19 March 2020
Update | Sector: Technology
Tech Mahindra
BSE SENSEX
28,870
S&P CNX
8,469
CMP: INR579
TP: INR820 (+42%)
So far, no material disruption!
Buy
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
985
559.5 / 7.7
846 / 550
-2/2/-2
2039
We hosted a call with TechM’s management to understand the initiatives being
TECHM IN
undertaken to minimize COVID-19 disruption. Key takeaways:
So far, business continuity is not materially disrupted
Financials Snapshot (INR b)
Y/E Mar
2020E 2021E 2022E
Sales
373.8 416.3 453.7
EBIT Margin (%)
12.3 12.3 13.3
PAT
43.7 47.7 55.6
EPS (INR)
49.6 54.2 63.2
EPS Gr. (%)
3.0
9.3 16.5
BV/Sh. (INR)
239.4 264.6 298.8
Ratios
RoE (%)
21.2 21.7 22.6
RoCE (%)
17.6 17.6 18.7
Payout (%)
44.3 46.1 39.6
Valuations
P/E (x)
12.0 11.0
9.4
P/BV (x)
2.5
2.2
2.0
EV/EBITDA (x)
8.8
7.7
6.4
Div Yield (%)
3.7
4.2
4.2
Shareholding pattern (%)
Dec-19 Sep-19 Dec-18
As On
Promoter
35.9
35.9
35.9
DII
13.1
14.4
12.9
FII
39.8
37.8
38.6
Others
11.3
12.0
12.5
FII Includes depository receipts
Stock Performance (1-year)
Tech Mahindra
Sensex - Rebased
So far, management does not see any material impact on delivery/operations.
However, given volatility of the situation, it is being closely monitored.
Clients are adapting to the current situation and waiving off standard terms of
contracts to allow employees to work from home so that business continuity is
not materially disrupted.
Almost all onsite resources are equipped with laptops to be able to work from
home. Among the offshore resources, 40-50% are equipped with laptops to
ensure business continuity, just in case if employees were to work from home.
BPO is one segment where facilitating work from home option is not very easy.
In BPO segment, company is spreading employees across floors and shifts to
avoid large gatherings.
Offices in China remains closed so far. They may re-start in a few days as the
situation in China is gradually improving. In Italy, people are working from
home and client projects have been running on track.
So far not witnessing any material slowdown in demand
920
840
760
680
600
It will take more time to assess if this is a long-term impact or a transient one.
Demand was impacted in China and Italy. Other than these two geographies,
there is no broad-based impact across any other customers as of now.
Traction in deal closures was good till the end of February. Customers were
willing to select and evaluate vendors through digital meetings. There has not
been a wide disruption yet.
Over the last couple of weeks, the company is noticing caution in discretionary
spend within 2-3 telecom accounts. Expect some of the network roll out
spends to witness slight delays. So far, it is not a broad-based trend.
Premature to conclude which all verticals will be impacted. Prima facie
understanding is that manufacturing clients will see some impact.
Retail, ENU and Transport verticals should see a meaningful impact. However,
TechM’s presence in these verticals is limited.
Despite the sharp interest rate cuts across economies and volatility in capital
markets, BFSI should deliver a good performance as the customer base of
TechM well is diversified across geographies and a large deal has been ramping
up in this vertical. Expect growth in BFSI in the near term.
Telecom as a vertical is very resilient. However, discretionary spends are higher
in upcycles. Spends in this vertical need to be watched out.
Research analyst – Sudheer Guntupalli –
(Sudheer.Guntupalli@MotilalOswal.com); +91225036 2749
Research analyst: Mohit Sharma
(Mohit.Sharma@MotilalOswal.com); +9122 6129 1531 /
Heenal Gada
(Heenal.Gada@MotilalOswal.com); +9122 2368 1805
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
Tech Mahindra
Ramp ups of recently won large deals are on track
Large part of AT&T deal already got ramped up in 3Q. Do not see any major
hiccups here. Large deal in Insurance is also on track. Despite the exposure to
APAC, no material delays are expected as of now.
Have flexibility on some operational parameters
Tightening the hiring process to ensure only critical resources are hired.
As of now, there is no thought process around reducing permanent headcount.
Have flexibility to reduce sub-con expenses in projects witnessing slowdown.
Utilizations are currently at 84%. This should remain in the range of 80%-84%
over the next few quarters.
Valuation and view: Valuations turned attractive post recent correction
We downgrade our FY21E EPS by ~5% as we (1) build in potential disruption due
to COVID-19 and associated events and (2) rebase our exchange rate
assumption from INR70.5/USD earlier to INR 72.5/USD.
After the recent steep correction, the stock is trading at 11x FY21E EPS.
Over most of FY07-20, one-year forward P/E multiple of the stock averaged
~13x. Our target price of INR820 implies 13x FY22E EPS.
Exhibit 1: Over most of FY07-20, one year forward P/E multiple of the stock averaged to ~13x
40
30
20
TechM 1yr fw PE
10
0
Source: Bloomberg, MOFSL
Exhibit 2: Revisions to estimates
Revised
INR/USD
USD Revenue - m
USD rev Gr.(%)
EBIDTA Margin (%)
EBIT Margin (%)
EPS - INR
FY21E
72.5
5,742
8.5
16.1
12.3
54.2
FY22E
72.5
6,258
9.0
16.8
13.3
63.2
FY21E
71.4
5,977
12.9
16.4
12.8
57.2
Earlier
FY22E
71.4
6,393
7.0
16.7
13.3
63.6
FY21E
1.6%
-3.9%
-435bp
-33bp
-55bp
-5.2%
Change
FY22E
1.6%
-2.1%
203bp
9bp
-2bp
-0.7%
Source: MOFSL, Company
19 March 2020
2
 Motilal Oswal Financial Services
Tech Mahindra
Exhibit 3: Operating metrics
2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20
Revenue by geography (%)
Americas
Europe
Rest of World
Vertical Split (%)
Telecom
Manufacturing
Tech | Media | Entertainment
BFSI
Retail | Transport | Logistics
Others
Onsite-offshore mix (%)
Onsite
Offshore
Client metrics
No. of active clients
% of repeat business
No. of Million $ clients
USD1m+
USD5m+
USD10m+
USD20m+
USD50m+
Client concentration (%)
Top client
Top 5 Clients
Top 6-10
Top 11-20
Headcount (end of period)
Software professionals
BPO
Sales and Support
Total
IT Attrition (LTM) (%)
IT Utilization (%)
IT Utilization (excluding trainees) (%)
Receivable Days (DSO)-Including Unbilled
Borrowings (USD m)
Cash and Cash Equivalent (USD m)
Capital Expenditure (USD m)
45.3
30
24.7
43.7
19
5.9
14.1
7.2
9.9
64.1
35.9
885
95
390
147
81
40
14
46.9
29.8
23.3
42.8
19.1
6.5
13.3
7.1
11.3
65.8
34.2
903
92.9
389
154
83
40
16
47.4
29.6
23.0
41.6
19.3
7.3
13.0
6.2
12.6
67.0
33.0
913
88.4
392
156
85
44
16
48.2
30
21.9
39.6
20.1
7.2
13.6
6.1
13.4
66.6
33.4
926
98.5
396
154
86
47
16
47.0
29.6
23.4
41.5
20.1
7.3
13.5
6.5
11.2
64.5
35.5
930
97.4
407
157
86
45
17
47.4
28.9
23.7
41.1
20.5
7
13.4
6.7
11.3
65.5
34.5
935
94.6
416
157
88
46
18
46.4
28.6
24.9
42.7
20.2
7.5
13.1
6.4
10.2
65.2
34.8
938
88.7
425
156
83
50
20
47.6
27.6
24.8
42
19.4
7.6
12.8
6.2
11.9
65.3
34.7
941
97.7
429
160
81
49
21
48.5
26.7
24.9
41.1
18
8.1
13.0
7
12.8
65.4
34.6
946
94.8
437
155
80
49
22
48.4
27.0
24.6
42.6
17.3
7.6
13.2
7.2
12.2
65.3
34.7
964
91.3
446
164
83
50
22
24.8
10.3
11.1
23.2
10
11.8
23.2
9.5
13
21.9
10.6
13.7
23.3
9.4
12.9
22.6
9
12.4
22.8
9.2
13.1
21.4
9.3
12.9
21.6
9.9
12.1
22.3
8.7
11.1
75,587 73,460 72,437 72,462 72,534 71,785 71,477 74,093 72,597 73,079
35,287 35,496 34,190 34,700 39,407 43,439 43,081 45,000 52,193 51,096
6,351
6,285
6,180
6,390
6,450
6,618
6,524
6,680
6,732
6,664
1,17,225 1,15,241 1,12,807 1,13,552 1,18,391 1,21,842 1,21,082 1,25,773 1,31,522 1,30,839
16
17
18
19
20
21
21
21
21
20
81
83
84
81
81
82
82
80
82
84
81
83
84
84
83
83
82
82
83
85
106
105
102
108
112
107
102
110
114
112
320.7
341.5
367.7
363.2
353.3
316
288.5
296.1
311.4
288.9
913.2
950.1 1192.9 1228.7 1089.8 1251.8 1401.4
1216 1066.5
1154
70.6
25.6
32.4
27.7
21.3
31.6
29.2
29.4
31.1
31.8
19 March 2020
3
 Motilal Oswal Financial Services
Tech Mahindra
Financials and valuations
Income Statement
Y/E March
Sales
Change (%)
Employee Cost
Other Expenses
Total Expenses
EBITDA
% of Net Sales
Depreciation
Interest
Other Income
PBT
Tax
Rate (%)
PAT
MI / Inc. from associates
PAT before EO
Change (%)
Effect of restructuring fees
PAT after RF before EO
Change (%)
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Minority Interest
Loans
Deferred Revenue
Amount pending invest.
Capital Employed
Assets
CWIP
Investments
Long term loans and adv
Deferred Tax Assets
Other non-current assets
Curr. Assets
Debtors
Cash & Bank Balance
Loans & Advances
Current Investments
Other Current Assets
Current Liab. & Prov
Net Current Assets
Application of Funds
2015
2,24,779
19.4
1,50,342
32,901
1,83,243
41,536
18.5
6,079
689
1,006
35,774
9,472
26.5
26,302
310
25,992
-3.5
0
25,992
0.6
2016
2,64,941
17.9
1,83,226
38,289
2,21,515
43,426
16.4
7,620
961
5,322
40,167
8,600
21.4
31,567
412
31,155
19.9
0
31,155
19.9
2017
2,91,408
10.0
2,05,661
43,904
2,49,565
41,843
14.4
9,781
1,286
6,836
37,612
9,785
26.0
27,827
357
27,470
-11.8
0
27,470
-11.8
2018
3,07,730
5.6
2,15,299
45,270
2,60,569
47,161
15.3
10,849
1,624
14,091
48,779
10,925
22.4
37,854
-136
37,990
38.3
0
37,990
38.3
2019
3,47,421
12.9
2,33,590
50,463
2,84,053
63,368
18.2
11,292
1,332
5,342
56,086
12,544
22.4
43,542
567
42,975
13.1
0
42,975
13.1
2020E
3,73,842
7.6
2,62,384
50,954
3,13,338
60,503
16.2
14,453
2,256
12,271
56,065
12,980
23.2
43,085
-630
43,715
1.7
0
43,715
1.7
2021E
4,16,280
11.4
2,92,101
57,228
3,49,329
66,950
16.1
15,824
2,108
13,740
62,759
15,690
25.0
47,069
-614
47,683
9.1
0
47,683
9.1
(INR M)
2022E
4,53,740
9.0
3,15,644
61,795
3,77,439
76,301
16.8
15,858
2,102
14,871
73,212
18,303
25.0
54,909
-656
55,565
16.5
0
55,565
16.5
(INR M)
2022E
4,356
2,56,434
2,60,790
4,949
38,918
0
12,304
3,16,961
76,325
1,341
14,246
44
7,074
40,963
2,98,797
1,03,145
54,447
32,931
62,729
45,545
1,21,829
1,76,968
3,16,961
2015
4,804
1,17,682
1,22,486
1,604
11,287
0
12,304
1,47,681
40,329
5,677
12,987
12,755
3,901
306
1,22,526
52,059
24,049
18,728
8,041
19,649
50,800
71,726
1,47,680
2016
4,839
1,38,824
1,43,663
2,034
15,564
0
12,304
1,73,565
43,446
6,294
13,244
16,766
5,575
294
1,49,451
57,705
12,056
17,084
39,772
22,834
61,505
87,946
1,73,565
2017
4,388
1,59,984
1,64,372
4,641
23,761
0
12,304
2,05,078
63,590
3,729
3,319
9
2,674
24,079
1,63,265
53,377
20,013
26,122
33,820
29,933
55,587
1,07,678
2,05,078
2018
4,417
1,84,011
1,88,428
5,091
28,931
0
12,304
2,34,754
74,318
2,399
14,364
52
5,766
26,403
1,81,070
64,979
19,661
21,123
45,231
30,076
69,618
1,11,452
2,34,754
2019
4,437
1,98,407
2,02,844
4,777
23,193
0
12,304
2,43,118
68,904
2,763
14,076
43
6,091
26,934
2,15,658
69,586
20,427
29,930
65,899
29,816
91,351
1,24,307
2,43,118
2020E
4,356
2,04,606
2,08,962
4,949
39,102
0
12,304
2,65,317
76,006
1,341
7,246
44
7,074
40,963
2,28,973
82,247
17,187
28,009
62,729
38,801
96,330
1,32,644
2,65,317
2021E
4,356
2,26,579
2,30,935
4,949
39,010
0
12,304
2,87,198
76,182
1,341
10,746
44
7,074
40,963
2,56,415
92,571
30,641
29,555
62,729
40,919
1,05,567
1,50,848
2,87,198
19 March 2020
4
 Motilal Oswal Financial Services
Tech Mahindra
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Diluted 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)
Leverage Ratio
Debt/Equity Ratio(x)
Cash Flow Statement
Y/E March
CF from Operations
Change in Working Capital
Other adjustments
Net Operating CF
Net Purchase of FA
Free Cash Flow
Net Purchase of Invest.
Net Cash from Invest.
Inc./(Dec) in Equity
Proceeds from LTB/STB
Dividend Payments
Cash Flow from Fin.
Net Cash Flow
Opening Cash Balance
Add: Net Cash
Closing Cash Balance
E: MOFSL Estimates
2015
30.2
29.6
36.1
142.2
6.0
20.3
20.1
16.5
11.7
2.2
4.2
1.0
24.5
20.5
30.0
78
6.0
0.1
2016
35.9
35.1
43.6
165.6
12.0
34.2
17.0
13.6
11.7
1.9
3.6
2.0
23.4
20.1
22.8
76
5.5
0.1
2017
31.4
32.0
41.9
187.9
9.0
28.2
18.6
14.2
12.5
1.8
3.2
1.5
18.4
15.2
14.8
70
5.0
0.1
2018
43.0
42.7
54.8
213.4
14.0
32.8
13.9
10.9
11.0
1.7
2.8
2.4
21.5
17.8
15.0
70
4.3
0.2
2019
48.5
48.2
60.3
228.7
14.0
29.0
12.3
9.9
8.1
1.5
2.6
2.4
22.0
18.7
20.0
71
4.7
0.1
2020E
50.1
49.6
66.1
239.4
22.0
44.3
12.0
9.0
8.8
1.4
2.5
3.7
21.2
17.6
15.9
74
5.0
0.2
2021E
54.6
54.2
72.2
264.6
25.0
46.1
11.0
8.2
7.7
1.2
2.2
4.2
21.7
17.6
15.8
77
5.4
0.2
2022E
63.7
63.2
81.2
298.8
25.0
39.6
9.4
7.3
6.4
1.1
2.0
4.2
22.6
18.7
18.5
79
5.8
0.1
(INR M)
2022E
52,390
-2,315
-5,310
44,765
-12,267
32,498
20,529
8,262
0
-2,011
-27,211
-29,221
23,806
30,642
23,806
54,447
2015
32,040
-8,874
23,167
-21,365
1,802
-9,050
-30,415
2,469
2,396
-6,771
-1,905
-9,154
33,202
-9,154
24,048
2016
34,439
5,456
39,895
-45,439
-5,544
10,611
-34,828
35
-3,469
-13,626
-17,060
-11,993
24,048
-11,993
12,056
2017
32,617
-17,243
15,910
31,284
-9,694
21,590
5,293
-4,401
-451
-9,196
-9,278
-18,925
7,958
12,056
7,958
20,013
2018
58,631
-7,832
-14,860
35,939
-10,166
25,773
-23,431
-33,597
251
6,493
-9,438
-2,694
-352
20,013
-352
19,661
2019
71,506
-10,574
-16,490
44,442
-8,046
36,396
-13,118
-21,164
359
-7,964
-14,907
-22,512
766
19,661
766
20,427
2020E
48,153
-8,259
3,604
43,498
-9,494
34,004
-3,192
-12,686
-81
-11,345
-22,625
-34,052
-3,240
20,427
-3,240
17,188
2021E
51,875
-4,750
-1,548
45,577
-10,952
34,625
8,056
-2,896
0
-2,017
-27,211
-29,227
13,454
17,188
13,454
30,642
19 March 2020
5
 Motilal Oswal Financial Services
Tech Mahindra
NOTES
19 March 2020
6
 Motilal Oswal Financial Services
Tech Mahindra
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.
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
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https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
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Research Analyst views on Subject Company may vary based on Fundamental research and
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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
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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
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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
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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
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Specific Disclosures
1 MOFSL, 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 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, 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 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
********************************************************************************************************************************
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
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 Motilal Oswal Financial Services
Tech Mahindra
- 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.
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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
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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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