18 June 2021
Company Update | Sector: Technology
Zensar
BSE SENSEX
52,323
S&P CNX
15,691
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CMP: INR298
TP: INR350 (+18%)
Positive on new strategy and leadership
Buy
We attended ZENT’s analyst meet on Day 2 of the RPG conference, where the
management reiterated its GTM strategy and highlighted key investment areas for the
company. Here are the key highlights from the meet:
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
ZENT IN
226
67.2 / 0.9
347 / 121
0/14/50
97
Financials Snapshot (INR b)
Y/E Mar
FY21 FY22E FY23E
36.7
39.1
46.6
Sales
13.9
13.2
14.1
EBIT Margin (%)
3.5
3.7
4.7
PAT
15.3
15.9
20.3
EPS (INR)
31.0
3.7
27.7
EPS Gr. (%)
105.7 114.3 127.6
BV/Sh. (INR)
Ratios
15.5
14.7
16.9
RoE (%)
5.7
5.6
6.7
RoCE (%)
41.8
30.2
30.2
Payout (%)
Valuations
19.4
18.7
14.7
P/E (x)
2.8
2.6
2.3
P/BV (x)
8.2
7.8
5.8
EV/EBITDA (x)
2.2
1.6
2.1
Div Yield (%)
Shareholding pattern (%)
As On
Mar-21 Dec-20
Promoter
49.2
49.2
DII
24.6
24.6
FII
16.0
16.2
Others
10.2
10.0
FII Includes depository receipts
ZENT reiterated its GTM strategy under the new leadership of Mr. Ajay
Bhutoria. It reiterated its focus on five strategic growth opportunities
(SGOs) to better target the enterprise market. ZENT expects its capabilities
under Experience Services (c10% of revenue) to fuel business in Advanced
Engineering Services, Data Engineering, Analytics, and Infra Services.
Application Services will remain a focus area, given it’s the largest volume
generator in the business.
To increase the traction in its GTM strategy and drive better revenue
growth, it has identified four key areas of investments: 1] sales, 2]
partnerships, 3] talent, and [4] M&A.
It plans to use its historical high profitability (4QFY21 EBITDA margin of
19.9%) and cash balance (of c$160m in 4QFY21) to fuel investment in sales
and for inorganic acquisitions to add capabilities and target clients.
We remain positive on the strategy devised under the new leadership and
expect the same to deliver results in the next two years. We expect ZENT to
deliver 12.5% CAGR over FY21-23E as against a combined 11% decline in
revenue from FY19-21.
The company has been focusing on unbundling its current services into five
key segments: 1] Experience Services – Spearheaded through earlier
acquired entities – Foolproof and Indigo Slate; 2] Advanced Engineering
Services – to tap downstream demand; 3] Data Engineering – leverage
AI/ML; 4] Application Services, and 5] Digital Foundation Services –
experience led infra services.
While these are not the new businesses, a different packaging of the same
will help in targeting the right client for right services, instead of a non-
systematic sales structure.
ZENT believes this change will be fully implemented in the next 4-8 weeks.
The company has been investing in building up its sales strength on two
fronts: 1] increasing/restructuring the sales team, and 2] enriching the sales
process. It is also hiring/restructuring several business heads and bringing in
senior delivery personnel.
The management said there is an acute shortage of relevant talent in the
market. To manage the same, it has enhanced its onboarding engine by
expanding its recruiting team and invested in better training of freshers. It
has also invested in the recruitment process to onboard laterals and on-site
talent (East Europe).
Five key strategies to leverage the strong market environment
Mar-20
49.2
24.7
17.7
8.5
Investments in sales and talent to keep margin rangebound
Mukul Garg– Research analyst
(Mukul.Garg@MotilalOswal.com)
Research Analyst- Anmol Garg (
Anmol.Garg@motilaloswal.com
) |
Heenal Gada - Research analyst
(Heenal.Gada@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
Zensar
Stock Performance (1-year)
ZENT believes the above two factors, along with the partial comeback of travel
expenses, will impact margin. However, sustained offshoring and better pyramid
structure should keep EBITDA margin at high-teen levels.
Capital allocation skewed towards M&A, payout to remain low
The company will use its over USD160m cash balance majorly for acquisitions. It
has identified three parameters for the same: 1] capability enhancement, 2]
increased access to skills, and 3] access to market.
ZENT will keep its payout at 20-25%, one of the lowest in the industry, to use the
cash to fuel growth.
Valuation and view
ZENT’s current valuation at 15x FY23E EPS is the lowest in our midcap coverage
and is at a 44% discount to the median valuations of peers.
We expect revenue growth to rebound from 2HFY22E as the new leadership
(Mr. Ajay Bhutoria took over in Jan’21), refreshed strategy, and reinvestment of
margin gains in sales starts to pay off. With a likely return to double-digit growth
in FY23E (we estimate 18% YoY) on a good FY22E exit and recovery in key
accounts, we see potential for a significant stock re-rating as valuations catch up
with its peer group.
We see higher downside protection in the share price at current levels as 21% of
ZENT’s m-cap is in cash v/s only 8% for its midcap IT Services peers.
We maintain our Buy rating on the stock in the likelihood of a recovery in
growth and attractive valuations. Our TP implies 17x FY23E EPS.
Change in strategy and operational performance
After a change in leadership five years back, it initiated ‘Living Digital’, with the
intention to re-wire the company and make it completely digital.
In accordance with this, ZENT made tuck-in acquisitions like Foolproof, Indigo
Slate, Keystone, and Cynosure.
Higher focus on new age services and neglect of the cash cow Oracle drove the
underperformance, given the increased monetization time needed for Digital
Services.
Despite witnessing soft growth, operational discipline led to strong EBITDA
during FY21. A strong cash position gives ZENT enough room to invest in growth.
Post the leadership change, the company has now opted for a new operational
strategy, which includes five key growth areas.
Going forward, it will focus on the growth areas of: 1) Experience Services –
driven under the umbrella of experience studios, 2) Advanced Engineering
Services – to harness downstream demand from Experience Services and Cloud,
3) Data Engineering and AI, 4) Application Services – would be the largest area
for the company, and 5) Digital Foundation Services – includes experience led
infra services, where the pipeline is strong.
The path forward
The management intends to make increased investments in sales, including re-
wiring and enrichment of the sales process, which in turn is expected to drive
growth going forward.
2
18 June 2021
 Motilal Oswal Financial Services
Zensar
ZENT is focusing on talent acquisitions in the right places, and intends to expand
its talent supply chain outside India, specifically in Europe.
Efforts to reduce running costs of clients and invest in change and growth has
shot up, with a lot of related large deals coming into the market. ZENT is
prepared to grab this upcoming opportunity.
Vertical and geographical commentary
The company intends to double down on its services in the Hi-Tech and
Manufacturing segment. Within BFSI, ZENT is using a micro-vertical perspective,
with a complete focus on domain-led engagement in Banking and P&C
Insurance in the Insurance segment.
In the case of Retail, corporates are putting in massive efforts to shift to e-
commerce from physical stores. The customer supply chain is also getting
better. Demand in this vertical is now returning after being severely affected
due to the pandemic.
Europe is going strong for ZENT, and the management is seeing a strong pipeline
building up in this geography.
Impact on margin
An integral part of its strategy is to invest in sales, which will lead to a
moderation in margin.
With supply pressures coming up and the second round of wage hikes in Jul’21,
margin would be impacted. However, levers in terms of offshoring and pyramid
rationalization should help offset the same.
Despite travel cost returning, the management is confident that it would not be
similar to pre-COVID levels. EBITDA is expected to be at high-teen levels.
Talent resource
ZENT is fine tuning onboarding of freshers from colleges and has significantly
increased its efforts to capture lateral talent as well.
The company is extremely focused on Eastern Europe and has already started
operations in Poland.
The management stated that attrition rates have gone up across the industry
and is watching this space closely.
With an increase in the cost of lateral talent, it is exploring the possibility of a
rate change with clients.
Capital allocation
The company is largely preserving cash to use in M&A opportunities.
ZENT’s dividend payout policy of 20-25% will continue.
18 June 2021
3
 Motilal Oswal Financial Services
Zensar
Exhibit 1: ZENT to witness strong growth on the back of a
revised strategy post the management change
Revenue Growth (USD %)
17.6
7.6
1.6
(12.7)
Exhibit 2: Increased investment in growth to moderate
margin slightly and then rebound with growth
EBIT margins (%)
13.9
8.7
13.2
14.1
FY20
FY21
FY22E
FY23E
FY20
FY21
FY22E
FY23E
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 3: ZENT trades at the lowest P/E multiple v/s its peers
PE (FY23E)
31
30
27
27
27
22
17
15
COFORGE
LTI
MTCL
PSYS
LTTS
MPHL
CYL
ZENT
Source: Company, MOFSL
18 June 2021
4
 Motilal Oswal Financial Services
Zensar
Financials and valuations
Income Statement
Y/E March
Sales
Change (%)
Cost of Services
SG&A Expenses
EBITDA
% of Net Sales
Depreciation
Interest
Other Income
Forex
PBT
Tax
Rate (%)
Minority Interest
Net Income
Change (%)
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Loans
Other liabilities
Capital Employed
Net Block
Other LT Assets
Curr. Assets
Current Investments
Inventories
Debtors
Cash and Bank Balance
Other Current Assets
Current Liab. and Prov.
Trade payables
Other liabilities
Net Current Assets
Application of Funds
FY16
29,381
11.8
20,168
4,826
4,388
14.9
651
106
178
360
4,169
1,246
29.9
28
2,896
9.4
FY17
30,556
4.0
21,603
5,087
3,866
12.7
486
88
172
21
3,486
1,103
31.6
35
2,348
-18.9
FY18
30,058
(1.6)
21,220
5,254
3,583
11.9
651
227
202
463
3,370
1,013
30.1
50
2,306
-1.8
FY19
38,988
29.7
27,626
6,283
5,079
13.0
894
373
502
291
4,604
1,310
28.5
51
3,243
40.6
FY20
40,102
2.9
28,756
6,310
5,037
12.6
1,567
605
435
449
3,749
1,038
27.7
82
2,629
-18.9
FY21
36,681
(8.5)
24,417
5,422
6,842
18.7
1,732
536
367
-113
4,828
1,261
26.1
70
3,497
33.0
FY22E
39,083
6.5
26,034
6,097
6,952
17.8
1,798
568
391
0
4,976
1,244
25.0
59
3,673
5.0
(INR m)
FY23E
46,575
19.2
30,646
7,219
8,710
18.7
2,142
699
466
0
6,335
1,584
25.0
59
4,692
27.7
(INR m)
FY23E
451
28,853
29,304
0
3,526
32,830
8,990
3,407
29,203
11,127
0
7,656
6,436
3,984
8,771
2,763
6,008
20,432
32,830
FY16
446
12,205
12,651
1,481
525
14,658
3,878
517
13,989
1,016
1,259
5,427
2,844
2,371
3,725
1,643
1,790
10,263
14,658
FY17
449
14,267
14,716
1,306
535
16,556
4,495
1,897
14,657
1,467
1,127
5,332
5,996
736
4,493
1,753
2,740
10,164
16,556
FY18
450
16,239
16,689
60
906
17,655
5,976
2,356
14,624
1,302
1,060
6,423
5,137
702
5,301
1,839
3,461
9,323
17,655
FY19
450
18,973
19,424
2,578
924
22,925
9,617
1,898
19,360
454
985
8,762
3,259
5,901
7,951
3,010
4,941
11,409
22,925
FY20
451
20,900
21,351
2,886
4,008
28,244
13,340
2,039
20,576
2,670
941
6,656
5,258
5,051
7,711
2,650
5,061
12,865
28,245
FY21
451
23,423
23,874
-
3,526
27,401
11,330
3,076
19,928
7,127
0
5,888
3,775
3,138
6,933
2,201
4,732
12,994
27,400
FY22E
451
25,807
26,259
0
3,526
29,785
10,333
3,156
23,685
9,127
0
6,425
4,790
3,344
7,389
2,347
5,042
16,296
29,784
18 June 2021
5
 Motilal Oswal Financial Services
Zensar
Financials and valuations
Ratios
Y/E March
EPS
Cash EPS
Book Value
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
EV/EBITDA
EV/Sales
Price/Book Value
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
Turnover Ratios
Debtors (Days)
Fixed Asset Turnover (x)
Cash Flow Statement
Y/E March
CF from Operations
Cash for Working Capital
Net Operating CF
Net Purchase of FA
Free Cash Flow
Net Purchase of Invest.
Net Cash from Invest.
Proc. from equity issues
Proceeds from LTB/STB
Dividend Payments
Cash Flow from Fin.
Exchange difference
Net Cash Flow
Opening Cash Bal.
Add: Net Cash
Closing Cash Bal.
FY16
13.7
16.8
60.9
12.0
87.5
21.7
17.7
13.5
2.0
4.9
4.0
25.0
5.7
67
7.5
FY17
10.3
12.5
65.6
12.0
116.1
28.7
23.8
15.6
2.0
4.5
4.0
17.2
6.1
64
7.3
FY18
10.1
13.0
74.2
7.0
69.0
29.3
22.8
16.9
2.0
4.0
2.4
14.7
6.9
78
5.7
FY19
14.3
18.2
86.3
2.8
19.6
20.8
16.3
12.9
1.7
3.4
0.9
18.0
8.1
82
5.0
FY20
11.7
18.6
96.3
2.8
24.0
25.4
15.9
12.1
1.5
3.1
0.9
12.9
4.7
61
3.5
FY21
15.3
22.9
105.7
6.4
41.8
19.4
13.0
8.2
1.5
2.8
2.2
15.5
5.7
59
3.0
FY22E
15.9
23.6
114.3
4.8
30.2
18.7
12.6
7.8
1.4
2.6
1.6
14.7
5.6
60
3.6
FY23E
20.3
29.5
127.6
6.1
30.2
14.7
10.1
5.8
1.1
2.3
2.1
16.9
6.7
60
4.8
(INR m)
FY23E
7,126
-741
6,385
-800
5,585
-1,593
-2,393
0
-699
-1,647
-2,346
0
1,646
4,789
1,646
6,435
FY16
3,805
-1,218
2,587
-423
2,164
1
-422
42
-215
-969
-1,142
-14
1,009
1,835
1,009
2,845
FY17
3,244
-201
3,043
-349
2,694
-1,552
-1,902
46
2,281
-261
2,066
-56
3,151
2,845
3,151
5,996
FY18
3,298
-1,385
1,913
-515
1,398
-1,050
-1,565
26
-922
-626
-1,522
315
-859
5,996
-859
5,137
FY19
4,183
-2,622
1,561
-517
1,043
-1,894
-2,411
14
-376
-633
-995
-32
-1,877
5,137
-1,877
3,259
FY20
4,508
2,354
6,862
-781
6,081
-2,372
-3,153
15
-502
-1,228
-1,714
4
1,999
3,259
1,999
5,258
FY21
5,432
3,148
8,580
-393
8,187
-4,890
-5,283
15
-4,505
-271
-4,761
-20
-1,483
5,258
-1,483
3,775
FY22E
5,990
-367
5,623
-800
4,823
-1,668
-2,468
0
-851
-1,289
-2,141
0
1,014
3,775
1,014
4,789
18 June 2021
6
 Motilal Oswal Financial Services
Zensar
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
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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
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
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 Motilal Oswal Financial Services
Zensar
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The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent
of MOFSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in
nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty,
representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The
report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as
customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or
distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for
informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing
in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances.
The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this
document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this
document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views
expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade
securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of
the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and
should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make
modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from
time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to
perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a
separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of
information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or
may not subscribe to all the views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on,
directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or
entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law,
regulation or which would subject MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in
all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.
Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost
revenue or lost profits that may arise from or in connection with the use of the information.
The person accessing this information specifically agrees to exempt MOFSL or any of its
affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such
misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages,
expenses that may be suffered by the person
accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263;
Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth
Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is
a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt.
Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL.
Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no
assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance
Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.
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