Sector Update | 14 November 2018
Sector Update | Financials
India Life Insurance
Technology
I
nsurance
T
racker
Private players report steady WRP growth
Private players’ new business WRP growth was steady at ~17% YoY in Oct-18 (also flat on a
sequential basis), even as industry growth slowed down to 3.8% (+5.3% YoY in Sep-18).
Among private players, HDFC Life, Tata AIA, Birla Sunlife and Reliance Life exhibited robust
growth trends. WRP growth for HDFC Life stood at a six-month high of ~39% YoY, while it
stood at 15% YoY (v/s 17.4% in Sep-18) for SBI Life. IPRU continued showing a weak trend,
with new business WRP declining by 13% YoY (-8% over FY19YTD). On the other hand, LIC
reported a decline of 7.8% YoY in its new business WRP due to a 24% YoY fall in group
WRP. YTD growth for industry now stands at 6.4% YoY, led by growth of ~13% YoY for
private players and flat growth at LIC. We estimate private players to report WRP growth
of 16% in FY19, which implies residual growth of ~18% for the remaining months. Private
players’ market share, thus, will likely improve to 53.7% (51% in FY18).
Private players’ market share shrinks to 52.3% (51.4% in FY19YTD)
Private players’ share in total WRP contracted 428bp MoM to 52.3% in Oct-18.
Private players’ market share on an individual WRP basis stood at 56.1% (-361bp
MoM). Among private players, SBI Life and Bajaj Allianz gained maximum market
share in the individual WRP segment. However, SBI Life (13.5% market share)
remains the largest insurer based on individual WRP premiums.
Total WRP and FY19 YTD market
share – sorted on Sep-18
Total WRP
Grand Total
Total Public
Total Private
SBI Life
HDFC Standard
ICICI Prudential
Max Life
Bajaj Allianz
Tata AIA
Kotak Life
Birla SunLife
PNB Met Life
FY19 YTD
Sep-18 mkt sh.
(%)
61,662
100.0
29,414
32,247
7,188
5,187
5,083
2,308
1,736
1,631
1,542
1,461
1,002
48.6
51.4
10.4
7.1
9.5
4.0
2.5
2.2
2.7
2.1
1.6
Top five private players account for ~66% of total private industry
The market share of top-five private players – SBI Life, ICICI Prudential Life, HDFC
Life, Max Life and Kotak Life – stands stable at ~66%. However, a few other players
like Tata AIA and more recently Birla SunLife have been showing healthy traction
and are emerging as strong contenders to become the sixth large insurer. Among
key listed players, on a WRP basis…
HDFCLIFE reported ~39% YoY growth (23% during FY19YTD) – largely in line with
our FY19 estimate.
SBILIFE reported 15% YoY growth (+11% in FY19YTD) – significantly below its
historical run-rate.
IPRU reported decline of 13% YoY (-8% in FY19YTD) – significantly below our
estimate.
Max Life reported ~28% YoY growth (+26% in FY19YTD).
Mutual fund AUM grew ~1% MoM to INR22.2t
Mutual fund AUM grew ~1% MoM to INR22.2t, led by ~15% MoM growth in money
market schemes. AUM of income funds/gold ETFs/balanced funds declined by
4.7%/2.5%/1.4% MoM, while that of ELSS funds was flat MoM at INR2.4t.
Source: Company, MOSL
Research Analyst: Nitin Aggarwal
(Nitin.Aggarwal@MotilalOswal.com); +91 22 3982 5540
| Parth Gutka
(Parth.Gutka@motilaloswal.com); +91 22 3010 2746
Alpesh Mehta
(Alpesh.Mehta@MotilalOswal.com); +91 22 3982 5415
| Yash Agarwal
(Yash.Agarwal@motilaloswal.com); +91 22 3846 6693
14 November 2018
Investors are advised to refer through important disclosures made at the last page of the Research Report.
1
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Sector Update | Financials
Exhibit 1:
New business premium and YoY growth for key players – sorted on WRP – INR m
8,000
6,000
4,000
2,000
0
15%
39%
-13%
28% 16%
77%
Oct-18
97%
2%
26%
YoY gr. (RHS)
42%
56%
22% 10%
42%
145%
70%
-5%
-80%
Source: Company, MOSL
Exhibit 2:
New business WRP, growth and market share – sorted on FY19YTD
INRm
Grand Total
Total Private
Total Public
SBI Life
ICICI Prudential
HDFC Standard life
Max Life
Kotak Life
Bajaj Allianz
Tata AIA
Birla Sunlife
PNB Met Life
Reliance Life
Canara HSBC OBC
DLF Pramerica
IndiaFirst Life
Exide Life
Bharti Axa Life
Shriram Life
Future Generali
Oct-18
61,662
32,247
29,414
7,188
5,083
5,187
2,308
1,542
1,736
1,631
1,461
1,002
725
524
402
669
509
456
318
430
YoY
growth
3.8%
17.3%
-7.8%
15.0%
-13.4%
38.9%
27.7%
2.3%
15.7%
76.9%
96.7%
26.0%
42.1%
22.4%
-29.1%
56.4%
9.6%
41.8%
0.6%
23.0%
Mkt
share
100.0%
52.3%
47.7%
11.7%
8.2%
8.4%
3.7%
2.5%
2.8%
2.6%
2.4%
1.6%
1.2%
0.9%
0.7%
1.1%
0.8%
0.7%
0.5%
0.7%
FY19YTD
417,572
214,724
202,849
43,619
39,687
29,639
16,641
11,093
10,401
9,388
8,918
6,663
5,157
4,989
4,817
3,881
3,650
3,028
2,677
2,595
YoY
growth
6.4%
13.3%
0.0%
11.0%
-8.0%
22.6%
25.5%
12.9%
9.2%
57.4%
48.7%
16.4%
24.4%
14.8%
62.3%
29.5%
7.4%
56.2%
2.9%
8.5%
Mkt
share
100.0%
51.4%
48.6%
10.4%
9.5%
7.1%
4.0%
2.7%
2.5%
2.2%
2.1%
1.6%
1.2%
1.2%
1.2%
0.9%
0.9%
0.7%
0.6%
0.6%
FY18
793,951
406,513
387,438
84,120
79,033
53,833
33,067
24,458
19,190
14,830
13,979
12,777
8,722
8,979
6,908
6,578
7,020
4,653
5,192
5,239
YoY
growth
12.0%
16.6%
7.5%
27.4%
21.7%
31.8%
20.3%
13.3%
-9.9%
31.6%
-43.5%
18.8%
-9.8%
37.9%
179.9%
24.5%
6.4%
13.6%
7.5%
39.7%
Mkt
share
100.0%
51.2%
48.8%
10.6%
10.0%
6.8%
4.2%
3.1%
2.4%
1.9%
1.8%
1.6%
1.1%
1.1%
0.9%
0.8%
0.9%
0.6%
0.7%
0.7%
Source: IRDA; MOSL Research
14 November 2018
2

Sector Update | Financials
Exhibit 3:
Un-weighted new business premium and growth – sorted on FY19 YTD
INRm
Grand Total
Total Public
Total Private
HDFC life
SBI Life
ICICI Prudential
Bajaj Allianz
Max Life
Birla Sunlife
Kotak Life
IndiaFirst Life
Tata AIA
DLF Pramerica
PNB Met Life
Canara HSBC OBC
Reliance Life
Bharti Axa Life
Shriram Life
Exide Life
Oct-18
154,805
101,570
53,235
11,640
10,384
6,755
4,951
3,070
3,316
2,436
1,975
1,668
652
1,131
896
744
705
477
555
YoY
growth
11.6%
4.1%
29.2%
39.9%
38.0%
1.3%
31.8%
24.1%
89.6%
13.2%
119.1%
80.6%
-45.1%
24.4%
36.9%
41.7%
35.3%
-15.5%
17.1%
FY19YTD
1,085,595
736,376
349,219
74,508
66,087
49,525
24,286
22,141
20,066
17,269
11,448
9,508
8,485
7,512
7,284
5,368
4,680
4,196
3,847
YoY
growth
2.4%
-5.6%
24.7%
42.6%
31.4%
0.0%
4.3%
21.8%
55.7%
22.8%
104.2%
59.0%
11.7%
16.2%
26.7%
21.8%
49.2%
3.8%
8.6%
FY18
1,938,819
1,345,517
593,302
113,417
109,561
91,558
42,908
43,480
26,629
34,264
14,261
14,890
14,498
14,271
12,275
9,156
7,307
8,140
7,336
YoY
growth
10.7%
8.2%
17.0%
30.4%
8.0%
16.4%
30.4%
18.6%
5.1%
20.2%
-14.6%
31.6%
65.4%
24.1%
24.9%
-12.9%
20.0%
10.1%
-15.2%
Source: Company, MOSL
Exhibit 4:
Individual WRP, growth and market share – sorted on FY19YTD
INRm
Grand Total
Total Private
Total Public
SBI Life
ICICI Prudential
HDFC life
Max Life
Tata AIA
Bajaj Allianz
Birla Sunlife
PNB Met Life
Kotak Life
Reliance Life
Canara HSBC OBC
Exide Life
IndiaFirst Life
Bharti Axa Life
Shriram Life
Star Union Dai-ichi
Oct-18
49,634
27,860
21,773
6,683
4,689
4,402
2,232
1,409
1,220
1,163
953
1,049
620
470
441
526
435
270
232
YoY
growth
8.4%
16.5%
-0.5%
15.9%
-17.2%
36.5%
27.0%
58.8%
25.9%
110.3%
25.5%
15.6%
45.6%
19.5%
16.1%
38.5%
45.1%
1.2%
-23.5%
Mkt
share
100.0%
56.1%
43.9%
13.5%
9.4%
8.9%
4.5%
2.8%
2.5%
2.3%
1.9%
2.1%
1.2%
0.9%
0.9%
1.1%
0.9%
0.5%
0.5%
FY19YTD
325,921
183,850
142,072
40,780
36,168
24,678
16,014
8,744
7,505
6,941
6,325
6,272
4,545
4,192
3,176
3,051
2,874
2,265
2,253
YoY
growth
9.7%
12.1%
6.6%
12.1%
-9.8%
17.3%
24.5%
54.0%
14.6%
66.7%
15.7%
6.6%
31.7%
10.0%
13.5%
12.4%
58.8%
12.2%
-6.9%
Mkt
share
100.0%
56.4%
43.6%
12.5%
11.1%
7.6%
4.9%
2.7%
2.3%
2.1%
1.9%
1.9%
1.4%
1.3%
1.0%
0.9%
0.9%
0.7%
0.7%
FY18
634,458
356,440
278,018
77,873
74,606
47,536
32,145
13,974
13,971
10,590
12,211
15,745
7,272
8,179
5,943
5,754
4,391
4,295
5,745
YoY
growth
19.2%
24.2%
13.4%
31.1%
16.4%
30.8%
21.8%
33.4%
38.3%
14.9%
20.3%
31.0%
5.4%
33.5%
-2.9%
42.9%
12.8%
14.2%
-4.5%
Mkt
share
100.0%
56.2%
43.8%
12.3%
11.8%
7.5%
5.1%
2.2%
2.2%
1.7%
1.9%
2.5%
1.1%
1.3%
0.9%
0.9%
0.7%
0.7%
0.9%
Source: Company, MOSL
14 November 2018
3

Sector Update | Financials
Share of LIC in total
individual premium
improved to 42% v/s 38% in
Sep-18
Exhibit 5:
Trend in total individual regular premium and % share of LIC
120
90
60
30
0
Total individual regular premium (INRb)
% share of LIC (RHS)
60%
53%
45%
38%
30%
Source: Company, MOSL
Exhibit 6:
Market share among private players on un-weighted basis/individual WRP basis/total WRP basis - sorted on FY19 YTD total WRP
Un-weighted Premiums
(%)
Grand Total
Total Private
SBI Life
ICICI Prudential
HDFC Standard
Max Life
Kotak Life
Bajaj Allianz
Tata AIA
Birla Sunlife
PNB Met Life
Reliance Life
Canara HSBC OBC
DLF Pramerica
IndiaFirst Life
Exide Life
Bharti Axa Life
Shriram Life
Future Generali
Oct-18
154,805
53,235
19.5%
12.7%
21.9%
5.8%
4.6%
9.3%
3.1%
6.2%
2.1%
1.4%
1.7%
1.2%
3.7%
1.0%
1.3%
0.9%
0.9%
FY19YTD
1,085,595
349,219
18.9%
14.2%
21.3%
6.3%
4.9%
7.0%
2.7%
5.7%
2.2%
1.5%
2.1%
2.4%
3.3%
1.1%
1.3%
1.2%
0.8%
FY18
1,938,819
593,302
18.5%
15.4%
19.1%
7.3%
5.8%
7.2%
2.5%
4.5%
2.4%
1.5%
2.1%
2.4%
2.4%
1.2%
1.2%
1.4%
1.0%
Oct-18
49,634
27,860
24.0%
16.8%
15.8%
8.0%
3.8%
4.4%
5.1%
4.2%
3.4%
2.2%
1.7%
0.7%
1.9%
1.6%
1.6%
1.0%
0.7%
Individual WRP
FY19YTD
325,921
183,850
22.2%
19.7%
13.4%
8.7%
3.4%
4.1%
4.8%
3.8%
3.4%
2.5%
2.3%
1.0%
1.7%
1.7%
1.6%
1.2%
0.7%
FY18
634,458
356,440
21.8%
20.9%
13.3%
9.0%
4.4%
3.9%
3.9%
3.0%
3.4%
2.0%
2.3%
0.9%
1.6%
1.7%
1.2%
1.2%
0.8%
Oct-18
61,662
32,247
22.3%
15.8%
16.1%
7.2%
4.8%
5.4%
5.1%
4.5%
3.1%
2.2%
1.6%
1.2%
2.1%
1.6%
1.4%
1.0%
1.3%
Total WRP
FY19YTD
417,572
214,724
20.3%
18.5%
13.8%
7.8%
5.2%
4.8%
4.4%
4.2%
3.1%
2.4%
2.3%
2.2%
1.8%
1.7%
1.4%
1.2%
1.2%
FY18
793,951
406,513
20.7%
19.4%
13.2%
8.1%
6.0%
4.7%
3.6%
3.4%
3.1%
2.1%
2.2%
1.7%
1.6%
1.7%
1.1%
1.3%
1.3%
Source: Company, MOSL
Exhibit 7:
Market share trend between private players and LIC on total WRP basis
LIC
Private players
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19YTD
Source: IRDA, MOSL
14 November 2018
4

Sector Update | Financials
Exhibit 8:
Trend in average ticket size in individual regular premium across major insurers
INRm
Bajaj Allianz
Exide Life
Reliance Life
SBI Life
HDFC life
ICICI Prudential
Birla Sunlife
Aviva Life
Kotak Life
Max Life
PNB Met Life
Shriram Life
Bharti Axa Life
Future Generali
Canara HSBC OBC
Star Union Dai-ichi
IndiaFirst Life
Edelweiss Tokio
Total Public
Total Private
Grand Total
Oct-18
55,861
30,814
38,703
57,192
61,723
79,609
57,228
48,048
53,177
50,830
58,926
16,862
39,087
37,307
63,233
44,970
39,899
40,899
15,001
55,318
26,073
YoY growth
8%
0%
17%
7%
42%
-11%
74%
-24%
-7%
-6%
8%
7%
1%
52%
-14%
6%
20%
12%
3%
6%
8%
FY19YTD
52,122
32,732
38,313
55,750
47,855
85,561
51,673
51,698
51,629
51,905
60,577
14,820
37,852
40,687
72,086
48,971
38,930
43,158
13,870
53,280
24,295
YoY growth
25%
15%
24%
5%
15%
-7%
61%
-10%
5%
3%
18%
-18%
-1%
35%
-4%
12%
8%
22%
6%
5%
6%
FY18
45,448
31,934
33,636
54,929
45,244
93,116
42,518
70,440
55,909
55,836
55,665
17,382
40,696
35,301
78,115
50,941
38,586
40,852
12,510
53,476
22,600
YoY growth
23%
2%
33%
17%
7%
-2%
40%
22%
19%
9%
19%
-8%
4%
-21%
16%
1%
20%
1%
7%
11%
11%
Source: Company, MOSL
14 November 2018
5

Sector Update | Financials
Exhibit 9:
Trend in number of policies and average premium per policy
FY16
275
217
494
1287
256
1179
603
291
67
292
477
244
37
276
97
37
115
80
61
63
99
98
595
7240
22803
30043
No. of policies ( In 000's)
FY17
FY18
274
309
188
187
272
217
1276
1428
183
223
1085
1050
703
837
303
249
35
36
300
339
503
562
217
220
16
2
201
247
111
124
42
80
121
117
91
105
48
69
66
93
120
113
126
183
46
65
6327
6853
20132
21338
26459
28192
FY19YTD
145
97
119
735
142
511
449
136
19
142
301
105
0
152
75
32
54
58
25
48
46
93
35
3518
9992
13510
Average premium per policy (INR)
FY16
FY17
FY18
FY19YTD
104,719
120,172
139,087
167,993
29,072
45,945
39,298
39,749
31,544
38,626
42,262
45,133
55,239
79,540
76,699
89,911
28,946
61,725
66,850
67,034
55,007
80,121
107,988
145,897
112,250
111,897
109,358
110,239
76,316
83,651
107,051
147,964
47,785
69,352
89,496
59,541
75,606
94,974
101,173
121,815
60,405
72,845
77,389
73,551
41,167
53,052
64,924
71,657
11,491
27,819
25,179
#DIV/0!
25,578
36,841
32,931
27,529
55,458
54,680
58,959
62,044
68,353
95,525
72,962
92,336
51,365
65,543
71,356
65,867
107,726
107,887
117,043
125,852
22,458
19,105
21,348
24,602
114,228
132,756
155,182
177,986
65,854
63,737
61,896
61,695
151,344
132,671
77,948
122,479
3,088
49,742
52,854
54,782
56,590
80,111
86,570
99,261
42,834
61,792
63,057
73,697
46,149
66,173
68,773
80,354
Source: Company, MOSL
Bajaj Allianz
Exide Life
Reliance Life
SBI Life
Tata AIA
HDFC life
ICICI Prudential
Birla Sunlife
Aviva Life
Kotak Life
Max Life
PNB Met Life
Sahara Life
Shriram Life
Bharti Axa Life
Future Generali
IDBI Federal Life**
Canara HSBC OBC
Aegon Religare
DLF Pramerica
Star Union Dai-ichi
IndiaFirst Life
Edelweiss Tokio
Total Private
Total Public
Grand Total
Exhibit 10:
Trend in number of agents (in 000’s) across major insurers – sorted on Sep-18
In 000's
LIC
ICICI Prudential
SBI Life
Kotak Life
HDFC Standard
Birla Sunlife
Bajaj Allianz
Max Life
Reliance Life
Exide Life
Edelweiss Tokio
Bharti Axa Life
Tata AIA
Aviva Life
DLF Pramerica
IDBI Federal Life**
Sahara Life
Future Generali
FY15
1164
132
84
56
65
91
121
44
105
32
10
19
41
19
2
13
11
17
FY16
1062
121
93
97
82
111
90
45
130
50
15
21
28
10
4
9
11
18
FY17
1131
136
95
97
55
82
77
54
162
56
21
19
26
14
8
8
10
9
FY18
1149
152
108
95
77
92
71
57
65
46
31
29
27
16
12
11
10
12
Sep-18
1156
162
113
106
91
76
65
64
60
45
36
35
27
15
14
13
10
8
Source: IRDA, MOSL research
14 November 2018
6

Sector Update | Financials
Mutual fund data
Mutual fund AUM grew ~1% MoM to INR22.2t, led by ~15% MoM growth in money
market schemes; income funds/gold ETFs/balanced funds exhibited de-growth of
4.7%/2.5%/1.4%. ELSS funds were flat MoM at INR2.4t.
Exhibit 11:
Mutual funds – AUM trend and distribution
INRb
Income
Infra Debt Fund
Equity
Balanced
Money Mkt
Gold ETF
ELSS
Total
Oct-18
6,890
27
6,594
1,745
4,544
78
2,356
22,236
Oct-17
8,558
22
6,324
1,475
3,444
167
1,423
21,413
YoY
chg.
(19.5)
20.4
4.3
18.4
31.9
(53.3)
65.6
3.8
Sept-18
7,230
27
6,631
1,771
3,948
80
2,358
22,044
MoM
chg.
(4.7)
-
(0.6)
(1.4)
15.1
(2.5)
-
0.9
FY18
7,856
25
6,692
1,722
3,355
114
1,597
21,360
YoY
Chg.
5.6
29.4
38.8
103.1
6.8
(23.3)
41.3
21.7
Source: IRDA, MOSL
Exhibit 12:
MF inflows increased for the month of Oct-18 (INRb)
265
161
182
134
246
201
256
229
208 198
114
136 132
130
107 97 102 117
144
Source: MOSL
Exhibit 13:
Distribution of AUM across categories as on FY15
(INRb, %)
Gold ETF
146
Money Mkt
1%
1,626
15%
Balanced
264
3%
Equity
3,057
28%
Infra Debt
Fund
12
0%
Source: Company, MOSL
ELSS
566
5%
Income
5,158
48%
Exhibit 14:
Distribution of AUM across categories as on Oct-
18 (INRb, %)
Gold ETF
78
0%
Money Mkt
4,544
20%
Balanced
1,745
8%
ELSS
2,356
11%
Income
6,890
31%
Infra Debt
Fund
27
0%
Source: Company, MOSL
Equity
6,594
30%
14 November 2018
7

*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.
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
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 BSE Limited (BSE), Multi Commodity
Exchange of India (MCX) & National Commodity & Derivatives Exchange Ltd. (NCDEX) 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
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 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. 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/MCX/NCDEX); 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 Real Estate Investment Advisors II Pvt. Ltd. offers Real Estate
products. * Motilal Oswal Private Equity Investment Advisors Pvt. Ltd. offers Private Equity products
*MOSL
has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National Company Law Tribunal, Mumbai Bench. The existing registration no(s) of
MOSL would be used until receipt of new MOFSL registration numbers.
14 November 2018
8