5 July 2021
India Strategy
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Midcaps hit a home run!
Several benchmarks being reset; risk-reward metric not lucrative
The outperformance of midcap and smallcap indices have gone past their
earlier benchmarks on multiple fronts – consecutive months of positive
returns, 12-month rolling returns gap v/s the Nifty, relative valuations, and
contribution to overall market capitalization.
There exists a sharp divergence in valuations within these indices, with the gap
between the top and bottom quintile expanding.
While the midcap/smallcap valuations are rich and no longer lucrative on the
risk-reward metric, the gradual unlocking of the economy and improved
demand backdrop still offer bottom-up opportunities. Consistent earnings
delivery v/s expectations is critical for further outperformance in our view.
Refer our 4QFY21
results review
Long stretch of monthly positive returns in midcap/smallcap indices
Refer our Return of
commodity inflation report
The recent sharp gains in midcap and smallcap indices have created new
benchmarks.
The NSE Midcap 100/NSE Smallcap 100 indices have generated consecutive
positive monthly returns of 102%/67% in the last 13 months/8 months. This is
the best such period of consecutive months of positive returns for the NSE
Midcap 100. The Nifty Smallcap 100 has bettered this only once in the past.
The NSE Smallcap 100/NSE Midcap 100 index has outperformed the Nifty in
10/9 out of 12 months.
Nifty’s underperformance v/s the midcap index on a 12-month rolling basis is at
the highest levels since the GFC. For the smallcap index, this rolling 12 months
underperformance is at the same level as during the GFC.
Despite these recent sharp gains, the NSE Midcap 100 and NSE Smallcap 100
indices have underperformed the Nifty since their previous peaks of Dec’17. The
Nifty has gained 51% since Dec’17, while the NSE Midcap 100/NSE Smallcap 100
have returned 28%/6%.
M-cap contribution of midcap/smallcap index still away from its peak
The recent broad-based rally has led to a sharp increase in m-cap contribution
from the midcap and smallcap universe.
The m-cap of the NSE Midcap 100 index now contributes 12.1% to overall m-
cap, up from 9.8% in Mar’20. The m-cap for smallcap companies, as a
percentage of overall m-cap, has increased to 3.7% at present from 2.7% in
Mar’20.
Peak contribution for the NSE Midcap 100/NSE Smallcap 100 index is 17.4%/4%
of total m-cap.
In terms of absolute m-cap, NSE Midcap 100/NSE Smallcap 100 are at the
highest ever levels of INR28t/INR8.5t.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Gautam Duggad - Research Analyst
(Gautam.Duggad@MotilalOswal.com)
Jayant Parasramka - Research Analyst
(Jayant.Parasramka@MotilalOswal.com)
 Motilal Oswal Financial Services
India Strategy
Divergence in valuations within midcap and smallcap indices
The Nifty Smallcap 100 has been trading at a premium to the Nifty for the first
time since Dec’14. It is trading at a premium of 7% v/s an average discount of
21% on a 12-month forward basis.
Valuations for the Nifty Midcap 100 index is on par with the Nifty on a 12-month
forward basis.
However, if one were to remove loss-making companies from both the indices,
then the Nifty Midcap/Nifty Smallcap indices are trading at a trailing P/E of
21x/23x FY21 earnings, at a marginal discount to the Nifty.
Valuations, however, are hiding more than what they are revealing. If one looks
at the trailing 12-month valuations for the NSE Midcap 100 and NSE Smallcap
100 indices, there is a wide divergence within the index.
We have divided the NSE Midcap 100 and NSE Smallcap 100 universe into four
quartiles based on their trailing 12-months P/E. Loss-making companies have
been removed from the aggregates. The aggregate quartile P/E of the most
expensive stocks in NSE Midcap 100/NSE Smallcap 100 trade at 80x/79x, while
the least expensive stocks trade at 9.4x/8.5x. This 12-month trailing P/E is
distorted to an extent by the optically low 1QFY20 earnings, due to the stringent
COVID-led lockdown. Historically (as well as on average), the least expensive
aggregate for the NSE Midcap100/NSE Smallcap100 has traded at 8.8x/7.6x,
while the most expensive has traded at 50x/56x. The median P/E for the NSE
Midcap 100 index is 29x.
The sharp outperformance of midcaps, bolstered by healthy earnings, improved
sentiments, benign liquidity, and low cost of capital, has more than bridged the
valuation gap v/s largecaps. Current valuations, while not prohibitively
expensive, are not lucrative from a risk-reward perspective. Meanwhile, balance
sheets and cash flows have improved in FY21 as corporates tightened costs and
deleveraged. The gradual unlocking of the economy and an improved demand
backdrop do offer bottom-up opportunities. Consistent earnings delivery v/s
expectations is critical for further outperformance. Any risk-off owing to
concerns over potential interest rate hikes may impact midcaps/smallcaps more
in our view.
EPS CAGR
FY23E
18.6
22.1
106.8
18.8
63.9
133.5
35.5
1.8
-0.6
8.2
FY21-23, %
23
72
30
7
33
21
4
NM
NM
20
P/E (x)
FY22E
73.3
64.6
34.0
33.4
33.6
25.7
20.3
NM
NM
48.8
FY23E
55.5
32.2
27.1
29.8
25.5
21.3
19.4
80.3
NM
38.8
3.2
7.9
7.5
11.8
5.7
5.0
10.3
5.4
10.5
12.2
P/B (x)
FY22E
FY23E
2.6
6.4
6.4
11.7
4.9
4.2
9.1
5.2
10.9
10.0
RoE (%)
FY22E
18.6
12.8
23.9
38.5
17.9
20.9
55.0
-10.5
-20.1
24.9
FY23E
20.1
21.9
25.5
39.4
20.6
21.3
49.9
6.6
-3.1
25.7
Valuations rich; earnings delivery critical to sustain the outperformance
Exhibit 1:
Top midcap ideas
Company
Max Financial
Varun Beverages
L&T Technology
Emami
Endurance Tech.
J K Cements
ICICI Securities
Indian Hotels
Aditya Birla Fashion
Orient Electric
M-cap
(USD b)
4.8
4.2
4.1
3.4
3.1
3.0
3.0
2.3
2.2
0.9
EPS (INR)
FY21E
12.2
7.5
62.8
16.3
36.0
91.0
33.1
-7.1
-7.1
5.6
FY22E
14.1
11.0
85.3
16.8
48.4
110.5
33.9
-3.0
-4.4
6.5
Source: MOFSL
5 July 2021
2
 Motilal Oswal Financial Services
India Strategy
Long stretch of monthly +ve returns in Mid/Smallcap indices
22% of NSE Midcap 100
components and 23% of
small cap 100 components
have more than doubled
since Jan’18 peak. However,
37% of Midcap 100 and 43%
of Smallcap 100
components are yet to
cross Jan’18 peak
The Mid-cap and Smallcaps have shown strong buoyancy of-late bolstered by
strong underlying sentiments, healthy earnings performance and low cost of
capital. We note that the monthly positive returns of these indices vs. Nifty has
stretched and has now crossed previous such stretch/near to it.
The NSE Midcap 100 and NSE Smallcap 100 indices have generated positive
monthly returns for the last 13 and 8 months, respectively. NSE Midcap 100 has
gained ~102% in the last 13 months, while NSE Smallcap 100 has gained 67% in
the last 8 months.
This is the best such period of consecutive months of positive returns for NSE
Midcap 100 index. The second highest consecutive months of positive returns
for the Midcap 100 index comprise the 9 months between Apr’03 and Dec’03,
wherein it gained by 167%.
The highest consecutive months of positive returns for the Smallcap100 index
comprise the nine months between Jun’04 and Feb’05, wherein it generated
cumulative gains of
85%.
The NSE Smallcap 100 / NSE Midcap 100 index have outperformed the Nifty in
10/9 out of the 12 months. In-fact, in CY21, the Midcap/Smallcap index
outperformed the Nifty in every month / in all months except Mar’21.
Nifty’s underperformance v/s Midcap index on 12 months rolling basis is at the
highest levels since GFC while for Smallcap index, this rolling 12 months
underperformance is at the same level as GFC.
Interestingly, despite these recent sharp gains, the NSE Midcap 100 and NSE
Smallcap 100 indices have underperformed the Nifty since their previous peaks
of Dec’17. The Nifty has gained by 51% since Dec’17, while Midcap 100 /
Smallcap 100 have returned 27%/6%.
Exhibit 2:
NSE Midcap 100 and NSE Smallcap 100 still lag Nifty vs. Dec’17 peak
185
145
105
65
25
Nifty-50
Nifty Midcap-100
Nifty Smallcap-100
151
128
106
Source: Bloomberg, MOFSL
5 July 2021
3
 Motilal Oswal Financial Services
India Strategy
Exhibit 3:
Midcap100 and Smallcap 100 underperformed Nifty from Jan’18 highs to Mar’20 lows
185
145
105
65
25
Nifty-50
Nifty Midcap-100
Nifty Smallcap-100
Index rebased to 100 as on 1 Jan'18
82
55
39
Source: Bloomberg, MOFSL
Exhibit 4:
..although the post pandemic outperformance has been equally sharp
290
240
190
140
90
Nifty-50
Nifty Midcap-100
Nifty Smallcap-100
271
230
183
Source: Bloomberg, MOFSL
Exhibit 5:
Midcap index outperformed Nifty in all months in CY21 so far
No. of months of midcap 100 outperformance v/s Nifty
7
5
3
8
7
4
7
5
8
8
7
4
4
10
7
6
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Source: Bloomberg, MOFSL
Exhibit 6:
Smallcap index has outperformed Nifty in 5/6 months in YTD CY21
No. of months of SmallCap 100 outperformance v/s Nifty
8
6
4
6
4
8
5
5
8
6
3
1
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
10
8
5
7
Source: Bloomberg, MOFSL
5 July 2021
4
 Motilal Oswal Financial Services
India Strategy
Exhibit 7:
Midcap 100 has outperformed Nifty by 15pp in CY21
Midcap 100 relative to Nifty QoQ
4.9
0.6
-1.3
4.9
5.8
8.2
6.4
-4.5
-7.6
Mar'18
-8.5
Jun'18
-7.5
Sep'18
Dec'18
Mar'19
-4.7
Jun'19
-3.1
-6.7
Sep'19
Dec'19
Mar'20
Jun'20
Sep'20
Dec'20
Mar'21
Jun'21
Source: Bloomberg, MOFSL. As on 30 Jun’21
Exhibit 8:
Smallcap 100 has outperformed Nifty by ~22pp in CY21
Smallcap100 relative to Nifty QoQ
5.5
7.1
15.6
8.9
12.1
-3.3
-10.8
Mar'18
-8.4
-13.0
Jun'18
-16.0
Sep'18
-1.6
-7.3
-12.8
-2.1
Dec'18
Mar'19
Jun'19
Sep'19
Dec'19
Mar'20
Jun'20
Sep'20
Dec'20
Mar'21
Jun'21
Source: Bloomberg, MOFSL. As on 30 Jun’21
Exhibit 9:
Midcap 100 post highest consecutive months of
positive returns
Cumulative Return (%)
Midcap 100
9
7
Consecutive month of gains (rhs)
13
Exhibit 10:
Smallcap100 has had the second best period in
terms of consecutive months of positive returns
Cumulative Return (%)
Smallcap 100
9
Consecutive month of gains (rhs)
8
6
167
Apr'03-Dec'03
111
Mar'09-Sep'09
103
Jun'20-Jun'21
85
Jun'04-Feb'05
67
Nov'20' Jun'21
41
Mar'16- Aug'16
Source: Bloomberg, MOFSL
Source: Bloomberg, MOFSL
5 July 2021
5
 Motilal Oswal Financial Services
India Strategy
Exhibit 11:
Nifty underperformance v/s Midcap 100 on 12M rolling basis at the highest levels since GFC
Difference Nifty 50 Vs Midcap 100 rolling return (%)
50
20
-10
-40
-70
-70
26%
18%
16%
Average: -2%
-30
-31
-35
Source: Capitaline, MOFSL
Exhibit 12:
Nifty underperformance v/s Smallcap 100 on 12M rolling basis at same levels last seen during GFC
50
20
-10
-40
-70
Difference SmallCap 100 Vs Nifty-50 rolling return (%)
Average: -2%
-66
-61
-58
-64
Source: Capitaline, MOFSL
Exhibit 13:
22% of Midcap 100 companies have more than
doubled while 37% are still below the Jan’18 peak
37%
Midcap 100 Perf. Distribution (%)
26%
16%
Exhibit 14:
43% of NSE Smallcap 100 constituents are yet to
cross Jan’18 peak
43%
Smallcap 100 Perf. Distribution (%)
22%
24%
10%
23%
<0
0-50
50-100
>100
<0
0-50
50-100
>100
Source: Bloomberg, MOFSL. Based on current constituents
Source: Bloomberg, MOFSL. Based on current constituents
Market cap contribution by Midcap and Smallcap rises
The recent broad-based rally has led to a sharp increase in market cap
contribution from the Midcap and Smallcap index.
Midcap 100 index market cap now contribute 12.1% to the overall market cap,
up from 9.8% in Mar’20.
Smallcap 100 companies’ market cap as a percentage of the overall market cap
has increased to 3.7% currently, from 2.7% in Mar’20.
5 July 2021
6
 Motilal Oswal Financial Services
India Strategy
The peak contribution for the Midcap100/Smallcap100 index is 17.4%/4% of the
total market cap.
In terms of absolute market cap, the Midcap 100 and Smallcap 100 are at the
highest ever levels of INR28t/INR8.5t.
Exhibit 16:
..however NSE Smallcap 100 market cap
contribution near peak of Dec’17
4.50
4.0
3.7
Exhibit 15:
NSE Midcap100 market cap contribution still well
below the previous peak….
19.0
16.5
14.0
11.5
9.0
9.8
12.1
17.4
4.00
3.50
3.00
2.50
2.7
Source: Capitaline, MOFSL
Source: Capitaline, MOFSL
Exhibit 17:
Mcap of NSE Midcap 100 is up 4x since 2011
Mcap of Midcap 100 (INR t)
22.2
16.7 17.0
6.9
9.0
11.0
15.1
15.8 16.4
20.3
28.0
Exhibit 18:
Mcap of NSE Smallcap 100 is up 6x since 2011
MCap of Smallcap 100 (INR t)
5.6
3.9
1.4
2.3
2.4
3.7
3.8
4.4
6.7
4.8
8.5
Source: Bloomberg, MOFSL. As on 29 Jun’21
Source: Bloomberg, MOFSL. As on 29 Jun’21
Divergence in valuations within the Midcap and Smallcap indices
Nifty Smallcap 100 is now trading at a premium to the Nifty for the first time
since Dec’14. It is trading at a premium of 7% v/s an average discount of 21%.
Nifty Midcap 100 valuations are trading on par with the Nifty 50 and are
comparable with the long-term averages.
However, if one were to remove the loss making companies from both the
indices, then Nifty Mid-cap and Nifty Small-Cap indices are trading at trailing P/E
of 21x and 23x FY21 earnings, at a marginal discount to Nifty.
Valuations however are hiding more than what they are revealing. If one looks
at the trailing 12M valuations for the Midcap 100 and Smallcap 100 indices,
there is a wide divergence between the top quartile and bottom-quartile
companies vs. the median P/E of the index.
We have taken the NSE Midcap 100 and NSE Smallcap 100 universes and broken
down the aggregate into four quartiles based on their trailing 12M PEs. Loss
making companies have been removed from the aggregates. The aggregate
quartile P/E of the most expensive stocks in Midcap 100 / Smallcap 100 trade at
80x/79x, while the least expensive stocks trade at 9.4x/8.5x. This 12-Month
7
5 July 2021
 Motilal Oswal Financial Services
India Strategy
trailing P/E is distorted to an extent by the optically low 1QFY20 earnings due to
stringent lockdown. Historically (as well as on average), the least expensive
aggregate for Midcap100/Smallcap100 has traded at 8.8x/7.6x, while the most
expensive has traded at 50x/56x. The median PE for the Midcap 100 index is
29x.
Exhibit 19:
NSE Smallcap 100 index now trades at premium to Nifty on forward basis…
Nifty 50
30
24
18
12
6
Midcap 100
Smallcap 100
12M fwd PE
Smallcap 100 trades at a
premium to Nifty 1st time
since Oct'14
Source: Bloomberg, MOFSL
Exhibit 20:
Smallcap index discount/premium vs. Nifty valuations
40
20
0
-20
-40
-60
-21%
Small Cap 100 rel to Nifty
Avg. Premium/Discount (%)
12M fwd PE
7%
Source: Bloomberg, MOFSL
Exhibit 21:
However, on a trailing 12M basis, including only profitable companies, Nifty trades at premium to both
Midcap/Smallcap 100
36
28
20
12
4
Trailine 12M Pe ratio
Nifty 50
Smallcap 100
Midcap 100
Source: Bloomberg, MOFSL. Taking only positive earnings companies in index
5 July 2021
8
 Motilal Oswal Financial Services
India Strategy
Exhibit 22:
Wide divergence between high PE / low PE stocks within Midcap 100 Universe leading to rise in overall PE for
companies.
Midcap 100
100
75
50
25
0
Between 2012-17 valuation of the most
expensive quartile increased from 30x to 80x
to drive midcap 100 re-rating from 14x to 30x
Least Expensive quartile
Expensive Quartile
Median PE
Source: Bloomberg, MOFSL. Based on Midcap 100 index. The loss making companies are removed. Index rebalanced every quarter. Trailing
12M PE
Exhibit 23:
…and divergence prevalent even in Smallcap 100 Universe
100
75
50
25
0
Small Cap 100
Least Expensive quartile
Expensive Quartile
Median PE
Valuations for expensive
companies doubled from 40x to
above 80x between 2012-17
Source: Bloomberg, MOFSL. Based on Smallcap 100. The loss making companies are removed. Index rebalanced every quarter. Trailing 12M PE
5 July 2021
9
 Motilal Oswal Financial Services
India Strategy
Midcap 100: Profit pools improving since FY18;
Midcap 100 profit pool has seen a significant improvement since FY18. Based on
a like for like basis for 93 companies which have reported earnings, the profit
pool has nearly doubled from INR 542b in FY18 to INR 1.03 tn in FY21.
The rise is underscored by sharp improvement in profitability of Metals and PSU
Banks. PSU banks and Metals have contributed 54% and 20% of the incremental
profit for FY21 over FY18. More importantly, the loss pool shrunk for NSE
Midcap 100 every year since FY18.
NSE Small-Cap 100 profit pool however has seen a relatively muted 5% PAT
CAGR over FY18-21. For these 81 like for like companies, the loss poll has shrunk
in FY21 YoY.
Exhibit 24:
NSE Midcap 100: Metals and PSU bank have
contributed 74% of the incremental PAT in FY21 over FY18.
Nifty Midcap
100 PAT (INR b)
668
596
357
Profit Making
934
795
542
Loss making
895
772
PAT
1,119
1,033
Exhibit 25:
Nifty Smallcap 100 earnings relatively muted
Nifty Smallcap
100 PAT (INR b)
Profit Making
290
137
126
177
226
173
217
275
211
155
Loss making
PAT
275
254
605
753
-248
-72
-211
-139
-123
-86
-12
-4
-8
-15
-56
-21
Source: Bloomberg, MOFSL. Based on 93 companies which have
declared FY21 results
Source: Bloomberg, MOFSL. Based on 81 companies which have
declared FY21 results
5 July 2021
10
 Motilal Oswal Financial Services
THEMATIC/STRATEGY RESEARCH GALLERY
India Strategy
5 July 2021
11
 Motilal Oswal Financial Services
India Strategy
NOTES
5 July 2021
12
 Motilal Oswal Financial Services
India Strategy
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Analyst ownership of the stock
No
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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.
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This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use
would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities
and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal
Oswal Financial Services Limited(SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of research report in Hong
Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity to which this document relates is
only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these securities, products and services in any jurisdiction
where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research Analysis in
Hong Kong.
For U.S:
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state
laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934
Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by
MOFSL, including the products and services described herein are not available to or intended for U.S. persons. This report is intended for distribution only to "Major Institutional Investors" as
defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This document must not be acted on or relied on
by persons who are not major institutional investors. Any investment or investment activity to which this document relates is only available to major institutional investors and will be engaged in
only with major institutional investors. In reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and
interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a
chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be
executed within the provisions of this chaperoning agreement.
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 Motilal Oswal Financial Services
India Strategy
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. 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.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263; Website
www.motilaloswal.com.
CIN No.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad(West), Mumbai- 400 064. Tel No: 022
7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412. AMFI:
ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579 ;PMS:INP000006712. Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration
No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.:
INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond,
NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. which is a group company of MOFSL. Private Equity is offered
through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL. Research & Advisory services is backed by proper research. Please read the Risk
Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no assurance or guarantee of the returns. Investment in securities market is subject to market risk,
read all the related documents carefully before investing. Details of Compliance Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* 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.
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