India Strategy
Gautam Duggad
Gautam.Duggad@motilaloswal.com
The Eagle Eye
Aanshul Agarawal
Deven Mistry
Deven@motilaloswal.com
November 2024
June 2020
1
Aanshul.Agarawal@motilaloswal.com
 Motilal Oswal Financial Services
CONTENT
GLOBAL MARKETS
World equity indices decline in
Oct’24; Taiwan and the US remain
the outperformers in CY24YTD
Nifty Midcap remains the second-
best performing index following
NASDAQ in the past 10 years,
despite its recent decline
MSCI US outperforms YTD; MSCI
China subsides from Oct’24 highs
MSCI India’s premium to MSCI
World/MSCI EM dips from the highs
DOMESTIC MARKETS
Broader markets moderate from
the all-time highs; the key sectoral
indices fell 5-15% from the highs
About 88% of Nifty constituents
end lower in Oct’24
About 87% of BSE-200
constituents end lower in Oct’24
India witnesses a 3x jump in
‘billion dollar’ companies in the
last decade
FLOWS AND VOLUMES
Record FII selling and the highest-
ever DII buying in a month
Monthly average cash volumes
moderate from the previous highs;
F&O volumes remain high
Contribution of new listings to
overall market-cap sees an uptick
KEY RESEARCH REPORTS
Hyundai Motors: In tune with
Industry trends
Raymond: Lifestyle : On a
transformative journey
Power Financers: The Power Play:
Key to India’s energy transition
MULTI-YEAR HIGHS
Forex reserves moderate from
their all-time high levels
The 10-year yield spread
between India and the US
contracts MoM
India’s market capitalization-to-
GDP ratio moderates from an
all-time high
Largecaps’ contribution to overall
market cap at a multi-year low
VALUATIONS
The 12-month trailing P/E for the
Nifty stands at 23.4x, at a 3%
premium to its LPA
trades at 20.6x, near its LPA
Nifty’s 12-month forward P/E
NSE indices: Valuation snapshot –
large caps trade near their LPA,
while broader markets trade at a
premium
CHART BOOK | November 2024
2
June 2020
 Motilal Oswal Financial Services
A view from the EAGLE’S EYE!
CHART BOOK | November 2024
3
June 2020
 Motilal Oswal Financial Services
KEY EXHIBITS Broader market corrects sharply from their respective highs
Real Estate, Pharma, and Capital Goods were the top performing indices YoY, while PSU Banks, Auto, and Real Estate corrected the most from CY24 highs.
Sectoral performance YoY (%):
66%
44%
27%
47%
35%
YoY change (%)
55%
51%
48%
47%
45%
36%
32%
20%
15%
13%
Change from CY24YTD highs (%)
-4%
-9%
-13%
-15%
-13%
-9%
-16%
-8%
-8%
-5%
-7%
-7%
-5%
-11%
-7%
CHART BOOK | November 2024
4
June 2020
 Motilal Oswal Financial Services
KEY EXHIBITS Record FII selling and the highest-ever DII buying in a month
FIIs sold a record USD10.9b of Indian equities during the month, while DIIs invested a record USD 12.8b, clocking 15 subsequent months of
inflows.
DII inflows over the past 10 months at ~USD53.6b have been nearly equal to that of the combined CY22 and CY23 inflows. Further, DII inflows
stand at ~15x to that of FII inflows between CY21 and CY24YTD
Monthly institutional flows (USD b)
Net FII(USD b)
0.8
-2.3
-0.8
-1.7
-4.8 -5.0
-1.6
-4.9
-6.3
6.8
1.0
-0.2
-3.7
-0.6
4.7
1.8 1.9
5.0
6.7
7.0
4.1
1.7
2.3
4.0
0.5
-1.1
3.1 3.3
1.4
5.9
-3.7 -3.8
-2.3
-2.7
-3.1
-3.0
-10.9
Net DII (USD b)
6.8
1.3
-0.9
1.7 1.1
-0.8
2.9
4.1
2.3
3.7
0.3
-0.4
0.5
-0.3
3.0 2.4
6.7
3.4 2.8
12.8
6.1 6.0
3.3 3.1
3.6 4.1
0.6
5.6
2.6
3.4
1.7 1.6
3.2 3.1
5.3
5.8
3.8
CHART BOOK | November 2024
5
June 2020
 Motilal Oswal Financial Services
KEY EXHIBITS Large caps’ contribution to overall market cap at a multi-year low
The contribution of the top 100 companies (large caps) by market cap declined to a low of ~61%, while the contributions of midcaps and smallcaps reached all-
time highs of ~19% and ~20%, respectively.
Top 100 companies’ % to total market cap
86.0
78.0
70.0
62.0
54.0
Market cap contribution (%)
60.8
101-250 companies’ % to total market cap
22.0
19.0
16.0
13.0
10.0
251 onwards companies’ % to total market cap
22.0
Market cap contribution (%)
Market cap contribution (%)
18.9
20.2
18.5
15.0
11.5
8.0
CHART BOOK | November 2024
6
June 2020
 Motilal Oswal Financial Services
KEY EXHIBITS Contribution of new listings to the overall market cap witnesses an uptick
The recent market correction and the listing of several large companies led to an uptick in the contribution of new listings, following a period of moderation
over the past two years.
Total funds raised (through IPO+FPO+OFS+QIP) have reached INR11.8t during CY15-24YTD.
India’s market cap (INR t) vs. contribution of new listings (%)
India Mkt Cap (INR t)
4.1
Contribution through new listing (%)
2.7
2.0
1.1
0.2
0.6
0.1
1.0
1.0
2.0
1.6
1.8
75
FY14
102
FY15
95
FY16
122
FY17
144
FY18
152
FY19
114
FY20
205
FY21
265
FY22
260
FY23
389
FY24
445
Current
Source: Exchanges, MOFSL
CHART BOOK | November 2024
7
June 2020
 Motilal Oswal Financial Services
KEY EXHIBITS India witnesses a 3x jump in ‘billion dollar’ companies vs. other key markets
The number of 'billion-dollar' companies in India has surpassed that of key Asian and emerging market countries over the past decade.
While Financials, Technology, Capital Goods, and Consumer topped in the overall market cap, E-com, Retail, Chemicals, Cons. Durables, and Real Estate
witnessed the highest jump in market caps during the past decade.
India witnessed 3x jump in ‘billion dollar’ companies between 2014 and Oct’24, the highest among key Asian and Emerging Markets
FY04
44
65
75
49
38
FY09
82
230
60
89
57
Number of ‘billion dollar’ companies
FY14
FY19
182
290
422
123
145
66
731
127
155
63
FY24
513
955
223
171
75
Oct'24
594
978
231
167
73
Times (x)
FY04-14
FY14-Oct'24
4.1
6.5
1.6
3.0
1.7
3.3
2.3
1.9
1.2
1.1
India
China
Taiwan
S. Korea
Brazil
Sector wise market cap of India-listed universe (INR t)
44
37
36
34
34
33
33
Sector wise listed market caps (INR t)
Mar'14
Mar'19
Oct'24
28
23
21
16
3
6
1
4
17
10
14
4
4
6
17
8
16
9
16
10
5
5
7
6
7
15
3
3
14
1
4
13
3
13
2
4
10
1
2
6
10
1
2
8
0
2
3
4
6
0
0
5
0
1
5
0
0
1
2
1
1
2
CHART BOOK | November 2024
8
June 2020
 Motilal Oswal Financial Services
KEY EXHIBITS Ex-Financials, broader market cap growth remains higher than PAT growth
Ex-Financials, markets witnessed a significant re-rating.
Midcaps and smallcaps were trading at multi-year high valuations and at a premium to the largecaps on a trailing basis.
Average of 12-month forward P/E of key benchmark indices
FY19-24 PAT CAGR (%)
Nifty-
50
Mar'19-Oct'24 Mkt cap CAGR (%)
NIfty
Midcap100
Nifty Small
cap 100
28
30
28
26
28
18
19
20
19
13
14
5
Nifty 50
Nifty 50 (ex-BFSI)
Nifty Midcap 100
Nifty Midcap 100 (ex-BFSI)
Nifty Smallcap 100
Nifty Smallcap 100 (ex-BFSI)
Note: PAT on trailing basis and have considered PAT and Market cap of indices constituent only for since the date of listing year (like for like)
CHART BOOK | November 2024
9
June 2020
 Motilal Oswal Financial Services
KEY EXHIBITS Banks continue to experience a sharp de-rating
Nifty-50’s three-year CAGR of 11% remained lower/in-line with 10-year, 15-year, and 20-year periods
Among the key sectoral indices, Banks witnessed significant de-rating in various time periods, while Metals, Power, Consumer Discretionary, and Healthcare
witnessed the highest re-rating.
Key indices’ performance: Nifty-50’s three-year returns continue to remain in line with long period averages
Date
MoM
3 months
YTD
YoY
3-yr CAGR
5-yr CAGR
10-yr CAGR
15-yr CAGR
20-yr CAGR
Nifty50
-6%
-3%
11%
27%
11%
15%
11%
12%
14%
Nifty Midcap 100
-7%
-5%
22%
44%
23%
27%
17%
15%
17%
Nifty Small cap 100
-3%
-3%
23%
47%
20%
26%
14%
13%
15%
Nifty 500
-6%
-4%
17%
35%
15%
19%
13%
13%
15%
Key indices’ performance: Banks continue to witness a de-rating, while most sectors experience a significant re-rating
Index Performance CAGR (% YoY) - (i)
1 year
3 year
5 year
10 year
Earnings CAGR (% YoY) - (ii)
1 year
3 year
5 year
10 year
1 year
(ii) - (i)
3 year
5 year
10 year
BSE Bankex
BSE Auto
BSE Metal
BSE Oil
BSE IT
BSE Cons Disc
BSE Cap Goods
BSE Healthcare
BSE FMCG
BSE PSU
BSE Real
BSE Power
21%
48%
41%
51%
30%
37%
51%
61%
17%
63%
63%
77%
10%
28%
16%
15%
6%
12%
37%
21%
16%
32%
25%
33%
12%
23%
27%
12%
21%
18%
30%
27%
12%
23%
31%
32%
12%
11%
10%
9%
14%
20%
16%
12%
11%
9%
18%
14%
23%
91%
-23%
86%
4%
-9%
21%
15%
14%
31%
57%
15%
34%
65%
7%
28%
8%
16%
42%
10%
14%
29%
125%
20%
31%
21%
7%
15%
10%
2%
8%
13%
11%
22%
1%
20%
15%
7%
7%
13%
9%
8%
12%
8%
10%
9%
7%
8%
2%
43%
-63%
35%
-26%
-46%
-30%
-46%
-3%
-31%
-7%
-62%
24%
36%
-9%
13%
2%
4%
4%
-11%
-2%
-3%
100%
-12%
19%
-2%
-21%
3%
-11%
-16%
-22%
-14%
-1%
0%
-30%
-12%
4%
-4%
-3%
3%
-5%
-12%
-3%
-4%
-2%
0%
-11%
-6%
CHART BOOK | November 2024
10
June 2020
 Motilal Oswal Financial Services
KEY EXHIBITS MSCI India’s premium to MSCI World and MSCI EM moderates from the highs
MSCI India’s P/E traded at a 15% premium to its LPA, whereas MSCI World traded at a 17% premium and MSCI EM‘s P/E traded at a 12% premium to their LPA.
At 28x, MSCI India traded at a 29%/80% premium to MSCI World/MSCI EM indices in Oct’24.
MSCI India vs. EM and World P/E (x)
MSCI India P/E (x)
35
MSCI EM P/E(x)
MSCI World P/E (x)
30
28
25
Average 24x
Average 18x
Average 14x
22
20
15
15
10
5
CHART BOOK | November 2024
11
June 2020
 Motilal Oswal Financial Services
KEY EXHIBITS Interim earnings review – 2QFY25 soft; In-line Ex Commodities
Financials lead the narrative again; Commodities continue to drag
(Report link)
Sector
(no. of companies)
Automobiles (8)
Capital Goods (4)
Cement (6)
Chemicals-Specialty (5)
Consumer (13)
Consumer Durables (5)
EMS (5)
Financials (42)
Banks-Private (12)
Banks-PSU (5)
Insurance (6)
NBFC - Lending (15)
NBFC - Non Lending (4)
Healthcare (9)
Infrastructure (1)
Logistics (6)
Media (2)
Metals (3)
Oil & Gas (10)
Ex OMCs (7)
Real Estate (7)
Retail (8)
Staffing (3)
Technology (12)
Telecom (3)
Utilities (4)
Others (10)
MOFSL Universe (166)
Ex-Financials (124)
Ex-Metals & Oil (153)
Nifty (34)
Sep-24
696
718
354
97
711
167
150
2,342
917
467
655
280
22
332
16
133
36
786
6,545
2,780
102
188
91
1,944
547
594
407
16,958
14,616
9,626
10,392
Sales
Chg. % Chg. % Var. vs
Sep-24
QoQ
YoY Exp. (%)
5.3
6.2
-0.5
99
11.6
19.5
6.9
82
-11.9
-1.9
1.7
45
2.4
5.5
-2.1
16
0.8
8.1
2.0
176
-13.2
19.9
5.5
15
37.7
107.5
17.4
7
8.1
10.5
-2.0
1,327
1.1
11.4
0.0
703
-0.3
4.9
-1.5
368
31.6
10.1
-5.5
31
3.1
16.9
-0.5
213
6.5
43.7
-1.4
12
5.9
9.1
0.7
87
-14.4
-9.1
-8.8
8
3.8
7.6
-3.2
57
9.1
-18.4
-1.3
5
-10.2
-6.6
-2.9
167
-6.1
0.8
-8.8
524
0.5
2.5
0.8
413
10.1
31.6
9.2
32
1.6
12.9
-0.2
18
3.9
8.4
-2.2
4
3.3
6.2
1.1
435
6.2
11.5
0.7
278
-8.2
-0.7
-7.8
152
2.3
10.3
12.9
40
-0.9
5.1
-3.3
3,573
-2.2
4.2
-3.6
2,246
3.8
9.3
0.7
2,882
0.4
4.5
-0.2
2,523
EBITDA
PBT
Chg. % Chg. % Var. vs
Chg. % Chg. %
Sep-24
QoQ
YoY Exp. (%)
QoQ
YoY
1.3
3
-1.0
92
-2.3
0.7
18.7
17.1
7.8
73
23
16.0
-30.5
-22
1.4
23
-47.0
-43.1
0.5
-11.2
-7.0
9
9
-24.0
-4.5
4
0.0
166
-5.8
1.9
-21.9
7.1
-12.9
15
-21
11.9
25.9
91
12.2
7
81.8
203.0
5.4
13.4
2.7
1,034
2
13.4
2.7
14
1.8
569
-0.9
6.9
9.5
10.3
8.0
291
16
33.4
41.8
2
-13.1
23
-6.2
23.3
3.4
16.3
-0.1
138
-9
2.1
19.4
70
-2.0
12
12.1
70.4
9.1
15.9
4.0
71
10
17.9
-10.5
-4
-4.7
3
-5.3
4.0
5.4
12.0
0.6
40
1
15.9
117.3
-33
17.1
3
1,036.3 -47.2
-20.4
-16.1
-8.6
124
-33
-25.0
-11.1
-42
-19.2
296
-13.6
-55.2
-2.9
-10.4
-5.0
266
1
-13.8
6.5
25
3.7
27
-22.7
24.0
-10.1
7.4
-4.4
10
-19
1.6
4.7
12
-6.8
2
4.5
18.4
4.1
6.7
2.2
409
3
9.3
9.8
16
2.3
100
21.9
32.5
-13.2
-1.3
-11.8
86
8
17.5
-39.7
-3
26.0
5
-86.6
-73.0
-1.4
-4.1
-2.6
2,593
-3.7
-7.3
-5.0
-12.1
-5.5
1,559
-7.2
-17.3
2.0
9.7
1.6
2,173
0.4
10.2
-0.2
1.4
-2.2
1,922
-1.1
-0.4
Var. vs
Exp. (%)
-4.7
9.4
-3.3
-13.1
-2.1
-10.7
46.9
1.5
-1.6
14.5
-1.9
-7.7
-1.4
5.0
18.8
-3.0
38.1
-12.8
-27.7
-2.8
6.7
-9.2
-21.6
2.4
3.7
-1.6
37.4
-3.8
-7.1
1.3
-2.4
PAT
Chg. % Chg. % Var. vs
QoQ
YoY
Exp. (%)
5.7
8.9
3.2
26.6
11.9
7.7
-47.3
-41.4
1.7
10.6
-22.6
-10.8
-5.4
2.5
-2.3
-22.7
13.0
-12.3
8.6
75.9
-7.3
3.0
12.6
2.5
0.9
5.7
0.7
18.6
38.8
15.8
-5.2
16.0
-1.2
-13.3
-2.3
-11.4
25.3
70.4
-1.1
10.9
14.2
1.8
-28.6
4.3
16.1
-1.5
10.5
-3.5
2,083.0 -41.8
33.0
-34.2
-27.5
-13.4
-15.3
-57.9
-29.9
2.2
-13.1
-1.7
-7.0
41.4
14.6
-21.3
0.2
-8.4
7.0
12.1
-24.0
2.9
8.3
1.1
21.7
23.2
-16.4
10.8
25.8
-7.2
PL
PL
Loss
-3.9
-8.2
-4.6
-8.1
-18.7
-8.9
0.5
9.5
0.5
-0.3
-0.3
-2.2
Sep-24
77
47
16
7
123
10
3
777
437
210
22
99
9
53
1
32
2
93
198
178
25
7
2
300
55
62
-1
1,891
1,114
1,600
1,390
CHART BOOK | November 2024
12
June 2020
 Motilal Oswal Financial Services
Macro, Markets, and More…
CHART BOOK | November 2024
13
June 2020
 Motilal Oswal Financial Services
World equity indices dip in Oct’24, Taiwan and US remain the outperformers in CY24YTD
World equity indices (MoM) in USD terms (%)
2
-1
MoM change (%)
-3
-3
-4
-4
-6
-6
-6
-7
-7
-15
CY24YTD performance of global equity indices in USD terms (%)
22
20
CY24YTD change (%)
12
10
10
9
8
6
-4
-10
-19
-27
CHART BOOK | November 2024
14
June 2020
 Motilal Oswal Financial Services
MSCI US outperforms YTD; MSCI China cools off from the Oct’24 highs
Performance of the MSCI India index vs. MSCI US, MSCI World, MSCI Emerging Market, and MSCI China in USD terms
145
MSCI India
MSCI US
MSCI World
MSCI EM
MSCI China
(indices rebased to 100)
137
130
115
122
119
117
116
110
100
85
MSCI US outperforms global indices in CY24YTD
YTD Change (%)
22
16
17
10
(in USD)
MSCI India the second-best performer over the past decade
12
8
10-yr CAGR (%)
9
(in USD)
19
1
1
CHART BOOK | November 2024
15
June 2020
 Motilal Oswal Financial Services
Nifty Midcap remains the second-best performing index after NASDAQ in the past 10 years
Performance of the Nifty 50, Nifty Midcap 100, and Nifty Smallcap 100 vs. the US Nasdaq, US S&P500, and China
Nasdaq
US S&P 500
China
370
(indices rebased to 100; in USD)
450
402
346
288
276
223
175
Nifty50
Nifty Midcap 100
Nifty Smallcap 100
290
Japan
210
130
91
50
Source: Bloomberg, MOFSL
CHART BOOK | November 2024
16
June 2020
 Motilal Oswal Financial Services
Large and Midcaps fall sharply; Auto, O&G, and Consumers witness a sharp MoM decline
Sectoral performance MoM (%): Auto, O&G, and Consumer experienced the sharpest decline
0
-3
-6
-7
-2
-4
-5
-5
-6
-8
-9
-9
-10
-11
-13
MoM change (%)
Sectoral performance CY24YTD (%): Healthcare, Real Estate, and Auto among the top gainers; Media, Private Banks, and Consumer
among the key laggards
35
22
11
23
CY24YTD change (%)
28
26
24
21
18
17
17
14
4
1
-15
Note: (*) represents BSE capital goods index.
CHART BOOK | November 2024
17
June 2020
 Motilal Oswal Financial Services
About 88% of Nifty constituents end lower in Oct’24
Among Nifty constituents, 44 companies closed lower MoM and 29 underperformed the benchmark.
About 42 Nifty constituents have traded higher in CY24YTD. Trent, M&M, and Bharti Airtel were the top gainers, whereas IndusInd
Bank, Nestle, and Asian Paints were the key laggards.
Best and worst Nifty performers (MoM) (%)
4
2
2
2
0
0
0
-1
-2
-2
-6
-13
-14
-15
-15
-16
-16
-16
-16
-20
-27
Best and worst Nifty performers CY24YTD (%)
133
58
56
55
53
47
45
38
35
34
11
3
2
-5
-6
-7
-9
-11
-14
-15
-34
CHART BOOK | November 2024
18
June 2020
 Motilal Oswal Financial Services
About 14% of BSE-200 constituents end higher in Oct’24
In Oct’24, 27 companies closed higher. One97, Coforge, and Max Financials gained the most during this month.
About 159 of the BSE-200 constituents have traded higher. RVNL, Oracle Fin. Services, and Dixon have been the top gainers in CY24YTD.
Top gainers from the BSE-200 pack on a MoM basis (%)*
10
9
8
6
4
3
3
1
-3
-4
-7
-7
-7
-8
-8
-8
-9
-9
-9
-9
-9
-10 -12 -12
-14 -14 -14
-17
-20 -21
-7
Top gainers from the BSE-200 pack in CY24YTD (%)*
160 158
114 114
95
95
90
79
79
78
77
75
74
73
71
69
66
65
59
58
57
55
52
51
51
45
43
43
43
37
15
*The list excludes Nifty constituents.
CHART BOOK | November 2024
19
June 2020
 Motilal Oswal Financial Services
Around 87% of BSE-200 constituents end lower in Oct’24
In Oct’24, 173 companies closed lower. Oil India, Indus Towers, and Ashok Leyland were among the key laggards.
About 41 of the BSE-200 companies have traded lower in CY24YTD. Adani Total Gas, IDFC First, and Bandhan Bank have been the key
laggards in CY24YTD.
Key laggards among the BSE-200 constituents on an MoM basis (%)*
13
7
7
5
0
-2
-2
-3
-4
-4
-4
-4
-6
-6
-6
-7
-7
-7
-7
-8
-8
-8
-9
-9
-9
-7
-11 -11 -12 -13
-19
Key laggards among the BSE-200 constituents in CY24YTD (%)*
15
19
14
11
9
-1
-1
-2
-2
-3
-3
-5
-5
-6
-6
-7
-7
-7
-7
-9
-9
-10 -11 -12
-14
-19 -20 -22
-25 -26 -27
*The list excludes Nifty constituents.
CHART BOOK | November 2024
20
June 2020
 Motilal Oswal Financial Services
Nifty composition: Banks, Cap Goods, and Technology’s weights increase; while
Automobile, O&G, and Consumer witness a reduction on a MoM basis
The weights of the Banks, Capital Goods, and Technology sectors expanded MoM, while those for the Auto, O&G, Consumer, Retail, Utilities, and
Metal sectors contracted.
In CY24YTD, the weights of Telecom, Retail, Auto, Cap Goods, Utilities, and PSBs have expanded, while those for Private Banks, Consumer,
Technology, and O&G have reduced.
Weightage in the Nifty (%)
Sector
Automobiles
Banks – Private
Banks – Public
NBFC + Insurance
Capital Goods
Cement
Consumer
Healthcare
Metals
Oil and Gas
Reliance
Retail
Telecom
Technology
Utilities
Miscellaneous
Nifty
Dec’08
2.5
5.0
5.4
2.3
7.7
1.7
6.5
2.6
4.8
24.5
10.6
0.0
11.6
9.0
13.3
3.3
100
Dec’12
8.8
16.9
4.7
7.9
5.9
4.2
12.3
5.0
3.8
12.3
7.4
0.0
2.0
11.4
4.5
0.5
100
Dec’20
5.4
24.7
1.8
12.3
2.6
2.2
10.4
3.6
2.0
12.5
10.7
1.1
2.0
16.3
2.1
1.0
100
Dec’21
5.0
21.9
2.3
11.4
3.0
2.4
9.4
3.4
2.9
12.3
10.8
1.4
2.1
19.1
2.1
1.2
100
Dec’22
5.3
24.2
2.9
10.6
3.1
1.8
10.3
3.8
2.9
12.1
11.0
1.4
2.5
14.0
2.5
2.6
100
Dec’23
6.5
28.2
2.6
4.5
4.4
2.1
10.8
4.0
3.0
10.5
9.2
1.6
2.7
13.6
3.6
1.9
100
Sept’24
8.1
25.3
2.6
5.0
4.6
2.1
9.9
3.9
3.0
10.3
8.6
2.8
4.0
12.7
4.2
1.6
100
Oct’24
7.4
26.5
2.9
4.8
4.9
2.1
9.4
4.0
2.9
9.8
8.3
2.7
4.0
12.9
4.1
1.6
100
Note: The merger of HDFC Bank and HDFC Ltd. resulted in a shift in weightage from NBFCs to private banks in CY23.
CHART BOOK | November 2024
21
June 2020
 Motilal Oswal Financial Services
Record FII selling and the highest-ever DII buying in a month
FIIs sold a record USD10.9b of Indian equities during the month, while DIIs invested a record USD 12.8b, clocking 15 subsequent months of inflows.
In CY24YTD, net FII inflows have remained marginally positive at USD0.1b. DII inflows over the past 10 months (at ~USD53.6b) have been nearly
equal to the combined DII inflows of CY22 and CY23.
Monthly institutional flows (USD b)
Net FII (USD b)
4.7
1.0
-0.2
5.0
1.8 1.9
-0.6
-3.7
6.7
4.1
7.0
1.7
2.3
4.0
0.5
3.1 3.3
1.4
2.9
4.1
2.3
3.7
0.3
0.5
3.0 2.4 3.4
1.7 1.6
3.2 3.1
5.9
Net DII (USD b)
6.8
1.1
6.7
3.4 2.8
12.8
5.3
5.8
-2.3-2.7
-3.1
-1.1
-3.0
-10.9
3.8
-0.8
-0.4
-0.3
Yearly institutional flows (USD b)
Net FII(USD b)
14.2
7.7
3.8
23.4
Net DII(USD b)
21.4
0.1
14.0
15.9
6.0
12.1
32.2
53.6
22.3
-4.6
-17.0
-5.0
CHART BOOK | November 2024
22
June 2020
 Motilal Oswal Financial Services
Monthly average cash volumes moderate from the previous highs; F&O volumes continue
to remain high
Monthly average cash volumes further moderated in Oct’24; volumes dipped 31% from the highs of Jun’24 to INR1.1t.
Non-institutional participation accounted for 49% of the total cash volumes. Monthly average F&O volumes moderated from an all-time high to
INR519t (down 3% MoM)
1750
1350
950
550
150
Monthly Avg. Cash Volume (INR b)
Non Institution % to Cash Volume (RHS)
78
66
54
49
42
30
600
450
300
150
0
Monthly Avg F&O Volume (INR t)
Cash % to Total Volumes
7.0
5.3
3.5
1.8
0.2
0.0
CHART BOOK | November 2024
23
June 2020
 Motilal Oswal Financial Services
The 10-year yield spread between India and the US contracts MoM
India’s bond yield remained flat at 6.8% MoM (the lowest since Apr’22), while the US bond yield rose to 4.3% in Oct’24. The yield spread contracted
40bp MoM to 2.6% in Oct’24.
India 10-year yield
12.0
India’s fiscal tightening,
strong economic growth led by
the global book, and Fed
raising rates
Fed cuts rates to zero
following the GFC
US 10-year yield
GFC
9.0
Fed raises rates
Fed easing, the
US-Sino trade
war, and
Covid-19
Fed tightening,
geopolitical
uncertainties, and
sharp rise in bond
yields
2.6
6.0
1.3
6.9
6.0
3.9
4.4
3.0
0.0
Source: Bloomberg, MOFSL
CHART BOOK | November 2024
24
June 2020
 Motilal Oswal Financial Services
Forex reserves moderate from their all-time high levels and stand at USD685b
India’s forex reserves declined 2.8% MoM from their all-time high levels of USD705b (in Sep’24)
On the currency front, INR:USD declined 0.3% MoM to an all-time low of INR84.1
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
95
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
80
Pre GFC peak
in FX reserves
600
65
400
50
200
35
0
Source: Bloomberg, MOFSL
CHART BOOK | November 2024
25
June 2020
 Motilal Oswal Financial Services
Key reports from MOFSL’s research desk in Oct’24
Hyundai Motors: Initiating coverage
Report link>>
In tune with Industry trends
Hyundai (HMI) has diverse portfolio across major seg., including sedans (14% of vol.), hatchbacks (23%), & SUVs (63%),
accounting for ~87% of India’s total PV market for FY24. It is well-positioned to emerge key beneficiaries of
premiumization trends in India.
It’s extensive export network across 190+ countries supports HMI’s pursuit of ramping up its presence in key export
markets. We expect export volumes to report an 11% CAGR over FY25-27E.
HMI’s one of the core strengths remains in leveraging support from its parent company Hyundai Motor, especially in
emerging mobility domains. We expect 17% EPS CAGR over FY25-27.
We initiate a BUY rating with a TP of ₹2,345.
Raymond Lifestyle : Initiating coverage
Report link>>
On a transformative journey
RLL commands 65% share in worsted suiting & offers brands like Park Avenue, & Color-Plus. It holds ~5% of men’s
wedding wear market, supported by strong brand loyalty & wide distribution network.
Its garments segment is predominantly B2B exports biz (~95% export), which places it in an advantageous position in the
recent turmoil in Bangladesh (~$50b market), global movement towards China +1 strategy, & new free trade agreements
with the UK, EU, & Australia.
RLL is focused on fast-paced growth in branded apparels via network expansion, foray into new categories like sleepwear,
innerwear & ramp-up of Ethnix. We expect revenue/PAT CAGR of 11%/15% over FY24-27. We Initiate coverage with a
BUY & a TP of ₹3,200.
Power Financers: The Power Play: Key to India’s energy transition
PFC and REC fueling the nation’s energy boom
(1/3)
Report link>>
An investment opportunity of INR42t
(INR34t in firm capex + INR8t in optionality) is set to unfold in the Indian power sector over the
next decade, with generation accounting for ~85% of this capex. The triple tailwinds driving this investment are: 1) power demand
accelerating at a higher ~7% CAGR (~5% earlier), 2) the urgent need to upgrade/ replace aging power infrastructure as the electricity
mix undergoes a shift (more RE all-day), and 3) the transition to cleaner sources of energy considering India’s ambitious target of
achieving 500GW of renewable energy (RES) capacity by 2030
India is projected to add ~250GW of new power generation capacity over the next five years.
This expansion will involve substantial
investments in renewable energy, along with essential supporting infrastructure such as thermal plants, battery storage, and pumped
storage systems. The ability of PFC and REC, as state-owned NBFCs, to mobilize and manage substantial amounts of capital renders
them indispensable to India's energy ambitions. We initiate coverage on PFC and REC with a BUY rating
CHART BOOK | November 2024
26
June 2020
 Motilal Oswal Financial Services
Why hasn’t the wealth effect kicked in yet in India?
Consumption and savings growth have been slower, amid faster growth in non-mortgage debt
HH financial net worth (HHFNW)
has improved remarkably in the post-pandemic period in India. Further, such improvement in India is
(2/3)
considerably greater than that observed in other economies
First,
it is important to note that the substantial improvement in India’s HHFNW is because of the
equity & investment funds (E&IFs),
which are
more volatile than other asset classes.
Second,
the wealth effect implies that a strong financial balance sheet should ideally lead to either a surge in HH consumption or savings. However,
it is important to note that none of this is borne out by data for the Indian economy. India’s HH nominal consumption posted a 9.8% CAGR in the
post-pandemic period (FY20-FY24), while it reported a CAGR of 10.8% in the pre-pandemic period (FY16-FY20). Simultaneously, HH savings – using
official data from FY12 to FY23 and our estimates for FY24 – also grew slowly in the post-pandemic period vis-à-vis the pre-pandemic period (at
10.3% vs. 11.6%). Notably, this is unique to India, as consumption has increased at a faster rate in all other economies during the post-pandemic
period, with higher savings reported in all except AU and the US.
Third,
non-mortgage HH debt, which includes all consumption-based and unsecured loans, has also increased at a faster pace in India during the
post-pandemic period. Non-mortgage HH debt has registered a 15.1% CAGR between CY20 and CY23 compared to 12.8% CAGR in the pre-
pandemic period (Exhibit 6). Again, it has grown at a slower pace in all other economies covered in our study, barring Japan (Exhibit 7).
Overall, this combination of slower growth in consumption and savings, coupled with higher growth in non-mortgage HH debt, does not inspire
confidence that the increase in HHFNW reflects a strong financial position of the HH sector. In other words, the wealth effect has not materialized.
Perhaps, but the improvement in HHFNW has already been sustained for nearly three years.
India’s HHFNW estimated at a new peak of 116% of GDP
in 1QFY25
118
106
94
90.3
82
70
77.7
HH FNW (% of GDP)
115.9
Capital markets have played a substantial role in pushing
HHFNW higher in recent quarters
124
(% of GDP)
108
HH FNW
HHFNW ex E&IFs
115.9
88.9
92
76
60
71.7
FY07
FY10
FY13
FY16
FY19
FY22
1QFY25
FY07
FY09
FY11
FY13
FY15
FY17
FY19
FY21
FY23 1QFY25
HHFNW = GFAs - debt
E&IFs = Equity & investment funds
CHART BOOK | November 2024
27
June 2020
 Motilal Oswal Financial Services
Consumption slowdown: A problem much severe than expected
Consumption growth has been weakening for some quarters now, but 2QFY25 is turning out to be the first quarter with broad-based
(3/3)
deterioration.
A host of consumer/retail companies such as Nestle, Shopper Stop, Westlife, Sapphire etc. posted weak results, and their commentaries were
very subdued. On the other hand, HUL, ITC, UBBL etc. showed some resilience in topline, but missed their profit expectations.
MOFSL has been highlighting slowdown in private consumption to be more severe than the consensus projections.
However, the fastest-growing non-mortgage personal loans category within household debt could also be equally forceful in disrupting the
retail lending boom. Overall, an expected slowdown in consumption and/or residential real estate in FY24 could unsettle credit growth in the
country…”.
Based on our
detailed analysis
on household borrowings/debt in India, we were very clear that the RBI targeted measures to restrict very high
growth in the unsecured retail loans, which will
continue
for some time.
India is the only economy where both personal consumption and HH savings increased at a slower pace in the post-pandemic
period
Personal consumption (C) and savings (S) (% CAGR)
21.0
17.8
6.9
4.6
8.8
4.1
2.4
3.8
10.8
11.6
9.8
10.3
Pre-pandemic (CY16-19)
Post-pandemic (CY20-23)
6.6
4.2
8.2
-2.0
3.9
3.8
-11.1
4.5
3.8
5.6
3.5
3.1
-0.7
3.7
3.0
-3.3
C
US
S
C
UK
S
C
CA
S
C
AU
S
C
DE
S
C
FR
S
C
IN#
S
CHART BOOK | November 2024
28
June 2020
 Motilal Oswal Financial Services
Valuations: Key observations
CHART BOOK | November 2024
29
June 2020
 Motilal Oswal Financial Services
Valuations: Nifty’s 12-month P/E near its LPA
The 12-month trailing P/E for the Nifty stood at 23.4x, at a 3% premium to its LPA.
At 3.7x, the 12-month trailing P/B was 19% above its historical average of 3.1x.
12-month trailing Nifty P/E (x)
30
25
20
15
Long-term average: 22.6x
23.4
12-month trailing Nifty P/B (x)
4.8
3.8
Long-term average: 3.1x
2.8
1.8
3.7
CHART BOOK | November 2024
30
June 2020
 Motilal Oswal Financial Services
Valuations: Nifty’s 12-month forward P/E near its LPA
Nifty’s 12-month forward P/E traded at 20.6x, near its LPA.
At 3.3x, the 12-month forward P/B was trading at a premium of 17% to the Nifty’s historical average of 2.8x.
12-month forward Nifty P/E (x)
30
25
20
15
10
Long-term average: 20.5x
20.6
12-month forward Nifty P/B (x)
4.4
3.6
2.8
2.0
1.2
Long-term average: 2.8x
3.3
CHART BOOK | November 2024
31
June 2020
 Motilal Oswal Financial Services
The 10-year G-Sec yield stands at 6.8%; EY/BY trades below LPA
India’s 10-year bond yield stood at 6.8% (flat MoM and lowest since Apr’22). As a result, EY/BY traded below LPA on a trailing
basis as well as on a forward basis.
Trailing Earnings Yield/G-Sec Yield (x)
1.80
1.45
1.10
0.75
0.40
15 Year Avg: 0.67%
Earnings yield (12-month trailing)/G-Sec yield
0.63
Forward Earnings Yield/G-Sec Yield (x)
1.70
1.40
1.10
0.80
0.50
Earnings yield (12-month forward)/G-Sec yield
EY/BY spiked sharply
during pandemic
15 Year Avg: 0.73%
It remained below 1x for last six
years, except for a brief period
during demonetization
0.71
CHART BOOK | November 2024
32
June 2020
 Motilal Oswal Financial Services
India’s market capitalization-to-GDP ratio moderates from an all-time high
India’s market capitalization-to-GDP ratio was 137% (down 900bp from the high of 146% in Sep’24), however, it was above its long-term average
of ~85%.
Mid and Smallcaps’ market capitalization-to-GDP ratios continue to trade at historical highs, with all smallcaps now surpassing midcaps.
Market capitalization-to-GDP ratio (%)
Nominal GDP growth in
FY24/FY25E: 9.6%/10.8%
GFC: Peak of 149% in Dec’07
Lowest since
the GFC
132
103
113
96
80
57
137
105
84
84
97
90
71
Average of 85% for the period
84
79
82
64
66
69
56
CHART BOOK | November 2024
33
June 2020
 Motilal Oswal Financial Services
NSE indices: Valuation snapshot – Largecaps trade near LPA, while broader markets trade
at premium
While, Mid and Smallcaps decline from their Sep’24 highs, their indices continue to outperform, with Nifty Midcap and Nifty
Smallcap indices surging 44% YoY and 47% YoY, respectively, while Nifty-50 rose 27% in the past year.
Among the key sectoral indices, Capital Goods, Energy, Auto, and Metals were the top performers last year.
Nifty-50 has been trading near its LPA, whereas most of the sectoral indices (excluding banking) have been trading at a significant
premium to their LPA.
Nifty Midcap
Nifty
100
Smallcap 100 Nifty 500
56,113
44
1,469
38.4
22.0
5.2
2.6
11.4
-0.3
18,603
47
653
28.2
15.9
3.8
1.9
13.0
3.4
22,689
35
860
26.5
19.3
4.0
2.7
14.5
2.4
BSE
Capital
Nifty Metal Nifty Energy Goods
9,327
45
475
19.7
10.9
2.2
1.3
11.1
5.9
39,302
47
1,997
19.7
11.3
2.7
1.4
14.0
5.5
69,106
51
1,518
44.6
25.1
7.4
3.3
16.9
8.9
Indices
Oct’24 closing
YoY change (%)
EPS (12m fwd)
P/E (12m fwd)
P/E (10 yr average)
P/B (12m fwd)
P/B (10 yr average)
RoE (%)
RoA (%)
Nifty 50
24,205
27
1,059
20.6
20.5
3.3
2.8
16.3
2.9
Nifty Auto Nifty BANK Nifty FMCG
23,515
48
979
24.1
19.0
4.1
2.9
17.2
8.8
51,475
20
3,401
15.2
15.9
2.2
2.1
13.5
-
59,203
15
1,334
44.8
33.3
10.8
8.6
24.2
22.9
Nifty IT
40,408
32
1,297
32.1
20.5
8.0
4.9
25.0
21.5
Source: Bloomberg, MOFSL; as of 31
st
Oct| LPA: Long Period Average i.e. 10-year average
CHART BOOK | November 2024
34
June 2020
 Motilal Oswal Financial Services
Barring Auto and Pvt. Banks, most sectors trade at a premium to their historical average
Sectoral valuation
Sector
Auto
Banks - Private
Banks - PSU
NBFC
Capital Goods
Cons. Durables
Cement
Consumer
Consumer Ex ITC
Healthcare
Infrastructure
Logistics
Media
Metals
Oil & Gas
Oil & Gas Ex RIL
Sp. Chemicals
Real Estate
Retail
Technology
Telecom
Utilities
PE (x)
Current
23.7
16.4
7.4
15.8
41.0
51.5
37.7
45.7
53.4
34.0
22.3
27.3
19.4
12.1
15.2
9.0
36.6
43.5
84.0
26.8
Loss
14.3
10 Yr Avg Prem/Disc (%)
27.5
-13.8
21.1
10.1
17.3
28.7
33.2
27.7
41.6
51.6
26.8
11.5
21.2
25.3
10.9
12.5
8.7
24.2
29.2
82.3
20.7
186.5
8.0
-22.3
-26.3
-8.8
42.9
54.9
36.1
9.9
3.4
26.6
93.4
28.7
-23.4
10.2
21.3
4.3
51.0
49.0
2.1
29.2
-
78.7
PE Std. Deviation
+1SD
36.3
26.4
40.7
19.9
34.4
44.7
34.4
45.3
58.3
31.1
18.8
25.2
29.5
14.6
15.5
11.6
34.4
40.3
133.0
25.5
1742.6
10.3
-1SD
18.7
15.9
-20.5
14.8
23.0
21.8
21.0
37.9
45.0
22.5
4.3
17.3
21.0
7.3
9.6
5.7
14.0
18.0
31.6
15.9
-1369.6
5.6
-31
Relative to
Nifty P/E (%)
Current 10 Yr Avg
15
33
-20
-64
-23
99
150
83
122
159
65
8
32
-6
-41
-26
-56
78
111
308
30
2
-54
-16
40
62
35
104
153
32
-43
3
23
-47
-39
-58
20
42
307
2
792
-61
PB (x)
Current
4.5
2.4
1.2
2.3
7.6
9.2
3.3
11.2
12.6
5.1
2.0
4.6
1.8
2.4
1.6
1.2
4.2
4.9
15.4
8.5
45.1
2.0
10 Yr Avg Prem/Disc (%)
3.5
28.8
2.5
0.9
2.4
4.0
5.3
2.6
10.3
13.2
3.9
1.3
3.4
3.7
1.6
1.5
1.2
3.2
2.1
9.5
5.7
18.1
1.0
-6.7
39.6
-3.5
90.0
73.9
24.6
9.3
-4.8
31.4
60.8
36.0
-51.0
45.4
10.4
-1.5
30.3
130.9
62.4
49.2
149.1
98.2
PB Std. Deviation
+1SD
4.1
2.8
1.1
2.7
5.3
7.2
3.1
11.1
14.5
4.7
1.8
4.1
5.5
2.0
1.7
1.5
4.4
3.2
13.6
7.3
40.6
1.3
-1SD
2.9
2.2
0.6
2.0
2.7
3.4
2.2
9.4
12.0
3.0
0.7
2.6
2.0
1.2
1.3
0.9
2.1
1.0
5.4
4.0
-4.4
0.7
Relative to
Nifty P/B (%)
Current 10 Yr Avg
35
22
-28
-64
-31
129
179
-1
239
281
53
-39
39
-45
-29
-51
-64
27
47
366
156
0
-39
-10
-70
-17
39
84
-7
265
372
37
-57
19
36
-43
-48
-56
12
-28
229
98
198
-65
CHART BOOK | November 2024
35
June 2020
 Motilal Oswal Financial Services
Top ideas within the MOFSL Universe
MCap
(USDb)
Preferred large cap stocks
ICICI Bank
110.0
HDFC Bank
157.5
Bharti Airtel
117.5
Hind. Unilever
71.4
HCL Technologies
59.4
Larsen & Toubro
55.7
M&M
40.1
Power Grid Corpn
35.2
Titan Company
35.0
Mankind Pharma
12.5
Preferred midcap/smallcap stocks
Indian Hotels
11.6
Persistent Sys
10.4
Dixon Tech.
10.1
Godrej Properties
9.5
Metro Brands
3.8
Global Health
3.5
Angel one
3.2
PNB Housing
2.9
Five-Star Business
2.7
Cello World
2.1
CMP
(INR)
1,292
1,735
1,612
2,528
1,768
3,624
2,727
321
3,269
2,667
677
5,375
14,065
2,879
1,201
1,106
3,055
964
712
829
EPS (INR)
FY24
65.4
88.2
35.9
45.3
63.7
111.1
103.0
18.4
45.5
54.5
11.2
89.5
128.4
52.0
14.1
19.3
169.0
72.3
36.9
18.3
FY25E
73.3
100.1
45.4
51.0
71.9
137.2
122.7
19.2
56.4
62.4
14.4
115.0
177.1
32.8
17.5
24.8
189.7
88.8
43.0
23.0
FY26E
85.4
115.6
60.6
56.2
80.3
160.3
146.4
20.2
66.8
74.3
16.2
133.8
231.9
27.8
22.0
29.2
264.1
108.4
51.2
28.5
EPS
CAGR (%)
FY24-26E
14.3
14.5
30.0
11.3
12.2
20.1
19.2
4.8
21.2
16.7
20.2
22.3
34.4
-26.8
25.0
23.1
25.0
22.4
17.8
24.8
FY24
19.8
19.7
44.9
55.7
27.7
32.6
26.5
17.5
71.8
48.9
60.2
60.0
109.5
55.4
85.1
57.4
18.1
13.3
19.3
45.3
PE (x)
FY25E FY26E
17.6
17.3
35.5
49.5
24.6
26.4
22.2
16.7
58.0
42.7
47.0
46.7
79.4
87.8
68.5
44.5
16.1
10.9
16.6
36.0
15.1
15.0
26.6
45.0
22.0
22.6
18.6
15.9
49.0
35.9
41.7
40.2
60.6
103.4
54.5
37.9
11.6
8.9
13.9
29.1
FY24
3.3
2.7
10.1
11.5
7.1
5.1
5.3
3.3
23.8
9.7
8.8
14.3
34.4
7.0
14.6
8.9
4.3
1.5
3.3
11.6
PB (x)
FY25E FY26E
2.8
2.4
7.9
11.3
7.2
4.4
4.5
3.1
18.5
8.3
7.5
12.0
24.1
6.5
12.4
7.6
3.7
1.3
2.8
8.8
2.4
2.1
6.9
10.9
7.3
3.8
3.7
3.0
14.6
7.0
6.4
10.2
17.3
6.1
10.4
6.6
3.1
1.2
2.3
6.8
FY24
18.0
14.4
24.0
20.7
25.6
16.5
21.6
19.1
37.5
21.4
15.7
25.6
37.1
13.5
19.0
16.6
31.2
11.8
18.8
25.5
ROE (%)
FY25E FY26E
17.4
14.6
27.0
23.0
29.3
17.9
21.8
19.1
35.9
20.9
17.2
27.9
35.7
7.7
20.1
18.5
24.5
12.9
18.3
24.5
17.4
14.9
30.0
24.7
33.1
18.2
21.8
19.0
33.4
21.2
16.5
27.5
33.3
6.1
21.3
18.6
29.0
14.0
18.2
26.4
CHART BOOK | November 2024
36
June 2020
 Motilal Oswal Financial Services
Quant Research & India Strategy Gallery
CHART BOOK | November 2024
37
June 2020
 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.
38
June 2020
 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.
39
June 2020
 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.
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.
40
June 2020