Sector Update |
Update | Financials
Sector
28 February 2024
Indian Health Insurance
Loss ratios likely to moderate from the elevated 3QFY24 levels
Loss ratio trends for 9MFY24
9mFY23
79 78 78 74
9mFY24
67 65
66
55
82 80 84
78
67 60 66 76
Source: MOFSL
As a follow up to our
SAHI thematic report,
we analyze the industry trends along with
the financial performance of SAHIs and the health segment of key private players.
Slow growth and high loss ratios have been the key concerns for STARHEAL. However,
we note that the growth has been steady (16-18% YoY) and is driven by price hikes
and the sum assured. The policy growth rate has been restricted, though, owing to the
company’s conscious strategy of exiting certain cohorts.
Loss ratios for HDFC Ergo/ICICI Lombard/BAGIC rose 210bp/110bp/1,520bp YoY in
3QFY24, while Star Health/Care Health/Aditya Birla Health reported 390bp/620bp/
360bp YoY increase in loss ratios during the quarter. The increase was primarily due to
the elevated claims for respiratory disorders until Oct'23.
However, our channel checks have indicated an improved trajectory over the past
three months, which would help improve the loss ratios in 4QFY24.
Overall premiums in the health insurance segment continue to grow at a healthy pace,
with 10MFY24 growth at 20.8% YoY vs. overall general insurance industry growth of
13.1% YoY. The segment contributed 37.7% of the total premium vs. 35.3% in 10MFY23.
The retail health insurance segment recorded healthy growth of 19.1%/21.5% YoY in
10MFY24/Jan'24. Within this, SAHIs/Private/PSUs grew 24%/17%/10% YoY over
10MFY24 and rose 26%/17%/14% YoY in Jan'24.
With EOM regulations in force, the group segment posted a robust growth of 20%/
16% YoY in 10MFY24/Jan'24. Within this, SAHIs/Private/PSUs grew 36%/31%/9% YoY
over 10MFY24 and rose 36%/19%/1% YoY in Jan'24.
Considering the long-term growth potential for the industry, along with investments
by STARHEAL in profitable channels and products, we reiterate our BUY rating on the
stock with a TP of INR730 (based on 30x FY26E EPS).
Premium growth remains healthy across segments
During 10MFY24, the overall health insurance industry posted a growth of
20.8% YoY fueled by 19.1%/20.0%/27.0% YoY growth in Retail/Group/Govt.
schemes. SAHIs/Pvt/PSUs recorded a growth of 27%/41%/5% YoY. Ex-BAGIC,
which saw a 126% YoY surge, the private players posted a growth of 28% YoY.
In the retail health segment, SAHIs/Pvt/PSUs registered growth of 24%/
17%/10% YoY. The growth was fueled primarily by the price hikes implemented
and increase in the sum assured.
In terms of growth in retail health, CARE led the SAHI pack (~46% growth) over
10MFY24. Growth for STARHEAL was restricted to 17% YoY, owing to its
conscious strategy of exiting certain high-loss ratio cohorts. Similarly, among
private companies, TATA AIG/ILOM/HDFC Ergo/BAGIC reported growth of 30%/
20%/14%/12% YoY.
During 9MFY24, the policy growth rate for STARHEAL/CARE/Manipal
Cigna/Aditya Birla Health stood at 1.8%/13.1%/2.8%/6.7% YoY. For private
sector players, the rate of policy growth/decline for ILOM/Tata AIA/HDFC Ergo
was 6.8%/6%/-3.2% YoY.
In terms of growth in group health, Niva led the SAHI pack (~75% growth) over
10MFY24. Among private companies, TATA AIG/ILOM/HDFC Ergo/BAGIC
reported growth of 25%/31%/24%/46% YoY.
Investors are
28 February 2024
Research Analyst: Prayesh Jain
(Prayesh.Jain@MotilalOswal.com) |
Nemin Doshi
(Nemin.Doshi@MotilalOswal.com)
Research Analyst: Nitin Aggarwal
(Nitin.Aggarwal@MotilalOswal.com) |
Muskan Chopra
(Muskan.Chopra@MotilalOswal.com)
advised to refer through important disclosures made at the last page of the Research Report.
1
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
Sector Update | Financials
Profitability to rebound
During 2Q and 3QFY24, loss ratio for the industry was elevated due to the spike
in monsoon-related respiratory disorders. Against previous year trends, the
incidences were significantly higher in Oct'23, as the month had sporadic rains.
However, our recent channel checks have indicated that the loss ratios have
normalized since Nov'23, and have extended in 4QFY24 as well.
Among SAHIs, STARHEAL/CARE/Aditya Birla posted an increase in the loss ratios
to 67%/60%/76% for 9MFY24. Manipal Cigna, on the other hand, recorded a
slight moderation in the loss ratio to 66% during the period.
Among private health insurance players, ILOM/HDFC Ergo/BAGIC reported an
increase in the loss ratios to 80%/82%/84% for 9MFY24. TATA AIG, on the other
hand, recorded a moderation in loss ratio to 77.6% during the period.
The insurance companies have implemented price hikes across the retail and
group health insurance products. The benefits of these hikes will be reaped over
the next 3-4 quarters.
From a profitability perspective, the claim ratios would normalize as price hikes
would offset medical inflation. The Expense of Management (EOM) ratios
should moderate with scale benefits. The EOM regulations will help companies
manage between commissions and expenses, thus enabling growth across all
channels. Consequently, with these benefits, we believe that the overall
combined ratio will improve going forward.
Among SAHIs, STARHEAL/CARE/Aditya Birla reported an increase in combined
ratios to 98%/97%/121% for 9MFY24. Manipal Cigna, on the other hand, posted
a slight improvement in the combined ratio to 116% for the period.
Among private health insurance players, ILOM/HDFC Ergo recorded an increase in
combined ratios to 107%/104% for 9MFY24. TATA AIG/BAGIC, on the other hand,
posted an improvement in the combined ratios to 112%/101% for the period.
Considering the long-term potential, the overall health insurance industry is well
poised for growth and is on track to achieve 5x-8x industry size by 2030. We
remain optimistic on the overall prospects for STARHEAL, backed by: a) its
strong growth in the retail health industry, given the under-penetration, b) its
increasing focus on tightening the underwriting standards, c) the strong push
from the banca channel, where it will underwrite benefit-based products that
have a relatively better profitability, d) the sustained growth in specialized
products, and 5) its deepening presence. We expect STARHEAL to report a
NEP/PAT CAGR of 17%/34% during FY23-26.
We reiterate our BUY rating with a
TP of INR730 (based on 30x FY26E EPS).
Exhibit 2:
Retail health growth continues to be healthy
GWP (INR b)
60%
45%
30%
15%
0%
60
45
30
15
0
Growth % (YoY)
48%
36%
24%
12%
0%
Valuation and view
Exhibit 1:
Health insurance GWP remains strong
GWP (INR b)
120
90
60
30
0
Growth % (YoY)
Source: MOFSL
28 February 2024
Source: MOFSL
2
 Motilal Oswal Financial Services
Sector Update | Financials
Exhibit 3:
Group segment premiums continue to grow
GWP (INR b)
80
60
40
20
0
Growth % (YoY)
60%
40%
20%
0%
-20%
Exhibit 4:
SAHI’s market share in retail health continues to
trend up
60%
55%
50%
45%
40%
SAHI
Source: MOFSL
Source: MOFSL
Exhibit 5:
Loss ratio trends for 3QFY24
Loss ratio (%)
79
77
78
81
78
79
71
Exhibit 6:
Loss ratio trends for 9MFY24
3QFY24
66
61
64
73
77
3QFY23
64
9mFY23
79
78
78
78
74
84 66
67
9mFY24
65
86
68
55
82
80
67 55 60
66
76
Source: MOFSL
Source: MOFSL
Exhibit 7:
Combined ratio trends for 3QFY24
Combined ratio (%)
119
108
104
103
113
109
112
112
3QFY23
126
95
98
94
100
115
3QFY24
118
125
Exhibit 8:
Combined ratio trends for 9MFY24
Combined ratio (%)
119
106
104
99
97
112
107
104
101
98
9mFY23
118
116
9mFY24
114
121
93
97
Source: MOFSL
Source: MOFSL
Note – For multi-line players, the above charts reflect data points only for the Health segment
28 February 2024
3
 Motilal Oswal Financial Services
Sector Update | Financials
Exhibit 9:
STARHEAL’s performance
INR m
Retail
Group
PA
Travel
GDP
NWP
NEP
Net claims
Claims ratio
Net commission
Commission ratio
Opex
Opex ratio
U/W Profit/(Loss)
Combined ratio
3QFY24
33,012
2,535
490
11
36,058
31,519
32,936
22,295
67.7
3,499
11.1
6,001
19.0
1,142
97.8
3QFY23
28,306
2,171
487
4
30,967
29,434
28,672
18,278
63.7
4,026
13.7
5,115
17.4
1,253
94.8
% YoY
16.6
16.8
0.6
158.5
16.4
7.1
14.9
22.0
394bp
-13.1
-258bp
17.3
166bp
302bp
9mFY24
94,346
7,032
1,431
45
1,02,861
94,974
95,430
64,226
67.3
12,021
12.7
17,370
18.3
1,813
98.2
9mFY23
80,455
5,717
1,335
13
87,532
83,264
83,491
55,150
66.1
11,210
13.5
14,436
17.3
2,695
96.9
% YoY
17.3
23.0
7.2
243.8
17.5
14.1
14.3
16.5
125bp
7.2
-81bp
20.3
95bp
139bp
Source: Company, MOFSL
Exhibit 10:
Care Health’s performance
INR m
Retail
Group
PA
Travel
GDP
NWP
NEP
Net claims
Claims ratio
Net commission
Commission ratio
Opex
Opex ratio
U/W Profit/(Loss)
Combined ratio
3QFY24
9,416
6,319
493
204
16,432
14,490
12,834
7,851
61.2
2,451
16.9
3,141
21.7
-609
99.8
3QFY23
6,416
4,981
874
237
12,508
11,178
9,696
5,334
55.0
1,342
12.0
3,030
27.1
-11
94.1
% YoY
46.8
26.9
-43.6
-14.0
31.4
29.6
32.4
47.2
616bp
82.6
491bp
3.6
-544bp
563bp
9mFY24
26,484
19,226
1,632
930
48,271
42,534
37,316
22,416
60.1
6,999
16.5
8,709
20.5
-808
97.0
9mFY23
18,076
14,766
2,611
1,008
36,461
32,573
27,304
14,958
54.8
3,384
10.4
8,998
27.6
-35
92.8
% YoY
46.5
30.2
-37.5
-7.8
32.4
30.6
36.7
49.9
529bp
106.8
607bp
-3.2
-715bp
421bp
Source: Company, MOFSL
28 February 2024
4
 Motilal Oswal Financial Services
Sector Update | Financials
Exhibit 11:
Manipal Cigna’s performance
INR m
Retail
Group
PA
Travel
GDP
NWP
NEP
Net claims
Claims ratio
Net commission
Commission ratio
Opex
Opex ratio
U/W Profit/(Loss)
Combined ratio
3QFY24
1,758
2,106
77
5
3,946
3,775
3,524
2,244
63.7
843
22.3
1,095
29.0
-658
115.0
3QFY23
1,362
1,982
88
4
3,436
3,274
2,815
1,871
66.5
353
10.8
1,589
48.5
-997
125.8
% YoY
29.1
6.3
-13.0
22.7
14.8
15.3
25.2
19.9
-279bp
139.2
1157bp
-31.1
-1952bp
-1074bp
9mFY24
5,063
6,091
238
17
11,409
10,916
9,946
6,568
66.0
2,112
19.3
3,328
30.5
-2,062
115.9
9mFY23
3,883
5,271
221
11
9,387
8,972
7,758
5,177
66.7
942
10.5
3,690
41.1
-2,051
118.4
% YoY
30.4
15.6
7.8
44.7
21.5
21.7
28.2
26.9
-70bp
124.2
885bp
-9.8
-1064bp
-249bp
Source: Company, MOFSL
Exhibit 12:
Aditya Birla Health’s performance
INR m
Retail
Group
PA
GDP
NWP
NEP
Net claims
Claims ratio
Net commission
Commission ratio
Opex
Opex ratio
U/W Profit/(Loss)
Combined ratio
3QFY24
2,609
5,167
534
8,389
6,588
5,809
4,465
76.9
1,080
16.4
2,078
31.5
-1,814
124.8
3QFY23
1,826
3,639
413
5,878
4,861
4,100
3,002
73.2
397
8.2
1,793
36.9
-1,092
118.3
% YoY
42.9
42.0
29.4
42.7
35.5
41.7
48.7
364bp
172.0
822bp
15.9
-534bp
653bp
9mFY24
7,325
14,966
1,443
23,994
18,747
16,941
12,870
76.0
3,036
16.2
5,350
28.5
-4,314
120.7
9mFY23
5,753
11,633
1,199
18,584
15,366
12,495
8,126
65.0
804
5.2
6,684
43.5
-3,118
113.8
% YoY
27.3
28.7
20.4
29.1
22.0
35.6
58.4
1093bp
277.8
1096bp
-20.0
-1496bp
694bp
Source: Company, MOFSL
28 February 2024
5
 Motilal Oswal Financial Services
Sector Update | Financials
Exhibit 13:
ICICI Lombard’s performance (Health segment)
INR m
Retail
Group
PA
Travel
GDP
NWP
NEP
Net claims
Claims ratio
Net commission
Commission ratio
Opex
Opex ratio
U/W Profit/(Loss)
Combined ratio
3QFY24
2,868
10,922
1,996
464
16,251
14,741
15,473
12,261
79.2
1,609
10.9
2,726
18.5
-1,123
108.6
3QFY23
2,468
8,586
1,564
438
13,057
11,007
11,230
8,776
78.1
56
0.5
3,183
28.9
-785
107.6
% YoY
16.2
27.2
27.6
5.9
24.5
33.9
37.8
39.7
109bp
2,768.6
1041bp
-14.4
-1042bp
107bp
9mFY24
8,475
37,121
5,711
1,885
53,192
47,574
42,406
34,007
80.2
4,417
9.3
8,481
17.8
-4,499
107.3
9mFY23
7,112
28,215
4,353
1,714
41,393
35,692
31,903
24,876
78.0
216
0.6
9,806
27.5
-2,995
106.1
% YoY
19.2
31.6
31.2
9.9
28.5
33.3
32.9
36.7
222bp
1,948.8
868bp
-13.5
-965bp
125bp
Source: Company, MOFSL
Exhibit 14:
BAGIC’s performance (Health segment)
INR m
Retail
Group
Govt
PA
Travel
GDP
NWP
NEP
Net claims
Claims ratio
Net commission
Commission ratio
Opex
Opex ratio
U/W Profit/(Loss)
Combined ratio
3QFY24
2,329
5,892
2,280
540
408
11,450
7,445
7,532
6,495
86.2
618
8.3
1,323
17.8
-905
112.3
3QFY23
2,039
4,347
0
635
341
7,361
6,199
5,764
4,093
71.0
208
3.4
1,836
29.6
-374
104.0
% YoY
14.3
35.6
-
-15.0
19.8
55.5
20.1
30.7
58.7
1521bp
197.3
495bp
-27.9
-1185bp
832bp
9mFY24
6,871
21,364
25,325
1,840
1,526
56,926
25,663
20,629
17,277
83.8
168
0.7
4,143
16.1
-959
100.6
9mFY23
6,175
14,640
1,927
1,669
1,277
25,689
18,544
16,773
12,421
74.1
64
0.3
5,471
29.5
-1,183
103.9
% YoY
11.3
45.9
10.2
19.5
121.6
38.4
23.0
39.1
970bp
161.4
31bp
-24.3
-1336bp
-335bp
Source: Company, MOFSL
28 February 2024
6
 Motilal Oswal Financial Services
Sector Update | Financials
Exhibit 15:
HDFC Ergo’s Health performance
INR m
Retail
Group
PA
Travel
GDP
NWP
NEP
Net claims
Claims ratio
Net commission
Commission ratio
Opex
Opex ratio
U/W Profit/(Loss)
Combined ratio
3QFY24
9,221
4,285
1,257
55
14,818
8,807
9,786
7,887
80.6
1,000
11.4
1,757
19.9
-857
111.9
3QFY23
7,941
3,228
1,292
56
12,517
8,085
8,859
6,951
78.5
-62
-0.8
2,010
24.9
-40
102.6
% YoY
16.1
32.7
-2.7
-1.6
18.4
8.9
10.5
13.5
213bp
-1,707.6
1212bp
-12.6
-492bp
933bp
9mFY24
26,135
12,809
4,428
269
43,641
27,009
29,001
23,909
82.4
1,368
5.1
4,424
16.4
-700
103.9
9mFY23
22,910
10,250
4,862
248
38,270
25,108
25,789
20,114
78.0
-328
-1.3
5,688
22.7
315
99.3
% YoY
14.1
25.0
-8.9
8.7
14.0
7.6
12.5
18.9
445bp
-517.3
637bp
-22.2
-627bp
454bp
Source: Company, MOFSL
Exhibit 16:
Tata AIG’s Health performance
INR m
Retail
Group
PA
Travel
GDP
NWP
NEP
Net claims
Claims ratio
Net commission
Commission ratio
Opex
Opex ratio
U/W Profit/(Loss)
Combined ratio
3QFY24
1,975
3,904
475
803
7,158
6,261
6,095
4,681
76.8
1,171
18.7
1,078
17.2
-836
112.7
3QFY23
1,522
3,280
1,663
600
7,064
5,577
5,178
4,071
78.6
379
6.8
1,851
33.2
-1,122
118.6
% YoY
29.8
19.0
-71.4
33.9
1.3
12.3
17.7
15.0
-181bp
209.5
1192bp
-41.8
-1598bp
-586bp
9mFY24
5,810
12,686
1,494
2,677
22,667
20,116
17,669
13,708
77.6
3,535
17.6
3,313
16.5
-2,887
111.6
9mFY23
4,464
9,930
3,812
2,071
20,277
16,670
15,175
12,013
79.2
1,042
6.3
5,610
33.7
-3,491
119.1
% YoY
30.1
27.8
-60.8
29.3
11.8
20.7
16.4
14.1
-158bp
239.1
1132bp
-40.9
-1718bp
-745bp
Source: Company, MOFSL
Investment in securities market are subject to market risks. Read all the related documents carefully before investing
28 February 2024
7
 Motilal Oswal Financial Services
Sector Update | Financials
NOTES
28 February 2024
8
 Motilal Oswal Financial Services
Sector Update | Financials
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
> - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
*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, Depository participant services & distribution of various financial products. 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 Ltd. are available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/Associate%20Details.pdf
Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
MOFSL, it’s associates, Research Analyst or their relatives may have any financial interest in the subject company. MOFSL and/or its associates and/or Research Analyst or their relatives may have actual
beneficial ownership of 1% or more securities in the subject company at the end of the month immediately preceding the date of publication of the Research Report or date of the public appearance. MOFSL
and its associate company(ies), their directors and Research Analyst and their relatives may have any other potential conflict of interests at the time of publication of the research report or at the time of public
appearance, 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.
In the past 12 months, MOFSL or any of its associates may have:
a) received any compensation/other benefits from the subject company of this report
b) managed or co-managed public offering of securities from subject company of this research report,
c) received compensation for investment banking or merchant banking or brokerage services from subject company of this research report,
d) received compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company of this research report.
•
MOFSL and it’s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report.
•
Subject Company may have been a client of MOFSL or its associates during twelve months preceding the date of distribution of the research report.
•
Research Analyst may have served as director/officer/employee in the subject company.
•
MOFSL and research analyst may engage in market making activity for the subject company.
MOFSL and its associate company(ies), and Research Analyst and their relatives from time to time may have:
a) 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.
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.
To enhance transparency, MOFSL has incorporated a Disclosure of Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the 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.
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.
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.
Disclosure of Interest Statement
Companies where there is interest
Analyst ownership of the stock
No
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 Financial Services Limited
(SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of research report in Hong Kong. This report is intended for distribution only to
“Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity to which this document relates is only available to professional investor and will be engaged only with
professional investors.” Nothing here is an offer or solicitation of these securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s)
who compile this report is/are not located in Hong Kong & are not conducting Research Analysis in Hong Kong.
28 February 2024
9
 Motilal Oswal Financial Services
Sector Update | Financials
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. 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 of Singapore .Accordingly,
if a Singapore person is not, or ceases to be, such an investor, they must immediately discontinue any use of this Report and inform MOCMSPL .
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any
other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose and may not be used or considered as an offer
document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any
investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own
investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient.
Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document
(including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be suitable for all
investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade securities - involve substantial risk and are not suitable for all investors.
No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions contained in this document. The Disclosures of Interest Statement
incorporated in this document is provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. This information is subject to change without any
prior notice. The Company reserves the right to make modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and
the employees may from time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to perform
investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a separate, distinct and independent of
each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already available in publicly accessible media or
developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the views expressed therein. This document is being supplied to you
solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. This report is not directed
or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use
would be contrary to law, regulation or which would subject MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all
jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. Neither the Firm, not its directors,
employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with
the use of the information. The person accessing this information specifically agrees to exempt MOFSL or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and
agrees not to hold MOFSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses, costs,
damages, expenses that may be suffered by the person accessing this information due to any errors and delays.
This report is meant for the clients of Motilal Oswal only.
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 - 71934200 / 71934263; www.motilaloswal.com.
Correspondence Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 71881000. Details of Compliance Officer: Neeraj Agarwal, Email
Id: na@motilaloswal.com, Contact No.:022-40548085.
Grievance Redressal Cell:
Contact Person
Ms. Hemangi Date
Ms. Kumud Upadhyay
Mr. Ajay Menon
Contact No.
022 40548000 / 022 67490600
022 40548082
022 40548083
Email ID
query@motilaloswal.com
servicehead@motilaloswal.com
am@motilaloswal.com
Registration details of group entities.: Motilal Oswal Financial Services Ltd. (MOFSL): INZ000158836 (BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412 . AMFI:
ARN .: 146822. IRDA Corporate Agent – CA0579. Motilal Oswal Financial Services Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Insurance, Bond, NCDs and IPO products.
Customer having any query/feedback/ clarification may write to query@motilaloswal.com. In case of grievances for any of the services rendered by Motilal Oswal Financial Services Limited (MOFSL) write to
grievances@motilaloswal.com, for DP to dpgrievances@motilaloswal.com.
28 February 2024
10