5 August 2019

Update | Sector: Financials

AU Small Finance Bank

BSE SENSEX S&P CNX
36,700 10,863 CMP: INR638 TP: INR760 (+19%) Buy
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the Asiamoney Brokers Poll 2019 for Takeaways from the First Annual Investor & Analyst Day
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We attended AUBANK’s first Annual Investor & Analyst Day, wherein the entire top
management team, led by MD & CEO – Mr. Sanjay Agarwal and Executive Director – Mr.
Uttam Tibrewal, highlighted the bank’s progress in different businesses. Management
shed light on the bank’s strategy to transform into a ‘Universal’ bank by FY22, by (a)
maintaining strong competitive positioning, and (b) delivering sustainable growth across
business segments. AUBANK remains confident of deepening its presence by offering full
product suite to customers, while strong analytics and targeted customer servicing
Stock Info should enable higher relationship value. Management aims to build a granular retail
Bloomberg AUBANK IN deposit franchise ensuring stability in its funding cost while effective use of technology
Equity Shares (m) 292 and data analytics should enable higher cross sell and cost optimization. Following are
M.Cap.(INRb)/(USDb) 186 / 2.6
the key takeaways:
52-Week Range (INR) 745 / 502
1, 6, 12 Rel. Per (%) 0/7/-1
12M Avg Val (INR M) 332 Key takeaways from session with Mr. Sanjay Agarwal – MD & CEO
Free float (%) 67.8  AUBANK has a dominantly secured loan portfolio; it does not foresee any
Financials Snapshot (INR b) major concerns on asset quality. Focus remains on small ticket size, secured
Y/E March FY19 FY20E FY21E and retail loans.
NII 13.4 19.7 27.0  Post the NBFC crisis, pricing power has improved resulting in an increase in
PPP 7.2 10.7 15.1
yields by ~200bp over the past two quarters. ~90% of the retail loans have an
PAT 3.8 5.5 7.8
average yield of ~15%, and thus, risk adjusted yields have become attractive.
NIM (%) 5.2 5.2 5.3
EPS (INR) 13.2 18.6 25.8  The bank is continuously investing in technology and franchise to support
EPS Gr. (%) 28.9 41.0 38.4 business growth momentum with an increased focus on cost control.
BV/Sh. (INR) 100.7 133.0 158.8  AUBANK has reached a total customer base of ~1.52m (+5.4x) while branch
ABV/Sh. (INR) 101.1 131.9 155.4 count has increased to 558 v/s 300 two years ago. The bank is focused on
RoE (%) 14.7 15.9 17.7 increasing the use of Business Correspondents (BC) and might add a few more.
RoA (%) 1.5 1.5 1.5  The bank has funded ~2,100 home loans with total AUM of INR2.1b.
Valuations  ~0.1m customers contact the bank daily, including both physical and online.
P/E(X) 48.3 34.2 24.7
P/BV (X) 6.3 4.8 4.0
 Commercial banking should play an important role, and thus, is a new focus
P/ABV (X) 6.3 4.8 4.1 area for the bank with the team reporting directly to the MD & CEO.
 The bank has guided for an AUM growth of 35-40% CAGR with a total assets
Stock Performance (1-year)
AU Small Finance
base of ~USD10b by FY22. Further, it is targeting deposits to fund ~80% of the
Sensex - Rebased total AUM. The bank aspires to eventually become a ‘Universal’ bank.
800
 The bank has guided for one more round of capital raise over the next ten
700 quarters to support its growth ambitions.
600
Valuation view
500 AUBANK is swiftly increasing its focus towards the high- yielding used vehicle
Nov-18

May-19
Aug-18

Aug-19
Feb-19

segment and is capitalizing under-penetrated opportunities in the MSME segment,

thereby sustaining healthy growth momentum. Further, the conservative
underwriting approach, reduction in ticket sizes and lower LTVs should enable the
bank to maintain strong control on credit costs. We expect AUBANK to deliver
steady 43% earnings CAGR over FY19-21, aided by gradual improvement in
operating leverage and margins. Maintain Buy with PT of INR760 (4.8x FY21E BV).
Research Analyst: Nitin Aggarwal (Nitin.Aggarwal@MotilalOswal.com); +91 22 6129 1542 | Parth Gutka (Parth.Gutka@motilaloswal.com)
Alpesh Mehta (Alpesh.Mehta@MotilalOswal.com); Himanshu Taluja (Himanshu.Taluja@motilaloswal.com); Yash Agarwal (Yash.Agarwal@motilaloswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 AU Small Finance Bank

Key takeaways from session with top management

Session #1: Personal Banking

Branch Banking - Mr. Uttam Tibrewal (Executive Director)

 The objective is to build a long-term sustainable and granular retail deposits
franchise funding retail credit. The focus is on low-cost branch expansion.
 It has a customer base of 1.3m with ~15k customers being added every month.
 Focus on improving granularity, building a robust sales process, strengthening
the payment ecosystem, offering comprehensive and customer centric
proposition, specialized channels for CA, salary, etc.
 The bank’s branches are concentrating only on retail deposits (less than
INR50m); there is a separate team focusing on wholesale deposits and
government business. Further, focus remains on senior citizens, Women, and
the NRI segment.
 ~95% of the total customers have digital adoption.
 The bank is revamping net banking solutions with strengthened card program,
partnership with FinTechs, etc., thus focusing on improving efficiency and use of
digitalization.
 ~40% of the liability customer has some relationship on the asset side. Cross sell
ratio currently stands at ~1.4x with the planning to increase it to ~2.5x.
 The bank has guided for total touch points of 1,000 with 600 branches and 400
outlets by FY22.
 Cost of funds is down ~180bp from post conversion to bank; over the next 10
quarters, it is looking for further reduction in the cost of funds by ~100bp. The
bank seems comfortable with a CASA ratio of ~20-22% in the next 10 quarters.

Wheels - Mr. Bhaskar Karkera (Chief of Wheels)

 Over the last decade, wheels’ AUM grew at a CAGR of 47% from INR1.9b to
INR108b. The bank follows a calibrated growth approach during industry
slowdown, and thus, moderated its growth during FY08-09 and FY14-15 due to
uncertainty in the environment.
 The bank has a diversified customer profile offering value propositions under
various categories such as new cars, used, refinancing, personal, passenger and
loading, etc.
 The focus remains on increasing the penetration outside Rajasthan, even as the
state’s share has declined to 35% v/s 50% earlier.
 The used car market is expanding with the bank looking to make the most of this
growth opportunity. The proportion of used vehicle segment has increased from
44% in FY12 to 58% in Jun’19.
 The wheels segment has an average ticket size of 0.35-4m with tenure of 3-4
years having LTV of ~80%. The average EMI stand at ~14k with ~85% under PSL.

5 August 2019 2
 AU Small Finance Bank

Session #2: Commercial Banking

Mr. Rishi Dhariwal (Chief of Secured Business Loans – MSME)

 Most clients under this segment are consumption-driven businesses with the
bank focusing on offering POS machines to these retailers. The bank further
offers pre-approved 2W loans to MSME customers.
 The segment has ~90k customers with total portfolio of INR85b. Average ticket
size is INR0.9m with LTV of <50%.
 Average EMI stands at ~19.5k with ~40% of customers being new to credit.
These are first formal loans for ~80% of the customers.
 AU bank has funded ~1.14lac MSMEs till date. Post conversion as a bank, AUM
has grown at CAGR of 55%, clearly highlighting available opportunities for bank.
 Asset quality is fairly under control and has remained stable over the years.
Normally, it takes ~27months for delinquencies to occur.
 The focus is on becoming a bank of the self-employed by FY22.

Mr. Vivek Tripathi (Chief of Strategy, Business solutions and Transaction

Banking)
 NBFC book: It’s a 6-year seasoned book with Nil 0+ DPD. It has 161 clients with
335 facilities.
 ~81% of the book is less than INR100m with ~55% less than INR50m. It has an
average ticket size of INR83m with ~88% of the book above investment grade.
These customers have a deposit balance of INR16b with the bank.
 Real Estate: ~93% of the book is less than INR50m with an average ticket size of
INR24m. The bank focuses on affordable housing segment and near-completion
projects.
 Business Banking and Agri & SME: Built on retail distribution like wheels and
SBL; it helps in bringing stickiness to CASA. Focuses more on the agri value chain.
 ~96%/~91% of business banking and Agri/SME book is less than INR10m. ~80%
of the loans are working capital loans with an average ticket size of INR5.5m in
business banking and INR3.4m in Agri and SME book.
 The bank is focusing more on the working capital loans, targeting non-metro
and semi-urban regions.

Session #3: Treasury, Technology and Risk

Mr. Yogesh Jain, Mr. Mayank Markanday and Mr. Ankur Tripathi
 Refinance book provides more stable long-term funding. Grandfathered
borrowings are down to 6% and should be Nil in the next two years.
 Focuses on judicious optimization of securitization/PSLC.
 Focuses on improving credit rating from AA-/stable.
 The bank does a daily tracking of ALM and computes LCR on a daily basis.
 Looking for a tech partnership in new segment offerings.

5 August 2019 3
 AU Small Finance Bank

Story in Charts
Exhibit 1: Overall AUM grew ~6% QoQ/44% YoY Exhibit 2: Vehicle & MSME forms ~96% of total retail loans
On book Adv (INRb) Off book Adv (INRb) Wheels Sec. MSME Sec SME
Gold loans + Agri Loans agnst FD
18 2 1 3 2 3
21 10 8-
- 6- 10 7- 8- 7- 7 5 5 3
25 31 32 33 34 35 35 36 38 42 39 42 42
27 38
228 231
36
34 181 200
40 36 133 153 59 59 61 56 57 57 57 54 57 53 53 54 54
22 31 37
85 100
63 63 60 66 72
1QFY17
2QFY17
3QFY17
4QFY17
1QFY18
2QFY18
3QFY18
4QFY18
1QFY19
2QFY19
3QFY19
4QFY19
1QFY20

1QFY17

2QFY17

3QFY17

4QFY17

1QFY18

2QFY18

3QFY18

4QFY18

1QFY19

2QFY19

3QFY19

4QFY19

1QFY20
Source: MOFSL, Company Source: MOFSL, Company

Exhibit 3: Retail mix dominates with share of ~79% Exhibit 4: Yields improved 20bp while CoF declined 10bp
Retail Wholesale Yield on AUM Cost of Funds
17.0
16.8
16.8
16.5
16.3
15.7
15.3
14 15

14.7
18 17

14.5

14.5
20 19

14.3
14.3
14.2
21 21 20
9.8
9.8
9.7
9.6
9.0
8.8
8.6
8.4
86 85

8.0
7.9

7.9

7.9
83

7.8
82 76 80 81 78 79
1QFY17
2QFY17
3QFY17
4QFY17
1QFY18
2QFY18
3QFY18
4QFY18
1QFY19
2QFY19
3QFY19
4QFY19
1QFY20
1QFY18

2QFY18

3QFY18

4QFY18

1QFY19

2QFY19

3QFY19

4QFY19

1QFY20

Source: MOFSL, Company Source: MOFSL, Company

Exhibit 5: Increasing proportion of deposits in total funding

profile Exhibit 6: Strong traction in deposit mobilization (+2% QoQ)
NCDs Refinance Deposits (INRb) CASA (RHS, %)
CPs Loans-Banks and NBFC 61
Deposits Others
10 21
13 34 37
11 8 51 59 33 32
6 62 62 69 69 28 26
16 5
0 24
21 21 19
23 5
0 2 2
23 22 1 1 1
0
46 23 0
194
100

129

147

40 34 23 19 20
198
20

37

79

20
8

14 10 9 6 5
1QFY18

2QFY18

3QFY18

4QFY18

1QFY19

2QFY19

3QFY19

4QFY19

1QFY20

1QFY18

2QFY18

3QFY18

4QFY18

1QFY19

2QFY19

3QFY19

4QFY19

1QFY20

Source: MOFSL, Company Source: MOFSL, Company

5 August 2019 4
 AU Small Finance Bank

Exhibit 7: DuPont Analysis — We estimate RoA/RoE to improve to 1.5%/17.7% by FY21E

Y/E March FY16 FY17 FY18 FY19 FY20E FY21E
Interest Income 19.56 15.92 12.35 11.46 11.66 11.61
Interest Expense 7.65 6.17 5.78 6.24 6.51 6.30
Net Interest Income 11.91 9.75 6.57 5.22 5.15 5.31
Core Fee and Secu. Inc 0.07 1.67 2.45 1.71 1.24 1.16
Non-Interest income 0.10 1.67 2.71 1.80 1.51 1.44
Total Income 12.01 11.42 9.29 7.01 6.67 6.76
Operating Expenses 4.91 4.39 5.26 4.21 3.86 3.80
Employee cost 3.05 2.40 2.97 2.34 2.06 1.95
Others 1.86 1.99 2.29 1.87 1.80 1.84
Operating Profits 7.10 7.03 4.03 2.81 2.81 2.96
Core operating Profits 7.07 7.03 3.76 2.72 2.54 2.67
Provisions 0.85 1.29 0.93 0.55 0.60 0.63
NPA -0.04 0.21 0.39 0.29 0.54 0.56
Others 0.89 1.09 0.53 0.26 0.06 0.07
PBT 6.25 5.74 3.10 2.25 2.21 2.33
Tax 2.15 3.92 1.06 0.77 0.75 0.80
RoA 4.10 4.15 2.04 1.48 1.45 1.53
Leverage (x) 5. 7 5.4 6.7 9.9 10.9 11.5
RoE 23.3 22.3 13.8 14.7 15.9 17.7
Source: MOFSL, Company

5 August 2019 5
 AU Small Finance Bank

Financials and Valuations

Income Statement (INRm)
Y/E MARCH FY16 FY17 FY18 FY19 FY20E FY21E
Interest Income 10,105 12,800 17,672 29,488 44,478 59,066
Interest Expense 3,953 4,963 8,267 16,064 24,827 32,037
Net Interest income 6,152 7,837 9,405 13,425 19,651 27,029
Growth (%) 45.8 27.4 20.0 42.7 46.4 37.5
Other Income 50 8,100 3,881 4,620 5,775 7,335
Total Income 6,202 15,937 13,285 18,045 25,427 34,364
Growth (%) 46.2 156.9 -16.6 35.8 40.9 35.1
Operating Expenses 2,538 3,528 7,526 10,826 14,722 19,307
Growth (%) 63.3 39.0 113.3 43.8 36.0 31.1
Operating Profits 3,665 12,408 5,759 7,219 10,705 15,057
Growth (%) 36.2 238.6 -53.6 25.3 48.3 40.7
Core Operating Profits 3,650 5,650 5,377 6,998 9,677 4,250
Growth (%) 35.8 54.8 -4.8 30.1 38.3 -56.1
Total Provisions 438 1,039 1,326 1,418 2,287 3,207
PBT 3,226 11,369 4,433 5,801 8,418 11,850
Tax 1,110 3,149 1,513 1,983 2,879 4,053
Tax Rate (%) 34.4 27.7 34.1 34.2 34.2 34.2
Adj. PAT 2,116 3,334 2,920 3,818 5,539 7,797
Growth (%) 50.9 57.5 -12.4 30.7 45.1 40.8
PAT 2,116 8,220 2,920 3,818 6,248 7,797
Growth (%) 50.9 288.4 -64.5 30.7 63.6 24.8

Balance Sheet 47,820 55,617

Y/E MARCH FY16 FY17 FY18 FY19 FY20E FY21E
Equity Share Capital 441 2,843 2,857 2,924 3,025 3,025
Reserves & Surplus 9,654 16,972 19,780 26,526 37,214 45,011
Equity Networth 10,094 19,814 22,637 29,449 40,239 48,036
Deposits - - 79,233 194,224 285,510 411,134
Growth (%) NA NA NA 1.5 47.0% 44.0%
Borrowings 47,826 71,199 76,389 86,134 91,302 98,606
Other liabilities 5,022 6,737 9,894 14,241 17,374 20,849
Total Liabilities 62,942 97,812 188,328 326,228 436,604 580,804
Current Assets 1,234 6,250 17,612 17,402 18,980 21,871
Investments 2,316 21,503 30,506 71,617 87,372 107,468
Growth (%) 65.6 828.6 41.9 134.8 22.0 23.0
Loans 56,208 65,509 133,121 228,187 320,252 439,586
Growth (%) 65.1 16.5 103.2 71.4 40.3 37.3
Net Fixed Assets 246 2,758 3,861 4,470 4,962 5,557
Other assets 2,938 1,792 3,227 4,552 5,038 6,322
Total Assets 62,942 97,812 188,328 326,228 436,604 580,804
Total Assets (incl. off BS) 88,947 137,692 215,586 340,501 446,508 580,804

Asset Quality FY16 FY17 FY18 FY19 FY20E FY21E

GNPA (INR m) 741 1,245 2,697 4,701 6,386 8,502
NNPA (INR m) 592 805 1,693 2,945 3,616 4,593
GNPA Ratio 1.3 1.9 2.0 2.1 2.0 1.9
NNPA Ratio 1.1 1.2 1.3 1.3 1.1 1.0
Slippage Ratio 0.8 1.7 2.1 2.0 1.9 1.7
Credit Cost 0.8 1.5 1.0 0.6 0.8 0.8
PCR (Excl Tech. write off) 20.1 35.4 37.2 37.4 43.4 46.0

5 August 2019 6
 AU Small Finance Bank

Financials and Valutions

Ratios
Y/E MARCH FY16 FY17 FY18 FY19 FY20E FY21E
Yield and Cost Ratios (%)
Avg. Yield - on IEA 21.5 16.9 13.1 12.1 12.2 12.1
Avg. Yield on loans 14.5 10.5 9.4 11.7 12.0 12.2
Avg. Cost of funds 10.3 8.3 7.3 7.4 7.6 7.2
NIM (On total assets) 11.9 9.8 6.6 5.2 5.2 5.3
NIM (On IEA) 13.1 10.3 7.0 5.5 5.4 5.5

Capitalization Ratios (%)

CAR 16.9 23.1 19.3 19.3 19.2 19.3
Tier I 13.5 21.5 18.4 16.0 16.8 15.4
Tier II 3.4 1.6 0.9 3.4 2.3 3.9

Business and Efficiency Ratios (%)

Loan/Deposit Ratio NA NA 168.0 117.5 112.2 106.9
CASA Ratio NA NA 26.9 18.5 22.3 24.9
Cost/Assets 4.9 4.4 5.3 4.2 3.9 3.8
Cost/Total Income 40.9 22.1 56.7 60.0 57.9 56.2
Cost/Core Income 41.0 38.4 58.3 60.7 60.3 58.7
Int. Expense/Int. Income 39.1 38.8 46.8 54.5 55.8 54.2
Fee Income/Total Income 0.3 8.4 26.3 24.4 18.7 17.1
Non Int. Income/Total Income 0.8 50.8 29.2 25.6 22.7 21.3
Investment/Deposit Ratio NA NA 38.5 36.9 30.6 26.1
Empl. Cost/Total Expense 62.2 54.6 56.5 55.5 53.5 51.4

Profitability and Valuations FY16 FY17 FY18 FY19 FY20E FY21E

RoE 23.3 22.3 13.8 14.7 15.9 17.7
RoA (On bal Sheet) 4.1 4.1 2.0 1.48 1.5 1.5
RoRWA 3.2 9.7 2.5 2.0 2.2 2.4
Book Value (INR) 229.0 69.7 79.2 100.7 133.0 158.8
Growth (%) 24.5 -69.6 13.7 27.1 32.1 19.4
Price-BV (x) NA NA 8.3 6.5 5.0 4.1
Adjusted BV (INR) 184.4 67.9 75.7 101.1 131.9 155.4
Growth (%) 13.7 -63.2 11.4 33.6 30.4 17.8
Price-ABV (x) NA NA 8.7 6.5 5.0 4.2
EPS (INR) 48.0 50.1 10.2 13.2 18.6 25.8
Growth (%) 49.0 4.3 -79.5 28.9 41.0 38.4
Price-Earnings (x) NA NA 64.3 49.9 35.4 25.6

5 August 2019 7
 AU Small Finance Bank

NOTES

5 August 2019 8
 AU Small Finance Bank

Explanation of Investment Rating

Investment Rating Expected return (over 12-month)
BUY >=15%
SELL < - 10%
NEUTRAL < - 10 % to 15%
UNDER REVIEW Rating may undergo a change
NOT RATED 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.
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appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL in
respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”, of
which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOSL, Research Analyst and/or his relatives have financial interest in the subject company, as they have equity holdings in the subject company.
2 MOSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOSL, 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 MOSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOSL has not received any compensation or other benefits from third party in connection with the research report
10 MOSL has not engaged in market making activity for the subject company
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 AU Small Finance Bank

The associates of MOFSL may have:

- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- 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.

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.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed,
in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose
and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report
constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities
discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives,
financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this document
should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including
the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be
suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade securities - involve substantial
risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions
contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as
endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make modifications and
alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from time to time, effect
or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to perform investment
banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a separate, distinct and
independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already
available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the
views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other
person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of
or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject
MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category
of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. Neither the Firm, not its directors,
employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may
arise from or in connection with the use of the information. The person accessing this information specifically agrees to exempt MOFSL or any of its affiliates or employees from, any
and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold
MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any
errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263; Website
www.motilaloswal.com.CIN no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth Management
Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is a distributor of
Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. which is a
group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL. Research & Advisory
services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no assurance or guarantee
of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance Officer: Name: Neeraj
Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.

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