Sector
Sector Update | Financials
Update | 23 April 2018
Financials - NBFC
Technology
Click here for the report
MSME Finance sector in a sweet spot
Fastest growing segment within non-retail finance; NBFCs gaining share
We studied the ‘MSME Pulse’ report authored by SIDBI and Trans Union-CIBIL. Our key
takeaways:
Growth in micro-credit higher than other segments
Over the past two years (CY15-17), micro-credit (<INR10m) grew at a CAGR of 14%
compared to a CAGR of 11% for SME credit (INR10m-250m) and 8-9% for mid-and-
large-corporate finance. The faster growth in micro-credit was driven by a sharp
pickup in growth in CY17 – while large corporate credit remained muted, micro-
credit grew 21%.
Interestingly, within micro-credit, the “very small” credit
(<INR1m) grew 32% in CY17. This is rather counter-intuitive – while it was largely
expected that this segment would be most impacted in the aftermath of
demonetization, it actually witnessed the highest growth.
Share of LAP/MSME financing in
total loans among NBFCs under
coverage (%)
MASFIN
SCUF
CAFL
CIFC
IHFL
Repco
DHFL
PNBHF
LICHF
86.5
55.0
40.0
25.1
20.0
18.9
17.8
16.0
13.2
Asset quality stable in MSME finance; mid-large corporate most impacted
Interestingly, not only is the GNPL ratio lowest in the micro-credit segment, but
also the increase in the GNPL ratio over CY15-17 is the lowest.
For the micro and
SME credit segment, GNPL ratio increased by 80/140bp over the past two years. For
the mid and large corporate segment, it increased by 280/900bp. The latter was
driven by RBI’s asset quality review (AQR) in 4QFY16. Also, for the MSME finance
segment as a whole, the GNPL ratio for private banks has remained stable at 3.7%,
while that of state-owned banks and NBFCs has increased by 200bp. Also, among all
states, Rajasthan stands out in terms of asset quality (GNPL ratio of 3.5% v/s
average of ~10%).
State-owned banks dominant, but losing share
State-owned banks are the largest players in the MSME finance segment, with a
market share of 55% as of CY17. However, over the past two years, they have ceded
share to private sector banks and NBFCs. The share of private sector banks now
stands at 29% while that of NBFCs is at 10%. Also,
state-owned banks
overwhelmingly dominate the ‘new to credit’ borrower, especially in the sub-
INR1m ticket range, with a market share of 79%. In this segment, NBFCs have a
share of only 5% – we believe there is huge scope for NBFCs to gain market share.
This bodes well for small-ticket MSME-focused players like SCUF and MASFIN.
View
We remain constructive on the MSME finance segment, given the large untapped
opportunity and runway for growth. The fact that sub-INR1m ticket credit grew 32%
in CY17 is testimony to the fact that demand in this segment exists despite the
impact of demonetization. We prefer players that have been in this business for
many years and have seen multiple cycles. We have BUY on SCUF and MASFIN.
Research Analyst: Alpesh Mehta
(Alpesh.Mehta@MotilalOswal.com); +91 22 6129 1526 |
Piran Engineer
(Piran.Engineer@MotilalOswal.com); +91 22 6129 1539
Nitin Aggarwal
(Nitin.Aggarwal@MotilalOswal.com); +91 22 6129 1542 |
Shubranshu Mishra
(Shubranshu.Mishra@MotilalOswal.com); +91 22 6129 1540
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
23 April 2018
1

Sector Update | Financials
On an uptick
Micro-credit growing faster than other segments
Micro-credit grew 21% in CY17, ahead of all other segments, despite the
aftermath of demonetization. This was led by strong growth (32%) in the “very
small” ticket segment (sub-INR1m).
This underscores the inherent demand for credit in that segment and points to
the vast untapped opportunity.
Share of micro-credit in
total non-retail credit
increased from 6.3% to
6.8% over CY15-17
Exhibit 1:
Growth in micro-credit picked up in CY17
Credit (INR t)
Micro credit (<INR10m)
YoY growth (%)
SME credit (INR10-250m)
YoY growth (%)
Mid-Corp (INR0.25-1b)
YoY growth (%)
Large-Corp (INR1b+)
YoY growth (%)
Total
YoY growth (%)
Dec '15
2.7
6.6
4.3
29.6
43.2
Dec '16
2.9
7.4
7.5
13.6
4.9
14.0
34.4
16.2
49.7
15.0
Dec '17
3.5
20.7
8.2
9.3
5.1
4.1
34.6
0.6
51.4
3.4
CAGR
14%
11%
9%
8%
9%
Source: ‘MSME Pulse’ report
Steady growth across all
sub-categories in the micro-
credit segment
Exhibit 2:
Very small credit (sub-INR1m) is the driver of growth
Micro Credit (INR t)
Very-small (<INR1m)
YoY growth (%)
Micro1 (INR1-5m)
YoY growth (%)
Micro2 (INR5-10m)
YoY growth (%)
Total
YoY growth (%)
Dec '15
0.58
1.29
0.84
2.71
Dec '16
0.56
-3
1.42
10
0.95
13
2.93
8
Dec '17
0.74
32
1.66
17
1.10
16
3.50
19
CAGR
13%
13%
14%
14%
Source: ‘MSME Pulse’ report
GNPL ratio of 8% for micro-
credit better than 16-17%
for mid and large corporate
MSME finance asset quality better than other segments
MSME finance has witnessed only a slight deterioration in asset quality over the
past two years, while mid and large corporate financing have both witnessed
significant deterioration.
For large corporates, this was driven by RBI’s AQR conducted in FY16.
23 April 2018
2

Sector Update | Financials
Exhibit 3:
RBI’s AQR led to sharp increase in GNPL ratio (%) for the mid and large corporate
financing segment
Micro (<INR10m)
Mid-Corp (INR250m-1b)
15.8
13.1
9.8
8.0 7.9
Dec '15
14.7
11.3
9.2
Dec '16
SME (INR10-250m)
Large-Corp (INR1b+)
16.9
15.9
11.2
8.8
Dec '17
Source: ‘MSME Pulse’ report
Exhibit 4:
Entities with exposure in the range of INR1m-50m have lower GNPL ratio
Source: ‘MSME Pulse’ report
Private sector banks have
maintained stable asset
quality in this segment
Exhibit 5:
Private sector banks have had stable asset quality (GNPL ratio, %)
Source: ‘MSME Pulse’ report
23 April 2018
3

Sector Update | Financials
Sharp pick-up in the
number of new-to-credit
borrowers in the past two
years
Pickup in number of new-to-credit borrowers; state-owned banks dominant
in this area
The number of new-to-credit (NTC) borrowers entering the system increased
sharply from 270,000 in 1HCY16 to 400,000 in 2HFY17. NTC borrowers form
9.7% of total credit in the “very small” credit segment and 5.2% in the MSME
segment.
Exhibit 6:
New MSME credit borrowers have accelerated in 2HCY17
Source: ‘MSME Pulse’ report
Exhibit 7:
Lender mix in sub-INR1m ticket range
NBFC, 5%
Private ,
13%
Others, 2%
Exhibit 8:
Lender mix in INR1m-100m ticket range
Others, 4%
NBFC, 16%
PSB, 51%
Private ,
29%
PSB, 79%
Source: ‘MSME Pulse’ report
Source: ‘MSME Pulse’ report
State-owned banks
dominant in catering to the
new-to-credit customer
segment, but market share
on the decline
Exhibit 9:
MSME finance market share of various players (%)
CY15
61.5
55.4
CY17
25.4
28.5
7.9
10.4
5.2
Others
Source: ‘MSME Pulse’ report
5.7
PSB
Private
NBFC
23 April 2018
4

Sector Update | Financials
At 3.5%, GNPL ratio in
Rajasthan significantly
below average of ~10%
Maharashtra the largest state for MSME finance; Rajasthan has least NPLs
The five largest states, led by Maharashtra, account for 45% of the banking
system’s exposure to the MSME segment.
Delinquency rates in Rajasthan are significantly lower than peers. This bodes
well for players operating there, for example, AU SFB.
Exhibit 11:
GNPL ratio is significantly lower for Rajasthan (%)
12.5
11.5
Exhibit 10:
MSME finance exposure (state-wise; INR b)
1,236
826
672
671
579
499
495
10.3
9.9
8.3
8.2
8.0
6.9
6.3
3.5
387
382
355
Mah
TN
Guj
AP
UP
Kar
Delhi WB
Raj
HY
WB
Mah Delhi
AP
UP
Kar
TN
HY
Guj
Raj
Source: ‘MSME Pulse’ report
Source: ‘MSME Pulse’ report
MASFIN and SCUF have high
exposure to this segment
Some NBFCs under our coverage have meaningful exposure to the MSME
segment
MASFIN and SCUF have more than half of their total exposure to the MSME
segment. CAFL, CIFC and IHFL have meaningful share of LAP in their loan books.
Exhibit 13:
Share of LAP/MSME finance in the overall loan
book of NBFCs under our coverage
86.5
Exhibit 12:
LAP/MSME finance AUM for NBFCs under our
coverage (INR b)
215 206
182
145
115
98
91
89
86
32
18
55.0
40.0
25.1
20.0 18.9 17.8 16.0
13.2 11.9
3.0
Source: MOSL, Company
Source: MOSL, Company
23 April 2018
5

Sector Update | Financials
Exhibit 14:
Financials: Valuation metrics
66
Rating
FY20E
ICICIBC*
HDFCB
AXSB
KMB*
YES
IIB
IDFC Bk
FB
DCBB
JKBK
SIB
Equitas
RBL
Private Aggregate
SBIN (cons)*
PNB
BOI
BOB
CBK
UNBK
INBK
Public Aggregate
Banks Aggregate
HDFC*
LICHF
IHFL
PNBHF
GRHF
REPCO
DEWH
Housing Finance
SHTF
MMFS
BAF
CIFC
SCUF
LTFH
MUTH
CAFL
Asset Finance
NBFC Aggregate
*Multiples adj. for value of key ventures/Investments; For ICICI Bank and HDFC Ltd BV is adjusted for investments in subsidiaries
Buy
Buy
Buy
Buy
Buy
Buy
Neutral
Buy
1,469
508
1,707
1,311
2,047
180
436
778
5.2
4.7
15.3
3.2
2.1
5.1
2.7
1.2
18.2
37.6
37.3
22.2
17.7
24.2
10.2
23.7
13.8
27.2
26.8
19.1
14.1
16.4
10.4
17.8
11.5
22.0
19.6
15.6
11.8
13.3
9.1
13.8
2.6
3.4
6.0
4.0
2.4
3.5
2.2
3.0
2.3
3.2
5.0
3.4
2.1
3.0
1.9
2.6
1.9
2.9
4.1
2.8
1.8
2.5
1.7
2.2
2.7
1.8
3.5
3.0
3.3
1.7
5.4
1.7
3.1
2.1
3.6
3.0
3.6
2.2
5.0
1.8
3.3
2.2
3.7
3.1
3.7
2.3
5.1
1.9
15.1
10.7
20.2
19.6
14.3
15.8
23.8
13.2
17.4
12.2
20.4
19.2
15.9
19.6
19.9
15.4
18.3
13.9
23.1
19.8
16.6
20.4
19.6
17.2
Buy
Neutral
Buy
Buy
Neutral
Buy
Buy
1,882
573
1,379
1,301
592
687
614
46.3
4.5
8.9
3.4
3.4
0.7
3.1
27.7
14.4
16.5
24.8
60.0
19.1
16.5
21.3
12.6
13.0
19.6
50.4
16.4
13.5
18.1
10.6
10.4
14.6
40.5
13.7
10.9
4.8
2.3
4.3
3.5
17.9
3.2
2.2
3.5
2.0
3.8
3.1
14.7
2.7
1.9
3.1
1.7
3.3
2.6
12.1
2.3
1.7
1.9
1.4
3.2
1.7
2.4
2.3
1.2
1.9
1.4
3.1
1.5
2.4
2.3
1.2
1.9
1.5
3.1
1.5
2.4
2.3
1.2
19.1
16.9
27.6
15.0
32.7
18.1
13.9
18.3
16.9
31.0
16.7
32.1
17.9
15.2
18.0
17.4
33.8
19.4
32.7
18.0
16.5
Buy
Buy
Neutral
Buy
Neutral
Neutral
Buy
318
186
169
173
375
145
398
41.4
5.9
2.7
6.0
3.1
1.5
2.9
25.0
17.6
-143.0
9.7
13.2
7.9
11.6
14.5
9.8
34.4
7.6
5.5
4.9
10.4
8.4
7.7
16.5
5.8
3.8
3.2
9.4
1.1
1.0
0.7
1.0
0.8
0.5
1.2
1.0
0.9
0.7
0.9
0.7
0.4
1.1
1.0
0.8
0.7
0.9
0.6
0.4
1.0
0.3
0.3
0.0
0.4
0.3
0.3
0.7
0.5
0.5
0.1
0.5
0.6
0.4
0.7
0.8
0.5
0.2
0.6
0.8
0.6
0.7
5.3
5.3
-0.4
6.4
5.0
5.9
10.9
8.0
9.0
1.8
9.4
11.3
9.1
11.2
13.1
10.4
3.6
10.9
14.7
12.6
11.3
Buy
Buy
Buy
Buy
Buy
Buy
Neutral
Buy
Neutral
Buy
Buy
Buy
Buy
CMP
362
1,951
619
1,074
359
1,723
59
103
185
76
32
153
537
Mcap
35.3
78.9
22.9
30.9
12.7
15.8
3.2
2.7
0.9
0.6
0.9
0.8
3.1
20.1
29.1
42.2
32.8
19.7
28.2
19.7
18.9
25.2
9.1
16.8
88.1
33.4
P/E (x)
15.2
24.2
19.9
25.9
15.0
21.8
18.4
15.9
20.6
5.7
8.5
26.6
23.7
11.9
19.3
13.9
19.8
11.7
17.0
15.1
12.6
17.0
4.4
6.5
15.4
17.8
2.1
4.3
2.3
4.3
3.3
4.5
1.3
1.6
2.2
0.7
1.2
2.3
3.4
P/BV (x)
1.9
3.8
2.1
3.7
2.8
3.8
1.2
1.5
2.0
0.7
1.1
2.1
3.1
1.6
3.3
1.8
3.1
2.3
3.2
1.2
1.4
1.8
0.6
0.9
1.9
2.7
1.1
1.8
0.6
1.6
1.7
1.8
0.8
0.8
0.8
0.5
0.4
0.6
1.2
RoA (%)
1.2
1.9
1.1
1.7
1.7
1.9
0.8
0.8
0.9
0.7
0.8
1.6
1.3
1.4
2.0
1.3
1.8
1.8
1.9
0.9
0.9
0.9
0.7
0.9
2.0
1.3
8.8
16.7
5.9
13.2
17.6
17.0
6.8
9.4
10.1
8.4
6.9
2.6
12.4
RoE (%)
10.5
16.6
11.1
14.3
19.9
19.1
6.9
9.8
10.4
12.3
12.7
8.2
13.7
12.4
18.1
14.1
15.8
21.5
20.7
7.9
11.3
11.3
14.2
14.8
12.8
16.1
(INR) (USDb) FY18E FY19E FY20E FY18E FY19E FY20E FY18E FY19E FY20E FY18E FY19E FY20E
23 April 2018
6

Sector Update | Financials
NOTES
23 April 2018
7

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
Sector Update | Financials
*In case the recommendation given by the Research Analyst becomes inconsistent with the investment rating legend, the Research Analyst shall within 28 days of the inconsistency, 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 Securities Ltd. (MOSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOSL, the Research Entity (RE) as defined in the Regulations, is engaged in the business of providing Stock broking services,
Investment Advisory Services, Depository participant services & distribution of various financial products. MOSL is a subsidiary company of Motilal Oswal Financial Service Ltd. (MOFSL). MOFSL is a listed public company, the details in respect of
which are available on www.motilaloswal.com. 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), Metropolitan Stock Exchange Of India Ltd. (MSE) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) & National Securities Depository Limited (NSDL) and is member of Association of
Mutual Funds of India (AMFI) for distribution of financial products. Details of associate entities of Motilal Oswal Securities Limited are available on the website at http://onlinereports.motilaloswal.com/Dormant/documents/Associate%20Details.pdf
Regulatory Enquiries against Motilal Oswal Securities Limited by SEBI:
SEBI pursuant to a complaint from client Shri C.R. Mohanraj alleging unauthorized trading, issued a letter dated 29th April 2014 to MOSL notifying appointment of an Adjudicating Officer as per SEBI regulations to hold inquiry and
adjudge violation of SEBI Regulations; MOSL requested SEBI to provide all documents, records, investigation report relied upon by SEBI which were referred in Show Cause Notice. The matter is closed and MOSL had to pay Rs. 2
lakhs towards penalty for misplacement of original POA of client.
MOSL, it’s associates, Research Analyst or their relative may have any financial interest in the subject company. MOSL and/or its associates and/or Research Analyst may have 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. MOSL 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 MOSL even though there
might exist an inherent conflict of interest in some of the stocks mentioned in the research report. Research Analyst may have served as director/officer, etc. in the subject company in the last 12 month period. MOSL and/or its associates may have
received any compensation from the subject company in the past 12 months.
In the last 12 months period ending on the last day of the month immediately preceding the date of publication of this research report, MOSL or any of its associates may have:
a)
managed or co-managed public offering of securities from subject company of this research report,
b)
received compensation for investment banking or merchant banking or brokerage services from subject company of this research report,
c)
received compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company of this research report.
d)
Subject Company may have been a client of MOSL or its associates during twelve months preceding the date of distribution of the research report.
MOSL and it’s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report. To enhance transparency, MOSL has incorporated a Disclosure of Interest Statement in
this document. This should, however, not be treated as endorsement of the views expressed in the report. MOSL 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 MOSL 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.
Terms & Conditions:
This report has been prepared by MOSL 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 MOSL. 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. MOSL will not treat recipients as customers by
virtue of their receiving this report.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the
specific recommendations and views expressed by research analyst(s) in this report.
Disclosure of Interest Statement
Analyst ownership of the stock
Companies where there is interest
No
A graph of daily closing prices of securities is available at www.nseindia.com, www.bseindia.com. Research Analyst views on Subject Company may vary based on Fundamental research and Technical Research. Proprietary trading desk of MOSL or
its associates maintains arm’s length distance with Research Team as all the activities are segregated from MOSL 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
MOSL & 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 Securities Limited (MOSL) 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 MOSL 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 MOSL, 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.,
MOSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of
this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer, MOSIPL, and therefore, may not be subject
to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets services license and an exempt financial adviser in Singapore,
as per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore.
Persons in Singapore should contact MOCMSPL in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”, of which some of
whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such
Singapore Person must immediately discontinue any use of this Report and inform MOCMSPL.
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.
MOSL, 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 MOSL. 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 MOSL 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 MOSL or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOSL
or any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022-3980 4263; www.motilaloswal.com. Correspondence Address: Palm Spring Centre, 2nd Floor, Palm
Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 3080 1000. Compliance Officer: Neeraj Agarwal, Email Id: na@motilaloswal.com, Contact No.:022-30801085.
Registration details of group entities.: MOSL: SEBI Registration: INZ000158836 (BSE/NSE/MSE); CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412. AMFI: ARN 17397. Investment Adviser: INA000007100.
Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670) offers PMS and Mutual Funds products. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) offers wealth
management solutions. *Motilal Oswal Securities Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs, Insurance and IPO products. * Motilal Oswal Commodities Broker Pvt. Ltd. offers Commodities Products. * Motilal Oswal Real
Estate Investment Advisors II Pvt. Ltd. offers Real Estate products. * Motilal Oswal Private Equity Investment Advisors Pvt. Ltd. offers Private Equity products
23 April 2018
8