup in India’s debt growth in 1QFY21 was only marginal v/s the previous few quarters. NFS

debt growth was the highest in 15 years in the US (at 11.7%), the highest in 11 years in the UK (at 10.2%), the highest in

24 years in Japan (at 4.6%), and the highest in 10 quarters in China (at 12.4%). Since the credit guarantee scheme in India

was announced in mid-May’20 (later v/s other major nations), NGNF debt could grow faster in 2QFY21.

India’s NFS debt grew 9.1% YoY to reach 167.3% of GDP in 1QFY21:

Our estimates

suggest India’s NFS debt stood at INR322t in 1QFY21, up from INR312t in 4QFY20

and INR295t in 1QFY20. Almost the entire QoQ increase was attributable to

government debt as NGNF debt remained broadly unchanged

(Exhibit 1).

Against

average growth of 9% in FY20, India’s NFS debt grew 9.1% YoY in 1QFY21 – the

highest in the past four quarters, but slower than growth in the previous quarters

(Exhibit

2).

Furthermore, NFS debt rose from 153% of GDP over the past three years

to an all-time peak of 167.1% in 1QFY21

(Exhibit 3).

Exhibit 1:

Estimates of India’s non-financial sector (NFS) debt

% of (annualized

) GDP

% YoY

FY18

1QFY21

FY18

FY19

FY20

1QFY21 1QFY21

Households*

42,269

58,915

30.3

31.3

31.8

33.1

6.0

Non-financial corporate (NFC*)

133,881

162,237

51.5

51.8

48.8

52.4

3.7

General government (GG)

120,913

157,227

70.7

69.9

72.8

81.8

14.3

Central government

77,988

101,356

45.6

44.6

46.5

52.7

14.9

State governments

42,925

55,871

25.1

25.3

26.1

29.1

13.3

Non-financial sector (NFS )

260,782

321,674

152.5

153.0

153.4

167.3

9.1

Non-government non-financial (NGNF)

139,869

164,447

81.8

83.1

80.6

85.5

4.6

* Please see Appendix at end of the report for methodology

Source: Reserve Bank of India (RBI), Government finances, Bloomberg, NBFCs/HFCs company reports, CEIC, MOFSL

INR billion

FY19

FY20

49,665

56,506

144,412 157,766

132,616 148,144

84,681

94,623

47,935

53,521

290,324 312,111

157,708 163,968

Non-financial sector = Non-financial corporate sector + Household sector + General government (Center + states)

Annualized nominal GDP = sum/average of last four quarters to smoothen the sharp changes in nominal GDP on quarterly basis

Debt of state governments in 1QFY21 is our estimates based on fiscal deficit of 16 states (21 states in FY19 and 19 states in FY20)

Our previous publications cover only NGNF (non-financial corporate + households) sector. We have improved our database by including government debt

on quarterly basis from this quarter onwards.

Nikhil Gupta – Research Analyst

(Nikhil.Gupta@MotilalOswal.com)

Yaswi Agarwal

– Research Analyst

(Yaswi.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.

Exhibit 2:

India’s NFS debt grew 9.1% YoY in 1QFY21…

1QFY01

(% YoY)

1QFY05

1QFY09

1QFY13

1QFY17

1QFY21

NFS debt

Exhibit 3:

…and rose to 167.3% of GDP from 153.4% in FY20

200

150

NFS debt

(% of GDP)

167.3

153.4

9.1

100 118.9

FY00

FY03

FY06

FY09

FY12

FY15

FY18 FY21*

Source: Reserve Bank of India (RBI), Government finances,

Bloomberg, NBFCs/HFCs company reports, CEIC, MOFSL

Please see Appendix at end of the report for methodology

Government debt grew

14.3% YoY in 1QFY21,

marking the fastest growth

in the past 30 quarters.

Government debt grew at 30-quarter high pace…:

For the past few years, we have

been working on estimating India’s non-government non-financial (NGNF) sector

debt on a quarterly basis. However, we have improved on our database this time by

including the quarterly debt of the general government (center + states) and then

estimating India’s non-financial sector debt. Within India’s NFS debt, government

debt grew 14.3% YoY in 1QFY21, marking the fastest growth in the past 30 quarters.

Notably, while central government debt grew 15% YoY in the quarter to rise to

decadal highs of 52.7% of GDP, state debt (based on actual deficit data for 16 states)

is estimated to have increased 13.3% YoY to 13-year highs of 29.1% of GDP in

1QFY21

(Exhibit 4).

Therefore, government debt is estimated to have risen to 13-

year highs of 82% of GDP in 1QFY21 from 73% in FY20.

Exhibit 5:

…however, NGNF debt growth was only slightly

higher than record-low levels in 4QFY20

Household debt

(% YoY)

NFCs debt

Exhibit 4:

Government debt grew at 30-quarter highs of

14.3% YoY in 1QFY21…

1QFY01

(% YoY)

1QFY05

1QFY09

1QFY13

1QFY17

1QFY21

Government debt

14.3

Source: Ministry of Finance, CAG, CEIC, MOFSL

Source: RBI, NHB, CSO, NBFCs/HFCs company reports, CEIC, MOFSL

…however, NGNF debt growth was near all-time low growth:

In contrast, NGNF

debt increased by just 4.6% YoY in 1QFY21, only marginally better than record-low

growth levels of 4% YoY posted in the previous quarter. Within the NGNF sector,

while household debt

grew at a near-record-low pace of 6% YoY (the slowest was

5.7% in 4QFY09), outstanding debt in the non-financial corporate (NFC) sector

increased 3.7% YoY – second-lowest levels to the previous quarter’s record-low

growth levels of 1% in the past two decades

(Exhibit 5).

As mentioned in our last quarter’s

report,

we have revised our estimates of India’s household debt in line with the recently published data by

the

Reserve Bank of India (RBI),

which released

quarterly outstanding debt

of Indian household for the period 1Q FY18 to 4Q FY20. According to

the RBI, only 55% of the HFC loan book and 20% of the NBFC loan book accounts for household debt.

6 October 2020

NGNF debt has risen to a

record high of 85.5% of GDP

in 1QFY21, higher than

80.6% in the previous

quarter.

However, due to sharp decline in nominal GDP (22.6% in 1QFY21 and 0.6% on an

annualized GDP basis), NGNF debt rose to a record high of 85.5% of GDP in 1QFY21

(higher than 80.6% in the previous quarter). While household debt has risen to a

new high of 33.1% of GDP (up from 31.8% in 4QFY20), NFC debt has also increased

to an all-time peak of 52.4% of GDP in 1QFY21, up from an 18-quarter low of 48.8%

of GDP in 4QFY20.

Key lenders to / Sources of borrowings for NGNF sector

A detailed lender-wise analysis of the NGNF sector suggests debt growth

accelerated for banks, corporate bonds (CBs), and external commercial borrowings

(ECBs). The analysis also suggests it weakened further for non-banking financial

companies (NBFCs) and grew marginally for housing finance companies (HFCs).

HFCs’ loan book – based on our estimate of 10 individual companies, accounting for

~85% of the HFC industry (see

Appendix for details)

– grew 0.3% YoY in 1QFY21

following the first and only decline of 1.2% YoY in the past two decades posted in

the previous quarter

(Exhibit 6).

NBFCs’ loan book – based on our estimate of 17

individual companies, accounting for ~60% of the NBFC industry (see

Appendix for

details)

– also posted the slowest growth in 20 years of 3.6% YoY in 1QFY21.

NBFCs/HFCs’ lending to the

NGNF sector grew at

record-low levels of 2.5%

YoY in 1QFY21, following

3.8% growth in 1QFY21.

Notably, banks’ lending (after adjusting for the inter-financial sector) has eased over

the past several years. It eased to 8% in the last five years (from average growth of

21% over FY04–14) and record low growth of 4.7% in FY20, before recovering to 5%

in 1QFY21. Further, corporate bonds (adjusted for share of the financial sector)

witnessed higher activity in 1QFY21. As a result, NGNF debt raised through CBs grew

~6% YoY, following 0.5% growth in the previous quarter. Loans raised by the NGNF

sector through CPs declined 29%, marking the fourth successive decline; however,

NGNF sector’s borrowings through ECBs grew 12.5% in 1QFY21, similar to that of

12.4% growth in 4QFY20.

Overall, lending by NBFCs and HFCs, which accounts for 22% of NGNF debt, grew at

record-low levels of 2.5% YoY in 1QFY21, following 3.8% growth in 1QFY21. In

contrast, growth in NGNF lending by other sectors/sources (excluding NBFCs/HFCs)

improved to 5.2% YoY growth in 1QFY21 from all-time slowest growth of 4% YoY in

4QFY20

(Exhibit 6).

Exhibit 6:

Bank loans, CBs, ECBs pick up in 1QFY21

FY17

FY18

Banks*

73,496

79,537

NBFCs

14,800

19,625

HFCs

8,185

10,386

Corporate bonds#

14,367

16,378

Commercial Paper@

2,003

1,265

ECBs^

10,069

12,678

Total

122,920

139,869

Memo: NBFCs + HFCs

22,985

30,011

Total excl. NBFCs + HFCs

99,935

109,858

Non-bank lenders

49,424

60,332

*Excludes loans to the financial sector

@Excludes commercial paper issued by NBFCs

Please see Appendix at the end for details

INR b

FY19

88,807

22,766

11,917

18,500

2,480

13,238

157,708

34,683

123,025

68,901

FY20

92,962

24,226

11,778

18,589

1,527

14,886

163,968

36,004

127,964

71,006

% YoY

1QFY20

2QFY20

3QFY20

4QFY20

1QFY21

10.2

7.2

5.6

4.7

5.0

15.2

11.2

9.0

6.4

3.6

11.1

6.9

5.9

(1.2)

0.3

8.5

4.8

3.3

0.5

5.9

12.9

(15.6)

(14.0)

(38.4)

(29.2)

5.7

4.0

9.3

12.4

12.5

10.4

6.7

5.9

4.0

4.6

13.8

9.7

7.9

3.8

2.5

9.5

5.9

5.3

4.0

5.2

10.7

6.1

3.1

4.1

#Excludes corporate bonds issued by SCBs, NBFCs and banks

^ Excluding FIIs investments in corporate bonds

Source: RBI, CEIC, MOFSL

6 October 2020

Not only was NFS debt

growth in India lower

relative to most other

economies, but also just

slightly better than in

previous quarters.

NFS debt growth in India slower in 1QFY21; could, however, change in 2QFY21

Owing to the COVID-19 pandemic and the related collapse in economic activity, a

jump in the debt-to-GDP ratio across nations was inevitable. However, the pick-up in

India’s debt growth to 9.1% YoY in 1QFY21 was only marginal v/s the previous few

quarters. A comparison between India and other major nations suggests that not

only was NFS debt growth in India lower relative to most other economies, but also

just slightly better than in previous quarters.

India’s NFS debt increased to 167.3% of GDP in 1QFY21 (or 2QCY20), from 152.4% a

year ago, implying a jump of 15 percentage point (pp) in India. On the other hand, it

rose by as much as 29pp of GDP in the US, 31pp in the UK, 26pp in Japan, and 21pp

in China

(Exhibit 7).

Moreover, barring Japan, NFS debt growth in India was slower

than that in the US, the UK, and China in 2QCY20

(Exhibit 8).

Exhibit 7:

NFS debt-to-GDP ratio rose by the lowest (15pp)

in India in 1QFY21…

(% of GDP)

Q2 CY19

418.1

281.2

291.8

392.5

252.6

260.5

245.1

266.4

167.3

152.4

India

Q2 CY20

Exhibit 8:

…and debt growth was also slower than most

other major economies

(% YoY)

11.7

Annualized nominal GDP

10.2

4.6

0.3

(1.6)

(1.8)

Japan

China

(0.6)

India

3.5

NFS debt

12.4

9.1

Japan

China

Source: CEIC, Various national sources, MOFSL

However, comparing debt growth in India with that in other nations would be highly

misleading, considering the differential GDP growth rates in different economies.

Therefore, it is better to compare the uptick in NFS debt growth in 1QFY21 vis-à-vis

historical trends in the economy. Notably, even then, India’s performance is weaker

than the performances of other nations.

NFS debt growth in the US,

the UK, China, and Japan

was at multi-year highs in

2QCY20, v/s only a slight

uptick in India.

India’s NFS debt growth of 9.1% YoY in 1QFY21 is only marginally better than

average growth of 8.4% in the previous three quarters (and it was in the double

digits every prior quarter during the past two decades). On the other hand, growth

of 11.7% YoY in NFS debt in the US was the highest in 15 years and more than

double the average growth of ~5% in the past few years

(Exhibits 9, 10).

Similarly,

NFS debt growth in the UK (at 10.2% YoY) in 2QCY20 was the highest in the past 11

years (against average growth of 3–4% in the past few years). It was also the highest

growth (of 12.4%) reported in China in 10 quarters. In fact, while Japan’s NFS debt

grew only 4.6% YoY in 2QCY20, it marked the highest growth seen in 24 years (v/s

average growth of 2–3% in the past few years).

6 October 2020

Exhibit 9:

NFS debt growth was at multi-year highs for the

world’s major economies…

(5)

Jun-16

(% YoY)

Jun-17

Jun-18

Jun-19

Jun-20

Japan

China

Exhibit 10:

…but it was only slightly better than record-low

growth levels in India in 1QFY21/2QCY20

1QFY01

(% YoY)

1QFY05

1QFY09

1QFY13

1QFY17

1QFY21

NFS debt

9.1

Source: CEIC, Various national sources, MOFSL

The credit guarantee

scheme was announced by

the Government of India

(GoI) in mid-May’20, while

schemes were announced

much earlier (in

Mar’20/Apr’20) in other

nations.

One of the reasons for the marginal uptick in India’s NFS debt, vis-à-vis other major

nations, may be the delayed responses by the governments. The credit guarantee

scheme was announced by the Government of India (GoI) in mid-May’20, while it

was implemented much earlier (Mar’20/Apr’20) in other nations (included in our

report). Consequently, we could see NGNF debt growth pick up faster in 2QFY21. In

fact, initial disbursement trends among certain lenders, such as HDFC Bank and

HDFC Ltd., in 2QFY21 suggest strong improvement vis-à-vis 1QFY21. While these

better performances by strong lenders could partly be the result of gaining market

share, overall credit growth to the NGF sector is also likely to improve in 2QFY21.

6 October 2020

Appendix: Estimation of total debt of India’s non-

government non-financial (NGNF) sector

Scheduled commercial banks (SCBs), non-banking financial institutions (NBFCs), and

housing finance companies (HFCs) are the three major institutional sources of

lending available to households and the corporate sector, which together constitute

the NGNF sector. Consequently, we use loans and advances data from these

financial companies to estimate the total debt of the NGNF sector. Apart from these

three sources, the NGNF sector borrows through commercial papers (CPs),

corporate bonds (CBs), and external commercial borrowings (ECBs). We gather data

on the following six relevant parameters, making suitable adjustments to avoid

double counting:



SCBs’ loans and advances, excluding their lending to the financial sector



NBFCs’ loan book, available from the RBI’s annual publication titled

Report on

trend and progress of banking in India

and the bi-annual

Financial Stability

Report

published by the RBI provides information up to FY19 and 1HFY20; for

quarterly data, we have compiled the data of 17 NBFCs, accounting for about

three-fifths of the entire industry (list of NBFCs is provided below)



HFCs’ outstanding loan book, now available with the RBI up to FY19 and 1HFY20;

for quarterly data, we have compiled the data of 10 HFCs, accounting for ~85%

of the entire industry (list of HFCs in the table below)



Outstanding corporate bonds adjusted for debentures issued by NBFCs, HFCs,

and tier-II capital of SCBs (assumed @2% of banks’ loan book)



Outstanding CPs, adjusted for NBFC/HFC issuances



Long-term and short-term external debt (ECBs + INR debt) raised by the NGNF

sector, adjusted for foreign institutional investors (FIIs)’ exposure in corporate

bonds

To arrive at the

quarterly estimates for NGNF debt,

we have used company-level

data of 17 NBFCs and 10 HFCs, accounting for ~60% and ~85% of the entire industry,

respectively. The list of these companies is provided below:

Exhibit 11:

List of 17 NBFCs and 10 HFCs used for quarterly analysis:

1. Bajaj Finance

2. Cholamandalam

3. IIFL Finance

4. JM Financial

5. L&T Financial

6. Mahindra & Mahindra Finance

7. Magma Finance

8. Mannapuram

9. Muthoot

10. Reliance Capital

11. Shriram City Union

12. Shriram Transport Finance

13. Sundaram Finance

14. Power Finance

15. REC Ltd.

16. Piramal Finance

17. Aditya Birla capital

18. HDFC Ltd.

19. HUDCO

20. LIC Housing

21. Indiabulls Housing

22. Dewan Housing

23. Sundaram BnP Finance

24. PnB Housing Finance

25. Canfin

26. Reliance Home Finance

27. REPCO Finance

6 October 2020

METHODOLOGY USED FOR ESTIMATING TOTAL DEBT IN THE COUNTRY

Scheduled

commercial

banks (SCBs)

HOUSEHOLDS (HH)

Non-banking

financial

companies

(NBFCs)

Housing

finance

companies

(HFCs)

NON-FINANCIAL

CORPORATE SECTOR

Corporate

bonds

TOTAL

NON-

FINANCIAL

DEBT

Commercial

papers (CPs)

External

sector

GENERAL

GOVERNMENT

(CENTER + STATES)

Others*(RBI,

corporate

sector, etc.)

6 October 2020

NOTES

6 October 2020

Explanation of Investment Rating

Investment Rating

BUY

SELL

NEUTRAL

UNDER REVIEW

NOT RATED

*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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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 Financial Services Limited(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.

Expected return (over 12-month)

>=15%

< - 10%

> - 10 % to 15%

Rating may undergo a change

We have forward looking estimates for the stock but we refrain from assigning recommendation

6 October 2020

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.

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.

* MOFSL 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.

6 October 2020