3 January 2020

Market snapshot Today’s top research idea

Equities - Close Chg .% CY19 % HCL Technologies: Can it benefit from public cloud repatriation? Sensex 41,627 0.8 14.4  Repatriation of workloads from public cloud to on-premise/hybrid cloud is Nifty-50 12,282 0.8 12.0 likely to be a key emerging horizontal theme. Higher IMS exposure and Nifty-M 100 17,391 1.4 -4.3 stronger hybrid cloud capabilities make HCLT the biggest beneficiary. We Equities-Global Close Chg .% CY19 % expect up to ~5pp organic growth outperformance versus top 2 over FY21- S&P 500 3,258 0.8 28.9 22. Changes in the organization structure/GTM are showing early signs of Nasdaq 9,092 1.3 35.2 success. FTSE 100 7,604 0.8 12.1  DAX 13,386 1.0 25.5 We find comfort with - [1] HCLT’s ability to build a completely independent Hang Seng 11,321 1.4 10.3 sales team for products [2] No further M&A plans in Mode-3 in near term. Nikkei 225 23,657 0.0 18.2 Our conservative estimates (CAGR: -5%, OPM: 21%) on Mode-3 adequately Commodities Close Chg .% CY19 % capture our continued pessimism. Historically, valuations have shown strong Brent (US$/Bbl) 67 0.5 24.9 correlation with organic growth, except for the recent cycle. Gold ($/OZ) 1,529 0.8 18.3  Our TP of Rs 700 is arrived at using DCF based SOTP. This implies a marginal Cu (US$/MT) 6,164 0.2 3.4 re-rating to 14x driven by further organic growth acceleration and concerns Almn (US$/MT) 1,775 -0.4 -4.4 around Mode-3 receding. Upgrade to Buy. Currency Close Chg .% CY19 % USD/INR 71.4 0.2 2.3 Research covered USD/EUR 1.1 -0.4 -2.2 USD/JPY 108.6 -0.2 -1.0 Cos/Sector Key Highlights YIELD (%) Close 1MChg CY19 % HCL Technologies Can it benefit from public cloud repatriation? 10 Yrs G-Sec 6.5 0.00 -0.8 India Strategy The Decade That Was 10 Yrs AAA Corp 7.7 0.00 -0.9 Growth continues moderating in 3QFY20 Flows (USD b) 2-Jan MTD CY19 Automobile Dec-19 wholesales (1. BJAUT; 2. HMCL; 3. EIM; 4. TVSL) FIIs 0.10 0.96 14.23 Media TRAI revises NTO regulations and bouquet offerings DIIs 0.01 -0.10 5.98 Volumes (INRb) 2-Jan MTD* CY19* Cash 332 276 276 Piping hot news F&O 28,989 20,115 20,115 Steel producers raise prices by Rs 1,000-1,500 a tonne as demand perks up Note: *Average Responding to cost pressure and greater demand, domestic steel producers have raised prices by Rs 1,000-1,500 a tonne across products for January. “Iron ore miners have increased prices by Rs 600 per tonne and so this increases the cost … Chart of the Day: HCL Technologies (Can it benefit from public cloud repatriation?) Enterprises are increasingly rallying behind the theme of public cloud repatriation

*Figures are outcome of a survey conducted as part of Nutanix Enterprise Cloud Index study. Source: Nutanix ECI, MOFSL Research Team ([email protected])

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. In the news today

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1 2 Bank credit grows 7.10% to Rs Bosch likely to cut around 2,000 jobs in India amid auto sales 99.47 lakh cr; deposits up slump 10% to Rs 130 lakh cr Bosch, the Indian unit of the world’s largest auto-parts supplier, plans Banks' credit and deposits grew to join its parent, Robert Bosch GmbH in cutting jobs as the South by 7.10 per cent and 10.09 per Asian nation witnesses one of its worst auto sales slowdowns in cent to Rs 99.47 lakh crore and decades. The German company will cut “a couple of thousand” jobs in Rs 130.08 lakh crore in the India in the next four years, India Managing Director Soumitra fortnight ended December 20, Bhattacharya said. About 10 per cent of 3,700 white-collar jobs and a according to the latest Reserve slightly higher percentage of 6,300 blue-collar jobs will be cut, he Bank data. In the previous added in an interview in on December 30. fortnight ended December 6, credit had grown by 7.91 per…

3 4 Mistry order inconsistent, untenable: Tata plea in SC Hinduja, Synergy, Dubai fund Tata Sons Ltd on Thursday may bid for Jet Airways challenged in the Supreme Court Lenders are unwilling to give an appeals tribunal order that time and have set a final held former chairman Cyrus deadline of 15 Jan for Mistry’s ouster as illegal, terming expressions of interest. The the court’s direction to reinstate Hinduja group is looking to 5 him untenable in law and acquire Jet Airways if it is Consumer goods’ festive sales inconsistent with the Companies indemnified from the airline’s hit a four-year high Act. legal liabilities … Retailers and consumer goods companies said sales in the October-December festive quarter had been the best in past four years on account of ‘pent-up demand’, a buoyant stock 6 7 market, wider availability of consumer credit at 0% interest, Trai seeks views on traffic BPCL, Air India, Concor and the harsh winter in the North divestments unlikely by management under net that triggered sales of heating March-end: Govt official neutrality products and winter wear. The government is unlikely to "The objective of this complete the strategic sale of consultation paper is to Corporation deliberate the issues related to (BPCL), Container Corporation of traffic management practices India (Concor), and Air India by and the Multi Stakeholder March-end, said a senior body... It discusses about government official. establishment of a framework to formulate traffic management practices. The paper also …

3 January 2020 2 2 January 2020 Update | Sector: Technology HCL Technologies BSE SENSEX S&P CNX 41,627 12,282 CMP: INR573 TP: INR700 (+22%) Upgrade to Buy Can it benefit from public cloud repatriation?

Stock Info  Repatriation of workloads from public cloud to on-premise/hybrid cloud is likely to Bloomberg HCLT IN be a key emerging horizontal theme. Higher IMS exposure and stronger hybrid cloud Equity Shares (m) 2,721 capabilities make HCLT the biggest beneficiary. We expect up to ~5pp organic growth M.Cap.(INRb)/(USDb) 1556.2 / 21.8 outperformance versus top 2 over FY21-22. 52-Week Range (INR) 595 / 460 1, 6, 12 Rel. Per (%) 0/7/5  Some changes in the organization structure/GTM (e.g. in IMS) are showing early 12M Avg Val (INR M) 2051 signs of success. Besides, we find comfort in HCLT’s ability to build a completely Free float (%) 40.0 independent sales team for products avoiding any potential negative synergies with the services business. Financials Snapshot (INR b)  We remain pessimistic on Mode-3 and our conservative estimates (CAGR: -5%, OPM Y/E Mar 2020E 2021E 2022E of 21%) adequately capture this view. However, it is comforting that there will be no Net Sales 705.6 800.7 883.6 further capital deployment over the near term. EBITDA 164.4 189.7 210.2  Historically, valuations have shown strong correlation with organic growth, except PAT 103.8 120.5 134.6 EPS (INR) 38.3 44.6 50.0 for the recent cycle. As organic growth accelerates further and concerns about Gr. (%) 4.1 16.5 12.2 Mode-3 recede, we expect a marginal re-rating to 14x. Mode-3 contributes < 10% of BV/Sh (INR) 180.1 201.4 228.2 our fair valuation arrived at using DCF-based SOTP. We upgrade HCLT to Buy. RoE (%) 22.9 23.4 23.3 Expect near-term softness in key verticals… RoCE (%) 19.7 19.6 19.7 P/E (x) 14.9 12.8 11.4 Discretionary IT spends in key verticals like BFSI and Retail are likely to remain P/BV (x) 3.2 2.8 2.5 subdued, given the waning impact of US tax reforms. As the US heads for an election, political/policy uncertainty will further restrict IT spends, as evident in the Shareholding pattern (%) As On Sep-19 Jun-19 Sep-18 previous cycles (CY08, CY12 and CY16). Our analysis suggests that the uncertainty Promoter 60.0 60.0 60.2 around policy/tech spends will be more pronounced in verticals like BFSI, Hi- DII 8.6 8.0 8.2 Tech/ISV and Healthcare over the next year. FII 28.0 28.6 28.0 Others 3.4 3.4 3.7 …but a tactical retreat in a horizontal trend FII Includes depository receipts For most of FY16-19, as workloads increasingly moved from on-premise to public cloud, HCLT witnessed deflationary headwinds in IMS, leading to subdued organic Stock Performance (1-year) growth. While ramp up of some large deals (e.g. Xerox, P&G) has improved organic HCL Technologies Sensex - Rebased growth recently, the street is skeptical about its sustainability. This is due to the 600 historical lumpiness in this segment. However, our analysis suggests that growth 550 will improve further due to the recent increase in uptake of traditional, non-cloud- enabled data centers. 500

450 To be the key beneficiary of public cloud repatriation Recent CIO surveys by industry analysts (e.g. IDC) conclude that on an average Jul-19 Jan-19 Jan-20 Oct-19 Apr-19 ~50% of public cloud applications (or 5+ apps) will be repatriated. While repatriating apps to on-premise may be a transient trend, ~85% of enterprises now believe that hybrid cloud is the ideal operating model over the long term.

HCLT has been consistently rated as a leader by industry analysts (IDC/Gartner) in hybrid managed infrastructure, DC outsourcing, managed cloud services, etc. As clients rebalance workloads from public cloud to on-premise and eventually to hybrid cloud, HCLT will emerge as the key beneficiary, in our view.

3 January 2020 3 Strong deal renewal pipeline in IMS; organic growth to accelerate further Our analysis suggests that the deal pipeline for the next few years is strong with many large infra deals (e.g. Pepsi Co, DNB, Volvo etc. – detailed list in Exhibit 8) coming up for renewal. We understand that some of these deals have significant public cloud component (e.g. Volvo, Singapore Exchange), leaving headroom for repatriation of workloads to on-premise/hybrid cloud.

Welcome steps in addressing organization structure / GTM issues One of the key concerns earlier was the organization structure, which was not aligned to verticals in some segments (e.g. IMS). However, HCLT restructured its organization and re-aligned IMS/BPO to the vertical-led GTM strategy. We note that these changes are showing early signs of success.

Besides, we also understand that HCLT has been fairly successful in building an independent and dedicated sales/GTM team for its products business. These steps should go a long way toward improving domain centricity and dodging negative synergies between the products and services businesses.

No plans for further capital allocation in Mode-3 – a comforting factor We remain pessimistic about Mode 3 and expect its current installed base to decline at an annualized rate of 5% (v/s low-single-digit growth guidance). Our margin outlook (21%) is also significantly lower than guidance (by 9pp)/consensus estimates.

However, we draw comfort from the fact that HCLT is not looking toward any further acquisitions in Mode-3 in the near term. Further, besides containing the negative synergies, the strict separation between the products and services businesses can offer scope for value unlocking in the future.

Valuation and view: Mode-3 contributes < 10% of our SOTP valuation Historically, multiples of HCLT have shown strong correlation with its organic growth. However, this correlation appears to be broken in the recent cycle as concerns around Mode-3 acquisitions have overshadowed the improvement in organic growth. As these concerns recede and HCLT outperforms Tier I on organic growth in the near term, we expect a slight re-rating to 14x.

We derive a target price of INR700 (+22% upside) by discounting cash flows of Mode-1 + Mode-2 at a WACC of 12%. To reflect the higher risk associated with Mode-3, we discount its cash flows at a WACC of 15%. Our pessimistic outlook on growth and margins of Mode-3 is adequately captured in our conservative estimates for this segment. In our base case, Mode-3 contributes < 10% of our overall fair valuation of the stock. We upgrade HCLT to Buy.

3 January 2020 4 India Strategy BSE Sensex: 41,627 S&P CNX: 12,283

CY09-19 returns for various asset classes (%) The Decade That Was Relatively modest returns, but mega changes on multiple fronts  As the popular saying goes, “we overestimate the change in the short term and underestimate it in the long term.” A decade is a fairly long time in markets to reminisce the ‘change’ from many angles.  Accordingly, we take a deep dive to understand how the markets have changed over the past decade and also look at returns, performers, earnings, valuations, flows, fund raising, market cap changes and many more nuances.

Market returns modest in this decade but mirror equally modest earnings growth… India has delivered the second best returns (after the US) in the pecking order of world markets. In dollar terms, however, Japan/Taiwan markets’ performance was better than India’s given the underlying INR depreciation versus the USD. Over CY09-19, the Nifty has delivered an 8.9% return CAGR, mirroring the Nifty EPS CAGR of 8.2% over that period. If we divide the decade in two halves, the earnings trend was slightly better in the first half with Nifty EPS CAGR of 11%, which then moderated to 6% in the second half. The Nifty Midcap-100 delivered similar returns, while the Nifty Smallcap underperformed with just 5% CAGR. …and led by a few sectors Even these tepid market returns were driven by a few select sectors like BFSI, Consumer, IT, Pharma and Automobiles, while the rest of the sectors belonging to the investment side of the economy (Capital Goods, Cement, Real Estate, Power) and commodities (Metals, O&G) underperformed massively. This has created a significant divergence in the valuations of these sectors (exacerbated in the last three years). Top and bottom Nifty performers: BFSI and Consumption lead the pack The top 10 Nifty performers for the decade are from BFSI (5), Consumption (4) and Auto (1), underscoring the lopsided nature of the returns in this decade. Bajaj

Financials weight (%) in Nifty-50 has Finance (+63%), (+42%), (+39%), Britannia (+34%) and seen a secular rise – 1.9x in 10 years (+33%) were the top five performers over CY09-19 in terms of return CAGR. Five stocks in the Nifty have failed to deliver positive returns in this decade: Vedanta (-9%), NTPC (-5%), ONGC (-4%), (-2%) and (-1%). Nifty sectoral weights undergo a sea change In line with the underlying earnings and market cap changes, the sectoral weights of the Nifty have seen a sea change in the decade. The weight of Financials has seen a secular rise in the benchmark indices. BFSI now contributes 42% (+1.9x in 10 years) of the Nifty-50 with its weight increasing every year since 2013. Consumer sector’s weight is up 410bp over the last 10 years. Weight of Oil & Gas has fluctuated significantly over the last 10 years – it is down to 12.5% now from 17.9% in CY09. While the weight of IT has remained stable, Capital Goods, Metals, Cement, Utilities and Telecom have seen significant erosion in their weights in the decade. Within the

3 January 2020 5 Nifty, 27 stocks have been part of the index for the entire decade, while 7 are part of the top 10 by weight for the decade. Midcap m-cap down 26% from peak Market cap movements of this decade Over CY09-19, the Nifty-50 market cap increased by 3.3x to INR90t, as against a 2.4x rise in the Nifty Midcap-100 market cap to INR16.1t. Over CY14-19, while the Nifty market cap is up 62%, the Nifty Midcap-100 market cap is down 3%. At INR16.1t, the Nifty Midcap-100 absolute market cap is down by 26% from its peak of INR21.9t in Dec’17. Meanwhile, the Nifty-50 market cap at INR90t is up 18% since Dec’17 and signifies a new high.  Top 10 companies witnessing a substantial jump in market cap over the last 10 years are Kotak Mah. Bank (11.3x), HDFC Bank (9x), Hind. Unilever (7.2x), TCS (5.5x), HDFC (5.5x), ICICI Bank (3.6x), ITC (3.1x), Reliance Inds (2.7x), SBI (2.1x) and (2.1x).  Contribution of top 25 companies to India’ overall market cap has come down …while Nifty m-cap signifies new high marginally from 48.7% in Dec’09 to 47.4% in Dec’19.  13 companies have remained among the top 25 in terms of market cap over the last 10 years: , HDFC, HDFC Bank, HUL, ICICI Bank, Infosys, ITC, L&T, ONGC, , SBI, TCS and . Institutional flows: First half dominated by FIIs, second half by DIIs During the decade, total FII flows stood at USD113b and DII flows at USD24b (domestic MF flows at USD53b and DII ex-MF outflows at USD29b). In the first half of the decade, FIIs dominated with inflows of USD90b, while DIIs pulled out USD28b. However, in the second half, DIIs took the front seat with inflows of USD51b versus FII inflows of USD24b. In CY19 though, the trend changed notably with FII flows of USD14.2b (highest in five years) and domestic MF inflows moderating to USD7.6b from USD17.5b in the previous year. Domestic AMC equity AUM up 4.5x over CY09-19 India’s MF industry has come a long way over the past decade with equity AUM rising by a staggering 4.5x from INR2t in 2009 to INR8.9t in 2019 (as of Nov’19). Total net inflows for the MF industry for the last 10 years stand at INR13.6t, 40% of which are contributed by equity funds. SIPs have clearly taken the lead in the last India Inc. raised total INR 6.9t over CY09-19 five years with monthly SIP inflows expanding consistently post CY14; the last 12 months were particularly impressive with inflow of INR80b/month. INR6.9t of fund raising in the decade India Inc. raised total INR 6.9t over CY09-19 through a combination of IPOs, FPOs, OFS and QIPs. IPOs and QIPs contributed INR2.4t each, while OFS accounted for INR1.6t. After a blockbuster year for the Indian primary market in 2017 with INR760b of capital raised via 168 IPOs (an all-time high), 2018 and 2019 have seen a massive drop in fund raising via IPOs. QIPs, after slowdown in CY18, have shown signs of revival with capital raised via 10 QIPs reaching INR347b (more than double of CY18). Money raised via the OFS route increased significantly to INR263b in CY19 from INR131b last year.

3 January 2020 6 2 January 2020 Update | Sector: Consumer Marico

BSE SENSEX S&P CNX 41,627 12,287 CMP: INR337 TP: INR358 (+6%) Neutral Growth continues moderating in 3QFY20 Low input costs to drive EBITDA growth

Key verbatim from Marico’s (MRCO) pre-quarterly update for 3QFY20.  Macro view: Management commented that “Overall consumption trends Stock Info during the quarter belied expectations of the beginning of a revival in Bloomberg MRCO IN Equity Shares (m) 1,290 sentiment which were built on the back of good monsoons and M.Cap.(INRb)/(USDb) 435.2 / 6.1 announcement of various government measures. Category growths across 52-Week Range (INR) 404 / 325 personal care remained under pressure, while foods and allied categories 1, 6, 12 Rel. Per (%) -5/-16/-26 fared relatively better. However, the Company continued to consolidate 12M Avg Val (INR M) 705 market shares across key franchises. The traditional channel stayed weak, as Free float (%) 40.4 channel partners continued to face liquidity challenges amidst a soft demand Financials Snapshot (INR b) environment. Growth in Modern Trade and E-Commerce also slowed down, Y/E Mar 2019 2020E 2021E partly due to specific price management measures taken in these channels to Net Sales 73.3 74.7 84.0 counter inter-channel conflict.” EBITDA 12.8 13.7 14.7  Comment on macro outlook: “The Company expects some green shoots of PAT 9.3 9.6 10.4 recovery in Q4, on the back of focused marketing initiatives and pricing EPS (INR) 7.2 7.5 8.0 Gr. (%) 14.3 3.4 7.9 interventions taken in key portfolios, which have hit the shelves in the late BV/Sh (INR) 23.2 28.2 32.1 stages of Q3 post clearing of older inventory in the channel.” RoE (%) 33.6 29.0 26.7  Domestic business: “In the India business, the Saffola Oils and Foods portfolio RoCE (%) 31.0 27.4 25.3 delivered healthy double-digit volume growth. However, due to a decline in P/E (x) 46.7 45.2 41.9 Coconut Oil, Hair Oils and other portfolios, the India business as a whole P/BV (x) 14.5 12.0 10.5 posted a marginal decline in volume growth.” Shareholding pattern (%)  International business on track: “The International business posted high As On Sep-19 Jun-19 Sep-18 single-digit constant currency growth with the Bangladesh business holding Promoter 59.6 59.7 59.7 firm, while other geographies lacked fervor.” DII 8.8 6.0 7.4 FII 25.0 25.8 25.3  Margin improvement likely to continue: “EBITDA margins are expected to Others 6.6 8.5 7.7 improve year-on-year given benign input costs, which should translate to FII Includes depository receipts reasonable growth in the bottom line.”  Company outlook: “The company will continue to drive sustained profitable Stock Performance (1-year) volume-led growth over the medium term, through its focus on strengthening Marico Sensex - Rebased the franchise in the core categories and driving the new engines of growth 440 towards gaining critical mass.” 410  Valuation/view: Three factors that underpinned our investment case on MRCO 380 were: (i) better volume visibility compared to peers, (ii) a strong pipeline of 350 new products, which could potentially alter pace of medium-term growth and 320 ( iii) a decline in copra cost leading to a sharp pick-up in earnings. However, as there has been sharp sequential deterioration in demand in 2Q/3QFY20, Jul-19 Jan-19 Jan-20 Oct-19 Apr-19 volume visibility is also not superior to peers and the best of copra cost reduction is behind. Valuations are fair at 41.9x FY21E EPS. We thus maintain our Neutral rating on the stock.

3 January 2020 7 Sector Update | 2 January 2020 Automobiles CMP: INR3,119 TP: INR3,169 (+2%) Neutral Stock Info Bloomberg BJAUT IN Wholesales below estimate at ~336k units (-3% YoY) Equity Shares (m) 289 Domestic volumes down ~15% YoY, exports up ~10% YoY M.Cap.(INRb)/(USDb) 902.5 / 12.6 52-Week Range (INR) 3290 / 2400  BJAUT’s wholesales declined 3% YoY to ~336k units (our estimate: 353k) in 1, 6, 12 Rel. Per (%) -7/5/0 Dec’19.  Domestic volumes were down ~15% YoY to 153.2k units (our estimate: 168k), Financial & Valuation (INR b) Y/E MARCH 2019 2020E 2021E while exports increased ~10% YoY to ~182.9k units (our estimate: 185k). Sales 304 301 332  Motorcycle volumes declined ~5% YoY to 284.8k units. Domestic motorcycle EBITDA 51.9 48.3 52.8 dispatches were down ~21% to 124.1k units, while motorcycle exports increased Consol. NP 47.9 51.6 54.4 ~14% YoY to 160.7k units. ConsEPS(INR) 165 178 188  3W volumes increased ~8% YoY to ~51.3k units, with domestic volumes up ~26% EPS Gr. (%) 9.3 7.9 5.4 at ~29k units but exports down ~8 % YoY at 22.2k units. BV/Sh. (INR) 753 842 935  According to Soumen Ray, CFO of Bajaj Auto, “In the month of December, the RoE (%) 23.4 22.4 21.2 retail sales have gone back to the trends that were tracking in Q2. In Q3, we RoCE (%) 21.1 20.4 19.3 Valuation have done the highest ever exports, primarily backed by motorcycles in all three P/E (x) 18.9 17.4 16.6 geographies – Africa, Latin America and also in Southeast Asia”. P/BV (x) 4.1 3.7 3.3  The stock trades at 17.4x/16.6x FY20/21E consol. EPS. Maintain Neutral. EV/EBITDA (x) 13.5 13.9 12.2

Snapshot of volumes for Dec’19 YoY MoM Residual FY20 YTD Residual YoY MoM FY20 FY19 (%) FY20 Monthly Monthly Company Sales Dec-19 Dec-18 Nov-19 Gr. (%) Gr. (%) (%) chg (%) chg YTD YTD chg estimate Run rate Run rate Bajaj Auto 3,36,055 3,46,199 -2.9 4,03,223 -16.7 36,23,251 38,25,913 -5.3 47,39,420 -5.6 -6.5 3,72,056 4,02,583 Motorcycles 2,84,802 2,98,855 -4.7 3,43,446 -17.1 30,94,028 32,34,890 -4.4 40,16,753 -5.2 -7.9 3,07,575 3,43,781 Total Two-Wheelers 2,84,802 2,98,855 -4.7 3,43,446 -17.1 30,94,028 32,34,890 -4.4 40,16,753 -5.2 -7.9 3,07,575 3,43,781 Three-Wheelers 51,253 47,344 8.3 59,777 -14.3 5,29,223 5,91,023 -10.5 7,22,668 -7.7 1.0 64,482 58,803 Domestic 1,53,163 1,80,351 -15.1 2,07,775 -26.3 19,65,947 22,28,421 -11.8 25,45,594 -13.4 -18.6 1,93,216 2,18,439 Exports 1,82,892 1,65,848 10.3 1,95,448 -6.4 16,57,304 15,97,492 3.7 21,93,826 5.5 11.5 1,78,841 1,84,145

3 January 2020 8 Hero MotoCorp CMP: INR2,429 TP: INR2,707 (+11%) Neutral Stock Info Volumes below estimate at 424.8k (-6% YoY) Bloomberg HMCL IN Equity Shares (m) 200 Weakness continues post festival season M.Cap.(INRb)/(USDb) 485.2 / 6.8 52-Week Range (INR) 3123 / 2228  HMCL’s volumes fell ~6% YoY to 424.8k units (our estimate: 455k) in Dec’19. 1, 6, 12 Rel. Per (%) -2/-9/-36  We estimate volumes to decline by ~13% in FY20, implying a residual decline of Financials Snapshot (INR b) 1%. We see a downside risk to our volumes estimate, particularly due to the Y/E MARCH 2019 2020E 2021E impact from BSVI transition. Sales 336.5 298.7 335.1  HMCL trades at 15.8/14x FY20/21E EPS. Maintain Neutral. EBITDA 49.3 42.8 47.1 NP 33.8 30.7 34.8 Adj. EPS (INR) 169.5 153.6 174.0 EPS Gr. (%) -8.5 -9.4 13.3 BV/Sh. (INR) 643.7 687.4 746.9 RoE (%) 27.5 23.1 24.3 RoCE (%) 26.4 22.3 23.4 Valuations P/E (x) 14.4 15.8 14.0 P/BV (x) 3.8 3.5 3.3 EV/EBITDA (x) 8.6 9.6 8.5

Snapshot of volumes for Dec’19 YoY MoM Residual FY20 YTD Residual YoY MoM FY20 FY19 (%) FY20 Monthly Monthly Company Sales Dec-19 Dec-18 Nov-19 Gr. (%) Gr. (%) (%) chg (%) chg YTD YTD chg estimate Run rate Run rate Hero MotoCorp 4,24,845 4,53,985 -6.4 5,16,775 -17.8 50,75,208 60,39,465 -16.0 68,38,606 -12.6 -1.0 5,87,799 5,63,912

3 January 2020 9 TVS Motor CMP: INR 459 TP: INR434 (-5%) Neutral Stock Info Wholesales below estimate at 231.6k units (-15% YoY) Bloomberg TVSL IN Equity Shares (m) 475 Domestic volumes down ~25% YoY, exports up ~22% YoY M.Cap.(INRb)/(USDb) 218 / 3.1 52-Week Range (INR) 576 / 340  TVSL’s wholesales of 231.6k units missed our estimate of 245.8k in Dec’19. 1, 6, 12 Rel. Per (%) -2/3/-30  Domestic volumes declined ~25% YoY, while exports increased 22% YoY. Financials Snapshot (INR b)  Motorcycle volumes declined ~13% YoY to ~93.7k units (our estimate: 100k). Y/E MARCH 2019 2020E 2021E  Scooter volumes were down ~18% YoY at 74.7k units (our estimate: 80k). Sales 182.1 174.2 199.2  Moped dispatches declined ~21% YoY to 47.2k units (our estimate: 50k). EBITDA 14.3 14.9 17.9  3W volumes increased ~26% YoY to ~16k (in-line), led by healthy exports. Adj. PAT 6.7 6.8 8.7  The stock trades at 32.2/25.1x FY20/21E EPS. Maintain Neutral. EPS (INR) 14.1 14.2 18.3 EPS Gr. (%) 1.1 0.9 28.7 BV/Sh (INR) 70.5 81.4 94.9 RoE (%) 21.5 18.7 20.8 RoCE (%) 22.4 18.8 21.8 Valuations P/E (x) 32.5 32.2 25.1 P/BV (x) 6.5 5.6 4.8 EV/EBITDA (x) 16.4 15.6 12.8

Snapshot of volumes for Dec-19 YoY MoM Residual FY20 YTD Residual YoY MoM FY20 FY19 (%) FY20 Monthly Monthly Company Sales Dec-19 Dec-18 Nov-19 Gr. (%) Gr. (%) (%) chg (%) chg YTD YTD chg estimate Run rate Run rate TVS Motor 2,31,571 2,71,395 -14.7 2,66,582 -13.1 26,30,548 30,06,435 -12.5 35,58,039 -9.1 2.2 3,09,164 2,92,283 Motorcycles 93,697 1,07,189 -12.6 1,05,963 -11.6 10,84,025 11,84,407 -8.5 14,41,355 -7.6 -5.0 1,19,110 1,20,447 Scooters 74,716 91,480 -18.3 84,169 -11.2 9,08,012 10,30,404 -11.9 12,76,448 -1.9 36.1 1,22,812 1,00,890 Mopeds 47,206 60,040 -21.4 59,218 -20.3 5,07,202 6,76,729 -25.1 6,67,387 -25.6 -27.3 53,395 56,356 Three-Wheelers 15,952 12,686 25.7 17,232 -7.4 1,31,309 1,14,895 14.3 1,72,848 10.5 0.0 13,846 14,590 Total Domestic 1,58,059 2,11,133 -25.1 1,92,522 -17.9 19,93,588 24,40,322 -18.3 27,00,556 -14.3 -0.7 2,35,656 2,21,510 Total Exports 73,512 60,262 22.0 74,060 -0.7 6,36,960 5,66,113 12.5 8,57,483 12.6 12.7 73,508 70,773

3 January 2020 10 Eicher Motors CMP: INR21,611 TP: INR24,900(+15%) Buy Stock Info Bloomberg EIM IN Royal Enfield disappoints; VECV above estimates Equity Shares (m) 27 M.Cap.(INRb)/(USDb) 590.1 / 8.3 52-Week Range (INR) 23428 / 15197  Royal Enfield (RE) dispatches declined ~14% YoY to 50.4k units (our estimate: 1, 6, 12 Rel. Per (%) -1/5/-14 ~55k units). Domestic retails were broadly similar to wholesales.  Financials Snapshot(INR b) RE exports declined ~14% YoY to ~1.9k units. Y/E MARCH 2019 2020E 2021E  We estimate RE volumes to decline ~13% in FY20, implying a residual decline of Net Sales 98.0 93.6 114.7 ~5%. Considering better sentiment at ground level, we see a limited downside EBITDA 29.0 23.5 30.8 risk to our FY20 estimates. NP 22.2 19.9 25.3  VECV’s volumes increased ~19% YoY to ~5k units (our estimate: ~4.4k). Adj. EPS (INR) 814 730 927  Domestic LMD segment declined by ~15% YoY and HD segment by ~47% YoY. EPS Gr. (%) 1.8 -10.3 27.0 BV/Sh. (INR) 3,269 3,860 4,638 Buses volumes grew ~58% YoY. RoE (%) 27.8 20.5 21.8  VECV exports declined 50% YoY to 500 units. RoCE (%) 26.5 19.8 21.3  The stock trades at 29.6x/23.3x FY20E/FY21E consol. EPS. Maintain Buy. Valuations P/E (x) 26.6 29.6 23.3 P/BV (x) 6.6 5.6 4.7 EV/EBITDA (x) 15.2 19.1 14.3

Snapshot of volumes for Dec-19 YOY MoM Residual FY20 YTD Residual YoY (%) MoM FY20 YoY (%) Monthly Monthly Eicher Motors Dec-19 Dec-18 Nov-19 FY20 YTD FY19 YTD (%) chg Gr. (%) chg (%) chg estimate chg Run rate Run rate Royal Enfield 50,416 58,278 -13.5 60,411 -16.5 5,32,970 6,29,936 -15.4 7,19,468 -12.9 -4.9 62,166 59,219 VECV 5,042 6,236 -19.1 3,594 40.3 37,092 51,959 -28.6 52,227 -28.4 -28.0 5,045 4,121 Domestic LMD 2,757 3,245 -15.0 1,930 42.8 20,735 26,852 -22.8 29,411 -22.0 -20.1 2,892 2,304 Domestic HD 653 1,235 -47.1 554 17.9 5,547 9,689 -42.7 6,906 -48.0 -62.2 453 616 Domestic Buses 1,000 632 58.2 464 115.5 6,609 7,349 -10.1 9,349 -13.0 -19.3 913 734 VTI 132 123 7.3 144 -8.3 781 837 -6.7 1,251 2.0 20.7 157 87 Total Domestic 4,542 5,235 -13.2 3,092 46.9 33,672 44,727 -24.7 46,916 -26.0 -29.2 4,415 3,741 Exports 500 1,001 -50.0 502 -0.4 3,420 7,232 -52.7 5,311 -46.9 -31.9 630 380

3 January 2020 11 CMP: INR84 TP: INR95 (+13%) Buy

Stock Info Above estimate at 11.2k units led by M&HCV Bloomberg AL IN MHCV sales down ~38% YoY, LCV sales flat YoY Equity Shares (m) 2,927 M.Cap.(INRb)/(USDb) 246.4 / 3.5 52-Week Range (INR) 103 / 57  Wholesale dispatches of 11.2k units (-28% YoY, +10% MoM) in Dec’19 were 1, 6, 12 Rel. Per (%) 6/-9/-32 above our estimate of 9.8k.  M&HCV volumes, which accounted for 63% of total volumes in the month, Financials Snapshot (INR b) Y/E MARCH 2019 2020E 2021E declined ~38% YoY (+18% MoM) to ~7k units (our estimate: ~5.8k units). Sales 290.5 187.3 229.4  LCV volumes were down 1.3% YoY at 4.1k units (our estimate: ~4k). EBITDA 31.4 13.7 21.0  The stock trades at 46.9/23.2x FY20/21E EPS and 19.4/11.8x FY20/21E NP 20.3 5.1 10.3 EV/EBITDA. Maintain Buy. Adj. EPS (INR) 6.9 1.7 3.5 EPS Gr. (%) 16.4 -75.0 102.2 BV/Sh. (INR) 28.4 27.2 28.0 RoE (%) 26.0 6.2 12.7 RoCE (%) 23.2 6.0 11.4 Valuations P/E (x) 11.7 46.9 23.2 P/BV (x) 2.9 3.0 2.9 EV/EBITDA (x) 7.3 19.4 11.8

Snapshot of volumes for Dec-19 YoY MoM Residual FY20 YTD Residual YoY MoM FY20 FY19 (%) FY20 Monthly Monthly Company Sales Dec-19 Dec-18 Nov-19 Gr. (%) Gr. (%) (%) chg (%) chg YTD YTD chg estimate Run rate Run rate Ashok Leyland 11,168 15,490 -27.9 10,175 9.8 98,963 1,37,840 -28.2 1,34,403 -31.9 -40.5 11,813 10,996 CV (ex LCV) 7,025 11,292 -37.8 5,966 17.8 61,090 98,837 -38.2 83,821 -41.3 -48.4 7,577 6,788 LCV 4,143 4,198 -1.3 4,209 -1.6 37,873 39,003 -3 50,582 -7.2 -18.0 4,236 4,208

3 January 2020 12 Sector Update | 2 January 2020 Media

TRAI revises NTO regulations, bouquet norms

 The Telecom Regulatory Authority of India (TRAI) has imposed new regulation on pricing and bouquet offerings by broadcasters on pay channels, which will be effective from 1st Mar’20. Key takeaways:  Sum of the individual channels in a-la-carte packs shall not exceed 1.5x the rate of the bouquet. This will prevent aggressive discounting by broadcasters and limit discounting to max of 33% for the bouquet as against the current discount of 43%/45% by ZEEL/SUNTV.  A-la-carte rates of each channel should be less than 3x the average price of a pay channel forming part of that bouquet. This will prevent clubbing of lower-priced channels with higher-priced ones.  Channels with MRP above INR12 (from INR19 earlier) won’t be allowed to be part of the bouquets.  The reduced prices of popular a-la-carte channels (between INR12-19) and the reducing price differential between bouquets and a-la-carte channels would lead to a rise in the number of households opting for a-la-carte channels over bouquet offering.  Alternately, some of the low-priced channels would be organized into free-to-air packs so that the broadcasters can maintain their ad revenues and viewership over these channels.  We believe this could lead to a fall in subscription revenue for broadcasters by 5%- 10%, which had increased by over 20% in FY19 post the implementation of the NTO regime.

To prevent aggressive discounting by broadcasters on their bouquets:  Sum of the individual channels in a-la-carte packs shall not exceed 1.5x the rate of the bouquet: This will prevent aggressive discounting by broadcasters and limit discounting to max of 33% for the bouquet, as against the current discount of 40%-55% for most of the broadcasters. ZEEL/SUNTV offer an average of 43%/45% discount across their bouquets. It would lead to an increase in ARPU for broadcasters as bouquet prices will increase due to reduced discounting, if broadcasters maintain their existing bouquets.  A-la-carte rates of each channel should be less than 3x the average price of a pay channel forming part of that bouquet: This will prevent clubbing of lower- priced channels with higher-priced ones (which leads confusion in the minds of consumers because of the higher number of less-popular low-priced channels). It would also lead to some channels being offered as part of free-to-air channels to make bouquet plans effective and gain viewership.

Channels with MRP above INR12 (from INR19 earlier) won’t be allowed to be part of the bouquets Of the existing 330 pay channels in India, 94 (28%) are priced at INR0-1 and 66 (20%) are priced at INR18-19. This has led to offerings that club a high number of low- value and less-popular packs with higher-priced and most preferred channels. The move will lead to a reduction in the number of low-priced channels offered under a bouquet. ZEEL/SUNTV have 26/1 channels priced between INR0-1 and 9/6 channels

3 January 2020 13

priced above INR12, out of the total 42/25 (SD channels) channels under offering. Note that Zee’s bouquet majorly consists of unpopular channels clubbed with popular ones to push low-priced unpopular channels. Number of bouquets offered should not exceed total number of pay channels offered by broadcasters This will avoid unnecessary bouquet offering by broadcasters. ZEEL/SUNTV have 86/26 different bouquet offerings with 59/26 pay channels, and thus the number of bouquet offerings will be reduced by broadcasters.

Subscription revenues could fall by 5%-10%  The move might lead to broadcasters reducing the price of higher-priced popular channels (over INR12) and increasing the price of lower-priced channels (INR0-2) so that they could be clubbed into bouquets and viewership can be maintained across these channels.  Reduced prices of popular a-la-carte channels (between INR12-19) and the reducing price differential between bouquets and a-la-carte channels would lead to a rise in the number of households opting for a-la-carte channels over bouquet offering.  Alternately, some of the low-priced channels would be organized into free-to-air packs so that broadcasters can maintain their ad revenue and viewership over these channels.  We believe this could lead to a fall in subscription revenue by 5%-10%, which had increased by over 20% for broadcasters post the implementation of the NTO regime.  ZEEL’s domestic subscription revenue had increased 17% YoY to INR19.2b in FY19 post the NTO regime. It was up ~27% YoY in 2QFY20 due to a pick-up in execution of NTO regime and formed 30% of total revenue.  SUNTV domestic subscription revenue had increased 16% YoY to INR13.2b in FY19 post the NTO regime. It was up ~17% YoY in 2QFY20 and formed ~50% of total revenue. Thus, SUNTV is likely to face a higher impact on subscription revenues compared to ZEEL.

Other key highlights:  Cap at carriage fee paid by broadcasters at INR0.4m: The move will be a bit positive for some broadcasters with a reduction in carriage fee for channels paid to MSOs and DTH operators. However, ZEEL pays negligible amount of carriage fee and thus the impact won’t be material.  The number of free channels provided under network capacity fee (NCF) has been increased to 200 at INR130 and INR160 for more than 200 channels, and the channels declared mandatory by MIB won’t be part of these free channels.  Broadcasters are required to publish revised MRP of a-la-carte channels and bouquets on their website by 15th Jan’20 and the new regulations would be effective from 1st Mar’20.

3 January 2020 14

In conversation

1. : HDFC-APOLLO MUNICH DEAL RECEIVES IRDAI NOD, SET TO CLOSE NEXT WEEK; Shobana Kamineni, Executive Vice-Chairman  Stake sale to Housing Development Finance Corporation is expected to close next week after the deal received all necessary approvals.  It takes significant pressure of the family pledged shares for sure and this is something that company has been very conscious about for the past year and it will reduce pledged shares.  Majority of the proceeds will be deployed into company and the family that owns the balance. Pledge in the company after the Apollo Munich deal will be 25-26 percent.  This transaction will give about Rs 300 crore to company, so it will bring down the debt to some level.

2. SUNDARAM FINANCE: NOW IS TIME TO ENSURE QUALITY OF PORTFOLIO, NOT TO CHASE GROWTH; TT Srinivasaraghavan, MD  Disbursement growth is not in top three items of priority because of falling demand in the commercial vehicle segment. Best guess is that Q3FY21 is when one might start to see greenshoots.  Don’t think this is the time to be chasing growth at all. It is a lot more about making sure that your portfolio quality stays robust, you keep your margins as healthy as you can and fasten your seat belt and hang on because these are turbulent times.  Growing disbursements for me is not a key priority today.  Market share has improved because part of it is maybe some of the others are a little starved for liquidity and therefore companies like ourselves have seen the benefit of that. So have seen improvement in market share in some of the segments in which company operates including M&HCV - increased market share is nice but if CV sales are down 50 percent, that doesn’t help.

3 January 2020 15

3. BAJAJ AUTO: EXPECT TRAJECTORY OF RETAIL SALES TO INCREASE IN JAN, FEB & MARCH; Soumen Ray, CFO  Pressure on numbers may not continue in coming months. In fact, there is expectation of some pre-buying ahead of BS-VI transition.  In the month of December, the retail sales have gone back to the trends that were tracking in Q2. However, will see how Q4 pans out. Hopefully, there would be some buoyancy which would come back towards the later part of Q4.  There has been increase in footfalls in the sales outlets and think by the time company come towards end of January or beginning of February, this would increase.  In Q3, company has done the highest ever exports, primarily backed by motorcycles in all three geographies – Africa, Latin America and also in Southeast Asia.  Should be in the range of 19-20 percent market share in domestic retail segment.

3 January 2020 16

From the think tank

1. OPPORTUNITIES FOR INDIA IN THE ASIAN CENTURY  India is at an inflection point. Its recent period of significant growth—faster than the global average—has stalled in the face of global headwinds against trade, volatile commodity markets, stagnant private investment, weaker domestic consumption and constrained government spending in the wake of recent fiscal and monetary reforms. At the same time, Asia is becoming the world’s powerhouse and economic center. New research from the McKinsey Global Institute finds that Asia could generate more than half of the world’s GDP by 2040 as cross-border flows shift toward the region, which is rapidly integrating; with 60% of goods traded, 56% of greenfield foreign direct investment (FDI) and 74% of journeys by Asian air travelers taking place within the region. This research identifies 4 distinct sub-Asias—diverse groups of economies with characteristics that complement each other, which are fast becoming increasingly interconnected. As a result, dynamic new flows and networks are appearing, redefining globalization as we know it. The new era will be one of regionalization, and Asia is taking a lead. Historically, India—and other countries in ‘Frontier Asia’ (Bangladesh, Sri Lanka, Kazakhstan, Uzbekistan, etc)—have had relatively low levels of integration when compared with the rest of the region; only around 31% of their flows are intra-regional. Yet, how they now respond to these shifting flows, and the opportunities they present, could be key in defining and delivering its next chapter of growth.

2. MONETARY POLICY’S BLINKERED VIEW OF CREDIT  The RBI’s frequent shifts in policy relating to bank lending rates over the last 25 years — starting with the PLR in 1994, the BPLR (2003), Base Rate (2010), the MCLR (2016), and now, external benchmarking — reflect policy rate uncertainty. Leaving aside the market rates, even banks’ lending rates remain at variance with monetary policy intents. Growing financial sector instability/vulnerability, growth uncertainty, credit-constrained MSMEs, low farm prices, surplus liquidity with banks as against unprecedented liquidity constraint with businesses and a high level of cash in the economy despite digitisation reflect poor monetary policy outcomes. How did we get to such adverse conditions? Why is the financial sector more vulnerable now than ever before, despite the experience/expertise gained by the RBI over the last 25 years, the advent of monetary-model based policy analysis and economic forecasting, and Big Data analytics? One of the key reasons lies in the bank-centric monetary policy framework. It misses out on the systemic role of the trade credit channel in defining monetary policy transmission (MPT). A guesstimate of working capital requirement based on the turnover of 94.3 lakh firms which filed income tax/service tax returns for FY14, the outstanding working capital of banks and miniscule bank working capital flows to the unorganised sector show that banks meet less than one-third of the aggregate working capital needs of businesses. A monetary policy architecture which built on a narrow, bank-centric base cannot be stable and sound.

3 January 2020 17

3. AMERICA’S WAR ON CHINESE TECHNOLOGY  The worst foreign-policy decision by the United States of the last generation – and perhaps longer – was the “war of choice” that it launched in Iraq in 2003 for the stated purpose of eliminating weapons of mass destruction that did not, in fact, exist. Understanding the illogic behind that disastrous decision has never been more relevant, because it is being used to justify a similarly misguided US policy today. The decision to invade Iraq followed the illogic of then-US Vice President Richard Cheney, who declared that even if the risk of WMDs falling into terrorist hands was tiny – say, 1% – we should act as if that scenario would certainly occur. Such reasoning is guaranteed to lead to wrong decisions more often than not. Yet the US and some of its allies are now using the Cheney Doctrine to attack Chinese technology. The US government argues that because we can’t know with certainty that Chinese technologies are safe, we should act as if they are certainly dangerous and bar them. Proper decision-making applies probability estimates to alternative actions. A generation ago, US policymakers should have considered not only the (alleged) 1% risk of WMDs falling into terrorist hands, but also the 99% risk of a war based on flawed premises. By focusing only on the 1% risk, Cheney (and many others) distracted the public’s attention from the much greater likelihood that the Iraq War lacked justification and that it would gravely destabilize the Middle East and global politics.

3 January 2020 18

Click excel icon for detailed Valuation snapshot valuation guide

CMP TP % Upside EPS (INR) EPS Gr. YoY (%) P/E (x) P/B (x) ROE (%) Company Reco (INR) (INR) Downside FY19 FY20E FY21E FY19 FY20E FY21E FY20E FY21E FY20E FY21E FY20E FY21E Automobiles Amara Raja Buy 727 790 9 28.3 39.1 38.2 2.6 38.0 -2.2 18.6 19.0 3.3 2.9 18.7 16.2 Ashok Ley. Buy 84 95 13 6.9 1.5 3.5 16.4 -77.8 126.8 46.9 23.2 3.1 2.9 6.2 12.7 Bajaj Auto Neutral 3119 3169 2 165.4 178.0 188.0 9.3 7.6 5.6 17.4 16.6 3.7 3.3 22.4 21.2 Buy 491 540 10 22.2 17.7 22.1 20.3 -20.2 24.9 27.7 22.2 3.9 3.5 14.7 16.6 Bosch Neutral 15403 13694 -11 542.4 419.0 510.0 15.5 -22.7 21.7 36.8 30.2 5.9 5.2 14.7 18.2 CEAT Buy 1033 1116 8 66.9 51.7 63.1 4.6 -22.8 22.0 20.0 16.4 1.4 1.3 7.3 8.4 Eicher Mot. Buy 21611 24900 15 813.9 730 927 1.8 -10.3 27.0 29.6 23.3 5.6 4.7 20.5 21.8 Endurance Tech. Buy 1073 1240 16 36.2 43.0 48.9 24.5 18.7 13.8 25.0 21.9 5.1 4.4 21.8 21.3 Escorts Neutral 619 710 15 53.2 52.7 59.8 34.7 -1.0 13.4 11.7 10.4 1.8 1.5 16.2 15.9 Exide Ind Buy 189 232 23 9.1 10.4 11.1 10.6 14.6 6.9 18.2 17.0 2.5 2.2 13.5 13.2 Hero Moto Neutral 2429 2707 11 169.5 153.6 174.0 -8.5 -9.4 13.3 15.8 14.0 3.5 3.3 23.1 24.3 M&M Buy 540 679 26 42.7 34.9 39.5 4.1 -18.3 13.2 15.5 13.7 1.7 1.6 11.3 10.2 Mahindra CIE Buy 169 191 13 14.5 11.4 14.5 48.6 -21.7 27.3 14.9 11.7 1.4 1.2 9.5 10.9 Buy 7332 8000 9 247.7 177.8 256.6 -7.1 -28.2 44.3 41.2 28.6 4.6 4.2 10.7 14.3 Motherson Sumi Buy 150 167 11 5.1 4.6 6.7 -5.2 -9.3 45.6 32.3 22.2 3.9 3.4 12.4 16.4 Buy 194 195 1 -4.4 -0.3 11.7 PL Loss LP NM 16.6 1.1 1.0 -0.2 6.4 TVS Motor Neutral 459 434 -5 14.1 14.2 18.3 1.1 0.9 28.7 32.2 25.1 5.6 4.8 18.7 20.8 Aggregate -21.1 -12.4 39.0 28.0 20.1 3.0 2.7 10.6 13.4 Banks - Private AU Small Finance Buy 796 800 0 13.2 23.9 30.7 28.9 81 28.4 33.3 26.0 5.6 4.6 19.0 19.4 Buy 757 825 9 18.2 24.0 46.5 1,538.1 32 93.5 31.5 16.3 2.4 2.1 8.4 14.0 DCB Bank Neutral 183 200 9 10.5 12.4 16.4 32.0 18.0 32.6 14.8 11.1 1.7 1.5 12.6 14.6 Equitas Hold. Buy 108 125 16 5.2 7.7 13.1 1,186.6 47.8 70.9 14.1 8.2 1.4 1.2 10.2 15.4 Buy 92 110 19 6.3 8.3 10.3 32.2 32.0 23.7 11.1 9.0 1.3 1.1 11.9 13.3 HDFC Bank Buy 1287 1410 10 39.6 49.0 61.9 16.9 23.6 26.4 26.3 20.8 4.1 3.5 16.8 18.4 ICICI Bank Buy 541 625 16 5.2 17.0 29.3 -52.8 225.6 72.3 31.8 18.5 3.1 2.7 10.1 15.7 IndusInd Buy 1529 1600 5 54.9 89.8 124.0 -8.8 63.6 38.1 17.0 12.3 2.9 2.3 18.6 21.1 Kotak Mah. Bk Neutral 1671 1600 -4 37.7 46.4 56.1 16.0 23.0 21.0 36.0 29.8 4.8 4.1 14.1 15.0 RBL Bank Buy 370 350 -5 20.3 16.3 29.2 34.3 -19.8 79.4 22.7 12.6 1.9 1.7 8.9 14.4 South Indian Buy 10 15 45 1.4 1.9 2.4 -26.2 39.4 28.0 5.4 4.2 0.3 0.3 6.3 7.8 Aggregate 16.7 46.5 44.5 27.6 19.1 3.5 3.0 12.6 15.8 Banks - PSU BOB Buy 104 120 15 1.6 5.4 19.7 LP 230.6 264.3 19.3 5.3 0.7 0.6 3.2 12.0 BOI Neutral 71 90 26 -24.6 -0.8 8.1 Loss Loss LP NM 8.8 0.5 0.4 -0.5 4.7 Canara Neutral 229 278 22 4.7 32.8 41.7 LP 603.0 27.1 7.0 5.5 0.5 0.5 6.6 7.9 Indian Bk Neutral 103 160 56 6.7 18.2 24.3 -74.4 171.3 33.4 5.7 4.2 0.3 0.3 5.8 7.9 PNB Neutral 67 65 -3 -27.1 -4.9 7.6 Loss Loss LP NM 8.7 0.8 0.7 -5.4 8.5 SBI Buy 339 425 25 2.6 27.6 39.3 LP 971 42.5 12.3 8.6 1.2 1.1 11.1 14.1 Union Bk Neutral 55 80 45 -20.1 -2.9 1.9 Loss Loss LP NM 29.1 0.4 0.4 -2.1 1.4 Aggregate Loss LP 113 16 7.4 0.8 0.8 5.3 10.2 NBFCs Aditya Birla Cap Buy 107 110 3 4.0 4.3 5.6 25.7 9.8 29.3 24.5 19.0 2.2 1.9 9.8 10.6 Bajaj Fin. Neutral 4248 3850 -9 69.3 105.6 134.0 59.6 52.5 26.8 40.2 31.7 9.8 7.7 27.2 27.2 Cholaman.Inv.&Fn Buy 309 350 13 15.2 18.4 21.4 21.7 21.0 16.9 16.8 14.4 3.2 2.7 21.0 20.4 HDFC Buy 2466 2600 5 43.9 52.1 59.8 30.9 18.7 14.9 47.3 41.2 5.2 4.7 15.8 15.9 HDFC Life Insur. Neutral 634 600 -5 6.3 7.3 8.8 14.6 15.2 20.1 86.8 72.3 5.7 4.8 21.3 19.4 ICICI Pru Life Buy 487 520 7 8.0 8.5 9.4 -29.5 7.3 10.6 57.1 51.6 2.8 2.4 16.5 17.3 Indostar Capital Buy 196 270 38 26.1 24.8 32.6 2.5 -5.0 31.6 7.9 6.0 0.6 0.5 7.3 8.8 L&T Fin Holdings Buy 121 130 7 11.2 12.4 14.1 64.8 11.1 13.6 9.7 8.6 1.5 1.3 16.8 16.5 LIC Hsg Fin Buy 456 490 7 48.1 55.9 60.8 21.4 16.2 8.8 8.2 7.5 1.2 1.1 16.3 15.6 MAS Financial Buy 864 830 -4 27.8 32.3 39.4 47.1 16.0 22.1 26.8 21.9 4.6 4.0 19.4 20.2 M&M Fin. Buy 339 400 18 25.3 25.2 33.2 53.9 -0.5 31.9 13.5 10.2 1.8 1.6 14.0 16.4 Muthoot Fin Neutral 768 715 -7 49.2 66.3 76.3 10.8 34.8 15.0 11.6 10.1 2.8 2.3 26.2 25.2 PNB Housing Buy 493 630 28 71.1 82.4 89.7 40.9 15.8 8.8 6.0 5.5 1.0 0.8 17.4 16.4

3 January 2020 19

Click excel icon for detailed Valuation snapshot valuation guide

CMP TP % Upside EPS (INR) EPS Gr. YoY (%) P/E (x) P/B (x) ROE (%) Company Reco (INR) (INR) Downside FY19 FY20E FY21E FY19 FY20E FY21E FY20E FY21E FY20E FY21E FY20E FY21E Repco Home Buy 327 370 13 37.5 48.6 52.2 16.7 29.7 7.3 6.7 6.3 1.1 1.0 18.2 16.6 Shriram City Buy 1388 1600 15 149.9 164.0 177.3 48.7 9.5 8.1 8.5 7.8 1.2 1.1 15.7 14.9 Union Shriram Trans. Buy 1160 1385 19 113.0 128.4 138.5 4.2 13.6 7.9 9.0 8.4 1.4 1.3 17.2 16.0 Aggregate 33.2 22.4 16.1 25.7 22.2 3.9 3.4 15.0 15.2 Capital Goods ABB Buy 1295 1460 13 12.0 19.3 25.8 12.7 61.2 33.7 67.0 50.1 6.0 6.8 14.0 13.5 Bharat Elec. Buy 103 138 34 7.9 7.3 8.6 37.7 -7.4 17.8 14.1 12.0 2.5 2.3 17.8 18.8 BHEL Neutral 45 52 15 3.5 3.4 3.5 58.9 -3.4 3.8 13.5 13.0 0.5 0.5 3.7 3.9 Blue Star Neutral 813 870 7 19.5 26.8 33.1 34.7 37.7 23.6 30.3 24.6 7.3 6.0 24.2 24.3 CG Cons. Elec. Buy 241 296 23 6.0 7.6 9.6 15.5 27.1 26.1 31.7 25.1 11.0 8.8 38.5 38.7 Buy 569 640 12 26.1 24.4 26.6 10.8 -6.5 9.1 23.4 21.4 3.6 3.4 15.8 16.2 Engineers India Buy 99 146 47 5.9 6.5 8.4 -8.4 10.5 30.4 15.3 11.8 2.7 2.4 17.1 20.2 GE T&D Neutral 153 167 9 8.3 2.9 6.7 10.8 -65.4 132.9 53.2 22.9 2.7 2.5 5.1 11.5 Neutral 654 730 12 12.7 13.3 16.5 12.9 5.4 24.0 49.0 39.6 8.6 7.5 17.5 19.0 K E C Intl Buy 311 430 38 18.9 24.2 28.6 5.7 28.1 17.9 12.8 10.9 2.7 2.2 20.9 20.3 L&T Buy 1345 1680 25 63.5 77.8 96.5 22.8 22.5 24.1 17.3 13.9 2.7 2.4 15.5 16.8 Buy 1514 1705 13 25.1 30.5 40.0 27.1 21.6 31.0 49.6 37.8 6.0 5.3 12.0 14.1 Solar Ind Neutral 1115 1117 0 28.9 34.9 39.9 18.6 20.6 14.5 32.0 27.9 6.8 5.7 23.1 22.1 Thermax Neutral 1098 1170 7 27.2 29.8 39.0 32.4 9.6 31.0 36.9 28.2 3.8 3.4 10.7 12.8 Va Tech Wab. Neutral 193 195 1 23.1 16.3 24.4 -9.5 -29.5 49.4 11.9 7.9 0.9 0.8 8.1 11.1 Buy 659 785 19 15.7 20.0 24.6 -9.1 27.0 23.1 33.0 26.9 4.8 4.3 14.5 15.9 Aggregate 15.8 16.6 22.3 22.9 18.7 2.9 2.6 12.6 14.0 Cement Ambuja Cem. Neutral 205 220 7 6.1 7.2 7.1 -3.2 17.8 -0.3 28.6 28.7 1.8 1.8 6.6 6.3 ACC Buy 1493 1900 27 53.5 75.0 82.0 9.9 40.1 9.4 19.9 18.2 2.4 2.1 12.7 12.4 Birla Corp. Buy 629 815 30 33.2 58.2 68.0 53.6 75.2 16.9 10.8 9.3 1.0 0.9 9.6 10.3 Dalmia Bhar. Buy 819 1020 25 15.8 16.5 24.9 4.3 4.3 51.2 49.7 32.9 1.5 1.4 3.0 4.4 Grasim Inds. Neutral 767 740 -3 66.1 73.1 84.7 39.7 10.6 15.9 10.5 9.0 1.2 1.1 4.3 4.1 India Cem Neutral 77 80 4 2.3 4.5 5.7 -31.0 98.4 26.5 17.2 13.6 0.4 0.4 2.6 3.2 J K Cements Buy 1218 1370 12 34.1 59.8 64.4 -19.8 75.3 7.7 20.4 18.9 3.0 2.7 16.0 15.0 JK Lakshmi Ce Buy 304 425 40 6.8 19.2 24.3 -8.7 184.1 26.4 15.8 12.5 2.1 1.8 14.0 15.5 Ramco Cem Neutral 769 750 -3 21.9 28.4 32.5 -8.7 30.1 14.4 27.0 23.6 3.6 3.2 14.1 14.2 Orient Cem Buy 77 105 37 2.3 5.3 5.8 7.5 130.0 9 14.4 13.2 1.4 1.3 9.9 9.9 Prism Johnson Buy 67 100 48 3.1 2.3 2.9 123.4 -26.3 24.9 29.3 23.4 2.8 2.5 9.8 11.3 Sanghi Inds. Buy 40 60 50 2.0 3.8 2.7 -44.9 87.7 -30.9 10.4 15.1 0.6 0.5 5.7 3.7 Shree Cem Neutral 21222 21000 -1 324.1 443.1 606.5 -18.2 36.7 36.9 47.9 35.0 6.8 5.8 15.1 18.0 Ultratech Buy 4243 5050 19 90.3 143.6 189.4 1.0 59.0 31.9 29.6 22.4 3.1 2.8 11.7 13.8 Aggregate 10.0 33.5 20.5 21.8 18.1 2.2 2.0 10.0 11.1 Consumer Sell 1790 1565 -13 23.1 28.9 31.6 9.1 25.5 9.3 61.9 56.6 16.1 14.5 27.5 26.9 Britannia Neutral 3053 3458 13 48.1 56.9 65.2 15.1 18.3 14.6 53.6 46.8 16.1 15.7 31.0 34.0 Colgate Buy 1460 1815 24 27.4 30.1 37.5 8.8 9.9 24.5 48.5 38.9 28.7 31.4 57.9 77.1 Neutral 460 455 -1 8.5 9.1 10.2 9.5 7.3 11.6 50.4 45.1 12.7 11.7 26.8 27.1 Buy 312 380 22 12.2 13.0 14.7 0.2 6.7 13.5 24.1 21.2 6.1 5.9 26.7 28.2 Godrej Cons. Neutral 684 700 2 15.1 15.7 18.0 7.2 4.1 14.7 43.5 37.9 9.1 8.8 21.5 23.6 GSK Cons. Neutral 8386 9161 9 216.1 290.3 327.6 29.8 34.3 12.8 28.9 25.6 7.5 6.6 27.7 27.5 HUL Buy 1938 2378 23 28.9 33.2 40.8 18.2 14.8 22.9 58.4 47.5 52.7 49.4 92.0 107.4 ITC Neutral 240 275 15 10.2 12.6 13.0 14.8 23.7 3.8 19.1 18.4 4.7 4.3 25.5 24.4 Jyothy Lab Neutral 151 176 16 5.4 6.2 7.6 10.5 15.5 22.0 24.4 20.0 3.9 3.7 16.7 19.2 Marico Neutral 337 358 6 7.2 7.5 8.0 14.3 4.0 6.7 45.2 41.9 12.0 10.5 29.0 26.7 Nestle Neutral 14725 14034 -5 178.6 214.6 251.5 27.5 20.2 17.2 68.6 58.5 65.8 58.1 71.0 105.5 Page Inds Neutral 23589 24765 5 353.2 387.3 463.0 13.5 9.7 19.6 60.9 50.9 29.8 26.7 48.9 52.3 Parag Milk Foods Buy 142 171 21 15.7 11.8 19.0 51.5 -25.2 61.7 12.0 7.5 1.3 1.2 11.4 16.5 Pidilite Ind. Neutral 1399 1354 -3 18.6 22.9 27.1 -2.0 23.4 18.4 61.1 51.6 14.3 12.1 25.5 25.4

3 January 2020 20

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CMP TP % Upside EPS (INR) EPS Gr. YoY (%) P/E (x) P/B (x) ROE (%) Company Reco (INR) (INR) Downside FY19 FY20E FY21E FY19 FY20E FY21E FY20E FY21E FY20E FY21E FY20E FY21E P&G Hygiene Neutral 11321 11441 1 129.6 151.0 200.3 12.5 16.4 32.7 75.0 56.5 34.6 29.1 49.8 56.0 Tata Global Buy 324 347 7 7.0 8.9 9.7 -14.6 26.7 9.5 36.5 33.3 2.7 2.2 7.5 8.3 United Brew Neutral 1282 1340 5 21.3 18.0 26.6 42.8 -15.7 48.4 71.4 48.1 9.4 8.1 14.0 18.1 Buy 594 725 22 9.3 12.5 16.7 38.1 34.1 33.8 47.5 35.5 11.2 8.5 23.6 24.0 Aggregate 14.9 18.6 13.9 40.5 35.6 11.7 10.4 28.8 29.1 Healthcare Alembic Phar Neutral 561 600 7 31.0 38.6 33.2 41.6 24.4 -13.8 14.5 16.9 3.2 2.8 23.9 17.4 Alkem Lab Buy 2084 2325 12 63.8 88.0 108.8 8.4 37.9 23.7 23.7 19.2 4.0 3.4 18.0 19.3 Buy 979 1175 20 44.4 49.3 56.3 -16.1 11.0 14.3 19.9 17.4 3.3 2.9 17.9 17.6 Aurobindo Buy 462 500 8 43.2 47.0 61.7 1.1 8.9 31.3 9.8 7.5 1.6 1.4 18.1 19.9 Neutral 296 250 -16 6.2 7.5 9.6 99.6 21.1 27.9 39.5 30.9 5.3 4.7 14.0 16.1 Cadila Buy 256 265 3 18.3 14.7 17.0 4.3 -19.8 16.1 17.5 15.0 2.3 2.1 11.5 14.8 Neutral 474 500 6 18.7 22.1 25.7 -3.1 18.1 16.3 21.4 18.4 2.3 2.0 10.5 11.0 Divis Lab Neutral 1825 1655 -9 50.0 53.6 67.2 55.0 7.2 25.2 34.0 27.2 6.0 5.1 18.9 20.3 Dr Reddy’s Neutral 2864 2590 -10 105.2 107.2 126.2 62.6 1.9 17.8 26.7 22.7 2.9 2.6 11.7 12.1 Glenmark Neutral 354 325 -8 25.9 24.3 28.5 -9.0 -6.0 16.9 14.5 12.4 1.6 1.4 11.6 12.2 Granules Buy 122 135 11 9.2 13.7 15.1 76.5 48.1 10.7 8.9 8.1 1.7 1.5 21.0 20.0 GSK Pharma Neutral 1623 1590 -2 24.6 32.4 35.2 25.2 31.7 8.5 50.1 46.2 10.4 9.6 20.7 20.8 IPCA Labs Buy 1141 1270 11 37.1 46.9 58.9 95.7 26.4 25.5 24.3 19.4 4.0 3.4 17.5 18.8 Jubilant Life Buy 535 650 22 57.5 59.0 67.9 26.1 2.7 15.1 9.1 7.9 1.5 1.3 17.6 17.3 Buy 373 440 18 10.4 14.4 23.2 -34.5 39.1 60.5 25.8 16.1 2.3 2.0 9.3 13.4 Lupin Buy 775 860 11 23.3 24.5 37.8 -27.1 5.1 54.4 31.6 20.5 2.4 2.2 7.8 11.1 Strides Pharma Buy 376 440 17 6.9 22.8 34.3 -39.2 232.1 50.9 16.5 11.0 1.2 1.1 7.4 10.3 Buy 435 515 18 15.1 18.4 22.1 12.2 21.6 20.6 23.7 19.7 2.3 2.1 10.2 11.3 Torrent Pharma Neutral 1864 1585 -15 42.7 55.7 73.0 -7.1 30.3 31.1 33.5 25.5 5.9 5.1 18.7 21.5 Aggregate 11.9 12.5 22.5 22.8 18.6 2.9 2.5 12.5 13.7 Infrastructure Ashoka Buildcon Buy 109 150 37 11.5 11.6 12.5 35.8 1.2 7.5 9.4 8.7 1.2 1.1 13.8 13.1 IRB Infra Neutral 75 79 5 24.2 20.0 6.8 1.2 -17.2 -66.0 3.7 11.0 0.4 0.4 10.6 3.4 KNR Constructions Buy 264 340 29 17.8 19.7 17.6 -7.8 10.2 -10.5 13.4 15.0 2.2 1.9 17.8 13.6 Sadbhav Buy 124 185 49 10.8 9.2 16.6 -15.7 -15.5 80.8 13.6 7.5 1.0 0.6 7.5 10.5 Engineering Aggregate 7.5 9.3 0.8 0.7 11.0 7.3 Logistics Allcargo Logistics Buy 104 130 25 9.7 10.4 12.9 33.6 7.5 24.1 10.0 8.0 1.1 1.0 12.0 13.2 Concor Buy 572 680 19 19.9 17.2 19.9 14.9 -13.9 16.2 33.3 28.7 3.3 3.1 10.0 11.2 Aggregate 18.5 -10.0 13.5 27.5 24.2 2.7 2.5 9.9 10.5 Media D B Corp Buy 135 194 44 15.7 18.5 21.8 -11.1 18.1 18.2 7.3 6.2 1.3 1.2 17.2 18.9 Ent.Network Buy 265 464 75 10.9 11.8 22.8 60.2 8.7 93.2 22.4 11.6 1.3 1.2 5.9 10.5 Jagran Prak. Neutral 63 60 -4 8.8 11.6 11.5 -8.7 32.1 -0.7 5.4 5.4 0.9 0.8 17.3 15.5 Music Broadcast Buy 29 40 40 2.2 1.8 2.6 22.9 -18.6 41.7 15.7 11.1 1.2 1.1 9.7 10.1 PVR Buy 1879 2280 21 37.9 47.4 57.4 41.9 25.2 21.1 39.6 32.7 5.4 4.7 15.7 15.4 Sun TV Buy 434 525 21 35.4 38.9 40.4 27.6 9.8 4.0 11.2 10.7 2.7 2.3 25.9 23.0 Zee Ent. Neutral 290 285 -2 16.4 19.6 23.8 12.7 19.5 21.3 14.8 12.2 2.7 2.2 20.2 20.0 Aggregate 1.5 24.3 5.5 12.8 12.1 2.2 2.2 16.9 18.1 Metals Hindalco Buy 220 245 11 24.7 20.0 21.5 30.9 -19.1 7.8 11.0 10.2 1.1 1.0 10.9 10.6 Hind. Zinc Neutral 214 234 9 18.8 19.9 20.1 -10.8 5.7 1.0 10.8 10.6 2.4 2.1 23.3 20.8 JSPL Buy 173 184 6 3.3 -7.0 3.0 LP PL LP NM 57.9 0.5 0.5 -2.1 0.9 JSW Steel Buy 277 270 -2 31.8 24.9 27.1 32.4 -21.7 8.8 11.1 10.2 1.7 1.5 16.1 15.4 Nalco Buy 46 53 15 9.2 1.8 4.1 79.9 -80.8 130.8 26.1 11.3 0.8 0.8 3.2 7.3 NMDC Buy 131 126 -4 15.6 14.2 13.8 19.2 -9.3 -2.3 9.3 9.5 1.4 1.4 16.1 14.7 SAIL Neutral 47 34 -28 6.3 -1.2 2.7 2,344.1 PL LP NM 17.7 0.5 0.5 -1.2 2.8 Vedanta Neutral 159 150 -6 18.1 14.2 12.7 -11.0 -21.9 -10.3 11.3 12.5 0.9 0.9 8.3 7.1

3 January 2020 21

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CMP TP % Upside EPS (INR) EPS Gr. YoY (%) P/E (x) P/B (x) ROE (%) Company Reco (INR) (INR) Downside FY19 FY20E FY21E FY19 FY20E FY21E FY20E FY21E FY20E FY21E FY20E FY21E Tata Steel Neutral 485 430 -11 88.6 57.2 61.9 27.3 -35.5 8.3 8.5 7.8 0.8 0.8 10.0 10.0 Aggregate 22.0 -28.0 11.3 11.5 10.4 1.0 1.0 8.9 9.2 Oil & Gas Aegis Logistics Buy 199 247 24 6.6 6.3 12.1 11.9 -5.1 92.9 31.6 16.4 4.4 3.7 14.7 24.4 BPCL Neutral 487 533 9 43.4 31.2 50.0 -12.9 -28.1 60.4 15.6 9.8 2.3 2.0 15.1 21.6 Buy 130 177 36 7.2 8.0 8.9 2.4 11.1 11.4 16.4 14.7 10.0 9.0 64.0 64.2 GAIL Buy 123 152 23 14.0 12.3 14.8 38.4 -12.2 20.5 10.0 8.3 1.2 1.1 12.1 13.4 Gas Buy 255 270 6 6.2 16.2 9.5 46.9 159.3 -41.5 15.8 27.0 5.7 4.9 42.3 19.6 Gujarat St. Pet. Buy 232 285 23 14.1 20.2 20.0 18.9 43.5 -0.9 11.5 11.6 1.9 1.7 18.2 15.5 HPCL Buy 270 364 35 43.9 31.9 46.5 -7.3 -27.4 46.0 8.5 5.8 1.2 1.1 15.3 20.2 IOC Buy 127 194 53 18.8 10.7 19.3 -23.7 -43.3 80.7 11.9 6.6 1.0 0.9 8.5 14.5 IGL Neutral 422 405 -4 11.2 16.1 16.0 19.1 42.9 -0.2 26.2 26.3 5.9 5.0 24.6 20.6 Neutral 1065 1000 -6 55.3 75.4 65.2 14.3 36.3 -13.5 14.1 16.3 3.7 3.3 28.5 21.5 MRPL Neutral 44 49 12 1.9 -6.8 6.1 -84.8 PL LP NM 7.2 0.8 0.7 -11.7 10.8 Buy 153 194 27 32.0 28.2 30.1 35.6 -12.0 7.0 5.4 5.1 0.6 0.6 11.1 11.2 ONGC Buy 128 156 22 27.1 27.3 30.1 34.4 0.7 10.1 4.7 4.3 0.7 0.6 15.3 15.3 PLNG Buy 269 350 30 14.4 20.2 21.4 3.7 40.6 6.2 13.3 12.5 3.7 3.4 28.8 28.1 Reliance Ind. Buy 1535 1836 20 67.2 82.6 117.7 10.4 22.9 42.5 18.6 13.0 2.1 1.8 12.0 15.1 Aggregate 6.0 -2.2 34.8 13.1 9.7 1.6 1.4 12.2 14.7 Retail Avenue Sell 1823 1600 -12 14.5 21.7 28.9 11.9 50.3 33.0 83.9 63.0 16.4 13.0 21.6 23.0 Supermarts Aditya Birla Buy 241 250 4 1.6 2.5 4.8 156.7 49.7 96.5 97.6 49.7 11.4 9.3 12.5 20.7 Fashion Future Lifestyle Buy 399 490 23 8.6 8.4 11.7 30.1 -2.8 40.3 47.7 34.0 3.4 3.1 7.8 9.5 Future Retail Buy 332 450 36 14.6 15.3 17.1 19.1 4.5 12.2 21.7 19.4 2.5 2.2 14.6 12.2 Jubilant Food. Buy 1682 1720 2 24.1 27.6 35.6 62.0 14.6 29.1 60.9 47.2 15.0 12.5 24.6 26.4 Shoppers Stop Neutral 372 414 11 7.8 10.0 11.1 -36.3 27.8 11.4 37.4 33.5 3.1 2.8 8.7 8.9 Titan Company Neutral 1155 1275 10 15.7 17.2 22.3 24.0 9.5 30.0 67.4 51.8 16.9 14.3 25.1 30.0 Buy 541 605 12 2.9 4.6 8.0 11.6 56.9 74.1 118.1 67.8 6.5 6.0 6.9 9.2 V-Mart Retail Neutral 1664 1880 13 39.5 45.7 58.7 -8.0 15.7 28.4 36.4 28.4 6.1 5.0 18.3 19.5 Aggregate 21.6 20.9 32.0 65.3 49.4 10.4 8.9 16.0 18.0 Technology Cyient Buy 442 600 36 43.4 39.6 49.4 13.4 -8.6 24.7 11.2 9.0 1.8 1.6 15.7 17.8 HCL Tech. Buy 573 700 22 36.8 38.3 44.6 17.6 4.1 16.4 14.9 12.8 3.2 2.8 22.9 23.4 Hexaware Neutral 337 400 19 19.3 21.3 24.9 16.5 10.1 17.1 15.8 13.5 3.6 3.0 24.7 24.5 Infosys Buy 735 880 20 35.4 38.0 44.0 9.3 7.3 15.8 19.3 16.7 4.8 4.4 24.8 27.3 L & T Infotech Buy 1822 2030 11 86.6 85.7 97.4 30.6 -1.1 13.8 21.3 18.7 5.3 4.3 27.4 25.5 Neutral 813 750 -8 44.7 38.8 46.6 55.5 -13.3 20.3 21.0 17.4 4.3 3.8 20.9 23.1 Buy 894 1100 23 56.1 61.8 70.5 27.4 10.1 14.2 14.5 12.7 3.2 2.7 22.9 24.6 NIIT Tech Neutral 1580 1550 -2 66.2 73.9 90.1 45.3 11.6 22.0 21.4 17.5 4.1 3.6 20.4 21.7 Persistent Sys Buy 714 790 11 44.0 48.7 60.9 8.9 10.7 25.0 14.7 11.7 2.3 2.0 15.9 18.4 TCS Neutral 2157 2000 -7 83.5 86.2 96.4 26.4 3.3 11.8 25.0 22.4 7.6 7.3 32.7 33.4 Tech Mah Buy 766 910 19 48.2 48.0 57.6 12.8 -0.3 20.0 15.9 13.3 3.2 2.9 20.6 23.0 Wipro Neutral 248 260 5 14.8 16.4 17.2 10.1 10.9 5.0 15.1 14.4 3.0 2.8 18.3 20.2 Zensar Tech Buy 181 280 55 14.4 14.7 17.9 40.4 2.6 21.4 12.3 10.1 1.9 1.6 16.1 17.2 Aggregate 14.7 1.2 12.7 21.3 18.9 5.2 4.9 24.6 25.8 Telecom Bharti Airtel Buy 455 425 -7 -8.7 -4.5 -6.0 PL Loss Loss NM NM 3.3 3.4 -3.2 -4.4 Neutral 254 280 10 13.6 18.4 17.7 -0.3 35.5 -3.8 13.8 14.3 3.2 3.2 23.3 22.2 Idea Buy 6 7 15 -18.5 -1.2 -6.8 Loss Loss Loss NM NM 0.5 1.1 -7.2 -74.7 Tata Comm Neutral 405 420 4 -2.2 10.9 23.4 PL LP 114.4 37.0 17.3 111.3 14.9 -798 152.6 Aggregate Loss Loss Loss -155 -16.7 2.6 3.1 -1.6 -18.7 Utiltites Buy 211 278 32 28.3 25.7 28.5 47.9 -9.5 11.2 8.2 7.4 4.8 4.2 58.4 56.8

3 January 2020 22

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CMP TP % Upside EPS (INR) EPS Gr. YoY (%) P/E (x) P/B (x) ROE (%) Company Reco (INR) (INR) Downside FY19 FY20E FY21E FY19 FY20E FY21E FY20E FY21E FY20E FY21E FY20E FY21E CESC Buy 754 957 27 88.9 91.9 99.5 43.1 3.4 8.2 8.2 7.6 1.0 0.9 13.0 12.8 JSW Energy Neutral 70 76 9 4.2 4.5 5.6 40.2 6.4 24.3 15.4 12.4 0.9 0.9 6.2 7.4 NHPC Neutral 24 25 4 2.6 3.0 3.0 5.9 17.1 -0.7 7.9 8.0 0.7 0.7 9.6 9.1 NTPC Buy 121 164 35 11.6 13.1 15.2 30.3 13.2 15.9 9.3 8.0 1.0 1.0 11.4 12.4 Power Grid Buy 195 244 25 19.2 20.3 22.8 16.0 5.9 12.2 9.6 8.6 1.6 1.4 17.0 17.2 Buy 288 357 24 18.7 30.0 29.8 -4.6 60.4 -0.6 9.6 9.7 1.4 1.2 15.1 13.4 Neutral 58 66 14 2.1 4.1 4.7 -60.5 95.5 14.5 14.1 12.3 0.9 0.9 6.5 7.2 Aggregate 30.9 2.3 12.1 9.0 8.0 1.5 1.4 16.8 17.3 Others Brigade Enterpr. Buy 220 245 11 11.7 8.2 8.4 63.2 -30.4 2.3 26.9 26.3 1.9 1.8 7.5 7.2 BSE Buy 523 750 44 38.1 26.0 30.5 -12.4 -31.6 17.2 20.1 17.1 1.1 1.2 5.7 6.9 Coromandel Intl Buy 533 600 13 25.2 31.5 37.3 6.5 25.1 18.6 16.9 14.3 3.9 3.2 24.9 24.5 Delta Corp Buy 201 254 26 7.2 8.6 10.2 23.8 20.5 17.9 23.3 19.8 2.5 2.2 11.4 12.0 Indian Hotels Buy 147 172 17 2.4 3.2 4.5 257.4 33.8 41.7 46.4 32.8 3.8 3.4 8.3 11.0 Interglobe Neutral 1333 1535 15 4.1 53.7 90.3 -93.0 1,224 68 25 14.8 7.0 6.5 29.0 45.8 Neutral 2532 2200 -13 23.0 23.6 37.2 54.2 2.7 57.6 107.4 68.1 12.2 10.7 15.4 16.9 Gateway Distr. Buy 122 127 4 9.8 9.6 5.8 121.8 -1.9 -39.4 12.7 20.9 1.0 0.9 7.7 4.5 Buy 520 584 12 12.5 13.6 20.1 10.9 8.4 48.1 38.3 25.8 5.5 4.8 15.1 20.0 Kaveri Seed Buy 501 607 21 34.4 35.5 37.9 7.7 3.0 6.9 14.1 13.2 2.9 2.8 21.5 21.6 Lemon Tree Hotel Buy 63 72 14 0.7 0.5 1.8 271.9 -32.4 283.1 138.2 36.1 3.7 3.4 3.2 9.8 MCX Buy 1189 1250 5 28.7 44.7 47.0 35.2 55.9 5.1 26.6 25.3 4.4 4.1 17.4 16.8 Navneet Buy 94 154 64 6.7 9.3 11.0 22.5 39.5 18.3 10.1 8.5 2.2 1.8 24.3 23.6 Education Buy 529 630 19 22.5 24.3 25.7 78.1 8.4 5.4 21.7 20.6 2.2 2.0 10.5 10.1 Phoenix Mills Buy 839 850 1 25.0 23.2 29.0 57.8 -7.2 25.3 36.2 28.9 3.4 3.1 9.8 11.2 Quess Corp Neutral 504 540 7 17.5 22.7 34.7 -19.8 29.8 52.7 22.2 14.5 1.9 1.6 11.5 15.4 PI Inds. Buy 1440 1633 13 29.7 37.6 54.4 11.6 26.3 44.9 38.3 26.5 7.4 6.0 20.8 24.9 SRF Buy 3465 3460 0 113.7 137.7 184.8 60.0 21.1 34.1 25.2 18.8 4.1 3.5 17.8 20.0 S H Kelkar Buy 120 154 28 6.1 6.9 9.6 -13.4 13.3 39.0 17.4 12.5 1.9 1.8 11.3 14.8 Buy 672 811 21 42.9 44.2 54.7 -10.8 3.1 23.6 15.2 12.3 1.3 1.2 8.9 10.3 Team Lease Serv. Buy 2510 3330 33 57.2 51.7 83.7 32.9 -9.6 61.9 48.5 30.0 6.8 5.6 15.2 20.5 Trident Buy 7 8 13 0.8 1.0 1.1 71.2 20.9 7.4 6.7 6.2 1.0 1.0 16.2 16.0 UPL Neutral 596 553 -7 27.3 34.8 42.6 -5.7 27.3 22.5 17.1 14.0 2.9 2.5 17.5 19.2

3 January 2020 23

MOSL Universe stock performance

Company 1 Day (%) 1M (%) 12M (%) Company 1 Day (%) 1M (%) 12M (%) Automobiles BHEL 4.4 -11.3 -37.7 Amara Raja Batt. 1.0 -3.2 -0.7 Blue Star -1.8 2.1 30.3 Ashok Leyland 3.6 5.5 -16.1 CG Cons. Elec. -0.7 -4.4 3.9 Bajaj Auto -0.9 -1.3 16.0 Cummins 3.1 5.6 -32.6 Bharat Forge 1.2 5.2 -0.8 Engineers India 0.5 -4.5 -20.7 Bosch 0.8 -2.9 -20.9 GE T&D 3.7 -2.1 -46.8 CEAT 3.8 11.2 -19.9 Havells 0.7 -2.5 -5.3 Eicher Motors -2.1 -0.5 2.1 K E C Intl 1.9 11.4 3.8 Endurance Tech. -1.2 -2.4 -13.7 L&T 2.7 0.9 -5.7 Escorts 2.0 -6.6 -12.5 Siemens 1.5 2.1 43.3 Exide Inds. 1.7 -2.3 -27.6 Solar Ind 3.9 4.5 4.2 Hero Motocorp -0.1 1.0 -20.2 Thermax -1.4 9.2 -3.8 M & M 0.6 1.1 -27.2 Va Tech Wab. 7.2 9.4 -25.6 Mahindra CIE 3.0 15.2 -31.8 Voltas 0.9 -5.1 22.5 Maruti Suzuki 0.3 2.7 0.8 Cement Motherson Sumi 3.0 12.7 -8.5 Ambuja Cem. 4.3 -2.0 -6.3 Tata Motors 5.1 20.4 15.0 ACC 3.7 -2.4 0.7 TVS Motor Co. -2.1 -1.9 -14.2 Birla Corp. 3.9 -3.1 7.0 Banks - Private Dalmia Bhar. 2.0 -5.9 -23.5 AU Small Fin. Bank -0.3 -4.4 28.5 Grasim Inds. 3.2 -5.1 -6.1 Axis Bank 1.1 1.8 22.4 India Cem 5.4 -1.9 -17.7 DCB Bank 4.0 3.2 8.5 J K Cements 3.4 5.3 68.5 Equitas Holdings 1.3 3.0 -12.7 JK Lakshmi Ce 5.3 5.2 -2.9 Federal Bank 3.9 5.6 -2.8 Ramco Cem 2.3 -3.3 20.8 HDFC Bank 0.6 1.7 21.0 Orient Cem 6.6 1.2 -7.0 ICICI Bank 0.7 5.8 48.4 Prism Johnson 6.0 -0.5 -23.5 IndusInd Bank 3.0 -3.0 -3.1 Sanghi Inds. 6.2 5.5 -34.2 Kotak Mah. Bank -0.2 2.4 34.7 Shree Cem 4.4 1.5 25.3 RBL Bank 6.3 -1.0 -34.8 Ultratech 4.4 -0.8 6.1 South Ind.Bank 0.8 -6.0 -33.2 Consumer Banks - PSU Asian Paints -0.2 3.0 29.6 BOB 2.5 0.0 -12.6 Britannia 0.4 -0.5 -2.0 BOI 1.4 -4.9 -32.0 Colgate -0.1 0.6 12.0 Canara 3.3 1.0 -16.9 Dabur 0.0 1.3 10.6 Indian Bk 1.5 -18.5 -58.1 Emami -0.2 -1.2 -26.1 PNB 3.1 1.4 -14.3 Godrej Cons. -1.1 -6.1 -15.3 SBI 1.5 0.2 15.5 GSK Cons. 0.3 -5.6 11.8 Union Bk 1.1 -11.7 -37.6 HUL 0.1 -5.2 8.6 NBFCs ITC 0.7 -2.1 -14.5 Aditya Birla Cap 4.9 -0.6 7.1 Jyothy Lab 2.0 -12.5 -26.1 Bajaj Fin. 0.4 7.6 62.4 Marico -2.5 -4.8 -9.6 Cholaman.Inv.&Fn 2.1 0.5 25.4 Nestle -0.4 1.2 33.4 HDFC 1.3 6.9 24.6 Page Inds -0.1 6.3 -4.4 HDFC Life Insur. 2.1 11.3 62.3 Parag Milk 1.1 -3.9 -42.2 Indostar Capital 2.8 1.3 -43.1 Pidilite Ind. -0.5 5.9 26.3 L&T Fin.Holdings 2.4 0.8 -19.6 P&G Hygiene -0.8 0.0 14.7 LIC Hsg Fin 5.7 -2.5 -4.1 Tata Global -0.2 2.1 50.6 M&M Fin. 2.2 -1.6 -27.1 United Brew 0.5 2.6 -5.5 Muthoot Fin 0.9 13.4 52.7 United Spirits -0.5 -1.7 -4.1 MAS Financial Serv. 0.0 20.3 51.1 Healthcare ICICI Pru Life 1.2 -2.3 52.3 Alembic Phar 1.9 1.1 -3.4 PNB Housing 10.8 -3.7 -46.3 Alkem Lab -0.4 2.5 6.7 Repco Home 2.7 10.7 -15.6 Ajanta Pharma 0.1 -1.1 -15.7 Shriram City Union 0.6 2.4 -12.7 Aurobindo 0.8 2.6 -36.0 Shriram Trans. 1.5 5.7 -3.1 Biocon 0.6 3.6 -4.9 Capital Goods Cadila 0.5 -0.8 -26.1 ABB 0.6 -2.8 9.3 Cipla -0.5 2.0 -8.1 Bharat Elec. 3.0 0.0 15.1 Divis Lab 0.3 2.2 24.1

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MOSL Universe stock performance

Company 1 Day (%) 1M (%) 12M (%) Company 1 Day (%) 1M (%) 12M (%) Dr Reddy’s -0.5 -0.2 10.1 Future Retail -3.0 -2.9 -29.3 Glenmark 2.4 6.6 -48.1 Jubilant Food 1.1 5.5 35.7 Granules 0.2 -1.3 36.1 Shoppers St. 0.4 6.0 -29.0 GSK Pharma -0.5 -2.7 8.8 Titan Co. 0.1 0.2 24.0 IPCA Labs 0.3 1.0 42.3 Trent 2.1 3.1 53.3 Jubilant Life 0.5 5.1 -24.4 V-Mart Retail 0.3 -3.3 -35.3 Laurus Labs 0.9 9.0 -1.8 Technology Lupin 0.5 -2.6 -6.9 Cyient 2.1 10.0 -28.6 Strides Pharma 4.1 -2.3 -18.0 HCL Tech. 0.3 1.8 21.3 Sun Pharma 0.3 -1.1 -1.1 Hexaware 0.3 0.4 1.8 Torrent Pharma 1.0 -1.4 5.3 Infosys -0.3 6.0 9.8 Infrastructure L&T Infotech 2.3 11.0 5.5 Ashoka Buildcon 5.9 15.3 -11.5 Mindtree 0.2 15.3 -5.3 IRB Infra.Devl. 1.9 0.8 -52.9 Mphasis -3.2 2.6 -9.6 KNR Construct. 4.2 15.9 23.8 NIIT Tech 0.1 8.1 37.1 Sadbhav Engg. 7.9 -4.3 -40.6 Persistent Sys 1.2 4.7 14.3 Logistics TCS -0.6 6.8 12.2 Allcargo Logist. 6.8 12.3 -4.3 Tech Mah 0.5 2.4 7.6 Concor -0.2 -0.1 6.7 Wipro 0.2 4.0 1.8 Gateway Distr. 5.4 -1.9 -17.7 Zensar Tech 3.1 -2.6 -21.9 Media Telecom D B Corp 0.9 -3.4 -20.5 Bharti Airtel 0.4 -0.8 58.4 Ent.Network 3.7 9.9 -56.4 Bharti Infra. -0.4 -4.2 -3.6 Jagran Prak. -0.2 5.8 -45.9 0.0 -21.6 -72.5 Music Broadcast 1.4 -0.9 -54.6 Tata Comm 1.6 -3.3 27.5 PVR -1.1 3.8 18.3 Utiltites Sun TV -1.3 -7.8 -28.2 Coal India -0.4 2.5 -10.9 Zee Ent. 0.5 -1.0 -38.2 CESC 1.0 1.2 13.1 Metals JSW Energy 0.7 -8.8 -1.1 Hindalco 2.8 9.7 2.7 NHPC Ltd 0.2 0.4 -6.4 Hind. Zinc 2.0 0.3 -21.7 NTPC -0.1 5.2 -0.7 JSPL 4.3 8.8 9.7 Power Grid -0.1 2.0 -0.1 JSW Steel 3.1 3.0 -4.2 Tata Power 0.6 3.0 -22.5 Nalco 6.2 6.0 -28.4 Torrent Power 0.9 3.9 12.6 NMDC 2.2 24.4 35.4 Others SAIL 10.1 19.8 -12.7 Brigade Enterpr. 2.5 9.3 53.3 Vedanta 3.2 10.2 -17.4 BSE 4.3 4.4 -12.7 Tata Steel 3.7 15.2 -1.8 Coromandel Intl 0.8 11.0 18.9 Oil & Gas Delta Corp 3.3 -8.7 -18.8 Aegis Logistics 1.4 1.7 -2.4 Godrej Agrovet -0.3 6.4 4.1 BPCL -0.8 -2.5 36.0 Indian Hotels 1.7 -1.5 1.5 Castrol India 0.9 -5.9 -11.6 Interglobe -0.1 -8.2 14.7 GAIL 2.0 -2.5 -29.8 Info Edge -1.2 0.8 76.4 0.1 17.8 91.1 Kaveri Seed 0.1 2.9 -11.8 Gujarat St. Pet. 5.6 7.2 31.5 Lemon Tree Hotel -0.1 3.6 -11.3 HPCL 1.6 -4.3 5.2 MCX 0.6 3.2 64.0 IOC 0.9 -1.2 -7.4 Navneet Educat. 1.3 -4.5 -12.7 IGL -0.9 1.4 53.6 Oberoi Realty 1.1 3.0 17.4 Mahanagar Gas 0.0 2.9 18.2 Phoenix Mills -0.7 11.4 46.0 MRPL 0.2 -7.1 -40.9 PI Inds. -0.6 -4.4 67.5 Oil India 0.6 -0.8 -11.5 Quess Corp 4.1 -3.0 -29.1 ONGC 0.5 -0.1 -13.3 SRF 0.8 7.1 73.9 PLNG 0.8 -3.3 17.9 S H Kelkar 8.2 8.5 -30.3 Reliance Ind. 1.7 -3.2 38.8 Tata Chemicals 0.1 0.8 -4.1 Retail Team Lease Serv. 1.1 2.3 -12.6 Aditya Bir. Fas. 2.9 6.0 22.9 Trident 0.6 -5.3 0.1 Avenue Super. -0.2 -1.2 16.6 UPL 1.3 4.4 18.3 Future Lifestyle -1.5 -2.5 0.4

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N O T E S

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THEMATIC/STRATEGY RESEARCH GALLERY

REPORT GALLERY RECENT INITIATING COVERAGE REPORTS

DIFFERENTIATED PRODUCT GALLERY

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. 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, Investment Advisory Services, Depository participant services & distribution of various financial products. MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOFSL) 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 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/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

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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. 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. Compensation of Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. 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. 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.

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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. 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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, -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: [email protected], Contact No.:022-71881085.

* MOFSL 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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