3 May 2022
4QFY22Results Update | Sector: Financials
Can Fin Homes
Estimate change
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
CANF IN
133
85.6 / 1.1
721 / 492
2/3/-6
642
CMP: INR643
TP: INR750 (+17%)
Buy
Strong loan growth and continued improvement in asset
quality; but credit costs elevated
Can Fin Homes (CANF) reported an operationally healthy quarter wherein advances
grew 21% YoY and asset quality improved further with GNPA declining 7bp QoQ to
~0.6%. However, credit costs were elevated since CANF shored up its standard asset
provisions to strengthen its balance sheet. CANF has managed the pandemic upheaval
and aggression from banks really well and delivered a 3% YoY PAT growth in FY22
despite the ~20bp/30bp compression in spreads/margin, respectively. CANF has now
got back to its old ways of delivering strong loan growth and maintaining superior
asset quality. Rumors on the resignation of the MD/CEO and any materiality from the
NHB audit were denied and put to rest by the management. We maintain our BUY
rating with a target price of INR750 (based on 2.4x FY24E BVPS).
Financials & Valuations (INR b)
Y/E March
FY22 FY23E
NII
8.2
9.4
PPP
6.8
7.9
PAT
4.7
5.3
EPS (INR)
35.4
39.4
EPS Growth (%)
3.3
11.4
BVPS (INR)
Ratios (%)
NIM
C/I ratio
RoAA
RoE
Payout
Valuation
P/E (x)
P/BV (x)
Div. Yield (%)
230
3.4
18.3
1.9
16.6
5.7
18.2
2.8
0.3
268
3.3
17.6
1.7
15.8
5.6
16.3
2.4
0.3
FY24E
10.8
9.2
6.3
47.7
20.9
313
3.2
16.7
1.8
16.4
4.6
13.5
2.1
0.3
Healthy operational performance; disbursements grew 35% YoY in 4Q
Disbursements were up 35% YoY to INR27b while advances grew 21% YoY
and 6.5% QoQ to INR267b. CANF’s 4QFY22 PAT grew 20% YoY to INR1.23b
(in line) driven by 40bp QoQ improvement in NIM.
Over the last three quarters, CANF has demonstrated a very healthy
improvement in spreads/margins. Given expectations of a rise in interest
rates and CANF’s guidance of ~15% commercial papers (CP) in the borrowing
mix, we expect spreads/margins to now decline ~10bp each in FY23/24.
Asset quality to demonstrate strength but CANF guided conservatively
on credit costs
Shareholding pattern (%)
As On
Mar-22 Dec-21
Promoter
30.0
30.0
DII
24.7
22.4
FII
0.0
0.0
Others
45.3
47.6
FII Includes depository receipts
Mar-21
30.0
17.4
0.0
52.6
GNPA/NNPA declined 7bp/9bp QoQ to 0.64%/0.30%, respectively, and PCR
improved ~8pp QoQ to ~53%. Credit costs in 4QFY22 included INR150m
additional contingent provisions on standard loans.
Against CANF’s guidance of ~40bp credit costs, we model ~30bp/20bp credit
costs in FY23/FY24, respectively. This is still 15-20bp higher than the pre-
pandemic credit costs, as the portfolio is now seasoned and credit costs are
likely to be higher. We estimate the headline GNPA to remain below 1%.
CANF has an enabling resolution to raise upto INR10b and it will raise equity
capital (lower than INR10b) within the next two to three quarters.
CANF guided for 2.4% spreads and 3.7%-3.75% NIM on a steady state basis.
The company has superior asset quality among its peers but we remain
watchful of the seasoning in the portfolio that could lead to a relatively
higher credit costs.
CANF has again embarked on a strong loan growth trajectory and we expect
very minimal spread/margin compression over the next two years. We
model an AUM and PAT CAGR of 17% and 16%, respectively, over FY22-
FY24E. With an RoA/RoE of 1.8%/16% in FY24E, we maintain our BUY rating
with a target price of INR750 (based on 2.4x FY24E BVPS).
Highlights from the management commentary
Strong loan growth and pristine asset quality warrant a BUY rating
Research Analyst: Prayesh Jain
(Prayesh.Jain@MotilalOswal.com)
Research Analyst: Nitin Aggarwal
(Nitin.Aggarwal@MotilalOswal.com) |
Urmila Bohra
(Urmila.Bohra@MotilalOswal.com)
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors
2021
advised to refer through important disclosures made at the last page of the Research Report.
23 October
are
1
 Motilal Oswal Financial Services
Can Fin Homes
Quarterly performance (INR m)
Y/E March
Interest Income
Interest Expenses
Net Interest Income
YoY Growth (%)
Other income
Total Income
YoY Growth (%)
Operating Expenses
YoY Growth (%)
Operating Profits
YoY Growth (%)
Provisions
Profit before Tax
Tax Provisions
Profit after tax
YoY Growth (%)
Key Parameters (%)
Yield on loans
Cost of funds
Spread
NIM
Credit cost
Cost to Income Ratio (%)
Tax Rate (%)
Balance Sheet Parameters
Loans (INR B)
Growth (%)
AUM mix (%)
Home loans
Non-housing loans
Salaried customers
Self-employed customers
Disbursements (INR B)
Change YoY (%)
Borrowing mix (%)
Banks
NHB
Market borrowings
Deposits
Asset Quality
GNPL (INR m)
NNPL (INR m)
GNPL ratio %
GNPL ratio %
PCR %
Return Ratios (%)
ROA (Rep)
ROE (Rep)
1Q
5,221
3,308
1,913
25.3
4
1,917
23.8
215
-7.4
1,702
29.4
441
1,260
329
932
15.0
10.1
7.2
2.9
3.7
0.8
11.2
26.1
208.4
9.7
90.2
9.8
70.9
29.1
4.0
-68.6
59.0
20.0
20.0
1.0
1,563
1,037
0.75
0.50
34
1.8
16.6
FY21
2Q
3Q
5,240 4,996
3,135 2,892
2,106 2,104
35.4
21.1
18
31
2,124 2,135
30.9
20.6
252
344
0.7
28.2
1,872 1,791
36.4
19.3
151
16
1,720 1,775
436
456
1,284 1,319
31.5
23.7
10.1
6.9
3.2
4.0
0.3
11.9
25.4
208.3
6.3
90.4
9.6
71.2
28.8
8.3
-38.2
60.0
21.0
18.0
1.0
1,499
954
0.72
0.46
36
2.1
18.8
9.6
6.3
3.2
4.0
0.0
16.1
25.7
210.0
4.0
90.5
9.5
71.9
28.1
11.1
-25.1
57.0
21.0
20.0
2.0
1,419
863
0.68
0.41
39
2.3
18.8
4Q
4,606
2,748
1,858
-1.4
68
1,925
0.1
428
31.8
1,497
-6.3
77
1,420
394
1,026
12.8
8.5
5.9
2.7
3.4
0.1
22.3
27.8
221.1
6.7
90.4
9.6
73.0
27.0
20.0
43.5
51.0
21.0
26.0
2.0
2,019
1,343
0.91
0.61
33
2.2
17.5
1Q
4,492
2,680
1,812
-5.3
16
1,828
-4.6
303
40.8
1,526
-10.4
65
1,460
372
1,088
16.8
8.1
5.6
2.5
3.3
0.1
16.5
25.4
222.2
6.6
90.5
9.5
73.3
26.7
8.9
122.9
47.0
25.0
26.0
2.0
2,000
1,265
0.90
0.57
37
2.0
16.0
FY22
2Q
3Q
4,626 5,020
2,708 2,961
1,918 2,059
-8.9
-2.1
53
64
1,971 2,124
-7.2
-0.6
342
403
35.8
17.1
1,628 1,720
-13.0
-4.0
-62
164
1,690 1,557
454
400
1,236 1,157
-3.7
-12.3
8.1
5.4
2.7
3.3
-0.1
17.4
26.9
235.8
13.2
90.3
9.7
74.0
25.9
22.1
167.6
50.0
24.0
24.0
2.0
1,851
1,103
0.78
0.47
40
2.1
16.4
8.3
5.4
2.9
3.4
0.3
19.0
25.7
250.9
19.5
89.9
10.1
74.2
25.7
24.7
123.5
53.0
23.0
22.0
2.0
1,772
970
0.71
0.39
45
2.0
15.8
4Q
5,558
3,185
2,373
27.7
55
2,428
26.1
482
12.4
1,946
30.0
302
1,643
414
1,229
19.8
8.6
5.3
3.3
3.7
0.5
19.8
25.2
267.1
20.8
89.6
10.4
74.3
25.7
27.1
35.2
51.0
22.0
25.0
2.0
1,706
807
0.64
0.30
53
2.0
16.0
Source: MOFSL, Company
FY21
20,064
12,083
7,980
18.3
121
8,101
18.0
1,240
15.2
6,861
18.6
685
6,176
1,615
4,561
21.3
FY22 4QFY22E
19,697
11,535
8,162
2.3
188
8,350
3.1
1,530
23.4
6,820
-0.6
469
6,351
1,640
4,711
3.3
5,361
3,181
2,180
17.4
58
2,239
16.3
453
5.6
1,786
19.3
98
1,689
431
1,257
22.6
Act v/s
est. (%)
4
0
9
-7
8
6
9
210
-3
-4
-2
3 May 2022
2
 Motilal Oswal Financial Services
Can Fin Homes
Highlights from the management commentary
Business updates
BT-OUT declined to INR2.93b in FY22 from INR5.43b in FY21.
CANF is holding restructured provisions of INR670m and INR150m of additional
provisions on the standard loans.
CANF will be looking to add 10-12 branches in FY23E.
Restructured book has declined INR420m to INR6.76b. CANF has written-back
INR16.9m.
The company has an enabling resolution to raise upto INR10b. It will raise equity
capital (quantum lower than INR10b) within the next two to three quarters.
Incremental CoF was 5.03% in 4QFY22 and the company expects that it should
go up by 100-125bp over the next 12-18 months.
Average ticket size stood at INR2.1m and CANF has increased interest rates
twice since Apr'21.
Other income stood at INR60m (v/s INR33-35m) from cross-selling insurance
and was included as part of the NIM reported by the company.
Guidance
Guided for 18%-20% loan growth and credit costs of 0.4% for FY23E.
On a steady state basis, spreads will be 2.4% and NIM will be 3.7%-3.75%
CANF will look to keep CP share between 13% and 17% of the liability mix.
Disbursements could be upwards of INR100b in FY23E.
Rumors on NHB audit and MD/CEO resignation
Audit is a regular exercise and just that in one of the branches the company had
identified fraud accounts of INR39.3m
The MD/CEO has no plans of moving on and there is no truth to the rumors of
his resignation.
Others
LGD disclosure:
Stage 1: 0.33%, Stage 2: 18% and Stage 3: 79%
CRAR of 23.3%. Equity capital will be raised within the next two to three
quarters to bring down the DER.
Within the reported NIM of 4.15% in 4QFY22, 12bp is attributable to LCR
investments. There is no negative carry from these investments.
Gross Stage 2 stood at INR12.7b and provisions on Stage 2 stood at INR342.3m.
3 May 2022
3
 Motilal Oswal Financial Services
Can Fin Homes
Key exhibits
Exhibit 1: Disbursements reached another all-time high…
Disbursement (INR b)
Growth (%)
123
-8
12
-10
44
-69
-38
-25
168
124
35
16
15
13
Exhibit 2: …resulting in AUM growth of 21% YoY
AUM (INR b)
Growth (%)
19
10
13
6
4
7
7
21
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 3: Share of salaried customers stable at ~74%
Non-salaried
Salaried
Exhibit 4: Share of housing loans stable at ~90%
Hosuing loans
9.9 10.0 9.9
9.8
9.6
9.5
Non housing loans
9.6
9.5
9.7 10.1 10.4
70.9 71.0 71.0 70.9 71.2 71.9 73.0 73.3 74.0 74.2 74.3
29.1 29.0 29.0 29.1 28.8 28.1 27.0 26.7 25.9 25.7 25.7
90.1 90.0 90.1 90.2 90.4 90.5 90.4 90.5 90.3 89.9 89.6
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 5: Calculated yields rose ~30bp QoQ
Yield on AUM (%)
10.2 10.3 10.3 10.1 10.1
9.6
7.9
7.8
7.4
7.2
6.9
6.3
Cost of funds (%)
Exhibit 6: C/I ratio up 80bp QoQ
Cost to Income Ratio
0.5
0.5
0.6
0.4
0.7
0.5
0.8
Opex/Avg AUM
0.5
0.6
0.7
0.7
8.5
5.9
8.1
5.6
8.1
5.4
8.3
5.4
8.6
5.3
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 7: PCR up ~8pp QoQ
GNPL ratio
36
39
PCR
37
40
45
53
Exhibit 8: PAT grew 6% QoQ (up 20% YoY)
20 41
PAT (INR m)
36
15
32
24
13
YoY Growth (%)
27
26
29
34
33
17
-4
-12
20
0.8
0.8
0.8
0.8
0.7
0.7
0.9
0.9
0.8
0.7
0.6
Source: MOFSL, Company
Source: MOFSL, Company
3 May 2022
4
 Motilal Oswal Financial Services
Can Fin Homes
Strong loan growth and pristine asset quality warrant a BUY rating
CANF has superior asset quality among its peers but we remain watchful of the
seasoning in the portfolio that could lead to a relatively higher credit costs.
CANF has again embarked on a strong loan growth trajectory and we expect
very minimal spread/margin compression over the next two years. We model an
AUM and PAT CAGR of 17% and 16%, respectively, over FY22-FY24E.
With an RoA/RoE of 1.8%/16% in FY24E, we maintain our BUY rating with a
target price of INR750 (based on 2.4x FY24E BVPS).
Exhibit 9: We cut our FY23E/FY24E EPS by ~4% each to factor in higher credit costs
INR b
NII
Other Income
Total Income
Operating Expenses
Operating Profits
Provisions
PBT
Tax
PAT
AUM
Borrowings
NIM (%)
ROA (%)
RoE (%)
Old Est.
FY22E
FY23E
8.0
0.1
8.2
1.5
6.7
0.3
6.4
1.7
4.7
267
241
3.3
1.9
16.7
9.2
0.1
9.4
1.7
7.7
0.4
7.3
1.9
5.5
314
280
3.2
1.8
16.4
FY24E
10.8
0.2
10.9
1.8
9.1
0.3
8.8
2.3
6.6
366
326
3.2
1.9
16.9
New Est.
FY22E
FY23E
8.2
0.2
8.4
1.5
6.8
0.5
6.4
1.6
4.7
267
246
3.4
1.9
16.6
9.4
0.2
9.6
1.7
7.9
0.9
7.0
1.8
5.3
316
285
3.3
1.7
15.8
FY24E
10.8
0.3
11.1
1.8
9.2
0.7
8.5
2.2
6.3
369
332
3.2
1.8
16.4
Source: MOFSL, Company
FY22E
1.7
2.3
1.9
2.4
77.5
-0.7
-1.0
-0.6
0.2
2.5
Change (%)
FY23E
1.9
2.7
2.1
2.8
122.7
-3.7
-3.7
-3.7
0.7
1.7
FY24E
0.4
1.2
3.0
0.9
129.8
-3.6
-3.6
-3.6
0.8
1.8
Exhibit 10: One-year forward P/E
45.0
30.0
15.0
0.0
P/E (x)
Min (x)
Avg (x)
+1SD
Max (x)
-1SD
29.7
Exhibit 11: One-year forward P/B
6.0
4.0
P/B (x)
Min (x)
Avg (x)
+1SD
Max (x)
-1SD
5.5
3.2
2.1
1.0
0.4
18.0
12.1
6.2
3.0
13.6
2.2
2.0
0.0
Source: MOFSL, Company
Source: MOFSL, Company
3 May 2022
5
 Motilal Oswal Financial Services
Can Fin Homes
Financials and valuations
Income statement
Y/E March
Interest Income
Interest Expended
Net Interest Income
Change (%)
Other Income
Net Income
Change (%)
Operating Expenses
Operating Income
Change (%)
Provisions/write offs
PBT
Tax
Tax Rate (%)
Reported PAT
Change (%)
Proposed Dividend (incl. tax)
FY16
10,444
7,435
3,009
69.4
391
3,401
64.5
668
2,733
80.1
194
2,539
968
38.1
1,571
82.2
321
FY17
13,060
8,840
4,220
40.2
471
4,691
37.9
807
3,884
42.1
188
3,696
1,349
36.5
2,347
49.4
321
FY18
14,906
9,810
5,096
20.8
314
5,410
15.3
878
4,532
16.7
221
4,311
1,449
33.6
2,862
22.0
321
FY19
17,134
11,693
5,441
6.8
179
5,621
3.9
915
4,706
3.8
11
4,695
1,728
36.8
2,967
3.7
321
FY20
20,189
13,442
6,747
24.0
115
6,862
22.1
1,076
5,786
23.0
603
5,183
1,422
27.4
3,761
26.8
321
FY21
20,064
12,083
7,980
18.3
121
8,101
18.0
1,240
6,861
18.6
685
6,176
1,615
26.2
4,561
21.3
266
FY22
19,697
11,535
8,162
2.3
188
8,350
3.1
1,530
6,820
-0.6
469
6,351
1,640
25.8
4,711
3.3
266
FY23E
24,004
14,614
9,390
15.0
225
9,614
15.1
1,689
7,926
16.2
878
7,047
1,797
25.5
5,250
11.4
293
INR m
FY24E
28,546
17,739
10,807
15.1
257
11,064
15.1
1,849
9,215
16.3
697
8,518
2,172
25.5
6,346
20.9
293
Balance sheet
Y/E March
Capital
Reserves & Surplus
Net Worth
Borrowings
Change (%)
Other liabilities
Total Liabilities
Loans
Change (%)
Investments
Change (%)
Net Fixed Assets
Other assets
Total Assets
E: MOFSL Estimates
FY16
266
8,514
8,780
90,740
23.0
8,040
1,07,560
1,07,146
29.1
149
0.0
89
175
1,07,560
-
FY17
266
11,771
12,037
1,18,675
30.8
2,168
1,32,880
1,32,241
23.4
160
7.1
102
377
1,32,880
FY18
266
14,604
14,870
1,39,210
17.3
3,215
1,57,295
1,56,440
18.3
160
0.0
96
600
1,57,295
FY19
266
17,556
17,822
1,67,974
20.7
1,500
1,87,295
1,82,342
16.6
163
1.9
99
4,692
1,87,295
FY20
266
21,234
21,501
1,87,484
11.6
1,451
2,10,436
2,05,257
12.6
243
49.1
379
4,557
2,10,436
FY21
266
25,832
26,098
1,92,929
2.9
1,710
2,20,737
2,18,915
6.7
496
104.1
378
948
2,20,737
FY22
266
30,400
30,666
2,46,477
27.8
2,300
2,79,443
2,63,781
20.5
11,260
2,169.9
346
4,057
2,79,443
FY23E
266
35,357
35,623
2,84,937
15.6
2,876
3,23,436
3,13,118
18.7
12,949
15.0
317
-2,947
3,23,436
FY24E
266
41,410
41,676
3,32,076
16.5
3,594
3,77,347
3,64,919
16.5
14,891
15.0
290
-2,753
3,77,347
3 May 2022
6
 Motilal Oswal Financial Services
Can Fin Homes
Financials and valuations
Ratios
Y/E March
Yield on loans
Cost of funds
Spread
Net Interest Margin
Profitability Ratios (%)
RoE
RoA
C/I ratio
Asset Quality (%)
Gross NPAs
Gross NPAs to Adv.
Net NPAs
Net NPAs to Adv.
PCR
VALUATION
Book Value (INR)
Price-BV (x)
EPS (INR)
EPS Growth YoY
Price-Earnings (x)
Dividend per share (INR)
Dividend yield (%)
E: MOFSL Estimates
FY16
11.0
9.0
1.9
3.2
19.0
1.6
19.6
198
0.2
0
0.0
100.0
66
9.7
11.8
82.2
54.5
2.0
0.3
FY17
10.9
8.4
2.5
3.5
22.5
2.0
17.2
279
0.2
0
0.0
100.0
90
7.1
17.6
49.4
36.5
2.0
0.3
FY18
10.3
7.6
2.7
3.5
21.3
2.0
16.2
675
0.4
316
0.2
53.2
112
5.8
21.5
21.9
29.9
2.0
0.3
FY19
10.1
7.6
2.5
3.2
18.2
1.7
16.3
1,135
0.6
795
0.4
30.0
134
4.8
22.3
3.7
28.9
2.0
0.3
FY20
10.4
7.6
2.8
3.5
19.1
1.9
15.7
1,571
0.8
1,118
0.5
28.8
161
4.0
28.2
26.8
22.8
2.0
0.3
FY21
9.44
6.35
3.1
3.8
19.2
2.1
15.3
2,019
0.9
1,343
0.6
33.5
196
3.3
34.2
21.3
18.8
2.0
0.3
FY22
8.1
5.3
2.9
3.4
16.6
1.9
18.3
1,706
0.6
807
0.3
52.7
230
2.8
35.4
3.3
18.2
2.0
0.3
FY23E
8.3
5.5
2.8
3.3
15.8
1.7
17.6
2,513
0.8
1,206
0.4
52.0
268
2.4
39.4
11.4
16.3
2.2
0.3
(%)
FY24E
8.4
5.8
2.7
3.2
16.4
1.8
16.7
3,071
0.8
1,535
0.4
50.0
313
2.1
47.7
20.9
13.5
2.2
0.3
3 May 2022
7
 Motilal Oswal Financial Services
Can Fin Homes
NOTES
3 May 2022
8
 Motilal Oswal Financial Services
Can Fin Homes
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial
products. MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are
available on
www.motilaloswal.com.
MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a
registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and
National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National
Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance
Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate entities of Motilal Oswal Financial Services Limited are
available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report
should be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific
merchant banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the
website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated
from MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability
or use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong
Kong Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers
Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any
brokerage and investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is
intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as
"major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which
this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration
provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange
Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-
dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this
chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public
appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL
in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”,
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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
3 May 2022
9
 Motilal Oswal Financial Services
Can Fin Homes
********************************************************************************************************************************
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.
3 May 2022
10