End of the Week Update

August 22, 2020 Contents

Page Section Title number 1 Our Views 3 2 Market Update 5 3 Sectoral Update 3.1 Financial Services 7 3.2 Technology, Telecom and Media 9 3.3 Pharma 11 3.4 Healthcare 12 3.5 Auto & Auto Components 13 3.6 Metals & Mining 14 3.7 Aviation 15 3.8 Power and Infrastructure 16 3.9 Consumer and Retail 18 3.10 Real Estate 20 NovaDhruva Team 21

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2 Our Views Digital Health Card – A comprehensive solution for healthcare

Imagine what a relief it would be if we do not have to wait in the corridors outside a doctor’s clinic for a minor ailment. If we do not need to worry about visiting hospitals for follow up consultations and wait in the Out- patient Division (OPDs) which are a hotbed of infections from other patients. And if we did not have to wait there from the time a junior doctor takes down the case history till the senior consultant meets for a final guidance. And to not go through this rigmarole again and again to discuss our reports with the doctors, in case any further investigations are to be done or to be repeated. The National Digital Health Mission (NDHM) announced by the Prime Minister on Independence Day has the potential to make a deep impact on the way healthcare is administered in the country. Equipped with a unique Health ID, every Indian will have a unified repository of his or her health history, past illnesses, doctor consultations, investigation’s reports, diagnosis, and medicines consumed. The unique health ID card, created with details like Aadhar and mobile number, would store all data which will be managed centrally. This portable information can be easily accessed by a patient while consulting any doctor or hospital anywhere in the country. This mission reminds me of the time when our banks underwent computerization - at that time, no one could have imagined the power of automation which facilitated anywhere-anytime banking without the need to visit a bank. The proposed healthcare initiative, when implemented in entirety, will have a similar profound metamorphic impact on the healthcare system and economy of the country. I say this because, adoption of connected data systems in various countries has resulted in efficient healthcare systems, across stakeholders. Benefits include 10% reduction in primary care visits in the USA, reduced recurrent and unnecessary hospitalization in Hongkong, and reduced deaths of AMI and stroke patients in Finland. For the service providers, it has increased productivity at a lower cost due to the reduced patient burden. The six main building blocks of the NDHM, which include health ID, digi-doctor, telemedicine, ePharmacy, healthcare registry and personal health records, will transform the health and lives of Indians. Today, the entire approach towards healthcare in India is disintegrated with presence of multiple service providers. A holistic implementation which integrates doctors, hospitals, pharmacies, diagnostic centers, and insurance companies can do wonders. Some of the advantages I foresee are: 1. Virtues of health data repository Systematic record keeping and transparency in medical history will enable access to any doctor anywhere online unless a physical examination is required. It would bridge the gap between rural and urban health infrastructure as the need to physically travel to a city hospital will significantly reduce. And at this point, I cannot help but think of the travel i made during my childhood from my village to the nearest city, even for diagnostic services. Further, the policy makers will have a better understanding of the health situation of the nation and can plan accordingly. Policy intervention will become extremely efficient for preventive healthcare schemes based the data information. For example, in the current Pandemic, such a data repository could have helped manage comorbidity cases better. Finally, with an overlay of Artificial intelligence and data sciences on top of this data, we could explore newer horizons in medical research, healthcare innovation and predictive healthcare. 2. An efficient insurance system Basis an authentic and updated health data bank, an insurance cover can be priced efficiently, claims can be processed faster and insurance coverage which is quite restrictive at present can be expanded meaningfully. An early understanding of health conditions and linked insurance pricing will induce people to adopt preventive measures which will help reduce sickness in general.

3 Our Views Digital Health Card – A comprehensive solution for healthcare

3. Linkages to tele-medicine and tele-consultation The potential of developing newer business models and related conveniences could be immense. Hospitals will be able to track patients through their records and can provide proactive services. They could have a tie- up with hospitals and doctors in other cities to provide online consulting or could even have membership scheme to receive priority service across the country in case of an emergency. Pharmacy stores can expand their services to tele-consultation with doctors and collection centers for diagnostic services with ease of neighborhood access. The patient’s comfort to consult anytime by sharing health data in an emergency would be invaluable. 4. Economic Impact A healthy nation is always more efficient. NDHM will revolutionize the healthcare and the insurance industry. An equitable health facility at affordable prices can be provided to rural India which is the backbone of our economy. The cost of healthcare for an individual is also likely to fall due to transparency, prevention, avoidance of duplication, timesaving, timely intervention and availability of insurance. This Mission would certainly reduce the burden on overloaded health infrastructure of the country and make it more efficient. In summary, like bank computerization in 2000s, and now the faceless income tax assessment, NDHM has the potential to provide a creative and path-breaking solution to an extremely critical issue. Of course, confidentiality, privacy and security of this data base will remain the key concern of any individual, which I am sure the government will preemptively take care of based on its learnings while implementing Aadhar.

4 Market Update Key Market Trends

Global and Indian Indices Performance st Rebased to 100 Last 1 Year Rebased to 100 Since 1 March 160 2,000 140 2,000

140 1,500 120 1,500 120 1,000 100 1,000 100 500 80 500 80

60 0 60 0 The Indian indices 21-Aug 02-Nov 14-Jan 27-Mar 08-Jun 21-Aug 02-Mar 05-Apr 09-May 13-Jun 17-Jul 21-Aug gained by 1.5-1.7% NIFTY Volume this week despite an Nifty Sensex Dow Jones NASDAQ FTSE Nikkei Hang Seng (RHS) -Mn increase in the Current Since Return (%) 1D 1W 1M 3M st 6M 1Y number of COVID Level 1 March cases and resulting Nifty 11,372 0.5% 1.7% 1.9% 24.9% 2.1% (5.9%) 4.1% localized lockdowns Sensex 38,435 0.6% 1.5% 1.3% 24.3% 0.8% (6.6%) 3.7% Dow Jones 27,930 0.7% (0.0%) 4.1% 14.1% 4.6% (3.7%) 6.6% Nasdaq 11,555 0.7% 3.5% 6.7% 23.2% 30.2% 22.3% 49.4% FTSE 6,002 (0.2%) (1.4%) (4.3%) (0.2%) (9.8%) (18.9%) (16.7%) Nikkei 22,920 0.2% (1.6%) 0.2% 11.5% 7.4% (2.0%) 11.2% Hang Seng 25,114 1.3% (0.3%) (2.0%) 3.4% (4.5%) (8.0%) (4.4%) Indian Sectoral Performance Among the sectoral indices, Nifty Media, Current Since Return (%) 1D 1W 1M 3M st 6M 1Y Realty, and Metal Level 1 March were the best Nifty Bank 22,300 1.4% 2.9% (2.1%) 29.1% (22.8%) (27.9%) (19.6%) performers Nifty Financial Services 11,026 1.2% 2.5% (2.6%) 27.4% (18.4%) (24.0%) (10.8%) Nifty FMCG 31,604 0.5% 1.2% 1.0% 13.7% 8.5% 3.2% 11.3% Nifty Pharma 11,615 0.6% (0.2%) 14.4% 21.0% 54.1% 38.9% 51.3% Nifty IT 18,065 (0.3%) 0.2% 4.6% 30.5% 17.1% 8.5% 16.0% Nifty Auto 7,935 0.3% 3.3% 8.8% 37.6% 15.7% 3.1% 13.3% Nifty Media 1,576 (1.4%) 12.6% 15.8% 38.2% (1.2%) (15.8%) (14.3%) Nifty Metal 2,524 (0.6%) 4.9% 19.1% 47.5% 14.8% (3.4%) 10.5% Nifty PSU Bank 1,484 1.8% 4.1% 0.8% 36.1% (20.1%) (31.6%) (39.4%) Nifty Private Bank 12,186 1.3% 3.0% (2.4%) 29.3% (23.2%) (27.9%) (21.3%) Nifty Realty 224 1.2% 8.2% 11.4% 37.0% (19.9%) (26.8%) (13.3%) BSE Telecom 1,232 (0.8%) (0.7%) (5.4%) (6.0%) 5.3% (0.8%) 32.8% BSE Healthcare 19,228 0.7% 0.6% 13.7% 23.9% 43.3% 32.3% 55.0% Valuations for all the sectoral indices NTM PE Ratio – Last 1 Year except Pharma, and Mar 11: Mar 24 Apr 14 May 01 May 18 IT rose this week WHO declared Lock- Lock- Lock- Lock- COVID-19 as down down down down 34.4x, FMCG a pandemic 1.0 2.0 3.0 4.0 30.1x, Auto 40.0x 27.0x, Pharma 26.4x, Realty 25.8x, Healthcare 30.0x 21.6x, IT 21.4x, Sensex 21.1x, Media 20.9x, Nifty 20.0x 18.4x, Fin. Services 13.7x, Bank 10.0x 13.0x, Metals

0.0x 21-Aug 02-Nov 14-Jan 27-Mar 08-Jun 21-Aug

Source: Bloomberg as of August 21, 2020

5 Market Update Key Market Trends rketTradingTrends Activity by FII/DIIs in Capital Market Segment (USD mn) FPIs/FIIs were net Last 1 Week Weekly Total 21-Aug-20 20-Aug-20 19-Aug-20 18-Aug-20 17-Aug-20 buyers whereas DIIs FII/FPI 276.6 54.8 (35.8) 61.3 151.8 44.5 were net sellers this DII (282.6) (33.5) (89.6) (13.0) (50.7) (95.8) week Total (6.1) 21.3 (125.4) 48.4 101.0 (51.4)

FIIs were net sellers Trading Activity by FIIs in Debt Segment (USD mn) in the debt segment Last 1 Week Weekly Total 21-Aug-20 20-Aug-20 19-Aug-20 18-Aug-20 17-Aug-20 FII/FPI (197.4) (148.8) 95.9 (22.5) (38.9) (83.1) Liquidity Position (USD mn) Last 1 Week 20-Aug-20 19-Aug-20 18-Aug-20 17-Aug-20 14-Aug-20 13-Aug-20 Net Liquidity (50,048) (42,425) (43,863) (43,435) (43,747) 43,803 Absorption through RBI Reverse Repo (86,381) (78,860) (80,327) (79,838) (80,141) 80,226 1 MIBOR (%) 3.74% 3.68% 3.79% 3.82% 3.80% 3.80% 2 MIFOR 1M 3.78% 3.71% 3.71% 3.72% 3.63% 3.64% 2 MIFOR 3M 4.10% 4.06% 4.04% 3.97% 4.01% 3.93% 2 MIFOR 6M 4.21% 4.26% 4.21% 4.18% 4.16% 4.08% 2 MIFOR 12M 4.53% 4.57% 4.53% 4.48% 4.48% 4.43% An upward India Government and Corporate Bond Yields (%) movement in bond yields witnessed this Since Yield (%) Current 1D 1W 1M 3M st 6M 1Y week 1 March 1YR AAA Rated Corp. Bond 4.62% 4.62% 4.17% 4.26% 5.79% 6.08% 6.09% 6.95% 1YR G-Sec 3.75% 3.61% 3.61% 3.61% 3.89% 5.27% 5.43% 5.65% 3YR AAA Rated Corp. Bond 5.11% 5.11% 5.09% 5.01% 6.15% 6.48% 6.44% 7.16% 3YR G-Sec 4.93% 4.80% 4.78% 4.69% 4.67% 5.63% 5.78% 6.10% 5YR AAA Rated Corp. Bond 5.68% 5.68% 5.76% 5.61% 6.38% 6.77% 6.78% 7.38% 5YR G-Sec 5.40% 5.22% 5.15% 4.94% 5.43% 6.16% 6.21% 6.28% 10YR AAA Rated Corp. Bond 6.71% 6.71% 6.66% 6.54% 7.24% 7.29% 7.42% 7.72% 10YR G-Sec 6.09% 5.95% 5.87% 5.83% 5.75% 6.34% 6.39% 6.56% Currency Market Snapshot Since % Change in FX Current FX Rate 1D 1W 1M 3M st 6M 1Y 1 March USD-INR 74.85 0.2% 0.1% (0.1%) 1.5% (2.8%) (4.3%) (4.4%) EUR-INR 88.45 0.2% (0.0%) (3.4%) (6.3%) (8.8%) (12.6%) (10.2%) GBP-INR 98.78 (0.7%) (0.9%) (4.0%) (6.4%) (6.1%) (6.7%) (12.1%) JPY-INR 0.71 0.1% (0.8%) (1.4%) (0.4%) (5.5%) (9.8%) (5.3%) SGD-INR 54.70 0.1% (0.3%) (1.7%) (2.5%) (4.4%) (6.5%) (5.4%) CNY-INR 10.81 0.4% (0.3%) (1.0%) (1.5%) (3.3%) (5.6%) (6.3%) Oil prices lost due to concerns over Commodity Market Snapshot economic recovery Since % Change Current 1D 1W 1M 3M st 6M 1Y 1 March 42.23 (2.0%) (0.7%) 0.4% 22.4% (10.7%) (20.4%) (19.6%) Oil WTI Crude (USD/barrel) ICE Brent Crude (USD/barrel) 44.33 (1.3%) (1.0%) (0.5%) 21.0% (14.3%) (22.4%) (22.9%) Gold Spot Gold (USD/ounce) 1,920.01 (1.4%) (1.3%) 4.2% 10.7% 20.8% 16.8% 27.8% India InvITs and REIT Performance Current Since % Change 1D 1W 1M 3M st 6M 1Y Price 1 March InvITs Indigrid 100.81 (0.0%) (0.2%) (1.2%) (0.1%) 1.1% 1.1% 14.6% IRBInvIt 39.42 2.7% 1.1% (7.0%) 17.0% (14.1%) (9.8%) (39.5%) REIT Embassy Office Parks 364.39 (0.9%) (0.9%) 4.7% 7.7% (20.8%) (19.6%) (3.5%) Source: Bloomberg of August 21, 2020; 1Financial Benchmarks India Overnight Mumbai Interbank Outright Rate; 2Mumbai Interbank Forward Offer Rate

6 Sectoral Update – Financial Services India Financial Services Update

1 Month Share Price Performance India – Bank Stocks India – NBFC Stocks

HDFC Bank (3.6%) HDFC (4.1%) KMB (0.2%) 4.2% ICICI Bank (2.6%) Shriram Transport (1.2%) (8.0%) L&T Finance 8.6% (19.4%) Mahindra Finance (13.4%) Indusind 0.0% Shriram City Union 41.2%

Trading Comparables¹ Share Weekly Market P/BV P/E ROE Price change in Cap (INR) price (%) USD mn FY21 FY22 FY21 FY22 FY21 FY22 Banks HDFC Bank 1,086 4.9% 79,603 3.1x 2.7x 21.2x 17.5x 15.3% 16.6% 1,339 2.4% 35,342 3.3x 3.1x 35.0x 26.6x 10.4% 11.7% ICICI Bank 371 2.7% 34,123 1.9x 1.7x 17.5x 13.0x 12.3% 14.9% Axis Bank 440 1.1% 17,971 1.4x 1.2x 17.6x 9.5x 8.7% 14.6% Yes Bank 15 3.0% 5,201 1.0x2 NA NA NA NA NA Indusind Bank 514 1.3% 4,749 0.9x 0.8x 7.8x 5.6x 12.0% 14.4% Median 1.9x 1.7x 17.6x 13.0x 12.0% 14.6% NBFCs HDFC 1,804 0.7% 43,099 3.3x 2.9x 18.3x 15.1x 14.0% 15.1% Bajaj Finance 3,389 1.7% 27,230 5.6x 4.8x 44.7x 27.2x 13.0% 18.4% Shriram Transport 687 0.0% 2,316 0.8x 0.7x 9.5x 6.3x 10.4% 13.2% L&T Finance 68 5.5% 1,807 0.9x 0.8x 10.3x 7.1x 8.7% 11.5% Mahindra Finance 133 0.1% 1,755 1.0x 0.9x 17.8x 9.5x 5.3% 10.1% Shriram City Union 982 24.7% 864 0.9x 0.8x 7.1x 7.0x 14.0% 14.4% Median 0.9x 0.9x 14.0x 8.3x 11.7% 13.8%

Commentary ▪ RBL Bank’s Board approved issuance of equity capital to the tune of INR 1,566 Cr. (USD 209 mn) on a Preferential allotment basis at a per share price of INR 177 − Baring PE Asia will subscribe to 64% of the total allotment and would hold 9.5% of RBL Bank post allotment − Other investors to the issue include ICICI Prudential, CDC Group and Gaja Capital ▪ On August 19, the Board of PNB Housing Finance approved raising INR 1,800 Cr. (USD 240 mn) in equity capital through Preferential Issue / Rights Issue − Earlier, on July 31, announced its intention to infuse INR 600 Cr. in (USD 80 mn) PNB Housing Finance as and when PNB Housing Finance decides to raise capital ▪ Under the INR 3 Lac Cr. (USD 40 bn) Emergency Credit Line Guarantee Scheme (ECLGS) of the Aatmanirbhar Bharat Abhiyan package, the banks have disbursed INR 1 Lac Cr. (USD 13 bn) to the MSME sector so far with the sanctioned amount having surged past INR 1.5 Lac Cr. (USD 20 bn) ▪ On August 18, RBI released framework for setting up umbrella entities for operating pan-India retail payments system and invited applications from eligible companies by February 26, 2021

Source: Bloomberg as at 4pm IST, August 21, 2020; ¹ FY ending March; 2 Represents FY20 P/B multiple adjusted for FPO issuance

7 Sectoral Update – Financial Services India – Insurance and Asset Management Update

1 Month Share Price Performance Life Insurance General Life Insurance AMCs

HDFC Life (4.0%) ICICI Lomb. 0.7% HDFC AMC (3.8%)

SBI Life (1.9%)

New India (3.9%) Nippon (5.4%) ICICI Pru (0.7%)

Trading Comparables¹

Weekly P/BV P/EV² RoA RoE Life Share Price change in Market cap Insurance (INR) price (%) USD mn FY21 FY22 FY21 FY22 FY21 FY22 FY21 FY22

HDFC Life 598 1.8% 16,129 15.3x 13.3x 5.0x 4.2x 1.0% 1.0% 18.5% 16.6%

SBI Life 861 2.6% 11,502 8.5x 7.4x 2.8x 2.4x 0.9% 0.7% 13.6% 13.4%

ICICI Pru 447 (2.5%) 8,580 8.1x 7.3x 2.5x 2.3x 0.6% 0.6% 14.7% 13.6%

Weekly P/BV P/E RoA RoE General Share Price change in Market cap Insurance (INR) price (%) USD mn FY21 FY22 FY21 FY22 FY21 FY22 FY21 FY22

ICICI Lomb. 1,291 (1.4%) 7,838 8.0x 6.7x 39.4x 32.5x 3.7% 3.8% 21.9% 22.0%

New India 117 0.9% 2,579 0.7x 0.7x 15.9x 9.6x 1.5% 2.2% 6.4% 8.7%

Weekly P/AUM P/E RoA RoE Share Price change in Market cap AMC (INR) price (%) USD mn FY21 FY22 FY21 FY22 FY21 FY22 FY21 FY22

HDFC AMC 2,400 2.3% 6,821 13.4% 11.7% 39.4x 34.9x 30.2% 30.2% 29.8% 29.2%

Nippon 269 0.0% 2,198 5.4% 4.3% 31.9x 28.2x 19.5% 21.8% 19.3% 21.0%

Commentary ▪ Yes Bank announced sale of its asset management arm to Prashant Khemka-backed GPL Finance and Investments for an undisclosed amount ▪ SEBI imposed a penalty of INR 1 mn each on LIC, SBI and for failing to reduce their stake in UTI Mutual Fund below 10% within the stipulated time ▪ ICICI Lombard and Bharti AXA approved demerger of Bharti AXA’s nonlife insurance business into ICICI Lombard against issue of ICICI Lombard shares valuing Bharti AXA’s nonlife insurance business at c.USD 616 mn (dilution of 7.3% stake for existing shareholders of ICICI Lombard) ¹ Financial year ending March, ² EV refers to Embedded Value; Note: USD 1 = INR 75 Source: Bloomberg as at 4pm IST, August 21, 2020

8 Sectoral Update –Technology, Telecom and Media India Technology Update

1 Month Share Price Performance Large Cap IT Midcap IT and BPO Software and Consumer Internet TCS 3.6% L&T Infotech 4.7% Oracle (0.1%) 22.4% Intellect 20.7% 4.5% L&T Services 14.7% Newgen 6.7% 2.5% 15.0% Infoedge (1.0%) Hexaware 17.6% MakeMyTrip (15.6%) HCL 8.1% 21.4% IndiaMart 32.7% TechM 15.8% FirstSource 34.3% Just Dial 4.1% Trading Comparables¹

Weekly EV/Revenue EV/EBITDA P/E Share Price change in Market cap EV (INR) price (%) USD mn USD mn FY21 FY22 FY21 FY22 FY21 FY22 Large Cap IT TCS 2,249 0.3% 112,734 108,664 5.2x 4.7x 19.4x 17.3x 27.1x 23.7x Infosys 949 (0.5%) 53,996 51,205 4.0x 3.6x 15.6x 14.0x 23.2x 20.5x HCL 706 (0.5%) 25,594 24,643 2.5x 2.3x 10.2x 9.4x 16.6x 15.1x Wipro 273 (1.1%) 20,870 17,154 2.1x 2.0x 10.2x 9.8x 16.6x 15.6x 733 5.3% 9,458 8,841 1.8x 1.6x 11.6x 9.9x 18.4x 15.6x Midcap IT and BPO L&T Infotech 2,368 (3.0%) 5,516 5,272 3.3x 2.9x 16.7x 14.8x 24.6x 21.2x Mphasis 1,199 0.4% 2,989 2,881 2.3x 2.1x 12.3x 11.0x 18.9x 16.4x Mindtree 1,163 2.3% 2,556 2,390 2.3x 2.0x 13.6x 12.1x 23.6x 20.0x L&T Tech Services 1,605 2.5% 2,241 2,185 3.0x 2.7x 16.7x 13.7x 25.7x 20.3x Hexaware 419 6.0% 1,679 1,669 2.0x 1.8x 12.4x 11.1x 19.4x 17.3x Coforge 1,985 0.4% 1,606 1,533 2.5x 2.2x 14.6x 12.5x 25.6x 20.9x Firstsource Solutions 60 14.5% 554 712 1.2x 1.2x 8.4x 7.6x 12.4x 10.7x Software Oracle Financial Services 3,041 0.7% 3,493 2,909 4.3x 4.0x 9.0x 8.4x 15.9x 14.6x Intellect Design 187 (0.3%) 331 352 1.9x 1.7x 10.1x 8.5x 16.4x 13.7x Newgen Software 197 10.0% 184 166 1.7x 1.5x 8.2x 6.9x 12.9x 10.5x Consumer Internet InfoEdge 3,239 (0.2%) 5,565 5,471 30.9x 25.9x nm nm nm nm MakeMyTrip 1,062 (2.1%) 1,465 1,327 5.3x 2.0x nm Nm nm nm IndiaMart 3,235 10.7% 1,251 1,143 12.6x 11.2x 51.8x 40.0x 57.3x 44.6x JustDial 393 1.5% 341 344 3.4x 2.8x 14.1x 10.4x 11.5x 9.9x

Industry Update

▪ NASSCOM said in a report that Artificial Intelligence and data could add USD 450-500 bn to India’s GDP by 2025. Its action plan recommends focusing on 5 key areas- strategy, data, technology stack, talent and execution ▪ Mitron TV, which operates a social video platform, raised USD 5 mn in a Series A funding round led by Nexus Venture Partners ▪ Trell Experiences, which operates a lifestyle community commerce platform, raised USD 11 mn in a Series A funding round led by KTB Network, a South Korean financial services group ▪ Gross merchandise value (GMV) at Flipkart has exceeded pre-Covid-19 levels since it resumed operations 3 months ago, said its American parent Walmart

¹ Financial year ending March; Note: USD 1 = INR 75 Source: Bloomberg as at 4pm IST on August 21, 2020; News run

9 Sectoral Update –Technology, Telecom and Media India Telecom and Media Update

1 Month Share Price Performance Telecom Media and Entertainment

Reliance Industries 1.2% Sun TV 25.7% Zee 20.8% (8.3%) PVR 18.1% Bharti Infratel (0.6%) INOX 25.4% Dish TV 18.3% (1.2%) Network18 (7.7%)

Trading Comparables¹

Weekly EV/Revenue EV/EBITDA P/E Share Price change in Market cap EV (INR) price (%) USD mn USD mn FY21 FY22 FY21 FY22 FY21 FY22

Telecom

Reliance Industries 2,082 (1.5%) 176,334 216,370 3.2x 2.5x 18.2x 13.5x 31.4x 20.4x

Bharti Airtel 520 (1.6%) 37,922 57,413 4.3x 3.8x 9.6x 7.8x nm 36.7x

Bharti Infratel 200 0.1% 4,930 5,007 2.6x 2.5x 5.0x 4.9x 12.0x 11.6x

Vodafone Idea 8.5 (5.0%) 3,263 15,715 2.5x 2.3x 6.4x 5.1x nm nm

Media and Entertainment

Sun TV 475 18.6% 2,499 2,142 4.8x 4.1x 7.4x 6.6x 13.0x 12.0x

Zee Entertainment 192 19.1% 2,465 2,378 2.4x 2.1x 10.1x 7.6x 16.0x 11.6x

PVR 1,310 5.4% 965 1,573 7.6x 3.3x 73.8x 11.1x nm 54.9x

Network18 41 1.5% 570 1,345 na na na na na na

Inox 304 18.1% 417 783 6.1x 2.9x 30.2x 10.8x nm 34.5x

Dish TV 9.1 13.8% 223 329 0.7x 0.7x 1.1x 1.2x 18.5x 20.1x

Industry Update ▪ TRAI has sought views on unbundling of different elements of telecom network such as network, services and application layers through differential licensing, a move that may reduce costs for telcos, lead to more effective utilization of its infrastructure and catalyse investments ▪ In the Adjusted Gross Revenue (AGR) case, Supreme Court directed the DoT secretary to file an affidavit detailing dues that are to be paid by users under spectrum sharing agreement ▪ RIL subsidiary, Reliance Retail Ventures acquired a majority equity stake in Netmeds’ parent Vitalic and its subsidiaries for c.USD 82.7 mn (representing 60% stake in the parent and 100% stake in the subsidiary) ▪ Axiata Group Berhad has sold its residual stake in Vodafone Idea and exited India’s telecom sector, having taken a substantial hit on its investments worth c.USD 2 bn for c.20% stake more than a decade ago ¹ Financial year ending March; Note: USD 1 = INR 75 Source: Bloomberg as at 4pm IST August 21, 2020; News run

10 Sectoral Update – Pharma India Pharmaceuticals Update

1 Month Share Price Performance Large Cap Pharma Mid Cap Pharma MNC Pharma

Sun Pharma 11.5% IPCA Labs 13.9% Abbott India 12.2% Divi’s Labs 42.3% Alembic Pharma 0.4% Dr. Reddy’s 11.3% Syngene Intl. 14.0% GSK Pharma 0.3% 14.9% 25.6% 7.0% 13.7% Pfizer Ltd 10.1% Torrent Pharma 19.6% (7.6%) Glenmark Pharma 18.8% Sanofi India 12.5% Lupin 15.2% Jubilant LS 14.4% Laurus Labs 9.8% 75.6% Novartis India 12.9% Alkem Labs 16.1% Eris LS 27.9% Trading Comparables1 Share Weekly Market EV/Revenue EV/EBITDA P/E EV Price change in cap USD mn (INR) price (%) USD mn FY21 FY22 FY21 FY22 FY21 FY22 Large Cap Pharma 532 0.2% 17,030 17,193 3.7x 3.3x 16.3x 14.2x 26.1x 22.2x Divi’s Labs 3,247 5.1% 11,494 11,354 13.1x 11.0x 35.0x 28.8x 49.7x 40.3x Dr. Reddy’s 4,490 (0.7%) 9,951 9,902 3.9x 3.5x 16.5x 14.3x 28.6x 24.0x Cipla 761 (1.4%) 8,179 8,366 3.4x 3.1x 15.6x 14.1x 28.3x 24.5x Aurobindo Pharma 856 (2.6%) 6,689 7,083 2.1x 1.9x 9.8x 9.0x 15.5x 14.0x Torrent Pharma 2,825 (0.5%) 6,375 7,065 6.3x 5.7x 21.9x 19.3x 41.8x 33.3x Biocon 394 (0.3%) 6,305 6,512 6.1x 4.9x 22.1x 16.1x 44.2x 29.6x Lupin 981 (3.6%) 5,929 6,181 2.9x 2.5x 17.3x 13.4x 37.9x 26.3x Cadila Healthcare 401 1.3% 5,469 6,429 3.2x 2.9x 15.5x 14.4x 23.9x 21.6x Alkem Labs 2,844 (2.8%) 4,534 4,613 3.8x 3.4x 19.0x 17.0x 24.7x 22.0x Mid Cap Pharma IPCA Labs 2,005 (0.4%) 3,377 3,382 4.7x 4.2x 18.9x 17.7x 25.1x 23.7x Alembic Pharma 999 (3.7%) 2,619 2,850 4.1x 3.7x 16.1x 15.3x 22.2x 22.3x Syngene Intl. 483 (2.7%) 2,577 2,493 8.3x 6.9x 27.1x 22.0x 51.5x 40.8x Natco Pharma 848 2.2% 2,057 2,088 7.4x 6.1x 22.5x 15.8x 29.2x 21.9x Ajanta Pharma 1,622 (0.5%) 1,887 1,856 5.1x 4.5x 17.5x 15.2x 27.2x 22.9x Glenmark Pharma 492 3.4% 1,851 2,301 1.5x 1.4x 8.8x 8.0x 16.1x 14.3x Jubilant LS 828 2.5% 1,759 2,181 1.7x 1.5x 8.0x 7.2x 13.5x 11.6x Laurus Labs 1,141 13.0% 1,631 1,758 3.7x 3.2x 15.0x 13.2x 24.4x 20.9x Eris LS 549 2.5% 995 977 6.2x 5.6x 18.3x 16.4x 22.7x 20.1x MNC Pharma Abbott India 16,840 2.3% 4,771 4,502 7.5x 6.7x 36.7x 31.8x 52.9x 45.2x GSK Pharma 1,486 (2.1%) 3,355 3,217 7.0x 6.3x 29.7x 27.0x 42.7x 37.3x Pfizer Ltd 4,604 2.6% 2,808 2,529 8.3x 7.6x 29.3x 25.2x 38.9x 35.0x Sanofi India2 8,807 5.8% 2,704 2,555 6.3x 5.9x 27.1x 24.6x 38.7x 35.0x Novartis India 646 (1.1%) 213 144 NA NA NA NA NA NA Industry Update ▪ AIOCD3 has written a letter to Amazon CEO Jeff Bezos against Amazon’s entry into the online pharmacy segment in India as the present laws under Drug and Cosmetics Act does not allow ‘home delivery’ by online pharmacies ▪ Reliance acquired a majority stake of 60% in the ultimate holding company of online pharmacy Netmeds along with 100% ownership of subsidiaries Tresara Health, Netmeds Marketplace and Dadha Pharma Distribution for USD 82.7 mn – Acquisition of up to 80% stake by April 2024, through mix of primary and secondary; option to increase up to 100% – Implied LTM EV/Sales of 4.8x based on FY20 consolidated net sales of USD 29.5 mn ▪ Serum Institute of India is in talks with PE investors to raise up to USD 1 bn for COVID-19 vaccine development ¹ Financial year ending March; 2Financial year ending December; 3 All India Organization of Chemists and Druggists Source: Company news, Bloomberg as on Aug 21, 2020. FX rate: USD 1 = INR 75

11 Sectoral Update – Healthcare India Healthcare Update

1 Month Share Price Performance Hospitals Diagnostic and Medical Devices

Apollo Hospitals 11.8% Dr Lal Pathlabs (6.8%) 2.2% Narayana Hrudayalaya 20.1% Metropolis 20.1% Aster DM Healthcare 9.2% Thyrocare 30.1% Healthcare Global 3.5% Shalby 20.2% Poly Medicure 15.7%

Trading Comparables1 Weekly EV/Revenue EV/EBITDA P/E Share Price change in Market Cap EV (INR) price (%) USD mn USD mn FY21 FY22 FY21 FY22 FY21 FY22

Hospitals

Apollo Hospitals 1,678 (1.7%) 3,112 3,494 2.3x 1.9x 21.8x 13.9x 377.6x 40.5x

Fortis Healthcare 138 1.6% 1,385 1,635 3.1x 2.4x 34.0x 15.0x NM 41.1x Narayana 339 1.8% 923 1,025 2.8x 2.2x 35.6x 14.7x NM 34.6x Hrudayalaya Aster DM 140 6.6% 931 1,718 1.4x 1.2x 11.4x 8.6x 46.9x 15.9x Healthcare Healthcare Global 129 0.3% 152 246 1.7x 1.4x 11.9x 8.5x NM NM

Shalby2 87 1.6% 126 125 2.2x 1.7x 16.1x 9.1x 36.5x 22.5x

Diagnostics

Dr Lal Pathlabs2 1,845 (1.0%) 2,050 2,022 11.0x 9.0x 45.8x 32.8x 73.5x 48.7x

Metropolis2 1,751 4.6% 1,183 1,162 9.7x 7.8x 36.7x 26.9x 61.8x 41.2x

Thyrocare2 788 11.8% 555 545 9.1x 7.6x 25.7x 18.8x 42.2x 30.2x

Medical Devices

Poly Medicure 430 8.2% 506 524 5.7x³ NA 23.9x³ NA 39.6x³ NA

Industry Update

▪ After Amazon India, Flipkart (Walmart) is looking to enter the e-pharmacy space by building its own team internally. It has also held early stage partnership talks with PharmEasy, even though PharmEasy is rumoured to be in advanced discussions to acquire rival Medlife ▪ National Digital Health Mission, unveiled by PM Narendra Modi on 15 August, under which every Indian will get a health ID in order to ease access to medical services has been rolled out on a pilot mode – The six UTs where the mission was rolled out include Chandigarh, Ladakh, Dadra and Nagar Haveli and Daman and Diu, Puducherry, Andaman and Nicobar Islands and Lakshadweep

¹ Financial year ending March 2 Net Debt is negative, EBITDA is positive 3 Represents FY20 multiples for Poly Medicure Source: Company news, Bloomberg as on August 21, 2020. FX rate: USD 1 = INR 75

12 Sectoral Update – Auto & Auto Components India Auto & Auto Components Update

1 Month Share Price Performance Auto Makers Auto Components and Tyres

Maruti Suzuki 13.7% 21.1% 1.6% M&M 3.7% Bosch 7.9% Hero MotoCorp 5.7% MRF (9.1%) 11.5%

Trading Comparables1

Weekly EV/Revenue EV/EBITDA P/E Share Price change in Market cap EV (INR) price (%) USD mn USD mn FY21 FY22 FY21 FY22 FY21 FY22

Auto Makers

Maruti Suzuki 6,973 5.8% 28,113 27,976 3.5x 2.6x 36.7x 23.4x 49.0x 29.7x

Bajaj Auto 3,053 2.2% 11,791 11,378 3.7x 2.8x 23.9x 16.4x 23.0x 16.9x

M&M 610 (0.8%) 10,118 17,295 1.5x 1.4x 9.3x 8.1x 19.9x 15.9x

Hero MotoCorp 3,033 8.2% 8,087 7,487 1.6x NA NA NA 17.0x NA

Tata Motors 121 (3.0%) 5,279 16,461 0.5x 0.4x 5.6x 3.5x NM 22.1x

Auto Components

Motherson Sumi 118 (2.0%) 4,954 6,518 0.8x 0.7x 10.8x 7.7x 40.4x 20.5x

Bosch 14,197 3.6% 5,588 5,259 3.4x 3.0x 22.6x 18.9x 30.7x 26.3x

Tyres

MRF 59,627 (2.9%) 3,375 3,217 1.6x 1.4x 9.9x 8.4x 25.0x 19.2x

Industry Update

▪ Automotive Component Manufacturers Association of India (ACMA) stated that India’s auto parts industry recorded a drop in revenue after five years; revenue in FY20 fell 11.7% to USD 49.2bn ▪ Commercial vehicle manufacturers are expected to incur a net loss to the tune of USD 800mn in the current financial year, with volume likely to touch its lowest point in a decade, according to an industry report ▪ OEMs and auto dealers say that consumers are facing challenges with financing as rejection rates for new vehicle loans have gone up due to banks' and NBFCs’ cautious stance, with increased scrutiny on large-ticket loans

¹ Financial year ending March; Note: USD 1 = INR 75 Source: Bloomberg as on August 21, 2020, Company information, News run

13 Sectoral Update – Metals & Mining India Metals & Mining Update

1 Month Share Price Performance Integrated Mining & Metals Steel & Other Metals

Coal India 4.8% JSW Steel 34.3%

Vedanta 18.0% 19.4%

NMDC 14.7% Jindal Steel & Power 25.2%

Hindustan Zinc 23.9% 22.7%

Trading Comparables1

Weekly EV/Revenue EV/EBITDA P/E Share Price change in Market cap EV (INR) price (%) USD mn USD mn FY21 FY22 FY21 FY22 FY21 FY22 Integrated Mining & Metals

Coal India 140 5.8% 11,474 8,574 0.7x 0.6x 4.0x 3.4x 6.7x 5.7x

Vedanta 131 6.6% 6,484 10,455 1.1x 0.9x 4.8x 3.6x 36.3x 10.5x

NMDC 96 3.2% 3,927 3,678 3.0x 2.3x 6.6x 5.2x 9.4x 7.7x

Hindustan Zinc 227 (1.9%) 12,776 9,894 4.3x 3.5x 9.4x 7.1x 17.4x 13.4x

Steel

JSW Steel 282 6.2% 9,094 15,624 1.8x 1.4x 11.1x 7.2x 50.5x 13.9x

Tata Steel 429 2.5% 6,518 20,855 1.2x 1.0x 10.8x 6.9x NM 9.6x

Jindal Steel & Power 224 5.4% 3,044 6,908 1.4x 1.2x 7.3x 5.8x NM 20.7x

Other Metals

Hindalco Industries 196 6.1% 5,883 11,277 0.8x 0.6x 7.5x 5.6x 18.5x 9.9x

Industry Update

▪ In line with the Steel Import Monitoring System (SIMS) that captures details of steel imports on a weekly basis, the government will soon put in place similar mechanisms to monitor imports of coal, aluminum and copper with the aim of capturing disaggregated data to facilitate effective monitoring and policy intervention ▪ Global players remain bullish on India despite the World Steel Association predicting India’s steel demand to decline by 18% in 2020. London based Liberty Steel Group, which acquired Adhunik Metaliks (AML), is looking for more acquisitions in India. South Korean steel major Posco is looing to set up a greenfield steel plant in India

¹ Financial year ending March; Note: USD 1 = INR 75 Source: Bloomberg as on August 21, 2020, Company information, News run

14 Sectoral Update – Aviation India Aviation Update

1 Month Share Price Performance Indian LCCs Global FSCs Global LCCs

Southwest Airlines 2.5% Interglobe Delta Airlines 4.5% 21.7% Aviation Ryanair 0.5% Air China 12.0% EasyJet (9.2%) SpiceJet 13.0% IAG (13.2%) Air Asia Group (6.3%)

Indigo and Spice Jet Share Price Performance

Last 1 year 1 Last 1 month 1 130 150

120 120

90 110 60 100 30

90 0 21-Jul-20 28-Jul-20 05-Aug-20 13-Aug-20 21-Aug-20 Aug-19 Nov-19 Jan-20 Mar-20 Jun-20 Aug-20

Price (Indigo) Price (SpiceJet)

Trading Comparables2

Weekly Market EV/Revenue EV/EBITDA P/E Share change in Cap EV Price (INR) price (%) USD mn USD mn FY21 FY22 FY21 FY22 FY21 FY22

Interglobe Aviation 1,173 3.0% 6,026 6,294 1.8x 1.1x 16.1x 5.8x NM 17.5x

SpiceJet 54 9.8% 433 544 0.3x 0.3x 9.6x 2.1x NM 11.8x

Industry Update

▪ Directorate General of Civil Aviation (DGCA) ordered a flight operation quality assurance (FOQA) audit of all carriers starting with Air India and SpiceJet, to ensure that weak finances of airlines do not have any safety implications ▪ India is in negotiations with 13 countries to establish bilateral air bubble arrangements. This includes Australia, Italy, Japan, New Zealand, Nigeria, Bahrain, Israel, Kenya, Philippines, Russia, Singapore, South Korea and Thailand ▪ Government cleared the award of airports at Jaipur, Thiruvananthapuram and Guwahati to the . Airport Authority of India (AAI) will get an upfront amount of INR 1,070 cr. (USD 143mn) from handing over the airports to the private developer

¹ Rebased to 100, 2 Financial year ending March; Note: USD 1 = INR 75 Source: Bloomberg as on August 21, 2020, Company information, News run

15 Sectoral Update – Power and Infrastructure India Power Update

1 Month Share Price Performance Integrated &Transmission Generation

Adani Trans. 12.7% NTPC 17.2% Adani Green Torrent 11.2% 12.1% NHPC 15.4% Tata 23.8% Adani Power 11.7% CESC 10.9% JSW 25.9% Power Grid 5.3% Azure 24.2%

Trading Comparables¹ Share Weekly Market EV/Revenue EV/EBITDA P/E EV Price change in Cap. USD mn (INR) price (%) USD mn FY21 FY22 FY21 FY22 FY21 FY22 Integrated Adani Trans. 272 14.0% 3,990 7,454 4.9x 4.5x 11.8x 10.3x 30.8x 25.1x Torrent Pwr. 355 3.6% 2,276 3,353 1.7x 1.7x 6.9x 6.6x 13.8x 12.3x 62 12.7% 2,234 9,100 2.2x 2.0x 8.7x 8.4x 12.2x 11.0x CESC 637 6.9% 1,125 2,520 1.7x 1.6x 5.9x 5.8x 6.8x 6.2x Generation NTPC 106 19.9% 13,978 39,668 2.7x 2.4x 9.2x 8.0x 8.1x 6.9x Adani Green 377 5.3% 7,852 9,605 NA NA NA NA NA NA NHPC 23 12.6% 3,114 6,138 4.7x 4.4x 8.4x 7.8x 8.1x 7.6x Adani Power 39 5.4% 2,013 8,746 3.0x 2.8x 9.4x 8.3x 19.9x 11.2x JSW Energy 58 3.1% 1,266 2,248 2.0x 1.9x 5.8x 5.3x 11.7x 9.8x Azure Power 1,744 6.9% 1,112 2,271 11.0x 7.3x 14.4x 9.2x NM NM Transmission Power Grid 189 7.8% 13,191 30,922 5.9x 5.5x 6.8x 6.3x 8.4x 7.7x Key Parameters of USD Bonds Issued by Indian Renewable IPPs

Issue Amt. Issued Curr. 1w 1m 3m 6m 1y Issuer Maturity Coupon Date (USD mn) YTM ago ago ago ago ago Greenko 16-Aug-16 16-Aug-23 500.0 4.88% 4.55% 4.26% 5.27% 5.97% 4.39% 5.18% Greenko 24-Jul-17 24-Jul-24 650.0 5.25% 4.41% 4.19% 4.99% 6.15% 4.48% 5.22% Greenko 24-Jul-17 24-Jul-22 350.0 4.88% 4.12% 3.93% 5.03% 5.61% 4.18% 5.16% Azure Power 03-Aug-17 03-Nov-22 500.0 5.50% 4.08% 4.09% 5.02% 5.23% 4.13% 5.23% Renew Power 12-Mar-19 12-Mar-24 525.0 6.67% 5.20% 5.16% 6.44% 7.54% 4.75% 6.18% Adani Green 10-Jun-19 10-Dec-24 500.0 5.65% 4.60% 4.64% 5.38% 6.07% 4.52% NA Greenko 29-Jul-19 29-Jul-26 535.0 5.95% 5.04% 4.93% 6.14% 6.43% 4.94% 6.01% Greenko 29-Jul-19 29-Jan-25 500.0 5.55% 4.87% 4.63% 5.67% 6.23% 4.58% 5.58% Greenko 21-Aug-19 21-Feb-23 435.0 6.25% 4.42% 4.42% 5.63% 6.57% 4.55% NA Renew Power 12-Sep-19 27-Sep-22 300.0 6.45% 4.99% 4.99% 6.58% 7.22% 4.49% NA Azure Power 24-Sep-19 24-Dec-24 350.1 5.65% 4.60% 4.64% 5.38% 6.07% 4.52% NA Renew Power 29-Jan-20 05-Mar-27 450.0 5.88% 5.72% 5.69% 6.55% 7.09% 5.26% NA

¹ Financial year ending March; Note: USD 1 = INR 75 Source: Bloomberg as on August 21, 2020 (August 20, 2020 for Azure Power – Trading Comps), Company Information, News run

16 Sectoral Update – Power and Infrastructure India Infrastructure Update

1 Month Share Price Performance Ports, Airports and Roads City Gas Dist.

APSEZ 13.6% IGL 2.5%

GMR 17.1% 7.0%

IRB 12.9% Adani Gas 9.9%

Ashoka Buildcon 23.0% MGL 4.0%

Performance of Listed InvITs

FY20 Dividends (INR)

Trust Unit Price (INR) Q1 Q2 Q3 Q4 India Grid 100.9 3.0 3.0 3.0 3.0 IRB InvIT 39.6 3.0 2.5 2.7 1.8

Trading Comparables¹ Share Weekly Market EV EV/Revenue EV/EBITDA P/E Price change in Cap. USD mn (INR) price (%) USD mn FY21 FY22 FY21 FY22 FY21 FY22 Ports, Airports and Roads APSEZ 354 1.8% 9,599 12,371 7.6x 6.4x 12.1x 10.1x 17.3x 14.1x GMR Infra 24 16.0% 1,956 5,078 6.4x 5.2x 29.8x 16.2x NM NM IRB Infra 128 6.5% 598 1,518 2.0x 1.8x 4.9x 4.3x 20.0x 15.0x Ashoka 70 (1.4%) 262 954 1.6x 1.3x 5.4x 4.4x NM 33.1x Build. City Gas Dist. IGL 416 7.3% 3,884 3,596 3.4x 3.1x 14.7x 13.1x 21.5x 19.4x Gujarat Gas 322 2.5% 2,952 3,104 2.7x 2.3x 14.9x 11.9x 26.2x 19.3x Adani Gas 165 4.6% 2,426 2,465 9.9x 7.9x 28.6x 23.0x 42.6x 36.5x MGL 1,043 7.3% 1,374 1,203 4.4x 2.9x 12.2x 7.9x 20.6x 12.9x Recent Developments – Power and Infra

▪ Following the announcement to infuse liquidity to the tune of INR 90,000 Cr. (USD 12 bn) into the Power DISCOMs under the Aatmanirbhar Bharat package, the Government approved a relaxation for Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) to extend loans to the DISCOMs under the UDAY Program ▪ Vena Energy and JSW Solar won 970 MW of blended wind projects under the SECI’s 2.5 GW auction for ISTS blended wind power projects − Vena Energy won 160 MW of projects quoting the lowest tariff of INR 2.99 / kWh while JSW Solar was awarded 810 MW of projects at INR 3.00 / kWh ▪ NTPC received approvals from Niti Aayog and Department of Investment and Public Asset Management (DIPAM) to set up a wholly-owned company for its renewable energy business - NTPC targets to generate nearly 30% of its overall power capacity from renewable energy sources by 2032

¹ Financial year ending March; Note: USD 1 = INR 75 Source: Bloomberg as on August 21, 2020, Company Information, News run

17 Sectoral Update – Consumer and Retail India Consumer Update

1 Month Share Price Performance Diversified, Wellness and Personal Care Food Tobacco and Alcohol

HUL(5.0%) ITC 2.4% Nestle India 0.1% (4.1%) (1.5%) Godrej Consumer 0.5% 6.4% Britannia 0.1% United Breweries 5.6% Colgate India (0.2%) VST Industries 6.7% Emami 44.7% Tata Consumer 33.3% Zydus Wellness 9.1% Godfrey Philips 2.2%

Trading Comparables¹ Weekly Market EV/Revenue EV/EBITDA P/E Share Price change in Cap EV (INR) price (%) USD mn USD mn FY21 FY22 FY21 FY22 FY21 FY22 Diversified, Wellness and Personal Care HUL 2,202 1.3% 68,934 68,087 10.1x 9.0x 37.0x 31.8x 52.1x 43.9x Dabur 492 (1.0%) 11,593 11,375 8.5x 7.6x 38.4x 33.8x 46.2x 40.9x Godrej Consumer 684 (0.2%) 9,318 9,610 6.4x 5.8x 27.7x 24.5x 38.3x 34.0x Marico 376 2.7% 6,476 6,426 5.8x 5.3x 27.4x 24.7x 38.7x 35.0x Colgate India 1,411 (0.0%) 5,116 5,060 8.1x 7.4x 29.0x 26.2x 44.4x 39.8x Emami 357 9.1% 2,117 2,120 5.4x 5.0x 19.6x 18.0x 27.2x 24.7x Zydus Wellness 1,621 0.2% 1,247 1,424 5.1x 4.6x 27.0x 23.5x 35.8x 28.6x Food Nestle India 16,562 1.3% 21,291 20,989 11.8x 10.4x 48.8x 42.3x 71.8x 60.9x Britannia 3,883 2.1% 12,462 12,525 6.4x 5.8x 36.1x 31.9x 46.8x 40.9x Tata Consumer 546 1.5% 6,667 6,689 4.3x 4.0x 28.4x 26.2x 47.7x 41.5x Tobacco and Alcohol ITC 197 0.2% 32,290 29,037 4.0x 3.6x 10.4x 9.4x 14.9x 13.4x United Spirits 584 0.0% 5,661 5,993 4.7x 4.1x 27.1x 22.6x 42.8x 34.3x United Breweries 1,040 7.9% 3,667 3,679 4.0x 3.4x 24.5x 19.2x 45.9x 33.7x VST Industries 3,463 1.7% 713 608 3.2x NA 9.5x NA 14.7x NA Godfrey Philips 950 1.3% 659 641 1.4x NA 6.2x NA 9.3x NA Industry Update ▪ Consumer spend on groceries/ household expenses reduced by 33% in March, 69% in April, 48% in May and 30% in June compared to the same period a year ago due to the pandemic ▪ FMCG companies in the Lifestyle and consumer electronics segment are offering the lowest discounts seen in recent years in the ongoing sale period. They expect the trend to continue in the festive season, as they are either low on stock or demand is reviving faster than supplies ▪ Consumer sentiment survey reveals that ‘cautious living’ is the new emerging theme in Urban India despite an increase in COVID cases, according to a research report ¹ Financial year ending March – Nestle India calendarized to March year end; Note: USD 1 = INR 75 Source: Bloomberg as on August 21, 2020, Company information, News run

18 Sectoral Update – Consumer and Retail India Retail Update

1 Month Share Price Performance Restaurant & Grocery Retailers Lifestyle Retailer

Jubilant Foodworks 13.4% (0.7%) Westlife Development 6.5% Aditya Birla Fashion & Retail 30.3% Avenue Supermarts 10.7% Future Lifestyle Fashions 15.5% Future Retail 14.1% Vmart Retail 14.9% Spencer’s Retail (1.7%) Shoppers Stop 14.5%

Trading Comparables¹

Weekly Market EV/Revenue EV/EBITDA P/E Share Price change in Cap EV (INR) price (%) USD mn USD mn FY21 FY22 FY21 FY22 FY21 FY22

Restaurant

Jubilant Foodworks 1,978 5.8% 3,481 3,610 7.8x 6.0x 38.0x 26.0x 104.0x 57.5x

Westlife Development 370 0.5% 768 875 6.0x 3.9x 110.5x 30.5x NM 103.0x

Grocery Retailers

Avenue Supermarts 2,259 3.7% 19,515 19,543 5.5x 4.1x 72.7x 47.4x 111.4x 71.7x

Future Retail 122 18.4% 885 1,191 0.4x 0.4x 5.2x 4.7x 9.1x 7.3x

Spencer’s Retail 89 2.9% 94 94 NA NA NA NA NA NA

Lifestyle Retailer

Trent 606 7.1% 2,873 3,121 8.6x 5.6x 84.3x 36.2x NM 96.8x Aditya Birla Fashion & 146 13.3% 1,619 2,290 NA NA NA NA NA NA Retail Future Lifestyle Fashions 133 13.3% 357 469 0.5x NA 3.4x NA 20.4x NA

Vmart Retail 2,067 16.7% 501 499 2.9x 1.9x 29.1x 16.7x 587.5x 53.2x

Shoppers Stop 181 5.6% 213 214 0.5x 0.4x 3.6x 3.8x NM 30.2x

Industry Update

▪ E-tailers have recovered from the impact of COVID, wherein the sector has grown by 17% compared to pre- lockdown order volume with categories like health and pharma, and FMCG and agriculture witnessing an exponential growth, as per an industry report ▪ Food delivery industry has largely recovered, with the sector clocking c.75-80% of pre-COVID GMV. However, the dining out industry is still operating at 8-10% of pre-COVID levels due to fear of COVID transmission ▪ India’s retail sector responds to COVID-19 with innovation as Arvind Limited, India’s leading textile-to-retail announced the launch of Anti-Viral Textile technology under its brand ‘Intellifabrix’

¹ Financial year ending March; Note: USD 1 = INR 75 Source: Bloomberg as on August 21, 2020, Company information, News run

19 Sectoral Update – Real Estate India Real Estate Update

1 Month Share Price Performance

DLF 12.8% Prestige Estates Projects 39.4% Embassy Office Parks REIT 4.7% Chalet Hotels 23.6% Godrej Properties (4.4%) Nesco 20.5% 2.8% Sunteck Realty 38.2% Phoenix Mills 18.6% Brigade Enterprises 19.1%

Trading Comparables¹

Weekly Market EV/Revenue EV/EBITDA P/E Share change in Cap EV Price (INR) price (%) USD mn USD mn FY21 FY22 FY21 FY22 FY21 FY22

DLF 162 13.5% 5,337 5,803 6.2x 5.9x 16.7x 14.9x 19.2x 17.3x

Embassy Office Parks 364 (0.9%) 3,749 4,635 14.8x 12.8x 18.0x 15.9x 29.1x 25.9x REIT

Godrej Properties 859 (0.3%) 2,886 3,039 13.2x 12.9x 76.5x 74.9x 39.9x 49.4x

Oberoi Realty 387 6.2% 1,877 1,996 4.9x 4.1x 10.8x 8.8x 13.2x 12.1x

Phoenix Mills 694 9.8% 1,420 2,098 7.3x 6.6x 14.1x 11.9x 27.3x 21.3x

Prestige Estates Projects 251 7.9% 1,341 2,395 2.5x 2.5x 8.0x 8.1x 18.2x 17.5x

Chalet Hotels 161 14.1% 439 649 4.1x 3.4x 10.7x 8.4x 20.7x 14.8x

Nesco 524 1.0% 492 485 7.5x 6.1x 11.0x 8.9x 16.4x 13.0x

Sunteck Realty 252 16.8% 492 547 3.0x 2.8x 6.9x 6.8x 9.5x 9.3x

Brigade Enterprises 172 14.9% 468 968 2.4x 2.1x 8.2x 6.6x 18.1x 12.3x

Industry Update

▪ Developers such as DLF, ATS, , Emami Realty and Alpha Corp have shifted focus to smaller cities to monetize land banks as Covid-19 accelerated demand for houses in Tier 2 and Tier 3 cities due to reverse migration ▪ An industry report expects that an additional 9.3mn sq. ft of real estate space will be developed by 2025 for the rapidly growing data center industry at an investment of USD 1.03 bn (c. INR 7,700 cr.) ▪ SBI unveiled an online home carnival (for buyers to unlock group pricing while allowing developers to close sales in bulk) in partnership with AddaCorner. Developers on the platform include Brigade, Salarpuria, Assetz, and 3 others

¹ Financial year ending March; Note: USD 1 = INR 75 Source: Bloomberg as on August 21, 2020, Company information, News run

20 NovaDhruva Team

Sunil Sanghai Founder & CEO [email protected]

Rikin Sanghvi Dhruv Bhatia Executive Director Vice President [email protected] [email protected]

Mohit Bhutda Piyush Ramchandani Senior Associate Senior Associate [email protected] [email protected]

Neel Jain Stuti Bhartia Senior Associate Associate [email protected] [email protected]

Swahum Mukherjee Ponmathi Veerachami Senior Analyst Senior Analyst [email protected] [email protected]

Mandvi Dixit Vishal Naik Executive Assistant Manager [email protected] [email protected]

NovaDhruva Capital Private Limited 902 One Centre, Tower 2A; Elphinstone Road (West), Mumbai 400 013; : +91 22 6246 6000 www.novadhruva.com