India Strategy
Gautam Duggad
Gautam.Duggad@motilaloswal.com
The Eagle Eye
Aanshul Agarawal
Aanshul.Agarawal@motilaloswal.com
Deven Mistry
Deven@motilaloswal.com
June 2024
June 2020
 Motilal Oswal Financial Services
GLOBAL MARKETS
The US outperforms key global markets, India
remains volatile
The MSCI India’s outperformance continues
Indian market cap hits USD5t
Indian equity markets witness broad-based gains
across market caps in the past decade
INTIATING COVERAGE AND
NOTABLE PUBLISHED REPORTS
Five-Star Business Finance | IC: Franchise with
a flair to dominate the SBL segment
MTAR Technologies | IC : The Clean revolution !
Real GDP growth higher than expectations,
beating all estimates
Earnings review – 4QFY24: A broad-based beat!
DOMESTIC MARKETS
General Election (2024) Results: A surprise
verdict…but with mandate for continuity
Midcaps outperform; Capital Goods and Metals
the top gainers in May’24
About 42% of the Nifty constituents end higher in
May’24
Around 50% of the BSE-200 constituents end
higher in May’24
MULTI-YEAR HIGHS AND LOWS
CONTENTS
Forex at an all-time high of USD647b; but
exchange rate continues to moderate
Indian VIX witnesses a spike in May’24
Nifty composition: Auto and Telecom witness a
rise in weights MoM
The 10-year yield spread between India and the
US remains unchanged MoM
FLOWS AND VOLUMES
FII flows continue to remain weak; DII flows
strengthen during the month
Average monthly cash rises, while F&O volumes
moderate MoM
Mid and small cap equity MF schemes witness
strong inflows in the last three years
VALUATIONS
The 12-month trailing P/E for the Nifty stands at
21.9x, at a 2% discount to its LPA of 22.4x.
Nifty’s 12-month forward P/E trading at 19.2x,
at a 5% discount to the LPA of 20.3x.
India’s 10-year bond yield stands at 7.0%. The
EY/BY trades near its LPA on a trailing basis, and
also on a forward basis.
CHART BOOK | June 2024
2
June 2020
 Motilal Oswal Financial Services
The US outperforms key global markets, India remains volatile
World equity indices (MoM) in USD terms (%): The US outperforms key global markets, India ends flat MoM
5
5
4
MoM change (%)
3
2
2
0
0
0
-2
-4
-6
CY24YTD performance of global equity indices in USD terms (%)
11
11
11
CY24YTD change (%)
8
7
4
3
3
2
-1
-8
-16
CHART BOOK | June 2024
3
June 2020
 Motilal Oswal Financial Services
The MSCI India’s outperformance continues
Performance of the MSCI India index vs. MSCI US, MSCI World, MSCI Emerging Market, and MSCI China indices, in USD terms
140
MSCI China
MSCI India
MSCI US
MSCI World
MSCI EM
(indices rebased to 100)
130
130
126
123
120
110
109
100
102
90
80
CHART BOOK | June 2024
4
June 2020
 Motilal Oswal Financial Services
Real GDP growth higher than expectations, beating all estimates
FY24 growth at 8.2%; FY25 could see a sharp deceleration
Real GDP growth came in much higher than expected at 7.8% in 4QFY24 vs. 8.6% (revised higher from 8.2%) in 3QFY24 and 6.2%
in 4QFY23. The number is much higher than the market consensus of 7% and our expectation of 7.3%. Higher-than-expected GDP
growth was led by robust growth in investments and higher contribution of net exports. Even, private consumption witnessed
some improvement in 4QFY24. Another important factor contributing to this stellar growth number was robust growth in real net
indirect taxes and higher discrepancies.
GDP growth for FY24 stood at 8.2% vs. 7% in FY23, which is the highest since FY17 barring FY22. The annual growth number has
also come much higher than the market consensus (7.9%) and our expectations (8%). Real investment was the major driver of
growth, which grew 9.4% in FY24 vs. 5.5% in FY23. On the other hand, private consumption remained weak. It grew 4% in FY24 vs.
6.8% in FY23.
Importantly, nominal GDP growth was ~10% YoY for the third consecutive quarter in 4Q (better than forecast), implying 9.6%
growth in FY24.
Overall, while headline growth was better, we don't see a major reason for the cheer, as the details are not convincing. We
continue to believe that real GVA growth could be ~6% in FY25, with GDP growth at ~6.5%. Such decent growth (on such base)
doesn't warrant any monetary easing in the near term. For FY25, we predict real GDP growth to decelerate to 5.5-6%.
Report link
Real GDP growth accelerated to 8.2% YoY…
Real GDP growth (% YoY)
Nominal GDP growth (% YoY)
(pp)
7.8
2.8
1.2
2.4
-0.2
2.8
3.2
-5.5
3.2
3.8
3.9
2.2
-1.3
…led by higher investments and discrepancies
Consumption*
Investments
Net exports
Discrepancy
4.0
2.8
-1.8
2.5
0.1
2.9
10.3
8.6
2.3
9.9
7.8
4QFY21
2QFY22
4QFY22
2QFY23
4QFY23
2QFY24
4QFY24
4QFY23
1QFY24
2QFY24
3QFY24
4QFY24
CHART BOOK | June 2024
5
June 2020
 Motilal Oswal Financial Services
General Election (2024) Results: A surprise verdict…but with mandate for continuity
BJP remains the single-largest party despite a lower number of winning seats than previous two terms
364
371
361
283
404
352
295
197
353
232
161
182
182
146
206
282
303
240
1951
1957
1962
1967
1971
1977
1980
1984
1989
1991
1996
1998
1999
2004
2009
2014
2019
2024
NDA still leads with a higher number of seats than the previous coalition government
NDA
UPA/ INDIA
336
254
270
218
144
156
181
159
91
59
262
352
293
240
1998
1999
2004
2009
2014
2019
2024
CHART BOOK | June 2024
6
June 2020
 Motilal Oswal Financial Services
BJP below the 272 mark; NDA gets a majority; Congress gains big on a low base
Seats and vote-share distribution of key political parties
Party name
Bharatiya Janata Party - BJP
Indian National Congress - INC
Samajwadi Party - SP
Other regional/independent parties
All India Trinamool Congress - AITC
Dravida Munnetra Kazhagam - DMK
Telugu Desam - TDP
Janata Dal (United) - JD(U)
Shiv Sena (Uddhav Balasaheb Thackrey) - SHSUBT
Shiv Sena - SHS
Nationalist Congress Party – Sharadchandra Pawar - NCPSP
Lok Janshakti Party(Ram Vilas) - LJPRV
Yuvajana Sramika Rythu Congress Party - YSRCP
Communist Party of India (Marxist) - CPI(M)
Rashtriya Janata Dal - RJD
Aam Aadmi Party - AAAP
Jammu & Kashmir National Conference - JKN
Communist Party of India - CPI
Janata Dal (Secular) - JD(S)
Rashtriya Lok Dal - RLD
Nationalist Congress Party - NCP
Shiromani Akali Dal - SAD
Biju Janata Dal - BJD
Bahujan Samaj Party (BSP)
Bharat Rashtra Samithi (BRS)
All India Anna Dravida Munnetra Kazhagam (AIADMK)
Total
2009
Seat
116
206
23
32
19
18
6
20
11
Vote
19.6
28.5
3.4
16.1
3.2
1.8
2.5
1.5
1.5
Seat
282
44
5
35
34
0
16
2
18
2014
Vote
31.0
19.3
3.4
12.0
3.8
1.7
2.5
1.1
1.9
Seat
303
52
5
28
22
23
3
16
18
2019
Vote
37.4
19.5
2.6
12.8
4.1
2.3
2.0
1.5
2.1
Seat
240
99
37
34
29
22
16
12
9
7
8
5
4
4
4
3
2
2
2
2
1
1
0
0
0
0
543
2024
Vote
36.6
21.2
4.6
12.1
4.4
1.8
2.0
1.3
1.5
1.2
0.9
0.4
2.1
1.8
1.6
1.1
0.2
0.5
0.3
-
0.3
0.3
1.5
2.0
0.6
-
100.0
0
16
4
0
3
4
3
5
9
4
14
21
0
9
543
0.0
5.3
1.3
0.0
0.1
1.4
0.8
0.4
2.0
1.0
1.6
6.1
0.0
1.7
99.8
9
9
4
4
0
1
2
0
6
4
20
0
11
37
543
2.5
3.2
1.3
2.0
0.1
0.8
0.7
0.1
1.6
0.7
1.7
4.1
1.2
3.3
100
22
3
0
1
3
2
1
1
5
2
12
10
9
1
542
2.5
1.8
0.1
0.4
0.1
0.6
0.6
0.1
1.4
0.6
1.7
3.6
1.3
1.3
100.0
CHART BOOK | June 2024
7
June 2020
 Motilal Oswal Financial Services
Indian markets have mostly remained positive post-general election results
While the markets have remained volatile during the general election period, they closed higher 6 and 12 months after the results
(for the past four general elections)
Nifty closing
General
election
11th
12th
13th
14th
Year
1996
1998
1999
2004
Political party
BJP
BJP
BJP-led NDA
Congress-led UPA
LS Election Result
date
09-May-96
02-Mar-98
06-Oct-99
13-May-04
6 months
after results
885
843
1,453
1,873
12 months after
results
1,053
1,376
1,285
1,988
Change (%)
6 months after
results
-19%
-23%
4%
9%
12 months after
results
-3%
25%
-8%
16%
15th
16th
17th
2009
2014
2019
Congress-led UPA
BJP-led NDA
BJP-led NDA
16-May-09
16-May-14
23-May-19
5,058
8,390
11,914
5,094
8,262
*12,081
38%
16%
2%
39%
15%
4%
Note: *Have considered Nifty closing as of 23
rd
Feb’20 (9 months after 2019 election result date), due to sharp market fall in Mar’20 due to Covid19-led disruptions
Indices performance 12 months after the Lok Sabha Elections (%)
Nifty50
Nifty Midcap 100
Nifty Smallcap 100
91
77
81
33
39
37
28
15
4
5
16
-3
May 2004-05
May 2009-10
May 2014-15
May 2019- Feb 2020
CHART BOOK | June 2024
8
June 2020
 Motilal Oswal Financial Services
Indian market cap hits USD5t
Indian market cap hits USD5t in May’24. The journey from USD4t to USD5t took only six months (vs. 2.5 years for the journey
from USD3t to USD4t)
Indian market cap (INR t /USD t)
BSE mkt cap (in INR t)
USD 5t
USD 4t
USD 3t
417
335
USD 2t
219
130
USD 1t
41
May-07
Jul-17
64.53
May-21
72.97
Nov-23
83.33
May-24
83.31
USD : INR
40.22
CHART BOOK | June 2024
9
June 2020
 Motilal Oswal Financial Services
Indian equity markets witness broad-based gains across market caps
Among BSE-500, the number of companies with market cap between USD1t and USD10t jumped ~3x, whereas, the number of
companies above USD10t market cap surged ~4x in the past decade.
Count of companies with various market cap range (USD b)
Above 50 USD b
10-50 USD b
5-10 USD b
1-5 USD b
Count of companies
11
95
84
3
25
28
125
347
May'14
Note: USD vs INR: May’14 = INR 59.1 and May’24=INR 83.47
May'24
CHART BOOK | June 2024
10
June 2020
 Motilal Oswal Financial Services
Indian VIX witnesses a spike in May’24
INDIA: Nifty VIX and Nifty-50 Index
26
Nifty volatility index
Nifty closing
24,000
22,000
22
20,000
18
VIX average 14.3
18,000
14
16,000
10
14,000
CHART BOOK | June 2024
11
June 2020
 Motilal Oswal Financial Services
Midcaps outperform; Capital Goods and Metals the top gainers in May’24
Sectoral performance MoM (%): Capital goods and Metals among the top gainers; PSU Banks and Technology were the key laggards
during the month
11
6
2
5
4
1
0
-2
0
-1
-1
-1
-2
MoM change (%)
0
-3
Sectoral performance CY24YTD (%): Real Estate and PSU Banks among the top gainers; Media and Technology the key laggards
30
12
4
10
29
26
26
CY24YTD change (%)
22
20
19
12
-3
-5
-9
-22
Note: (*) represents BSE capital goods index
CHART BOOK | June 2024
12
June 2020
 Motilal Oswal Financial Services
About 42% of the Nifty constituents end higher in May’24
Among Nifty constituents, 21 companies closed higher MoM and 24 outperformed the benchmark.
About 27 Nifty constituents have traded higher in CY24YTD. M&M, Adani Ports, and BPCL, have been the top gainers; whereas, LTIM,
Asian Paints, and HDFC Life have been the key laggards.
Best and worst Nifty performers (MoM) (%)
16
13
12
8
8
8
8
7
4
4
0
-4
-5
-5
-6
-6
-7
-7
-8
-8
-10
Best and worst Nifty performers CY24YTD (%)
45
40
39
34
33
31
31
29
29
24
4
-9
-10
-10
-11
-12
-12
-13
-15
-15
-25
CHART BOOK | June 2024
13
June 2020
 Motilal Oswal Financial Services
Around 49% of the BSE-200 constituents end higher in May’24
During the month, 99 companies closed higher MoM, with Hindustan Zinc gaining the most in May’24
About 138 of the BSE-200 constituents have been trading higher in CY24YTD. Hindustan Zinc, Cummins India, and IRFC have been the top
gainers.
Top gainers from the BSE-200 pack on a MoM basis (%)*
61
27
27
26
26
26
23
23
22
19
19
16
16
16
15
15
15
15
15
14
14
13
13
13
12
12
12
11
11
11
1
Top gainers from the BSE-200 pack in CY24YTD (%)*
116
81
79
78
77
77
75
74
73
71
66
63
61
61
59
54
54
50
49
48
45
45
44
43
43
42
41
40
39
39
8
*List excludes Nifty constituents
*List excludes Nifty constituents
CHART BOOK | June 2024
14
June 2020
 Motilal Oswal Financial Services
Around 51% of the BSE-200 constituents end lower in May’24
During the month, 101 companies closed lower. Bank of India, Gujarat Fluoro, and SRF were among the key laggards.
Around 62 of the BSE-200 companies have been trading lower in CY24YTD. Zee Ent., One97, and Berger Paints have remained the
key laggards in CY24YTD.
A few key laggards among BSE-200 constituents on a MoM basis (%)*
1
-10 -10
-10
-12 -11
-17
-16
-16 -14
-14
-9
-9
-9
-9
-9
-8
-8
-8
-8
-7
-7
-7
-7
-6
-6
-6
-6
-6
-6
-5
Key laggards among the BSE-200 constituents in CY24YTD (%)*
8
-14 -13 -13 -12 -11 -11
-19 -18 -18 -17 -17 -17 -15 -14
-24 -22
-22
-21 -21
-46 -43
-9
-9
-9
-8
-8
-8
-7
-6
-5
*List excludes Nifty constituents
CHART BOOK | June 2024
15
June 2020
 Motilal Oswal Financial Services
NSE indices: Valuation snapshot
The mid and small cap outperformance continues, with Nifty Midcap and Nifty Smallcap indices surging 53% YoY and 64% YoY,
respectively, while Nifty-50 rose 22% YoY
Among the key Nifty sectoral indices, Energy, Auto, and Metals have been the top performers in the last one year.
Nifty-50 has been trading below its LPA; whereas, most of the sectoral indices (ex-Banks) have been trading at a premium to their LPA.
Nifty
Nifty Smallcap
Midcap 100
100
51,706
16,697
Indices
May'24 closing
Nifty50
22,531
Nifty 500
21,103
Nifty Auto
23,420
Nifty BANK Nifty FMCG
48,984
54,107
Nifty IT
32,386
Nifty Metal Nifty Energy
9,724
40,256
YoY change (%)
EPS (12-month fwd)
P/E (12-month fwd)
P/E (10-yr average)
P/B (12-month fwd)
22
976
19.2
20.3
3.1
53
1526
30.3
21.3
3.9
64
818
19.0
15.7
3.0
34
906
21.9
19.0
3.4
65
1017
21.8
18.7
4.1
11
3378
13.8
15.8
2.0
6
1423
36.6
32.8
9.6
10
1248
24.7
20.2
6.4
65
515
16.6
10.7
2.1
69
2702
14.7
11.2
2.0
P/B (10-yr average)
RoE (%)
2.8
16.2
2.5
11.6
1.8
15.1
2.7
14.9
2.8
18.2
2.1
15.4
8.6
25.8
4.8
25.5
1.2
11.8
1.4
13.7
Source: Bloomberg, MOFSL; as of 31
st
May’24| LPA: Long period average i.e. 10-year average
CHART BOOK | June 2024
16
June 2020
 Motilal Oswal Financial Services
Nifty composition: Auto and Telecom’s weight rises MoM
The weights of both Auto and Telecom rose 30bp and 10bp MoM, while those of O&G and Technology fell 30bp and 25bp MoM,
respectively.
Auto, O&G, Telecom, Utilities, and PSBs witness gains; whereas Pvt. Banks, Consumer, and Technology experience a decline in
weights in FY24YTD
Weightage in the Nifty (%)
Sector
Dec’04
Dec’08
Dec’12
Dec’20
Dec’21
Dec’22
Dec’23
Mar’24
Apr’24
May’24
Automobiles
Banks – Private
Banks – Public
NBFC + Insurance
Capital Goods
Cement
Consumer
Healthcare
Metals
Oil and Gas
Reliance
Telecom
Technology
Utilities
Miscellaneous
Nifty
6.7
4.7
5.8
2.1
4
2.8
7.8
6.3
8.2
27.1
8.3
6.3
14.5
1.9
2
100
2.5
5
5.4
2.3
7.7
1.7
6.5
2.6
4.8
24.5
10.6
11.6
9
13.3
3.3
100
8.8
16.9
4.7
7.9
5.9
4.2
12.3
5
3.8
12.3
7.4
2
11.4
4.5
0.5
100
5.4
24.7
1.8
12.3
2.6
2.2
10.4
3.6
2
12.5
10.7
2
16.3
2.1
2.1
100
5
21.9
2.3
11.4
3
2.4
9.4
3.4
2.9
12.3
10.8
2.1
19.1
2.1
2.6
100
5.3
24.2
2.9
10.6
3.1
1.8
10.3
3.8
2.9
12.1
11.0
2.5
14.0
2.5
3.9
100
6.5
28.2
2.6
4.5
4.4
2.1
10.8
4
3
10.5
9.2
2.7
13.6
3.6
3.5
100
7.6
25.6
2.9
5.0
4.5
2.0
9.5
4.4
2.9
11.9
10.2
3.2
13.0
3.9
3.5
100
7.8
26.3
3.2
4.8
4.3
2.0
9.3
4.2
3.2
11.7
10.0
3.5
12.3
4.2
3.3
100
8.1
26.3
3.2
4.6
4.4
2.0
9.3
4.2
3.2
11.4
9.7
3.6
12.1
4.3
3.3
100
Note: Merger of HDFC Bank and HDFC Ltd. resulted in a shift in weightage from NBFCs to Pvt Banks in CY23
CHART BOOK | June 2024
17
June 2020
 Motilal Oswal Financial Services
FII flows continue to remain weak; DII flows strengthen during the month
FIIs remained sellers to tune of USD3b in May’24. DII inflows were the second highest in 50 months (after Mar’24) at USD6.7b.
FIIs remain net sellers in CY24YTD, whereas DII inflows over the past five months exceeded that of the entire CY23
Monthly institutional flows (USD b)
Net FII(USD b)
6.8
4.7
0.8
1.0
-0.2
1.8 1.9
5.0
6.7
4.1
1.7
2.3
0.5
1.3
-1.6
-4.9
-6.3
-0.6
-2.3
-2.7
-3.1
-1.1
-3.0
7.0
4.0
2.9
Net DII (USD b)
6.1
6.0
4.1
2.3
0.3
0.5
-0.3
3.7
3.0 2.4 3.4
3.2 3.1
1.7 1.6
6.8
5.3
6.7
1.7
1.1
-3.7
-0.9
-0.8
-0.4
Yearly institutional flows (USD b)
Net FII(USD b)
14.2
23.4
21.4
3.8
Net DII(USD b)
15.9
32.2
22.3
25.0
7.7
14.0
12.1
6.0
-4.6
-17.0
-2.8
-5.0
CHART BOOK | June 2024
18
June 2020
 Motilal Oswal Financial Services
Average monthly cash rises, while F&O volumes moderate MoM
Average cash volumes rose 5% MoM to INR1,199b in May’24. Non-institutional participation accounted for 49% of the total cash
volumes
The monthly average F&O volumes moderated ~3% MoM to INR432t in May’25.
1350
1050
750
450
150
Monthly Avg. Cash Volume (INR b)
Non Institution % to Cash Volume (RHS)
78
66
54
49
42
30
Monthly Avg F&O Volume (INR t)
600
450
Cash % to Total Volumes
6.0
4.0
300
150
0
2.0
0.3
0.0
-2.0
CHART BOOK | June 2024
19
June 2020
 Motilal Oswal Financial Services
Mid and small cap equity MF schemes witness strong inflows in the last three years
Flows in equity mutual funds reported 22% CAGR in the past four years.
Inflows to mid and small cap schemes posted 13% and 40% CAGR, respectively, while that of large caps remained flat.
Scheme wise fund inflows (INR b)
CHART BOOK | June 2024
20
June 2020
 Motilal Oswal Financial Services
The 10-year yield spread between India and the US remains unchanged MoM
The Indian bond yield closed at 7.0% vs. the US bond yield of 4.5% in May’24. The yield spread remained flat MoM at 2.5%.
India 10-year yield
India’s fiscal tightening,
strong economic growth led by
the global book, and Fed
raising rates
US 10-year yield
Fed tightening,
geopolitical
uncertainties, and
a sharp rise in
bond yields
10.0
GFC
Fed cuts rates to zero
after the GFC
Fed raises rates
Fed easing, the
US-Sino trade
war, and
Covid-19
7.5
2.5
5.0
0.6
6.9
6.0
3.9
4.4
2.5
0.0
CHART BOOK | June 2024
21
June 2020
 Motilal Oswal Financial Services
Forex at an all-time high of USD 647b; but exchange rate continues to moderate
India’s forex reserves touched an all time high of USD647b.
On the currency front, INR remained relatively stable, depreciating nearly 1% in the past one year (vs depreciating 7% in the previous year)
Forex Reserves (USD b) (RHS)
USD:INR
Eurozone crisis, taper tantrum, and
devaluation of the RMB – the taper
tantrum episode in CY13 drove the
INR down sharply to 68 from 55 in
just four months. This was a period
of high inflation and INR
depreciation
Low inflation has characterized
the period post CY15. The INR
has been relatively less volatile,
despite several global
headwinds. Forex reverses are
surging
Pandemic impact, geopolitical
tensions led to global volatility,
high liquidity, followed by
quantitative tightening, sharp
currency depreciation, but
resilient economy
90
75
60
45
30
The INR had its best run during the CY03-07
global bull-run when GDP and corporate
earnings growth were high and the twin
deficits – CAD and FD – were among the
lowest in two decades
800
600
400
200
0
Pre GFC peak
in FX reserves
Source: Bloomberg, MOFSL
CHART BOOK | June 2024
22
June 2020
 Motilal Oswal Financial Services
Earnings review – 4QFY24:
A broad-based beat!
Sector-wise 4QFY24 performance of MOFSL Universe companies (INR b)
Sector
(no of companies)
Automobiles (25)
Capital Goods (11)
Cement (11)
Chemicals-Spec. (12)
Consumer (19)
EMS (5)
Financials (48)
Banks-Private (13)
Banks-PSU (6)
Insurance (6)
NBFC - Lending (18)
NBFC - Non Lend (5)
Healthcare (23)
Infrastructure (3)
Logistics (8)
Media (3)
Metals (10)
Oil & Gas (15)
Ex OMCs (12)
Real Estate (10)
Retail (18)
Staffing (4)
Technology (12)
Telecom (4)
Others (17)
MOFSL Universe (258)
Ex Financials (210)
Ex Metals & Oil (233)
Ex OMCs (255)
Nifty (50)
Sensex (30)
Sales
Chg. % Chg. % Var. over
Mar-24
QoQ
YoY
Exp. %
3,001
6.1
13.7
1.3
1,044
24.7
17.2
2.1
582
13.9
7.5
1.3
157
4.5
-6.9
2.5
810
0.0
3.8
-0.9
25
33.9
42.4
5.0
2,895
9.3
13.9
1.0
887
3.2
16.1
0.5
888
3.8
6.0
0.9
798
26.4
16.7
1.6
290
5.8
23.1
1.1
31
18.4
64.0
9.1
784
2.7
13.0
0.4
54
15.3
12.6
1.4
152
2.4
14.0
-1.1
44
-2.8
7.0
7.0
2,912
6.7
-3.8
1.3
7,907
1.6
2.8
-0.3
3,613
2.6
6.3
-4.7
153
44.0
17.1
10.4
433
-8.2
19.8
1.5
111
1.0
10.7
-4.0
1,856
-0.1
2.2
-1.4
611
-0.5
5.6
-2.5
644
6.3
6.4
7.1
24,175
4.7
6.0
0.5
21,280
4.1
5.0
0.5
13,356
6.2
10.5
0.9
19,881
5.6
7.4
-0.1
14,890
5.2
6.6
-2.2
10,876
5.4
8.0
-3.1
EBITDA
Chg. % Chg. % Var. over
Mar-24
QoQ
YoY
Exp. %
423
8.0
28
1.7
130
37.2
18.9
6.3
101
8.6
29
3.8
27
0.8
-25.1
0.2
197
-2.1
5
-1.0
3
47.7
20.5
-5.1
1,617
14.4
18
8.6
730
13.4
26.0
10.7
615
18.6
9
9.8
40
22.0
-9.9
1.2
219
5.5
23
1.0
13
29.0
72.3
2.0
177
5.7
28
1.5
14
11.8
10.4
2.0
56
-0.6
20
-3.6
7
-26.9
11.7
12.4
491
-3.9
-4
3.7
968
4.2
2.9
-0.1
717
4.0
12
4.8
48
46.6
45.2
17.6
50
-18.9
20
-0.8
4
4.6
19.7
-6.2
427
0.1
2
-1.2
288
-0.2
5.3
-2.6
94
7.4
5
5.8
5,123
6.5
10.6
3.3
3,506
3.2
7.6
1.0
3,664
8.7
15.1
4.1
4,872
6.6
12.5
4.2
3,627
7.0
10.8
1.9
2,935
8.4
11.7
2.7
PBT
Chg. % Chg. % Var. over
Mar-24
QoQ
YoY
Exp. %
312
11.2
45.0
4.3
122
45
25.1
12.6
70
12.7
36.0
6.7
20
3
-33.3
1.0
189
-1.7
6.2
-1.0
3
62
24.0
2.6
1,251
15.6
17.7
1.9
523
-2
5.1
-7.8
520
45.8
31.7
15.7
24
27
15.3
-2.0
170
6.0
20.1
-1.7
14
29
79.4
4.4
151
16.0
48.3
8.0
9
46
31.4
20.7
38
-6.1
24.7
-9.7
6
-30
38.3
45.0
315
-7.0
-3.7
13.2
681
6
-0.1
1.9
510
5.5
21.1
10.9
44
70
57.1
24.3
25
-30.9
15.2
-1.5
2
-15
4.8
-40.7
393
2.2
2.8
-1.2
3
LP
-62.9
-28.1
45
18.4
-5.6
2.3
3,678
9.3
12.2
3.2
2,427
6.3
9.5
3.9
2,682
12.6
18.1
2.5
3,507
9.4
16.2
4.5
2,695
10.0
12.4
3.5
2,145
12.9
11.2
3.2
PAT
Chg. % Chg. % Var. over
Mar-24
QoQ
YoY
Exp. %
244
7.9
31.8
9.7
88
53.5
26.8
21.0
51
10.3
42.8
7.9
15
-4.4
-42.2
-6.8
144
-2.5
7.8
0.1
2
58.8
24.7
2.5
980
12.4
21.7
5.8
443
5.5
18.1
3.9
379
24.0
26.2
12.8
20
12.3
1.9
-16.2
128
5.7
21.7
-1.6
11
27.0
82.2
3.2
112
11.0
44.1
6.1
5
29.5
21.2
10.7
32
0.0
8.0
-0.4
4
-29.1
44.5
25.3
212
-12.0
-12.5
5.8
498
6.7
-6.9
0.6
366
5.4
11.9
7.9
37
70.3
24.1
27.0
19
-30.0
4.3
-5.9
1
-19.3
-17.7
-50.7
291
2.5
1.9
-1.9
-25
Loss
Loss
Loss
39
-5.9
-0.2
6.9
2,750
7.5
9.9
4.9
1,770
5.0
4.3
4.5
2,040
10.2
18.3
6.0
2,617
7.4
14.1
6.2
2,041
8.3
11.6
6.7
1,616
10.4
10.3
6.8
CHART BOOK | June 2024
23
June 2020
 Motilal Oswal Financial Services
KEY REPORTS FROM MOFSL’S RESEARCH DESK
CHART BOOK | June 2024
24
June 2020
 Motilal Oswal Financial Services
Five-Star Business Finance | Initiating Coverage: Franchise with a flair to dominate the
SBL segment
Untapped opportunity with benign competition to aid >30% AUM CAGR
Five-Star Business Finance (FIVESTAR) is a Non-Banking Financial Company (NBFC) that provides small business loans (SBL) predominantly to
micro-entrepreneurs, self-employed individuals, or informal salaried individuals for working capital, asset creation, or personal expense
purposes.
These loans are secured against collateral, typically a self-occupied residential property (SORP). FIVESTAR has delivered an AUM CAGR of ~25%
over FY20-FY24, with an AUM of ~INR96.4b as of Mar’24. FIVESTAR’s key states are Andhra Pradesh, Telangana, Tamil Nadu, and Karnataka,
which together contribute ~94% of the AUM. The company has 520 branches spread across 10 states and UT.
We initiate coverage on the stock with a BUY rating and a TP of INR950 (based on 3.7x FY26E P/BV). Key downside risks include concentration
in southern India, rising competitive intensity resulting in loss of pricing power, and further seasoning of the portfolio leading to asset quality
deterioration and higher credit costs.
Expect ~31% AUM CAGR over FY24-FY26
AUM (INR b)
110
84
36
14
21
FY19
39
FY20
44
FY21
14
51
FY22
69
FY23
96
FY24
129
FY25E
166
FY26E
15
FY19
Disbursements CAGR at ~28% over FY24-FY26E
YoY growth (%)
110
63
39
Disbursements (INR b)
93
41
YoY growth (%)
44
30
26
34
29
-48
24
FY20
12
FY21
18
FY22
34
FY23
49
FY24
63
FY25E
80
FY26E
NIM is likely to contract to ~18% in FY26
NIM - basis average AUM (%)
20.0
17.6
19.0
16.5
20.6
19.9
Estimate a PAT CAGR of ~23% over FY24-FY26
PAT (INR b)
67
18.7
17.9
37
26
33
39
23
23
YoY growth (%)
1.6
FY19
FY20
FY21
FY22
FY23
FY24
FY25E
FY26E
2.6
3.6
4.5
6.0
8.4
10.3
12.7
FY19
FY20
FY21
FY22
FY23
FY24
FY25E
FY26E
CHART BOOK | June 2024
25
June 2020
 Motilal Oswal Financial Services
MTAR Technologies | Initiating coverage – The Clean revolution !
Running at full throttle and ready to take off
MTAR Technologies (MTARTECH)
has established itself as a key supplier of precision engineered systems for clean energy – fuel cells, nuclear,
etc. – to global MNCs, government departments, and large Indian public and private sector enterprises. The company has seven
manufacturing units (including one EOU) in Hyderabad.
MTARTECH's
business segments are poised to report strong order inflows (39% CAGR during FY24-26E), aided by emerging global
demand (fuel cells) and accelerated government initiatives (in nuclear, space, and defense).
Clean Energy – the fuel cells segment is likely to maintain its dominance in the order book/revenue, with its contribution expected
to rise to 50%/57% by FY26 from 55%/60% in FY24.
The nuclear, space, and defense sectors are also expected to see a significant ramp-up in order flows with increase in the
government's focus on indigenization. Further, import substitution will emerge as a new growth engine for the company, with the
development of critical parts for the existing business segments.
We expect a revenue/EBITDA/adj. PAT CAGR of 38%/53%/67% over FY24-26, with RoE/RoCE improving to ~23%/21%% by FY26
from ~12%/11% in FY24. We initiate coverage on MTARTECH with a BUY rating and a TP of INR2,500 (premised on 35x FY26E EPS).
Key upside risks
include client concentration (Bloom Energy), order deferment, supply chain issues, and a rise in working capital
requirement. .
is translating into a higher margin profile…
EBITDA (INRm)
Margin %
Strong revenue trajectory at 38% CAGR over FY24-
26E…
Revenue (INRm)
58.5
23.6
30.7
15.1 16.4 15.3
5.9
Growth %
78.2
49.0
28.1
and robust growth in PAT at 67% CAGR over FY24-26E
Adj. PAT (INRm)
2,169
1,456
1,034
392 313 461
54
-151
FY17
FY19
FY21
FY23
FY25E
609
781
29.2
27.1 33.7 29.3 26.8
27.7
22.7 25.5
20.0
-12.0
319 537 580 831 944 1,5401,3792,3093,212
-121
CHART BOOK | June 2024
26
June 2020
 Motilal Oswal Financial Services
Valuations: Key observations
CHART BOOK | June 2024
27
June 2020
 Motilal Oswal Financial Services
India’s market capitalization-to-GDP ratio at an all-time high as of year-end closing
India’s market capitalization-to-GDP ratio continues to remain strong. The ratio stood at 132% as of FY24, much above its long-term
average of ~85%.
Market capitalization-to-GDP ratio (%)
Nominal GDP growth in
FY23/FY24: 14.2%/9.6%
GFC: Peak of 149% in Dec’07
132
112
96
Average of 85% for the period
103
Lowest since
the GFC
105
83
97
90
83
81
71
64
56
66
69
79
83
80
56
CHART BOOK | June 2024
28
June 2020
 Motilal Oswal Financial Services
Valuations: Nifty’s 12-month trailing P/E near its LPA
The 12-month trailing P/E for the Nifty stood at 21.9x, at a 2% discount to its LPA of 22.4x.
At 3.5x, the 12-month trailing P/B has been 16% above its historical average of 3.1x.
12-month trailing Nifty P/E (x)
30
25
20
15
10
Long-term average: 22.4x
21.9
12-month trailing Nifty P/B (x)
4.5
3.8
Long-term average: 3.1x
3.0
3.5
2.3
1.5
CHART BOOK | June 2024
29
June 2020
 Motilal Oswal Financial Services
Valuations: Nifty’s 12-month forward P/E near its LPA
Nifty’s 12-month forward P/E has been trading at 19.2x, at a 5% discount to the LPA of 20.3x.
At 3.1x, the 12-month forward P/B has been trading at a premium of ~12% to the Nifty’s historical average of 2.8x.
12-month forward Nifty P/E (x)
30
25
20
15
10
Long-term average: 20.3x
19.2
12-month forward Nifty P/B (x)
3.6
3.0
2.4
1.8
1.2
Long-term average: 2.8x
3.1
CHART BOOK | June 2024
30
June 2020
 Motilal Oswal Financial Services
The 10-year G-Sec yield stands at 7.0%; EY/BY trades near its long-term average
India’s 10-year bond yield stood at 7.0%. As a result, the EY/BY traded near its LPA on a trailing basis, and also on a forward basis.
Trailing Earnings Yield/G-Sec Yield (x)
1.2
1.0
0.8
0.6
0.4
Earnings Yield/G-Sec Yield
15-year average: 0.7%
0.7
Forward Earnings Yield/G-Sec Yield (x)
1.1
1.0
0.8
0.7
0.5
15 Year Avg: 0.7
Earnings yield (12-month forward)/G-Sec yield
It remained below 1x
for last six years
0.7
CHART BOOK | June 2024
31
June 2020
 Motilal Oswal Financial Services
Sectoral valuations: Pvt Banks trading at a discount; IT trading at a premium to the LPA
The Private Banks sector has been trading at a 5% discount to its LPA
P/B (x)
3.5
2.8
2.0
1.3
0.5
Avg (x)
Max (x)
Min (x)
+1SD
-1SD
2.4
3.1
2.7
2.1
1.6
2.3
The IT sector has been trading at a 22% premium to its LPA, while it has been trading at a 30% discount to its Dec’21 high
36.0
28.0
20.0
12.0
4.0
18.8
14.2
11.0
P/E (x)
Avg (x)
Max (x)
32.6
23.3
Min (x)
+1SD
-1SD
22.9
CHART BOOK | June 2024
32
June 2020
 Motilal Oswal Financial Services
Sectoral valuations: Metals and O&G trading at a significant premium
Metals: Valuation at a 92% premium to its LPA
4.5
P/B (x)
Avg (x)
Max (x)
Min (x)
+1SD
-1SD
3.2
3.0
3.2
2.0
1.5
1.3
1.6
0.0
0.7
O&G: Valuation at a 22% premium to its LPA
2.6
P/B (x)
Avg (x)
Max (x)
2.2
1.9
1.5
1.3
1.2
0.9
0.5
1.8
Min (x)
+1SD
-1SD
1.7
CHART BOOK | June 2024
33
June 2020
 Motilal Oswal Financial Services
Sectoral valuations: Auto and Consumer trading at a premium to their LPA
Auto’s valuation at an 11% premium to its LPA
P/E (x)
60.0
45.0
32.3
30.0
15.0
0.0
21.8
8.7
11.2
Avg (x)
Max (x)
53.3
Min (x)
+1SD
-1SD
24.2
Consumer sector’s P/E at a 14% premium to its LPA
P/E (x)
60.0
48.0
36.5
36.0
29.2
24.0
12.0
18.1
Avg (x)
Max (x)
49.3
43.7
Min (x)
+1SD
-1SD
43.0
CHART BOOK | June 2024
34
June 2020
 Motilal Oswal Financial Services
Sectoral valuations: Healthcare and Capital Goods trading at a premium to their LPA
Healthcare valuation at a 26% premium to its LPA
P/E (x)
Avg (x)
Max (x)
34.3
29.3
24.0
18.6
14.4
12.0
4.0
Min (x)
+1SD
-1SD
36.0
28.0
20.0
30.1
Capital goods sector’s P/E at a 72% premium to its LPA
52.0
40.0
31.9
28.0
16.0
4.0
26.7
21.6
16.1
P/E (x)
Avg (x)
Max (x)
46.0
Min (x)
+1SD
-1SD
46.0
CHART BOOK | June 2024
35
June 2020
 Motilal Oswal Financial Services
Top ideas within the MOFSL Universe
MCap
Company
Preferred large cap stocks
ICICI Bank
State Bank
ITC
Larsen & Toubro
HCL Technologies
Mahindra & Mahindra
Coal India
Ultratech Cement
Chola. Inv & Fin.
Hindalco
Preferred midcap/smallcap stocks
Indian Hotels
Godrej Properties
Ashok Leyland
KEI Industries
Global Health
Cello World
Kirloskar Oil
(USDb)
90.0
83.0
61.1
56.1
42.5
38.5
32.9
34.2
12.1
17.2
9.0
8.6
7.3
4.4
3.5
2.1
2.1
CMP
(INR)
1,073
775
415
3,403
1,305
2,575
442
9,908
1,229
647
530
2,580
208
4,069
1,074
831
1,206
FY24
58.4
75.2
16.4
94.5
57.9
89.4
60.7
244.5
40.7
45.6
8.9
26.9
9.1
64.4
17.8
15.6
25.0
EPS (INR)
FY25E
65.1
89.2
17.3
105.8
62.8
102.2
55.9
288.2
56.3
59.3
11.2
34.2
11.7
83.0
22.2
19.1
34.7
FY26E
76.5
103.1
18.6
136.0
73.6
120.2
66.0
345.5
72.0
62.7
13.3
38.1
13.2
99.9
26.3
24.0
44.6
EPS CAGR (%)
FY24-26
14.5
17.1
6.5
20.0
12.8
16.0
4.3
18.9
32.9
17.2
22.6
19.1
20.4
24.5
21.7
24.0
33.6
FY24
18.8
10.0
26.2
39.9
26.7
21.5
7.1
39.9
28.4
12.3
66.7
85.5
18.7
53.7
74.4
49.7
34.4
PE (x)
FY25E
16.5
8.7
24.1
32.2
20.8
25.2
7.9
34.4
21.8
10.9
47.4
75.5
17.8
49.0
48.3
43.5
34.8
FY26E
14.0
7.5
22.4
25.0
17.7
21.4
6.7
28.7
17.1
10.3
39.8
67.7
15.7
40.8
40.7
34.7
27.1
FY24
3.3
1.7
7.2
6.0
6.1
4.4
3.2
4.7
5.0
1.6
8.9
6.4
5.7
9.9
12.2
14.3
4.7
PB (x)
FY25E
2.7
1.4
6.6
4.8
5.2
5.0
2.7
4.3
4.3
1.6
6.9
6.6
5.8
9.5
8.5
11.5
5.8
FY26E
2.3
1.2
6.3
4.2
5.3
4.2
2.3
3.8
3.3
1.4
5.9
6.0
5.0
7.8
7.2
8.7
5.0
FY24
18.9
18.8
28.5
14.8
23.5
22.4
45.2
12.3
20.2
13.6
14.4
7.8
31.1
18.5
17.9
28.8
14.6
ROE (%)
FY25E
17.9
18.9
28.2
15.8
25.1
21.5
34.6
13.1
21.7
15.3
15.6
9.1
35.5
19.4
19.0
26.4
17.9
FY26E
18.0
18.5
28.9
17.8
29.9
21.4
34.1
14.0
22.0
14.1
16.0
9.2
34.1
19.2
19.2
25.0
20.0
Note: LP = Loss to profit; Largecap, Midcap and Smallcap Stocks listed above are as per SEBI Categorization
CHART BOOK | June 2024
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 Motilal Oswal Financial Services
Quant Research & India Strategy Gallery
CHART BOOK | June 2024
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 Motilal Oswal Financial Services
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 be 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 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.
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 Motilal Oswal Financial Services
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
********************************************************************************************************************************
The associates of MOFSL may have:
financial interest in the subject company
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.
received compensation/other benefits from the subject company in the past 12 months
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.
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.
Served subject company as its clients during twelve months preceding the date of distribution of the research report.
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.
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 Motilal Oswal Financial Services
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.
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Contact Person
Ms. Hemangi Date
Ms. Kumud Upadhyay
Mr. Ajay Menon
Contact No.
022 40548000 / 022 67490600
022 40548082
022 40548083
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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.
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