14 May 2020
4QFY20 Results Update | Sector: Technology
Mphasis
Neutral
Estimate change
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Financials & Valuations (INR b)
Y/E Mar
2020 2021E
Sales
88.4
90.7
EBIT
14.2
13.2
PAT
11.8
10.6
EPS (INR)
61.5
56.4
EPS Gr. (%)
9.6
-8.2
BV/Sh. (INR)
312.6
346.5
Ratios
RoE (%)
21.4
17.6
RoCE (%)
18.3
14.7
Payout (%)
56.9
53.2
Valuations
P/E (x)
13.1
14.2
P/BV (x)
2.6
2.3
EV/EBITDA (x)
8.4
8.2
Div Yield (%)
4.4
3.7
MPHL IN
193
149.9 / 2
1015 / 612
18/13/0
226
CMP: INR804
TP: INR 860 (+7%)
Decent performance; Soft outlook!
Direct international drives growth, deal wins healthy
2022E
99.2
15.4
In-line revenue; Better than expected margins
12.4
In 4QFY20, Revenue (USD) / EBIT (INR)/PAT increased by 10%/20%/33% YoY
65.9
respectively vs our estimates of 11%/14%/11% YoY.
16.9
Revenue grew 1.5% QoQ (CC, v/s est. ~2.3%). Growth was driven by Direct
380.7
19.4
16.7
60.7
12.2
2.1
6.6
5.0
Deal wins (USD 201mn) during the quarter were healthy, 12% above the 4
quarter rolling average. 4QFY20 revenue growth at 1.5% (QoQ, CC) was
marginally behind our estimates, as weakness in DXC channel overshadowed
the healthy performance in Direct. Near term outlook remained soft as
clients reprioritize/defer some IT spends. Despite that, healthy order book,
high exposure to relatively stable verticals, and new client additions, should
help MPHL navigate these challenges.
We upgrade our FY21/22E EPS by ~8%/6%, largely driven by (a) adjustments
to our exchange rate assumptions and (b) EBIT Margin estimates (over FY21-
22E). Maintain
Neutral.
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Mar-20 Dec-19 Mar-19
56.2
52.2
52.3
14.2
13.9
8.0
23.9
28.5
29.7
5.8
5.4
10.0
International (2.7% QoQ, CC) while DXC revenue declined (1.0% QoQ, CC).
Amongst verticals, growth was broad based with all verticals growing 1-2%
except for IT/Comm/Entertainment which declined by 3.7%.
Geography wise, Americas declined 1% QoQ while growth in Europe / RoW
grew strong at 8%/9%. This was despite Americas facing COVID headwinds
later than the other two geographies.
Revenue from the Top client declined ~6.6% QoQ. Top 2-5 clients’ segment
reported strong growth of ~3.6% QoQ.
EBIT margin expanded 10bp QoQ to 16.3%. Increase in share of fixed price
projects, cost optimization and favorable currency were the key tailwinds.
4Q witnessed the strongest order booking over past 6 quarters with deal
wins of USD201m in Direct channel; Of this, 79% were in new generation.
Given the uncertainty in the environment, management hinted at a soft
outlook on revenue growth. However, the company is confident of
maintaining its margins by using levers such as – increase in share of Fixed
Price Projects, fresher hiring, pyramid rationalization, automation and
reduced travel costs etc.
So far, there were no major demand dislocations. However, the company
indicated that clients are re-prioritizing/deferring some IT spends.
With supply issues in play, ramp-ups in April had been very tough but
management is confident that the supply situation will stabilize.
In the case of DXC, MPHL doesn’t foresee any force majeure event as of
now. MRC of USD300mn is still due.
Direct Core segment has been the growth driver and has seen strong deal
wins, new clients additions.
In terms of capital allocation, MPHL will maintain its 55-57% payout policy.
Key highlights from management commentary
FII Includes depository receipts
Sudheer Guntupalli – Research analyst
(Sudheer.Guntupalli@MotilalOswal.com); +91 22 6129 1530
Research analyst: Mohit Sharma
(Mohit.Sharma@MotilalOswal.com); +91226129 1531/
Heenal Gada
Heenal.Gada@MotilalOswal.com); +91225036 2654
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
Mphasis
Valuation and view – Cautious about the near term risks
Momentum in the direct channel remains robust and continues to drive overall
growth. Recent deal wins may help mitigate near term uncertainty, to an extent.
DXC business (~26% of revenues and strong growth driver over ~FY18-H1FY20) –
continues to be soft. Restructuring at DXC adds a degree of caution to the
outlook. However, outlook on the ability to defend margins is a key positive.
While near term challenges exist, exposure to largely stable verticals (BFSI ~57%
of revenues), may help in mitigating risks to some extent.
The stock is currently trading at ~14x FY21E EPS, inline to its long-term rolling
averages. We value the stock at ~13x FY22E EPS. Maintain
Neutral.
FY20E
2Q
3Q
305
318
2.6
4.3
21,581 22,767
12.7
15.5
28.8
28.7
10.0
10.0
4,052
4,269
18.8
18.8
16.1
16.2
351
362
24.2
24.0
2,733
2,937
3.3
7.5
0.9
5.7
14.2
15.2
FY19
4Q
320
0.6
23,462
15.9
29.3
10.4
4,441
18.9
16.3
526
14.9
3,532
20.3
32.7
18.8
1,119
13.1
77,310
18.1
27.9
10.8
13,239
17.1
16.1
1,747
23.7
10,733
26.2
56.1
FY20E
1,239
10.8
88,436
14.4
28.8
10.2
16,505
18.7
16.0
1,780
21.8
11,849
10.4
62.4
(INR Million)
Est.
Var.
Mar 20 (% / bp)
324
-1.4
2.0
-141bp
23,211
1.1
14.6
123bp
28.6
70bp
10.5
-11bp
4,206
5.6
18.1
81bp
15.7
63bp
344
53.0
25.0 -1012bp
2,955
19.5
0.6
11.0
15.3
22.8
Quarterly Performance
Y/E March
Revenue (USD m)
QoQ (%)
Revenue (INR m)
YoY (%)
GPM (%)
SGA (%)
EBITDA
EBITDA Margin (%)
EBIT Margin (%)
Other income
ETR (%)
PAT
QoQ (%)
YoY (%)
EPS (INR)
1Q
269
1.7
18,202
18.5
28.9
11.2
3,201
17.6
16.6
449
24.7
2,583
3.0
38.0
13.4
FY19
2Q
3Q
276
283
2.6
2.6
19,149 19,710
19.3
18.7
28.1
27.9
10.7
11.2
3,329
3,306
17.4
16.8
16.4
15.8
467
499
24.5
22.4
2,709
2,780
4.9
2.6
37.0
29.3
14.0
14.4
4Q
292
3.2
20,250
16.1
26.8
10.0
3,404
16.8
15.8
332
23.4
2,662
-4.2
6.2
14.3
1Q
297
1.8
20,626
13.3
28.4
10.2
3,743
18.1
15.5
541
25.1
2,647
-0.5
2.5
14.2
Source: MOFSL Estimates
Key Perfor. Indicators
Y/E March
1Q
Revenue (%)
HP/DXC
Non HP
Margins
Gross Margin
EBIT Margin
Net Margin
Operating metrics
Headcount
Deal Win TCV (USD b)
Key Verticals (YoY%)
BFS
Insurance
IT, Comm, Ent
Key Geographies (YoY%)
North America
Europe
27
73
29
17
14
22,566
153
12
-3
61
16
36
FY19
2Q
28
72
28
16
14
23,478
210
8
-1
37
14
30
3Q
29
71
28
16
14
24,215
122
4
4
31
10
29
4Q
28
72
27
16
13
24,485
146
4
14
13
8
15
1Q
28
72
28
15
13
25,500
151
5
15
6
10
3
FY20
2Q
28
72
29
16
13
26,963
174
10
10
5
9
4
FY19
3Q
27
73
29
16
13
27,289
189
16
7
5
11
15
4Q
26
74
29
16
15
26,404
201
13
4
-4
8
18
28
72
28
16
14
24,485
631
7
3
33
12
27
27
73
29
16
13
26,404
715
11
9
3
10
10
FY20
14 May 2020
2
 Motilal Oswal Financial Services
Mphasis
Management commentary highlights
Given the uncertainty in the environment, management hinted at a soft outlook
on revenue growth. However, the company is confident of maintaining its
margins by using levers such as – increase in share of Fixed Price Projects,
fresher hiring, pyramid rationalization, automation and reduced travel costs etc.
So far, there were no major demand dislocations. However, the company
indicated that clients are re-prioritizing/deferring some IT spends.
With supply issues in play, ramp-ups in April had been very tough but
management is confident that the supply situation will stabilize.
In the case of DXC, MPHL doesn’t foresee any force majeure event as of now.
MRC of USD300mn is still due.
Direct Core segment has been the growth driver and has seen strong deal wins,
new clients additions.
In terms of capital allocation, MPHL will maintain its 55-57% payout policy.
Better than expected margins
In 4QFY20, Revenue (USD) / EBIT (INR)/PAT increased by 10%/20%/33% YoY
respectively vs our estimates of 11%/14%/11% YoY.
Revenue grew 1.5% QoQ (CC, v/s est. ~2.3%). Growth was driven by Direct
International (2.7% QoQ, CC) while DXC revenue declined (1.0% QoQ, CC).
Amongst verticals, growth was broad based with all verticals growing 1-2%
except for IT/Comm/Entertainment which declined by 3.7%.
Geography wise, Americas declined 1% QoQ while growth in Europe / RoW grew
strong at 8%/9%. This was despite Americas facing COVID headwinds later than
the other two geographies.
Revenue from the Top client declined ~6.6% QoQ. Top 2-5 clients’ segment
reported strong growth of ~3.6% QoQ.
EBIT margin expanded 10bp QoQ to 16.3%. Increase in share of fixed price
projects, cost optimization and favorable currency were the key tailwinds.
4Q witnessed the strongest order booking over past 6 quarters with deal wins of
USD201m in Direct channel; Of this, 79% were in new generation.
Contribution to
rev (%)
31.1
32.9
0.7
5.5
7.9
12.4
9.4
0.2
Growth –
QoQ (%)
9.5
3
-44.3
-30.1
2.2
-4.2
3.5
-33.3
Growth -
YoY (%)
1.8
14.9
-36.8
-15.3
38.6
6.7
34.2
-11.6
Exhibit 1: Amongst major service offerings, IMS and Service desk declined sequentially
Verticals
Application Maintenance & Other Services
Application Development
Customer Service
Service/Technical Help Desk
Transaction Processing Service
Infrastructure Management Services
Knowledge Processes
License Income
Source: Company, MOFSL
14 May 2020
3
 Motilal Oswal Financial Services
Mphasis
Exhibit 2: Key market - America declined while Euope / RoW saw healthy growth
Geographies
North America
Europe
India
Rest of the world
Contribution to
rev (%)
76.3
12.3
5.0
6.4
Growth
QoQ (%)
-1.0
7.6
-0.6
9.3
Growth
YoY (%)
7.8
18.2
6.4
20.4
Source: Company, MOFSL
Exhibit 3: Among verticals, growth was broad based except for ITCE
Geographies
Banking and Capital Markets
Insurance
IT, Communication and Entertainment (ITCE)
Emerging Industries
Contribution to
rev (%)
45.7
11.4
15.0
27.9
Growth
QoQ (%)
1.0
2.1
-3.7
1.9
Growth
YoY (%)
12.9
4.5
-4.4
15.7
Source: Company, MOFSL
Exhibit 4: Top client declined while Top 2-5 clients were growth drivers
Geographies
Top Client
Top 2-5 Clients
Top 6-10 Clients
Contribution to
rev (%)
13.0
35.0
12.0
Growth
QoQ (%)
-6.6
3.6
0.6
Growth
YoY (%)
1.8
16.3
1.2
Source: Company, MOFSL
Exhibit 5: Growth in the Direct channel saw slight deceleration
Direct Channel YoY
14%
16%
10%
8%
8%
9%
12%
14%
Source: MOSL, Company
Valuation and view
Momentum in the direct channel remains robust and continues to drive overall
growth. Recent deal wins may help mitigate near term uncertainty, to an extent.
DXC business (~26% of revenues and strong growth driver over ~FY18-H1FY20) –
continues to be soft. Restructuring at DXC adds a degree of caution to the
outlook. However, outlook on the ability to defend margins is a key positive.
While near term challenges exist, exposure to largely stable verticals (BFSI ~57%
of revenues), may help in mitigating risks to some extent.
The stock is currently trading at ~14x FY21E EPS, inline to its long-term rolling
averages. We value the stock at ~13x FY22E EPS. Maintain
Neutral.
14 May 2020
4
 Motilal Oswal Financial Services
Mphasis
Exhibit 6: Current multiples are at 7% discount to long term average of ~14x
22
17
12
7
MPHL 1yr fwd P/E (consensus)
Source: Bloomberg, MOSL
Exhibit 7: Revision to our estimates
Change in Estimates
INR/USD
USD Revenue - m
USD Revenue - growth
EBIT Margin (%)
EPS - INR
FY21E
76.0
1,202
-3.0
14.6
56.4
Revised
FY22E
77.0
1,297
7.9
15.5
65.9
FY21E
73.5
1,206
-3.1
14.3
52.4
Earlier
FY22E
73.5
1,301
7.9
15.0
62.2
FY21E
3.4%
-0.3%
2bp
33bp
7.7%
Change
FY22E
4.8%
-0.3%
3bp
49bp
6.0%
Source: MOFSL
14 May 2020
5
 Motilal Oswal Financial Services
Mphasis
Operating Metrics
Operating Metrics
Vertical Contribution (%)
Banking and Capital Markets
Insurance
IT, Commn & Entmt
Emerging Industries
Total
Revenue by Project Type (%)
TTM
FPP
Revenue by Delivery Location (%)
Onsite
Offshore
Secondary Market Segment (%)
HP Channel
Mature Market - Direct Channel
Emerging Market - Direct Channel
Service Type (%)
App Maintenance
App Development
Customer Service
Service/Technical Help Desk
Trasaction Processing Service
Infra Management Services
Knowledge Processes
License Income
Client metrics
Client wins
BCM
Insurance
ITCE
Emerging industries
Total
Client wins Channels
Direct Channel
HP Channel
Total Client additions
Clients Contributing More than:
USD1m
USD5m
USD10m
USD20m
Clients - Direct Channel
USD1m
USD5m
USD10m
USD20m
Clients - HP Channel
USD1m
USD5m
USD10m
USD20m
Jun-18
47.0
11.3
17.2
24.5
100
73
27
57
43
27
69
3
30
27
1
8
7
15
11
0
Sep-18
46.0
11.3
17.0
25.7
100
75
25
58
42
28
68
4
34
28
1
6
6
14
10
0
Dec-18
44.1
11.8
16.8
27.3
100
76
24
57
43
29
67
4
36
30
1
7
6
13
7
0
Mar-19
44.3
12.0
17.3
26.4
100
77
23
58
42
28
68
3
34
31
1
7
6
13
8
0
Jun-19
44.7
11.7
16.6
27.1
100
76
24
58
42
28
68
3
32
33
1
7
6
12
7
0
Sep-19
45.8
11.2
16.1
26.8
100
74
26
58
42
28
69
3
30
33
1
7
7
13
9
0
Dec-19
45.5
11.2
15.7
27.5
100
73
27
58
42
27
70
3
29
32
1
8
8
13
9
0
Mar-20
45.7
11.4
15.0
27.9
100
72
28
57
43
26
71
3
31
33
1
6
8
12
9
0
4
0
1
7
12
7
5
12
93
37
18
8
61
24
15
6
32
13
3
2
3
0
0
9
12
5
7
12
95
36
19
8
63
24
15
6
32
12
4
2
11
1
3
5
20
18
2
20
96
33
19
8
63
23
15
6
33
10
4
2
12
2
5
4
23
19
4
23
94
33
17
8
62
25
13
6
32
8
4
2
7
1
5
6
19
12
7
19
96
33
17
8
67
25
13
6
29
8
4
2
4
2
2
7
15
7
8
15
104
35
17
8
72
26
13
6
32
9
4
2
4
3
3
5
15
13
2
15
106
36
17
8
73
27
13
6
33
9
4
2
2
1
3
6
12
7
5
12
107
37
17
8
73
28
13
6
34
9
4
2
14 May 2020
6
 Motilal Oswal Financial Services
Mphasis
Financials and valuations
Income Statement
March Y/E
Revenues
Change (%)
Cost Of Goods Sold
SG&A Expenses
EBITDA
% of Net Sales
Depreciation
Other Income
PBT
Tax
Rate (%)
Net Income
Change (%)
Mar 15
57,949
-6.9
42,540
6,708
8,701
15.0
980
1,687
9,408
2,630
28.0
6,778
-8.6
Mar 16
60,879
5.1
44,708
7,201
8,970
14.7
744
1,712
9,938
2,696
27.1
7,242
6.9
Mar 17
60,763
-0.2
43,649
7,426
9,688
15.9
592
2,246
11,342
3,155
27.8
8,187
13.0
Mar 18
65,459
7.7
47,309.0
7,525
10,625
16.2
709
1,490
11,406
2,900
25.4
8,506
3.9
Mar 19
77,310
18.1
55,734.0
8,337
13,239
17.1
759
1,592
14,072
3,339
23.7
10,733
26.2
Mar 20
88,436
14.4
62,951.0
8,980
16,505
18.7
2,317
967
15,155
3,306
21.8
11,849
10.4
Mar 21E
90,663
2.5
65,864
9,228
15,571
17.2
2,327
780
14,024
3,436
24.5
10,588
-10.6
Mar 22E
99,225
9.4
69,438
11,936
17,851
18.0
2,465
1,003
16,389
4,015
24.5
12,374
16.9
Balance Sheet
Y/E
Share Capital
Reserves
Net Worth
Loans
Capital Employed
Gross Block
Less : Depreciation
Net Block
CWIP
Goodwill
Investments
Deferred tax assets
Curr. Assets
Debtors
Cash
Loans & Advances
Current Liab. & Prov
Net Current Assets
Application of Funds
E: MOSL Estimates
Mar 15
2,101
52,697
54,798
6,253
61,051
10,055
8,499
1,556
318
21,781
14,431
826
35,014
11,371
13,311
10,332
12,875
22,139
61,051
Mar 16
2,102
60,828
62,930
5,338
68,268
9,300
8,128
1,172
953
22,942
21,118
941
31,968
12,333
8,783
10,852
10,826
21,142
68,268
Mar 17
2,104
59,420
61,524
2,760
64,284
3,400
1,167
2,233
387
14,069
23,956
3,527
28,998
10,871
6,315
11,812
8,888
20,110
64,282
Mar 18
1,933
52,885
54,818
3,949
58,767
4,304
2,478
1,826
399
17,015
17,821
1,057
31,742
13,560
7,148
11,034
11,093
20,649
58,767
Mar 19
1,862
50,636
52,498
5,456
57,954
5,357
3,244
2,113
406
19,585
13,292
814
36,531
17,687
6,618
12,226
14,787
21,744
57,954
Mar 20
1,865
56,431
58,296
13,092
71,388
12,965
4,235
8,730
553
21,405
13,257
2,157
40,297
16,947
11,550
11,800
15,011
25,286
71,388
Mar 21E
1,792
60,303
62,095
10,346
72,441
14,765
6,562
8,203
493
21,405
13,257
2,157
41,702
16,634
13,268
11,800
14,775
26,926
72,441
(INR Million)
Mar 22E
1,719
63,723
65,442
9,946
75,388
16,565
9,027
7,538
489
21,405
13,257
2,157
46,633
18,380
16,453
11,800
16,090
30,543
75,388
14 May 2020
7
 Motilal Oswal Financial Services
Mphasis
Financials and valuations
Ratios
Y/E
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)
Leverage Ratio
Debt/Equity Ratio(x)
Mar 15
32.3
36.9
260.8
16.0
49.6
24.9
21.7
16.9
2.5
3.1
2.0
12.8
11.5
16.7
77
31.0
0.1
Mar 16
34.5
38.0
299.4
20.0
58.0
23.3
21.1
16.1
2.4
2.7
2.5
12.3
11.2
17.0
71
44.6
0.1
Mar 17
38.9
41.7
292.4
17.0
43.7
20.6
19.2
14.6
2.3
2.7
2.1
13.2
12.4
18.5
70
35.7
0.0
Mar 18
44.0
47.7
283.6
20.0
45.4
18.2
16.8
12.6
2.1
2.8
2.5
14.6
13.8
22.1
68
32.3
0.1
Mar 19
56.1
61.7
281.9
78.3
140.6
14.3
13.0
10.2
1.7
2.8
9.7
20.0
18.4
26.8
74
39.3
0.1
Mar 20
61.5
76.0
312.6
35.0
56.9
13.1
10.6
8.4
1.6
2.6
4.4
21.4
18.3
26.5
71
16.3
0.2
Mar 21E
56.4
72.1
346.5
30.0
53.2
14.2
11.1
8.2
1.4
2.3
3.7
17.6
14.7
21.9
68
10.7
0.2
Mar 22E
65.9
86.3
380.7
40.0
60.7
12.2
9.3
6.6
1.2
2.1
5.0
19.4
16.7
25.6
64
12.6
0.2
Cash Flow Statement
Y/E
Mar 15
Mar 16
CF from Operations
7,900
7,871
Chg. in Wkg. Capital
-50
-3,531
Net Operating CF
7,850
4,340
Net Purchase of FA
-614
-995
Free Cash Flow
7,236
3,345
Net Purchase of Invest.
3,807
-7,848
Net Cash from Invest.
3,193
-8,843
Proceeds from equity
0
5,933
Proceeds from LTB/STB
1,601
-915
Dividend Payments
-4,033
-5,045
Net CF from Financing
-2,432
-26
Free Cash Flow
7,236
3,345
Net Cash Flow
8,610
-4,529
Opening Cash Balance
4,697
13,307
Add: Net Cash
8,610
-4,529
Closing Cash Balance
13,307
8,778
E: MOSL Estimates; *Annualized values for 5m FY14E
Mar 17
6,193
-1,436
4,757
-1,087
3,670
6,035
4,948
-5,305
-2,578
-4,290
-12,172
3,670
-2,467
8,778
-2,467
6,311
Mar 18
11,685
294
11,979
-314
11,665
3,189
2,875
-10,577
1,189
-4,637
-14,024
11,665
830
6,311
830
7,140
Mar 19
11,735
-1,625
10,110
-1,053
9,057
1,959
906
4,427
1,507
-17,482
-11,547
9,057
-531
7,140
-531
6,609
Mar 20
12,823
1,390
14,213
-9,081
5,132
-1,785
-10,866
1,783
7,636
-7,836
1,584
5,132
4,931
6,609
4,931
11,540
Mar 21E
12,915
77
12,992
-1,740
11,252
0
-1,740
-73
-2,746
-6,716
-9,535
11,252
1,717
11,540
1,717
13,257
(INR Million)
Mar 22E
14,839
-430
14,409
-1,796
12,613
0
-1,796
-73
-400
-8,955
-9,428
12,613
3,185
13,257
3,185
16,442
14 May 2020
8
 Motilal Oswal Financial Services
Mphasis
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
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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.
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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
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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 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
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inform MOCMSPL.
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
14 May 2020
9
 Motilal Oswal Financial Services
Mphasis
********************************************************************************************************************************
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
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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
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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
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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
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The person accessing this information specifically agrees to exempt MOFSL or any of its
affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such
misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages,
expenses that may be suffered by the person
accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, 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.
14 May 2020
10