22 May 2019
4QFY19 Results Update | Sector: Financials
IndusInd Bank
Buy
BSE SENSEX
39,110
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
11,738
IIB IN
Concerns abating; marching toward ‘business as usual’
600
IIB reported PAT of INR3.6b (our estimate: INR5.3b) in 4QFY19, affected by
915 / 13.1
higher provisions of INR15.6b (INR11.2b toward IL&FS). NII growth
2038 / 1334
-11/-13/-33
moderated to 11% YoY led by interest reversal of INR1.5b, while the NIM
3459
shrank to 3.59% (3.84% without interest reversals).
For FY19,
NII/PPoP grew
85.0
CMP: INR1,518
TP: INR1,900(+25%)
Financials & Valuations (INR b)
Y/E MARCH
FY19 FY20E
NII
88.5
135.2
OP
80.9
120.5
NP
33.0
63.4
NIM (%)
4.0
4.7
EPS (INR)
54.9
96.8
EPS Gr. (%)
-8.8
76.3
BV/Sh. (INR)
439.5 547.8
ABV/Sh. (INR)
413.4 526.5
RoE (%)
13.3
19.5
RoA (%)
1.3
2.0
Valuations
P/E (X)
27.6
15.7
P/BV (X)
3.5
2.8
P/ABV (X)
3.7
2.9
FY21E
174.6
157.3
86.6
4.7
122.5
26.6
658.5
635.6
20.4
2.1
12.4
2.3
2.4
18%/22%, while PAT declined 8.5% YoY to INR33b.
Total income increased 18% YoY, led by healthy other income growth of 29%
YoY. Core fees rose 28% YoY, led by forex income and loan processing fees.
Opex growth (+19% YoY) was slightly higher, leading to PPoP growth of 17%
YoY. IIB guided for a C/I ratio improvement of 150bp to 42% over FY20.
Loan growth stood at 29% YoY, led by robust traction across both corporate
and consumer portfolios. The share of retail loans in total book stands at
39% (52% incl. MFI & business banking). Deposit growth, too, picked up
sharply to 29% YoY (11% QoQ), driven by healthy accretion across CA, SA
and term deposits.
GNPA/NNPA almost doubled sequentially to INR39.5b/INR22.5b, as fresh
slippages spiked up to INR36.9b with IIB downgrading its IL&FS exposure of
INR30b. GNPA ratio, thus, increased to 2.1% (+97bp), while PCR declined by
466bp, resulting in an increase in the NNPA ratio to 1.21% (+62bp). IIB sold
INR1.85b of loans to ARCs, while restructured advances stood at 9bp. The
bank’s exposure toward stress accounts stands at 1.9% of total loans (fund
based + non-fund based), while SMA-2 book stands at 0.3% (INR6.4b).
Other highlights:
(1) CASA ratio moderated 50bp QoQ to 43.1%. (2)
Structured finance fee forms only 7% of total fee, and IIB guided for
continued strength in fee income. (3) IIB opened 107 branches in the
quarter, and aims to reach 2,000 branches by end-FY20.
Valuation and view:
IIB has accelerated its provisions toward the infra group
and disclosed total fund + non-fund exposure of 1.9% toward other
potentially stressed groups. The bank has achieved healthy coverage on its
infra exposure, and also has healthy collateralization levels on the stressed
exposure (140%), which will help limit credit cost during FY20 (guidance of
60bp). Merger with BHAFIN will strengthen the earnings profile and further
boost the return ratios. We conservatively factor in higher credit cost of
100/80bp over FY20/21, resulting in an 8%/3% cut in our FY20/21 earnings
estimates. We, nevertheless, estimate IIB to deliver FY20/21 RoA of
2.0%/2.1% and value the stock at INR1,900 (3x FY21E ABV).
Research Analyst: Nitin Aggarwal
(Nitin.Aggarwal@MotilalOswal.com); +91 22 6129 1542 |
Parth Gutka
(Parth.Gutka@motilaloswal.com); +91 22 6129 1567
Alpesh Mehta
(Alpesh.Mehta@MotilalOswal.com); +91 22 6129 1526 |
Himanshu Taluja
(Himanshu.Taluja@motilaloswal.com); +91 22 6129 1544
Yash Agarwal
(Yash.Agarwal@motilaloswal.com); +91 22 6129 1571
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
IndusInd Bank
Quarterly Performance
Net Interest Income
% Change (YoY)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (YoY)
Provisions
Profit before Tax
Tax
Net Profit
% Change (YoY)
Operating Parameters
Deposit Growth (%)
Loan Growth (%)
Deposit (INR b)
Loan (INR b)
Asset Quality
Gross NPA (INR b)
Gross NPA (%)
Net NPA (INR b)
Net NPA (%)
PCR (%)
1Q
17,741
30.8
11,673
29,413
13,528
15,885
28.8
3,100
12,786
4,420
8,365
26.5
31.4
24.3
1,337
1,164
12.7
1.1
5.1
0.4
60.0
FY18
2Q
18,210
24.7
11,876
30,086
13,751
16,335
27.5
2,938
13,398
4,597
8,801
25.0
25.9
24.5
1,414
1,232
13.5
1.1
5.4
0.4
60.1
3Q
18,948
20.0
11,868
30,816
14,169
16,647
22.1
2,362
14,285
4,923
9,362
24.7
22.5
25.1
1,461
1,285
15.0
1.2
5.9
0.5
60.5
4Q
20,076
20.4
12,085
32,161
14,467
17,694
12.5
3,356
14,338
4,808
9,531
26.8
19.8
28.2
1,516
1,450
17.0
1.2
7.5
0.5
56.3
1Q
21,224
19.6
13,016
34,240
15,129
19,111
20.3
3,500
15,611
5,254
10,357
23.8
18.8
29.4
1,589
1,507
17.4
1.2
7.6
0.5
56.2
FY19
2Q
22,033
21.0
13,173
35,206
15,281
19,924
22.0
5,903
14,022
4,819
9,203
4.6
18.9
32.4
1,682
1,631
17.8
1.1
7.9
0.5
55.8
FY18
3Q
22,881
20.8
14,689
37,569
16,400
21,170
27.2
6,067
15,103
5,253
9,850
5.2
20.3
34.7
1,757
1,732
19.7
1.1
10.3
0.6
47.7
4Q
22,324
74,974
11.2
23.7
15,590
47,501
37,914 1,22,475
17,237
55,914
20,677
66,561
16.9
22.1
15,607
11,754
5,070
54,807
1,469
18,747
3,601
36,060
-62.2
25.7
28.5
28.6
1,949
1,864
39.5
2.1
22.5
1.2
43.0
19.8
28.2
1,516
1,450
17.0
1.2
7.5
0.5
56.3
(INR m)
FY19 FY19E
4Q
88,462 24,037
18.0
19.7
56,467 15,174
1,44,929 39,211
64,047 16,635
80,882 22,576
21.5
27.6
31,077 14,780
49,806 7,796
16,795 2,535
33,011 5,261
-8.5 -44.8
28.5
28.6
1,949
1,864
39.5
2.1
22.5
1.2
43.0
22.0
32.0
1,850
1,913
V/S
Est
-7%
-8.5
3%
-3%
4%
-8%
-10.7
6%
-35%
-42%
-32%
-17.4
6.5
-3.4
5%
-3%
21.2 86%
1.1
1.0
10.7 110%
0.6
0.7
49.5 -6.5
23 May 2019
2
 Motilal Oswal Financial Services
IndusInd Bank
Exhibit 1: Quarterly Snapshot (INRb)
FY17
INR m
Profit and Loss
Net Interest Income
Other Income
Trading profits
Others (Ex non-core)
Total Income
Operating Expenses
Employee
Others
Operating Profits
Core Operating Profits
Provisions
PBT
Taxes
PAT
Balance Sheet (INR b)
Loans
Investments
Deposits
CASA Deposits
of which Savings
Current
Borrowings
Total Assets
Risk Weighted Assets
Asset Quality (INR b)
GNPA
NNPA
Ratios
Asset Quality (%)
GNPA
NNPA
PCR (Cal.)
Business Ratios (%)
Fees to Total Income
Cost to Core Income
Tax Rate
CASA (Reported)
Loan/Deposit
CAR
Tier I
Profitability Ratios (%)
Yield on loans
Yield On Investments
Yield on funds
Cost of deposits
Cost of funds
Spreads
Margins
RoA
RoE
3Q
15,784
10,168
1,320
8,848
25,952
12,319
3,940
8,378
13,633
12,314
2,169
11,465
3,959
7,506
1,028
353
1,192
442
252
190
203
1,671
1,318
9.7
4.0
FY17
3Q
0.9
0.4
58.8
34.1
50.0
34.5
37.0
86.2
15.3
14.7
11.7
6.9
10.4
6.4
5.3
5.1
4.0
1.9
15.7
4Q
0.9
0.4
58.4
34.6
49.0
34.2
36.9
89.3
15.3
14.7
11.4
7.2
10.2
6.1
5.2
5.0
4.0
1.7
15.1
1Q
1.1
0.4
60.0
33.1
49.2
34.6
37.8
87.1
16.2
15.7
11.5
7.4
10.3
6.2
5.3
4.9
4.0
1.9
16.2
2Q
1.1
0.4
60.1
33.7
48.5
34.3
42.3
87.1
15.6
15.1
11.3
7.3
9.1
5.9
5.1
4.0
4.0
1.9
16.5
4Q
16,675
12,113
2,150
9,963
28,788
13,065
3,943
9,122
15,722
13,572
4,301
11,421
3,905
7,516
1,131
367
1,266
466
270
196
225
1,786
1,435
10.5
4.4
1Q
17,741
11,673
1,930
9,743
29,413
13,528
4,222
9,306
15,885
13,955
3,100
12,786
4,420
8,365
1,164
421
1,337
505
316
189
274
1,907
1,452
12.7
5.1
2Q
18,210
11,876
1,750
10,126
30,086
13,751
4,450
9,300
16,335
14,585
2,938
13,398
4,597
8,801
1,232
421
1,414
598
402
196
236
1,950
1,561
13.5
5.4
FY18
3Q
1.2
0.5
60.5
34.9
47.7
34.5
42.9
88.0
15.8
15.3
11.0
6.8
9.3
5.9
5.0
4.2
4.0
2.0
17.0
4Q
1.2
0.5
56.3
34.6
46.4
33.5
44.0
95.6
15.0
14.6
11.1
6.9
9.1
6.0
5.1
4.0
4.0
1.9
16.6
1Q
1.2
0.5
56.2
34.0
46.0
33.7
43.4
94.8
14.7
14.3
11.2
6.7
9.4
6.2
5.4
3.9
3.9
1.9
17.3
2Q
1.1
0.5
55.8
34.6
44.7
34.4
43.6
97.0
14.3
13.9
11.4
7.1
9.5
6.5
5.6
3.8
3.8
1.6
14.9
FY18
3Q
18,948
11,868
1,100
10,768
30,816
14,169
4,600
9,569
16,647
15,547
2,362
14,285
4,923
9,362
1,285
462
1,461
626
422
204
234
2,007
1,594
15.0
5.9
4Q
20,076
12,085
950
11,135
32,161
14,467
4,535
9,932
17,694
16,744
3,356
14,338
4,808
9,531
1,450
501
1,516
667
459
208
383
2,216
1,732
17.0
7.5
1Q
21,224
13,016
1,370
11,646
34,240
15,129
4,620
10,509
19,111
17,741
3,500
15,611
5,254
10,357
1,507
527
1,589
690
477
213
370
2,289
1,820
17.4
7.6
2Q
22,033
13,173
990
12,183
35,206
15,281
4,582
10,699
19,924
18,934
5,903
14,022
4,819
9,203
1,631
501
1,682
734
511
223
428
2,483
1,940
17.8
7.9
FY19
3Q
1.1
0.6
47.7
33.7
46.1
34.8
43.6
98.6
14.2
13.8
11.5
7.1
9.6
6.7
5.8
3.8
3.8
1.6
15.4
4Q
2.1
1.2
43.0
37.4
47.2
29.0
43.1
95.7
14.2
13.7
11.3
6.9
9.5
6.8
5.9
3.6
3.6
0.6
5.5
FY19
3Q
22,881
14,689
2,030
12,659
37,569
16,400
4,521
11,879
21,170
19,140
6,067
15,103
5,253
9,850
1,732
537
1,757
765
500
265
445
2,562
2,019
19.7
10.3
4Q
22,324
15,590
1,400
14,190
37,914
17,237
4,812
12,424
20,677
19,277
15,607
5,070
1,469
3,601
1,864
593
1,949
841
545
296
473
2,778
2,145
39.5
22.5
Variation (%)
YoY
QoQ
11
29
47
27
18
19
6
25
17
15
365
-65
-69
-62
29
18
29
26
19
42
24
25
24
-2
6
-31
12
1
5
6
5
-2
1
157
-66
-72
-63
8
10
11
10
9
12
6
8
6
132
101
202
118
Variation (bps)
YoY
QoQ
93
97
70
62
-1,322 -466
280
85
-455
-86
6
-87
-88
17
3
45
82
83
-38
-38
-130
-1,110
373
106
-580
-43
-291
-3
-8
-27
-14
-13
6
11
-24
-24
-106
-998
23 May 2019
3
 Motilal Oswal Financial Services
IndusInd Bank
Exhibit 2: Quarterly performance v/s expectation
Y/E March
Interest Income
Interest Expense
Net Interest Income
% Change (Y-o-Y)
Other Income
Total Income
Operating Expenses
Operating Profit
% Change (Y-o-Y)
Other Provisions
Profit before Tax
Tax Provisions
Net Profit
% Change (Y-o-Y)
4QFY19A
59,914
37,591
22,324
11
15,590
37,914
17,237
20,677
17
15,607
5,070
1,469
3,601
-62
4QFY19E
57,991
33,955
24,037
20
15,174
39,211
16,635
22,576
28
14,780
7,796
2,535
5,261
-45
V/S our Est
3
11
-7
3
-3
4
-8
6
-35
-42
-32
Comments
Miss on NII due to higher interest reversals
Beat on other income led by robust fee income
Slightly higher opex led to miss on opex
Provisions were higher than expected due to IL&FS provisioning
Higher provisions led to PAT miss
Source: Company, MOSL
Strong loan growth and CASA traction continues
CASA growth continues to
be driven by CA (42% YoY)
and SA growth (19% YoY)
NIM came in at 3.59% (v/s 3.83% in 3QFY19). NIM was impacted by interest
reversals of INR1.53b pertaining to IL&FS.
Loans grew by 28.6% YoY (7.6% QoQ), driven by 30% YoY growth in corporate
book and 27% YoY growth in consumer finance.
CASA deposits grew 26% YoY (9.8% QoQ), led by strong mobilization of CA
deposits (+42% YoY) and SA deposits (+18.7% YoY).
Yield on advances declined 27bp QoQ to 11.25%, while cost of deposits
increased 6bp QoQ to 6.8%. Overall cost of funds increased 11bp QoQ to 5.92%.
Yields in the corporate book declined by 53bp QoQ to 9.29%, while yields in
consumer finance book increased by 7bp QoQ to 14.05%.
CD ratio stood at 95.7% (95.6% in 4QFY18). Risk-weighted assets grew 6% QoQ.
Asset quality deteriorates; PCR declines significantly
GNPA ratio increased to 2.1% (up 97bp QoQ), while absolute GNPA doubled
sequentially to INR39.5b driven by downgrade of IL&FS amounting to INR30b.
Fresh slippages stood at INR36.9b led by higher slippages in the corporate
portfolio (largely IL&FS), while recoveries/write-offs came in at INR17.1b.
IIB’s weighted average risk score (WARS) for vehicle finance declined to 1.75
(1.82 in 3QFY19).
PCR declined by 466bp QoQ to 43%, resulting in an increase in NNPA ratio by
62bp to 1.21%. Towards infra group, IIB is carrying a provision of 70% on holding
company (INR20b) and 25% towards SPVs (INR10b).
Slippages in the corporate/consumer finance portfolio came in at
INR32.3b/INR4.6b (v/s 4.6b/INR3.5b in 3QFY19). Retail GNPA increased
marginally to 1.18% (1.12% in 3QFY19).
Restructured book stood at 9bp v/s 11bp in 3QFY19.
23 May 2019
4
 Motilal Oswal Financial Services
IndusInd Bank
Exhibit 3: GNPAs in CFD increased sequentially to 1.18%
Segmental GNPA
1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19
CV
1.1
1.1
1.0
1.0
1.1
1.0
0.9
1.0
0.9
0.9
1.1
1.2
Utility
1.3
1.2
1.1
1.1
1.4
1.4
1.3
1.3
1.4
1.3
1.3
1.3
CE
1.4
1.4
1.2
1.2
1.1
1.0
1.1
1.1
0.9
0.7
0.8
0.7
3W
1.1
1.0
0.8
0.9
1.3
1.1
1.2
1.3
1.1
1.3
1.3
1.4
2W
3.2
3.6
3.6
3.5
3.6
3.6
3.8
3.8
3.7
3.9
3.6
3.8
Cars
0.5
0.5
0.8
0.7
0.7
0.7
0.6
0.7
0.7
0.8
0.8
0.8
LAP/HL/PL
0.7
0.7
0.8
0.9
1.0
0.4
0.6
0.6
0.4
0.6
0.4
0.4
Cards
1.7
1.7
1.6
1.3
1.2
1.5
1.7
1.6
1.8
1.8
1.9
1.9
GNPA in Consumer Finance Division
1.1
1.2
1.2
1.2
1.2
1.2
1.1
1.1
1.0
1.1
1.1
1.2
Source: Company, MOSL
Other highlights
Forex income (+47% YoY)
drove overall fee income
Growth in fee income (+27.5% YoY) was broad-based with growth in loan
processing fees (+44% YoY), forex income (+47% YoY), general banking fees
(+29% YoY), investment banking fees (+24% YoY) while third party distribution
fees came in at ~11% YoY.
RoRWA stood at 0.67% for the quarter, with RWA growing 6% QoQ in
comparison to balance sheet growth of 8% QoQ.
2QFY18
10,130
1,280
2,140
1,830
2,370
1,860
650
3QFY18
10,770
1,270
2,420
2,020
2,560
1,800
700
4QFY18
11,130
1,530
2,280
1,970
2,730
1,970
650
1QFY19
11,650
1,410
2,300
2,280
2,780
2,080
800
2QFY19
12,180
1,510
2,600
2,230
2,800
2,130
910
3QFY19
12,660
1,550
2,760
2,750
2,680
2,010
910
4QFY19
14,190
1,890
3,280
2,890
3,020
2,280
830
YoY (%)
27%
24%
44%
47%
11%
16%
28%
QoQ (%)
12%
22%
19%
5%
13%
13%
-9%
Exhibit 4: Fees grew 27% YoY led by strong traction in loan processing fees and forex income
Fee based Income
Trade Fees (LC, BG, Remittances)
Processing Fees and other charges
Fx Clients
Third Party Distribution fees
Investment banking fees
General banking/other income
Source: Company, MOSL
23 May 2019
5
 Motilal Oswal Financial Services
IndusInd Bank
4QFY19 analyst meet highlights
Balance Sheet and P&L related
60% of the corporate book includes MFI and SME portfolio. Excluding them, the
corporate book is just 45%.
Only MFI book is above 5% of total loans.
The bank raised INR15b of AT-1 capital during the quarter.
IIB is focusing on long-tenor deposits.
On the SA deposits,
~15-20% of the total
saving deposits come from government deposits. Current deposits include some
proportion of lumpy deposits.
Road projects:
The bank does not see any challenge in this portfolio.
Exposure to real estate:
~60% of the book is real estate and the rest 40% is
commercial. In residential, large exposures toward lease rental discounting. On
commercial, it has exposure to 70 projects (well-spread portfolio).
The bank bought micro finance portfolio from BHAFIN.
In term deposits, the bank has consciously reduced the concentration of top 20
deposits and reducing ~2%-3% every year.
Around 42% of the total fee is corporate, 48% is retail and the rest 10% is from
trading and other income. Thus, the bank’s fee income is granular in nature.
Avg. corporate yield is 9.06%, excluding MFI business banking. While excluding
infra group (IL&FS), the avg. yield earned on corporate portfolio is 9.87%.
Bank has made improvement on the digital front and thus expects reduction in
C/I ratio by 150bp in FY20. Further, collaborated with 13-14 fin-techs cos.
Bank believes that another INR1b-1.5b provisioning may be required on holdco
exposure of IL&FS. This is in line with the credit cost guidance of 60bp for FY20.
Asset quality
SMA1 & SMA-2 book is INR6.4b. It includes 45 accounts and thus has no lumpy
exposures. SMA-1 is 0.32% of total loans while SMA-2 is 0.34% of total loans.
The bank’s total stressed exposure (NBFC, conglomerate, HFCs, Media, telecom)
is 1.9% of total loans. It includes both funded and non-funded exposures. The
consolidated security on these exposures is 140%, of which 60% of the security
is liquid and realizable.
ILFS exposures:
Total provision made during the quarter is INR11.24b (used
contingent provisions made over last two quarters). Further, made interest
reversal of INR1.53b.
LAP portfolio growth has slowed down.
There are total write-offs of INR10b during the quarter.
The bank expects strong recoveries on its exposure at SPV level. Expects to
recover 90-100% in one single highest exposure at SPV level.
The bank made debt swap transactions for land parcel in the past (JP deal). RBI
has revised the circular on the treatment of these land parcels and thus the
bank has made regulatory required provisions during the quarter.
Guidance/Others
Merger with BHAFIN:
All regulatory approvals are in place and awaiting final
NCLT order as courts are on vacation currently.
Acquired 1m new customers during the quarter.
Opened 107 new bank branches in this quarter.
23 May 2019
6
 Motilal Oswal Financial Services
IndusInd Bank
The bank launched wealth management business named PIONEER.
Hiring new employees to look at NRI business as well.
92%/80% of the total transactions by volume/value were done digitally.
Loan growth and fee growth to remain at mid-20% levels.
C/I at 42%.
Credit cost below 60bp.
NIMs to be restored at 3.85%-3.9%.
The PCR target is to reach 60%.
Exhibit 6: One-year forward P/E
Max (x)
-1SD
4.4
3.5
41.0
33.0
25.0
2.1
2.6
23.9
18.2
7.7
12.5
13.9
P/E (x)
Min (x)
Avg (x)
+1SD
Max (x)
-1SD
33.4
Exhibit 5: One-year forward P/B
5.2
4.2
3.2
2.2
1.2
0.2
2.8
1.2
P/B (x)
Min (x)
Avg (x)
+1SD
17.0
9.0
1.0
Note: Chart is for IndusInd standalone
Source: Company, MOSL
Note: Chart is for IndusInd standalone
Source: Company, MOSL
Valuation and view
Strong core profitability, higher CASA ratio (best amongst mid-sized private
banks), healthy capitalization (Tier 1 ratio of ~14%) are key positives. We expect
IIB to report a strong 30%+ loan CAGR over FY19-FY21E driven by multiple
products, new product addition and market share gains.
Overall, we expect underlying growth in the consumer finance division to
continue led by broad-based growth in vehicle finance division and new product
additions. IIB is already witnessing healthy growth in credit cards. Corporate
loan growth is likely to be opportunistic (based on spreads available). IIB has
levers like less sell-down of loans, selectively doing project loans, etc.
NIMs, though, likely to remain under pressure in the short term are expected to
improve in the medium term, led by (a) higher yielding MFI book from BHAFIN,
(b) higher share of retail liabilities, and (c) likely improvement in loan mix
toward high-yielding CFD. Close-to-customer business model of CV financing has
helped maintain strong asset quality performance, despite facing tough times.
IIB has accelerated their provisions towards infra group and has disclosed total
fund + non-fund exposure of 1.9% towards other potentially stressed groups.
The bank has achieved healthy coverage on its infra exposure and has healthy
collateralization levels on the stressed exposure (140%) which will help limit
credit cost during FY20E (guidance of 60bp). Merger with BHAFIN will
strengthen the earnings profile and further boost return ratios. We
conservatively factor in higher credit cost of 100/80bp over FY20/21E resulting
in 8%/3% cut in our FY20/21e earnings. We nevertheless estimate IIB to deliver
FY20/21e RoA of 2.0%/2.1% and value the stock at INR1,900 (3x FY21E ABV).
23 May 2019
7
 Motilal Oswal Financial Services
IndusInd Bank
Exhibit 7: We cut our FY19/20 earnings by 8%/4% to factor in higher credit cost
INR B
Net Interest Income
Other Income
Total Income
Operating Expenses
Operating Profits
Provisions
PBT
Tax
PAT
Loans
Deposits
Margins (%)
Credit Cost (%)
RoA (%)
RoE (%)
BV
ABV
EPS
Old Estimates
FY20
FY21
135.6
176.7
81.3
98.3
216.9
275.1
91.1
113.4
125.8
161.6
20.8
25.6
105.0
136.0
35.7
46.2
69.3
89.8
2,640
3,300
2,275
2,799
4.68
4.81
0.75
0.75
2.22
2.28
20.6
21.4
541.0
656.6
529.2
644.3
99.4
127.4
New estimates
FY20
FY21
135.2
174.6
75.1
93.9
210.3
268.5
89.9
111.2
120.5
157.3
24.4
26.0
96.0
131.3
32.7
44.6
63.4
86.6
2,495
3,169
2,475
3,168
4.67
4.71
1.00
0.80
1.97
2.11
19.5
20.4
547.8
658.5
526.5
635.6
96.8
122.5
Variation (%/bps)
FY20
FY21
-0.3
-1.2
-7.6
-4.5
-3.0
-2.4
-1.3
-2.0
-4.2
-2.7
17.4
1.8
-8.5
-3.5
-8.5
-3.5
-8.5
-3.5
-5.5
-4.0
8.8
13.2
-1.3
-10.0
25.0
5.0
-24.5
-17.1
-107.2
-97.0
1.3
0.3
-0.5
-1.4
-2.6
-3.8
Source: MOSL, Company
Exhibit 8: DuPont Analysis: Return ratios to show steady improvement driven by merger with BHAFIN
Y/E March
Interest Income
Interest Expense
Net Interest Income
Core Fee Income
Trading and others
Non-Interest income
Total Income
Operating Expenses
Employee cost
Others
Operating Profit
Core operating Profits
Provisions
NPA
Others
PBT
Tax
RoA
Leverage (x)
RoE
FY15
9.75
6.31
3.44
2.45
0.12
2.56
6.00
2.89
0.99
1.90
3.12
3.00
0.39
0.34
0.05
2.73
0.92
1.80
10.5
19.0
FY16
9.20
5.61
3.59
2.50
0.12
2.62
6.21
2.92
0.98
1.93
3.29
3.17
0.53
0.40
0.14
2.76
0.94
1.82
9.1
16.6
FY17
9.04
5.24
3.80
2.44
0.17
2.62
6.42
3.00
0.95
2.05
3.42
3.25
0.68
0.44
0.24
2.74
0.94
1.80
8.5
15.3
FY18
8.63
4.89
3.75
2.19
0.18
2.37
6.12
2.79
0.89
1.90
3.33
3.14
0.59
0.45
0.14
2.74
0.94
1.80
9.1
16.5
FY19
8.91
5.37
3.54
2.09
0.17
2.26
5.80
2.56
0.78
1.85
3.24
3.06
1.24
1.24
0.00
1.99
0.67
1.32
10.0
13.3
FY20E
9.63
5.42
4.21
2.17
0.16
2.34
6.54
2.80
0.98
1.82
3.75
3.58
0.76
0.68
0.08
2.99
1.02
1.97
9.9
19.5
FY21E
9.55
5.30
4.25
2.13
0.15
2.29
6.54
2.71
0.94
1.77
3.83
3.68
0.63
0.55
0.08
3.20
1.09
2.11
9.7
20.4
Source: Company, MOSL
23 May 2019
8
 Motilal Oswal Financial Services
IndusInd Bank
Story in Charts
Exhibit 9: NIM shrank to 3.59%
NIM
Exhibit 10: Fee income to average assets increased by 12bp
Fee Inc to avg. assets
Source: MOSL, Company
Source: MOSL, Company
Exhibit 11: Deposit growth stood strong at ~29% YoY
Deposits (INR b)
31
39
38 36
31
YoY Gr (%)
29
26 23
20 19 19 20
Exhibit 12: CASA growth stood healthy at ~26% YoY
CASA Ratio
YoY CASA Gr (%)
25
22 22 25
Source: MOSL, Company
Source: MOSL, Company
Exhibit 13: Loan growth was strong at ~29% YoY
Loans (INR b)
31
23
29 29 30 26
28
YoY Gr (%)
24 25
28 29
32
35
29
Exhibit 14: Loan mix remains stable (~61 towards corporate)
CFD (% of loans)
CCB (% of loans)
25
24
58 59 58 59 59 59 58 60 60 60 59 61 60 61 61 61
42 41 42 41 41 41 42 40 40 40 41 39 40 39 39 39
Source: MOSL, Company
Source: MOSL, Company
23 May 2019
9
 Motilal Oswal Financial Services
IndusInd Bank
Exhibit 15: Annualized slippage rate increased to 8.5%
Slippages (INR b)
Slippage Ratio (%)
8.5
Exhibit 16: PCR declined significantly QoQ at 43%
GNPA (%)
NNPA (%)
PCR (%)
1.6 1.6 1.4 1.3 1.4
0.9 1.3
2.9 2.6
1.7 1.3
2.7
1.3 1.1
2.0
Source: MOSL, Company
Source: MOSL, Company
Exhibit 17: Restructured book stable at 9bp
Exhibit 18: Credit costs increased sharply during the quarter
Credit Cost (annualized in bp)
432
95 75 72
60 62 56 48 72
52 64 70 70 63 63 60
Source: MOSL, Company
Source: MOSL, Company
Exhibit 19: Tier-1 capital remains strong despite healthy growth
Tier 1
Exhibit 20: Bank added 107 branches during the quarter
SA Ratio
Branch Nework
Source: MOSL, Company
Source: MOSL, Company
23 May 2019
10
 Motilal Oswal Financial Services
IndusInd Bank
Financials and Valuations
Income Statement
Y/E March
Interest Income
Interest Expense
Net Interest Income
Growth (%)
Non-Interest Income
Total Income
Growth (%)
Operating Expenses
Pre Provision Profits
Growth (%)
Core PPP
Growth (%)
Provisions (exc. tax)
PBT
Tax
Tax Rate (%)
PAT
Growth (%)
Balance Sheet
Y/E March
Equity Share Capital
Reserves & Surplus
Net Worth
Deposits
Growth (%)
of which CASA Dep.
Growth (%)
Borrowings
Other Liabilities & Prov.
Total Liabilities
Current Assets
Investments
Growth (%)
Loans
Growth (%)
Fixed Assets
Other Assets
Total Assets
Asset Quality
GNPA
NNPA
GNPA Ratio
NNPA Ratio
Slippage Ratio
Credit Cost
PCR (Exc. Tech. write off)
FY15
96,920
62,717
34,203
18.3
25,480
59,683
24.8
28,701
30,982
19.3
29,824
20.9
3,891
27,092
9,155
33.8
17,937
27.4
FY16
1,15,807
70,641
45,166
32.1
32,969
78,135
30.9
36,721
41,414
33.7
39,892
33.8
6,722
34,693
11,828
34.1
22,864
27.5
FY17
1,44,057
83,431
60,626
34.2
41,715
1,02,341
31.0
47,831
54,510
31.6
51,741
29.7
10,913
43,597
14,918
34.2
28,679
25.4
FY18
1,72,807
97,833
74,974
23.7
47,501
1,22,475
19.7
55,914
66,561
22.1
62,923
21.6
11,754
54,807
18,747
34.2
36,060
25.7
FY19
2,22,612
1,34,150
88,462
18.0
56,467
1,44,929
18.3
64,047
80,882
21.5
76,517
21.6
31,077
49,806
16,795
33.7
33,011
-8.5
FY20E
3,09,564
1,74,336
1,35,228
52.9
75,101
2,10,330
45.1
89,872
1,20,458
48.9
1,15,219
50.6
24,416
96,041
32,654
34.0
63,387
92.0
(INR m)
FY21E
3,92,192
2,17,601
1,74,592
29.1
93,877
2,68,468
27.6
1,11,163
1,57,306
30.6
1,51,020
31.1
26,043
1,31,263
44,629
34.0
86,633
36.7
FY15
5,295
1,01,010
1,06,305
7,41,344
22.5
2,52,996
28.5
2,06,181
63,900
11,17,869
1,07,791
2,28,780
6.1
6,87,882
24.8
11,576
81,840
11,17,869
FY16
5,950
1,70,872
1,76,822
9,30,001
25.4
3,27,240
29.3
2,21,559
72,050
14,00,570
1,01,119
3,12,143
36.4
8,84,193
28.5
12,553
90,561
14,00,570
FY17
5,982
2,00,328
2,06,309
12,65,722
36.1
4,66,460
42.5
2,24,537
89,764
17,86,484
1,86,283
3,67,021
17.6
11,30,805
27.9
13,352
89,023
17,86,484
FY18
6,002
2,32,268
2,38,271
15,16,392
19.8
6,67,293
43.1
3,82,891
78,563
22,16,262
1,32,159
5,00,767
36.4
14,49,537
28.2
13,388
1,20,412
22,16,262
FY19
6,027
2,60,833
2,66,860
19,48,679
28.5
8,49,624
27.3
4,73,211
89,444
27,78,194
1,47,834
5,92,662
18.4
18,63,935
28.6
17,100
1,56,664
27,78,194
FY20E
7,074
3,82,476
3,89,550
24,74,822
27.0
10,64,174
25.3
6,49,827
1,35,521
36,49,720
1,77,793
7,40,827
25.0
24,95,068
33.9
21,486
2,14,547
36,49,720
FY21E
7,074
4,60,787
4,67,861
31,67,773
28.0
13,39,968
25.9
7,44,301
1,82,953
45,62,887
2,22,597
8,96,401
21.0
31,68,736
27.0
25,353
2,49,800
45,62,887
5,629
2,104
0.8
0.3
1.43
0.55
62.6
7,768
3,216
0.9
0.4
1.08
0.64
58.6
10,549
4,388
0.9
0.4
1.42
0.70
58.4
17,049
7,457
1.2
0.5
2.58
0.70
56.3
39,474
22,483
2.1
1.2
3.25
1.88
43.0
49,305
21,534
2.0
0.9
1.90
1.00
56.3
55,171
23,162
1.7
0.7
1.60
0.80
58.0
23 May 2019
11
 Motilal Oswal Financial Services
IndusInd Bank
Financials and Valuations
Ratios
Y/E March
Yield and Cost Ratios (%)
Avg. Yield-Earning Assets
Avg. Yield on loans
Avg. Yield on Investments
Avg. Cost-Int. Bear. Liab.
Avg. Cost of Deposits
Interest Spread
Net Interest Margin
Capitalisation Ratios (%)
CAR
Tier I
Tier II
Business and Efficiency Ratios (%)
Loans/Deposit Ratio
CASA Ratio
Cost/Assets
Cost/Total Income
Cost/Core Income
Int. Expense/Int. Income
Fee Income/Total Income
Non Int. Inc./Total Income
Emp. Cost/Total Expense
Investment/Deposit Ratio
Profitability Ratios and Valuations
RoE
RoA
RoRWA
Book Value (INR)
Growth (%)
Price-BV (x)
Adjusted BV (INR)
Price-ABV (x)
EPS (INR)
Growth (%)
Price-Earnings (x)
Dividend Per Share (INR)
Dividend Yield (%)
FY15
10.4
12.5
7.5
7.4
7.7
2.7
3.9
FY16
10.0
11.8
7.2
6.7
6.8
3.1
4.0
FY17
9.7
11.4
7.2
6.3
6.3
3.3
4.2
FY18
9.2
10.6
6.6
5.8
5.8
3.4
4.2
FY19
9.5
10.7
7.3
6.2
5.9
3.6
4.0
FY20E
10.3
11.7
7.1
6.3
5.9
4.4
4.7
FY21E
10.2
11.5
7.0
6.2
5.8
4.3
4.7
12.1
11.2
0.9
15.5
14.9
0.6
15.3
14.7
0.6
15.0
14.6
0.5
14.2
13.7
0.5
14.0
13.7
0.4
13.2
13.0
0.3
92.8
34.1
2.6
48.1
49.0
64.7
40.8
42.7
34.2
30.9
95.1
35.2
2.6
47.0
47.9
61.0
40.2
42.2
33.7
33.6
89.3
36.9
2.7
46.74
48.0
57.9
38.1
40.8
31.8
29.0
95.6
44.0
2.5
45.7
47.1
56.6
35.8
38.8
31.8
33.0
95.7
43.6
2.3
44.2
45.6
60.3
35.9
39.0
30.3
30.4
100.8
43.0
2.5
42.7
43.8
56.3
33.2
35.7
35.0
29.9
100.0
42.3
2.4
41.4
42.4
55.5
32.6
35.0
34.8
28.3
19.0
1.8
2.0
197.0
17.3
7.7
194.2
7.8
34.0
26.6
44.6
4.8
0.3
16.6
1.8
2.0
293.9
49.2
5.2
290.1
5.2
40.7
19.6
37.3
5.9
0.4
15.3
1.8
2.0
341.7
16.3
4.4
336.6
4.5
48.1
18.2
31.6
0.0
0.0
16.5
1.8
2.1
393.9
15.3
3.9
385.2
3.9
60.2
25.2
25.2
7.2
0.5
13.3
1.3
1.5
439.5
11.6
3.5
413.4
3.7
54.9
-8.8
27.6
8.8
0.6
19.5
2.0
2.3
547.8
24.7
2.8
526.5
2.9
96.8
76.3
15.7
9.8
0.6
20.4
2.1
2.5
658.5
20.2
2.3
635.6
2.4
122.5
26.6
12.4
11.8
0.8
23 May 2019
12
 Motilal Oswal Financial Services
IndusInd Bank
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
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 - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading
Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and National Commodity
& Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National Securities Depository
Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance Regulatory &
Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate entities of Motilal Oswal Financial Services Limited are available on the
website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
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. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from
MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or
use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong
Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act"
and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and
investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is intended for
distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional
investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document
relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule
15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order
to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities
International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public
appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL in
respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”, of
which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOSL has not received any compensation or other benefits from third party in connection with the research report
10 MOSL has not engaged in market making activity for the subject company
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 Motilal Oswal Financial Services
IndusInd Bank
The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies)
discussed herein or act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of
MOFSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature.
The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty,
representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The
report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as
customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed,
in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose
and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report
constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities
discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives,
financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this document
should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including
the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be
suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade securities - involve substantial
risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions
contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as
endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make modifications and
alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from time to time, effect
or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to perform investment
banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a separate, distinct and
independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already
available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the
views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other
person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of
or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject
MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category
of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. Neither the Firm, not its directors,
employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may
arise from or in connection with the use of the information.
The person accessing this information specifically agrees to exempt MOFSL or any of its affiliates or employees from, any
and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold
MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages,
expenses that may be suffered by the person accessing this information due to any
errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263; Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth Management
Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is a distributor of
Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. which is a
group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL. Research & Advisory
services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no assurance or guarantee
of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance Officer: Name: Neeraj
Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.
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