L&T Infotech
BSE SENSEX
40,850
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
S&P CNX
12,043
LTI IN
172
290.7 / 4.1
1897 / 1437
-1/-10/-7
286
25.4
4 December 2019
Update| Sector: Technology
CMP: INR1,671
TP: INR2,030 (+22%)
Upgrade to Buy
Bounce back on the horizon
Over the past four years, LTI has continuously strengthened the moats around its
business through a slew of measures. Client specific issues, which led to muted
performance over 9MCY19, now seem to be largely behind.
Despite the cautious IT spending trend, the recent large deal wins and client
additions give us the confidence to expect strong revenue CAGR of 11% (USD) over
FY19-21E. Lower exposure to disrupted horizontals (e.g. legacy IMS, BPO, etc.) and
scale benefits should help negate some of the macro/vertical headwinds.
As growth returns, we expect utilization to increase by ~200bp, which should be a
key near-term margin lever. Multiples have corrected ~27% from its peak on
concerns related to key clients and immediate integration with Mindtree.
As these concerns are largely behind, we upgrade the stock to Buy. Our TP of
INR2,030 implies 7% re-rating to 19x 1-year forward P/E, at 15% discount to TCS.
The rich multiples should be supported by high ROCEs (42% in FY19) and industry-
leading earnings growth. Key risk: Leadership attrition.
Financials & Valuations (INR b)
2019 2020E
Y/E Mar
94.5
105.1
Net Sales
18.8
19.8
EBITDA
15.2
15.0
PAT
86.6
85.7
EPS (INR)
30.6
-1.1
Gr. (%)
279.6
344.7
BV/Sh (INR)
34.6
27.4
RoE (%)
41.5
32.0
RoCE (%)
19.3
19.5
P/E (x)
6.0
4.8
P/BV (x)
2021E
118.4
23.3
17.1
97.4
13.8
418.8
25.5
30.8
17.1
4.0
Continuously strengthening the moats around its business
Decentralization of decision making to 7 business units (BUs) has meaningfully
improved the company’s agility. In addition, (1) marquee client connects, (2)
sales driven by multiple units (e.g. alliances, customer success, large deal teams),
(3) strong focus/expertise in a few segments (e.g. CIB and WM in BFSI), (4)
optimal scale and (5) a high quality management team remain the key
competitive advantages of the company.
Client specific issues seem largely behind
Over 9MCY19, LTI has witnessed deceleration in growth (~9pp YoY) and drop in
utilization (~300bp) due to issues faced at three of its key clients. Further, in
conjunction with rising attrition (18% over last 12 months), investments, etc.,
EBIT margin contracted ~360bp. While client specific issues seem to be largely
behind, the key question is whether growth and margins will bounce back in a
cautious spending environment.
Recent large deal wins + client addition gives confidence
The recent large deal wins hint at growth accelerating over the next 12-18
months. Besides, over the last one year, LTI’s client addition across buckets was
the strongest and broad-based v/s comparable prior periods. Given the
company’s account mining capabilities, this should provide good headroom for
incremental growth.
Sudheer Guntupalli – Research analyst
(Sudheer.Guntupalli@motilaloswal.com); +91 22 50362749
Anmol Garg – Research analyst
(Anmol.Garg@MotilalOswal.com); +91 22 7193 4271
Mohit Sharma – Research analyst
(Mohit.Sharma@MotilalOswal.com); +91 22 6129 1531
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.
 Motilal Oswal Financial Services
L&T Infotech
Lower exposure to disrupted offerings and scale to be favorable
It is interesting to note that during the previous cycle of cautious IT spending (Jun’16
to Dec’17), LTI consistently outperformed growth of Tier-I companies and that too
by a wide margin (1-11pp YoY). Besides relatively low/no exposure to horizontals
going through deflationary headwinds (e.g. legacy IMS, BPO, etc.), we also attribute
it to the scale advantage of the company.
Utilization increase is a key near-term margin tailwind
Being a growth focused company, LTI should continue investing in sales &
marketing. We see little headroom for further G&A rationalization or improvement
in the onsite-offshore mix. However, as growth returns, we expect ~200bp increase
in utilization in the near term. Also, we expect attrition to remain under control as
industry demand and hiring activity slows down.
Prudent capital allocation + industry-leading growth to garner rich
multiples
Historically, LTI resorted to only small acquisitions (e.g. Augment IQ, etc.) targeting
capabilities rather than scale. Additionally, prudent investments in organic
capabilities (e.g. cyber security), partnerships, platforms and people are also
reflected in its industry-leading earnings growth (19% CAGR over FY16-19) and high
ROCEs (42% in FY19).
Valuation and view
Weakness in key accounts along with concerns around an immediate integration
with Mindtree saw its multiple correcting ~27% from its peak over the last 12-15
months. As these concerns are largely behind, we upgrade the stock to
Buy.
Our TP
of INR2,030 implies 7% re-rating to 19x 1-year forward P/E, at 15% discount to the
market leader (TCS).
4 December 2019
2
 Motilal Oswal Financial Services
L&T Infotech
Story in charts
Exhibit 1: Sharp deceleration in revenue growth…
CC growth YoY
23%
23%
21%
18%
13%
12%
79.7
80.4
Exhibit 2: … accompanied by a drop in utilization
Utilization (Including Trainees)
82.1
80.1
80.5
78.9
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 3: Attrition inched up in line with industry trends…
Attrition (LTM)
18
18
Exhibit 4: …impacting EBIT margins
EBIT Margin (%)
19
18
19
18
16
16
18
17
15
15
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 5: Recent strength in large deal wins…
Net New large deal wins (USD M)
100
50
50
0
44
100
Exhibit 6: ...and client additions seen across the board
USD 1 m+ clients
USD 20 m+ clients
USD 5 m+ clients
USD 50 m+ clients
USD 10 m+ clients
USD 100 m+ clients
40
30
20
10
-
(10)
Sep15-Sep16 Sep16-Sep17 Sep17-Sep18 Sep18-Sep19
Source: MOFSL, Company
Source: MOFSL, Company
4 December 2019
3
 Motilal Oswal Financial Services
L&T Infotech
Exhibit 7: Strong client additions should accelerate growth
Weighted average value of new clients added (USD M)
263
Exhibit 8: In previous down-cycle, LTI outperformed Tier-1…
Large-Cap IT Growth (US$, YoY)
LTI Growth (US$, YoY)
118
120
130
Sep15-Sep16
Sep16-Sep17
Sep17-Sep18
Sep18-Sep19
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 9: ...given its low exposure to disrupted horizontals
BPO Revenue mix (%)
Exhibit 10: Little headroom for further SG&A optimization
SG&A (% of revenue)
16
15
15
9
5
5
0
15
14
15
14
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 11: High ROCEs + Industry-leading growth…
ROCE
42
30
18
Exhibit 12: …should justify premium multiples
One year forward PE
25
20
Sector PE
25
20
18
21
14
15
10
Source: MOFSL, Company
Source: MOFSL, Company
4 December 2019
4
 Motilal Oswal Financial Services
L&T Infotech
Operating metrics
Exhibit 13: Operating metrics
1QFY18
Revenue by verticals (%)
Banking and financial services
Insurance
Energy and Process
CPG, Retail and Pharma
High-Tech, Media & Entertainment
Others
Revenue by service offerings (%)
ADM and Testing
ERP
IMS
Analytics
Enterprise Integration
Platform based solutions
Revenue by geography (%)
North America
Europe
India
ROW
Client metrics
Top 5 client
Top 10 client
Top 20 client
Non Top 20 clients
Number of active clients
New clients added in the period
Million $ clients
5 Million $ clients
10 Million $ clients
20 Million $ clients
50 Million $ clients
100 Million $ clients
Employee metrics
Development
Sales and support
Total employees
Efforts mix
Onsite
Offshore
Utilization measures
Including trainees
Excluding trainees
Attrition LTM (%)
26.8
20.6
11.7
8.5
10.5
5.3
45.2
22.9
12.3
9.7
6.4
3.6
68.7
17.8
7.1
6.3
38.1
50.9
66.3
33.7
256
12
97
35
24
12
4
20,899
1,422
22,321
24%
76%
77.7
78.2
14.7
2QFY18
27.3
20.6
12.0
9.0
11.1
4.0
43.5
24.1
10.9
10.9
6.8
3.8
70.4
17.5
5.5
6.7
38.0
50.9
66.0
34.0
256
13
99
39
23
12
4
21,147
1,407
22,554
23%
77%
79.6
80.7
15.0
3QFY18
27.1
19.4
11.8
9.2
10.6
4.6
41.8
26.4
10.8
10.8
6.7
3.5
67.3
18.0
8.4
6.4
36.4
50.8
66.1
33.9
289
17
102
43
22
13
4
21,979
1,415
23,394
24%
76%
80.3
81.5
14.6
4QFY18
28.7
18.3
11.5
9.0
10.6
4.6
41.2
27.0
11.7
10.7
6.5
3.1
66.0
18.6
8.0
7.4
35.2
49.6
65.1
34.9
300
15
109
44
23
13
4
22,655
1,484
24,139
23%
77%
79.9
81.1
14.8
1QFY19
30.9
18.2
10.1
9.1
11.3
4.5
42.1
26.3
11.5
10.3
6.5
3.1
66.6
17.9
6.4
9.1
36.6
50.3
66.0
34.0
301
19
114
42
25
13
4
23,656
1,494
25,150
23%
77%
79.7
81.2
15.1
2QFY19
29.9
17.9
10.7
10.2
11.2
4.7
39.9
25.2
11.7
12.2
8.0
3.0
67.4
17.1
6.4
9.2
36.2
49.9
65.5
34.5
312
22
114
44
25
14
4
24,923
1,491
26,414
23%
77%
80.4
82.3
15.3
3QFY19
29.1
17.8
10.8
10.6
11.3
4.6
38.6
27.8
11.4
11.3
7.6
3.2
66.8
16.7
7.8
8.8
34.5
48.4
64.3
35.7
314
17
121
47
25
15
5
25,985
1,528
27,513
22%
78%
82.1
83.0
16.5
4QFY19
27.7
17.8
11.0
10.6
12.4
3.9
38.0
29.2
11.0
10.7
8.0
3.2
66.4
16.4
8.2
9.1
32.2
47.0
63.4
36.6
343
14
123
49
26
17
5
26,572
1,597
28,169
22%
78%
80.1
81.1
17.5
1QFY20
27.7
18.1
10.7
11.1
12.5
4.6
38.1
28.4
10.9
11.2
8.2
3.1
68.7
16.0
6.9
8.5
31.3
45.0
62.5
37.5
354
20
124
49
26
19
5
27,665
1,682
29,347
22%
78%
80.5
81.3
18.3
2QFY20
27.1
18.7
12.1
11.5
10.8
3.5
36.1
29.5
11.1
11.3
9.0
3.0
68.7
16.4
6.0
8.9
31.7
45.5
61.4
38.6
366
20
137
48
27
18
6
29,266
1,713
30,979
22%
78%
78.9
80.6
18.4
Source: MOFSL, Company
4 December 2019
5
 Motilal Oswal Financial Services
L&T Infotech
Financials and Valuations
Key Assumptions
Y/E March
INR/USD Rate
Revenues (USD m)
Offshore Revenue (%)
Total Headcount
Net Addition
Per Capita Productivity (USD)
FY14
60.7
747
47.9
17,654
1,641
42,291
FY14
49,205
27.8
29,198
9,649
10,358
21.1
1,300
305
52
-885
7,920
2,072
26.2
-1
-440
5,408
5
5,847
FY15
61.3
810
50.2
19,479
1,825
41,578
FY15
49,780
1.2
31,304
8,358
10,118
20.3
1,579
216
100
815
9,237
1,683
18.2
-2
-2
7,550
40
7,552
FY16
65.9
887
49.7
20,072
593
44,196
FY16
58,471
17.5
38,873
9,238
10,359
17.7
1,740
158
164
2,796
11,422
2,250
19.7
-1
0
9,171
21
9,171
FY17
67.0
970
48.3
21,023
951
46,135
FY17
65,009
11.2
42,123
10,583
12,303
18.9
1,780
0
192
1,643
12,358
2,649
21.4
0
0
9,709
6
9,709
FY18
64.5
1,132
53.7
24,139
3,116
46,907
FY18
73,065
12.4
48,506
12,065
12,494
17.1
1,563
0
710
3,391
15,032
3,423
22.8
0
-485
11,609
20
11,124
FY19
70.0
1,349
52.5
28,169
4,030
47,893
FY19
94,458
29.3
61,643
13,980
18,835
19.9
1,471
0
1,089
1,826
20,279
5,122
25.3
0
0
15,157
31
15,157
FY20E
70.9
1,484
51.8
32,209
4,040
46,067
FY20E
1,05,142
11.3
70,095
15,250
19,797
18.8
2,913
0
772
2,371
20,027
5,036
25.1
0
0
14,990
-1
14,990
(INR M)
FY21E
71.5
1,656
52.9
35,089
2,880
47,183
(INR M)
FY21E
1,18,375
12.6
77,156
17,875
23,344
19.7
3,551
0
1,097
2,000
22,890
5,837
25.5
0
0
17,053
14
17,053
(INR M)
FY21E
174
73,117
73,291
8
0
73,299
23,362
8,398
14,964
0
2,085
76,438
17,402
0
32,431
18,960
7,644
22,518
19,459
936
2,123
53,920
2,330
73,299
Income Statement
Y/E March
Profit & Loss
Sales
Change (%)
Cost of Services
SG&A Expenses
EBITDA
% of Net Sales
Depreciation
Interest
Other Income
Forex
PBT
Tax
Rate (%)
Minority Interest
Extraordinary
Adjusted PAT
Change (%)
Reported PAT
E: MOFSL Estimates
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Minority Interest
Loan
Capital Employed
Applications
Gross Block
Less : Depreciation
Net Block
CWIP
Other LT Assets
Curr. Assets
Current Investments
Inventories
Debtors
Cash & Bank Balance
Loans & Advances
Current Liab. & Prov
Current Liabilities
Other liabilities
Provisions
Net Current Assets
Deferred Tax
Application of Funds
E: MOFSL Estimates
FY14
161
15,942
16,103
2
1,100
17,205
FY15
161
20,102
20,263
4
2,175
22,443
13,379
6,545
6,834
252
2,440
21,045
1,036
0
12,446
2,009
5,555
7,900
4,443
538
2,919
13,144
-228
22,443
FY16
170
20,057
20,227
5
545
20,777
14,210
7,835
6,375
195
4,249
23,748
429
0
15,448
2,034
5,837
12,587
6,041
1,251
5,295
11,161
-1,204
20,777
FY17
171
31,272
31,443
8
0
31,451
11,407
5,988
5,419
13
4,191
33,287
9,406
0
16,421
3,795
3,665
12,722
10,666
0
2,056
20,565
1,263
31,451
FY18
172
38,426
38,598
13
0
38,611
14,362
7,555
6,807
68
2,189
41,942
12,643
0
22,327
3,633
3,339
15,083
11,918
1,042
2,123
26,859
2,689
38,612
FY19
174
48,764
48,938
8
0
48,946
18,325
9,026
9,299
115
3,191
51,701
17,402
0
23,845
4,150
6,304
17,690
14,355
936
2,399
34,011
2,330
48,946
FY20E
174
60,157
60,331
8
0
60,339
20,362
8,398
11,964
68
1,835
64,484
17,402
0
30,246
10,029
6,807
20,343
17,284
936
2,123
44,142
2,330
60,339
6,488
567
2,535
17,415
1,688
0
10,504
1,589
3,634
9,388
6,151
729
2,508
8,027
-412
17,205
4 December 2019
6
 Motilal Oswal Financial Services
L&T Infotech
Financials and Valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout %
Valuation (x)
P/E
Cash P/E
EV/EBITDA
EV/Sales
Price/Book Value
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
RoIC
Turnover Ratios
Debtors (Days)
Fixed Asset Turnover (x)
E: MOFSL Estimates
FY14
32.1
39.8
95.6
32.7
67.5
FY15
44.8
54.2
120.2
28.5
62.9
37.3
30.8
27.7
5.6
13.9
1.7
36.7
55.0
49.9
78
7.6
41.5
43.1
42.0
91
7.3
FY16
52.4
62.3
115.6
31.2
59.6
31.9
26.8
28.0
5.0
14.4
1.9
45.3
39.9
33.0
96
9.2
FY17
55.5
65.7
179.7
16.5
29.7
30.1
25.4
22.7
4.3
9.3
1.0
37.6
40.3
40.3
92
12.0
FY18
66.3
75.3
220.6
13.5
21.2
25.2
22.2
22.1
3.8
7.6
0.8
33.1
31.2
35.3
112
10.7
FY19
86.6
95.0
279.6
28.0
32.3
19.3
17.6
14.4
2.9
6.0
1.7
34.6
41.5
46.7
92
10.2
FY20E
85.7
102.3
344.7
17.1
20.0
19.5
16.3
13.4
2.5
4.8
1.0
27.4
32.0
37.7
105
8.8
(INR M)
FY21E
97.4
117.7
418.8
19.5
20.0
17.1
14.2
11.0
2.2
4.0
1.2
25.5
30.8
38.5
100
7.9
Cash Flow Statement
Y/E March
CF from Operations
Cash for Working Capital
Net Operating CF
Net Purchase of FA
Free Cash Flow
Net Purchase of Invest.
Net Cash from Invest.
Proc. from equity issues
Proceeds from LTB/STB
Dividend Payments
Cash Flow from Fin.
Exchange difference
Net Cash Flow
Opening Cash Bal.
Add: Net Cash
Closing Cash Bal.
E: MOFSL Estimates
FY14
9,827
-1,408
8,420
2,850
11,269
-1,047
1,803
0
-1,331
-6,356
-7,686
-2,141
395
1,194
395
1,589
FY15
10,112
-922
9,190
-1,845
7,345
816
-1,029
0
957
-5,931
-4,974
-2,767
420
1,589
420
2,009
FY16
12,226
-936
11,290
-1,141
10,149
700
-441
69
-1,721
-6,516
-8,167
-2,657
24
2,009
24
2,034
FY17
14,570
1,606
16,176
-754
15,422
-8,756
-9,510
4
-469
-1,888
-2,353
-2,552
1,761
2,034
1,854
3,794
FY18
15,779
-3,760
12,019
-982
11,037
-3,624
-4,606
3
-545
-3,534
-4,076
-3,498
-161
3,794
-244
3,632
FY19
21,764
-3,062
18,702
-1,531
17,171
-5,907
-7,438
3
-605
-5,340
-5,942
-4,804
518
3,632
568
4,149
FY20E
19,797
-4,251
15,546
-5,531
10,015
4,498
-1,032
0
0
-3,598
-3,598
-5,035
5,881
4,149
5,879
10,028
(INR M)
FY21E
23,344
-848
22,496
-6,483
16,013
2,847
-3,636
0
0
-4,093
-4,093
-5,836
8,932
10,028
8,931
18,959
4 December 2019
7
 Motilal Oswal Financial Services
L&T Infotech
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
> - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In
case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days,the Research Analyst shall within following 30 days take appropriate measures to make the recommendation
consistent with the investment rating legend.
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 - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National Stock Exchange of India Ltd. (NSE)
and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited
(CDSL) National Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance Regulatory & Development Authority of India (IRDA) as
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Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the website at
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Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific
recommendations and views expressed by research analyst(s) in this report.
Disclosures:
Disclosure of Interest Statement
Analyst ownership of the stock
L&T Infotech
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.
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For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities and Futures Commission (SFC) pursuant to the Securities and
Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal Oswal Financial Services Limited(SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong)
Private Limited for distribution of research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity to which this document relates is only available
to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian
Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S:
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition MOFSL is not a registered
investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the
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registered broker-dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.
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rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research analyst account.
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In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets services license and an exempt financial adviser in Singapore,
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The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any
form, without prior written consent. This report and information herein is solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments.
Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be
suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient.
Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should
consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be suitable for all investors. Certain transactions including those involving futures, options, another derivative products as
well as non-investment grade securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions contained in this
document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior
notice. The Company reserves the right to make modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from time to time, effect or have
effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to perform investment banking or other services for, or solicit investment banking or other business from, any
company referred to in this report. Each of these entities functions as a separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that
is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the views expressed therein. This document is being supplied to you
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Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263; Website
www.motilaloswal.com.
CIN No.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance
Corporate Agent: CA0579; PMS:INP000006712. Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth
Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance
Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group
company of MOFSL. Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no assurance or guarantee of the returns. Investment in
securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National Company Law Tribunal, Mumbai Bench.
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