India Strategy
Gautam Duggad
Gautam.Duggad@motilaloswal.com
The Eagle Eye
Aanshul Agarawal
Aanshul.Agarawal@motilaloswal.com
Deven Mistry
Deven@motilaloswal.com
March 2024
June 2020
 Motilal Oswal Financial Services
GLOBAL MARKETS
INTIATING COVERAGE REPORTS
Indian market ends with marginal gains in Feb’24;
China outperforms
MSCI US outperforms world markets in the last one
year; India continues to beat EMs
India’s weight in the MSCI EM Index continues to
increase, claiming the second rank
Cello: Greeting the world with Cello!
DreamFolks: Landing gear retracted; charting a
steep trajectory
JSW Infra: Unlocking the PORTal of
opportunities
Happy Forging: Expanding opportunities with
diversification
DOMESTIC MARKETS
PSBs top gainer and Media among the key
laggards in Feb’24
PSUs witness a sharp broad-based rally over the
past two years
About 56% of the Nifty constituents end higher in
Feb’24
Around 45% of the BSE-200 constituents end
higher in Feb’24
MULTI-YEAR HIGHS AND LOWS
CONTENTS
The 10-year yield spread between India and the
US at a multi-year low
Nifty composition: Autos and Public Banks
witness gains in weights, while Private Banks
and Consumer reported a decline in Feb’24
PSBs: Sustained profitability to drive stock
performance
FLOWS AND VOLUMES
FIIs flows turn positive in Feb’24; momentum in
DII inflows continues
Cumulative FII holdings near decadal lows, while
DIIs holding near decadal highs
Average monthly cash and F&O volumes
continue to make new highs
VALUATIONS
The 12-month trailing P/E for the Nifty is at
23.0x; at a 3% premium to its LPA of 22.2x.
Nifty’s 12-month forward P/E has been trading
at 19.5x; at a 4% discount to the LPA of 20.3x.
whereas it is near its LPA on a forward basis.
EY/BY trading below its LPA on a trailing basis;
CHART BOOK | March 2024
2
June 2020
 Motilal Oswal Financial Services
Indian market ends with marginal gains in Feb’24; China outperforms
World equity indices (MoM) in USD terms (%)
9
5
5
5
5
5
MoM change (%)
4
3
1
0
0
-1
CY24YTD performance of global equity indices in USD terms (%)
10
CY24YTD change (%)
7
5
3
3
2
2
0
-2
-2
-4
-6
CHART BOOK | March 2024
3
June 2020
 Motilal Oswal Financial Services
MSCI US outperforms world markets in the last one year; India continues to beat EMs
Performance of the MSCI India index vs. MSCI US, MSCI World, MSCI Emerging Market, and MSCI China Indices, in USD terms
135
MSCI China
MSCI India
MSCI US
MSCI World
MSCI EM
(%)
133
128
126
120
105
107
90
88
75
*Indices rebased to 100
CHART BOOK | March 2024
4
June 2020
 Motilal Oswal Financial Services
PSBs top gainer and Media among the key laggards in Feb’24
Sectoral performance MoM (%): PSBs and Real Estate among the top gainers; weakness in Pvt. Banks and Media continues
10
6
1
0
0
6
6
6
3
3
MoM change (%)
1
-1
-2
-2
-5
Sectoral performance CY24YTD (%): PSBs, RE, and O&G are among the top gainers; whereas Media, Pvt Banks, and Consumer are the
key laggards
21
5
5
16
16
CY24YTD change (%)
13
11
10
6
3
-1
-5
1
-7
-14
Note: (*) represents BSE capital goods index
CHART BOOK | March 2024
5
June 2020
 Motilal Oswal Financial Services
PSUs witness a sharp broad-based rally over the past two years
PSUs’ share in the Indian market cap has recovered from the FY22 lows, rising to a six-year high of ~17% in Feb’24.
After the recent broad-based rally in PSU Universe, the share of combined market cap of the top 10 PSUs has moderated sharply vs. other PSUs.
PSUs’ share in the overall market cap continues to recover from lows
24.6
20.7
18.6
Indian market cap (INRt)
17.9
PSU’s share in the Indian market cap
388
16.3
16.5
138
14.8
146
12.7
110
59
69
94
90
116
199
11.2
260
10.5
254
13.3
17.3
Top 10 PSUs vs. other PSUs’ market cap share (%)
Top 10 PSUs mkt. cap (%)
14.5
14.4
17.6
14.7
20.7
22.7
Other PSUs mkt. cap (%)
21.6
14.0
(PSU Market cap in INR t)
22.2
52
27.4
33.7
67.1
49
69
70
68
66
65
59
60
58
54
55
31
30
32
34
35
41
40
42
48
46
45
51
CHART BOOK | March 2024
6
June 2020
 Motilal Oswal Financial Services
About 56% of the Nifty constituents end higher in Feb’24
Among Nifty constituents, 28 closed higher in Feb’24 MoM and around 24 companies outperformed the benchmark.
About 29 Nifty constituents traded higher in CY24YTD. BPCL, ONGC, and Adani Ports were the top gainers; while Hindalco and UPL
were the key laggards.
Best and worst Nifty performers (MoM) (%)
20
17
17
11
11
11
10
9
9
8
1
-4
-4
-4
-5
-5
-5
-7
-8
-13
-13
Best and worst Nifty performers CY24YTD (%)
34
29
29
25
22
19
19
17
16
16
1
-10
-11
-11
-11
-12
-16
-17
-18
-18
-20
CHART BOOK | March 2024
7
June 2020
 Motilal Oswal Financial Services
Around 45% of the BSE-200 constituents end higher in Feb’24
During the month, 90 companies closed higher, with IOB, Oil India, and Trent gaining the most.
Around 49% of the BSE-200 constituents ended higher in CY24YTD. Oracle Fin., IOB, and IRFC remained the top gainers.
Top gainers from the BSE-200 pack on a MoM basis (%)*
32
28
26
24
22
21
19
19
19
18
18
17
17
16
14
14
14
13
13
13
12
12
12
11
10
10
10
10
10
9
2
Top gainers from the BSE-200 pack in CY24YTD (%)*
82
49
48
47
47
43
39
37
36
34
34
29
29
28
28
27
27
27
27
25
24
24
24
23
23
23
23
23
23
22
3
*List excludes Nifty constituents
CHART BOOK | March 2024
8
June 2020
 Motilal Oswal Financial Services
Around 30% of BSE-200 constituents end lower in Feb’24
During the month, 60 companies closed lower. One97, IRFC, and Kansai Nerolac were among the key laggards.
Around 26% of the BSE-200 companies closed lower in CY24YTD. Zee Ent., One97, and AU Small remained the key laggards in
CY24YTD.
A few key laggards among BSE-200 constituents on a MoM basis (%)*
2
-16
-47
-11 -11 -10 -10 -10
-15 -15 -12 -11 -11 -11 -11
-9
-9
-8
-8
-8
-7
-7
-7
-7
-6
-6
-6
-5
-5
-5
-5
Key laggards among the BSE-200 constituents in CY24YTD (%)*
3
-28
-10 -10
-14 -14 -14 -13 -13 -13 -12 -11 -11 -11 -11 -11
-19 -19 -18 -15 -15
-9
-9
-9
-8
-8
-7
-7
-6
-41 -37
*List excludes Nifty constituents
CHART BOOK | March 2024
9
June 2020
 Motilal Oswal Financial Services
NSE Indices: Valuation snapshot
Mid and Small cap outperformance continues with Nifty Midcap and Nifty Smallcap indices growing 60% YoY and 74% YoY,
respectively, while Nifty-50 grew 27% YoY
Among key Nifty sectoral indices, Energy, Auto, and Metals have been the top performing indices in the last one year.
Nifty-50 has been trading marginally below its LPA; whereas, most sectoral indices have been trading at a premium to their LPA.
Indices
Feb'24 closing
YoY change (%)
EPS (12 months fwd)
P/E (12 months fwd)
P/E (10 yr average)
P/B (12 months fwd)
P/B (10 yr average)
RoE (%)
RoA (%)
Nifty50
21,983
27
976
19.5
20.3
3.2
2.8
16.3
3.5
Nifty Midcap
Nifty
100
Smallcap 100
48,336
60
1811
25.8
20.8
3.6
2.4
13.9
1.2
15,976
74
717
21.5
15.8
3.2
2.1
14.4
5.7
Nifty 500
20,090
38
903
21.8
18.8
3.3
2.7
15.4
2.8
Nifty Auto
20,412
60
879
22.7
18.4
4.2
2.8
18.6
8.9
Nifty BANK Nifty FMCG
46,121
15
3290
13.9
16.8
2.0
2.1
15.1
-
54,016
20
1387
38.3
32.7
9.8
8.6
25.7
25.1
Nifty IT
37,720
27
1337
27.5
20.0
7.3
4.7
26.3
18.7
Nifty Metal Nifty Energy
7,922
50
510
15.0
10.6
1.7
1.2
11.2
3.9
38,838
79
2617
14.8
11.1
2.0
1.3
13.5
8.2
Source: Bloomberg, MOFSL; As on 29
th
Feb’24| LPA: Long period average i.e. 10-year average
CHART BOOK | March 2024
10
June 2020
 Motilal Oswal Financial Services
BSE Indices: Valuation snapshot
BSE Sensex/Midcap/Smallcap indices are up 23%/63%/62% YoY as of Feb’24.
BSE Utilities, PSU, and Capital Goods have been the top performing indices YoY.
Sensex has been trading below its LPA; whereas, most other indices (ex-Banks) have been trading at a premium to their LPA.
S&P
S&P BSE S&P BSE S&P BSE S&P BSE S&P BSE S&P BSE
BSE
BSE250
Sensex
BSE 500
Auto
BANKEX FMCG
IT
Oil & Gas Metal
Midcap Small cap
Index
72,500 39,347
6,023
31,777 46,819 52,457 19,448 38,412 27,665 26,865
23.0
3,484
20.4
18.3
3.1
2.8
15.5
2.6
1.2
62.9
1,550
24.6
22.1
3.7
2.7
14.2
1.3
0.95
62.0
272
21.5
16.8
3.1
2.1
14.5
4.3
0.84
37.7
1,431
21.7
18.6
3.3
2.7
15.3
2.8
1.15
60.2
2,059
22.3
18.7
4.1
2.8
18.3
8.9
0.89
15.0
3,707
14.0
16.0
2.0
2.1
15.0
-
0.82
20.3
534
35.7
31.2
8.1
7.8
22.6
25.2
1.88
30.6
1,348
27.8
19.9
7.7
4.8
27.5
19.8
1.8
63.6
2,869
9.7
9.5
1.5
1.3
15.6
9.0
3.36
41.5
2,181
12.0
10.0
1.8
1.2
15.0
5.0
3.56
S&P BSE
S&P BSE S&P BSE
Capital
Utilities Healthcare
Goods
57,415
69.6
1,529
36.1
24.2
5.9
3.1
16.2
6.9
0.67
5,428
111.6
254
21.0
12.2
2.6
1.4
12.0
-
1.75
35,079
62.4
1,088
31.4
23.8
4.6
3.6
14.5
10.5
0.58
S&P
BSE
PSU
18,327
95.7
1,558
11.7
9.8
1.9
1.3
16.5
2.3
2.63
Indices
Feb'24 closing
YoY change(%)
EPS (12 months fwd)
P/E (12 month fwd)
P/E (10 yr average)
P/B (12 month fwd)
P/B (10 yr average)
RoE (%)
RoA (%)
Dividend Yield (%)
Source: Bloomberg, MOFSL; As on 29
th
Feb’24| LPA: Long period average i.e. 10 years average
CHART BOOK | March 2024
11
June 2020
 Motilal Oswal Financial Services
FIIs flows turn positive in Feb’24 ; momentum in DII inflows continues
FII flows turned marginally positive in Feb’24 with inflows of USD0.5b. Net FII outflow in CY24YTD stood at USD2.7b.
DII flows remained healthy with inflows of USD3.1b during the month. Net DII inflows in CY24YTD stood at USD6.3b.
Monthly institutional flows (USD b)
Net FII(USD b)
6.8
4.7
0.8
1.0
-0.2
1.8 1.9
5.0
6.7
4.1
1.7
2.3
7.0
Net DII (USD b)
5.6
0.5
3.3
3.1
6.1 6.0
2.9
1.1
4.1
2.3
3.7
0.3
0.5
-0.3
3.0
2.4
3.4
1.7 1.6
3.2 3.1
1.3
1.7
-1.6
-3.7
-3.8
-4.9
-5.0
-6.3
-0.6
-3.7
-2.3
-2.7
-3.1
-0.9
-0.8
-0.4
Yearly institutional flows (USD b)
Net FII(USD b)
14.2
7.7
3.8
23.4
Net DII(USD b)
21.4
15.9
6.0
32.2
22.3
14.0
12.1
6.3
-4.6
-17.0
-2.7
-5.0
CHART BOOK | March 2024
12
June 2020
 Motilal Oswal Financial Services
Cumulative FII holdings near decadal lows, while DIIs holding near decadal highs
Quarterly FII holdings turned weak, hitting multiyear lows in Jun’22 (of 18.3%) and continues to hover around the same levels at
18.4% as of Dec’23. DII holdings remained strong and was near its Mar’23 (highs of 17.2%) at 16.8%.
The proportion of FII holdings as a percentage of the free float continues to decline, while it strengthens for DIIs.
FII Flows in Indian markets vs. FII Holdings
24
12
0
-12
-24
Qtrly FII Flows (USDb) - RHS
FIIs holding (%)
23
22
20
19
17
44.9
FII Proportion to free float (%)
FII Proportion of Free Float (%)
18.4
37.4
DII Flows in Indian markets vs. DII Holdings
Qtrly DII Flows (USDb) - RHS
20
10
0
-10
-20
DII holding (%)
DII Proportion to free float (%)
DII Proportion of Free Float (%)
16.8
19
17
14
12
9
34.0
CHART BOOK | March 2024
13
June 2020
 Motilal Oswal Financial Services
India’s weight in the MSCI EM Index continues to increase, claiming the second rank
India’s weight in the MSCI EM index weight increased significantly over the past three years, while China’s weight continued to
drop.
India gained 10pp weight during the last three years to reach ~18%, while China lost 16pp and stood at ~25%.
MSCI EM Index weights (%)
China
India
Other EMs
75
75
68
66
63
59
60
51
50
56
54
57
8
8
7
18
7
18
25
26
28
8
9
9
9
41
9
12
13
18
33
32
41
32
33
25
CHART BOOK | March 2024
14
June 2020
 Motilal Oswal Financial Services
The ‘Magnificent Seven’ continues to dominate the US market
The combined market cap of Alphabet, Apple, Amazon, Meta, Microsoft, NVIDIA, and Tesla has surged over the years.
The Magnificent Seven's combined market cap now accounts for ~30% of the S&P 500's total market cap of USD44.4t (+22pp over
the last decade).
Market cap of Magnificent Seven (Alphabet, Apple, Amazon, Meta, Microsoft, NVIDIA, and Tesla) vs S&P500
Magnificent 7 share in S&P500 market cap (%)
28.0
25.7
22.8
18.5
14.7
11.9
8.2
8.3
12.1
16.1
28.8
29.9
CHART BOOK | March 2024
15
June 2020
 Motilal Oswal Financial Services
Average monthly cash and F&O volumes continue to make new highs
Average cash volumes rose 4% MoM to an all-time high level of INR1,276b in Feb’24. Non-institutional participation accounted for
57% of the total cash volumes, the highest since Jan’23.
The monthly average F&O volumes rose to an all-time high level of INR409t in Feb’24.
1350
1050
750
450
150
Monthly Avg. Cash Volume (INR b)
Non Institution % to Cash Volume (RHS)
76
57
62
48
34
20
480
360
240
120
0
Monthly Avg F&O Volume (INR t)
Cash % to Total Volumes
5.0
0.3
2.5
0.0
-2.5
-5.0
CHART BOOK | March 2024
16
June 2020
 Motilal Oswal Financial Services
The 10-year yield spread between India and the US at a multi-year low
The Indian bond yield closed at 7.1% vs. the US bond yield of 4.3% in Feb’24. The yield spread contracted MoM, but has still been at the lowest
level since Jun’06.
On the currency front, INR appreciated 0.2% MoM against the USD. India’s forex reserves fell USD1b to USD616b in Feb’24.
India 10-year yield
12.0
9.0
6.0
3.0
0.0
0.9
India fiscal tightening,
strong economic growth led by
the global book, and Fed
raising rates
Fed cuts rates to zero
after the GFC
US 10-year yield
Fed raises rates
Fed easing, US-
Sino trade
war, and
COVID-19
GFC
Fed tightening,
geopolitical
uncertainties,
sharp rise in bond
yields
2.8
6.9
6.0
3.9
4.4
Forex Reserves (USD b) (RHS)
90
75
60
45
30
USD:INR
Eurozone crisis, taper tantrum, and
devaluation of the RMB – the taper
tantrum episode in CY13 drove the
INR down sharply to 68 from 55 in
just four months. This was a period
of high inflation and INR
depreciation
The INR had its best run during the CY03-07
global bull-run when GDP and corporate
earnings growth were high and the twin
deficits – CAD and FD – were among the
lowest in two decades
Pre GFC peak
in FX reserves
Low inflation has characterized
the period post CY15. The INR
has been relatively less volatile,
despite several global
headwinds. Forex reverses are
surging
Pandemic impact, geopolitical
tensions led to global volatility,
high liquidity, followed by
quantitative tightening, sharp
currency depreciation, but
resilient economy
800
600
400
200
0
CHART BOOK | March 2024
17
June 2020
 Motilal Oswal Financial Services
Nifty composition: Autos and Public Banks witness gains in weights, while Private Banks
and Consumer reported a decline in Feb’24
The weight of Auto and Public Bank rose 50bp/40bp, whereas Private Banks and Consumer declined 80bp/50bp MoM.
The weight of Technology and Utilities increased 30bp and 20bp MoM, respectively
Weightage in the Nifty (%)
Sector
Automobiles
Banks – Private
Banks – Public
NBFC + Insurance
Capital Goods
Cement
Consumer
Healthcare
Metals
Oil and Gas
Reliance
Telecom
Technology
Utilities
Miscellaneous
Nifty
Dec’04
6.7
4.7
5.8
2.1
4
2.8
7.8
6.3
8.2
27.1
8.3
6.3
14.5
1.9
2
100
Dec’08
2.5
5
5.4
2.3
7.7
1.7
6.5
2.6
4.8
24.5
10.6
11.6
9
13.3
3.3
100
Dec’12
8.8
16.9
4.7
7.9
5.9
4.2
12.3
5
3.8
12.3
7.4
2
11.4
4.5
0.5
100
Dec’20
5.4
24.7
1.8
12.3
2.6
2.2
10.4
3.6
2
12.5
10.7
2
16.3
2.1
2.1
100
Dec’21
5
21.9
2.3
11.4
3
2.4
9.4
3.4
2.9
12.3
10.8
2.1
19.1
2.1
2.6
100
Dec’22
5.3
24.2
2.9
10.6
3.1
1.8
10.3
3.8
2.9
12.1
11
2.5
14
2.5
3.9
100
Dec’23
6.5
28.2
2.6
4.5
4.4
2.1
10.8
4
3
10.5
9.2
2.7
13.6
3.6
3.5
100
Jan’24
6.7
26.2
2.6
4.2
4.3
2.1
10.2
4.3
2.9
11.7
10.2
3.1
14.2
3.8
3.7
100
Feb’24
7.2
25.4
3.0
4.1
4.3
2.0
9.7
4.5
2.8
12.0
10.3
3.0
14.5
4.0
3.7
100
Note: Merger of HDFC Bank and HDFC ltd. resulted in a shift in weightage from NBFCs to Pvt Banks in CY23
CHART BOOK | March 2024
18
June 2020
 Motilal Oswal Financial Services
PSBs: Sustained profitability to drive stock performance
Re-rating has been sharp, but valuations still reasonable
While PSU Banks have delivered a significant outperformance over the past three years and the sector has seen a significant re-
rating, the stock valuations still look reasonable in context to business growth and profitability (~18-19% RoE over FY24-26E).
coverage to register a CAGR of 21% over FY24-26E (boosted by PNB & SBI), thereby reaching INR1.7t by FY26E.
The combined profitability of six PSBs under our coverage will surpass ~INR1t in FY24E. We estimate aggregate earnings of our PSB
We believe that while NIMs may remain range-bound with a slight downward bias, the improvement in opex ratios, scope for
We maintain our OW stance on the sector and roll forward our PTs to FY26. Top picks: SBIN & UNBK.
Report link
further credit cost reduction (barring SBI), and a healthy treasury performance will enable the sector RoA to reach ~1.2% by FY26E.
PSU Bank index has given 91% return in FY24YTD (Apr’23-
Feb’24) vs. 14% for Private Bank index over the similar period
Nifty PSU Bank
Nifty Private Banks
91%
PSBs to report ~25% earnings CAGR over FY23-26E
Top 6 PSB's Earnings (INRb)
1,740
1,483
1,186
912 855
36%
23%
2%
FY22
12%
FY23
14%
336 268 283
(2)
40
(295)(110)
110 317
573
Apr'23-Feb'24
CHART BOOK | March 2024
19
June 2020
 Motilal Oswal Financial Services
3QFY24 Earnings review: Sector-wise performance of MOFSL Universe companies
Sector
(no of companies)
Automobiles (23)
Capital Goods (10)
Cement (11)
Chemicals-Specialty (9)
Consumer (19)
EMS (5)
Financials (49)
Banks-Private (13)
Banks-PSU (6)
Insurance (6)
NBFC - Lending (18)
NBFC - Non Lending (6)
Healthcare (23)
Infrastructure (3)
Logistics (7)
Media (3)
Metals (10)
Oil & Gas (15)
Ex OMCs (12)
Real Estate (10)
Retail (18)
Staffing (3)
Technology (12)
Telecom (4)
Others (18)
MOFSL Universe (252)
Ex Financials (203)
Ex Metals & Oil (227)
Nifty (50)
Sensex (30)
Sales
Dec-23
(INR b)
2,803
820
511
63
792
19
2,655
860
856
632
274
33
764
47
140
45
2,729
7,779
3,520
106
471
104
1,858
614
685
23,003
20,348
12,495
14,268
10,344
Chg. %
QoQ
2.4
7.9
4.9
1.2
-1.2
13.0
3.7
3.5
1.9
5.8
5.1
6.4
0.3
9.9
3.0
-17.9
-0.9
7.0
1.1
6.9
12.7
2.6
1.5
2.7
5.6
3.9
4.0
3.2
2.3
0.8
Chg. %
YoY
19.9
17.3
8.7
-11.3
3.8
39.0
12.9
17.7
6.0
11.5
22.6
40.7
10.3
10.3
22.4
1.2
0.7
-1.0
0.0
5.4
17.5
10.5
2.4
6.4
1.1
5.4
4.5
10.9
6.2
8.1
Var.
Var.
Var.
Var.
Dec-23 Chg. % Chg. %
Dec-23 Chg. % Chg. %
Dec-23 Chg. % Chg. %
over
over
over
over
(INR b) QoQ
YoY
(INR b) QoQ
YoY
(INR b) QoQ
YoY
Exp. %
Exp. %
Exp. %
Exp. %
1.0
387
5.0
44
4.2
276
-0.5
57.5
10.4
223
9.9
59.7
19.4
0.4
92
5.7
18.5
-4.2
81
2
22.7
-2.6
55
0.6
28.4
-4.8
0.2
93
27.2
56
1.0
62
16.4
93.5
0.8
47
14.3
104.8
3.6
1.2
10
-1.1
-21.6
-4.7
9
-5
-27.1
-7.5
7
-5.5
-28.2
-8.9
-2.7
195
-0.4
9
-1.9
192
0.4
10.5
0.6
150
4.7
14.3
4.1
-6.2
2
22.9
21.4
-12.0
2
21
37.3
-8.8
1
16.1
35.6
-6.7
0.4
1,416
1.9
5
1.4
1,085
-4.1
12.7
-2.4
875
2.6
22.3
4.6
-0.6
644
3.9
14.2
-0.2
535
0
17.5
-3.8
420
1.0
22.4
-0.5
-0.3
519
-1.8
-9
3.6
357
-13.3
1.2
-0.1
306
3.8
21.3
17.0
2.5
33
7.6
-4.0
4.3
19
0
18.3
-10.5
18
-4.0
9.3
-9.1
0.8
207
4.6
23
1.1
160
6.1
25.1
-1.1
121
6.2
26.3
-0.9
0.1
14
-2.7
24.5
-8.2
14
-1
27.7
-6.4
11
1.1
29.6
-4.8
-0.2
168
-1.9
13
-2.2
130
-4.6
14.1
-3.1
101
-4.1
16.8
-3.0
1.3
12
7.8
5.7
-1.7
6
9
8.7
-11.0
4
31.7
6.8
-6.8
-2.2
51
5.8
31
0.7
37
14.8
45.1
7.2
29
3.6
37.2
5.6
-0.2
10
-33.3
-14.2
0.2
8
-34
-16.2
16.5
6
-31.7
-0.8
12.6
-0.9
511
20.1
27
20.2
329
37.3
43.1
41.6
230
28.5
73.5
38.3
5.5
929
-18.7
24.3
6.8
640
-26
39.7
11.7
464
-25.7
37.4
13.7
-3.8
690
-3.2
9
-1.8
479
-6.1
10.7
-0.6
344
-4.1
10.3
1.4
-6.8
32
11.5
5.9
-2.7
26
11
5.7
-1.0
22
13.0
10.2
-2.8
-1.6
61
22.6
15
-6.1
37
28.8
6.2
-15.6
27
27.7
7.3
-16.9
-3.4
4
8.5
21.4
-4.9
2
-5
25.0
-27.1
1
-16.0
-11.2 -35.9
1.1
425
2.6
0
4.3
385
2.8
1.0
2.9
284
2.4
-0.2
1.9
-0.6
289
2.3
16.1
-0.2
-11
Loss
Loss
PL
-35
Loss
Loss
Loss
-1.0
102
15.5
-4
-2.4
47
17.2
-23.9
-18.4
49
55.2
-5.0
-1.7
1.7
4,790
-0.4
14.7
3.9
3,342
-4.4
22.3
4.0
2,538
-0.8
28.7
7.8
1.9
3,374
-1.3
19.2
4.9
2,257
-4.5
27.5
7.4
1,663
-2.4
32.4
9.5
0.1
3,351
3.4
10.7
1.0
2,373
-0.8
16.0
-1.4
1,844
5.1
22.8
3.6
-0.3
3,572
1.8
9.9
2.0
2,392
-4.3
9.5
0.4
1,848
0.7
17.3
5.9
-2.3
2,924
3.7
10.7
1.6
1,900
-3.2
8.6
-1.5
1,466
2.7
18.7
4.9
EBITDA
PBT
PAT
Report link
CHART BOOK | March 2024
20
June 2020
 Motilal Oswal Financial Services
NSE500: Earnings Review - BFSI and Auto in charge again; the Metals sector posts healthy
earnings
The Nifty 500 companies delivered strong performance and reported an earnings growth of 25% YoY in 3QFY24.
The earnings growth was again fueled by the healthy earnings performance of the BFSI and Auto sectors, which reported 22% and 59% YoY earnings
growth, respectively. O&G reported healthy 40% YoY earnings growth, fueled by OMC's soaring profitability due to strong marketing margins.
The Nifty 500 aggregate sales/EBITDA/adj. PAT grew 5%/15%/25% YoY to ~INR32.5t/INR6.3t/INR3.4t in 3QFY24.
Report link
Sales rose 5% YoY to INR32.5t
Sales NSE500 (INR t)
27.7
41.1
23.8
29.5
18.3
YoY gr (%)
EBITDA rose 15% YoY to INR6.3t
EBITDA NSE500 (INR t)
29
12.0
11
4.5
0.7
4.5
14
10
3
7
10
YoY gr (%)
30
15
5.1
5.4
4.9
4.9
5.5
5.9
6.4
6.4
6.3
PAT was up 25% YoY to INR3.4t
Adj. PAT NSE 500 (INR t)
YoY gr (%)
50
25
25
24
-2
2.6
2.9
2.3
2.4
7
2.7
19
41
25
EBITDA margin of Nifty 500 (ex-BFSI) expanded 220bp YoY to 15.7%
EBITDA margin NSE500 Ex-BFSI (%)
16.2
15.6
13.4
13.6
11.9
16.4
14.6
16.8
15.7
3.4
3.5
3.4
3.4
CHART BOOK | March 2024
21
June 2020
 Motilal Oswal Financial Services
KEY REPORTS FROM MOFSL’S RESEARCH DESK
CHART BOOK | March 2024
22
June 2020
 Motilal Oswal Financial Services
INITIATING COVERAGE: Cello: Greeting the world with Cello!
Cello World Limited (Cello) is a household brand with presence across categories, such as consumer houseware (FY23 contribution:
66%); writing instruments & stationery (16%); and molded furniture & allied products (18%). The company has over six decades of
experience in scaling up new businesses and carving out leaders among them.
We estimate Cello to outpace industry growth. The company is expected to post a robust revenue/EBITDA/Adj. PAT CAGR of
18%/23%/25% over FY23-FY26. This will be driven by the expansion of both SKUs and distribution reach, coupled with strong
growth in the glassware segment following the commissioning of the new plant in Rajasthan. Cello is currently trading at 35x FY26E
P/E with an RoE / RoCE of 32%/39% in FY26E. We initiate coverage on the stock with a BUY rating and a TP of INR1,100 (premised
on 45x FY26E P/E).
Revenue to record 18% CAGR over FY23-FY26E…
Revenue (INRb)
Revenue mix across verticals %
Consumerware
Writing instruments and stationery
Moulded Furniture & Allied Products
10.5
FY21
13.6
18.0
20.6
24.6
29.2
64
26
11
64
23
12
FY22
66
18
16
FY23
67
17
17
FY24E
66
15
18
FY25E
66
14
20
FY26E
FY22
FY23
FY24E
FY25E
FY26E
FY21
…supported by strong EBITDA growth…
EBITDA (INRb)
Adj. PAT to register 25% CAGR over FY23-FY26E
Adj. PAT (INRb)
5.1
4.2
2.7
3.3
7.8
6.4
3.3
4.2
5.1
1.5
FY23
FY24E
FY25E
FY26E
FY21
2.0
2.8
FY21
FY22
FY22
FY23
FY24E
FY25E
FY26E
CHART BOOK | March 2024
23
June 2020
 Motilal Oswal Financial Services
INITIATING COVERAGE: DreamFolks: Landing gear retracted; charting a steep trajectory
DreamFolks (DFS) is India's leading airport services aggregator and tech platform, connecting lounges and premium airport facilities
with users of bank credit/debit cards. DFS holds a 75%+ volume market share in domestic airport lounges and it is the only player
with 100% coverage of airport lounges. DFS is the go-to partner for banks seeking to provide complimentary access to paid airport
services lounge and this is a highly profitable and asset-light model.
We expect the company to benefit from the rapid growth in the Indian airline industry, driven by competitive fares, rising leisure
travel, new airports, and government push. Further, the increasing adoption of bank card (with lounge access as a key benefit) is
boosting the pay-per-use revenue model of DFS. This should help it deliver a strong 20% revenue/28% PAT CAGR over FY24E-26E,
despite a high base, near-term setbacks due to revised airport charges, and a shift to the spending-based model. We see venturing
into international markets as a lucrative long-term opportunity carrying significant potential value. We initiate coverage on the
stock with a BUY rating at a TP of INR650, implying a 34% potential upside.
Given the strong industry tailwinds, we expect strong sustained growth for DFS over the medium term. We forecast a 29% revenue
CAGR over FY23-26E.
With visibility of good earnings growth over the medium term and strong option value from the expansion plans, we initiate
coverage on DFS with a BUY rating and a TP of INR650 (premised on 30x FY26 P/E, 1.1x FY24-26E PEG), implying a 34% upside
potential.
Expansion of air travel and cards to result
in a massive jump in Indian lounge market
Total Indian Lounge Market (INR'b)
66.8
55.4
38.9
32.2
25.3
18.5
12.5
2.3 4.0
CY22
CY24
CY26
CY28
CY30
41.9
50%
48%
1,056
50%
15% 26%
152
13,303
317
722
163
PAT to register strong 17% FY23-26E
Strong industry growth and increasing
market share to drive strong revenue growth CAGR
Revenue (INR'm)
167% 174%
Growth (%)
16,762
6.1%
PAT (INR'm)
8.6%
5.8%
9.4%
6.2% 6.8%
725
907
1,183
7.1%
PAT Margin (%)
3.7 4.6
CY18
8.2
CY20
2,483
3,670
-71%
2,825
7,733
11,571
FY19 FY20 FY21 FY22 FY23 FY24E FY25E FY26E
-15
FY19 FY20 FY21 FY22 FY23 FY24E FY25E FY26E
-1.4%
CHART BOOK | March 2024
24
June 2020
 Motilal Oswal Financial Services
INITIATING COVERAGE: JSW Infra: Unlocking the PORTal of opportunities
JSW Infrastructure Ltd (JSWINFRA), a subsidiary of the USD23b JSW Group, is one of the leading private sector infrastructure companies in
India. It is engaged in developing and operating seaports and terminals & related infrastructure and providing end-to-end logistic solutions. The
company, through its special purpose vehicles (SPVs), operates nine port concessions in Odisha, Maharashtra, Goa, Tamil Nadu, and Karnataka
with an operational capacity of 170 MTPA, in addition to operations and maintenance (O&M) for 24 MTPA at Fujairah as of Dec’23.
Considering stable growth levers at its existing ports and terminals, a higher share of third-party customers, sticky cargo volume from JSW
Group companies and an expanding portfolio, we expect JSWINFRA to strengthen its market dominance, leading to an 19% volume CAGR over
FY23-26. This should drive a 21% CAGR in revenue and a 25% CAGR in EBITDA. Cash flow generation should remain strong despite acquisitions.
We initiate coverage on the stock with a BUY rating and a TP of INR300 (premised on 18x FY26E EV/EBITDA). We believe that JSWINFRA’s focus
on strategic acquisitions, increasing share of third-party customers, and long-term contracts with JSW Group companies should boost its growth
prospects going ahead.
JSWINFRA has emerged as India’s fastest-growing port
infrastructure company
Cargo handled by JSWINFRA (MMT)
JSWINFRA's share in Overall Cargo (%)
5%
62
FY22
6%
6%
Port handling Capacity of JSWINFRA
Capacity of JSWINFRA (MMT)
3%
30
FY16
3%
38
FY17
3%
32
FY18
3%
35
FY19
3%
34
FY20
4%
46
FY21
93
FY23
77
9MFY24
33
FY16
70
FY17
81
FY18
81
FY19
103
FY20
118
FY21
153
158
170
FY22
FY23
9MFY24
Expect 21%/25% CAGR in revenue/EBITDA over FY23-26, led by
volume growth
Revenue (INR b)
EBITDA (INR b)
37
16
19
45
24
32
57
Cash generation would remain strong
CFO (INR b)
3
3
10
12
7
FCF (INR b)
18
15
16
10
20
14
25
20
32
11
6
11
16
6
23
8
11
(6)
(22)
(34)
FY20
FY21
FY22
FY23
FY24E
FY25E
FY26E
FY19
FY20
FY21
FY22
FY23
FY24E
FY25E
FY26E
FY19
CHART BOOK | March 2024
25
June 2020
 Motilal Oswal Financial Services
INITIATING COVERAGE: Happy forging - Expanding opportunities with diversification
Well poised to tap opportunities in growing industrials and exports market
Happy Forgings (HFL) is a Ludhiana-based company specializing in diversified forging and machining services. With over four decades of industry
experience, it manufactures and delivers top-quality, intricate components. It is ranked as the fourth largest engineering-led manufacturer in
India for complex and safety-critical, heavy forged, and high-precision machined components.
The company is well established within the industries and customer segments it serves, including a) heavy commercial vehicles (contributing to
41% of revenues), b) farm equipment (32%), c) off-highway vehicles (14%) and industrials (13%). Founded in 1979, HFL’s entire operations are
based out of Ludhiana, Punjab, with three vertically integrated manufacturing facilities. HFL is well poised to grow in the coming years, led by
expansion through increased capacities, product diversification, client acquisition, and emerging opportunities in industrials and exports. We
expect 21%/25%/30% CAGR (over FY24E-26E) in standalone revenues/EBITDA/PAT and initiate coverage on the stock with a BUY rating and a TP
of ~INR1,125 (based on 26x FY26E EPS).
Revenue mix % for industrials continues to expand
2
17
44
2
15
40
CV
FE
4
16
36
44
FY23
OHV
Industrials
1
14
15
32
39
FY24E
PV
4
16
13
32
36
FY25E
6
21
12
29
33
FY26E
Share % of exports revenue increasing significantly
Domestic
8
11
12
Exports
20
25
26
92
89
88
80
75
74
38
FY21
43
FY22
FY21
FY22
FY23
FY24E
FY25E
FY26E
Revenue to register a CAGR of ~21% over FY24-26E
47
Revenue (INR m)
39
21
14
5
FY21
FY22
FY23
FY24E
FY25E
FY26E
21
Growth YoY %
PAT expected to register ~30% CAGR by FY26E
Adj PAT (INR m)
65
47
32
8
FY21
FY22
FY23
16
28
Growth YoY %
FY24E
FY25E
FY26E
CHART BOOK | March 2024
26
June 2020
 Motilal Oswal Financial Services
Valuations: Key observations
CHART BOOK | March 2024
27
June 2020
 Motilal Oswal Financial Services
India’s market capitalization-to-GDP ratio at an all-time high as of year-end closing
India’s market capitalization-to-GDP ratio continues to remain strong. The ratio stands at 132% as of FY24YTD, much above its long-
term average of ~80%.
Market capitalization-to-GDP ratio (%)
GFC: Peak of 149% in Dec’07
132
Average of 80% for the period
105
83
83
97
Lowest since
the GFC
103
113
95
90
71
81
64
66
69
79
83
80
56
56
* Data as of Feb’24
CHART BOOK | March 2024
28
June 2020
 Motilal Oswal Financial Services
Valuations: Nifty’s 12-month trailing P/E above its LPA
The 12-month trailing P/E for the Nifty stood at 22.9x, at a 3% premium to its LPA of 22.3x.
At 3.6x, the 12-month trailing P/B has been 18% above its historical average of 3.0x.
12-month trailing Nifty P/E (x)
30.0
25.0
20.0
15.0
10.0
Long-term average: 22.3
22.9
12-month trailing Nifty P/B (x)
3.9
3.3
2.7
2.1
1.5
Long-term average: 3.0x
3.6
CHART BOOK | March 2024
29
June 2020
 Motilal Oswal Financial Services
Valuations: Nifty’s 12-month forward P/E near its LPA
Nifty’s 12-month forward P/E has been trading at 19.5x, at a 4% discount to the LPA of 20.3x.
At 3.2x, the 12-month forward P/B has been trading at a premium of ~15% to the Nifty’s historical average of 2.8x.
12-month forward Nifty P/E (x)
30
25
20
15
10
Long-term average: 20.3x
19.5
12-month forward Nifty P/B (x)
4.0
3.3
2.6
1.9
1.2
Long-term average: 2.8x
3.2
CHART BOOK | March 2024
30
June 2020
 Motilal Oswal Financial Services
The 10-year G-Sec yield stands at 7.1%; EY/BY below its long-term average
India’s 10-year bond yield stood at 7.1%, leading to EY/BY trading below its LPA on a trailing basis; whereas near its LPA on a
forward basis.
Trailing Earnings Yield/G-Sec Yield (x)
1.6
1.3
1.0
0.7
0.4
15-year average: 0.7%
Earnings Yield/G-Sec Yield
0.7
Forward Earnings Yield/G-Sec Yield (x)
1.7
1.4
1.1
0.8
0.5
EY/BY spiked sharply
during the GFC
Earnings yield (12-month forward)/G-Sec yield
It remained below 1x for the last
six years, except for a brief period
during demonetization
15 Year Avg: 0.7
0.7
CHART BOOK | March 2024
31
June 2020
 Motilal Oswal Financial Services
Sectoral valuations: Pvt Banks trading at 5% discount; IT trading at 45% premium to the LPA
Private Banks sector has been trading at a 5% discount to its LPA
P/B (x)
3.5
2.8
2.0
1.3
0.5
Avg (x)
Max (x)
Min (x)
+1SD
-1SD
2.4
3.1
2.8
2.0
1.0
2.3
The IT sector has been trading at 45% premium to its LPA, but it has been trading at a 18% discount to its Dec’21 high
36.0
28.0
20.0
12.0
4.0
18.5
13.9
7.7
P/E (x)
Avg (x)
Max (x)
32.6
23.1
Min (x)
+1SD
-1SD
26.8
CHART BOOK | March 2024
32
June 2020
 Motilal Oswal Financial Services
Sectoral valuations: Metals and O&G trading at a premium
Metals: Valuation at 40% premium to its LPA
4.0
3.0
2.0
1.0
0.0
P/B (x)
Avg (x)
Max (x)
Min (x)
+1SD
-1SD
3.0
1.9
0.9
0.6
1.4
1.9
O&G: Valuation trading at a 19% premium to its LPA
2.5
2.0
1.5
1.0
0.5
0.9
1.3
1.5
P/B (x)
Avg (x)
Max (x)
2.2
1.8
Min (x)
+1SD
-1SD
1.8
CHART BOOK | March 2024
33
June 2020
 Motilal Oswal Financial Services
Sectoral valuations: Auto and Consumer trading at a premium to their LPA
Auto’s valuation at a 7% premium to its LPA
P/E (x)
60.0
45.0
30.0
15.0
0.0
32.4
21.6
6.6
10.8
Avg (x)
Max (x)
Min (x)
53.9
+1SD
-1SD
23.1
Consumer sector’s P/E at a 23% premium to its LPA
P/E (x)
60.0
48.0
36.0
24.0
12.0
36.0
28.4
17.3
Avg (x)
Max (x)
49.3
43.5
Min (x)
+1SD
-1SD
44.1
Investment in securities market are subject to market risks. Read all the related documents carefully before investing
CHART BOOK | March 2024
34
June 2020
 Motilal Oswal Financial Services
Top ideas within the MOFSL Universe
Company
MCap
(USDb)
CMP
(INR)
EPS (INR)
FY24E
58.2
71.2
16.4
93.5
58.9
41.5
47.2
89.0
0.4
12.9
Loss
8.8
27.1
45.1
131.6
50.9
56.1
15.7
14.0
1.6
-3.4
FY25E
66.0
93.3
17.2
121.1
67.5
53.1
44.6
93.8
1.1
13.4
57.7
11.0
46.2
64.9
163.8
65.0
73.1
19.6
40.8
3.1
-0.9
EPS
PE (x)
PB (x)
ROE (%)
CAGR (%)
FY26E FY23-25 FY24E FY25E FY26E FY24E FY25E FY26E FY24E FY25E FY26E
77.1
110.6
18.5
149.7
78.3
64.1
54.6
102.3
2.7
16.6
64.4
13.0
47.4
89.1
199.6
81.4
91.3
24.2
83.6
4.2
0.8
15.0
24.6
6.2
26.5
15.3
24.2
7.5
7.2
153.7
13.2
LP
21.7
32.3
40.6
23.2
26.5
27.6
24.2
143.9
61.1
LP
18.7
10.8
25.0
39.0
27.8
89.9
9.6
21.6
410.5
14.8
27.8
67.0
92.1
44.9
21.9
11.7
12.8
52.6
114.4
89.0
-
16.5
8.3
23.8
30.1
24.3
70.3
10.2
20.5
153.0
14.3
25.5
14.2
7.0
22.1
24.3
20.9
58.2
8.3
18.8
63.8
11.5
22.8
3.3
1.7
7.3
5.7
6.9
23.0
3.9
4.5
7.4
1.9
4.5
2.8
1.4
7.1
5.0
7.0
18.7
3.3
3.8
7.0
1.7
3.9
7.9
6.2
2.2
6.5
1.8
1.1
16.0
5.2
9.2
8.5
2.4
1.2
7.0
4.3
7.1
15.3
2.8
3.3
6.3
1.5
3.4
6.8
5.5
2.0
5.1
1.4
1.0
10.9
4.2
7.2
8.0
18.9
17.4
29.4
14.5
24.6
28.1
40.8
22.4
1.8
14.5
-
14.6
7.8
5.3
43.6
19.8
11.2
49.1
5.3
13.7
-22.1
18.3
19.5
30.4
17.6
28.6
29.4
32.4
20.1
4.7
13.6
15.2
15.9
12.2
7.3
41.8
21.0
12.0
38.1
14.2
21.8
-7.0
18.3
19.1
31.9
19.1
33.7
29.0
33.2
18.9
10.5
15.2
14.7
16.2
11.1
9.3
39.9
21.6
13.5
31.9
24.1
23.6
6.1
Preferred large cap stocks
1,092
ICICI Bank
91.3
772.2
St Bk of India
83.2
409.1
ITC
61.0
3644.0
Larsen & Toubro
60.6
1636.9
HCL Technologies
53.9
3731.9
Titan Company
40.3
455.2
Coal India
33.6
1920.9
M&M
28.3
169.8
Zomato
17.4
190.9
GAIL (India)
14.6
1,471
Cipla
14.4
Preferred midcap/smallcap stocks
589
Indian Hotels
10.1
2,492
Godrej Properties
8.2
2,026
Dalmia Bhar.
4.7
2,881
Angel one
2.9
598
IIFL Finance
2.8
720
PNB Housing
2.3
826
Cello World
2.2
1,607
Sobha
1.9
143
Lemon Tree Hotel
1.3
109
Restaurant Brands
0.6
53.6 45.2 9.2
53.9 52.6 7.0
31.2 22.7 2.3
17.6 14.4 8.4
9.2
7.3
2.1
9.9
7.9
1.2
42.0 34.1 25.8
39.3 19.2 6.0
46.6 34.3 11.4
-
134.7 7.9
Note: LP = Loss to profit; Largecap, Midcap and Smallcap Stocks listed above are as per SEBI Categorization
CHART BOOK | March 2024
35
June 2020
 Motilal Oswal Financial Services
NOTES
CHART BOOK | March 2024
36
June 2020
 Motilal Oswal Financial Services
Quant Research & India Strategy Gallery
CHART BOOK | March 2024
37
June 2020
 Motilal Oswal Financial Services
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
> - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall be within following 30 days take appropriate measures to make the
recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the Regulations, is engaged in the business of providing Stock broking
services, Depository participant services & distribution of various financial products. MOFSL is a listed public company, the details in respect of which are available on
www.motilaloswal.com.
MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL)
is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX)
and National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National Securities Depository Limited (NSDL),NERL, COMRIS and CCRL
and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products. Details of associate entities of Motilal
Oswal Financial Services Limited are available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and buy or sell the securities or derivatives thereof of companies mentioned
herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to
such company(ies) or may have any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the
analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should be aware that MOFSL may have a potential conflict of interest that may
affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services
Limited are available on the website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental research and Technical Research. Proprietary trading desk of MOFSL or
its associates maintains arm’s length distance with Research Team as all the activities are segregated from MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have
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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
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For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities and Futures Commission (SFC) pursuant to the Securities
and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal Oswal Securities (SEBI Reg. No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong)
Private Limited for distribution of research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity to which this document relates is only
available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from
registration. The Indian Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition MOFSL is not a
registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific
exemption under the Acts, any brokerage and investment services provided by MOFSL, including the products and services described herein are not available to or intended for U.S. persons. This report is intended for distribution only to "Major
Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This document must not be acted on or relied on by persons who are not major
institutional investors. Any investment or investment activity to which this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration
provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional Investors based
in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the
provisions of this chaperoning agreement.
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June 2020
 Motilal Oswal Financial Services
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co. Reg. NO. 201129401Z) which is a holder of a capital markets services license and an exempt financial adviser in
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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
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not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and inform MOCMSPL.
Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
********************************************************************************************************************************
The associates of MOFSL may have:
financial interest in the subject company
actual/beneficial ownership of 1% or more securities in the subject company at the end of the month immediately preceding the date of publication of the Research Report or date of the public appearance.
received compensation/other benefits from the subject company in the past 12 months
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations
made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even though there might exist an inherent conflict of interest in
some of the stocks mentioned in the research report.
acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an
advisor or lender/borrower to such company(ies)
received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
Served subject company as its clients during twelve months preceding the date of distribution of the research report.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not consider demat accounts
which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will
be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and may not be altered in any way,
transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of MOFSL. The report is based on the facts, figures and
information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature. The information is obtained from publicly available media or other sources
believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such
information and opinions are subject to change without notice. The report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or
subscribe for securities or other financial instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat
recipients as customers by virtue of their receiving this report.
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 Motilal Oswal Financial Services
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media
or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for
securities or other financial instruments. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The
securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient.
This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an
investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or
views expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade securities - involve substantial risk and are not suitable
for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in
this document is provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the
right to make modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from time to time, effect or have effected an
own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to perform investment banking or other services for, or solicit investment banking or other business
from, any company referred to in this report. Each of these entities functions as a separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been
prepared on the basis of information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the
views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, copied, in whole or in part, for
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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
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any such misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and
delays.
This report is meant for the clients of Motilal Oswal only.
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 - 71934200 / 71934263; www.motilaloswal.com. Correspondence Address: Palm Spring
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Registration details of group entities.: Motilal Oswal Financial Services Ltd. (MOFSL): INZ000158836 (BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412 . AMFI: ARN .: 146822. IRDA
Corporate Agent – CA0579. Motilal Oswal Financial Services Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Insurance, Bond, NCDs and IPO products.
Customer having any query/feedback/ clarification may write to query@motilaloswal.com. In case of grievances for any of the services rendered by Motilal Oswal Financial Services Limited (MOFSL) write to
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40
June 2020