India Strategy
Gautam Duggad
Gautam.Duggad@motilaloswal.com
The Eagle Eye
Aanshul Agarawal
Aanshul.Agarawal@motilaloswal.com
Deven Mistry
Deven@motilaloswal.com
September 2024
June 2020
 Motilal Oswal Financial Services
GLOBAL MARKETS
Indian market at an all-time high, but
underperforms key global markets in Aug’24
MSCI India’s outperformance continues
Nifty Midcap index outperforms key global indices
in the last 10 years
INTIATING COVERAGE AND
NOTABLE PUBLISHED REPORTS
Signature Global | Initiating Coverage: Growth
gem in the making!
Gravita India | Initiating Coverage: Getting the
‘Lead Out’ in style!
INDIA STRATEGY: Nifty-50 P/E dissection: Devil
is in the details!
Healthcare, Technology, and Consumer among
the top gainers in Aug’24
About 68% of Nifty constituents end higher in
Aug’24
Around 48% of BSE-200 constituents end higher
in Aug’24
Dominance of large companies reduces as broad-
basing of market continues
DOMESTIC MARKETS
MULTI-YEAR HIGHS AND LOWS
CONTENTS
Forex reserves hit an all-time high of USD682b
Retail participation continues to hit new peaks
The 10-year yield spread between India and the
US widens MoM
India’s market capitalization-to-GDP ratio at an
all-time high
FLOWS AND VOLUMES
DIIs clock the highest ever yearly flows
Monthly average cash volumes moderate from
the previous highs; F&O volumes remain strong
NSE500: FII’s ownership across sectors shows
high sectoral rotation; DII’s ownership across
sectors depicts broad-based improvement
VALUATIONS
The 12-month trailing P/E for Nifty was at 24x,
a 7% premium to its LPA of 22.5x.
Nifty trades at a 12-month forward P/E of
21.1x, a 3% premium to its LPA of 20.4x.
CHART BOOK | September 2024
2
June 2020
 Motilal Oswal Financial Services
Indian market at an all-time high, but underperforms key global markets in Aug’24
World equity indices (MoM) in USD terms (%)
6
4
4
4
MoM change (%)
3
2
2
2
1
1
-1
-11
CY24YTD performance of global equity indices in USD terms (%)
19
18
CY24YTD change (%)
15
13
11
11
10
7
1
-3
-13
-14
CHART BOOK | September 2024
3
June 2020
 Motilal Oswal Financial Services
MSCI India continues to outperform; China remains laggard
Performance of the MSCI India index vs. MSCI US, MSCI World, MSCI Emerging Market, and MSCI China in USD terms
140
MSCI India
MSCI US
MSCI world
MSCI EM
MSCI China
(indices rebased to 100)
138
125
123
112
122
105
95
87
70
MSCI India outperforms global indices by a wide
margin
22
18
YTD Change(%)
16
7
MSCI India as the second-best performer in the past decade
(in USD)
10-yr CAGR (%)
(in USD)
8
2
11
8
0
-2
CHART BOOK | September 2024
4
June 2020
 Motilal Oswal Financial Services
Nifty Midcap index outperforms key global indices in the last 10 years
Performance of the Nifty-50, Nifty Midcap 100, and Nifty Smallcap 100 vs. the US Nasdaq, US S&P500, and China
Nasdaq
400
(indices rebased to 100; in USD)
Nifty Midcap 100
US S&P 500
Nifty Smallcap 100
396
384
330
Nifty50
China
275
275
235
260
190
120
76
50
CHART BOOK | September 2024
5
June 2020
 Motilal Oswal Financial Services
Healthcare, Technology, and Consumer among the top gainers during the month
Sectoral performance MoM (%): Healthcare and Technology among the top gainers; PSBs and real estate among key laggards
7
1
1
1
5
2
0
-1
-1
-2
-2
MoM change (%)
-2
-3
-4
-6
Sectoral performance CY24YTD (%): Auto, Healthcare, and Real Estate among the top gainers; Media and Private banks among the key
laggards
41
28
16
27
38
35
CY24YTD change (%)
31
31
29
22
20
18
11
3
-12
Note: (*) represents BSE capital goods index.
CHART BOOK | September 2024
6
June 2020
 Motilal Oswal Financial Services
About 68% of Nifty constituents end higher in Aug’24
Among Nifty constituents, 34 companies closed higher MoM and 29 outperformed the benchmark.
About 42 Nifty constituents traded higher in CY24YTD. M&M, ONGC, and Bajaj Auto were the top gainers, whereas IndusInd Bank,
Asian Paints, and Kotak Bank were the key laggards.
Best and worst Nifty performers (MoM) (%)
13
9
9
8
7
7
7
6
6
6
1
-3
-3
-4
-4
-5
-5
-5
-6
-7
-8
Best and worst Nifty performers CY24YTD (%)
62
61
60
59
56
54
45
45
42
42
16
5
4
-2
-2
-3
-4
-6
-7
-8
-11
CHART BOOK | September 2024
7
June 2020
 Motilal Oswal Financial Services
Around 48% of BSE-200 constituents end higher in Aug’24
In Aug’24, 62 companies closed higher. Oil India, One 97, and Mankind gained the most during this month.
About 132 of the BSE-200 constituents traded higher. RVNL, Oil India, and Oracle Financial Services were the top gainers in CY24YTD.
Top gainers from the BSE-200 pack on a MoM basis (%)*
28
26
23
23
22
17
16
15
13
13
13
11
10
10
9
9
9
9
9
9
9
8
8
8
7
7
7
7
7
7
1
Top gainers from the BSE-200 pack in CY24YTD (%)*
235
199
161
134 130 123
103 101 99
92
91
87
81
80
78
74
71
71
70
69
67
65
64
63
62
59
58
57
56
53
21
*The list excludes Nifty constituents.
CHART BOOK | September 2024
8
June 2020
 Motilal Oswal Financial Services
Around 52% of BSE-200 constituents end lower in Aug’24
In Aug’24, 88 companies closed lower. Hindustan Zinc, Balkrishna Inds., and Gland Pharma were among the key laggards.
Around 18 of the BSE-200 companies traded lower in CY24YTD. Bandhan Bank, IDFC First, and Dalmia Bharat were the key laggards
in CY24YTD.
Key laggards among the BSE-200 constituents on an MoM basis (%)*
1
-15
-23
-11 -11 -11 -11 -10 -10 -10 -10 -10
-14 -14 -13 -12 -12
-9
-9
-9
-9
-9
-8
-8
-8
-8
-8
-8
-8
-8
-8
Key laggards among the BSE-200 constituents in CY24YTD (%)*
21
1
-13 -11
-17 -17 -16 -14
-9
-6
-5
-5
-5
-4
-4
-4
-2
-2
-1
1
2
2
2
3
4
5
5
5
6
6
-17
*The list excludes Nifty constituents.
CHART BOOK | September 2024
9
June 2020
 Motilal Oswal Financial Services
Dominance of large companies reduces as broad-basing of market continues
Share of companies as % of total market cap
Top Companies by Mkt Cap
Top 10
Total ex Top 10
Top 50
Total ex Top 50
Top 100
Total ex Top 100
Top 250
Total ex Top 250
Top 500
Total ex Top 500
Top 1000
Total ex Top 1000
Total market cap (INR t)
Note: Data Includes entire listed universe
Dec’19
31%
69%
61%
39%
74%
26%
89%
11%
96%
4%
99%
1%
156
Dec’20
32%
68%
60%
40%
73%
27%
89%
11%
96%
4%
99%
1%
189
Dec’21
28%
72%
55%
45%
68%
32%
85%
15%
94%
6%
98%
2%
267
Dec’22
27%
73%
57%
43%
69%
31%
85%
15%
94%
6%
98%
2%
283
Dec’23
24%
76%
51%
49%
64%
36%
82%
18%
92%
8%
98%
2%
366
Aug’24
22%
78%
48%
52%
62%
38%
81%
19%
91%
9%
97%
3%
468
CHART BOOK | September 2024
10
June 2020
 Motilal Oswal Financial Services
Nifty composition: Technology and Telecom’s weights increase in Aug’24
The weights of Technology, Telecom, and Healthcare expanded MoM, while those for Banks, Capital goods, and Cement contracted.
In CY24YTD, the weights of Auto, Telecom, Utilities, and Technology expanded, while those for Private banks, Consumer, and Cap
goods declined.
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
Weightage in the Nifty (%)
Dec’20 Dec’21 Dec’22 Dec’23
5.4
5
5.3
6.5
24.7
21.9
24.2
28.2
1.8
2.3
2.9
2.6
12.3
11.4
10.6
4.5
2.6
3
3.1
4.4
2.2
2.4
1.8
2.1
10.4
9.4
10.3
10.8
3.6
3.4
3.8
4
2
2.9
2.9
3
12.5
12.3
12.1
10.5
10.7
10.8
11.0
9.2
2
2.1
2.5
2.7
16.3
19.1
14.0
13.6
2.1
2.1
2.5
3.6
2.1
2.6
3.9
3.5
100
100
100
100
Mar’24
7.6
25.6
2.9
5.0
4.5
2.0
9.5
4.4
2.9
11.9
10.2
3.2
13.0
3.9
3.5
100
July’24
8.2
25.1
3.0
4.7
4.0
2.2
9.7
4.3
2.9
11.0
9.2
3.6
13.8
4.3
3.1
100
Aug’24
8.3
24.9
2.8
4.9
3.9
2.1
9.7
4.5
2.8
10.9
9.1
3.8
14.2
4.2
3.0
100
Note: The merger of HDFC Bank and HDFC Ltd. resulted in a shift in weightage from NBFCs to private banks in CY23.
CHART BOOK | September 2024
11
June 2020
 Motilal Oswal Financial Services
NSE indices: Valuation snapshot – most sectors trade at a premium to its LPA
Mid-cap and small-cap indices continue to outperform, with Nifty mid-cap and Nifty small-cap indices surging 52% YoY and 60% YoY,
respectively, while Nifty-50 rose 31% in the past year.
Among the key Nifty sectoral indices, energy, auto, and capital goods were the top performers last year.
Nifty-50 has been trading near its LPA, whereas most of the sectoral indices (excluding banking) have been trading at a significant
premium to their LPA.
Indices
Aug'24 closing
Nifty
Nifty50 Midcap
100
59,287
52
1,500
39.5
21.8
4.9
2.5
11.3
-0.4
Nifty
Smallcap Nifty 500 Nifty Auto
100
19,307
58
772
25.0
15.9
3.8
1.9
15.0
3.2
23,735
40
906
26.2
19.2
4.0
2.7
15.1
2.3
26,173
67
994
26.3
18.9
4.6
2.8
17.7
9.2
Nifty
BANK
51,351
17
3,377
15.2
15.9
2.2
2.1
13.9
-
Nifty
FMCG
63,060
23
1,395
45.2
33.1
11.3
8.6
25.0
23.6
Nifty IT
42,788
37
1,304
32.8
20.5
9.0
4.9
27.4
20.9
Nifty
Metal
9,405
41
489
19.2
10.8
2.4
1.3
12.4
6.3
Nifty
Energy
BSE
Cap.
Goods
62
1,532
47.8
25.0
8.1
3.3
17.2
9.2
Source: Bloomberg, MOFSL; as of 31
st
Aug’24| LPA: Long Period Average i.e. 10-year average
25,236
YoY change (%)
31
EPS (12m fwd)
1,120
P/E (12m fwd)
21.1
P/E (10 yr average) 20.4
P/B (12m fwd)
3.4
P/B (10 yr average) 2.8
RoE (%)
16.3
RoA (%)
2.9
43,757 73,169
70
2,660
16.4
11.3
2.4
1.4
14.3
6.4
CHART BOOK | September 2024
12
June 2020
 Motilal Oswal Financial Services
Institutional flows remain strong in Aug’24, DIIs clock the highest ever yearly flows
FIIs remained net buyers, investing USD1.4b in Aug’24. DII inflows strengthened to a three-month high of USD5.8b.
FII flows have remained positive in CY24YTD. DII inflows over the past eight months have exceeded that of the entire CY23 by 66%.
Monthly institutional flows (USD b)
Net FII (USD b)
6.8
4.7
1.0
-0.2
1.8 1.9
5.0
6.7
4.1
1.7
2.3
0.5
-1.1
-3.1
-3.0
7.0
4.0
3.1 3.3
1.4
1.7
1.1
-0.8
4.1
2.3
3.7
0.3
0.5
-0.3
3.4
1.7 1.6
3.2 3.1
Net DII (USD b)
6.8
5.3
3.0
2.4
2.9
6.7
3.4
2.8
5.8
-1.6
-0.6
-2.3-2.7
-0.9
-0.4
-3.7
Yearly institutional flows (USD b)
Net FII (USD b)
14.2
7.7
3.8
23.4
Net DII (USD b)
21.4
5.1
14.0
32.2
37.0
22.3
15.9
6.0
12.1
-4.6
-17.0
-5.0
CHART BOOK | September 2024
13
June 2020
 Motilal Oswal Financial Services
NSE500: FII’s ownership across sectors shows high sectoral rotation
FII’s ownership in auto, PSBs, retail, telecom, and textile was at a 14-quarter high, while at lowest for chemicals, insurance, Infra,
Media, and O&G.
Sectors
Automobiles
Banks – Private
Banks – PSU
Capital Goods
Cement
Chemicals & Fert.
Consumer
Cons.r Durables
Healthcare
Infrastructure
Insurance
Media
Metals
Misc
NBFC
Oil & Gas
Real Estate
Retail
Technology
Telecom
Textiles
Utilities
Total
Mar'21
20.4
47.8
7.6
12.9
14.8
14.4
15.7
16.6
17.4
15.5
22.2
34.1
12.4
16.8
17.7
23.0
22.8
17.1
20.6
18.6
3.8
14.0
21.3
Jun'21
19.9
47.9
7.3
13.2
14.8
14.7
16.1
16.8
17.3
14.0
22.0
28.7
12.2
16.3
17.9
22.5
22.5
16.4
20.6
17.7
4.1
13.5
20.8
Sep'21
19.4
47.3
8.0
13.6
14.9
13.6
16.1
18.8
16.9
14.2
23.0
32.6
13.0
16.1
17.5
22.9
22.4
17.1
20.1
19.1
4.7
12.2
20.7
Dec'21
18.9
46.1
7.9
14.1
14.0
13.8
15.8
19.2
17.2
16.6
23.1
30.4
12.2
15.4
16.9
22.6
21.6
16.2
20.0
17.3
5.1
12.2
20.2
Mar'22
17.8
45.1
8.2
13.4
12.9
13.8
15.4
18.4
16.9
15.8
21.7
27.4
9.8
14.5
16.2
22.5
20.7
15.6
19.5
17.9
5.7
11.4
19.6
Jun'22
18.5
43.9
7.9
12.7
12.3
13.4
15.1
17.5
16.7
15.8
21.9
25.3
9.5
13.7
15.5
22.2
20.2
14.7
18.2
17.3
5.7
11.7
19.2
Sep'22
19.0
44.0
8.1
13.4
13.2
13.1
20.1
18.0
18.7
15.6
23.5
25.1
12.7
13.9
15.2
21.7
19.7
14.7
21.0
19.7
5.7
11.2
20.2
Dec'22
19.4
44.4
7.6
14.5
13.5
13.0
20.4
17.0
19.4
15.4
23.0
25.4
16.3
14.4
15.8
21.4
19.4
15.1
20.8
19.7
7.1
11.8
20.6
Mar'23
19.0
44.3
7.8
15.0
13.8
13.4
21.0
17.0
19.3
18.1
23.3
24.4
16.4
14.9
15.6
20.7
19.2
15.1
20.2
19.1
6.7
13.7
20.8
Jun'23
20.0
45.4
8.2
15.4
14.4
12.8
22.2
16.7
20.1
16.9
23.8
21.0
16.4
15.6
16.5
20.7
19.5
15.6
19.1
19.2
7.1
14.6
21.0
Sep'23
19.9
50.1
7.6
16.2
14.3
11.4
21.4
17.7
19.9
15.0
23.6
21.3
16.9
14.6
16.3
20.1
19.7
16.3
19.3
18.5
7.3
14.6
21.2
Dec'23
20.1
50.3
8.1
16.3
15.0
10.8
21.1
18.4
20.0
15.9
22.8
17.8
16.9
15.0
16.6
19.5
19.5
16.8
19.4
18.7
6.6
14.3
21.1
Mar'24
20.3
48.0
8.3
15.9
14.5
10.5
20.3
18.1
19.9
13.1
21.6
13.2
16.7
16.0
15.9
19.2
19.8
16.9
19.3
20.5
7.0
14.3
20.2
Jun'24
20.6
47.9
8.6
14.8
14.5
10.2
19.6
18.8
19.7
12.8
20.3
13.2
15.2
15.3
16.7
18.9
20.8
17.6
18.6
21.4
7.5
14.6
20.0
Note: We have taken NSE500 constituents that have been listed since Mar’21 (LFL comparison). For each sector, we have taken the market cap weight of the companies within that
sector and multiplied it by the ownership released by the exchange at the end of each quarter.
14
June 2020
 Motilal Oswal Financial Services
NSE500: DII’s ownership across sectors depicts broad-based improvement
DII’s ownership in 16 out of 22 sectors was at/near an all-time high. Ownership in PSBs and Capital goods was at a 14-quarter low.
Sectors
Automobiles
Banks – Private
Banks – PSU
Capital Goods
Cement
Chemicals & Fertilizers
Consumer
Consumer Durables
Healthcare
Infrastructure
Insurance
Media
Metals
Misc
NBFC
Oil & Gas
Real Estate
Retail
Technology
Telecom
Textiles
Utilities
Total
Mar'21
15.3
20.3
17.6
22.0
14.3
13.7
13.7
16.9
13.4
14.2
10.7
9.7
18.5
10.2
9.8
13.5
5.4
9.5
11.9
14.7
8.0
12.9
14.2
Jun'21
15.5
20.9
16.5
21.1
14.3
13.1
12.8
17.0
13.6
14.1
11.2
11.2
17.0
10.1
9.9
13.8
6.0
9.5
12.0
14.5
7.7
12.2
14.0
Sep'21
16.0
21.5
17.8
20.5
14.6
12.3
13.1
15.7
14.6
14.8
11.4
11.3
17.0
10.5
10.1
13.2
6.2
9.1
10.2
13.9
7.5
11.7
13.8
Dec'21
16.1
23.0
17.9
21.1
15.1
12.4
13.2
15.2
15.0
14.0
12.0
12.7
16.8
10.0
10.5
13.5
6.9
9.4
10.7
13.7
7.2
10.4
14.0
Mar'22
16.4
24.0
18.7
21.0
15.7
12.4
14.1
16.0
15.8
14.1
12.6
13.9
20.4
10.4
11.1
13.7
7.5
9.9
11.2
14.8
6.6
11.0
14.7
Jun'22
17.5
25.6
19.3
20.9
16.5
12.4
15.1
16.2
16.3
13.9
12.6
16.7
19.8
10.4
11.9
13.9
8.2
10.5
11.8
15.6
6.1
10.0
15.3
Sep'22
17.5
26.9
19.6
22.5
16.6
13.1
15.6
17.4
16.7
14.4
12.2
17.1
17.3
10.2
11.7
15.4
8.9
11.0
14.6
15.1
6.6
8.8
16.0
Dec'22
17.6
26.6
18.1
22.5
16.7
13.1
15.6
17.5
16.7
13.4
12.2
18.5
17.6
10.3
11.7
15.9
9.2
10.8
15.1
15.5
6.8
9.7
16.2
Mar'23
18.1
27.2
18.2
21.9
16.3
13.5
16.6
17.6
16.9
12.4
12.4
20.8
17.3
11.9
12.4
18.1
9.2
11.1
15.6
17.9
7.8
13.5
17.3
Jun'23
17.8
25.8
17.9
20.8
16.1
13.5
16.1
17.4
16.6
11.7
12.0
20.0
17.2
11.7
13.0
18.3
8.8
10.9
15.7
17.9
7.6
13.7
16.9
Sep'23
17.7
27.3
16.3
20.7
16.2
13.5
16.9
17.0
17.1
11.6
12.5
22.8
17.3
11.6
12.9
18.5
9.2
11.0
16.3
18.2
7.7
14.1
17.2
Dec'23
17.5
27.7
16.7
20.4
15.9
13.4
16.9
17.4
17.1
10.8
12.8
23.4
17.3
12.0
12.9
18.9
9.6
11.1
16.5
18.5
8.1
13.8
17.3
Mar'24
17.4
29.3
16.3
19.8
16.0
13.8
17.4
18.9
17.4
13.5
13.5
18.6
17.3
12.3
12.4
19.5
9.2
11.2
16.6
18.2
9.4
13.7
17.4
Jun'24
18.0
30.5
16.0
17.6
15.5
13.5
17.6
19.2
18.0
13.2
14.6
15.3
18.8
12.1
12.6
19.6
9.6
11.5
17.6
18.9
9.5
13.8
17.7
Note: We have taken NSE500 constituents that have been listed since Mar’21 (LFL comparison). For each sector, we have taken the market cap weight of the companies within that
sector and multiplied it by the ownership released by the exchange at the end of each quarter. .
15
June 2020
 Motilal Oswal Financial Services
Monthly average cash volumes moderate from the previous highs; F&O volumes remain
strong
Average cash volumes further moderated by 10% MoM in Aug’24. Non-institutional participation accounted for 51% of the total
cash volumes. Monthly average F&O volumes were at an all time high of INR501t.
Monthly Avg. Cash Volume (INR b)
1750
1350
950
550
150
Non Institution % to Cash Volume (RHS)
78
66
51
54
42
30
640
480
320
160
0
Monthly Avg F&O Volume (INR t)
Cash % to Total Volumes
7.0
5.3
3.5
1.8
0.3
0.0
CHART BOOK | September 2024
16
June 2020
 Motilal Oswal Financial Services
Retail participation continues to scale new peaks
The number of demat accounts continues to reach new highs, valued at 167m, growing 4x in the last 4 years.
Further, monthly SIP flows continue to scale new highs at INR232b.
The number of demat accounts grew faster post-pandemic
Demat accounts (in m)
YoY growth (%)
64
34
5
5
9
12
14
13
14
148
114
30
167
90
27
55
22
23
25
28
32
36
41
Monthly SIP flows continue to reach new highs, with an average monthly inflow of over INR190b (USD2b+) in the past 12 months.
(INR b)
232
152
81
78
96
121
CHART BOOK | September 2024
17
June 2020
 Motilal Oswal Financial Services
The 10-year yield spread between India and the US widens MoM
India bond yield remained flat at 6.9% MoM (the lowest since Apr’22), while US bond yield contracted marginally to 3.9% in Aug’24. The yield
spread widened marginally 10bp MoM to 3.0%.
India 10-year yield
US 10-year yield
12.0
India fiscal tightening,
strong economic growth led by
the global book and Fed raising
rates
GFC
Fed cuts rates to zero
after the GFC
Fed raises rates
9.0
Fed easing, US-
Sino trade
war, and
COVID-19
outbreak
Fed tightening,
geopolitical
uncertainties, and
sharp rise in bond
yield
6.0
1.3
6.9
6.0
3.9
4.4
3.0
3.0
0.0
CHART BOOK | September 2024
18
June 2020
 Motilal Oswal Financial Services
Forex reserves hit an all-time high of USD682b
India’s forex reserves scaled an all-time high of USD682b.
On the currency front, INR reached an all-time low and weakened marginally MoM to INR83.9 in Aug’24.
Forex Reserves (USD b) (RHS)
USD:INR
Eurozone crisis, taper tantrum, and
devaluation of the RMB – the taper
tantrum episode in CY13 drove
down the INR sharply to 68 from 55
in just four months. This was a
period of high inflation and INR
depreciation.
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 and
geopolitical tensions led to
global volatility and high
liquidity, followed by
quantitative tightening and
sharp currency depreciation
but resilient economy.
95
The INR had its best run during the CY03-
CY07 global bull-run when the GDP and
corporate earnings growth were high and the
twin deficits – CAD and FD – were among the
lowest in two decades.
600
80
Pre-GFC peak
in FX reserves
450
300
150
0
65
50
35
Source: Bloomberg, MOFSL
CHART BOOK | September 2024
19
June 2020
 Motilal Oswal Financial Services
1QFY25 earnings review – A muted quarter
The corporate earnings for 1QFY25 showed growth, primarily driven by domestic cyclicals. Notable contributions were made by the
healthcare, real estate, capital goods, and metals sectors. In contrast, earnings growth was adversely affected by OMCs.
Report link
PAT declined 6% YoY for the MOFSL
Universe, excluding financials
231
MOFSL Ex Financials
76
54
43
23 18 14
-3
17
52 47
50
29
10
17 8
49 55
3
-19 -12
7
33
4
39
23
18 13
33 30 34
31
23 18
PAT grew 1% YoY for the MOFSL Universe
MOFSL Universe
145
PAT grew 14% YoY for the MOFSL Universe,
excluding metals & O&G
MOFSL Ex Metals & Oil
2
1
-6
14
PAT grew 4% YoY for the Nifty Universe
107
Nifty Universe
PAT was flat YoY for the Nifty
Universe, excluding financials
Nifty Ex Financials
150
PAT grew 13% YoY for the Nifty Universe,
excluding metals & O&G
56
Nifty Ex Metals & Oil
49
35 32
30
38
26
22
23
35
10 11
17
29
19
40 22 16
19
12
9
-2 0
25 30
21 7
19
23
23
4
0
14 10
17 16
13
CHART BOOK | September 2024
20
June 2020
 Motilal Oswal Financial Services
KEY REPORTS FROM MOFSL’S RESEARCH DESK
CHART BOOK | September 2024
21
June 2020
 Motilal Oswal Financial Services
Signature Global| Initiating Coverage: Growth gem in the making!
Signature Global India (SIGNATUR) began its operations in 2014 and in just a decade, it has become one of the leading real estate
developers in the Delhi-NCR market. The company commenced its journey in the affordable and low/mid-income housing segment by
leveraging the state government’s housing policies.
Through its standardized offerings and quick turnaround strategy, SIGNATUR has scaled up rapidly and delivered a 42% CAGR in pre-
sales over FY21-23. Its agility in adapting to changing market preferences has enabled SIGNATUR to foray into the premium segment,
which doubled its pre-sales to INR73b in FY24. Its strong execution capabilities have enabled it to churn the capital and gear up with a
strong ~30msf project pipeline to be launched over the next two years. We, thus, expect the growth momentum to remain intact and
expect SIGNATUR to deliver 35% CAGR in pre-sales over FY24-27E to INR178b. The management’s disciplined land acquisition strategy
has enabled it to curtail costs and report margins of over 35% (better than peers). We initiate coverage on SIGNATUR with a BUY rating
and a DCF-based target price of INR2,000, implying 38% upside potential.
Launches to increase 4x in FY25
Launches (INRb)
290
160
42
40
26
34
Pre-sales to grow at 35% CAGR over FY24-27E
Sales Value (INRb)
130
73
17
101
178
FY24
FY25E
FY26E
FY27E
FY21
FY22
FY23
EBITDA (INRb)
FY24
FY25E
FY26E
FY27E
SIGNATUR to report 105% CAGR in topline over FY24-FY26E
Revenue (INRb)
52
37
1
FY21
EBITDA could increase to INR13b with 25% margin
0
-2
EBITDA Margin (%)
24
25
-9
-100
-1
-1
0
0
9
13
9
FY22
16
FY23
12
FY24
FY25E
FY26E
FY21
FY22
FY23
FY24
FY25E
FY26E
CHART BOOK | September 2024
22
June 2020
 Motilal Oswal Financial Services
Gravita India| Initiating Coverage: Getting the ‘Lead Out’ in style!
Gravita India
is one of the key players in the growing recycling industry in India. The company is primarily engaged in recycling lead (~88% of revenue in
FY24), aluminum (~8%), and plastics (~2%). Additionally, it offers turnkey solutions to its customers, assisting them in setting up recycling plants.
Gravita’s core business of lead recycling is expected to sustain the strong revenue growth momentum (at ~21% CAGR over FY24-27), fueled by favorable
regulatory changes and the formalization of the sector (BWMR, 2022).
However, the other key business segments, such as Aluminum and Plastic, are expected to report a much higher revenue CAGR of ~49% and 52%,
respectively, propelled by changing business scenario due to the introduction of new hedging mechanisms and stricter implementation of regulatory
policies (such as the Plastic Waste Management Rule; PWMR).
The company is incurring a significant capex of over INR6b (INR4b for the existing segments and INR2b for the upcoming segments, like Lithium ion,
Steel, and Paper) on the existing gross block of ~INR4.8b to more than double the capacity over the next three years (~686K MTPA by FY27 vs. ~303K in
FY24).
We believe that with strong industry tailwinds, favorable regulatory policies, the availability of additional hedging mechanisms, and the absence of
significant supply chain disruption, Gravita can ramp up the utilization materially (driving ~30% sales volume CAGR over FY24-27E)
Revenue CAGR of ~26% over FY24-FY27E…
Revenue (INRb)
57.2
26.4
12.9
22.2
FY22
28.0
FY23
31.6
FY24
40.7
FY25E
50.9
FY26E
63.8
FY27E
28.8
YoY Growth (%)
…coupled with margin expansion…
Adjusted EBITDA (INR b)
9.7%
10.2%
Adjusted EBITDA Margin
10.5%
10.3%
10.7%
11.2%
7.2%
25.0
25.4
4.8%
0.6
FY19
1.0
FY20
8.3%
22.0
12.4
FY19
13.5
8.5
FY20
14.1
4.6
FY21
1.2
FY21
2.1
FY22
2.9
FY23
3.3
FY24
4.2
FY25E
5.4
FY26E
7.2
FY27E
...leading to robust earnings growth (at ~31% CAGR)
114.1
Adjusted PAT (INR b)
165.7
58.1
44.3
18.9
YoY Growth (%)
26.1
32.3
33.6
Reduction in net working capital
Net working capital days
108
106
89
93
88
84
78
54
58
-100.0
0.2
FY19
0.3
FY20
0.5
FY21
1.4
FY22
2.0
FY23
2.4
FY24
3.0
FY25E
4.0
FY26E
5.3
FY27E
FY19
FY20
FY21
FY22
FY23
FY24
FY25E
FY26E
FY27E
CHART BOOK | September 2024
23
June 2020
 Motilal Oswal Financial Services
INDIA STRATEGY: Nifty-50 P/E dissection: Devil is in the details!
India commands premium valuation:
The Nifty-50 trades at 20.3x its one-year forward earnings. It is fairly valued with its 10-year forward
average multiple. Compared to its EM peers, India has been considered relatively expensive for a long period. An anomaly in a data set
can be overlooked, but when consistent, it becomes the norm.
India enjoys its premium valuations due to: 1) Nifty PAT has compounded by 25%/18%/12% over the last 3/5/10 years; 2) a strong,
continuous, and stable political setup, with the same PM regime in power for the third consecutive term; 3) a GDP growth rate ranging
between 6% and 7% during this period; and 4) healthy macros – stable currency, twin deficits under control, peaking of interest rates,
moderating inflation print, and massive development of digital and physical infrastructure
Re-rating and composition changes:
In FY07, the 10-year rolling average trailing P/E was only 14.0x. It increased to 15.5x/19.1x/22.6x in
FY12/FY19/Aug’24. The re-rating has been consistent and incremental over 17+ years, in unison with the growth potential of these stocks
and earnings delivery. This trend has been driven by the inclusion of high P/E names in retail, logistics, and consumer sectors. Since FY07,
the trailing P/E has nearly doubled for the Metals, Auto, Technology, Oil & Gas, Cement, Telecom and Healthcare sectors. In contrast, it
has remained flat for the BFSI (ex-Insurance), Consumer, and Utility sectors. Interestingly, as of FY14, only 14% of the stocks were trading
above 30x trailing P/E, but this figure has now surged to 50%!
Nifty-50’s forward P/E is fairly valued vs. history; also, it is 17% below the peak multiple of 24.5x in FY19.
Among them, domestic and
global cyclicals trade lower at 18.2x and 15.2x (at one-year forward earnings) to index multiples, respectively. Meanwhile, the Nifty-50
defensive basket, driven by the Consumer sector, is at 29x one-year forward multiples; at a 43% premium to the index.
Consistent upward re-rating of rolling 10-year avg. trailing Nifty P/E
Rolling 10 year average trailing Nifty P/E
21.0
21.7
22.4
22.5
14.0
14.5
14.8
15.0
15.3
15.5
15.9
16.2
16.9
17.5
17.8
18.2
19.1
19.6
20.0
CHART BOOK | September 2024
24
June 2020
 Motilal Oswal Financial Services
Valuations: Key observations
CHART BOOK | September 2024
25
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 remains strong. The ratio is at 143% as of FY25YTD, much above its long-term average of
~85%.
Market capitalization-to-GDP ratio (%)
GFC: Peak of 149% in Dec’07
Nominal GDP growth in
FY24/FY25E: 9.6%/10.8%
143
Average of 85% for the period
Lowest since
the GFC
132
103
113
96
105
84
84
97
90
71
82
64
66
69
79
84
80
57
56
CHART BOOK | September 2024
26
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 24x, a 7% premium to its LPA of 22.5x.
At 3.9x, the 12-month trailing P/B was 26% above its historical average of 3.1x.
12-month trailing Nifty P/E (x)
29
25
21
17
13
10 Year Avg: 22.5x
24.0
12-month trailing Nifty P/B (x)
4.0
3.5
3.0
2.5
2.0
3.9
10 Year Avg: 3.1x
CHART BOOK | September 2024
27
June 2020
 Motilal Oswal Financial Services
Valuations: Nifty’s 12-month forward P/E slightly above its LPA
Nifty’s 12-month forward P/E was traded at 21.1x, a 3% premium to its LPA of 20.4x.
At 3.4x, the 12-month forward P/B was trading at a premium of 23% to the Nifty’s historical average of 2.8x.
12-month forward Nifty P/E (x)
28
24
20
16
12
10 Year Avg: 20.4x
21.1
12-month forward Nifty P/B (x)
4.0
3.5
3.0
2.5
2.0
1.5
10 Year Avg: 2.8x
3.4
CHART BOOK | September 2024
28
June 2020
 Motilal Oswal Financial Services
The 10-year G-Sec yield stands at 6.9%; EY/BY trading below LPA
India’s 10-year bond yield stood at 6.9% (flat MoM and lowest since April’22). As a result, EY/BY traded below LPA on a trailing
basis as well as on a forward basis.
Trailing Earnings Yield/G-Sec Yield (x)
1.0
0.8
0.7
0.5
0.4
15-year average: 0.67%
Earnings Yield/G-Sec Yield
0.61
Forward Earnings Yield/G-Sec Yield (x)
1.7
1.4
1.1
0.8
0.5
Earnings yield (12-month forward)/G-Sec yield
EY/BY spiked sharply
during the GFC
It remained below 1x in the last
six years, except for a brief period
during demonetization
15 Year Avg: 0.74%
0.69
CHART BOOK | September 2024
29
June 2020
 Motilal Oswal Financial Services
Sectoral valuations: Private banks trading at LPA; IT trading at a premium to the LPA
The private banks sector has been trading near its LPA
P/B (x)
3.5
2.8
2.0
1.3
0.5
1.6
2.4
Avg (x)
Max (x)
3.1
2.7
2.1
Min (x)
+1SD
-1SD
2.3
The IT sector has been trading at a 49% premium to its LPA, while it has been trading at a 13% discount to its Dec’21 high
36.0
28.0
20.0
12.0
4.0
19.0
14.4
11.4
P/E (x)
Avg (x)
Max (x)
32.6
23.6
Min (x)
+1SD
-1SD
28.4
CHART BOOK | September 2024
30
June 2020
 Motilal Oswal Financial Services
Sectoral valuations: Metals and O&G trading at a significant premium to the LPA
Metals: Valuation at 44% premium to its LPA
3.0
P/B (x)
Avg (x)
Max (x)
2.0
1.5
1.3
0.7
0.0
1.6
Min (x)
+1SD
-1SD
2.6
2.4
O&G: Valuation at 23% premium to its LPA
2.6
P/B (x)
Avg (x)
Max (x)
2.2
1.8
1.3
1.5
Min (x)
+1SD
-1SD
1.9
1.9
1.2
0.5
0.9
CHART BOOK | September 2024
31
June 2020
 Motilal Oswal Financial Services
Sectoral valuations: Auto and consumer trading at a premium to their LPA
Auto’s valuation at 17% premium to its LPA
P/E (x)
60.0
Avg (x)
Max (x)
Min (x)
53.5
+1SD
-1SD
40.0
22.1
9.8
32.5
11.6
25.7
20.0
0.0
Consumer sector’s P/E at a 31% premium to its LPA
P/E (x)
60.0
48.0
36.0
24.0
12.0
36.9
29.8
21.5
Avg (x)
Max (x)
49.3
44.0
Min (x)
+1SD
-1SD
48.2
CHART BOOK | September 2024
32
June 2020
 Motilal Oswal Financial Services
Sectoral valuations: Healthcare and capital goods trading at a premium to their LPA
Healthcare’s valuation at a 41% premium to its LPA
P/E (x)
36.0
28.0
20.0
12.0
4.0
23.9
18.6
15.2
Avg (x)
Max (x)
34.3
29.2
Min (x)
+1SD
-1SD
33.7
Capital goods’ P/E at a 61% premium to its LPA
P/E (x)
52.0
40.0
28.0
16.0
4.0
27.2
21.6
16.0
Avg (x)
Max (x)
46.7
32.8
Min (x)
+1SD
-1SD
43.6
CHART BOOK | September 2024
33
June 2020
 Motilal Oswal Financial Services
Top ideas within the MOFSL Universe
MCap
Company
Preferred large-cap stocks
ICICI Bank
101.7
St Bk of India
86.7
Hind. Unilever
78.0
Larsen & Toubro
60.4
HCL Technologies
56.7
M&M
40.9
Coal India
39.0
Titan Company
37.5
Hindalco Inds.
18.8
Mankind Pharma
11.6
Preferred mid-cap/small-cap stocks
Indian Hotels
Godrej Properties
Ashok Leyland
Persistent Sys
Kalyan Jewellers
KEI Industries
Metro Brands
PNB Housing
Angel one
Cello World
11.0
9.5
8.9
9.3
7.5
4.9
4.2
2.9
2.6
2.2
1,230
816
2,778
3,703
1,752
2,806
525
3,567
701
2,488
648
2,909
256
5,167
615
4,601
1,309
976
2,585
903
58
75
44
94
58
89
61
39
46
48
9
27
9
75
6
64
13
58
136
16
64
89
48
106
62
106
62
46
61
54
11
52
12
89
8
80
15
70
180
19
73
103
54
136
69
125
68
57
64
62
13
34
15
114
11
99
18
89
206
24
12.0
17.1
10.8
20.0
8.8
18.5
5.9
20.4
18.1
14.4
20.5
13.1
26.3
23.2
39.6
24.0
19.2
23.7
23.1
23.1
21.1
10.8
63.6
39.2
30.3
31.6
8.7
90.8
15.4
52.1
73.1
108.2
28.0
68.8
106.1
71.4
102.7
16.8
19.0
57.9
19.2
9.1
58.0
35.0
28.1
26.4
8.5
77.6
11.5
45.7
61.7
55.9
21.7
58.1
73.0
57.5
88.5
14.0
14.4
48.2
16.8
7.9
51.8
27.2
25.6
22.5
7.7
62.7
11.0
39.8
50.4
84.5
17.6
45.3
54.4
46.4
72.3
11.0
12.6
38.2
3.6
1.8
12.7
5.9
6.9
6.4
3.9
33.8
1.9
10.6
9.7
8.1
8.5
15.9
15.1
13.2
18.6
1.7
7.0
16.7
3.1
1.6
12.5
5.2
7.2
5.4
3.2
25.9
1.7
9.1
8.5
7.1
7.2
14.0
13.1
10.8
15.8
1.5
3.6
12.5
2.7
1.3
12.1
4.5
7.3
4.5
2.7
20.1
1.5
7.7
7.3
6.5
5.9
12.1
11.2
8.9
13.4
1.3
3.0
9.5
18.9
18.8
20.2
14.8
23.5
22.3
45.2
32.9
13.6
22.8
14.4
7.8
31.1
25.6
15.3
18.5
20.3
11.6
43.3
28.8
17.7
18.8
21.8
15.8
25.4
22.3
37.7
37.8
15.8
21.4
14.7
13.5
35.9
25.8
19.3
18.9
19.8
11.4
32.9
26.0
17.3
18.2
23.7
17.8
28.2
21.9
34.5
36.1
14.4
20.9
15.6
8.0
36.8
28.9
22.2
19.2
20.5
13.0
26.1
24.9
(USDb)
CMP
(INR)
FY24
EPS (INR)
FY25E
FY26E
EPS
CAGR (%)
FY24-FY26E FY24
PE (x)
FY25E FY26E
FY24
PB (x)
FY25E FY26E
FY24
ROE (%)
FY25E FY26E
Note: LP = Loss to Profit; large-cap, mid-cap, and small-cap stocks listed above are as per the SEBI Categorization.
CHART BOOK | September 2024
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 Motilal Oswal Financial Services
Quant Research & India Strategy Gallery
CHART BOOK | September 2024
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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
expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject
MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities and Futures Commission (SFC) pursuant to the Securities
and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal Oswal 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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 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
Singapore. As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary
Authority of Singapore. Persons in Singapore should contact MOCMSPL in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as
“Institutional Investors”, of which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the SFA”). Accordingly, if a Singapore person is
not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and inform MOCMSPL.
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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June 2020
 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
any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication,
availability or use would be contrary to law, regulation or which would subject MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all
jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. Neither the Firm, not its directors, employees, agents or
representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information. The person accessing
this information specifically agrees to exempt MOFSL or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for
any such misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and
delays.
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
Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 71881000. Details of Compliance Officer: Neeraj Agarwal, Email Id: na@motilaloswal.com, Contact No.:022-40548085.
Grievance Redressal Cell:
Contact Person
Ms. Hemangi Date
Ms. Kumud Upadhyay
Mr. Ajay Menon
Contact No.
022 40548000 / 022 67490600
022 40548082
022 40548083
Email ID
query@motilaloswal.com
servicehead@motilaloswal.com
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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June 2020