TeamLease
27 July 2022
1QFY23 Results Update | Sector: Others
TeamLease
Estimate change
TP change
Rating change
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CMP: INR3,766
TP: INR 3,520 (-7%)
Neutral
Margin weakness to temper strong revenue growth
Valuations remain full, retain our Neutral rating
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Financials & Valuations (INR b)
Y/E Mar
2022 2023E
Sales
64.8
83.5
EBIT Margin (%)
1.6
1.3
PAT
1.1
1.3
EPS (INR)
65.1
75.3
EPS Gr. (%)
BV/Sh. (INR)
Ratios
RoE (%)
RoCE (%)
Payout (%)
Valuations
P/E (x)
P/BV (x)
EV/EBITDA (x)
Div Yield (%)
25.4
412.8
16.3
12.7
0.0
57.9
9.1
45.2
0.0
15.8
524.1
16.1
14.3
0.0
50.0
7.2
41.3
0.0
TEAM IN
17
64.4 / 0.8
5544 / 2912
16/-5/-9
138
2024E
103.5
1.6
1.8
103.4
37.2
627.5
18.0
17.0
0.0
36.4
6.0
28.2
0.0
Revenue rose 3.4% QoQ, led by General staffing (up 4%), while Other HR
Services (down 2.7%) and Specialized Staffing (down 1.5%) dipped in
1QFY23. It added ~9k associates, despite a decline of 5k associates in
NETAP, indicating a strong demand environment. EBITDA margin (at 1.34%)
was a large miss, down 90bp QoQ and 80bp YoY v/s our expectation of a
30bp decline, driven by salary increases, investment in the core team, and
the impact from Ind AS 116 due to a change in office premises.
The management remains positive on its growth outlook as supportive
macro and new logo additions boost demand for associates. We expect
TEAM to report good revenue growth in all verticals on a continued
improvement in General Staffing, a pickup in HR Services, increased demand
for manpower, and higher margin replacements in the IT Staffing business.
EBITDA margin declined on account of multiple factors (core salary hikes,
Ind AS 116, seasonality in HR Services, and associated cost inflation) in
1QFY23. While the management expressed its confidence of reaching its
FY22 EBITDA margin by 4QFY23, we expect a more gradual increase in
margin to 2.1% in 4Q, given the structural margin drag due to TEAM’s
difficulty in improving PAPM. We expect the company to deliver 1.8%/2%
EBITDA margin in FY23/FY24, which will result in a more modest earnings
growth, despite a robust demand-led revenue performance. We expect
TEAM’s earnings growth to be ~26% over FY22-24 and feel it is already
priced into the stock price.
While we remain positive on the medium- to long-term opportunities, as it
should gain from the formalization of the labor market, there is near term
margin pressure and uncertainty over income tax benefits claimed by TEAM.
We feel it is fairly valued and hence maintain our
Neutral
rating.
We are lowering our FY23/FY24 estimate by -12%/-3% to factor in lower
margin. Our TP of INR3,520/share implies 34x FY24E EPS.
Revenue growth, at 3.4% QoQ and 36.5% YoY, was a little ahead of our
estimate of 2.3% QoQ and 35% YoY. Growth was led by General Staffing (up
4% QoQ), while other HR Services (down 2.7% QoQ) and Specialized Staffing
(down 1.5%) dipped in 1QFY23.
The biggest miss was in EBITDA margin (at 1.34% in 1QFY23), down 90bp
QoQ and 80bp YoY, v/s our estimate of a 30bp decline. Segmental margin in
General Staffing (1.5%) and Specialized Staffing (8.4%) fell 20bp QoQ each,
while HR Staffing reported losses (down 3% v/s 8% in 4QFY22) and
contributed 20bp to the decline.
PAT rose 9% YoY (est. 22%) to INR265m, benefitting from higher other
income in 1QFY23.
Strong revenue growth, big margin miss
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Jun-22 Mar-22 Jun-21
31.5
31.5
34.0
21.1
37.4
9.9
21.2
37.5
9.8
17.6
37.1
11.3
FII Includes depository receipts
Mukul Garg – Research analyst
(Mukul.Garg@MotilalOswal.com)
Raj Prakash Bhanushali – Research analyst
(raj.bhanushali@motilaloswal.com)
10 November 2020
1
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
TeamLease
Key highlights from the management commentary
The management remains optimistic about its growth prospects and suggested
that there are a lot of open positions that can fuel growth in 2QFY23.
In 1QFY23, margin was impacted by: 1) higher unallocated expenses of ~80bp as
it shifted to a new office and a one-time Ind AS 116 impact of 40bp (sustainable
run-rate for unallocated expenses is INR60-70m), 2) higher salary hikes to core
employees (12% v/s the normal hike of 7-8%), 3) seasonality in the EdTech
business, and 4) the timing gap between recognition and creation of certain
provisions.
The management said it will improve its 4QFY23 exit margin to FY22’s exit
margin levels.
Over the medium term, as the Centre and state governments look to liberalize
and formalize the labor market, TEAM should be among the biggest direct
beneficiaries.
Though we are positive on growth (as demand remains strong), we are cautious
on near-term uncertainties due to an on-going Income Tax dispute and lower
margin.
We are lowering our FY23/FY24 estimate by -12%/-3% to factor lower margin.
Our TP of INR3,520/share implies 34x FY24E EPS.
(INR m)
FY23E
Var.
1QE (%/bp)
18,587
1%
35.0%
18,224
2%
362
-30%
2.0%
-60bp
262
-38%
1.4%
-54bp
10
-32%
60
104%
312
-11%
0
312
-11%
16
5%
-12bp
297
-11%
10% -1174bp
1.6%
-19bp
297
-11%
22% -1298bp
1.6%
-19bp
A key beneficiary of formalization
Consolidated quarterly performance
1Q
13,768
21%
13,473
295
2.1%
203
1.5%
8
46
240
-26
266
-3
-1%
269
57%
2.0%
243
42%
1.8%
FY22
FY23
FY22
FY23
2Q
3Q
4Q
1Q
2QE
3QE
4QE
15,236 17,621 18,174 18,794 19,806 21,850 23,081 64,798 95,012
34.9%
38%
36%
37%
30%
24%
27%
33%
47%
14,894 17,244 17,764 18,541 19,479 21,435 22,596 63,375 82,051
342
377
410
253
327
415
485 1,424 12,961
2.2%
2.1%
2.3%
1.3%
1.7%
1.9%
2.1%
2.2% 13.6%
230
279
304
163
237
325
395 1,016 12,556
1.5%
1.6%
1.7%
0.9%
1.2%
1.5%
1.7%
1.6% 13.2%
14
10
8
7
10
10
10
40
37
54
51
47
123
50
50
50
197
273
270
319
343
279
277
365
435 1,173 12,791
750
0
-6
0
0
0
0
718
0
-480
319
350
279
277
365
435
456 12,791
14
17
33
14
14
18
22
61
67
-3%
5%
10%
5%
5%
5%
5%
13%
1%
-493
302
316
265
263
347
413
395 12,724
-365%
31%
61%
-1% -153%
15%
31%
-50% 3125%
-3.2%
1.7%
1.7%
1.4%
1.3%
1.6%
1.8%
0.6% 13.4%
257
302
310
265
263
347
413 1,112 1,288
19%
31%
15%
9%
2%
15%
33%
25%
16%
1.7%
1.7%
1.7%
1.4%
1.3%
1.6%
1.8%
1.7%
1.4%
Revenue
Change (YoY %)
Total Expenditure
Reported EBITDA
Margin (%)
Reported EBIT
Margin (%)
Interest
Other Income
PBT before EO expense
Extra-Ord. expense
Reported PBT
Tax
Rate (%)
Reported PAT
Change (YoY %)
Margin (%)
Adjusted PAT
Change (YoY %)
Margin (%)
27 July 2022
2
 Motilal Oswal Financial Services
TeamLease
Key performance indicators
Y/E March
1Q
Headcount
General Staffing associates
Apprentices
Specialized Staffing
Revenue
General Staffing
Specialized Staffing
Other HR Services
Operating Margin
General Staffing
Specialized Staffing
Other HR Services
1,60,014
58,142
7,817
12,397
1,143
228
1.9
8.5
(7.4)
FY22
2Q
1,74,075
68,448
8,713
13,637
1,342
257
1.6
8.7
0.5
FY23
3Q
1,89,560
74,800
9,140
15,960
1,359
302
1.7
8.1
4.1
4Q
1,94,650
81,110
9,470
16,389
1,466
319
1.7
8.6
8.2
1Q
2,08,260
76,847
9,800
17,039
1,444
311
1.5
8.4
(3.1)
FY22
1,94,650
81,110
9,470
58,383
5,309
1,105
1.7
8.5
2.1
Key highlights from the management commentary
1Q performance and demand outlook
TEAM added ~9,000 employees with good revenue growth in 1QFY23.
The management remains optimistic about its growth prospects and suggested
that there are a lot of open positions that can fuel growth in 2QFY23.
There was some tightening in Manufacturing in 1QFY23.
TEAM added 125 new logos in 1QFY23.
General Staffing
There were many layoffs in 1QFY23, with the slowdown impacting FinTechs, e-
commerce, and new-age Tech companies.
Discussions with customers suggest that the companies will continue ramping
up Contract Staffing. Customers were prompt in filling positions.
Margin was affected due to wage hikes, without a corresponding increase in
PAPM.
TEAM added ~13,000 associates in General Staffing in 1QFY23.
Festive demand will accrue at the end of 2Q and early 3QFY23. Retail demand
from rural India will come into play. Companies have planned for headcount
positions, which will accrue from the second-half of 2QFY23.
Specialized Staffing
TEAM saw a delay in hiring in the early part of 1QFY23.
Margin was affected due to an increased wage bill and increase in tech
investments.
TEAM added 15 new logos in Specialized Staffing in 1QFY23.
The demand in IT remains robust as it is in a super-cycle.
In Telecom, it is replacing non-Tech mandates with Tech mandates, which will
drive better margin going forward.
NETAP
NETAP is four industry-led business: Auto, BFSI, Technology, and Consumer,
Retail, and e-commerce.
27 July 2022
3
 Motilal Oswal Financial Services
TeamLease
The dip in headcount was led by a large absorption by a client and slowdown in
three business verticals.
The management expects the slowdown to be temporary and should recover
going forward.
It added 31 new logos in 1QFY23.
The management’s focus will remain on scaling the business, building
compelling products, rapid digital adoption, and to expand the supply network.
TEAM is trying to create a degree program, which will improve realizations by
INR200-300 (from INR550-560 at present).
Margin outlook
In 1QFY23, margin was impacted by: 1) higher unallocated expenses of ~80bp as
it shifted to a new office and a one-time Ind AS 116 impact of 40bp (sustainable
run-rate for unallocated expenses is INR60-70m), 2) higher salary hikes to core
employees (12% v/s the normal hike of 7-8%), 3) seasonality in the EdTech
business, and 4) the timing gap between recognition and creation of certain
provisions.
The management said it will improve its 4QFY23 exit margin to FY22’s exit
margin levels.
Other
It is looking for inorganic growth opportunities in HR Tech and has an active
M&A pipeline.
PF migration is expected to be completed by the end of Sep’22.
On the 80JJAA matter, TEAM is still awaiting a response from the court.
A key beneficiary of formalization
Over the medium term, as the Centre and state governments look to liberalize
and formalize the labor market, TEAM should be among the biggest direct
beneficiaries.
Though we are positive on growth (as demand remains strong), we are cautious
on near-term uncertainties due to an on-going Income Tax dispute and lower
margin.
We are lowering our FY23/FY24 estimate by -12%/-3% to factor lower margin.
Our TP of INR3,520/share implies 34x FY24E EPS.
Exhibit 1: Revisions to our estimates
Revised estimates
FY23E
FY24E
83,531
1,03,472
28.9%
23.9%
1,480
2,101
1.8%
2.0%
1,120
1,701
1.3%
1.6%
75.3
103.4
Earlier estimates
FY23E
FY24E
84,095
1,04,162
29.8%
23.9%
1,784
2,211
2.1%
2.1%
1,384
1,771
1.6%
1.7%
85.9
106.9
Change (%/bp)
FY23E
FY24E
-0.7%
-0.7%
-90bps
0bps
-17.0%
-5.0%
-30bps
-10bps
-19.1%
-4.0%
-30bps
-10bps
-12.3%
-3.3%
Source: MOFSL
Revenue (INR m)
Revenue growth (%)
EBITDA (INR m)
EBITDA margin (%)
EBIT (INR m)
EBIT margin (%)
EPS (INR)
27 July 2022
4
 Motilal Oswal Financial Services
TeamLease
Financials and valuations
Income Statement
Y/E March
Total Income from Operations
Change (%)
Employee Benefit Expense
Other Expense
Total Expenditure
As a percentage of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT
Total Tax
Tax Rate (%)
Minority Interest
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Total Loans
Capital Employed
Net Fixed Assets
Total Investments
Curr. Assets, Loans, and Adv.
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability and Prov.
Other Current Liabilities
Provisions
Net Current Assets
Deferred Tax assets
Appl. of Funds
FY17
30,419
21.4
29,377
599
29,976
98.5
443
1.5
43
400
11
224
613
0
613
-50
-8.2
0
663
663
167.5
2.2
FY18
36,241
19.1
34,712
841
35,553
98.1
688
1.9
92
596
25
154
725
0
725
-9
-1.3
0
735
735
10.7
2.0
FY19
44,476
22.7
41,971
1,560
43,531
97.9
945
2.1
105
839
52
177
964
0
964
-16
-1.7
0
980
980
33.4
2.2
FY20
52,007
16.9
49,365
1,691
51,056
98.2
951
1.8
286
665
123
288
830
0
830
480
57.8
0
350
836
-14.7
1.6
FY21
48,815
-6.1
46,870
960
47,830
98.0
985
2.0
337
648
69
336
915
-30
885
101
11.4
0
785
887
6.1
1.8
FY22
64,798
32.7
61,807
1,567
63,375
97.8
1,424
2.2
408
1,016
40
197
1,173
-750
423
61
14.4
0
362
1,112
25.4
1.7
FY23E
83,531
28.9
79,915
2,136
82,051
98.2
1,480
1.8
360
1,120
37
273
1,355
0
1,355
67
5.0
0
1,288
1,288
15.8
1.5
(INR m)
FY24E
1,03,472
23.9
98,733
2,639
1,01,372
98.0
2,101
2.0
400
1,701
40
200
1,861
0
1,861
93
5.0
0
1,768
1,768
37.2
1.7
(INR m)
FY24E
171
10,557
10,728
812
11,540
2,175
1,374
18,766
5,953
6,010
6,798
10,825
10,452
373
7,941
50
11,540
FY17
171
3,640
3,811
435
4,247
1,029
103
5,641
1,872
247
3,520
2,677
2,525
152
2,964
149
4,247
FY18
171
4,246
4,417
559
4,976
1,378
593
6,491
2,235
671
3,585
3,885
3,661
224
2,606
399
4,976
FY19
171
5,220
5,391
767
6,158
1,578
414
8,251
2,643
504
5,103
4,737
4,347
391
3,513
653
6,158
FY20
171
5,550
5,721
1,854
7,575
2,360
253
9,795
2,959
126
6,710
4,977
4,490
487
4,818
144
7,575
FY21
171
6,389
6,560
1,070
7,630
2,499
700
9,860
2,777
2,593
4,490
5,478
4,962
516
4,382
50
7,630
FY22
171
6,887
7,058
1,702
8,760
2,512
533
12,332
3,697
1,765
6,870
6,644
6,010
634
5,688
26
8,760
FY23E
171
8,790
8,961
729
9,690
2,345
1,374
14,693
4,806
4,019
5,864
8,771
8,438
334
5,921
50
9,690
27 July 2022
5
 Motilal Oswal Financial Services
TeamLease
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E ratio
Cash P/E ratio
P/BV ratio
EV/Sales ratio
EV/EBITDA ratio
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Asset Turnover (x)
Debtor (Days)
Leverage Ratio (x)
Current Ratio
Interest Coverage Ratio
Net Debt/Equity ratio
Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest and Finance Charges
Direct Taxes Paid
(Inc.)/Dec. in WC
CF from Operations
Others
CF from Operations incl. EO
(Inc.)/Dec. in FA
Free Cash Flow
(Pur.)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc./(Dec.) in Debt
Interest Paid
CF from Fin. Activity
Inc./Dec. in Cash
Opening Balance
Closing Balance
FY17
38.8
41.3
222.9
0.0
0.0
97.0
91.2
16.9
2.1
145.8
18.3
19.2
17.1
12.3
7.2
22
2.1
36.5
0.0
FY18
43.0
48.3
258.3
0.0
0.0
87.6
77.9
14.6
1.8
93.4
45.0
17.9
16.5
15.9
7.3
23
1.7
24.2
-0.2
FY19
57.3
63.5
315.3
0.0
0.0
65.7
59.3
11.9
1.5
68.4
-13.8
20.0
18.6
19.1
7.2
22
1.7
16.1
0.0
FY20
48.9
65.6
334.6
0.0
0.0
77.0
57.4
11.3
1.3
69.5
-3.5
15.0
5.8
4.5
6.9
21
2.0
5.4
0.3
FY21
51.9
71.6
383.7
0.0
0.0
72.6
52.6
9.8
1.3
63.8
171.4
14.4
11.5
10.0
6.4
21
1.8
9.4
-0.3
FY22
65.1
88.9
412.8
0.0
0.0
57.9
42.4
9.1
1.0
45.2
-11.4
16.3
12.7
16.1
7.4
21
1.9
25.6
-0.1
FY23E
75.3
96.4
524.1
0.0
0.0
50.0
39.1
7.2
0.7
41.3
148.8
16.1
14.3
19.8
8.6
21
1.7
30.4
-0.5
FY24E
103.4
126.8
627.5
0.0
0.0
36.4
29.7
6.0
0.6
28.2
107.1
18.0
17.0
38.2
9.0
21
1.7
42.5
-0.6
(INR m)
FY24E
1,861
400
-160
-93
53
2,061
0
2,061
-230
1,831
0
160
-70
0
0
0
0
1,991
4,019
6,010
FY17
613
43
-114
-191
-19
332
0
332
-18
314
-202
51
-169
-2
-399
-11
-412
-249
496
247
FY18
728
92
-28
-655
656
792
0
792
-23
769
-202
-10
-235
0
-109
-25
-133
424
247
671
FY19
968
105
-49
-862
-285
-124
0
-124
-113
-236
105
26
18
0
-12
-49
-61
-167
671
504
FY20
851
286
122
-855
-307
97
0
97
-157
-61
-431
115
-473
0
117
-118
-1
-377
504
127
FY21
885
337
-93
1,378
525
3,033
0
3,033
-103
2,930
-743
723
-123
0
-378
-66
-444
2,467
127
2,593
FY22
456
408
608
-593
-939
-61
0
-61
-134
-195
-807
305
-636
0
-100
-31
-131
-828
2,593
1,765
FY23E
1,355
360
-236
-67
1,324
2,736
0
2,736
-193
2,543
0
236
43
0
-277
0
-277
2,503
1,516
4,019
27 July 2022
6
 Motilal Oswal Financial Services
TeamLease
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial
products. MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are
available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a
registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and
National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National
Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance
Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate entities of Motilal Oswal Financial Services Limited are
available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report
should be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific
merchant banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the
website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated
from MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability
or use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong
Kong Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers
Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any
brokerage and investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is
intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as
"major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which
this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration
provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange
Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-
dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this
chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public
appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL
in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”,
of which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
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
27 July 2022
7
 Motilal Oswal Financial Services
TeamLease
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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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