India Strategy
Gautam Duggad
Gautam.Duggad@motilaloswal.com
Deven Mistry
Deven@motilaloswal.com
The Eagle Eye
January 2025
June 2020
Anshul Agarawal
Aanshul.Agarawal@motilaloswal.com
Abhishek Saraf
Abhishek.Saraf@motilaloswal.com
1
 Motilal Oswal Financial Services
CONTENT
GLOBAL MARKETS
US outperforms key equity indices
in CY24; India outpaces most EMs
MSCI India outperforms MSCI EM
by 6pp in CY24
India remains among the top five
markets of the decade
DOMESTIC MARKETS
Nifty-50 clocks nine consecutive
years of positive returns
Mid-and small-caps outperform
large-caps over a 1-yr/3-yr/5-
yr/10-yr/15-yr/20-yr period
Healthcare & Real Estate sectors
among the top gainers in CY24
FLOWS AND VOLUMES
DII inflows break all records, while
FIIs post marginal outflows in CY24
Monthly average cash volumes
inch up; F&O volumes dip sharply
CY24 – A blockbuster year:
Multiple sectors jump on the IPO
bandwagon
KEY RESEARCH REPORTS
Indian Capital Market |Thematic:
A golden era!
P N Gadgil Jewellers – Initiating
Coverage: Strengthening retail
presence with trust
Anant Raj – Initiating Coverage:
Riding India's data center
localization wave
MULTI-YEAR HIGHS
Mid-and small-cap
contributions to market cap at
all-time highs
INR remains less volatile vs.
other key currencies in CY24
Key input commodity prices,
barring palm oil, remain range-
bound in CY24
VALUATIONS
The 12-month trailing P/E for the
Nifty stands at 22.6x, near its LPA.
Nifty’s 12-month forward P/E
trades at 19.9x, at its LPA.
India’s market capitalization-to-
GDP ratio at an all-time high on a
year-end basis
CHART BOOK | January 2025
2
June 2020
 Motilal Oswal Financial Services
A view from the EAGLE’S EYE!
CHART BOOK | January 2025
3
June 2020
 Motilal Oswal Financial Services
KEY EXHIBITS Nifty-50 clocks nine consecutive years of positive returns!
Indian markets have once again celebrated a year of gains, marking a historic milestone with nine consecutive years of positive returns.
Please refer to our recent year-end Strategy report:
“On cloud 9 with a tinge of grey!”
Over the last nine years, mid-caps have delivered seven and small-caps have reported six years of positive returns
Nifty50
56
55
Nifty Midcap 100
Nifty Smallcap 100
59
46
22
21
24
4
-4
-15
-29
4
20
9
47
24
24
56
57
47
31
6
-4
7
3
7
2
29
12
3
15
-10
-14
CY14
CY15
CY16
CY17
CY18
CY19
CY20
CY21
CY22
CY23
CY24
Large-caps outperformed mid- and small-caps between CY14 and CY19
Nifty50
Nifty Midcap 100
Nifty Smallcap 100
(indices rebased to 100)
In contrast, mid- and small-caps outperformed large-caps between CY19
and CY24
Nifty50
Nifty Midcap 100
Nifty Smallcap 100
(indices rebased to 100)
180
155
130
105
80
340
260
180
100
20
334
322
147
136
111
194
CHART BOOK | January 2025
4
June 2020
 Motilal Oswal Financial Services
Mid- and small-caps outperform large-caps over a 1-yr/3-yr/5-yr/10-yr/15-
KEY EXHIBITS
yr/20-yr period
Nifty-50’s one-year return remains below its long-period CAGR, while that of mid-caps and small-caps remains above.
Nifty50, Nifty Midcap100, Nifty Smallcap 100 indices’ returns
1-yr
24
3yr CAGR (%)
27
23
24
5yr CAGR (%)
10yr CAGR (%)
26
15yr CAGR (%)
20 yr CAGR (%)
14
11
9
16
11
11
13
15
16
18
18
14
12
14
15
14
13
12
13
Nifty50
Nifty Midcap 100
Nifty Smallcap 100
Nifty 500
Pharma, Real Estate, Cap. Goods, and Auto the best-performing indices YoY; Cap Goods and Auto outperformed in most of the periods
Date
CY24 (YoY)
3yr CAGR (%)
5yr CAGR (%)
10yr CAGR (%)
15yr CAGR (%)
20 yr CAGR (%)
Auto
23%
28%
23%
11%
14%
16%
Capital
Goods*
22%
33%
32%
16%
11%
17%
IT
22%
4%
23%
14%
14%
14%
BANK
5%
13%
10%
11%
12%
14%
PSU
Bank
14%
37%
21%
4%
5%
8%
Pvt.
Bank
0%
11%
7%
10%
14%
-
Pharma
39%
18%
24%
8%
13%
13%
Real
Estate
34%
30%
29%
18%
5%
-
FMCG
0%
15%
14%
11%
15%
16%
Metal
8%
16%
25%
13%
4%
11%
Energy
5%
16%
17%
15%
9%
12%
Media
-24%
-6%
0%
-3%
1%
-
*BSE Capital goods index
CHART BOOK | January 2025
5
June 2020
 Motilal Oswal Financial Services
KEY EXHIBITS India remains among the top five markets of the decade
India remains the best-performing market between Dec’04 and Dec’14
Dec’04-Dec’14 CAGR (%)
(in USD)
11
8
7
7
7
6
6
5
4
4
3
1
0
Note: INR depreciated 31.1% vs USD between Dec’04-Dec’14
...and remains among the top five performers between Dec’14 and Dec’24; it also remains the best-performing EM of the decade
15
11
Dec’14- Dec’24 CAGR (%)
(in USD)
9
8
6
5
3
1
0
0
0
-1
-4
Note: INR depreciated 27.8% vs USD between Dec’14-Dec’24
CHART BOOK | January 2025
6
June 2020
 Motilal Oswal Financial Services
KEY EXHIBITS INR remains less volatile vs. other key currencies in CY24
The USD appreciated 7%, while the UK (GBP)/ India (INR)/China (CNY)/Europe (EUR)/Japan (YEN) depreciated 2%/3%/3%/6%/10% in CY24.
Currency movement rebased to 100
USA (DXY)
105
100
95
India (INR)
China (CNY)
Europe (EUR)
UK (GBP)
Japan (YEN)
107
98
97
97
94
90
90
85
INR depreciated 31.1% vs. USD between Dec’04 and Dec’14; while it depreciated 27.8% between Dec’14 and Dec’24
12
5
2
5
4
INR: USD YoY change (%)
6
-4
-3
-11
-16
-19
-2
-5
-3
-8
-2
-2
-2
-10
-1
-3
CHART BOOK | January 2025
7
June 2020
 Motilal Oswal Financial Services
KEY EXHIBITS
Mid- and small-cap contributions to market cap at all-time highs
Mid- and small-caps saw a notable surge in market cap contribution due to a spike in their valuations. In contrast, large-cap contribution was at an all- time low.
Market cap contribution of large-caps has been down 1,580bp from Mar’20 highs to 59.7% in Dec’24, while that of mid-caps and small-caps rose 420bp and
1,160bp to all-time highs of 19.3% and 21.0%, respectively.
Market cap contribution trend (%)
Market cap contribution (%)
100
7.2 (low)
90
8.6
251 onwards (SMALL)
21.0 (high)
9.5 (low)
80
10.8
101 to 250 companies (MID)
80.6
70
19.3 (high)
Top 100 companies (LARGE)
83.0 (high)
60
59.7 (low)
Note: Small-caps include all listed companies, smaller than 251
st
rank onwards
CHART BOOK | January 2025
8
June 2020
 Motilal Oswal Financial Services
KEY EXHIBITS Primary market issuances buoyant, with limited impact on the overall market
Fund mobilization in public markets remained strong in CY24 (INR b)
Year
CY14
CY15
CY16
CY17
CY18
CY19
CY20
CY21
CY22
CY23
CY24
IPOs
15
139
270
760
335
178
313
1,314
613
576
1,717
FPOs
5
0
0
0
0
0
150
0
43
0
182
IPOs + FPOs
20
139
271
760
335
178
463
1,314
656
576
1,899
OFS
47
355
125
193
132
264
215
240
112
189
305
QIPs
321
189
48
587
165
352
805
420
117
523
1,348
Total Equity
388
683
443
1,540
632
794
1,483
1,974
886
1,289
3,551
Contributions of new listings to the total listed market cap have witnessed an uptick in CY24
India Mkt Cap (INR t)
3.7
Contribution through new listing (%)
3.4
2.8
1.4
3.3
1.7
1.2
1.6
0.8
1.3
0.2
98
100
106
152
145
156
189
267
283
366
445
CY14
CY15
CY16
CY17
CY18
CY19
CY20
CY21
CY22
CY23
CY24
CHART BOOK | January 2025
9
June 2020
 Motilal Oswal Financial Services
KEY EXHIBITS
CY24 – A blockbuster year: Multiple sectors jump on the IPO bandwagon
The Indian IPO market has experienced an impressive year, with equity issuances across various categories surging ~3x compared to the previous year.
Refer to our recent Strategy report –
“Resilience fuels fundraising momentum!”
Trend in equity raising through IPO and FPOs (INR b)
IPOs
FPOs
No of companies
242
169
49
63
94
166
121
68
760
150
5
15
CY14
139
CY15
270
CY16
CY17
335
CY18
178
CY19
313
CY20
CY21
CY22
CY23
CY24
47
1,314
43
613
576
1,717
151
336
182
Funds raised via QIPs at an all-time high
QIPs
No of companies
99
34
43
30
17
26
11
587
CY17
165
CY18
352
CY19
805
CY20
25
35
14
43
321
CY14
189
CY15
48
CY16
420
CY21
117
CY22
523
CY23
1348
CY24
CHART BOOK | January 2025
10
June 2020
 Motilal Oswal Financial Services
KEY EXHIBITS
The GoI is likely to fall short of its FY25 capex target
The GoI’s spending surged 3.3x in just five years from INR3.4t in FY20. Excluding L&As, the Center’s capex has been budgeted at INR9.2t in FY25BE. The
Center’s capex declined 13.5% YoY in 1HFY25, achieving only 39.1% of BE in 1HFY25, compared to 50% each in the last two years. The capex was the
lowest during the corresponding period in the past decade (except 1HFY21).
It is highly likely that fiscal capex will pick up in 2HFY25. Assuming the combined (Center + State) capex could grow ~30% YoY in 2HFY25, following 17%
growth in 2HFY24, it would then be 90% of BEs in FY25, similar to that in the last two years.
Total capital spending of the Central Govt. budgeted at INR11.1t in FY25….
Capex (Excl. L&As)
(INRt)
9.5
7.4
5.9
2.5
2.3
2.9
2.5
FY17
2.6
2.4
3.1
2.8
FY19
3.4
3.1
4.3
5.3
3.2
FY21
FY23
FY25BE
7.9
9.2
37.9
1HFY15
47.9
40.6
1HFY17
46.9
54.6
1HFY19
55.6
39.0
1HFY21
40.8
52.3
1HFY23
49.7
1.6
-1.2
-14.6
Loans & advances
Total capital spending
11.1
1.9
35.2
20.3
13.5
-14.0
-13.5
…but it declined 13.5% YoY in 1HFY25, reaching only 39.1% of FY25BE
Center's capex
42.2
% of BEs
% YoY (rs)
52.2
41.3
30.2
1.7
1.5
FY13
1.9
1.7
2.0
1.7
FY15
6.2
39.1
1HFY25
Center’s capex increased 14.6% YoY in 2QFY25, following a contraction of
35.4% YoY in 1QFY25…
Center's capex^ (% YoY)
110
70
30
-10
-35.4
-50
2QFY19 1QFY20 4QFY20 3QFY21 2QFY22 1QFY23 4QFY23 3QFY24 2QFY25
14.6
…which implies that it must grow at 50.5% YoY in 2HFY25 to achieve the
full-year target
Center's capex (% YoY)
57.1
35.5
29.6
20.2
7.4
-0.1
-25.2
2HFY15
2HFY17
2HFY19
2HFY21
2HFY23
2HFY25
8.8
16.4
50.5
21.9
CHART BOOK | January 2025
11
June 2020
 Motilal Oswal Financial Services
KEY EXHIBITS
Banks CD ratio displays some improvement, albeit through a moderation
in loan growth
In 3QFY25, systemic loan growth stood at 11.5% YoY, the same as deposit growth.
Incremental LD ratio has moderated to <80% (~100% in Jul’24) – though outstanding still remains elevated at ~80%.
While FY25E credit growth will remain lower at ~11%, we expect an uptick in loan growth to 12.5% in FY26.
Loan growth moderated to 11.5%
Loans (INR t)
Chg YoY (%)
Deposit growth broadly stable at 11.5%
Deposits (INR t)
Chg YoY (%)
Systemic credit growth has declined to ~11.5% from the recent high of ~16.0% amid a slowdown in unsecured retail and other secured segments
Indian Banking system Loan growth YoY (%)
15.0%
12.2%
10.2%
9.4%
6.1%
4.7%
5.6%
13.3%
11.0%
8.6%
16.3%
12.5%
13.9%
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
FY25E
FY26E
CHART BOOK | January 2025
12
June 2020
 Motilal Oswal Financial Services
KEY EXHIBITS
Earnings cuts to result in moderate growth in FY25
As of 3QFY25, MOFSL Universe experienced 8% and 7% moderation in earnings vs. the projected FY25E and FY26E earnings, respectively.
We now expect FY25 and FY26 earnings to grow ~4% and 20%, respectively.
MOFSL earnings likely to grow 4% in FY25
MOFSL PAT (INR B)
YoY growth (%)
29.1
11.0
10.4
2.9
2.5
1.2
3.7
-5.4
36.8
30.4
20.2
14.5
9.4
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
FY25E
FY26E
MOFSL earnings cut between 1QFY25 and 3QFY25
FY25E
0%
-2%
-4%
-3%
-4%
-4%
-5%
-8%
2QFY25
3QFY25
-7%
FY26E
MOFSL Earnings cut QoQ (%)
-6%
-8%
-10%
Total earnings cut since 1QFY25
CHART BOOK | January 2025
13
June 2020
 Motilal Oswal Financial Services
KEY EXHIBITS Key non-agri commodity prices remain range bound, while agri-commodity
prices remain high
Crude prices remained range bound in the last two years
Brent Crude
Palm oil price up 35% YoY; however, it was down 4% MoM
Palm Oil (MYR/MT)
8,077
4,743
Avg: USD 66
74
Avg: MYR 3,236
Wheat prices inflate 17% YoY in CY24, up 4% MoM in Dec’24
Wheat (INR/quintal)
3,013
Maize prices rose 14% YoY in CY24, up 1% MoM in Dec’24
Maize (INR/quintal)
2,455
Avg: INR2,023
Avg: INR1,963
HRC prices continue to moderate from CY22 highs
Average monthly HRC prices (INR/t)
76,725
HRC (INR t)
TMT prices remain range bound in the last one year
73,225
Average monthly TMT prices (INR/t)
TMT (INR/t)
47,110
53,100
CHART BOOK | January 2025
14
June 2020
 Motilal Oswal Financial Services
Macro, Markets, and More…
CHART BOOK | January 2025
15
June 2020
 Motilal Oswal Financial Services
US outperforms key equity indices in CY24; India outpaces most EMs
Global equity indices (MoM) in USD terms (%)
10
3
0
0
0
0
MoM change (%)
-1
-2
-3
-3
-7
-7
CY24 performance of global equity indices in USD terms (%)
23
20
12
10
7
6
5
4
CY24 change (%)
-8
-21
-26
-30
CHART BOOK | January 2025
16
June 2020
 Motilal Oswal Financial Services
MSCI India outperforms MSCI EM by 6pp in CY24
Performance of the MSCI India index vs. MSCI US, MSCI World, MSCI Emerging Market, and MSCI China indices in USD terms
140
129
MSCI India
MSCI US
MSCI World
MSCI EM
MSCI China
(indices rebased to 100)
137
124
117
117
111
105
118
107
96
85
MSCI US outperforms global indices in CY24
CY24 Change(%)
24
17
(in USD)
MSCI India outperforms EMs in the last 10 years
10-yr CAGR (%)
11
(in USD)
17
11
5
8
7
1
0
CHART BOOK | January 2025
17
June 2020
 Motilal Oswal Financial Services
Nasdaq’s outperformance widens; Nifty Midcap 100 takes the second spot in the past decade
Performance of the Nifty 50, Nifty Midcap 100, and Nifty Smallcap 100 indices vs. the US Nasdaq, US S&P500, and China
(indices rebased to 100; in USD)
Nasdaq
US S&P 500
370
408
China
Nifty50
336
290
Nifty Midcap 100
286
Nifty Smallcap 100
263
Japan
210
211
174
130
91
50
Source: Bloomberg, MOFSL
Source: Bloomberg, MOFSL
CHART BOOK | January 2025
18
June 2020
 Motilal Oswal Financial Services
Mid- & small-cap indices outperform; Healthcare & Real Estate among the top gainers in CY24
Sectoral performance MoM (%): Barring Healthcare and Real Estate, most of the sectors underperform MoM
5
MoM change (%)
3
1
0
-2
-2
1
-2
-2
-3
-4
-4
-4
-6
-9
Sectoral performance CY24 (%): Healthcare and Real Estate among the top gainers; Media, Private Banks, and Consumer among the key laggards
39
24
9
24
34
23
22
22
16
14
8
CY24 change (%)
5
0
0
-24
Note: (*) represents BSE capital goods index.
CHART BOOK | January 2025
19
June 2020
 Motilal Oswal Financial Services
About 64% of Nifty constituents end higher in CY24
Among Nifty constituents, 16 companies closed higher MoM and 23 underperformed the benchmark.
About 32 Nifty constituents traded higher in CY24. Trent, MM, and Bharat Electronics were the top gainers, whereas IndusInd Bank,
Asian Paints, and Nestle were the key laggards.
Best and worst Nifty performers on a MoM basis (%)
15
7
6
5
4
4
4
3
3
2
-2
-6
-6
-7
-7
-7
-8
-8
-8
-8
-13
Best and worst Nifty performers – CY24 (%)
133
74
59
54
50
41
34
31
30
30
9
-7
-7
-11
-11
-11
-13
-15
-18
-33
-40
CHART BOOK | January 2025
20
June 2020
 Motilal Oswal Financial Services
About 34% of BSE-200 constituents end higher in Dec’24
In Dec’24, 67 companies closed higher. One97, Indian Hotels, and Zomato gained the most during this month.
About 146 of the BSE-200 constituents traded higher in CY24. Oracle Fin. Services, Dixon, and RVNL were the top gainers.
Top gainers from the BSE-200 pack on a MoM basis (%)*
19
17
16
16
14
13
13
13
12
12
11
11
11
10
9
9
8
8
8
8
8
7
7
7
7
7
7
6
5
5
0
Top gainers from the BSE-200 pack in CY24 (%)*
178
141 140 138
126
101 98
88
81
77
76
75
69
65
62
61
61
60
60
60
59
59
59
59
58
57
55
53
50
50
15
*The list excludes Nifty constituents.
CHART BOOK | January 2025
21
June 2020
 Motilal Oswal Financial Services
Around 66% of BSE-200 constituents end lower in Dec’24
In Dec’24, 133 companies closed lower. Adani Green, NMDC, and Siemens were among the key laggards.
About 54 of the BSE-200 companies traded lower in CY24. Adani Green, AU SFB, and IDFC First Bank were the key laggards.
Key laggards among the BSE-200 constituents on a MoM basis (%)*
-2
-10
-14
-12 -12 -12 -11 -10
-14 -13 -13
-21
-9
-9
-9
-9
-9
-9
-9
-8
-8
-8
-8
-8
-8
-8
-8
-7
-7
-7
-7
Key laggards among the BSE-200 constituents in CY24 (%)*s
13
-10 -10 -10 -10
-15 -13 -13 -13 -13 -11 -11 -11 -11
-19
-26 -23 -23 -22
-22
-35 -29 -29
-9
-9
-9
-8
-8
-7
-6
-6
*The list excludes Nifty constituents.
CHART BOOK | January 2025
22
June 2020
 Motilal Oswal Financial Services
Nifty composition: Weights of Telecom, Retail, Auto, Cap Goods, and Technology expand,
while those of Consumer, Private Banks, and O&G reduce in CY24
In Dec’24, Healthcare and Technology’s weights rise, while those of O&G, Utilities, and Metals witness a reduction MoM
Sector
Automobiles
Banks – Private
Banks – Public
NBFC + Insurance
Capital Goods
Cement
Consumer
Healthcare
Metals
Oil and Gas
Reliance
Retail
Telecom
Technology
Utilities
Miscellaneous
Nifty
Dec’08
2.5
5.0
5.4
2.3
7.7
1.7
6.5
2.6
4.8
24.5
10.6
0.0
11.6
9.0
13.3
3.3
100
Dec’12
8.8
16.9
4.7
7.9
5.9
4.2
12.3
5.0
3.8
12.3
7.4
0.0
2.0
11.4
4.5
0.5
100
Weightage in the Nifty (%)
Dec’20
Dec’21
Dec’22
Dec’23
5.4
5.0
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
3.0
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
4.0
2.0
2.9
2.9
3.0
12.5
12.3
12.1
10.5
10.7
10.8
11.0
9.2
1.1
1.4
1.4
1.6
2.0
2.1
2.5
2.7
16.3
19.1
14.0
13.6
2.1
2.1
2.5
3.6
1.0
1.2
2.6
1.9
100
100
100
100
Nov’24
7.4
27.0
3.0
4.5
5.1
2.1
9.0
3.9
2.8
9.5
8.1
2.6
4.0
13.8
3.8
1.3
100
Dec’24
7.4
27.1
2.9
4.6
5.0
2.1
9.0
4.2
2.7
9.2
7.8
2.8
4.0
14.1
3.6
1.4
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 | January 2025
23
June 2020
 Motilal Oswal Financial Services
DII inflows break all records, while FIIs post marginal outflows in CY24
FIIs bought USD1.3b worth of Indian equities in Dec’24, while DIIs invested USD4.0b, clocking 17 subsequent months of inflows.
In CY24, net FII outflows stood at USD0.8b. DII inflows over the past 12 months (at ~USD63b) have exceeded the combined DII inflows of CY22 and
CY23.
Monthly institutional flows (USD b)
FII(USD b)
5.0
1.8 1.9
-0.2
6.7
7.0
4.1
1.7
2.3
0.5
-1.1
-3.0
4.0
3.1 3.3
1.4
DII (USD b)
5.9
12.8
1.3
2.9
4.1
2.3
0.3
3.7
0.5
-0.3
3.0 2.4 3.4
3.2
3.1
6.8
5.3
1.7 1.6
6.7
3.4 2.8
5.8
3.8
5.3
-0.6
4.0
-3.7
-2.3-2.7
-3.1
-2.2
-0.4
-10.9
Yearly institutional flows (USD b)
FII(USD b)
14.2
7.7
3.8
14.0
15.9
6.0
12.1
23.4
DII(USD b)
62.9
21.4
32.2
22.3
-0.8
-4.6
-17.0
-5.0
CHART BOOK | January 2025
24
June 2020
 Motilal Oswal Financial Services
Monthly average cash volumes rise marginally; F&O volumes decline sharply
Monthly average cash volumes improved 3% MoM in Dec’24; however, volumes dipped 33% from the highs of Jun’24 to INR1.1t.
Non-institutional participation accounted for 49% of the total cash volumes.
Monthly average F&O volumes declined 33% MoM to an 18-month low of INR296t (down 45% from the Sep’24 highs).
Monthly Avg. Cash Volume (INR b)
1830
1550
66
1270
990
49
54
42
430
150
30
Non Institution % to Cash Volume (RHS)
78
710
Monthly Avg F&O Volume (INR t)
600
500
Cash % to Total Volumes
7.0
5.3
400
300
200
1.8
100
0.4
3.5
0
0.0
CHART BOOK | January 2025
25
June 2020
 Motilal Oswal Financial Services
The 10-year yield spread between India and the US contracts MoM
India’s bond yield remained flat at 6.8% MoM, while the US bond yield rose 4.6% MoM in Dec’24. The yield spread dropped marginally MoM to
2.2% in Dec’24.
India 10-year yield
12.0
India’s fiscal tightening,
strong economic growth led by
the global book, and Fed raises
rates
GFC
Fed cuts rates to zero
after the GFC
Fed raises rates
US 10-year yield
9.0
Fed easing,
US-Sino trade
war, and
Covid-19
Fed starts easing
rates, geopolitical
uncertainty
sustains, bond
Fed tightening,
yields moderate
geopolitical
from the highs
uncertainties, and
a sharp rise in
bond yields
6.8
6.0
1.3
6.9
6.0
3.9
2.2
4.6
4.4
3.0
0.0
Source: Bloomberg, MOFSL
CHART BOOK | January 2025
26
June 2020
 Motilal Oswal Financial Services
Forex reserves moderate for the third consecutive month to USD644b
India’s forex reserves declined 2% MoM to USD644b in Dec’24 (down ~9% from the Sep’24 highs of USD705b).
On the currency front, INR:USD declined 1.3% MoM to an all-time low of INR85.6.
Forex Reserves (USD b) (RHS)
USD:INR
Pandemic impact and
geopolitical tensions, high
liquidity initially followed by
quantitative tightening, sharp
currency depreciation, but
resilient economy
95
80
INR had its best run
during the CY03-07 global
bull run when GDP
growth and corporate
earnings growth were
high and the twin deficits
– CAD and FD – were
among the lowest in two
decades
Eurozone crisis, taper tantrum, and
devaluation of RMB – the taper tantrum
episode in CY13 drove the INR down
sharply to 68 from 55 in just four
months. This was a period of high
inflation and INR depreciation
Low inflation has characterized
the period post-CY15. INR has
been relatively less volatile,
despite several global
headwinds. Forex reverses are
surging
600
400
65
Pre GFC peak
in FX reserves
50
200
35
0
Source: Bloomberg, MOFSL
CHART BOOK | January 2025
27
June 2020
 Motilal Oswal Financial Services
Key reports from MOFSL’s research desk in Dec’24
Indian Capital Market: A golden era!
Report link>>
Strong growth visibility with high RoE and superior cash generation
We believe the remarkable growth of the Indian Capital market in the past five years marks the beginning of a sustained,
multi-year structural uptrend, fueled by favorable demographic trends as more individuals enter the workforce,
contributing to the expansion of the middle class. Digital enablers such as E-KYC, UPI, and Account Aggregation have
played a key role in facilitating this growth. Regulatory reforms have further strengthened the ecosystem, enhancing
transparency and security for investors. Consequently, we believe AMCs, exchanges, brokers, wealth managers, and
other intermediaries are well-positioned to capitalize on these emerging trends.
Our preferred picks: Among AMCs, we prefer
HDFC AMC and Nippon AMC,
while
Angel One
in the Broking space.
Among Exchanges, we like
BSE.
Among Wealth Managers, we like
Nuvama
and
360 One WAM.
Among Intermediaries,
we prefer
CAMS.
We have Buy on
UTI AMC
&
ABSL AMC
and neutral on
MCX, Anand Rathi, KFin, Prudent and CDSL.
P N Gadgil Jewellers- Initiating Coverage: Strengthening retail presence with trust
Report link>>
P N Gadgil Jewellers (PNG) is the second-largest jewelry retail chain in Maharashtra, with a total store count of over 48
stores as of now (12 addition in FY25YTD). The company reported INR61b revenue in FY24.
PNG aims to become the leading jewelry retailer in Maharashtra within a few years. The company is focused on
enhancing its product mix by increasing the proportion of studded jewelry.
The company is anticipated to deliver 23%/31%/36% revenue/EBITDA/PAT CAGR during FY24-27 fueled by: 1) a robust
30% store CAGR, 2) a favorable market presence in Maharashtra, characterized by a strong trend toward formalization
and a high proportion of studded jewelry, and 3) an improving product mix, enhanced sourcing strategies, and debt
reduction, which are likely to expand the PBT margin to 4.6% in FY27E from 3.4% in FY24. We initiate coverage on the
stock with a BUY rating and a TP of INR950 (based on 35x Dec'26E P/E).
Anant Raj: Initiating Coverage
Report link>>
Riding India's data center localization wave
Diversification in progress…:
Anant Raj (ARCP) is transitioning from its stronghold in real estate to a diversified business
model with strategic investments in data centers (DCs) and cloud services.
…with intense focus on profitability:
ARCP's foray into higher-margin cloud services (IaaS) in partnership with Orange
enhances its profitability potential, with cloud capacity projected to rise to 25% by FY32. Its residential business remains
robust, with 14msf deliveries expected by FY30, generating a cumulative NOPAT of INR85.1b.
Multiple growth levers at play:
Strong pre-sales, collections, and operational cash flows underpin ARCP’s growth. While
execution risks remain, we expect significant revenue and EBITDA margin expansion, driving long-term value creation.
We initiate coverage on the stock with a BUY rating and a TP of INR1,100
CHART BOOK | January 2025
28
June 2020
 Motilal Oswal Financial Services
Valuations: Key observations
CHART BOOK | January 2025
29
June 2020
 Motilal Oswal Financial Services
Valuations: Nifty’s 12-month trailing P/E above its LPA
The 12-month trailing P/E for the Nifty stood at 22.6x, near its LPA.
At 3.6x, the 12-month trailing P/B was 16% above its historical average of 3.1x.
12-month trailing Nifty P/E (x)
30.0
25.0
20.0
15.0
10.0
Long-term average: 22.7x
22.6
12-month trailing Nifty P/B (x)
4.5
3.9
3.3
2.7
2.1
1.5
Long-term average: 3.1x
3.6
CHART BOOK | January 2025
30
June 2020
 Motilal Oswal Financial Services
Valuations: Nifty’s 12-month forward P/E near its LPA
Nifty’s 12-month forward P/E traded at 19.9x, at its LPA.
At 3.2x, the 12-month forward P/B was trading at a premium of 14% to the Nifty’s historical average of 2.8x.
12-month forward Nifty P/E (x)
30
25
Long-term average: 20.5x
20
19.9
15
10
12-month forward Nifty P/B (x)
4.0
3.3
Long-term average: 2.8x
2.6
1.9
1.2
3.2
CHART BOOK | January 2025
31
June 2020
 Motilal Oswal Financial Services
The 10-year G-Sec yield stands at 6.8%; EY/BY trades at LPA on a forward basis
India’s 10-year bond yield stood at 6.8% (flat MoM). As a result, EY/BY traded below LPA on a trailing basis and at LPA on a forward
basis.
Trailing Earnings Yield/G-Sec Yield (x)
1.2
Earnings Yield/G-Sec Yield
0.8
15-year average: 0.67%
0.65
0.4
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
15 Year Avg: 0.73%
It remained below 1x for the last
six years, except for a brief period
during demonetization
0.74
CHART BOOK | January 2025
32
June 2020
 Motilal Oswal Financial Services
India’s market capitalization-to-GDP ratio at an all-time high on a year-end basis
India’s market cap-to-GDP ratio was 138%; it is trading above its long-term average of ~85%.
Market capitalization-to-GDP ratio (%)
Nominal GDP growth in
FY24/FY25E: 9.6%/9.2%
GFC: Peak of 149% in Dec’07
138
Average of 85% for the period
Lowest since
the GFC
132
103
113
96
105
84
84
97
90
82
71
64
56
66
69
79
84
80
57
CHART BOOK | January 2025
33
June 2020
 Motilal Oswal Financial Services
NSE indices: Valuation snapshot – Large-caps trade below LPA, broader markets trade at a
premium
While mid-caps and small-caps declined from their Sep’24 highs, their indices continue to outperform, with Nifty Midcap and Nifty Smallcap
indices surging 24% YoY each, respectively, while Nifty-50 rose 9% in the past one year.
Among the key sectoral indices, Capital Goods, Auto, and IT were the top performers in the past one year.
Nifty-50 has been trading at its LPA, whereas most of the sectoral indices (excluding Banks) have been trading at a significant premium to their LPA.
NSE indices: Valuation snapshot
Indices
Dec’24 closing
YoY change (%)
EPS (12m fwd)
P/E (12m fwd)
P/E (10 yr
average)
P/B (12m fwd)
P/B (10 yr
average)
RoE (%)
RoA (%)
Nifty 50
23,645
9
1,061
19.8
20.5
3.2
2.8
16.3
2.9
Nifty
Midcap
100
57,199
24
1,436
39.8
22.3
5.3
2.6
11.4
2.22
Nifty
Smallcap
100
18,769
24
647
29.0
16.0
3.9
2.0
12.7
4.0
Nifty
500
22,375
15
880
25.4
19.4
3.8
2.8
14.4
2.6
Nifty
Auto
22,834
23
962
23.7
19.2
3.9
2.9
16.6
8.5
Nifty
BANK
50,860
5
3,456
14.7
15.9
2.1
2.1
13.5
1.45
Nifty
FMCG
56,800
0
1,293
43.9
33.5
10.4
8.6
23.7
23.0
Nifty IT
43,338
22
1,307
33.2
20.8
8.3
5.0
25.2
18.7
Nifty
Metal
8,650
8
453
19.1
11.0
2.3
1.3
11.6
6.2
Nifty
Energy
35,188
5
1,941
18.1
11.5
2.5
1.4
13.6
7.2
BSE
Capital
Goods
67,780
22
1,470
46.1
25.4
7.6
3.4
16.8
8.4
Source: Bloomberg, MOFSL; as of 31
st
Dec| LPA: Long Period Average i.e. 10-year average
CHART BOOK | January 2025
34
June 2020
 Motilal Oswal Financial Services
Barring Auto, Pvt. Banks, and Metals, most sectors trade at a premium to their historical
averages
Sectoral valuation comparison
PE (x)
Sector
Current
Auto
23.3
Banks - Private
15.9
Banks - PSU
7.1
NBFC
12.6
Capital Goods
39.3
Cement
36.7
Chemicals
32.5
Consumer
42.7
Consumer Ex ITC
49.0
Consumer Durables
53.4
Healthcare
33.7
Infrastructure
23.7
Logistics
24.3
Media
16.4
Metals
10.3
Oil & Gas
14.2
Oil & Gas Ex RIL
8.9
Real Estate
44.1
Retail
83.6
Technology
28.0
Telecom
Loss
Utilities
17.3
Source: Bloomberg, Cline, MOFSL
PE Std.
Deviation
Relative to
Nifty P/E (%)
Current
4.2
2.3
1.1
2.0
7.2
3.2
3.8
10.5
11.5
9.2
5.1
2.1
4.1
1.6
2.1
1.5
1.1
5.0
15.1
8.9
40.6
2.5
PB (x)
10 Yr
Avg
3.5
2.5
0.9
1.8
4.0
2.6
3.3
10.3
13.2
5.3
3.9
1.3
3.4
3.7
1.6
1.5
1.2
2.2
9.7
5.7
18.6
1.5
PB Std.
Deviation
Prem/Disc
+1SD
(%)
21.1
4.1
-9.3
2.8
33.3
1.1
7.4
2.1
78.8
5.4
20.9
3.1
16.1
4.4
1.7
11.2
-12.9 14.5
71.7
7.2
31.9
4.7
66.4
1.8
21.9
4.1
-56.2
5.5
26.9
2.0
1.6
1.7
-7.2
1.5
132.0
3.3
55.6
13.8
54.9
7.4
117.9 41.1
68.4
2.0
-1SD
2.9
2.2
0.6
1.5
2.6
2.2
2.1
9.4
12.0
3.5
3.0
0.7
2.6
1.9
1.2
1.3
0.9
1.0
5.6
4.0
-3.8
1.0
10 Yr Prem/Disc
10 Yr
+1SD -1SD Current
Avg
(%)
Avg
27.6
-15.8
36.4 18.9
17
34
21.1
-24.4
26.3 15.8
-20
2
10.0
-28.6
40.6 -20.5
-64
-55
12.4
1.6
14.7 10.1
-37
-40
28.8
36.4
34.7 22.9
98
41
28.2
30.4
35.5 20.8
85
38
24.6
31.8
34.9 14.4
64
21
41.8
2.2
45.6 38.1
115
105
51.9
-5.6
58.6 45.3
147
155
33.7
58.3
45.4 22.0
169
65
26.9
25.2
31.3 22.5
70
32
11.8
100.5
19.5
4.2
19
-42
21.2
14.6
25.2 17.3
23
4
25.0
-34.4
29.5 20.6
-17
22
10.8
-4.8
14.4
7.2
-48
-47
12.6
13.0
15.6
9.5
-28
-39
8.6
3.6
11.5
5.7
-55
-59
29.6
48.9
41.1 18.2
122
44
83.5
0.1
134.1 32.8
321
313
20.9
33.9
25.8 16.0
41
2
63.9
-
328.0 -200.2
-
209
11.5
50.2
14.9
8.2
-13
-44
Relative to
Nifty P/B
(%)
10 Yr
Current
Avg
32
22
-28
-10
-64
-70
-38
-36
127
40
1
-7
19
13
229
265
262
371
188
85
60
37
-34
-56
29
18
-49
34
-35
-43
-53
-48
-65
-57
57
-27
374
235
180
100
0
239
-21
-48
CHART BOOK | January 2025
35
June 2020
 Motilal Oswal Financial Services
Top ideas within the MOFSL Universe
Company
MCap
(USDb)
CMP
(INR)
1,798
1,599
800
1,892
3,608
3,050
3,310
271
2,873
17,947
EPS (INR)
FY24
88.2
35.9
89.3
63.7
111.1
99.7
43.0
1.1
54.6
134.3
EPS
PE (x)
PB (x)
ROE (%)
CAGR (%)
FY25E FY26E FY24-26E FY24 FY25E FY26E FY24 FY25E FY26E FY24 FY25E FY26E
100.1
45.4
98.8
71.9
137.2
116.2
53.6
3.4
60.1
177.4
115.6
60.6
115.4
80.3
160.3
136.7
64.0
7.4
76.6
232.2
14.5
30.0
13.7
12.2
20.1
17.1
22.0
157.2
18.5
31.5
20.4
44.6
9.0
29.7
32.5
30.6
76.9
243.9
52.6
133.7
18.0
35.2
8.1
26.3
26.3
26.3
61.7
79.9
47.8
101.2
15.6
26.4
6.9
23.6
22.5
22.3
51.7
36.9
37.5
77.3
2.8 2.5 2.2
10.0 7.8 6.9
1.5 1.3 1.1
7.6 7.7 7.9
5.0 4.4 3.8
6.0 5.1 4.3
24.4 19.1 15.2
10.9 9.6 7.6
10.5 9.0 7.6
43.3 30.5 21.9
14.4
24.0
18.8
25.6
16.5
21.0
35.7
4.6
21.5
38.5
14.6
27.0
17.4
29.3
17.9
20.8
34.7
12.8
20.2
35.3
14.9
30.0
17.2
33.1
18.2
20.8
32.7
23.1
21.9
33.0
Preferred large-cap stocks
HDFC Bank
159.8
Bharti Airtel
113.1
St Bk of India
84.7
HCL Technologies
60.3
Larsen & Toubro
58.3
M&M
41.7
Titan Company
34.6
Zomato
28.3
Mankind Pharma
13.6
Dixon Tech.
12.6
Preferred mid-cap/small-cap stocks
Indian Hotels
14.5
861
Cummins India
10.9
3,301
Godrej Properties
9.3
2,829
BSE
8.6
5,279
JSW Infra
7.6
323
Coforge
7.4
9,450
Kaynes Tech
5.3
7,067
IPCA Labs.
4.7
1,631
Metro Brands
3.8
1,248
Angel one
3.1
2,884
11.8
71.1
52.0
90.1
6.1
147.1
53.8
34.4
14.1
169.0
14.8
86.2
32.8
104.9
7.5
239.2
95.1
44.8
17.5
189.7
17.6
101.5
27.8
117.8
9.5
291.0
145.7
55.5
22.0
264.1
22.1
19.4
-26.8
14.3
24.8
40.7
64.6
27.0
25.0
25.0
73.0
46.4
54.4
58.6
53.2
64.3
131.4
47.4
88.5
17.1
58.1
38.3
86.3
50.3
42.9
39.5
74.3
36.4
71.2
15.2
49.0
32.5
101.6
44.8
34.2
32.5
48.5
29.4
56.6
10.9
10.9
13.2
6.9
19.5
7.5
15.2
16.0
5.8
15.2
4.0
9.2
11.6
6.4
17.4
6.6
12.9
13.1
5.1
12.9
3.5
7.8
10.2
6.0
15.6
5.8
10.8
10.3
4.5
10.8
2.9
16.2
30.1
13.5
33.3
14.9
24.6
12.9
13.0
19.0
31.2
17.2
32.3
7.7
34.7
16.4
34.9
19.4
15.0
20.1
24.5
17.3
33.4
6.1
34.9
18.1
35.7
23.9
16.3
21.3
29.0
CHART BOOK | January 2025
36
June 2020
 Motilal Oswal Financial Services
Quant Research & India Strategy Gallery
CHART BOOK | January 2025
37
June 2020
 Motilal Oswal Financial Services
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
> - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall 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 Ltd. are available on the
website at
http://onlinereports.motilaloswal.com/Dormant/documents/Associate%20Details.pdf
Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
MOFSL, it’s associates, Research Analyst or their relatives may have any financial interest in the subject company. MOFSL and/or its associates and/or Research Analyst or their relatives may have actual beneficial ownership of 1% or more securities in the subject
company at the end of the month immediately preceding the date of publication of the Research Report or date of the public appearance. MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may have any other potential
conflict of interests at the time of publication of the research report or at the time of public appearance, 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.
In the past 12 months, MOFSL or any of its associates may have:
a.
received any compensation/other benefits from the subject company of this report
b.
managed or co-managed public offering of securities from subject company of this research report,
c.
received compensation for investment banking or merchant banking or brokerage services from subject company of this research report,
d.
received compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company of this research report.
•
MOFSL and it’s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report.
•
Subject Company may have been a client of MOFSL or its associates during twelve months preceding the date of distribution of the research report.
•
Research Analyst may have served as director/officer/employee in the subject company.
•
MOFSL and research analyst may engage in market making activity for the subject company.
•
MOFSL and its associate company(ies), and Research Analyst and their relatives from time to time may have:
a) 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.
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.
To enhance transparency, MOFSL has incorporated a Disclosure of Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the report. 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.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and may not be altered in any way, transmitted to, copied or distributed, in part or in whole,
to any other person or to the media or reproduced in any form, without prior written consent of MOFSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in
nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness
or correctness. All such information and opinions are subject to change without notice. The report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as customers by virtue of their receiving this report.
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 Motilal Oswal Financial Services
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific
recommendations and views expressed by research analyst(s) in this report.
Disclosure of Interest Statement
Companies where there is interest
Analyst ownership of the stock
No
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental research and Technical Research. Proprietary trading desk of 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 Financial Services Limited (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited
for distribution of research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity to which this document relates is only available to professional
investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile
this report is/are not located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
MOTILAL Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition MOFSL is not a registered
investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under
applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by MOFSL, including the products and services described herein are not available to or intended for U.S.
persons. This report is intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This document must not be acted on
or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the
exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional
Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the
provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule
2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets (Singapore) Pte. Ltd. (“MOCMSPL”) (UEN 201129401Z), which is a holder of a capital markets services license and an exempt financial adviser in Singapore.This report is distributed solely
to persons who (a) qualify as “institutional investors” as defined in section 4A(1)(c) of the Securities and Futures Act of Singapore (“SFA”) or (b) are considered "accredited investors" as defined in section 2(1) of the Financial Advisers Regulations of Singapore read
with section 4A(1)(a) of the SFA. Accordingly, if a recipient is neither an “institutional investor” nor an “accredited investor”, they must immediately discontinue any use of this Report and inform MOCMSPL .
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
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 Motilal Oswal Financial Services
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form,
without prior written consent. This report and information herein is solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this
report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all
investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of
this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult its own advisors to
determine the merits and risks of such an investment. The investment discussed or views expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade
securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions contained in this document. The Disclosures of Interest
Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to
make modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from time to time, effect or have effected an own account transaction in, or deal as
principal or agent in or for the securities mentioned in this document. They may perform or seek to perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities
functions as a separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already available in publicly accessible media or developed
through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or
passed on, directly or indirectly, to any other person or published, copied, in whole or in part, for 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