10 June 2024
India Strategy
BSE Sensex: 76,693
Nifty-50: 23,290
Corporate profit to GDP – Rebounds to a 15-year high in FY24!
Analyzing growth across cycles
Corporate India’s earnings strength has come to the fore even as markets have been
preoccupied with elections and politics over the last few months. We have been
consistently emphasizing the excellent macro-micro fundamentals of India in our
recent notes with strong GDP growth, a sound fiscal position, a stable currency, and
healthy corporate earnings. In this note, we discuss in detail the 15-year high
corporate profit to GDP ratio clocked by India’s listed corporate sector.
Construing the corporate profit to GDP ratio during the last two decades
Profits have grown at a faster pace
in the last four years
Nifty-500 PAT (INRb)
2020 2021 2022 2023 2024
In 2024, the corporate profit to GDP ratio for the Nifty-500 Universe and listed
India Inc. swelled to 4.8% and 5.2%, respectively, scaling a 15-year high.
The
YoY improvement was led by the BFSI, Oil & Gas, and Automobile sectors, which
contributed 95% of the total improvement. Conversely, Metals, Technology, and
Chemicals contributed adversely. The 0.8% YoY improvement in the 2024 profit
to GDP ratio for Nifty-500 was propelled by the BFSI (0.3% increase), Oil & Gas
(0.3% rise), and Automobile (0.2% increase) sectors.
The corporate profit for the Nifty-500 universe grew at a faster pace of 30% YoY in
FY24, after moderating to 9.3% YoY in FY23 (+52% YoY in FY22). We note that the
Nominal GDP grew 9.6% YoY, slower than the corporate profit growth in FY24
and 14.2% YoY GDP growth in FY23 (vs. 18.9% recorded in FY22).
India's corporate profit (Listed + Unlisted) to GDP ratio dropped materially to
1.9% from 7.9% over 2008-20. For the Nifty-500 Universe, the ratio contracted
to 2.1% (at a two-decade low) from 5.2% over the same period.
Notably, the ratio had been contracting since 2010, barring 2017 when profits of
global cyclicals (such as Metals and O&G) had bounced back and losses of PSU
Banks had reduced from the preceding year.
In this report, we analyze ‘corporate earnings as a percentage of GDP’ in greater
detail. We use the Nifty-500 as a proxy for corporate earnings, since the index
accounts for 91% to India’s market cap.
We segregate the 2003-24 period into three phases: 1) 2003-08, 2) 2008-20, and
3) 2020-24.
During Phase 1 (2003-08),
the corporate profit to GDP ratio almost doubled to 5.2%
from 2.7% over the same period, with Nifty-500 profits surging 30%, which was
twice the pace of underlying GDP growth (at 14.5% CAGR) over the same period.
During Phase 2 (2008-20),
the downturn in domestic corporate earnings
resulted in a compression in the Nifty-500 profit to GDP ratio to 2.1% from 5.2%.
Notwithstanding the pandemic-led gloom and weak economic recovery during
Phase 3 (2020-24),
corporate profits have recovered sharply from the lows.
Consequently, the ratio rebounded to a 15-year high of 4.8% (long-period
average of 3.7%) in 2024 as profits grew at a faster pace (of 30% YoY).
GDP (INR b)
The chronicles of corporate profit to GDP ratio
2020 2021 2022 2023 2024
Gautam Duggad – Research Analyst
(Gautam.Duggad@MotilalOswal.com)
Research Analyst: Deven Mistry
(Deven@MotilalOswal.com) |
Aanshul Agarawal
(Aanshul.Agarawal@Motilaloswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
India Strategy | Corporate profit to GDP
Profit pool of PSU corporates grew
at a faster pace over Phase 3 (INR b)
PSU profits surge 5x over Phase 3
Private
PSU
MNC
49 135 503 548
656
804
2003 2008 2020 2022 2023 2024
We analyze India’s corporate profit to GDP distribution over the last two decades
across three categories: a) PSU Corporate, b) MNCs, and c) Private Corporate.
PSU corporate’s profit to GDP ratio decreased to 0.5% in 2020 from 2.1% in
2008, given the significant value migration from public to private sectors such as
Banking, Telecom, and Airlines. However, the sectors recovered to 1.8% in 2024.
The private corporate sector’s profit to GDP ratio improved to 2.8% in 2008
from a meager 0.8% in 2003. However, the ratio contracted to 1.4% in 2020
before rebounding to 2.7% in 2024.
The Indian PSUs have made a successful comeback fueled by a sharp 5x jump in
PSU profits, reaching INR5.2t from INR1t over FY20-24. More than 36% of these
incremental profits came from PSU banks alone. The profits of PSU banks
exceeded INR1.5t in FY24, after surpassing the milestone of INR1t in FY23.
We expect the ratio to sustain going forward. India remains in a very good
shape, almost enjoying a mini-Goldilocks moment with excellent macros (Real
GDP growth of 8.2% in FY24 aided by ~7% growth in FY23, inflation at ~5%, both
current account and fiscal deficits well within the tolerance band, a stable
currency, et al.), and healthy corporate earnings (Nifty ended FY24 with 24% EPS
growth and we expect a CAGR of ~15% over FY24-26).
For Nifty-50, we are modeling ~13% YoY profit growth for FY25E. We forecast
FY25 earnings growth to be driven by BFSI, Oil & Gas, Metals and Technology,
which are likely to contribute 75% to the incremental earnings of Nifty-50.
Profit to GDP (%)
2020 2021 2022 2023 2024 2003-2008
0.46 0.98 1.15 1.54 1.79
1.2
0.13 0.39 0.44 0.50 0.64
1.5
0.01 0.19 0.30 0.41 0.51
1.1
0.05 0.05 0.04 0.19 0.19
2.5
0.26 0.34 0.35 0.43 0.44
1.2
0.01 0.01 0.01 0.01 0.01
11.9
0.36 0.66 0.77 0.51 0.80
1.1
0.41 0.45 0.45 0.42 0.41
3.2
0.08 0.06 0.11 0.18 0.34
2.7
0.17 0.36 0.68 0.35 0.32
8.6
0.16 0.20 0.22 0.22 0.25
1.1
0.24 0.21 0.20 0.21 0.20
1.2
0.13 0.18 0.16 0.15 0.17
2.0
0.08 0.11 0.11 0.13 0.15
3.2
0.09 0.10 0.11 0.07 0.08
10.9
0.05 0.03 0.05 0.08 0.07
2.9
0.02 0.00 0.01 0.03 0.07
1.8
0.11 0.09 0.11 0.11 0.06
6.8
0.03 0.02 0.04 0.05 0.04
1.1
0.01 0.02 0.02 0.03 0.03
40.1
0.02 0.01 0.02 0.02 0.02
3.2
0.02 0.02 0.02 0.01 0.01
3.4
0.01 0.01 0.01 0.01 0.01
1.7
-0.02 0.00
0.04
-0.01
0.00
68.2
0.01
-0.02
0.01 0.00 0.00
1.6
-0.27 -0.18 -0.07 -0.07 -0.06
-21.7
2.1
3.3
4.2
4.0
4.8
1.9
Change (x)
2008-2020
2020-2024
0.5
3.9
0.7
5.0
0.0
51.3
0.9
4.1
1.6
1.7
1.3
1.3
0.3
2.2
1.2
1.0
0.4
4.2
0.2
1.8
0.5
1.6
1.2
0.9
0.9
1.3
0.3
1.9
0.4
0.9
0.5
1.5
1.4
2.9
1.5
0.5
4.7
1.4
0.1
3.3
1.0
1.3
1.2
0.8
0.7
0.7
-19.8
0.0
1.5
0.0
-1.9
0.2
0.4
2.2
Expect the corporate profit to GDP ratio to sustain
Exhibit 1: Sectoral corporate profit to GDP ratio for Nifty-500 (%) – Private Banks and NBFCs at all-time high levels
Sector
BFSI
Banks - Private
Banks - Public
Insurance
NBFCs
NBFCs - AMC
Oil & Gas
Technology
Automobiles
Metals
Utilities
Consumer
Healthcare
Capital Goods
Cement
Misc
Logistics
Chemicals
Retail
Real Estate
Infrastructure
Consumer Durables
Media
E-Commerce
Textiles
Telecom
Nifty-500
2003
0.68
0.13
0.39
0.02
0.14
0.00
1.07
0.10
0.08
0.11
0.25
0.17
0.07
0.08
0.02
0.03
0.01
0.01
0.01
0.00
0.00
0.00
0.01
0.00
0.00
-0.01
2.7
2008
0.85
0.19
0.44
0.05
0.17
0.01
1.19
0.33
0.22
0.90
0.29
0.20
0.14
0.27
0.20
0.10
0.02
0.08
0.01
0.18
0.02
0.01
0.01
0.00
0.01
0.14
5.2
2023-2024
1.2
1.3
1.2
1.0
1.0
1.3
1.6
1.0
1.9
0.9
1.1
1.0
1.1
1.2
1.2
1.0
2.2
0.5
1.0
1.2
1.1
1.1
1.1
-0.1
0.3
0.9
1.2
Exhibit data are sourced from Capitaline, the RBI, companies, and MOFSL database based on current Nifty-500 constituents.
June 2024
2
 Motilal Oswal Financial Services
India Strategy | Corporate profit to GDP
Insightful trends
Exhibit 2: Nifty-500 – the corporate profit to GDP ratio climbs in 2024
5.2
4.6
3.4
3.7
3.8
4.0
4.7
4.7
4.1
3.8
3.7
4.8
4.2
3.2
Average: 3.7%
2.8
3.0
3.3
2.7
2.7
4.0
2.7
2.1
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Exhibit 3: Contrast between GDP growth and corporate earnings growth
GDP (INR b)
Nifty-500 PAT (INR b)
Exhibit 4: Contributors to the change in the corporate profit to GDP ratio (FY23–24)
0.0
0.0
0.0 0.0 0.0 0.0
0.0
0.0 0.0 0.0
0.1 0.1 0.0
0.2
0.0 0.0
0.0
0.0 0.0 0.0
0.0 0.0
0.0 0.1
0.3
4.8
4.0
June 2024
3
 Motilal Oswal Financial Services
India Strategy | Corporate profit to GDP
Corporate profit to GDP scales a 15-year high in 2024
In 2024, the corporate profit to GDP ratio for the Nifty-500 Universe and listed
India Inc. swelled to 4.8% and 5.2%, respectively, scaling a 15-year high. The YoY
improvement was led by the BFSI, Oil & Gas, and Automobile sectors, which
contributed 95% of the total improvement. Conversely, Metals, Technology, and
Chemicals contributed adversely. The 0.8% YoY improvement in the 2024 profit
to GDP ratio for Nifty-500 was propelled by the BFSI (0.3% increase), Oil & Gas
(0.3% rise), and Automobile (0.2% increase) sectors.
The corporate profit for the Nifty-500 universe grew at a faster pace of 30% YoY in
FY24, after moderating to 9.3% YoY in FY23 (+52% YoY in FY22). We note that the
Nominal GDP grew 9.6% YoY, slower than the corporate profit growth in FY24
and 14.2% YoY GDP growth in FY23 (vs. 18.9% recorded in FY22).
India's corporate profit (Listed + Unlisted) to GDP ratio dropped materially to
1.9% from 7.9% over 2008-20. For the Nifty-500 Universe, the ratio contracted
to 2.1% (at a two-decade low) from 5.2% over the same period.
Exhibit 5: India Inc. (Listed/Unlisted) – corporate profit to GDP ratio trend
3.0
4.8
5.5 6.4
7.3
7.9
5.6 6.6 6.4 4.8 4.3 4.3 3.5 3.0 3.5 2.4 2.7
1.9
4.5
6.4
6.0
5.2
Un-listed universe profit to GDP (%)
Total profit to GDP (%)
Listed universe profit to GDP (%)
2.0
1.7
1.3 0.9
1.2
0.2
0.3 0.6
0.6
1.2
2.0 1.7
0.7
1.3
1.6
2.1
0.5
2.5
3.2
4.2 4.3
5.3
6.2
5.3 5.5 4.6
4.4
4.0 3.7
0.6
0.4 0.4
3.0 2.4 2.8
2.0 2.2
0.2
3.3
1.7
4.4
4.3
5.2
Note: Corporate profit compiled from Capitaline for available listed and unlisted companies; FY24 earnings from unlisted companies are yet to
be available.
Exhibit 6: Nifty-500 – corporate profit to GDP ratio climbs in 2024
5.2
4.6
3.7
3.4
3.8
4.0
4.7
4.7
4.1
3.8
3.7
3.2
2.8
3.0
2.7
2.7
3.3
4.8
4.2
4.0
2.7
Average: 3.7%
2.1
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
June 2024
4
 Motilal Oswal Financial Services
India Strategy | Corporate profit to GDP
Exhibit 7: Contributors to the change in the corporate profit to GDP ratio (FY23–24)
0.0 0.0
0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.1
0.3
0.0 0.0 0.0
0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.2 0.1
4.8
4.0
Exhibit 8: Nifty-500 profits expand 30% YoY and clock 34% four-year CAGR in 2024
Sector
Automobiles
BFSI
Banks - Private
Banks - Public
Insurance
NBFCs
NBFCs - AMC
Capital Goods
Cement
Chemicals
Consumer
Consumer Durables
E-Commerce
Healthcare
Infrastructure
Logistics
Media
Metals
Oil & Gas
Real Estate
Retail
Technology
Telecom
Textiles
Utilities
Others
Nifty-500
PAT (INR b)
2023
2024
483
1,013
4,152
5,300
1,343
1,889
1,113
1,519
502
558
1,168
1,296
26
38
358
454
186
239
305
168
555
597
34
39
-23
3
402
503
49
59
83
203
16
19
937
934
1,371
2,364
77
101
121
132
1,141
1,209
-185
-183
4
1
602
745
207
218
10,877
14,118
Change
(x)
YoY (%)
2.1
110
1.3
28
1.4
41
1.4
36
1.1
11
1.1
11
1.5
48
1.3
27
1.3
29
0.5
-45
1.1
8
1.2
16
LP
LP
1.3
25
1.2
21
2.4
145
1.2
18
1.0
0
1.7
72
1.3
31
1.1
9
1.1
6
Loss
Loss
0.4
-62
1.2
24
1.0
5
1.3
30
Profit to GDP (%)
2023
2024
0.2
0.3
1.5
1.8
0.5
0.6
0.4
0.5
0.2
0.2
0.4
0.4
0.0
0.0
0.1
0.2
0.1
0.1
0.1
0.1
0.2
0.2
0.0
0.0
0.0
0.0
0.1
0.2
0.0
0.0
0.0
0.1
0.0
0.0
0.3
0.3
0.5
0.8
0.0
0.0
0.0
0.0
0.4
0.4
-0.1
-0.1
0.0
0.0
0.2
0.3
0.1
0.1
4.0
4.8
June 2024
5
 Motilal Oswal Financial Services
India Strategy | Corporate profit to GDP
Exhibit 9: Stocks with positive contribution to change
Company
IOCL
Tata Motors
BPCL
HPCL
Axis Bank
HDFC Bank
ONGC
Adani Power
Interglobe Aviat
ICICI Bank
Coal India
SBI
PNB
Maruti Suzuki
Union Bank
Sector
Oil & Gas
Automobiles
Oil & Gas
Oil & Gas
Banks - Private
Banks - Private
Oil & Gas
Utilities
Logistics
Banks - Private
Metals
Banks - Public
Banks - Public
Automobiles
Banks - Public
Exhibit 10: Stocks with negative contribution to change
Sector
Metals
NBFCs
Metals
Chemicals
Metals
NBFCs
Oil & Gas
Oil & Gas
Technology
Capital Goods
Consumer
Chemicals
NBFCs
Cement
Healthcare
Contributors to change (FY23-24)
pp
%
-0.05
-0.04
-0.02
-0.02
-0.01
-0.01
-0.01
-0.01
-0.01
-0.01
-0.01
-0.01
-0.01
-0.01
-0.01
-6.4
-5.7
-3.3
-2.3
-1.7
-1.6
-1.6
-1.5
-1.3
-1.1
-1.1
-1.0
-0.9
-0.8
-0.8
Contributors to change (FY23-24)
pp
%
Company
0.10
0.10
0.08
0.08
0.05
0.05
0.04
0.03
0.03
0.02
0.02
0.02
0.02
0.02
0.02
14.1
13.1
11.2
10.8
6.6
6.2
4.7
4.1
3.9
3.2
3.0
2.8
2.5
2.0
2.0
Tata Steel
Piramal Enterp.
Vedanta
UPL
Hindustan Zinc
IDFC
Reliance Inds
Oil India
Tech Mahindra
Suzlon Energy
Godrej Consumer
Tata Chemicals
Aditya Birla Cap
Grasim Inds
Glenmark Pharma
As we can infer from Exhibit 11, Nifty-500 profits have remained rangebound at
INR4-5t over FY14-20, while the same jumped sharply to INR10.9t in 2023 and
further to INR14.1t in 2024.
Notably, the corporate profit CAGR of 22.7% was much higher than the GDP
CAGR of 9.3% over 2019-24. During 2020–24 too, the corporate profit CAGR of
34.5% was significantly higher than the GDP CAGR of 10.1%.
Exhibit 11: Contrast between GDP growth and corporate earnings growth
GDP (INRb)
Nifty 500 PAT (INRb)
June 2024
6
 Motilal Oswal Financial Services
India Strategy | Corporate profit to GDP
The revenue CAGR of Nifty-500 stood at 12.1% over 2020-24, primarily
contributed by global commodities and automobiles.
However, revenue CAGR moderated to 9.7% over 2019-24, which was attributed
to the combination of a correction in commodity prices and some softening in
revenue growth in the consumer-oriented sectors.
Exhibit 12: Trend in Nifty-500 sales (INR b)
Sales (INR b)
Corporate margins have experienced acute volatility since the onset of the
pandemic. Post-clocking multi-year highs in FY22, both operating and profit
margins expanded 290bp and 170bp YoY, respectively, for Nifty-500 Universe in
FY24. The spike was fueled by a moderation in commodity prices.
Exhibit 13: Nifty-500 EBITDA margin, ex-Financials (%)
EBIDTA Margin (%)
Exhibit 14: Nifty-500 PAT margin, ex-Financials (%)
PAT Margin (%)
June 2024
7
 Motilal Oswal Financial Services
India Strategy | Corporate profit to GDP
PSU profits surge 5x over Phase 3
We analyze India’s corporate profit to GDP distribution over the last two decades
across three categories: a) PSU Corporate, b) MNCs, and c) Private Corporate.
PSU corporate’s profit to GDP ratio decreased to 0.5% in 2020 from 2.1% in
2008, given the significant value migration from public to private sectors such as
Banking, Telecom, and Airlines. This occurred even as PSU-heavy sectors, such as
Oil & Gas and Utilities, underperformed in terms of profit growth compared to the
underlying GDP growth. However, the sectors recovered to 1.8% in 2024.
The private corporate sector's profit to GDP ratio improved to 2.8% in 2008 from a
meager 0.8% in 2003. However, the ratio contracted to 1.4% in 2020 before
rebounding to 2.7% in 2024.
The Indian PSUs have made a successful comeback fueled by a sharp 5x jump in
PSU profits, reaching INR5.2t from INR1t over FY20-24. More than 36% of these
incremental profits came from PSU banks alone. The profits of PSU banks exceeded
INR1.5t in FY24, after surpassing the milestone of INR1t in FY23.
Exhibit 15: Corporate profit to GDP (%) – by business group
Private
0.2
0.2
0.2
0.2
0.3
PSU
0.2
1.4
MNC
0.2
1.2
0.2
0.7
0.2
0.2
0.5
0.2
0.6
0.2
0.5
0.2
1.1
0.2
1.4
0.2
1.4
0.3
1.8
0.3
2.1
0.2
0.3
2.0
0.3
1.8
0.2
1.7
0.2
1.6
1.7
2.0
2.0
2.0
2.1
1.8
0.8
0.8
1.2
1.5
1.6
2.2
2.8
2.0
2.4
2.5
2.1
1.9
2.1
1.8
1.9
2.0
2.0
1.8
1.4
2.0
2.6
2.4
2.7
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Exhibit 16: Profit pool of PSU corporates has grown at a faster pace over FY20-24
Private
49
60
73
89
PSU
MNC
119 135 134 171 207 218 233 200
264
312 377 395 445 503 442 548 656
804
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
June 2024
8
 Motilal Oswal Financial Services
India Strategy | Corporate profit to GDP
Corporate profit to GDP ratio – analyzing growth across cycles
We segregate the 2003–24 period into three phases: 1) 2003-08, 2) 2008-20,
and 3) 2020-24.
Phase 1: Corporate profit to GDP almost doubles…
The corporate profit to GDP ratio almost doubled to 5.2% from 2.7% over the same
period, with Nifty-500 profits surging 30%, which was twice the pace of underlying
GDP growth (at 14.5% CAGR) over the same period.
This surge was propelled by the export-, investment-, and capex-oriented
sectors. During 2003–08, the global economy was growing at a faster rate,
supporting the export-oriented players. Capacity investments across sectors
were also significant as the investment cycle took-off steadily.
Of the 2.5% improvement in the corporate profit to GDP ratio over this period,
1.7% was contributed by Metals, Technology, Capital Goods, Cement, Real
Estate, and BFSI.
The Technology sector benefited from global growth and the inflection point in
Indian IT, when the sector built scale and took rapid strides.
The Top 5 contributors to profit delta during this phase were RIL, Tata Steel,
SAIL, DLF, and Bharti Airtel.
Exhibit 17: Contributors to the rise in corporate profit to GDP (Phase 1)
0.1 0.1 0.0
0.0
0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
0.0
0.0
0.0
0.1
0.1
0.1 0.1
0.2
5.2
0.2 0.2 0.2
0.8
0.2
2.7
Exhibit 18: Stocks with positive contribution to change
Company
Reliance Inds.
Tata Steel
SAIL
DLF
Bharti Airtel
TCS
Coal India
Hindustan Zinc
Infosys
NMDC
Grasim Inds
MRPL
BHEL
JSW Steel
Wipro
Exhibit 19: Stocks with negative contribution to change
Sector
Oil & Gas
Telecom
Oil & Gas
Consumer
Oil & Gas
Utilities
NBFCs
Oil & Gas
NBFCs
Oil & Gas
Banks - Private
Automobiles
Healthcare
NBFCs
Retail
Contributors to change (FY03-08)
pp
%
-0.10
-0.03
-0.03
-0.03
-0.03
-0.02
-0.02
-0.01
-0.01
-0.01
-0.01
-0.01
-0.01
-0.01
-0.01
-4.2
-1.3
-1.3
-1.2
-1.1
-1.0
-0.9
-0.6
-0.4
-0.4
-0.3
-0.2
-0.2
-0.2
-0.2
Contributors to change (FY03-08)
Sector
pp
%
Company
IOCL
Oil & Gas
0.24
9.7
Tata Comm
Metals
0.21
8.6
HPCL
Metals
0.17
7.1
HUL
Real Estate
0.16
6.3
BPCL
Telecom
0.14
5.6
NLC India
Technology
0.10
4.2
PFC
Metals
0.10
4.0
ONGC
Metals
0.08
3.4
Bajaj Holdings
Technology
0.06
2.3
GAIL
Metals
0.05
2.2
J&K Bank
Cement
0.05
1.9
TVS Motor
Oil & Gas
0.04
1.7
Dr Reddy's Labs
Capital Goods
0.04
1.6
REC
Metals
0.04
1.5
Vaibhav Global
Technology
0.03
1.4
June 2024
9
 Motilal Oswal Financial Services
India Strategy | Corporate profit to GDP
Export-, investment-, and capex-oriented sectors drive the ratio in Phase 1
Exhibit 20: Nifty-500 earnings expand at 30% CAGR over 2003–08
Sector
Automobiles
BFSI
Banks - Private
Banks - Public
Insurance
NBFCs
NBFCs - AMC
Capital Goods
Cement
Chemicals
Consumer
Consumer Durables
E-Commerce
Healthcare
Infrastructure
Logistics
Media
Metals
Oil & Gas
Real Estate
Retail
Technology
Telecom
Textiles
Utilities
Others
Nifty-500
PAT (INR b)
2003
2008
20
106
170
418
31
93
98
214
5
25
36
82
0
4
21
133
5
100
3
37
42
100
1
6
0
1
18
69
1
8
2
8
2
7
26
443
266
583
1
87
1
3
26
163
-2
71
1
4
63
140
9
49
677
2,536
Change
(x)
CAGR (%)
5.4
40
2.5
20
3.0
24
2.2
17
4.8
37
2.3
18
23.4
88
6.4
45
21.4
84
13.4
68
2.4
19
6.7
46
134.0
166
3.9
32
6.3
45
3.6
29
3.3
27
16.9
76
2.2
17
78.9
140
2.3
18
6.4
45
LP
LP
3.2
26
2.2
17
5.7
41
3.7
30
Profit to GDP (%)
2003
2008
0.1
0.2
0.7
0.9
0.1
0.2
0.4
0.4
0.0
0.1
0.1
0.2
0.0
0.0
0.1
0.3
0.0
0.2
0.0
0.1
0.2
0.2
0.0
0.0
0.0
0.0
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.9
1.1
1.2
0.0
0.2
0.0
0.0
0.1
0.3
0.0
0.1
0.0
0.0
0.3
0.3
0.0
0.1
2.7
5.2
June 2024
10
 Motilal Oswal Financial Services
India Strategy | Corporate profit to GDP
…and more than halved over Phase 2
During 2008–20, the downturn in domestic corporate earnings resulted in a
compression in the Nifty-500 profit to GDP ratio to 2.1% from 5.2%.
Similar to Phase 1, the movement in the ratio over Phase 2 was led by certain
sectors –
86% of the decline was attributed to Oil & Gas (28%), Metals (24%),
PSU Banks (14%), Telecom (14%), and Capital Goods (6%).
NBFC, Technology, Chemicals, Consumer, Retail, and Logistics were the only
sectors that have seen an improvement in the ratio during Phase 2.
The PSU Banks
had been hit by rising NPAs (especially in corporate-oriented
banks), higher provisions, higher slippages, and lower loan growth that led to a
significant deterioration in profitability and return ratios.
The Metals sector
had seen significant swings in profitability since 2008. It
declined to 0.1% in 2015 from 0.9% in 2008, and bottomed out in 2017. The
fortunes of sectoral profitability are inextricably linked to underlying commodity
prices and have swung in line with the prices. During 2016-19, the sector had
experienced a massive profitability jump owing to rising commodity prices along
with the phase of de-leveraging in some big companies.
Telecom’s
profitability plummeted due to elevated competitive intensity after
the entry of Reliance Jio. This, coupled with rising capex intensity and a lower
operating margin, pushed the sector towards losses.
NBFCs, meanwhile, had delivered a solid performance over the last decade, with
consistent market share gains and rising penetration in several segments (Home
Finance / Vehicle Finance, etc.) due to the underlying stress in PSU Banks. The
profit to GDP ratio for NBFCs expanded consistently over the last decade. In fact,
the Nifty-500 NBFC Universe PAT clocked a 17% CAGR over 2008–20.
Key stocks contributing to the decline in the ratio over Phase 2 were ONGC (-
12%), Bharti Airtel (-10%), Tata Steel (-8%), RIL (-7%), and IOCL (-5%).
Exhibit 21: Contributors to decline in corporate profit to GDP ratio (Phase 2; pp)
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.1 0.1 0.0
0.0 0.0 0.0 0.0 0.1 0.1
0.1 0.1
0.1 0.2
5.2
0.2
0.4
0.4
0.7
0.8
2.1
June 2024
11
 Motilal Oswal Financial Services
India Strategy | Corporate profit to GDP
Exhibit 22: Stocks with positive contribution to change
Company
HDFC Bank
TCS
Patanjali Foods
HCL Tech.
Bajaj Finance
Power Grid Corp
Kotak Mah. Bk
IndusInd Bk
Bajaj Finserv
Indus Towers
Tata Chemicals
Bandhan Bank
Adani Ports
Muthoot Finance
LIC
Sector
Banks - Private
Technology
Consumer
Technology
NBFCs
Utilities
Banks - Private
Banks - Private
NBFCs
Telecom
Chemicals
Banks - Private
Logistics
NBFCs
Insurance
Exhibit 23: Stocks with negative contribution to change
Sector
Oil & Gas
Telecom
Metals
Oil & Gas
Oil & Gas
Real Estate
Metals
Telecom
Automobiles
Utilities
Banks - Private
Banks - Public
Banks - Private
Banks - Public
Capital Goods
Contributors to change (FY08-20)
pp
%
-0.35
-0.29
-0.24
-0.20
-0.17
-0.16
-0.14
-0.13
-0.10
-0.09
-0.09
-0.08
-0.08
-0.07
-0.07
-11.6
-9.6
-8.1
-6.7
-5.5
-5.4
-4.8
-4.3
-3.4
-3.1
-2.8
-2.8
-2.6
-2.2
-2.2
Contributors to change (FY08-20)
Company
pp
%
0.10
0.06
0.03
0.03
0.03
0.03
0.02
0.02
0.02
0.02
0.02
0.02
0.01
0.01
0.01
3.4
1.9
1.2
1.1
0.9
0.8
0.7
0.7
0.6
0.5
0.5
0.5
0.5
0.5
0.4
ONGC
Bharti Airtel
Tata Steel
Reliance Inds.
IOCL
DLF
SAIL
Vodafone Idea
Tata Motors
NTPC
Yes Bank
SBI
IDBI Bank
IOB
BHEL
Corporate profit to GDP in Phase 2 declines to 2.1% from 5.2% in 2008 led
by just five sectors
Exhibit 24: A meager 5% CAGR in profits over Phase 2
Sector
Automobiles
BFSI
Banks - Private
Banks - Public
Insurance
NBFCs
NBFCs - AMC
Capital Goods
Cement
Chemicals
Consumer
Consumer Durables
E-Commerce
Healthcare
Infrastructure
Logistics
Media
Metals
Oil & Gas
Real Estate
Retail
Technology
Telecom
Textiles
Utilities
Others
Nifty-500
PAT (INR b)
2008
2020
106
166
418
919
93
259
214
20
25
92
82
528
4
19
133
159
100
176
37
223
100
473
6
33
1
-50
69
266
8
32
8
47
7
20
443
345
583
718
87
21
3
64
163
818
71
-544
4
22
140
316
49
96
2,536
4,319
Change
(x)
CAGR (%)
1.6
4
2.2
7
2.8
9
0.1
-18
3.7
11
6.4
17
5.3
15
1.2
1
1.8
5
6.0
16
4.8
14
5.1
15
PL
PL
3.8
12
4.2
13
5.6
15
2.8
9
0.8
-2
1.2
2
0.2
-11
19.4
28
5.0
14
PL
PL
6.1
16
2.2
7
2.0
6
1.7
5
Profit to GDP (%)
2008
2020
0.2
0.1
0.9
0.5
0.2
0.1
0.4
0.0
0.1
0.0
0.2
0.3
0.0
0.0
0.3
0.1
0.2
0.1
0.1
0.1
0.2
0.2
0.0
0.0
0.0
0.0
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.9
0.2
1.2
0.4
0.2
0.0
0.0
0.0
0.3
0.4
0.1
-0.3
0.0
0.0
0.3
0.2
0.1
0.0
5.2
2.1
June 2024
12
 Motilal Oswal Financial Services
India Strategy | Corporate profit to GDP
Phase 3: Global cyclicals and Financials lead the surge in the ratio
During Phase 3, the ratio improved for 19 of 25 sectors, of which 80% was driven
by PSU Banks (19%), Private Banks (19%), Oil & Gas (17%), Automobiles (10%),
Telecom (8%), and NBFCs (7%).
Chemicals, Consumer, Textiles, Cement, Media, and Consumer Durables were
the only sectors to witness a compression in the ratio.
Exhibit 25: Nifty-500 earnings expand at 34% CAGR over 2020-24
Top-5 contributors to rise in
Phase 3 (%)
Sector
Automobiles
BFSI
Banks - Private
Banks - Public
Insurance
NBFCs
NBFCs - AMC
Capital Goods
Cement
Chemicals
Consumer
Consumer Durables
E-Commerce
Healthcare
Infrastructure
Logistics
Media
Metals
Oil & Gas
Real Estate
Retail
Technology
Telecom
Textiles
Utilities
Others
Nifty-500
PAT (INR b)
2020
2024
166
1,013
919
5,300
259
1,889
20
1,519
92
558
528
1,296
19
38
159
454
176
239
223
168
473
597
33
39
-50
3
266
503
32
59
47
203
20
19
345
934
718
2,364
21
101
64
132
818
1,209
-544
-183
22
1
316
745
96
218
4,319
14,118
Change
(x)
CAGR (%)
6.1
57
5.8
55
7.3
64
75.3
195
6.1
57
2.5
25
2.0
18
2.8
30
1.4
8
0.8
-7
1.3
6
1.2
5
LP
LP
1.9
17
1.9
17
4.3
44
1.0
-1
2.7
28
3.3
35
4.9
48
2.1
20
1.5
10
Loss
Loss
0.1
-50
2.4
24
2.3
23
3.3
34
Profit to GDP (%)
2020
2024
0.1
0.3
0.5
1.8
0.1
0.6
0.0
0.5
0.0
0.2
0.3
0.4
0.0
0.0
0.1
0.2
0.1
0.1
0.1
0.1
0.2
0.2
0.0
0.0
0.0
0.0
0.1
0.2
0.0
0.0
0.0
0.1
0.0
0.0
0.2
0.3
0.4
0.8
0.0
0.0
0.0
0.0
0.4
0.4
-0.3
-0.1
0.0
0.0
0.2
0.3
0.0
0.1
2.1
4.8
19
19
17
10
8
7
Exhibit 26: Contributors to the rise in corporate profit to GDP ratio (Phase 3)
0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0
0.1
0.1 0.1 0.1 0.0
0.2
0.0 0.0 0.0 0.0 0.0 0.1
0.3 0.2
0.5
2.1
0.5
0.4
4.8
June 2024
13
 Motilal Oswal Financial Services
India Strategy | Corporate profit to GDP
Exhibit 27: Stocks with positive contribution to change
Company
Bharti Airtel
Tata Motors
IOCL
SBI
LIC
ONGC
ICICI Bank
Yes Bank
IDBI Bank
Adani Power
HDFC Bank
Axis Bank
BPCL
Union Bank
Canara Bank
Sector
Telecom
Automobiles
Oil & Gas
Banks - Public
Insurance
Oil & Gas
Banks - Private
Banks - Private
Banks - Private
Utilities
Banks - Private
Banks - Private
Oil & Gas
Banks - Public
Banks - Public
Exhibit 28: Stocks with negative contribution to change
Sector
Consumer
Chemicals
Metals
Oil & Gas
Chemicals
Others
Technology
Technology
Textiles
Consumer
Healthcare
Metals
Banks - Private
Consumer
NBFCs
Contributors to change (FY20-24)
pp
%
-0.04
-0.03
-0.02
-0.01
-0.01
-0.01
-0.01
-0.01
-0.01
-0.01
-0.01
-0.01
-0.01
-0.01
-0.01
-1.4
-1.3
-0.9
-0.5
-0.5
-0.5
-0.5
-0.4
-0.4
-0.4
-0.3
-0.3
-0.3
-0.3
-0.3
Contributors to change (FY20-24)
pp
%
Company
0.19
0.17
0.15
0.13
0.13
0.11
0.10
0.09
0.08
0.08
0.08
0.08
0.08
0.06
0.06
7.0
6.3
5.5
4.9
4.8
4.3
3.9
3.3
3.2
3.1
3.1
3.0
2.9
2.4
2.3
Patanjali Foods
Tata Chemicals
Tata Steel
GAIL
UPL
Sh.Renuka Sugar
Tech Mahindra
Wipro
Alok Industries
Godrej Consumer
Glenmark Pharma
Hindustan Zinc
Bandhan Bank
ITC
Indiabulls Hsg.
June 2024
14
 Motilal Oswal Financial Services
India Strategy | Corporate profit to GDP
Momentum to continue
We expect the ratio to sustain going forward. India remains in a very good
shape, almost enjoying a mini-Goldilocks moment with excellent macros (Real
GDP growth of 8.2% in FY24 aided by ~7% growth in FY23, inflation at ~5%, both
current account and fiscal deficits well within the tolerance band, a stable
currency, et al.), and healthy corporate earnings (Nifty ended FY24 with 24% EPS
growth and we expect a CAGR of ~15% over FY24-26).
For Nifty-50, we are modeling ~13% YoY profit growth for FY25E. We forecast
FY25 earnings growth to be driven by BFSI, Oil & Gas, Metals and Technology,
which are likely to contribute 75% to the incremental earnings of Nifty-50.
Nifty is trading at a 12-month forward P/E of 19x, at a 6% discount to its own
long-period average (LPA).
Sectors with over-heated valuations and recent sharp outperformance viz.
Industrials, Railways, Defense, and PSUs may see more moderation in valuations
before they become attractive again from the risk-reward perspective.
Exhibit 29: MOFSL Universe – profit pool (INR b)
Sector
Auto (25)
Capital Goods (11)
Cement (11)
Chemicals-Specialty (12)
Consumer (19)
Consumer Durables (5)
EMS (5)
Financials (55)
Banks-PVT (13)
Banks-PSU (6)
Insurance (7)
NBFC - Lending (23)
NBFC - Non Lending (6)
Healthcare (23)
Infrastructure (3)
Logistics (8)
Media (3)
Metals (10)
Oil & Gas (15)
Ex OMCs (12)
Real Estate (11)
Retail (18)
Staffing (4)
Technology (12)
Telecom (4)
Others (16)
MOFSL (270)
Nifty (50)
FY21
278
117
190
51
386
27
2
1,429
744
337
77
247
23
303
12
58
20
730
1,239
783
34
6
5
871
-187
-25
5,546
4,103
FY22
193
147
223
73
432
31
3
1,974
953
610
81
298
32
347
15
83
23
1,556
1,695
1,256
54
55
7
1,005
-170
-12
7,736
5,638
PAT (INR b)
FY23
FY24
439
853
183
241
176
227
96
68
507
587
34
42
4
6
3,299
4,033
1,337
1,689
966
1,294
431
485
532
518
33
48
330
411
20
17
108
121
21
24
870
871
1,351
2,425
1,310
1,589
80
94
88
86
7
8
1,076
1,117
-170
-134
74
143
8,593 11,242
6,299
7,924
FY25E
975
297
259
77
638
55
9
4,745
1,944
1,562
528
650
61
498
22
148
28
1,181
2,175
1,749
123
117
13
1,259
2
169
12,789
8,985
FY26E
1,133
379
300
96
708
70
13
5,577
2,299
1,817
577
812
72
588
28
183
34
1,402
2,410
1,969
160
155
18
1,473
146
228
15,100
10,409
FY21
42.1
-17.1
15.5
1.5
1.1
11.3
30.8
38.6
39.1
107.3
-9.8
5.6
69.8
34.1
-26.0
-15.6
-20.3
66.4
46.3
6.2
4.3
-84.4
-23.7
6.8
Loss
Loss
29.0
18.9
FY22
-30.4
25.8
17.0
43.1
11.8
15.7
92.2
38.2
27.9
80.8
6.0
20.6
40.5
14.7
29.1
42.8
18.0
113.3
36.8
60.5
59.6
845.0
35.6
15.4
Loss
Loss
39.5
37.4
Chg. YoY (%)
FY23
FY24
126.9
94.5
24.6
31.9
-20.9
28.7
31.3
-29.1
17.3
15.9
8.4
23.2
36.0
33.2
67.1
22.2
40.4
26.3
58.4
34.0
430.3
12.5
78.6
-2.7
2.0
45.8
-4.9
24.4
33.7
-12.4
29.6
12.3
-11.2
16.7
-44.1
0.1
-20.3
79.5
4.3
21.3
48.3
17.2
59.0
-2.5
-3.4
17.2
7.0
3.8
Loss
Loss
LP
94.4
11.1
30.8
11.7
25.8
FY25E
14.2
23.0
14.2
13.0
8.6
32.2
58.5
17.7
15.1
20.7
9.0
25.5
25.8
21.3
24.6
22.2
15.4
35.7
-10.3
10.1
29.9
36.7
58.1
12.6
LP
17.8
13.8
13.4
FY26E
16.2
27.5
16.0
24.5
11.1
26.1
48.8
17.5
18.3
16.3
9.2
24.9
19.2
18.1
28.8
23.4
22.7
18.7
10.8
12.6
30.4
33.0
34.5
17.0
6,669.0
35.0
18.1
15.8
Investment in securities market are subject to market risks. Read all the related documents carefully before investing
June 2024
15
 Motilal Oswal Financial Services
India Strategy | Corporate profit to GDP
Research Gallery
June 2024
16
 Motilal Oswal Financial Services
India Strategy | Corporate profit to GDP
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
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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
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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
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have an independent view with regards to Subject Company for which Research Team have expressed their views.
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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
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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.
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
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For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets (Singapore) Pte. Ltd. (“MOCMSPL”) (UEN 201129401Z), which is a holder of a capital markets services license and an exempt
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In respect of any matter arising from or in connection with the research you could contact the following representatives of MOCMSPL. In case of grievances for any of the services rendered by MOCMSPL
write to grievances@motilaloswal.com.
Nainesh Rajani
Email: nainesh.rajani@motilaloswal.com
Contact: (+65) 8328 0276
.
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
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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
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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.
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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
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treat recipients as customers by virtue of their receiving this report.
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
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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
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Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
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Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 - 71934200 / 71934263; www.motilaloswal.com.
Correspondence Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 71881000. Details of Compliance Officer: Neeraj Agarwal,
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Contact No.
Email ID
Ms. Hemangi Date
022 40548000 / 022 67490600
query@motilaloswal.com
Ms. Kumud Upadhyay
022 40548082
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Mr. Ajay Menon
022 40548083
am@motilaloswal.com
Registration details of group entities.: Motilal Oswal Financial Services Ltd. (MOFSL): INZ000158836 (BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412 . AMFI:
ARN .: 146822. IRDA Corporate Agent – CA0579. Motilal Oswal Financial Services Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Insurance, Bond, NCDs and IPO products.
Customer having any query/feedback/ clarification may write to query@motilaloswal.com. In case of grievances for any of the services rendered by Motilal Oswal Financial Services Limited (MOFSL) write to
grievances@motilaloswal.com, for DP to dpgrievances@motilaloswal.com.
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