11 October 2024

Company Update | Sector: Financials

Federal Bank
BSE SENSEX S&P CNX
81,381 24,964
CMP: INR187 TP: INR230 (+23%) Buy
Growth outlook steady; getting future-ready under new
leadership
Rising mix of high-yielding products to boost margins
Bloomberg FB IN
Equity Shares (m) 2448
M.Cap.(INRb)/(USDb) 459.8 / 5.5  Federal Bank (FB) has demonstrated a strong growth trajectory over FY22-24,
52-Week Range (INR) 207 / 137 with 20% CAGR in its loan book and 18% deposit growth. Over FY25-27, we
1, 6, 12 Rel. Per (%) 2/8/2 believe the bank is well poised to deliver an 18% loan CAGR, aided by effective
12M Avg Val (INR M) 2386
risk management and fintech partnerships.
Free float (%) 100.0
 The bank views fintech partnerships as vital for product distribution, tech
Financials & Valuation (INR b) integration and network expansion to boost customer acquisition in FY25, as it
Y/E Mar FY24 FY25E FY26E is optimistic about the lifting of regulatory restrictions on card issuance soon.
NII 82.9 96.8 117.5  We reckon that the implementation of LCR draft guidelines in their current form
OP 51.7 61.5 77.1
will impact FB’s LCR by ~1240bp. However in that scenario, if the bank were to
NP 37.2 41.2 49.8
NIM (%) 3.3 3.2 3.3 raise required deposits to restore its LCR back to 110% than as per our
EPS (INR) 16.3 16.9 20.5 calculations, FB’s RoA and margins would be impacted by 3bp and 8bp,
EPS Gr. (%) 14.5 3.5 20.9 respectively. Please refer our note for more details here.
BV/Sh. (INR) 119 134 152  In Jul’24, FB received the RBI's approval for Mr. KVS Manian as the new MD and
ABV/Sh. (INR) 113 127 143
CEO beginning Sep’24. With his extensive banking expertise, Mr. Manian is
Ratios
ROE (%) 14.7 13.4 14.3 expected to drive strategic changes and drive next leg of growth and
ROA (%) 1.3 1.2 1.3 profitability for the bank after already delivering robust performance over the
Valuations last few years.
P/E(X) 11.4 11.0 9.1  We estimate FB to achieve RoA/RoE of 1.3%/15.2% by FY27, making its current
P/BV (X) 1.6 1.4 1.2
valuation at 1.2x FY26 BV attractive for long-term growth; thus, we maintain our
Shareholding pattern (%) BUY rating with a TP of INR230 (1.5x FY26E ABV).
As On Jun-24 Mar-24 Jun-23 Growth outlook steady; business mix shifting toward high-yielding
Promoter 0.0 0.0 0.0 products
DII 44.7 44.9 41.8 FB achieved a robust 20% YoY credit growth in FY24, with 20% YoY growth in
FII 29.4 29.3 27.1 retail loans and significant growth in high-yield segments like credit cards (73%
Others 25.9 25.8 31.1
YoY) and microfinance loans (107% YoY). In commercial banking, the bank is
FII Includes depository receipts
enhancing its focus on supply chain growth and high-margin products, which
Stock performance (one-year) now make up 24.8% of its total portfolio, up from 19.8% in FY22 (excluding
Federal Bank business banking, the high-yielding book stands at ~7% vs. 5% in FY22). FB's
Nifty - Rebased cautious approach to unsecured loans, compared to larger peers, positions it
240 well to boost the share of high-yield loans and margins. Accordingly, we
estimate an 18% loan CAGR during FY25-27.
200
Robust deposit franchise; LCR ratio remains a concern
160 FB’s deposit growth was aligned with credit growth and stood at 18% YoY in
FY24, driven mainly by 24% YoY growth in term deposits. CASA deposits saw
120
modest growth, accounting for ~30.1% of the mix in 2QFY25. Despite the RBI’s
Apr-24
Jun-24
Dec-23

Aug-24
Feb-24
Oct-23

Oct-24

embargo on its partnership with OneCard, FB’s strong fintech collaborations

remain vital for enhancing cross-selling opportunities and attracting strategic
partners. With a CD ratio of ~83%, the bank is well-positioned for growth,
although its LCR at 112.6% raises concerns, especially with potential RBI
regulations that could reduce it by ~1240bp. As per our calculation, if the bank
raises necessary deposits to achieve a 110% LCR, its RoA and margins would be
affected by 3bp and 8bp, respectively.
Nitin Aggarwal - Research Analyst ([email protected])
Research Analyst: Dixit Sankharva ([email protected]) | Disha Singhal ([email protected])
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.
 Federal Bank

Pace of NIM moderation to ease supported by high-yielding mix

FB’s NIM contracted to 3.16% in 1QFY25, primarily due to rising funding costs linked
to a soft CASA ratio, although the pace of contraction has been slowing. The bank's
lower fixed-rate loan portfolio (at 29%) will further add to margin pressure as the
interest rate cycle turns. The bank is focusing on increasing high-yielding loans to
strengthen margins, which are ~120bp lower than larger peers’ margins, while the
difference in the cost of funds stands at ~60bp. Despite setbacks from the RBI's
embargo on its OneCard partnership, FB's strong fintech collaborations are key to
enhancing cross-selling opportunities and boosting profitability.

Cost ratios to improve gradually; estimate C/I ratio of 50% by FY27

Despite minimal branch additions between FY16 and FY22, FB faced high
operational expenses due to significant investments in technology, compliance, and
rising wage costs. However, from FY23 to 1QFY25, the bank added 146 branches,
demonstrating its commitment to growth and digital infrastructure, resulting in a
higher C/I ratio of 54.5% in FY24. With ongoing technology investments and branch
expansion, the C/I ratio is expected to remain ~54% in FY25 before gradually
declining to 50% by FY27.

Strong underwriting enables healthy asset quality; est. credit cost of 30-
40bp
FB has maintained strong asset quality, with its GNPA/NNPA ratios improving to
2.1%/0.7% in FY24, driven by controlled slippages and robust recoveries. This
success is attributed to strategic customer selection and strong underwriting
practices, which remain effective even in co-lending partnerships. Under Mr.
Srinivasan's leadership, the bank has enhanced its underwriting standards, leading
to a gradual decline in gross slippages, particularly in corporate and SME segments,
while maintaining a lower unsecured loan mix. With credit costs estimated to be
around 30-40bp, we expect GNPA/NNPA ratios at 1.9%/0.6% by FY27.

Valuation and view

 FB posted a 20% CAGR in its loan book during FY22-24 and improved its RoA to
~1.3% in FY24 from 0.9% in FY22, despite NIM pressure and higher cost ratios.
 In Jul’24, FB received the RBI’s approval for Mr. Manian as the new MD and
CEO starting Sep’24. With his extensive banking expertise, Mr. Manian is
expected to drive strategic changes and drive next leg of growth and
profitability for the bank after already delivering robust performance over the
last few years.
 We estimate FB to achieve RoA of 1.3% and RoE of 15.2% by FY27, driven by
improved margins and a continued shift toward higher-yielding products. As
revenue growth outpaces cost growth, we expect the C/I ratio to decrease to
~50% by FY27, down from 54.5% in FY24.
 With current valuations at 1.2x FY26 book value presenting an attractive long-
term investment opportunity, FB is well-positioned to leverage its strong
balance sheet and extensive customer base for sustainable profitability.
Supported by new leadership’s focus on growth, we maintain our BUY rating on
the stock with a TP of INR230 (1.5x FY26E ABV).

13 October 2024 2
 Federal Bank

Business growth robust; est. 18% CAGR in loans

Improving mix of high-yielding products to enable profitable growth

 FB delivered a robust 20% YoY credit growth during FY24, driven by healthy
traction across segments. Retail loans grew 20% YoY and the new higher-
yielding segment posted robust growth, i.e., 73% YoY growth in credit cards,
52% YoY growth in CV/CE, 40% YoY growth in personal loans, and 107% YoY
growth in microfinance loans.
 FB aims to enhance its commercial banking vertical by focusing on supply chain
growth and high-yielding segments while upholding high-quality risk
management to ensure healthy growth in advances. Thus, the share of higher-
margin products in the portfolio mix improved to 24.8% in FY24 from 19.8% in
FY22 (excluding business banking, the high-yielding book stands at ~7% vs. 2.4%
in FY22).
 FB's relatively calibrated approach to unsecured loans contrasts with larger
private peers, which have a double-digit share of unsecured loans (PL+CC). This
presents FB an opportunity to improve its share of high-yielding loans, thereby
benefitting on margins. We estimate FB to deliver healthy traction in business
growth, enabling it to deliver 18% loan CAGR over FY25-27E.

Loan mix Exhibit 1: Estimate healthy 18% loan CAGR over FY25-27E
Loans (INRb) Growth - YoY (%)
Retail
2% 20 20
34% SME 18 18 18
29% Agriculture
Gold 11 10
8
CV/CE

2% Corporate
18%
12% 3% MFI 1,223 1,319 1,449 1,744 2,094 2,460 2,891 3,403

FY20 FY21 FY22 FY23 FY24 FY25E FY26E FY27E

Source: MOFSL, Company

Exhibit 2: Share of high-margin products (ex-MSME) rose to 7% in FY24 vs. 2.4% in FY22
FB is increasing its mix in MSME Credit card Personal loans CV/CE MFI
high-yielding segments like
CV/CE, MFI, personal loans,
and credit cards, which 1.6 1.7
0.8 1.6 1.6
0.3
accounted for 7% in FY24; 1.2 1.8 1.7
0.8 1.3
including business banking, 1.4 1.4
0.21.1 0.8
it accounted for 24.8%.
17.8 17.7 18.0 18.0

FY22 FY23 FY24 1QFY25

Source: MOFSL, Company

13 October 2024 3
 Federal Bank

Under Mr. Manian's Exhibit 3: Mix of high-yielding segment of FB vs. Kotak bank
leadership, KMB has
Federal Bank Kotak Mahindra Bank
successfully diversified its 9.3%
portfolio with a focus on
high-yielding assets.
5.0%
His valuable experience will 3.6%
now be leveraged at FB to 2.5%
enhance its high-margin 1.6% 1.7% 1.4% 1.7%
portfolio.

FB may also explore CV/CE Personal loan Credit card MFI

inorganic opportunities to KMB’s personal includes Personal loan, business loan and consumer durables
accelerate the expansion in Source: MOFSL, Company
focus areas.
Exhibit 4: Rating profile of corporate assets; expect mix of AAA and AA to moderate
Rating profile of corporate A & above BBB <BBB & others
assets: A & above increased
to 82%, bank expect
16% 11% 12% 11% 14% 15% 10%
wholesale mix to change 11% 12% 11% 9% 7% 8%
11%
with AAA and AA to witness
some contraction.
73% 78% 76% 78% 77% 78% 82%

FY19 FY20 FY21 FY22 FY23 FY24 1QFY25

Source: MOFSL, Company

13 October 2024 4
 Federal Bank

Strengthening deposit growth through granularity and

fintech partnerships
Lower LCR ratio remains a concern

 FB’s deposit growth was broadly in line with credit growth at 18% YoY in FY24.
This growth was primarily led by TDs, which grew at a faster pace of 24% YoY,
while the bank faced challenges in CASA deposit accretion, reporting a modest
growth with the mix standing at ~30.1% in 2QFY25. The bank continued to
maintain a significant position in NR deposits, which grew by 8.6% YoY in
1QFY25, despite challenges.
 Although the RBI’s embargo on its partnership with OneCard poses a setback,
FB’s strong fintech collaborations are crucial for enhancing cross-selling
opportunities, potentially increasing profitability and attracting valuable alliance
partners. Despite industry-wide challenges in deposit mobilization, FB’s strong
deposit granularity and effective fintech partnerships have supported healthy
deposit growth, which will enable the bank to deliver robust loan growth over
the coming years.
 FB has a CD ratio of ~83% which positions it well to pursue business growth;
however, its LCR at 112.6% remains a concern as the RBI has proposed draft
norms that mandate an additional 5% run-off factor for deposits linked to
mobile and internet banking. We reckon that the implementation of LCR draft
guidelines in the current form will impact FB’s LCR by ~1240bp.

Exhibit 5: Estimate deposits CAGR at ~18% over FY25-27E Exhibit 6: CD ratio stable at 83%; LCR moderated to 112.6%
Deposits (INRb) Growth - YoY (%) CD Ratio (%) LCR Ratio (%)
145.2
18 141.4
17 17 17 18 138.6

13 13 128.1 127.8
125.0 124.8
119.9
112.6
5
1,726

4,083
1,523

2,134

2,525

2,960

3,475

82.5
82.7

85.2

83.5

81.8

82.8

83.1

82.9
FY22 1,817

1QFY25 83.0
1QFY24
1QFY23

2QFY23

3QFY23

4QFY23

2QFY24

3QFY24

4QFY24
FY21

FY27E
FY20

FY23

FY24

FY25E

FY26E

Source: MOFSL, Company Source: MOFSL, Company

Exhibit 7: CASA ratio at 30% in 2QFY25; estimate CASA mix to improve to 32% by FY27
CASA ratio CASA + Deposits <3cr as % of total deposits
CASA + Deposits <INR30m
as % of total deposits 91% 91% 90% 91% 87% 82% 80%
moderated to 80% vs. 91%
in FY20.

32% 34% 37% 33%

31% 29% 29% 30%

FY19 FY20 FY21 FY22 FY23 FY24 1QFY25 2QFY25

Source: MOFSL, Company

13 October 2024 5
 Federal Bank

Exhibit 8: FB’s LCR ratio at 112.6% is the lowest among peers

FB’s LCR ratio remains LCR Ratio (%)
lower vs. peers BANDHAN 166.0
KMB 139.2
RBK 137.2
HDFCB 123.3
ICICIBC 122.7
IIB 122.0
DCBB* 120.7
AXSB 120.3
IDFCFB 118.0
AUBANK 117.0
FB 112.6

*as on 4QFY24 Source: MOFSL, Company

Exhibit 9: We estimate a drop in LCR ratio by 1,240bp if draft guidelines are implemented
We reckon that the Federal Bank (INRb) Old LCR New LCR Drop in LCR
implementation of LCR Retail Deposits as per LCR 1,828 1,828
draft guidelines in the MIB (60% of retail deposits)- assumed 1,097
current form will impact Increase in Outflows (5% of MIB) 55
FB’s LCR by ~1,240bp. Net cash outflow (a) 443 498
HQLA (b) 499 499
LCR ratio % (b/a) 112.6 100.2 --12.40
Source: MOFSL, Company

Exhibit 10: Following are LCR ratios, If MIB as % of retail deposits assumed as 30-70%

LCR ratio (calc, %)

106.0%
104.0%
102.0%
100.2%
98.4%

MIB-30% MIB-40% MIB-50% MIB-60% MIB-70%

Source: MOFSL, Company

 As per our calculation, FB’s RoA and margins will be impacted by 3bp and 8bp,
respectively, if the bank were to raise required deposits to improve its LCR to
110%, in case the draft LCR guidelines come into effect in the current form.
Please refer Exhibit 11 for details.

13 October 2024 6
 Federal Bank

Exhibit 11: FB’s RoA/margins could be impacted by 3bp/7bp, if draft LCR guidelines come
into effect
We calculate FB’s RoA and Federal Bank (INRb) Old New
margins will be impacted by LCR (%) 112.6 100.2
3bp and 8bp, respectively, if
bank were to raise required Assuming LCR compliance of 106%
deposits to improve its LCR HQLA for LCR of 110% under new methodology 499 548
to 110% - Required increase in retail deposits 48.8
-Deposits required adjusted for SLR requirement
63.0
@18% & [email protected]%
- As % of total retail deposits as per LCR (1QFY25) 3.4%
- As % of total deposits as per BS (1QFY25) 2.3%

Assuming FB raises required retail deposits at 7%

- Cost of incremental deposits @7% -4.41
- Parking them in G-Sec @6.8% to raise HQLA levels 4.28
- Negative carry from CRR -0.19

Net impact -0.32

NII (FY25) 96.8 96.5

Avg Int earning assets (FY24-25) 3,025 3,088
NIM on basis of Int earning assets (%) 3.20% 3.12%
- Potential impact on margins (%) -0.08%
Average Assets (FY24-25) 3,083 3,146
FY25 PAT 37.2 37.0
RoA (FY25, %) 1.21% 1.18%
% change in RoA, bp -3.2
Earnings (RoA) impact (%) -2.6%
Source: MOFSL, Company

13 October 2024 7
 Federal Bank

Pace of NIM moderation to ease supported by high-

yielding mix
FB lags large private peers in margins by ~120bp vs. CoF disadvantage of ~60bp

 FB’s NIM contracted 4bp QoQ to 3.16% in 1QFY25 due to rising funding costs as
the CASA mix remained under pressure. However, the pace of contraction in
NIMs has been reducing gradually. Also, the bank’s lower fixed-rate book at 29%
will keep margins in check, particularly as the interest rate cycle turns.
 FB is consciously trying to scale up the mix of high-yielding loans, as its margins
are ~120bp lower than those of larger peers, while the difference in the cost of
funds stands at ~60bp.
 Despite the setback from the RBI's embargo on its partnership with OneCard,
FB's strong fintech collaborations are crucial for enhancing cross-selling
opportunities across customer segments, thereby boosting profitability and
attracting high-potential alliance partners.

Exhibit 12: Margin compressed in the past few quarters due to rise in funding cost

NIM (%)
We estimate NIMs to
sustain at 3.2% in FY25 as
the cost of fund stabilizes.

3.37 3.39
3.31
3.2 3.20 3.21
3.16 3.16

FY21 FY22 FY23 FY24 1QFY25 FY25E FY26E FY27E

FY25,26,27 are on calculated basis Source: MOFSL, Company

Exhibit 13: NIM is ~120bp lower than avg of large pvt bank… Exhibit 14: … however, the differential in CoF is ~60bp

NIM (%) Cost of fund (%)

5.90
5.02
4.36 4.25 5.62
4.05
5.44
3.16
5.10 5.05

AXSB Federal KMB ICICIB IIB AXSB Federal KMB ICICIB IIB

Source: MOFSL, Company Source: MOFSL, Company

13 October 2024 8
 Federal Bank

Exhibit 15: FB’s yield on advances is ~140bp lower than the avg of large pvt bank

YoA (%)

12.57
10.32 9.43 10.89
9.80

AXSB Federal KMB ICICIB IIB

Source: MOFSL, Company

Cost ratios to decline gradually as operating leverage improves

Estimate C/I ratio of ~50% by FY27E

 Despite adding very few branches between FY16 and FY22, FB faced elevated
opex due to significant investments in technology, compliance, and rising wage
costs. However, we believe there is potential for the bank to optimize its opex,
thereby enhancing its overall productivity and benefiting from improved
operating leverage. From FY23 to 1QFY25, FB added 146 branches, reflecting its
commitment to growth and robust digital infrastructure, leading to a higher C/I
ratio of 54.5% in FY24.
 FB’s cost per employee has been increasing; however, its employee productivity
has been improving, with business per employee increasing to INR304m in FY24
from INR255m in FY22.
 With ongoing investments in technology, expansion in branches and pressure on
revenue growth, the C/I ratio is expected to remain around 54% in FY25 before
gradually moderating to 50% by FY27.

Exhibit 16: Estimate C/I ratio and cost to asset ratio at 50%/2.0% by FY27
With continued investment C/I ratio (%) Cost to assets (%)
in business, technology and 2.0 2.0 2.0 2.0
employees, we expect the 1.9
C/I ratio to sustain at ~54% 1.9
1.8 1.8
in FY25 and recover
1.7
gradually to ~50% by FY27E.

50.0 51.3 49.3 53.3 49.9 54.5 53.7 51.8 50.2

FY19 FY20 FY21 FY22 FY23 FY24 FY25E FY26E FY27E

Source: MOFSL, Company

13 October 2024 9
 Federal Bank

Strong underwriting enables robust asset quality

Estimate credit cost of 30-40bp over FY25-27E

 FB has maintained strong asset quality, with its GNPA/NNPA ratios improving to
2.1%/0.7% in FY24, led by controlled slippages and robust recoveries. This
success stems from the bank’s strategic customer selection and strong
underwriting practices, which remain consistent even in co-lending
partnerships. Also, the bank expects recovery of an asset worth INR700m in the
coming quarters, which turned NPA last year.
 Under the leadership of Mr. Srinivasan, FB has significantly enhanced its
underwriting standards, reflected in the gradual decline of gross slippages,
particularly in the corporate and SME segments. The bank’s gross slippages are
lower compared to larger peers, aided by a reduced unsecured loan mix. This
has led to lower incremental stress formation and a benign credit cost of 27bp.
With the credit cost expected to be around 30-40bp, we estimate GNPA/NNPA
ratios to moderate further to 1.9%/0.6% by FY27.

Exhibit 17: Estimate GNPA/NNPA ratios at 1.9%/0.6% by FY27

FB saw an improvement in GNPA (%) NNPA (%) PCR (%)
GNPA/NNPA ratios, aided
68.4 69.6 71.0 70.9 71.0
by healthy recoveries and 65.9 66.3
lower slippages 54.5
50.1

3.4
2.9 2.8 2.8
2.4 2.1 2.0 1.9 1.9
1.5 1.3 1.2 1.0 0.8 0.7 0.6 0.6 0.6

FY19 FY20 FY21 FY22 FY23 FY24 FY25E FY26E FY27E

Source: MOFSL, Company

Exhibit 18: Estimate credit cost to remain stable at 30-40bp over FY25-27E
We estimate credit cost to Slippage ratio (calc,%) Credit cost (calc,%)
remain stable at 30-40bp 1.3
over FY25-27E 1.0
0.8 0.9

0.5
0.3 0.4 0.4
0.1

1.6 1.7 1.5 1.4 1.1 0.9 1.0 1.0 1.0

FY19 FY20 FY21 FY22 FY23 FY24 FY25E FY26E FY27E

Source: MOFSL, Company

13 October 2024 10
 Federal Bank

Valuation and view: Maintain BUY with a TP of INR230

 FB has demonstrated a robust growth trajectory, achieving a 20% CAGR in its
loan book during FY22-24 while maintaining a highly granular deposit franchise.
Despite facing pressures on NIM and relatively higher cost ratios, FB reported
RoA of ~1.3% in FY24 vs. 0.9% in FY22. This was led by strong fee income growth
and low credit costs.
 FB views fintech partnerships as vital for product distribution, tech integration
and network expansion to boost customer acquisition in FY25, as it is optimistic
about the lifting of regulatory restrictions on card issuance soon.
 In Jul’24, it announced the RBI's approval for Mr. Manian to become the new
MD and CEO beginning Sept’24. Mr. Manian, who last worked with Kotak
Mahindra Bank as Joint MD, has a rich and diverse experience across banking
functions. He has extensive expertise in corporate, commercial, and private
banking, as well as asset reconstruction.
 We estimate FB to deliver RoA/RoE of 1.3%/15.2% by FY27, backed by
improved NIM and a continued shift in the portfolio mix toward higher-
yielding products. Alongside, we expect cost ratios to improve as revenue
growth exceeds cost growth, aided by healthy business expansion and
continued traction in fee income. We thus estimate the C/I ratio to moderate
to ~50% by FY27E from 54.5% in FY24.
 We find the current valuation at 1.2x FY26 BV attractive for the long term, as
the bank remains a good play on growth and profitability. FB is confident of
effectively leveraging its strong balance sheet and wide customer base to
achieve sustainable profit-and-loss outcomes. Backed by the new leadership,
which remains committed to driving the next leg of growth and profitability,
we expect FB to strengthen its position as a credible alternative to larger
private sector banks. We reiterate our BUY rating on the stock with a TP of
INR230 (1.5x FY26E ABV).
Exhibit 19: Return ratios to remain steady; estimate FY27E RoA/RoE at 1.3%/15.2%

RoE (%) RoA (%)

1.3 1.3 1.2 1.3 1.3

0.9 0.9
0.8 0.8
11.1

10.4

10.8

14.9

14.7

13.4

14.3

15.2
9.8

FY19 FY20 FY21 FY22 FY23 FY24 FY25E FY26E FY27E

Source: MOFSL, Company

13 October 2024 11
 Federal Bank

Exhibit 20: One-year forward P/B ratio Exhibit 21: One-year forward P/E ratio
P/B (x) Avg (x) Max (x) P/E (x) Avg (x) Max (x)
Min (x) +1SD -1SD Min (x) +1SD -1SD
2.3 31.0
1.9
1.8 24.0 23.9
1.5
1.4 17.0
1.3 1.2 17.0
12.0
10.3
0.8 0.9 10.0 6.9

0.3 0.5 3.0 5.1

Jun-18

Jun-23

Jun-18

Jun-23
Mar-22

Sep-24
Sep-14

Dec-15

Mar-17

Sep-19

Dec-20

Mar-22

Sep-24

Sep-14

Dec-15

Mar-17

Sep-19

Dec-20
Source: MOFSL, Company Source: MOFSL, Company

Exhibit 22: DuPont Analysis: Estimate RoE to improve to 15.2% by FY27E as leverage improves
Y/E March FY20 FY21 FY22 FY23 FY24 FY25E FY26E FY27E
Interest Income 7.77 7.20 6.47 6.98 7.80 7.81 7.85 7.89
Interest Expense 5.04 4.31 3.65 3.98 4.89 4.89 4.79 4.73
Net Interest Income 2.73 2.90 2.82 3.01 2.92 2.92 3.06 3.16
Core Fee Income 0.78 0.70 0.85 0.96 0.99 0.99 1.00 1.01
Trading and others 0.36 0.33 0.14 0.01 0.10 0.10 0.10 0.11
Non-Interest income 1.14 1.03 0.99 0.97 1.08 1.09 1.11 1.12
Total Income 3.87 3.92 3.81 3.97 4.00 4.00 4.16 4.28
Operating Expenses 1.99 1.93 2.03 1.98 2.18 2.15 2.16 2.15
-Employee cost 1.04 1.07 1.10 0.90 0.99 0.99 0.99 0.98
-Others 0.94 0.87 0.93 1.08 1.19 1.16 1.17 1.17
Operating Profits 1.89 1.99 1.78 1.99 1.82 1.86 2.01 2.13
Core Operating Profits 1.53 1.66 1.64 1.98 1.72 1.76 1.90 2.02
Provisions 0.69 0.87 0.58 0.31 0.07 0.19 0.27 0.32
PBT 1.20 1.12 1.20 1.68 1.75 1.67 1.74 1.80
Tax 0.29 0.29 0.31 0.43 0.44 0.43 0.44 0.46
RoA 0.91 0.83 0.89 1.25 1.31 1.24 1.30 1.34
Leverage (x) 12.2 12.5 12.1 11.9 11.2 10.8 11.1 11.3
RoE 11.1 10.4 10.8 14.9 14.7 13.4 14.3 15.2
Source: MOFSL, Company

13 October 2024 12
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Financials and valuations

Income Statement (INRb)
Y/E March FY20 FY21 FY22 FY23 FY24 FY25E FY26E FY27E
Interest Income 132.1 137.6 136.6 168.0 221.9 259.1 301.7 354.1
Interest Expense 85.6 82.2 77.0 95.7 138.9 162.3 184.2 212.3
Net Interest Income 46.5 55.3 59.6 72.3 82.9 96.8 117.5 141.7
-growth (%) 11.3 19.0 7.7 21.3 14.7 16.7 21.4 20.7
Non-Interest Income 19.3 19.6 20.9 23.3 30.8 36.0 42.5 50.2
Total Income 65.8 74.9 80.5 95.6 113.7 132.8 160.0 191.9
-growth (%) 19.0 13.9 7.5 18.8 18.9 16.8 20.5 19.9
Operating Expenses 33.8 36.9 42.9 47.7 62.0 71.3 82.9 96.4
Pre Provision Profits 32.0 38.0 37.6 47.9 51.7 61.5 77.1 95.5
-growth (%) 16.0 18.6 -1.1 27.6 7.9 18.9 25.3 23.9
Provisions (excl tax) 11.7 16.6 12.2 7.5 2.0 6.2 10.2 14.5
PBT 20.3 21.4 25.4 40.4 49.8 55.3 66.9 81.0
Tax 4.9 5.5 6.5 10.3 12.6 14.1 17.1 20.6
Tax Rate (%) 24.1 25.6 25.5 25.6 25.3 25.5 25.5 25.5
PAT 15.4 15.9 18.9 30.1 37.2 41.2 49.8 60.3
-growth (%) 24.0 3.1 18.8 59.3 23.6 10.7 20.9 21.1

Balance Sheet
Y/E March FY20 FY21 FY22 FY23 FY24 FY25E FY26E FY27E
Share Capital 4.0 4.0 4.2 4.2 4.9 4.9 4.9 4.9
Equity Share Capital 4.0 4.0 4.2 4.2 4.9 4.9 4.9 4.9
Reserves & Surplus 141.2 157.3 183.7 210.8 286.1 321.2 364.9 419.1
Net Worth 145.2 161.2 187.9 215.1 290.9 326.1 369.8 424.0
Deposits 1,522.9 1,726.4 1,817.0 2,133.9 2,525.3 2,959.7 3,474.7 4,082.8
-growth (%) 12.8 13.4 5.2 17.4 18.3 17.2 17.4 17.5
- CASA Dep 467.7 587.1 674.7 701.2 746.5 902.7 1,108.4 1,302.4
-growth (%) 7.0 25.5 14.9 3.9 6.5 20.9 22.8 17.5
Borrowings 103.7 90.7 153.9 193.2 180.3 166.9 183.6 202.0
Other Liabilities & Prov. 34.6 35.3 50.6 61.3 86.6 97.8 110.5 124.9
Total Liabilities 1,806.4 2,013.7 2,209.5 2,603.4 3,083.1 3,550.5 4,138.6 4,833.7
Current Assets 125.7 195.9 210.1 176.9 189.6 197.0 217.7 254.9
Investments 358.9 371.9 391.8 489.8 608.6 718.1 847.4 999.9
-growth (%) 12.8 3.6 5.4 25.0 24.2 18.0 18.0 18.0
Loans 1,222.7 1,318.8 1,449.3 1,744.5 2,094.0 2,460.5 2,891.1 3,402.8
-growth (%) 10.9 7.9 9.9 20.4 20.0 17.5 17.5 17.7
Fixed Assets 4.8 4.9 6.3 9.3 10.2 11.0 11.9 12.8
Other Assets 94.2 122.2 151.9 182.9 180.7 163.9 170.6 163.1
Total Assets 1,806.4 2,013.7 2,209.5 2,603.4 3,083.1 3,550.5 4,138.6 4,833.7

Asset Quality
GNPA 35.3 46.0 41.4 41.8 45.3 49.9 56.7 65.5
NNPA 16.1 15.7 13.9 13.2 13.8 14.5 16.5 19.0
Slippages 19.2 19.2 18.8 17.2 17.4 22.8 26.8 31.5
GNPA Ratio (%) 2.8 3.4 2.8 2.4 2.1 2.0 1.9 1.9
NNPA Ratio (%) 1.3 1.2 1.0 0.8 0.7 0.6 0.6 0.6
Slippage Ratio (%) 1.7 1.5 1.4 1.1 0.9 1.0 1.0 1.0
Credit Cost (%) 1.0 1.3 0.9 0.5 0.1 0.3 0.4 0.4
PCR (Excl Tech. write off) (%) 54.5 65.9 66.3 68.4 69.6 71.0 70.9 71.0
E: MOFSL Estimates

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Financials and valuations

Ratios
Y/E March FY20 FY21 FY22 FY23 FY24 FY25E FY26E FY27E
Yield and Cost Ratios (%)
Avg. Yield-Earning Assets 8.5 8.0 7.4 8.0 8.8 8.6 8.5 8.5
Avg. Yield on loans 9.2 8.5 7.8 8.4 9.2 9.1 9.0 9.0
Avg. Yield on Investments 6.6 6.6 6.3 6.5 6.9 7.0 6.9 7.0
Avg. Cost-Int. Bear. Liab. 5.6 4.8 4.1 4.5 5.5 5.6 5.4 5.3
Avg. Cost of Deposits 5.6 4.8 4.1 4.4 5.5 5.6 5.4 5.4
Avg. Cost of Borrowings 5.1 4.3 3.0 5.5 6.4 5.2 5.2 5.2
Interest Spread 2.9 3.2 3.3 3.6 3.2 3.0 3.0 3.1
Net Interest Margin 3.0 3.2 3.2 3.5 3.3 3.2 3.3 3.4

Capitalization Ratios (%)

CAR 14.4 14.6 15.8 14.8 16.5 15.9 15.0 14.4
Tier I 13.3 13.9 14.4 13.0 14.8 14.4 13.8 13.3
-CET-1 13.3 13.9 14.4 13.0 14.82
Tier II 1.1 0.8 1.3 1.8 1.6 1.5 1.2 1.0

Business Ratios (%)

Loans/Deposit Ratio 80.3 76.4 79.8 81.8 82.9 83.1 83.2 83.3
CASA Ratio 30.7 34.0 37.1 32.9 29.6 30.5 31.9 31.9
Cost/Assets 1.9 1.8 1.9 1.8 2.0 2.0 2.0 2.0
Cost/Total Income 51.3 49.3 53.3 49.9 54.5 53.7 51.8 50.2
Cost/Core Income 56.5 53.7 55.4 50.0 55.9 55.0 53.1 51.5
Int. Expense/Int.Income 64.8 59.8 56.4 57.0 62.6 62.6 61.1 60.0
Fee Income/Net Income 20.1 17.8 22.2 24.1 24.7 24.6 24.1 23.7
Non Int. Inc./Net Income 29.4 26.1 25.9 24.4 27.1 27.1 26.6 26.1
Empl. Cost/Op. Exps. 52.5 55.1 54.1 45.6 45.5 46.0 45.8 45.7

Efficiency Ratios (INRm)

Employee/branch (in nos) 9.9 9.8 9.8 9.8 10.1 10.0 9.9 9.8
Staff cost/employee 1.4 1.6 1.8 1.6 1.9 2.1 2.3 2.5
CASA per branch 370.3 455.5 519.0 511.1 496.3 566.2 655.9 727.1
Deposits per branch 1,205.8 1,339.4 1,397.7 1,555.3 1,679.1 1,856.5 2,056.2 2,279.2
Busi. per Empl. 219.7 241.8 255.4 288.2 303.7 339.3 379.6 425.1
NP per Empl. 1.2 1.3 1.5 2.2 2.4 2.6 3.0 3.4

Valuation
RoE 11.1 10.4 10.8 14.9 14.7 13.4 14.3 15.2
RoA 0.9 0.8 0.9 1.3 1.3 1.2 1.3 1.3
RoRWA 1.4 1.4 1.5 1.9 1.9 1.8 1.8 1.9
Book Value (INR) 73 81 89 102 119 134 152 174
-growth (%) 9.0 10.9 10.7 13.7 17.6 12.1 13.4 14.7
Price-BV (x) 2.6 2.3 2.1 1.8 1.6 1.4 1.2 1.1
Adjusted BV (INR) 65 72.7 81.6 94.1 112.8 126.5 143.3 164.2
Price-ABV (x) 2.9 2.6 2.3 2.0 1.6 1.5 1.3 1.1
EPS (INR) 7.8 8.0 9.2 14.3 16.3 16.9 20.5 24.8
-growth (%) 23.4 2.8 15.6 54.8 14.5 3.5 20.9 21.1
Price-Earnings (x) 24.0 23.3 20.2 13.0 11.4 11.0 9.1 7.5
Dividend Per Share (INR) 1.7 0.0 0.7 1.8 1.0 2.5 2.5 2.5
Dividend Yield (%) 0.9 0.0 0.4 1.0 0.5 1.3 1.3 1.3
E: MOFSL Estimates

Investment in securities market are subject to market risks. Read all the related documents carefully before investing

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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 be 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, Depository participant services & distribution of various financial products. 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”) (UEN 201129401Z), which is a holder of a capital markets services license and an exempt
financial adviser in Singapore.This report is distributed solely to persons who (a) qualify as “institutional investors” as defined in section 4A(1)(c) of the Securities and Futures Act of Singapore (“SFA”) or (b)
are considered "accredited investors" as defined in section 2(1) of the Financial Advisers Regulations of Singapore read with section 4A(1)(a) of the SFA. Accordingly, if a recipient is neither an “institutional
investor” nor an “accredited investor”, they must immediately discontinue any use of this Report and inform MOCMSPL .
In respect of any matter arising from or in connection with the research you could contact the following representatives of MOCMSPL. In case of grievances for any of the services rendered by MOCMSPL
write to [email protected].
Nainesh Rajani
Email: [email protected]
Contact: (+65) 8328 0276
.
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 at the end of the month immediately preceding the date of publication of the Research Report or date of the public
appearance.
- received compensation/other benefits from the subject company in the past 12 months
- 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.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months

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- 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.
- Served subject company as its clients during twelve months preceding the date of distribution of the research report.
- 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.
This report is meant for the clients of Motilal Oswal only.
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 - 71934200 / 71934263; www.motilaloswal.com.
Correspondence Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 71881000. Details of Compliance Officer: Neeraj Agarwal,
Email Id: [email protected], Contact No.:022-40548085.
Grievance Redressal Cell:
Contact Person Contact No. Email ID
Ms. Hemangi Date 022 40548000 / 022 67490600 [email protected]
Ms. Kumud Upadhyay 022 40548082 [email protected]
Mr. Ajay Menon 022 40548083 [email protected]
Registration details of group entities.: Motilal Oswal Financial Services Ltd. (MOFSL): INZ000158836 (BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412 . AMFI:
ARN .: 146822. IRDA Corporate Agent – CA0579. Motilal Oswal Financial Services Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Insurance, Bond, NCDs and IPO products.
Customer having any query/feedback/ clarification may write to [email protected]. In case of grievances for any of the services rendered by Motilal Oswal Financial Services Limited (MOFSL) write to
[email protected], for DP to [email protected].

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