17 Mar 23 Kotak Daily

India Daily
March 17, 2023 NIFTY-50 [Mar 16]: 16,986
Contents
Daily Alerts
Change in Reco
Bayer Cropscience: Mixed outlook for the year ahead
 FY2023 likely to end as third successive year of subdued earnings growth
 Outlook for FY2024 is uncertain
 We cut FY2023-25E EPS by 12-16%; upgrade to REDUCE
Company Alerts
TCS: Out of the blue
 Resignation of CEO is a surprise, TCS has been a consistent performer
 K Krithivasan, first among equals
 Profile of K Krithivasan
DLF: Hits the ball out of the park
 Exceptionally strong sales of Rs80 bn at DLF Arbour
 Residential real estate up-cycle taking higher interest rates in its stride
 Maintain BUY with revised fair value of Rs430/share
Sector Alerts
Insurance: In mid-teens
 Divergent trends in motor business
 SAHI and private players drive growth in retail and group health
Private Circulation Only.

This document may only be distributed to QIBs (qualified institutional buyers) as defined under rule 144A of the Securities A ct of 1933
CHANGE IN RECO.
Bayer Cropscience (BYRCS) REDUCE

Fertilizers & Agricultural Chemicals
CMP(₹): 4,031 Fair Value(₹): 4,050 Sector View: Cautious NIFTY-50: 16,986 March 17, 2023
Mixed outlook for the year ahead Company data and valuation summary
Bayer CropScience (BYRCS) faces a mixed outlook for the year ahead, with
Stock data
falling prices of glyphosate, elevated inventories of agrochemicals in the
CMP(Rs)/FV(Rs)/Rating 4,031/4,050/REDUCE
distribution channel and forecasts for an El Nino weather effect acting as
52-week range (Rs) (high-low) 5,668-4,002
headwinds, even as crop prices remain remunerative for farmers. We cut the
Mcap (bn) (Rs/US$) 181/2
FY2023-25E EPS by 12-16% to reflect the headwinds and revise our rating to
ADTV-3M (mn) (Rs/US$) 58/1
REDUCE (from SELL) after the 18% correction in share price YTD in CY2023.
Shareholding pattern (%)
FY2023 likely to end as third successive year of subdued earnings growth
FY2023 seems likely to be another year of subdued earnings growth for BYRCS. 4.7
8.1
Though the 9MYTD EPS adjusted for exceptional items stands at Rs117.0 3.0
9.6
versus Rs100.5 (adjusted for a Rs1 bn profit on sale of the Environmental
3.2
Science business in FY2023 and Rs585 mn profit on sale of part of the Seed
71.4
Distribution business in FY2022), 4QFY23 seems at risk of registering a sharp
EPS decline yoy, given a difficult base. 4QFY22 EPS was boosted by one-off
Promoters FPIs MFs BFIs Retail Others
factors, including a spike in prices of glyphosate, early buying by channel
partners amid supply chain uncertainties and rising prices. BYRCS also began Price performance (%) 1M 3M 12M
Private Circulation Only. This document may only be distributed to QIBs (qualified institutional buyers) as defined under rule 144A of the Securities A ct of 1933
4QFY22 with low inventories in the channel. In contrast, 4QFY23 started with Absolute (10) (17) (8)
high channel inventories, and besides, the recent correction in prices of Rel. to Nifty (4) (10) (8)
glyphosate and other agrochemicals will probably be a headwind. Forecasts/Valuations 2023E 2024E 2025E
EPS (Rs) 140.9 159.0 175.9
Outlook for FY2024 is uncertain EPS growth (%) 5.3 12.8 10.6
On Bayer AG’s recent earnings call on February 28, its global management P/E (X) 28.6 25.4 22.9
guided to a 15-20% decrease in worldwide glyphosate revenues in CY2023, P/B (X) 6.8 6.5 6.3
EV/EBITDA (X) 20.0 17.9 16.3
amid falling prices. Besides, forecasts for an El Nino weather effect add to
RoE (%) 24.4 26.3 27.9
further uncertainty for the upcoming year, as do prevailing high levels of
Div. yield (%) 3.1 3.4 3.7
channel inventories. On the brighter side, crop prices (especially corn—the most
Sales (Rs bn) 51 56 61
important crop for BYRCS) are still remunerative, whereas fertilizer prices have EBITDA (Rs bn) 9 10 11
corrected, boosting farmer purchasing power, and hence, secondary demand Net profits (Rs bn) 6 7 8
for agrochemicals. However, the outlook for the year ahead is mixed rather than Source: Bloomberg, Company data, Kotak Institutional Equities estimates
positive for the reasons cited previously. Besides, the company’s new product Prices in this report are based on the market close of
registration traction remains unimpressive, with few significant new launches March 16, 2023
ahead, suggesting challenges in keeping up with the competition.
We cut FY2023-25E EPS by 12-16%; upgrade to REDUCE

We cut FY2023E EPS by 12% to Rs140.9 to factor in the sharp decline in
glyphosate prices, which seems likely to weigh on near-term earnings. The
impact also flows through to FY2024-25, more so given climate-related
uncertainty. We now project a 12% EPS CAGR over FY2023-25E, after a third
consecutive year of subdued earnings growth. We cut our 1YF target P/E for the
stock to 23X (from 25X previously) to factor in a higher cost of capital, and
reflect the company’s modest growth profile and competitive challenges. Our
revised Fair Value, rolled over to March 2024, moves down to Rs4,050 (23X
FY2025E EPS), and we upgrade the stock to REDUCE (from SELL previously),
following the recent correction. Our revised estimates are 7-13% below
consensus, though a ~3% dividend yield does act as a support for the stock. Full sector coverage on KINSITE
Abhijit Akella, CFA

abhijit.akella@kotak.com
+91-22-4336-0878
3
Glyphosate price decline will be a headwind in quarters to come

Bayer AG’s management, on the company’s recent earnings call on February 28, said the fall in
glyphosate prices will impact the company’s global revenues by ~€900 mn in CY2023. For BYRCS (the
Indian entity) as well, we believe glyphosate is the second-most important product (after the DeKalb corn
hybrids), probably accounting for ~Rs5-6 bn of sales (~10% of company revenues). Glyphosate prices
have corrected sharply in recent months after the spike witnessed in the preceding year, amid supply-
chain disruptions (Exhibits 1-3). We expect this to weigh on the company’s margins. It sources
glyphosate technical from its parent/sister companies worldwide (in the US and Germany), and the
average import price has only moved up a little in the past two years, even as glyphosate prices spiked
and then fell. Aside from the price aspect, there is still some regulatory uncertainty around the future of
the product in the Indian market, where the government on October 25, 2022, restricted the use of
glyphosate only through pest control operators. Subsequently, the Delhi High Court had, on November
23, 2022, kept the government’s order in abeyance and directed the government to revisit the matter
within three months. The latest on this matter is that the government on March 7, 2023, gave a further
undertaking to the Delhi High Court that its order will be kept in abeyance for another four months. The
next date of hearing on this matter is July 19, 2023. Our estimates do not currently factor in any
significant decline in glyphosate sales volumes pursuant to the government’s notification.
Management transition further adds to uncertainty

Bayer AG has recently announced the appointment of a new CEO, William Anderson, who will replace the
outgoing CEO Werner Baumann, w.e.f., June 1, 2023. This comes amid pressure from activist
shareholders for a change in management following Bayer’s acquisition of Monsanto in 2018, which has
(at least so far) disappointed, with Bayer AG’s stock price having almost halved since the acquisition.
The appointment of the new CEO has renewed speculation of a breakup of Bayer AG into separate
business units. If this were to happen and the crop protection business was to be demerged, it would
likely lead to a period of uncertainty due to the management transition and possible adjustments to
strategy. Meanwhile, at BYRCS (the Indian listed entity), Simon Thorsten Wiebusch, who heads the
operating management, has been the Chief Operating Officer since August 21, 2018, although he was
subsequently appointed as Country Divisional Head, w.e.f., January 1, 2022. BYRCS has typically seen
changes to its operating management every 3-4 years. Wiebusch’s predecessor, Joerg Rehbein, moved
to another geography after around five years with BYRCS (from 2011-16). Wiebusch, since his arrival,
had made certain notable changes to business strategy, particularly reducing prices of key products to
drive volume growth and timing inventory placement in the channel closer to the date of actual seasonal
usage by farmers. It remains to be seen if any change in operating management will lead to changes to
this strategy.
Exhibit 1: Prices of glyphosate, one of Bayer’s key products, have corrected sharply after a spike
China Market price of Glyphosate (USD/Ton)

14,000
12,000
10,000
8,000
6,000
4,000
2,000
-
Sep-14
Sep-15
Sep-16
Sep-17
Sep-19
Sep-21
Sep-18
Sep-20
Sep-22
May-14
May-16
May-18
May-20
May-21
May-22
May-15
May-17
May-19
Jan-14
Jan-15
Jan-17
Jan-19
Jan-21
Jan-23
Jan-16
Jan-18
Jan-20
Jan-22
Source: Bloomberg
Bayer Cropscience
Fertilizers & Agricultural Chemicals India Research
4
Exhibit 2: Domestic prices of glyphosate have also corrected significantly in recent months
Domestic Price for Glyphosate (INR/kg)

1,200
1,000
800
600
400
200
23-Nov-22
8-Jun-22
2-Nov-22
22-Dec-21
21-Sep-22
14-Dec-22
20-Jul-22
27-Apr-22
18-May-22
6-Apr-22
12-Oct-22
23-Feb-22
15-Feb-23
2-Feb-22
12-Jan-22
25-Jan-23
4-Jan-23
29-Jun-22
16-Mar-22
31-Aug-22
8-Mar-23
10-Aug-22
Source: Indianpetrochem
Exhibit 3: In contrast, average import cost of glyphosate for Bayer has stayed relatively stable
Average Import Cost of Glyphosate (USD/kg)

3.0000
2.5000
2.0000
1.5000
1.0000
0.5000
0.0000
Jun-20
Jun-21
Sep-2022
Nov-20
Sep-20
Sep-21
Dec-2022
May-20
Dec-20
Dec-21
May-21
Apr-2022
Apr-20
Jul-2022
Oct-2022
Oct-20
Apr-21
Oct-21
Jul-20
Jul-21
Feb-2023
Aug-2022
Feb-22
Feb-21
Jun-2022
Jan-2023
Nov-2022
Aug-20
Aug-21
Jan-22
Mar-22
Jan-21
Mar-21
Source: Trade data
Bayer Cropscience
5
Exhibit 4: Domestic prices of maize (corn), the most important crop for BYRCS, remain firm
Maize domestic Price (Rs/quintal)

2,500
2,000
1,500
1,000
500
Source: Agmarknet
Exhibit 5: BYRCS has obtained fairly few new registrations during FY2023
Product Comments
Tetraniliprole 40.34% FS u/s 9(3) FIM Approval for grant of registration for indigenous manufacture of Tetraniliprole 40.34% FS
Import of Deltamethrin 25% WG u/s 9(3) FI Approval for grant of registration for import of Deltamethrin 25% WG
Label expansion of Fipronil 0.6% GR u/s 9(3) Approval for label expansion
Source: Central Insecticide Board & Registration Committee
Bayer Cropscience
6
Hybrid Seed Business

Exhibit 6: New product launches in the past five years have had limited success, though Vayego and Momiji are promising
Year of launch Product name Type Description
FY2022 DKC9217 Hybrid seed It offers high yield, good stalk rot tolerance and standability for Rabi markets of South and East India.
It offers high yield, better shelling quality and grain color for rain-fed and irrigated markets of
FY2022 DKC9210 Hybrid seed
Maharashtra.
FY2022 DKC9208 Hybrid seed It offers long cobs, better stalk quality and high yield for spring market.
It is a medium maturity product, with good standability and wider adaptability for Kharif markets of
Rajasthan and Madhya Pradesh.
It is used for Kharif markets of Uttar Pradesh, Madhya Pradesh, Bihar, Jharkhand, Himachal Pradesh
and Rajasthan
It has wider adaptability and gives a greater number of corn kernels with better, weight, making it a hit
FY 2021 Dekalb 9198 Corn Hybrid
with corn growers
FY 2021 Dekalb 9188 Corn Hybrid This corn hybrid assures high return per acre, with wider adaptability.
This is the company’s first extra-long slender (ELS), fine grain Arize hybrid in the short duration
FY 2020 Arize AZ 6741 Hybrid seed
segment catering to fine segment markets of western Uttar Pradesh and Haryana
A mid-early duration hybrid suitable for mid-uplands in the rain-fed geographies of Jharkhand,
FY 2020 ArizeAZ 6411 Hybrid seed
Chhattisgarh, Madhya Pradesh, and Odisha
A dual-purpose millet hybrid suitable for the Kharif season, which matures in 78 days with high
potential to give grain yield and excellent fodder. It is also tolerant to downy mildew, rust and blast crop
FY 2020 Proagro PA 9180 Hybrid seed
diseases. As a non-lodging hybrid, with compact ear heads and green quality makes it suitable for
farmers in Rajasthan, Haryana, UP and MP
Another millet hybrid seed with higher yields, excellent fodder, good resistance against downy mildew
FY 2020 Proagro PA 9285 Hybrid seed
and good tolerance for blast disease and lodging.
FY 2019 Arize AZ 6741 Hybrid Rice Seed An early-duration hybrid with extra-long slender grains and high yield potential
A long-duration hybrid with long slender grains, excellent milling characteristics & high head rice
FY 2019 Arize AZ 6565 Hybrid Rice Seed
recovery
A medium-duration hybrid with excellent grain quality, high yield potential, good fodder quality &
FY 2019 Proagro PA 9285 Hybrid Millet Seed
tolerance to
diseases like blast and downy mildew
FY 2019 Proagro PA 9180 Hybrid Millet Seed A full-duration hybrid with bold grains best suited for eating purpose
Cr op P r ot e c t ion Che m ic a l B us ine s s

Year of launch Product name Type Description
Vayego (Tetraniliprole The company secured the registration for the novel product ‘Vayego’ (Tetraniliprole 18.18% SC) and
FY2022 Insecticide
18.18% SC) successfully launched the product for the management of insect pests
Egnitus 110 SC Cyclanilide
Egnitus 110 SC is a plant growth regulator and offers unique benefits in cotton by reducing unwanted
FY2022 2.10% + Mepiquat Chloride Growth regulator
vegetative growth in the plant.
8.40% SC in Cotton
The company has secured registration approval for ‘Maxforce Fusion’ (Imidacloprid 2.15% w/w Gel) for
Control of both
Maxforce Fusion household use. This ready-to-use novel bait formulation offers an effective tool for control of both
FY2022 nymphs and adult
(Imidacloprid 2.15% w/w Gel) nymphs and adult cockroaches, commonly found in the food handling areas of household and
cockroaches
commercial premises.
The Company has successfully secured key registration and launched for ‘Fenos Quick’ (Flubendiamide
Fenos Quick (Flubendiamide 90 + Deltamethrin 60 SC) dual mode of action for the management of insect pests. The product is
FY2021 Pesticide
90 + Deltamethrin 60 SC) recommended as a foliar spray for the control of pod borers in chickpea and cucumber, and beetle
and fruit fly in cucumber.
The product ensures sustainable and long-standing management of yellow rust and higher yield,
Buonos 430 SC
FY2021 Fungicide powdery mildew diseases in wheat and leafspot disease in cabbage, with improved efficacy and higher
(Tebuconazole 430 SC)
yield. It gets absorbed by the plant to protect the newly developed shoots/leaves.
FY2021 Momiji Herbicide This herbicide is used to control the Phalaris minor—the main problematic weed in wheat
FY2021 Berdera Insectide This systemic insecticide works on sucking pests in rice crop such as brown plant hoppers.
FY2019 Regent Gold Insecticide This insecticide is used for controlling vector thrips in cotton
FY2019 VELUM prime Nematicide This product is a nematicide for healthy plants
FY2019 Infinito Fungicide This fungicide is used for control of late blight in potatoes
FY2019 Ambition Crop supplement This crop supplement enhances crop performance
FY2019 EverGol xtend Fungicide A fungicidal seed treatment product to control seed and seedling rot diseases
FY2019 Alion plus Herbicide This herbicide offers protection against foliar and pre-emergence control of weeds in tea plantations
FY2019 COUNCIL active Herbicide An early post-emergent herbicide for transplanted and wet DSR rice
Note:
(a) Excludes products launched in the recently divested Environmental Science division.
Source: Company Filings (FY2019-22
Bayer Cropscience
7
Performance of domestic agri-chem segment for key companies, FY2017 onward (Rs mn)
Exhibit 7: Bayer’s 5-year revenue CAGR is 11% over FY2017-22, but only ~5% when adjusted for the Monsanto acquisition
Annual 5-yearCAGR
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2017-22
Revenues
BASF 7,255 8,638 9,333 11,140 14,349 15,387 16.2%
Bayer Cropscience 28,028 27,099 30,930 36,094 42,613 47,334 11.0%
Dhanuka 8,816 9,626 10,058 11,201 13,874 14,778 10.9%
GAVL 7,647 8,818 9,875 10,964 11,401 11,974 9.4%
PI industries 8,971 8,220 9,724 9,000 12,553 13,090 7.8%
Rallis 14,005 14,984 15,608 15,180 16,848 18,107 5.3%
Syngenta 25,027 26,875 29,151 35,644 42,739 46,993 13.4%
UPL 29,630 31,890 33,020 38,280 46,770 56,900 13.9%
Source: Company reports
Exhibit 8: We cut FY2023-25E EPS by 12-16% to reflect near-term headwinds

New estimates Old estimates Change in estimates
2023E 2024E 2025E 2023E 2024E 2025E 2023E 2024E 2025E
Revenue 50,994 55,671 61,360 54,290 60,892 67,221 -6% -9% -9%
EBITDA 8,642 9,614 10,609 9,634 11,162 12,344 -10% -14% -14%
EBITDA margin (%) 17% 17% 17% 18% 18% 18%
PAT 6,327 7,139 7,899 7,176 8,474 9,384 -12% -16% -16%
EPS (Rs) 141 159 176 160 189 209 -12% -16% -16%
Source: Kotak Institutional Equities estimates
Exhibit 9: Our FY2023-25E EPS is 7-13% below consensus

Adjusted EPS
KIE vs Consensus
Year KIE Consensus
(Δ %)
Mar-22 134.0 134.5 (0.3)
Mar-23 140.9 151.4 (6.9)
Mar-24 159.0 177.5 (10.4)
Mar-25 175.9 202.0 (12.9)
Source: Bloomberg, Kotak Institutional Equities estimates
Bayer Cropscience
8
Exhibit 10: Summary financials of Bayer Crop Science, March fiscal year-ends (Rs mn, unless specified)
2017 2018 2019 2020 2021 2022 2023E 2024E 2025E
Profit model (Rs mn)
Revenues 28,028 27,099 31,673 36,094 42,613 47,344 50,994 55,671 61,360
EBITDA 4,136 4,094 4,811 7,264 8,117 8,111 8,642 9,614 10,609
Other income 701 388 531 660 638 546 567 592 599
Interest (69) (113) (104) (138) (126) (129) (174) (165) (162)
Depreciation (289) (331) (438) (653) (735) (645) (736) (738) (793)
Profit before tax 4,479 4,038 4,800 7,133 7,894 7,883 8,298 9,302 10,252
Extraordinary items — — — (1,302) (1,221) 585 1,007 — —
Tax expenses (1,569) (1,037) (1,429) (1,086) (1,742) (2,015) (2,210) (2,163) (2,353)
Reported PAT 2,910 3,001 3,371 4,745 4,931 6,453 7,095 7,139 7,899
Adjusted PAT 2,910 3,001 3,371 5,805 5,883 6,018 6,327 7,139 7,899
Adjusted EPS (Rs) 82 87 78 129 131 134 141 159 176
Balance sheet (Rs mn)
Equity 20,567 17,783 22,394 25,725 25,503 25,243 26,644 27,714 28,899
Borrowings — — — 15 — — — — —
Long-term liabilities 20 156 1 138 141 159 159 159 159
Current liabilities and provisions 7,667 7,409 13,097 12,479 16,749 18,127 19,463 21,149 23,179
Total liabilities 28,254 25,348 35,492 38,357 42,393 43,529 46,265 49,022 52,237
Net fixed assets 3,354 3,403 4,565 4,939 4,710 5,397 5,211 5,077 4,948
Investments/other long-term assets 307 302 398 575 479 2,435 2,435 2,435 2,435
Cash and cash equivalent 8,887 4,178 5,820 10,710 12,095 7,874 8,594 8,706 8,705
Current assets 15,706 17,465 24,709 22,133 25,109 27,823 30,026 32,804 36,149
Total assets 28,254 25,348 35,492 38,357 42,393 43,529 46,265 49,022 52,237
Free cash flow (Rs mn)
Operating cash flow 3,082 3,462 3,426 6,378 6,941 6,217 7,439 7,451 8,256
Working capital change (1,509) (2,248) 902 281 (74) (3,378) (868) (1,092) (1,315)
Capital expenditure (net) (493) (419) (4,505) (279) (312) (473) (550) (605) (665)
Free cash flow 1,080 795 (177) 6,380 6,555 2,366 6,022 5,754 6,276
Ratios (%)
EBITDA margin 14.8 15.1 15.2 20.1 19.0 17.1 16.9 17.3 17.3
Net debt/equity (X) (0.4) (0.2) (0.3) (0.4) (0.5) (0.3) (0.3) (0.3) (0.3)
Book value (Rs/share) 581 518 521 573 568 562 593 617 644
Adjusted RoAE 14.1 16.9 15.1 22.6 23.1 23.8 23.7 25.8 27.3
Adjusted RoACE 19.5 20.0 17.8 36.8 42.1 31.4 31.6 35.3 37.0
Source: Company, Kotak Institutional Equities estimates
Bayer Cropscience
UPDATE
TCS (TCS) ADD

IT Services
CMP(₹): 3,185 Fair Value(₹): 3,500 Sector View: Attractive NIFTY-50: 16,986 March 16, 2023
Out of the blue Company data and valuation summary

In a surprising development, Rajesh Gopinathan, MD & CEO, has decided to
Stock data
step down; he will continue until September 15, 2023 and help with the
CMP(Rs)/FV(Rs)/Rating 3,185/3,500/ADD
transition. K Krithivasan, Global Head-BFSI, has been appointed as CEO
52-week range (Rs) (high-low) 3,759-2,868
Designate. Krithivasan is first among equals in many ways in the
Mcap (bn) (Rs/US$) 11,654/141
organization. He handles a large BFSI portfolio of US$11 bn, has grown the
ADTV-3M (mn) (Rs/US$) 5,794/70
business consistently, involved in many strategic decisions and was among
front-runners for the CEO role, in our view, in the past. We have an ADD rating Shareholding pattern (%)
on the stock.
1.2
4.8
5.5
Resignation of CEO is a surprise, TCS has been a consistent performer 3.3
12.9
Rajesh Gopinathan was reappointed as TCS CEO in Feb 2022 for a five-year term
until Feb 2027. His resignation is abrupt and a surprise noting that his second
72.3
term still had four years remaining. Rajesh will stay with the company for the
next six months to aid the CEO Designate in the succession process before
leaving to pursue other interests, as per a company press release. Promoters FPIs MFs BFIs Retail Others
Price performance (%) 1M 3M 12M
Private Circulation Only. This document may only be distributed to QIBs (qualified institutional buyers) as defined under rule 144A of the Securities Act of 1933
Rajesh took over as CEO from Chandra in Feb 2017 after the latter was
Absolute (10) 0 (11)
appointed as the Chairman of Tata Sons. Under Chandra, TCS was in a position Rel. to Nifty (5) 7 (11)
of strength with leadership in various domains, early investments in digital and
products and platforms and strength in large deals. Rajesh built on a strong
Forecasts/Valuations 2023E 2024E 2025E
platform set by predecessors and further enhanced TCS’ positioning.
EPS (Rs) 115.7 129.9 148.1
EPS growth (%) 11.7 12.2 14.0
K Krithivasan, first among equals P/E (X) 27.5 24.5 21.5
Given the size of the portfolio handled by him, we would not be surprised if he P/B (X) 12.5 11.3 10.3
would have been a key candidate for CEO role in 2017. He handles a large EV/EBITDA (X) 18.7 16.8 14.8
portfolio of US$11 bn and grew the portfolio in a consistent manner. He may RoE (%) 45.9 48.4 50.0
Div. yield (%) 3.5 3.3 3.7
have been a regular contributor in strategic direction of the business. Normally,
Sales (Rs bn) 2,249 2,423 2,738
a new CEO appointment leads to the exit of disappointed front-runners. While
EBITDA (Rs bn) 595 660 745
exits are possible, it must be pointed out that Krithivasan was a clear front- Net profits (Rs bn) 424 475 542
runner in case Rajesh ever wished to step down. The question that we have Source: Bloomberg, Company data, Kotak Institutional Equities estimates
been asked is why appoint Krithivasan when age is not on his side; after all,
Prices in this report are based on the market close of
Krithivasan is 57 years old. Note that N Ganapathy Subramaniam (NGS) was March 16, 2023
appointed as TCS COO in Feb 2017 when he was 57 and has another two years
left in his tenure.
Profile of K Krithivasan
K Krithivasan is the President and Global Head of the BFSI business group at
TCS. He has over 34 years of experience in TCS. During his long tenure at TCS,
he has held various leadership roles in delivery, customer relationship
management, large program management and sales. Krithivasan is also a
member of the Board of Directors of TCS Iberoamerica, TCS Ireland and the
supervisory board of TCS Technology Solutions AG. He holds a Bachelor’s
degree in mechanical engineering from the University of Madras and a Master’s
degree in industrial and management engineering from IIT Kanpur.
Full sector coverage on KINSITE
Kawaljeet Saluja Sathishkumar S Vamshi Krishna

kawaljeet.saluja@kotak.com sathishkumar@kotak.com vamshi.krishna@kotak.com
+91-22-4336-0860 +91-22-4336-0879 +91-22-6166-1801
10
Exhibit 1: Key model assumptions, March fiscal year-ends, 2018-25E

2018 2019 2020 2021 2022 2023E 2024E 2025E
Average Exchange Rate 64.5 70.0 71.2 74.0 74.6 80.7 81.0 82.0
Revenues (US$ mn) 19,089 20,913 22,031 22,174 25,707 27,884 29,908 33,394
Revenue Growth (%) 8.6 9.6 5.4 0.6 15.9 8.5 7.3 11.7
C/c revenue growth 6.7 11.4 7.1 (0.8) 15.4 13.0 7.9 11.7
C/c organic revenue growth 7.2 11.4 7.1 (0.8) 15.4 13.0 7.9 11.7
Employees 394,998 424,285 448,464 488,649 592,534 620,550 667,429 720,823
Employee addition 7,775 29,287 24,179 40,185 103,885 28,016 46,879 53,394
Utilization rates 83.2 83.9 84.2 83.3 83.8 85.5 86.1 86.0
Exhibit 2: Key operating metrics

Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22
Revenues (US$ mn) 5,702 5,989 6,154 6,333 6,524 6,696 6,780 6,877 7,075
Revenues (Rs mn) 420,150 437,050 454,100 468,670 488,850 505,910 527,580 553,090 582,290
Exchange rate (Re/US$) 73.7 73.0 73.8 74.0 74.9 75.6 77.8 80.4 82.3
Revenue by geography (%)
North America 49.1 48.6 49.4 50.3 50.7 51.6 53.2 54.3 53.7
Latin America 1.7 1.6 1.6 1.6 1.7 1.7 1.8 1.7 1.8
UK 15.7 16.0 16.3 16.1 15.6 15.6 14.9 14.5 14.9
Continental Europe 16.2 16.8 16.7 15.9 16.0 15.5 15.2 14.5 14.8
India 5.6 5.6 4.6 5.1 5.5 5.1 4.8 5.1 5.1
Asia Pacific 9.7 9.4 9.3 9.0 8.6 8.5 8.3 8.0 7.9
MEA 2.0 2.0 2.1 2.0 1.9 2.0 1.8 1.9 1.8
Vertical split of revenues (%)- new classification
BFSI 31.3 32.2 32.5 32.4 32.1 31.9 32.1 31.9 31.5
Retail & CPG 14.5 14.5 14.8 15.0 15.1 15.4 15.9 15.9 15.7
Communication & Media 6.6 6.5 6.4 6.5 6.5 6.7 6.8 6.7 6.6
Manufacturing 9.6 9.6 9.8 9.9 9.9 10.0 9.9 9.9 9.9
Life sciences & healthcare 9.8 9.7 10.2 10.0 9.9 10.0 10.1 10.2 10.3
Technology & Services 8.6 8.4 8.6 8.8 8.7 8.7 8.8 9.0 8.9
Regional markets and others 19.6 19.1 17.7 17.4 17.8 17.3 16.4 16.4 17.1
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Client metrics
US$1 mn clients 1,077 1,096 1,118 1,138 1,175 1,182 1,196 1,210 1,217
US$5 mn clients 565 569 586 609 619 638 650 650 658
US$10 mn clients 386 387 405 417 426 439 446 455 456
US$20 mn clients 229 228 241 247 255 268 272 283 290
US$50 mn clients 97 101 105 114 118 120 124 124 130
US$100 mn clients 48 48 50 54 58 58 59 59 59
TCV of deal wins (US$ mn)
Total 6,800 9,200 8,100 7,600 7,600 11,300 8,200 8,100 7,800
North America 4,000 4,200 4,000 3,900 4,500 6,100 4,500 4,300 4,200
Financial services 2,600 3,900 2,200 2,100 2,900 3,200 2,600 2,300 2,500
Retail 980 1,400 1,500 1,200 1,000 2,600 1,200 1,600 1,200
Employee metrics
Total employees - incl Indian subsidiaries 469,261 488,649 509,058 528,748 556,986 592,195 606,331 616,171 613,974
Net addition 15,721 19,388 20,409 19,690 28,238 35,209 14,136 9,840 (2,197)
IT services attrition rate (%) 7.6 7.2 8.6 11.9 15.3 17.4 19.7 21.5 21.3
Source: Company, Kotak Institutional Equities
TCS
IT Services India Research
11
Exhibit 3: Profit model, balance sheet, cash model of TCS, March fiscal year-ends, 2018-25E (Rs mn)
2018 2019 2020 2021 2022 2023E 2024E 2025E
Profit model
Revenues 1,231,040 1,464,630 1,569,490 1,641,770 1,917,540 2,249,391 2,422,520 2,738,303
Cost of sales (712,880) (851,580) (923,220) (971,380) (1,146,210) (1,357,524) (1,442,352) (1,625,072)
SG&A expenses (213,140) (238,550) (260,470) (245,580) (286,800) (346,556) (371,156) (420,641)
EBIT 305,020 374,500 385,800 424,810 484,530 545,311 609,012 692,590
Other income 35,900 41,130 36,680 24,970 32,340 26,062 30,658 38,026
Pre-tax profits 340,920 415,630 422,480 449,780 516,870 571,374 639,670 730,617
Provision for tax (82,120) (100,010) (98,010) (114,580) (132,380) (146,367) (162,805) (187,012)
Recurring net income 258,800 315,620 324,470 335,200 384,490 425,006 476,865 543,604
Minority Interest (540) (900) (1,070) (1,320) (1,220) (1,497) (1,587) (1,587)
Extraordinary items — — — (9,580) — — — —
Reported net income 258,260 314,720 323,400 333,880 383,270 423,509 475,278 542,018
EPS (Rs) 67.5 83.1 86.2 89.3 103.6 115.7 129.9 148.1
Balance Sheet
Shareholders funds 872,410 915,560 862,400 885,550 912,590 933,765 1,028,821 1,137,225
Borrowings 540 440 — — — — — —
Minority interest 4,020 4,530 6,230 6,750 7,070 8,567 10,154 11,741
Other non-current liabilities 28,840 10,300 88,820 88,240 90,670 87,182 82,989 79,726
Total liabilities 905,810 930,830 957,450 980,540 1,010,330 1,029,514 1,121,964 1,228,691
Net fixed assets 116,000 116,500 199,320 197,680 197,160 193,457 207,316 226,012
Goodwill 38,840 38,340 38,500 39,480 39,350 39,350 39,350 39,350
Intangibles 120 1,790 2,830 4,800 11,010 11,010 11,010 11,010
Investments 3,010 2,390 2,160 2,130 2,230 2,230 2,230 2,230
Other non-current assets 94,185 74,920 69,700 73,780 83,270 83,270 83,270 83,270
Cash and bank balances 474,365 494,128 441,092 502,338 555,770 513,764 578,547 630,150
Net current assets excluding cash 179,290 202,762 203,848 160,332 121,540 186,433 200,242 236,669
Total assets 905,810 930,830 957,450 980,540 1,010,330 1,029,514 1,121,964 1,228,691
Cash flow
Operating cash flow, excl. working capital changes 248,820 295,040 362,630 362,360 415,710 448,950 497,009 557,771
Working capital (3,060) (23,120) (45,000) 23,777 (26,460) (61,721) (12,681) (34,370)
Net finance cost/ income 35,900 41,130 36,680 24,970 32,340 26,062 30,658 38,026
Cash flow from operations 281,660 313,050 354,310 411,107 421,590 413,291 514,986 561,427
Capital expenditure (18,060) (20,708) (33,150) (31,390) (29,640) (47,313) (64,660) (70,890)
Free cash flow 263,600 292,342 321,160 379,717 391,950 365,978 450,326 490,537
Ratios (%)
Gross profit margin 42.1 41.9 41.2 40.8 40.2 39.6 40.5 40.7
EBITDA margin 26.4 27.0 26.8 28.4 27.7 26.5 27.2 27.2
EBIT margin 24.8 25.6 24.6 25.9 25.3 24.2 25.1 25.3
EPS growth 1.1 23.1 3.8 3.7 16.0 11.7 12.2 14.0
RoAE 29.4 35.2 36.4 38.2 42.6 45.9 48.4 50.0
TCS
IT Services India Research
UPDATE
DLF (DLFU) BUY

Real Estate
CMP(₹): 360 Fair Value(₹): 430 Sector View: Attractive NIFTY-50: 16,986 March 16, 2023
Hits the ball out of the park Company data and valuation summary
DLF announced sales of Rs80 bn from its new project, i.e., The Arbour in
Stock data
Gurugram, with 95% of buyers identified as end-users. The project’s
CMP(Rs)/FV(Rs)/Rating 360/430/BUY
performance should be seen in the context of pre-sales of Rs66 bn in 9MFY23
52-week range (Rs) (high-low) 419-295
and Rs73 bn in FY2022. The strong showing should help allay concerns on
Mcap (bn) (Rs/US$) 891/11
the strength of the residential up-cycle in the face of rising interest rates. We
ADTV-3M (mn) (Rs/US$) 1,179/14
factor the stronger-than-anticipated sales trajectory in DLF’s numbers, and
maintain BUY with revised FV of Rs430/share (from Rs400/share). Shareholding pattern (%)
Exceptionally strong sales of Rs80 bn at DLF Arbour 1.3 0.9

4.3
3.7
DLF has announced sales of Rs80 bn from its new luxury project “The Arbour” 14.8
on Golf Course Extension in Sector 63, Gurugram. The project comprises 5
towers, with 1,137 units at a price point of Rs70 mn per unit. This project also
74.9
marks DLF’s entry into the Golf Course Extension micro-market in Gurugram.
We highlight that DLF had reported sales of Rs66 bn for 9MFY23 and Rs73 bn Promoters FPIs MFs BFI s Retail Others
for FY2022. Sales of Rs80 bn from a single project provide a significant bump-
Private Circulation Only. This document may only be distributed to QIBs (qualified institutional buyers) as defined under rule 144A of the Securities Act of 1933
up to our earlier sales estimates, and will once again make DLF the leader on Price performance (%) 1M 3M 12M
residential sales among listed peers. More importantly, strong sales should Absolute (3) (9) 1
prompt DLF to lay down its plans for the next leg of land monetization—a key Rel. to Nifty 3 (2) 1
catalyst for stock performance.

Forecasts/Valuations 2023E 2024E 2025E
EPS (Rs) 6.8 21.6 19.3
Residential real estate up-cycle taking higher interest rates in its stride
EPS growth (%) 7.8 215.9 (10.6)
DLF has highlighted that over 95% of buyers are individuals, who have bought P/E (X) 52.7 16.7 18.7
into The Arbour for their end usage, implying very strong residential real estate P/B (X) 2.4 2.1 1.9
demand, even in the face of higher interest rates. It is worth noting that these EV/EBITDA (X) 70.6 18.4 22.2
houses are all “4 BHK + study + utility” configuration, suggesting that the RoE (%) 4.6 13.4 10.7
Div. yield (%) 0.6 0.6 0.6
demand for bigger houses is still very robust (and was not just due to the work-
Sales (Rs bn) 51 121 111
from-home phenomenon). We did channel checks and were informed that there
EBITDA (Rs bn) 13 47 35
is no inventory for The Arbour available in the market presently. Although sales Net profits (Rs bn) 17 53 48
happened at Rs17,500–18,500 per sq. ft (premium to this micro-market),
Source: Bloomberg, Company data, Kotak Institutional Equities estimates
channel checks suggest that any inventory that may come into the market (very
few units, from some brokers) in the coming months is likely to be sold at > Prices in this report are based on the market close
of March 16, 2023
Rs20,000 per sq. ft. We highlight that social media and sales channels were
abuzz, with strong sales from the project by end-February, the company has
formally made the announcement only now.
Maintain BUY with revised fair value of Rs430/share

DLF has done well on new product launches and pre-sales, coupled with steady
de-leveraging of the balance sheet. Continuing monetization of the residual
land bank could add incremental value to the company—we expect to see
strong activity on this front in the next few quarters. We factor in accelerated
sales from The Arbour in our estimates, and maintain BUY with revised FV of
Rs430/share (from Rs400/share).
Full sector coverage on KINSITE
Murtuza Arsiwalla Abhishek Khanna

murtuza.arsiwalla@kotak.com abhishek.khanna2@kotak.com
+91-22-4336-0870 +91-22-4336-0869
13
DLF has reported sales of Rs66 bn for 9MFY23; we expect FY2023E sales to be over Rs140 bn
Exhibit 1: Quarterly sales for DLF, March fiscal year-ends, 1QFY20-3QFY23 (Rs bn)
Net sales
30 27
25
25
20 20 21
20
15
15
10 11 10
10 9
7 7 7
5 3
2
-
1QFY20
2QFY20
3QFY20
4QFY20
1QFY21
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
DLF Arbour is attractively located on Golf Course Extension in Sector 63, Gurugram
Exhibit 2: Location for The Arbour, Gurugram
Source: Company, Kotak Institutional Equities
DLF
Real Estate India Research
14
DLF trades at 2.9x adj. EV/ EBITDA for its residential business, much lower than its peak of 2021
Exhibit 3: Operating and financial metrics for real estate players, March fiscal year-ends, 2024E (Rs mn)
Brigade DLF Oberoi Prestige Sobha Sunteck Macrotech

Market cap. 104,198 891,236 310,589 160,445 50,240 43,753 412,435
Net debt 12,594 88,660 10,299 57,823 24,270 1,506 (8,524)
Enterprise value 116,793 979,896 320,888 218,268 74,510 45,260 403,911
Area (mn sq. ft) 10.33 40 6.05 19 1 11
Rate (Rs/sq. ft) 110 130 103 89 88 100
Rental 10,900 62,787 7,502 19,813 936 12,600
Annuity (Value) 61,375 421,536 139,005 108,915 10,928 45,349
Area (mn sq. ft) 36 177 24 205 322
Rate (Rs/sq. ft) 318 2,062 200 129 654
Land bank (Value) 11,432 365,030 4,739 26,440 210,620
Keys (#) 1,630 519 2,491
EBITDA 1,342 842 4,813
Hotel (Value) 18,789 27,000 8,419 31,783
EBITDA 1,223 1,597
Others 6,114 11,182
Residential (Value) 25,197 166,330 173,463 66,717 25,960 45,260 147,942
Residential (NAV) 21,510 147,815 107,097 72,784 25,315 57,925 191,259
Sales (Annual) 35,000 116,671 59,904 100,331 38,903 26,037 145,731
Margins 20 50 40 20 25 25 35
EBITDA 7,000 58,335 23,962 20,066 9,726 6,509 51,006
EV/EBITDA (X) 3.6 2.9 7.2 3.3 2.7 7.0 2.9
EV/Sales (X) 0.7 1.4 2.9 0.7 0.7 1.7 1.0
Premium / NAV 0.2 0.1 0.6 (0.1) 0.0 (0.2) (0.2)
Source: Companies, Kotak Institutional Equities estimates
Current market price implies land value of ~Rs440 bn, down 30% from peak in September 2021
Exhibit 4: Implied value of land based on market capitalization (Rs bn)
Development Leasing (DLF) Leasing (DCCDL) Hotel Land (Implied)

1,200
1,000
652
503
544
587
528
502
518
567
456
476
528
404
441
429
445
390
418
354
800
455
309
413
367
335
321
317
250
233
333
600
188
328
345
300
232
210
158
139
203
178
155
160
141
29
135
147
129
126
113
98
400
200
-
Jun-20
Jun-22
Jun-19
Jun-21
Oct-19
Dec-19
Oct-21
Dec-21
Oct-20
Dec-20
Oct-22
Dec-22
Apr-19
Apr-21
Apr-20
Apr-22
Aug-20
Aug-22
Aug-19
Aug-21
Feb-21
Feb-23
Feb-20
Feb-22
DLF
15
Healthy collections supported construction and land payments during past quarter
Exhibit 5: Cash flow for DLF (ex-DCCDL), March fiscal year-ends, 2020-3QFY23 (Rs mn)
2020 2021 1QFY22 2QFY22 3QFY22 4QFY22 2022 1QFY23 2QFY23 3QFY23 2023E 2024E
Collections 25,910 23,080 6,190 14,030 12,200 12,120 44,540 9,910 11,520 13,070 61,092 112,063
Rentals 2,510 2,020 120 450 610 770 1,950 810 1,000 910 2,336 2,453
Inflows 28,420 25,100 6,310 14,480 12,810 12,890 46,490 10,720 12,520 13,980 63,429 114,516
Construction (7,360) (9,050) (1,090) (1,170) (1,210) (2,230) (5,700) (1,970) (2,980) (2,980) (31,733) (39,143)
Finance (net of interest income) (7,590) (6,340) (1,080) (1,140) (720) (1,550) (4,490) (550) (660) (680) (2,809) (2,979)
Government/ Land Charges 160 (2,020) (1,050) (190) (1,720) (1,690) (4,650) (980) (1,730) (540) (4,000) (4,000)
Tax 90 3,780 310 (250) 740 1,210 2,010 600 (60) 50 (2,423) (13,117)
Overheads (8,340) (5,550) (1,490) (1,600) (1,590) (2,680) (7,360) (2,940) (2,520) (2,830) (10,874) (12,099)
Outflow (23,040) (19,180) (4,400) (4,350) (4,500) (6,940) (20,190) (5,840) (7,950) (6,980) (51,839) (71,339)
Operating cash flow 5,380 5,920 1,910 10,130 8,310 5,950 26,300 4,880 4,570 7,000 11,590 43,177
Capex (9,690) (2,090) (510) (590) (670) (530) (2,300) (670) (460) (680) (2,157) (2,173)
Net cash flow (4,310) 3,830 1,400 9,540 7,640 5,420 24,000 4,210 4,110 6,320 9,433 41,005
Net debt for DLF now stands at Rs21 bn, down Rs0.5 bn sequentially
Exhibit 6: DLF: Movement of debt, March fiscal year-ends, 1QFY20-3QFY23 (Rs bn)
1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 4QFY21 1QFY22 2QFY22 3QFY22 4QFY22 1QFY23 2QFY23 3QFY23
Opening gross debt 101.4 62.1 70.5 71.2 77.7 75.0 67.1 64.2 65.1 60.3 54.4 47.6 39.0 37.3 36.1
(less) Repayment during the quarter (17.8) (7.8) (6.8) (4.5) (2.8) (11.5) (2.9) (8.6) (4.8) (12.9) (6.9) (8.6) (1.7) (1.2) (0.7)
(add) New loans — 21.0 7.5 11.0 — 3.7 — 9.5 — 7.0 — — — — 3.0
Gross debt at the end of the quarter 83.7 75.4 71.2 77.7 75.0 67.1 64.2 65.1 60.3 54.4 47.6 39.0 37.3 36.1 38.4
(less) Equity shown as debt /JV co debt (22) (5) — — — — — — — — — — — — —
(less) Ind-AS impact — — — — — — — — — — — — — — —
Gross debt 62.1 70.5 71.2 77.7 75.0 67.1 64.2 65.1 60.3 54.4 47.6 39.0 37.3 36.1 38.4
(less) cash in hand (28.0) (25.9) (22.6) (25.1) (22.7) (15.0) (13.2) (16.3) (12.9) (14.6) (15.4) (12.2) (14.7) (14.7) (17.5)
Net debt (DLF) 34.2 44.6 48.7 52.7 52.3 52.2 51.0 48.9 47.5 39.9 32.2 26.8 22.6 21.4 20.9
Increase /(Decrease) (10.7) 10.4 4.1 4.0 (0.4) (0.1) (1.2) (2.2) (1.4) (7.6) (7.7) (5.4) (4.2) (1.2) (0.5)
Net debt (DCCDL) 175.6 179.8 181.7 180.1 178.9 181.0 180.9 191.9 190.7 196.4 192.6 190.6 188.0 192.6 183.9
DLF had launched 12.5 mn sq. ft of projects until 3QFY23

Exhibit 7: Land bank status, as of Dec 2022 (mn sq. ft)
1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 4QFY21 1QFY22 2QFY22 3QFY22 4QFY22 1QFY23 2QFY23 3QFY23
Gurgaon 106 104 104 104 104 104 69 69 69 69 69 69 69 69 69
Delhi Metropolitan Region 16 15 15 15 15 15 13 13 13 13 13 13 13 13 13
Chennai 18 12 12 12 12 12 12 12 12 12 12 12 12 12 12
Hyderabad 8 8 8 8 8 8 3 3 3 3 3 3 3 3 3
Chandigarh Tri-City 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16
Kolkata 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Others 35 35 35 35 35 35 35 35 35 35 35 35 35 35 35
Total 201 192 192 192 192 192 150 150 150 150 150 150 150 150 150
DLF
16
Upcoming projects with estimated sales value of ~Rs470 bn contributed Rs55/share (13%) to our NAV of Rs430/share
Exhibit 8: DLF: Composition of NAV for DLF, March 2024E (Rs mn)
Value Inventory
(Rs mn) (Rs/share) (%) (mn sq. ft) (Rs/sq. ft) (Rs mn) Receivable Cost GCF
DLF (ex-DCCDL)
Residential (Completed) 11,906 5 1 4 10,650 38,340 11,850 30,130 20,060
Residential (On-going) 135,909 55 13 36 13,232 469,750 175,700 294,050
Residential (Future) 184,769 75 17
Land bank: Phase 5, Gurgaon 91,800 37 9 15 6,000 91,800
Land bank: Rest of Gurgaon 98,550 40 9 66 1,500 98,550
Land bank: Rest of India 105,000 42 10 70 1,500 105,000
Lease Portfolio 29,457 12 3 2 87 2,441
Hotel (Lodhi, Hilton Saket) 27,000 11 3
Net debt 27,103 11 3
DLF (ex-DCCDL) 711,495 287 67
DCCDL
DCCDL 392,079 158 37 38 85 38,489
Land 69,680 28 7 26 4,000 104,000
Net debt (115,763) (47) (11) — — —
DCCDL 345,996 140 33
Fair Value (Rs mn) 1,057,491 427 100
Shares o/s (# mn) 2,475
Fair Value (Rs/share) 430
DLF
17
Exhibit 9: DLF: Profit model, balance sheet, cash model, March fiscal year-ends, 2019-25E (Rs mn)
2019 2020 2021 2022 2023E 2024E 2025E

Profit model
Net sales 83,661 60,828 54,141 57,174 51,086 121,036 111,246
EBITDA 21,415 11,350 14,178 17,426 12,785 47,063 35,370
Other income 6,633 8,054 5,308 4,205 2,582 2,486 2,550
Interest (20,619) (14,269) (8,534) (5,781) (4,167) (4,319) (4,319)
Depreciation (2,246) (2,003) (1,595) (1,494) (1,507) (1,507) (1,507)
Pre-tax profits 5,183 3,131 9,357 14,354 9,693 43,723 32,094
Tax (1,087) (2,167) (1,059) (595) (2,423) (13,117) (9,628)
Deferred taxation (1,565) (19,160) (2,564) (2,615) — — —
Net income 2,531 (18,195) 5,735 11,145 7,269 30,606 22,466
Share of profit from associates 9,458 8,895 6,053 6,567 9,645 22,826 25,299
Extraordinary items 1,273 3,403 (962) (2,244) — — —
Adjusted net income 13,108 (5,897) 10,825 15,694 16,914 53,432 47,764
Earnings per share (Rs) 6.0 (2.4) 4.4 6.1 6.8 21.6 19.3
Balance sheet
Total equity 335,765 344,467 353,439 363,623 375,587 424,068 466,882
Minority interests 406 184 203 195 195 195 195
Non-current liabilities 75,949 70,634 68,688 55,301 50,310 50,310 50,310
Current liabilities 257,104 157,012 125,766 105,915 220,014 215,297 225,049
Total liabilities and equity 669,224 572,298 548,097 525,034 646,105 689,870 742,435
Non-current assets
Net fixed assets 64,246 52,756 45,575 46,661 47,310 47,976 48,641
Other non-current assets and advances 57,435 50,287 46,304 42,213 41,570 41,611 41,547
Current assets 311,194 283,597 258,762 238,365 364,785 385,017 411,682
Investments 210,047 185,658 197,455 197,795 192,440 215,266 240,565
Total assets 642,922 572,298 548,097 525,034 646,105 689,870 742,435
Ratios (%)
Debt/equity 51 24 19 11 11 10 9
Net debt/equity 37 16 15 8 4 (6) (22)
RoE (%) 3.7 (1.7) 3.0 4.0 4.3 12.7 10.2
RoCE (%) 3.1 0.9 2.8 3.6 1.8 5.0 3.6
Book value per share (Rs) 152 139 143 147 152 171 189
DLF
UPDATE
Insurance
India
Sector View: Attractive NIFTY-50: 16,986 March 16, 2023
In mid-teens
Non-life insurance companies reported a 15% ex-crop premium growth in
February 2023 (down from 23% in January), driving 18% YTD growth. Motor Quick Numbers
premium growth remained moderate at 12%, similar to the past seven
months. Growth in retail health at 17% (15% YTD) was driven by SAHI and
Overall gross premium for general insurers (ex-crop)
private players (up 20%+), whereas PSUs were flat. Key gainers (on ex-crop up 14% yoy in February 2023
basis) were SBI GI and SAHI players (mostly Star Health), whereas losers
were ICICI Lombard and PSUs. ICICI Lombard was down 6% yoy (ex-crop Retail health up 17% yoy and motor up 12% yoy in
basis, translating to 17% YTD growth) due to a decline in motor TP. Star February 2023
Health was up 18% in retail health, 16% in the overall business.
Private insurers reported strong 20% yoy growth in
February 2023
Divergent trends in motor business
PSUs and private players both grew 12% in the overall motor business. SBI GI
almost doubled after a consistent decline in the past six months, translating to
12% YTD growth. ICICI Lombard was the key loser, down 33% yoy (up 5% YTD).
Interestingly, Go Digit was down 1% (first time in red), after a low growth of 2-
8% in the past two months, YTD growth is strong at 31%.
Private Circulation Only. This document may only be distributed to QIBs (qualified institutional buyers) as defined under rule 144A of the Securities A ct of 1933
In the OD business, high competition continues. PSUs were up 27% for the
second consecutive month (YTD 17%), whereas private players were up only
12% (17% YTD). ICICI Lombard was flat (up 1%) versus -2% to +3% over the past
four months. SBI GI continues to go slow in this segment (down 28%, down 13%
YTD). Go Digit remains aggressive, with 52% yoy growth (64% YTD); Bajaj Allianz
General Insurance was up 28% as compared with 15% in last month (15% YTD).
The motor TP segment grew 10% in February 2023, with 12% growth by private
players and 6% by PSUs. SBI GI has grown aggressively (185%) in the month ,
taking share from ICICI Lombard (down 64%). Notably, ICICI Lombard has been
volatile -27% to +12% growth over the preceding six months (7% YTD).
Interestingly, even Go Digit has been going slow in motor OD (down 17%, in the
red for third consecutive month, up 18% YTD).
SAHI and private players drive growth in retail and group health
Health premium were up 28% yoy, with 36% growth of private players and 21%
for PSU and 29% for SAHIs. In the retail health segment (up 17% yoy, 15% YTD),
SAHIs were up 23% and private players were up 21%; as PSUs were flat yoy. Star
Health reported 18% growth, similar YTD. ICICI Lombard moderated to 14% in
January and February 2023 from 21-27% in the preceding four months. SBI GI
and Tata AIG remain aggressive in the retail health segments, up 20% and 37% ,
respectively in February 2023 (YTD 37-38%). Bajaj Allianz has shown some
green shoots, with 19% growth, 5% YTD.
In the group business, SAHI’s stepped up 56% in February 2023 (40% YTD),
despite Star Health continuing to run down (down 7% in February 2023, down
37% YTD). Private players were up 53% (44% YTD). Most players grew
aggressively, SBI GI gained significant share with 91% yoy growth during the
month. Full sector coverage on KINSITE
Nischint Chawathe M B Mahesh, CFA Varun Palacharla Abhijeet Sakhare Ashlesh Sonje, CFA
nischint.chawathe@kotak.com mb.mahesh@kotak.com varun.palacharla@kotak.com abhijeet.sakhare@kotak.com ashlesh.sonje@kotak.com
+91-22-4336-0887 +91-22-4336-0886 +91-22-4336-0888 +91-22-4336-1240 +91-22-4336-0889
19
Overall gross premium for general insurers (ex-crop) up 14% yoy in February 2023
Exhibit 1: Segment-wise gross direct premium, March fiscal year-ends, February 2022-February 2023 (Rs mn)
yoy growth
Feb-23 Feb-22 (%) 11MFY23 11MFY22 yoy growth (%)
Fire 13,912 12,864 8 222,402 201,428 10
Marine 3,536 2,854 24 46,922 38,427 22
Marine hull 932 488 91 12,056 9,363 29
Marine cargo 2,604 2,366 10 34,866 29,064 20
Motor 74,964 66,865 12 728,600 630,521 16
Engineering 3,081 2,698 14 37,054 31,828 16
Health 68,323 53,326 28 819,958 661,676 24
Retail health 32,506 27,848 17 306,828 265,944 15
Group health 30,769 22,648 36 422,657 333,429 27
Government schemes 4,427 2,389 85 81,483 58,291 40
Overseas medical 621 441 41 8,991 4,012 124
Aviation 561 388 45 8,058 8,060 (0)
Liability 2,438 3,260 (25) 45,394 38,812 17
PA 4,601 5,591 (18) 63,674 60,819 5
Other 27,323 17,768 54 354,428 318,862 11
Crop insurance 22,124 12,662 75 293,723 266,538 10
Credit insurance 1,465 1,464 0 14,726 12,899 14
Others 3,734 3,642 3 45,979 39,425 17
Total 198,739 165,612 20 2,326,489 1,990,434 17
Total (ex motor ex crop) 101,651 86,086 18 1,304,166 1,093,375 19
Total ex crop 176,615 152,950 15 2,032,766 1,723,896 18
Source: IRDA, GI Council, Kotak Institutional Equities
Retail health up 17% yoy and motor up 12% yoy in February 2023
Exhibit 2: Segment-wise gross direct premium yoy growth, March fiscal year-ends, February 2022-February 2023 (%)
Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 11MFY22 11MFY23
Fire 37 (2) 15 11 9 8 14 4 13 9 7 9 8 8 10
Marine (23) 26 25 17 30 48 29 21 8 (7) 19 32 24 19 22
Marine hull (72) 13 14 (31) 44 122 70 16 16 (56) 55 92 91 (2) 29
Marine cargo 21 34 27 45 25 24 19 22 4 22 8 13 10 28 20
Motor 5 (83) 29 42 16 12 12 13 12 14 12 13 12 4 16
Engineering 17 12 16 12 24 5 42 23 20 13 10 7 14 21 16
Health 22 30 27 20 19 20 14 12 35 35 9 46 28 25 24
Retail health 14 22 10 9 14 16 19 16 12 21 18 15 17 16 15
Group health 41 38 33 29 16 34 23 3 51 44 8 36 36 28 27
Government schemes (24) 85 36 (4) 59 1 (68) 70 47 81 (44) 238 85 125 40
Overseas medical 96 166 186 510 662 313 169 129 87 29 10 45 41 68 124
Aviation (36) (9) (14) (41) 199 55 (44) (30) (3) (8) 17 (8) 45 15 (0)
Liability 56 32 43 57 42 36 39 18 (4) (6) 12 (14) (25) 33 17
PA 18 87 8 (10) (1) 134 (31) (18) 19 26 17 (8) (18) 31 5
Other (28) (7) 16 37 78 2 12 (18) 5 40 44 2 54 (3) 11
Crop insurance (37) (9) (39) 36 134 1 11 (21) 3 48 52 1 75 (9) 10
Credit insurance 12 9 252 (3) 12 (4) 42 5 2 25 8 3 — 5 14
Others 12 3 9 56 31 8 25 21 12 20 13 8 3 7 17
Total 7 (62) 24 25 21 16 12 3 19 22 15 19 20 11 17
Total ex crop 13 17 24 25 17 19 12 11 20 20 11 23 15 11 18
Insurance
India Research
20
Private insurers reported 20% yoy growth in February 2023

Exhibit 3: Company-wise gross direct premium, March fiscal year-ends, February 2022-February 2023 (Rs mn)
yoy growth yoy growth

Feb-23 Feb-22 (%) 11MFY23 11MFY22 (%)
General insurers
Acko General 1,177 771 53 13,359 8,658 54
Bajaj Allianz 9,348 8,126 15 142,178 126,787 12
Cholamandalam MS 5,866 4,368 34 55,715 43,279 29
Go Digit 4,617 4,963 (7) 54,915 41,787 31
HDFC ERGO General 14,773 11,091 33 146,716 117,319 25
ICICI -Lombard 13,381 14,155 (5) 194,665 165,260 18
IFFCO -Tokio 8,319 6,597 26 88,768 76,382 16
New India 23,188 22,450 3 315,817 299,617 5
Reliance General 6,754 6,332 7 95,433 85,616 11
Royal Sundaram 2,674 2,348 14 30,400 25,679 18
SBI General 13,961 9,177 52 96,071 81,133 18
Shriram General 2,154 1,574 37 20,064 15,710 28
Tata-AIG 11,256 9,281 21 117,973 89,005 33
United India 13,050 11,197 17 161,153 139,986 15
Universal Sompo 2,277 1,903 20 38,757 31,685 22
Others 29,947 26,674 12 371,098 316,266 17
Total 163,811 141,739 16 1,952,947 1,670,672 17
Total (PSU) 58,165 53,934 8 757,360 682,528 11
Total (private) 105,646 87,805 20 1,195,587 988,144 21
Standalone health insurers .
Max Bupa 3,730 2,464 51 35,207 24,310 45
Religare 4,578 3,361 36 45,965 33,991 35
Star Health 11,853 10,257 16 111,320 98,403 13
Others 1,221 830 47 11,949 8,616 39
Total 23,198 18,316 27 228,139 180,485 26
Specialised insurers
AIC (Crop) 10,771 4,510 139 135,162 129,952 4
ECGC (Export & Credit) 959 1,047 (8) 10,242 9,324 10
Total 11,730 5,557 111 145,404 139,276 4
Industry total 198,739 165,612 20 2,326,489 1,990,434 17
Insurance
India Research
21
SAHI players up 27% yoy and private GI players up 20% yoy in February 2023
Exhibit 4: Player-wise gross direct premium growth yoy, March fiscal year-ends, February 2022-February 2023 (%)
General insurers
Acko General 109 77 86 71 103 61 65 51 26 47 28 50 53 142 54
Bajaj Allianz 6 16 25 41 14 (6) (24) 20 25 62 8 16 15 8 12
Cholamandalam MS 8 10 45 60 29 21 17 23 17 23 31 33 34 10 29
Digit NM 51 140 86 61 51 47 38 19 10 9 (3) (7) 100 31
HDFC ERGO General (4) 26 27 36 25 21 54 (8) 5 47 48 17 33 8 25
ICICI -Lombard 9 19 20 34 36 29 21 2 22 19 9 16 (5) 4 18
IFFCO -Tokio 7 16 1 20 28 (12) (23) 27 21 26 49 40 26 (1) 16
New India 1 6 18 (0) 0 9 (1) (15) 3 6 (2) 42 3 15 5
Reliance General 13 7 20 20 21 12 11 — 11 10 22 6 7 14 11
Royal Sundaram (2) 12 17 18 18 6 12 19 26 31 26 17 14 0 18
SBI General 21 15 45 61 47 30 6 2 (7) 10 9 7 52 10 18
Shriram General (15) (13) 11 10 26 40 46 23 18 22 32 36 37 (19) 28
Tata-AIG 89 75 42 44 35 47 26 24 31 29 38 27 21 20 33
United India (6) 14 17 22 16 28 (7) 15 20 13 6 20 17 (8) 15
Universal Sompo 14 (8) 19 98 108 29 20 11 11 11 13 11 20 16 22
Total 10 14 23 25 20 19 9 (0) 18 26 13 24 16 8 17
Total (PSU) (2) 3 16 8 5 25 2 (14) 22 20 1 37 8 5 11
Total (private) 19 21 30 42 33 16 13 10 14 30 24 17 20 11 21
Standalone health insurers
Max Bupa 43 49 42 25 37 40 49 45 41 54 50 53 51 62 45
Care 46 53 38 49 56 38 39 40 20 47 22 19 36 51 35
Star Health 21 21 18 12 10 9 13 10 12 16 16 14 16 23 12
Total 28 29 29 24 33 24 28 24 20 34 23 27 27 33 26
AIC (Crop) (58) (26) (97) 33 (43) (19) 15 14 61 (95) 18 (14) 139 20 4
ECGC (Export & Credit) 2 13 NM (14) 6 (2) 19 1 2 15 5 8 (8) 3 10
Total (53) (22) 19 (2) (21) (19) 15 13 50 (79) 16 (13) 111 19 4
Industry total 7 13 24 25 21 16 12 3 19 22 15 19 20 11 17
Insurance
India Research
22
ICICI Lombard’s share down to 6.7% in February 2023 from 8.5% last year
Exhibit 5: Player-wise gross direct premium market share, March fiscal year-ends, February 2022-February 2023 (%)
General insurers
Acko General 0.5 0.5 0.5 0.6 0.7 0.5 0.6 0.6 0.6 0.6 0.6 0.5 0.6 0.4 0.6
Bajaj General 4.9 4.6 6.0 5.8 5.2 10.7 4.2 5.3 5.9 7.0 5.5 6.6 4.7 6.4 6.3
Cholamandalam MS 2.6 2.3 2.2 2.5 2.5 2.1 2.0 2.2 2.6 2.8 2.5 2.3 3.0 2.2 2.3
Go Digit 3.0 2.3 2.8 3.1 2.5 1.9 2.0 2.2 2.8 2.6 2.2 1.9 2.3 2.1 2.4
HDFC ERGO 6.7 8.1 6.1 5.6 5.3 5.0 8.5 7.4 6.2 6.0 6.7 4.9 7.4 5.9 6.3
ICICI -Lombard 8.5 6.7 11.1 9.3 8.9 8.4 6.8 6.8 9.8 9.3 7.5 8.1 6.7 8.3 8.4
IFFCO -Tokio 4.0 3.7 3.1 3.7 5.0 3.0 3.2 4.1 3.9 4.2 4.4 3.6 4.2 3.8 3.8
Magma HDI 1.0 0.8 0.9 1.0 1.1 0.9 0.7 0.8 1.2 1.2 1.0 1.3 1.0 0.8 1.0
National 5.8 6.1 5.5 5.0 6.6 6.4 4.9 4.6 9.3 8.4 5.3 4.5 4.7 5.9 5.9
New India 13.6 12.0 21.5 14.3 15.5 12.8 9.2 11.3 13.3 12.4 16.3 12.4 11.7 15.1 13.6
Oriental 6.5 5.6 6.1 7.3 6.9 7.6 3.6 7.5 5.2 6.0 6.0 6.0 6.4 6.3 6.2
Reliance General 3.8 3.9 4.5 4.1 4.9 3.4 3.3 7.0 3.9 3.9 4.0 3.0 3.4 4.3 4.1
Royal Sundaram 1.4 1.4 1.3 1.4 1.4 1.2 1.1 1.1 1.5 1.5 1.4 1.2 1.3 1.3 1.3
SBI General 5.5 4.8 2.8 3.5 3.5 2.9 6.1 4.6 2.9 3.3 3.1 5.1 7.0 4.1 4.1
Tata-AIG 5.6 5.2 5.4 5.7 5.0 4.9 3.6 4.4 5.7 5.5 5.4 5.1 5.7 4.5 5.1
United India 6.8 7.9 7.6 9.3 7.1 7.7 5.0 6.4 6.7 7.0 6.0 7.7 6.6 7.0 6.9
Universal Sompo 1.1 1.3 1.2 1.7 1.7 1.0 1.9 2.5 1.6 1.8 1.7 2.0 1.1 1.6 1.7
Total 85.6 81.9 82.8 88.1 87.8 84.0 69.9 83.2 87.8 88.7 83.6 80.5 82.4 83.9 83.9
Total (PSU) 32.6 31.6 40.8 35.9 36.0 34.4 22.6 29.8 34.5 33.8 33.6 30.6 29.3 34.3 32.6
Total (private) 53.0 50.3 42.0 52.2 51.8 49.6 47.3 53.4 53.2 54.9 50.0 49.9 53.2 49.6 51.4
Aditya Birla 0.8 1.0 0.8 1.1 1.6 0.9 0.8 1.0 0.9 1.1 0.9 1.3 0.9 0.8 1.0
HDFC ERGO Health — — — — — — — — — — — — — — —
Cigna TTK 0.5 0.6 0.5 0.5 0.5 0.4 0.4 0.5 0.6 0.6 0.5 0.5 0.6 0.4 0.5
Max Bupa 1.5 1.7 1.1 1.7 1.6 1.3 1.3 1.5 1.4 1.6 1.8 1.6 1.9 1.2 1.5
Reliance Health (5) — — — — — — — — — — — — — — —
Religare 2.0 2.2 1.7 2.2 2.2 1.8 1.8 1.9 1.8 2.2 2.1 1.9 2.3 1.7 2.0
Star Health 6.2 7.5 3.1 5.6 5.3 4.7 4.2 4.7 4.6 5.1 5.3 4.7 6.0 4.9 4.8
Total 11.1 13.0 7.3 11.1 11.3 9.2 8.4 9.6 9.2 10.5 10.6 10.0 11.7 9.1 9.8
AIC (Crop) 2.7 4.3 0.0 0.3 0.4 6.4 21.4 6.7 2.6 0.1 5.4 9.1 5.4 6.5 5.8
ECGC (Export & Credit) 0.6 0.8 0.3 0.5 0.6 0.4 0.3 0.5 0.4 0.6 0.5 0.4 0.5 0.5 0.4
Total 3.4 5.1 0.3 0.8 0.9 6.8 21.7 7.2 3.0 0.7 5.9 9.4 5.9 7.0 6.2
Industry 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Insurance
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23
Private GI players up 16% yoy on ex-crop basis in February 2023

Exhibit 6: Player-wise ex-crop gross direct premium growth yoy, March fiscal year-ends, February 2022-February 2023 (%)
General insurers
Acko General 109 77 86 71 103 61 65 51 26 47 28 50 53 142 54
Bajaj Allianz 6 20 25 41 10 (36) 10 18 17 10 9 16 15 16 8
Go Digit NM 51 140 86 61 51 47 38 19 10 9 (3) (7) 100 31
HDFC ERGO General 7 14 29 36 28 23 28 22 24 34 18 10 12 11 23
ICICI -Lombard 11 22 20 34 24 18 16 19 21 17 13 16 (6) 5 17
IFFCO -Tokio (0) 31 1 19 (10) 23 5 54 12 23 5 42 14 7 16
New India 1 7 18 (0) — 9 (1) 1 3 6 1 43 3 16 8
Reliance General 15 4 16 17 19 8 9 9 18 16 41 4 6 11 14
Royal Sundaram (2) 12 17 18 18 6 12 19 26 31 26 17 14 3 18
SBI General 6 12 43 67 40 29 (12) 14 (4) 5 8 1 57 17 19
Shriram General (15) (13) 11 10 26 40 46 23 18 22 32 36 37 (19) 28
Tata-AIG 89 75 42 44 35 48 26 24 30 29 38 27 21 21 33
United India (5) 17 17 22 14 28 (7) (2) 10 (4) 2 20 23 (3) 11
Universal Sompo (1) (47) 21 73 79 29 20 78 23 28 (31) (41) 24 48 18
Total 12 15 23 25 16 19 10 9 20 19 9 23 14 12 17
Total (PSU) 0 7 16 8 5 25 1 (6) 20 16 0 37 11 8 12
Total (private) 20 21 29 42 26 14 17 24 19 20 17 15 16 15 21
Max Bupa 43 49 42 25 37 40 49 45 41 54 50 53 51 62 45
Religare 46 53 38 49 56 38 39 40 20 47 22 19 36 51 35
Star Health 21 21 18 12 10 9 13 10 12 16 16 14 16 23 13
Total 28 29 29 24 33 24 28 24 20 34 23 27 27 33 26
Industry total 13 17 24 25 17 19 12 11 20 20 11 23 15 14 18
ICICI Lombard’s share down to 6.7% in February 2023 from 8.5% last year
Exhibit 7: Player-wise gross direct premium (ex-crop) market share, March fiscal year-ends, February 2022-February 2023 (%)
General insurers
Acko General 0.5 0.6 0.5 0.6 0.7 0.6 0.9 0.7 0.7 0.7 0.7 0.6 0.7 0.5 0.7
Bajaj General 5.3 5.4 6.0 5.9 5.5 5.5 5.3 6.4 5.8 5.1 5.2 5.8 5.3 6.1 5.6
Go Digit 3.2 2.6 2.8 3.2 2.7 2.3 3.0 2.7 3.0 2.8 2.5 2.3 2.6 2.4 2.7
HDFC ERGO 5.7 6.6 5.6 5.6 5.6 5.8 6.1 5.8 6.4 5.7 5.9 5.2 5.5 5.5 5.8
ICICI -Lombard 9.2 7.7 11.1 9.5 8.6 8.1 8.8 8.2 10.3 9.9 8.6 9.6 7.6 9.2 9.1
IFFCO -Tokio 4.0 4.3 3.1 3.8 3.7 3.5 4.4 5.1 3.7 3.8 3.5 3.7 4.0 3.9 3.8
Magma HDI 1.0 0.9 0.9 1.0 1.2 1.1 1.1 1.0 1.3 1.3 1.1 1.5 1.1 0.9 1.2
National 6.2 6.2 5.5 5.2 7.0 7.5 7.3 5.7 9.9 9.1 5.4 5.3 5.3 6.8 6.7
New India 14.7 12.4 21.6 14.6 16.4 15.1 13.9 14.1 14.1 13.5 18.6 14.7 13.1 17.0 15.5
Oriental 6.4 5.4 6.1 7.4 7.3 8.9 5.4 9.4 5.5 6.6 6.9 7.1 7.2 7.0 7.1
Royal Sundaram 1.5 1.6 1.3 1.4 1.4 1.5 1.7 1.4 1.6 1.6 1.6 1.5 1.5 1.5 1.5
SBI General 4.5 4.6 2.8 3.5 3.4 3.2 3.5 3.1 2.9 3.4 3.4 4.0 6.2 3.5 3.6
Tata-AIG 6.1 6.0 5.4 5.8 5.3 5.8 5.4 5.5 6.1 6.0 6.1 6.0 6.4 5.2 5.8
United India 6.9 9.1 7.6 9.4 7.4 9.1 7.5 6.8 6.6 6.5 6.7 9.1 7.4 8.1 7.6
Universal Sompo 1.1 0.9 1.2 1.4 1.4 1.1 1.4 1.5 1.2 0.9 1.0 0.8 1.2 1.2 1.2
Total 87.3 84.1 92.4 88.1 87.5 88.7 86.8 87.4 89.8 87.9 87.4 87.7 86.3 89.0 88.3
Total (PSU) 34.2 33.2 40.8 36.7 38.0 40.5 34.1 36.0 36.1 35.6 37.5 36.2 32.9 38.9 36.9
Total (private) 53.1 50.9 51.6 51.5 49.5 48.2 52.7 51.4 53.6 52.3 49.8 51.5 53.4 50.1 51.4
Aditya Birla 0.9 1.1 0.8 1.1 1.7 1.1 1.2 1.3 0.9 1.2 1.0 1.5 1.0 0.9 1.2
Max Bupa 1.6 2.0 1.1 1.7 1.7 1.6 1.9 1.8 1.5 1.7 2.1 1.9 2.1 1.4 1.7
Care 2.2 2.6 1.7 2.2 2.3 2.1 2.7 2.4 1.9 2.4 2.4 2.3 2.6 2.0 2.3
Star Health 6.7 8.6 3.1 5.7 5.6 5.5 6.3 5.9 4.8 5.5 6.1 5.5 6.7 5.7 5.5
Total 12.0 14.9 7.3 11.3 11.9 10.8 12.7 12.0 9.8 11.5 12.1 11.8 13.1 10.5 11.2
AIC (Crop) — — — — — — — — — — 0.0 0.0 0.0 — 0.0
ECGC (Export & Credit) 0.7 0.9 0.3 0.5 0.6 0.5 0.5 0.6 0.4 0.6 0.6 0.4 0.5 0.5 0.5
Total 0.7 0.9 0.3 0.5 0.6 0.5 0.5 0.6 0.4 0.6 0.6 0.4 0.5 0.5 0.5
Insurance
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24
Though motor premium grew at 12% yoy for industry, ICICI Lombard reported decline of 33% yoy in February 2023
Exhibit 8: Player-wise motor premium growth yoy, March fiscal year-ends, February 2022-February 2023 (%)
Acko General 73 58 75 60 34 34 32 32 31 23 16 24 27 91 31
Bajaj Allianz (0) 6 25 38 11 4 3 4 4 5 7 6 13 2 9
Go Digit 11 28 71 113 66 56 61 33 31 15 2 8 (1) 58 31
ICICI -Lombard 5 24 28 44 15 2 2 (36) 8 4 2 6 (33) (4) 5
IFFCO -Tokio (5) (19) 13 27 0 0 0 11 9 14 8 19 17 2 10
New India (1) 3 21 26 4 5 10 10 8 7 4 6 5 (7) 9
Reliance General 6 (2) 5 35 13 (7) (5) (4) 9 8 45 2 3 9 8
Royal Sundaram 1 12 32 27 13 11 14 24 30 47 32 16 11 1 23
SBI General (9) (18) 69 87 28 11 (13) (15) (40) (14) (1) (7) 95 24 12
Shriram General (17) (14) 7 9 26 41 46 23 17 18 29 34 34 (21) 27
Tata-AIG 133 72 44 49 25 27 20 22 14 18 44 62 21 13 30
United India (7) 1 17 25 (1) (3) 3 4 3 10 8 22 14 (6) 9
Universal Sompo 4 (53) 305 218 97 108 89 104 58 25 (45) (54) 10 63 35
Total 5 6 29 42 16 12 12 13 12 14 12 13 12 4 16
Total (PSU) (6) 0 15 20 (1) (0) 5 5 6 10 7 15 12 (7) 8
Total (private) 10 9 36 53 25 18 15 17 15 15 14 12 12 9 19
ICICI Lombard’s share in motor insurance down to 6.7% in February 2023 from 11.4%
Exhibit 9: Player-wise motor insurance market share, March fiscal year-ends, February 2022-February 2023 (%)
General insurers
Acko General 0.7 0.6 0.7 0.8 0.8 0.8 0.9 0.9 0.9 0.8 0.8 0.8 0.7 0.7 0.8
Bajaj General 6.4 6.8 6.9 6.6 6.7 6.6 6.5 6.5 6.5 6.3 6.5 6.2 6.5 6.9 6.5
Go Digit 5.1 4.9 4.9 4.6 4.8 4.4 4.9 5.2 5.5 4.8 4.2 4.4 4.5 4.2 4.8
HDFC ERGO 4.7 4.6 5.0 5.1 5.8 6.2 6.4 6.3 6.9 6.5 5.7 4.9 4.7 5.1 5.8
ICICI -Lombard 11.4 12.8 12.2 11.3 10.6 10.1 9.9 10.2 12.4 12.2 10.5 10.7 6.7 11.6 10.6
IFFCO -Tokio 5.3 4.7 4.4 4.9 4.6 4.7 5.1 5.1 5.3 5.3 5.5 4.9 5.6 5.3 5.1
Magma HDI 2.0 2.0 2.6 2.6 2.5 2.4 2.3 2.4 2.4 2.5 2.3 2.1 1.9 1.9 2.3
National 5.9 6.1 5.9 6.1 6.2 6.1 6.1 6.2 5.9 6.3 6.5 6.6 6.6 6.7 6.2
New India 11.8 11.0 11.3 11.3 11.2 11.2 11.5 11.5 10.3 10.4 11.5 11.2 11.0 11.8 11.1
Oriental 4.7 4.6 4.3 4.5 4.2 4.1 4.4 4.6 4.0 4.4 4.9 4.7 4.7 4.9 4.5
Royal Sundaram 2.8 3.1 2.8 2.8 2.9 3.0 3.2 3.2 3.2 3.2 3.2 2.9 2.8 2.8 3.0
SBI General 4.1 3.8 4.1 3.6 3.6 3.4 2.7 2.5 2.0 2.7 3.3 3.1 7.2 3.5 3.5
Tata-AIG 8.1 8.4 8.0 7.5 7.7 7.8 7.7 7.8 7.9 7.6 8.2 9.2 8.7 7.2 8.0
United India 7.7 7.3 7.3 7.6 7.2 7.0 7.2 7.4 6.7 7.3 7.6 7.9 7.8 7.8 7.4
Universal Sompo 1.8 1.6 2.2 3.1 3.1 2.9 2.8 2.9 2.4 1.6 1.6 1.5 1.7 2.0 2.3
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Total (PSU) 30.1 29.0 28.8 29.5 28.8 28.4 29.1 29.7 27.0 28.3 30.5 30.4 30.0 31.1 29.1
Total (private) 69.9 71.0 71.2 70.5 71.2 71.6 70.9 70.3 73.0 71.7 69.5 69.6 70.0 68.9 70.9
Insurance
India Research
25
Though motor OD premium grew at 15% yoy for industry, private players reported lower growth of 12% yoy in February 2023
Exhibit 10: Player-wise motor OD premium growth yoy, March fiscal year-ends, February 2022-February 2023 (%)
Feb-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 11MFY22 11MFY23
Acko General 83 79 54 40 52 49 53 50 44 40 37 40 87 47
Bajaj Allianz (5) 21 40 8 2 4 12 10 13 18 15 28 — 15
Cholamandalam MS 1 43 88 33 22 19 34 27 24 38 53 53 15 37
Go Digit 29 76 139 66 59 78 70 65 52 51 56 52 55 64
HDFC ERGO General (1) 20 45 28 30 42 51 53 55 35 20 19 2 37
ICICI -Lombard (5) 8 58 8 (6) (7) (45) 1 (2) (2) 3 1 (11) 3
IFFCO -Tokio (8) 9 25 (3) (2) 1 19 14 21 18 28 30 (2) 14
New India 6 30 37 11 12 20 26 29 20 15 17 17 (4) 20
Reliance General 7 15 40 13 (7) (9) 8 (0) (5) (2) (12) (19) 26 (1)
Royal Sundaram (3) 11 12 (6) (10) (2) (5) 7 10 21 2 1 (0) 3
SBI General 11 55 70 27 5 (11) (22) (37) (32) (34) (39) (28) 33 (13)
Shriram General (24) (3) (9) 2 22 29 21 25 15 27 30 35 (27) 19
Tata-AIG 11 41 46 23 25 20 21 19 11 17 20 19 11 22
United India (4) 26 29 2 3 10 11 11 13 20 42 32 (2) 18
Universal Sompo 113 328 299 57 75 52 67 30 (3) (17) (23) (19) 62 37
Total 5 27 26 36 8 11 18 16 13 12 13 15 4 17
Total (PSU) 4 20 (27) 127 (10) 7 15 20 18 18 27 27 (4) 17
Total (private) 5 29 57 20 13 12 19 15 11 11 9 12 7 17
ICICI Lombard’s share in motor OD down to 12.9% in February 2023 from 14.8%
Exhibit 11: Player-wise motor OD insurance market share, March fiscal year-ends, February 2022-February 2023 (%)
General insurers
Acko General 0.5 0.6 0.5 0.6 0.6 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.5 0.7
Bajaj General 6.9 7.3 7.4 7.3 7.0 7.6 7.2 7.2 7.1 7.1 7.5 7.2 7.6 7.4 7.3
Go Digit 3.3 3.2 3.7 3.8 3.7 4.0 4.3 4.2 4.5 4.3 4.1 4.4 4.3 2.9 4.1
HDFC ERGO 5.5 5.4 5.5 5.7 6.3 7.1 7.2 7.2 7.6 7.7 6.7 5.9 5.7 5.7 6.6
ICICI -Lombard 14.8 15.8 14.2 13.4 12.3 12.8 12.0 12.2 13.8 14.3 13.1 13.4 12.9 14.9 13.1
IFFCO -Tokio 6.1 5.5 5.2 5.8 5.3 5.8 6.0 6.2 6.2 6.1 6.4 5.8 6.8 6.1 6.0
Magma HDI 1.8 1.9 2.4 2.5 2.1 2.1 1.9 2.0 2.2 2.0 1.7 1.4 1.3 1.6 1.9
National 4.6 4.7 4.8 4.8 8.9 1.0 5.1 5.1 5.3 5.4 5.8 5.8 5.8 5.4 5.3
New India 10.1 9.3 9.7 9.3 9.2 10.1 10.1 10.0 9.7 9.7 10.5 10.4 10.3 9.6 9.9
Oriental 3.2 2.9 2.8 2.9 2.7 2.9 2.8 3.0 2.8 3.1 3.4 3.4 3.4 3.3 3.0
Royal Sundaram 3.3 3.4 3.0 3.2 3.1 3.2 3.6 3.3 3.4 3.2 3.6 3.1 2.9 3.7 3.3
SBI General 4.7 4.7 4.7 4.0 4.0 4.0 3.2 2.7 2.4 2.6 2.8 2.6 3.0 4.3 3.2
Tata-AIG 8.7 9.2 8.9 8.7 8.4 9.2 8.8 8.8 8.7 8.6 8.8 9.5 8.9 8.5 8.8
United India 5.2 4.9 5.0 5.0 4.7 5.1 5.0 5.0 4.9 5.4 5.5 6.2 5.9 5.2 5.3
Universal Sompo 3.1 2.6 3.1 4.3 4.1 4.0 3.5 3.8 3.1 2.2 2.1 2.0 2.2 2.6 3.0
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Total (PSU) 23.1 21.9 22.3 21.9 25.5 19.0 23.1 23.1 22.6 23.7 25.3 25.8 25.4 23.5 23.5
Total (private) 76.9 78.1 77.7 78.1 74.5 81.0 76.9 76.9 77.4 76.3 74.7 74.2 74.6 76.5 76.5
Insurance
India Research
26
Although motor TP premium grew at 10% yoy for industry, ICIC Lombard reported decline of 64% yoy in February 2023
Exhibit 12: Player-wise motor TP premium growth yoy, March fiscal year-ends, February 2022-February 2023 (%)
Feb-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 11MFY22 11MFY23
Acko General 68 73 62 32 27 25 24 23 15 7 18 21 92 25
Bajaj Allianz 3 29 37 13 6 1 (1) — — (1) 1 3 3 6
Cholamandalam MS 3 32 46 19 15 9 15 12 21 25 32 30 7 22
Go Digit 7 69 102 66 54 54 21 18 3 (14) (9) (17) 59 18
HDFC ERGO General 2 32 43 31 30 31 29 42 43 23 5 7 6 28
ICICI -Lombard 15 54 33 21 12 12 (27) 15 9 5 9 (64) 5 7
IFFCO -Tokio (4) 17 29 3 3 (0) 4 5 10 1 13 9 5 7
New India (4) 17 22 1 2 5 4 (1) 1 (1) 1 (1) (9) 3
Reliance General 6 (4) 30 14 (6) (1) (12) 17 17 108 10 17 (1) 14
Royal Sundaram 4 56 44 34 33 32 53 56 84 43 29 19 3 42
SBI General (20) 83 102 28 17 (15) (10) (43) (1) 33 21 184 17 35
Shriram General (14) 10 14 34 47 51 24 15 19 29 36 34 (19) 29
Tata-AIG 719 46 52 28 28 20 22 11 24 72 107 22 16 36
United India (7) 14 24 (3) (5) (0) 1 1 9 4 15 8 (8) 5
Universal Sompo (46) 278 155 185 162 154 165 107 76 (60) (67) 64 65 32
Total 5 31 55 6 15 13 11 10 14 12 13 10 3 15
Total (PSU) (10) 13 64 (25) 4 4 2 (0) 6 2 10 6 (8) 5
Total (private) 15 43 50 29 23 18 16 15 18 17 14 12 11 21
ICICI Lombard’s share in motor TP down to 3% in February 2023 from 9.4%

Exhibit 13: Player-wise motor TP insurance market share, March fiscal year-ends, February 2022-February 2023 (%)
General insurers
Acko General 0.7 0.7 0.9 0.9 0.9 0.9 1.0 1.0 1.0 0.9 0.9 0.9 0.8 0.8 0.9
Bajaj General 6.2 6.5 6.6 6.2 6.5 6.0 6.0 6.1 6.0 5.8 5.8 5.7 5.8 6.5 6.0
Go Digit 6.1 5.8 5.7 5.2 5.6 4.7 5.4 5.7 6.1 5.1 4.3 4.5 4.6 5.0 5.1
HDFC ERGO 4.3 4.1 4.6 4.6 5.5 5.6 5.9 5.8 6.4 5.9 5.1 4.3 4.1 4.7 5.3
ICICI -Lombard 9.4 11.1 10.8 9.8 9.4 8.5 8.5 9.0 11.4 10.9 8.8 9.1 3.0 9.6 8.9
IFFCO -Tokio 4.9 4.3 3.8 4.3 4.2 4.0 4.5 4.5 4.7 4.8 4.9 4.4 4.8 4.8 4.5
Magma HDI 2.1 2.1 2.7 2.7 2.8 2.6 2.6 2.6 2.6 2.8 2.7 2.5 2.3 2.0 2.6
National 6.7 6.8 6.7 7.0 4.4 9.3 6.8 6.8 6.4 6.8 7.0 7.0 7.0 7.5 6.9
New India 12.7 12.0 12.5 12.7 12.5 11.8 12.4 12.4 10.7 10.7 12.1 11.6 11.4 13.1 11.8
Oriental 5.6 5.6 5.4 5.6 5.3 4.9 5.4 5.6 4.9 5.2 5.8 5.5 5.4 5.9 5.4
Royal Sundaram 2.6 2.9 2.6 2.4 2.8 2.8 2.9 3.2 3.1 3.2 2.9 2.8 2.7 2.3 2.9
SBI General 3.8 3.3 3.6 3.3 3.3 3.0 2.4 2.3 1.7 2.8 3.6 3.4 9.8 3.1 3.6
Tata-AIG 7.7 7.9 7.3 6.8 7.2 6.9 6.9 7.2 7.3 7.0 7.8 9.1 8.5 6.3 7.5
United India 9.1 8.6 8.9 9.3 8.9 8.3 8.7 8.9 8.0 8.4 9.0 8.9 8.9 9.5 8.7
Universal Sompo 1.0 1.0 1.6 2.4 2.4 2.3 2.3 2.3 1.9 1.3 1.3 1.2 1.5 1.6 1.8
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Total (PSU) 34.1 33.1 33.4 34.6 31.1 34.3 33.3 33.7 30.0 31.2 33.9 33.1 32.8 36.0 32.8
Total (private) 65.9 66.9 66.6 65.4 68.9 65.7 66.7 66.3 70.0 68.8 66.1 66.9 67.2 64.0 67.2
Insurance
India Research
27
Health premium growth was strong at 28% in February 2023

Exhibit 14: Player-wise health premium growth yoy, March fiscal year-ends, February 2022-February 2023 (%)
General insurers
Acko General 191 94 90 65 222 107 108 49 19 132 41 98 95 290 84
Bajaj Allianz 22 82 27 74 21 (71) 25 49 47 16 15 31 17 49 (0)
Cholamandalam MS 36 27 50 35 78 40 31 23 35 20 43 19 64 (1) 38
Go Digit 405 24 195 (49) (21) 8 45 197 190 214 188 122 247 147 73
ICICI -Lombard 36 34 30 40 49 39 40 50 55 49 38 28 32 15 39
IFFCO -Tokio (15) 268 (22) 25 (41) 89 1 265 29 84 (8) 129 8 (2) 35
New India 21 (9) 27 2 (5) 10 6 8 (5) 16 (5) 104 18 38 13
Reliance General 84 37 28 (13) 31 67 67 55 62 59 64 36 16 12 37
Royal Sundaram (5) 3 32 56 4 8 9 (5) (2) (16) 12 32 14 11 14
SBI General 69 181 32 105 69 68 (36) 48 60 30 24 9 72 36 30
Shriram General (90) (88) (101) (83) (85) (83) (67) (78) (79) (68) (59) 24 144 176 (72)
Tata-AIG 39 57 80 88 84 81 32 48 19 69 34 38 35 33 52
United India (17) 38 22 25 26 59 (20) (4) 28 (18) (2) 29 65 (2) 19
Universal Sompo (23) (3) (5) (54) 57 (44) 19 191 74 0 (27) (17) 125 2 13
Total 18 31 27 19 14 19 9 8 41 35 4 53 28 22 23
Total (PSU) 11 9 26 9 7 36 1 (13) 43 32 (7) 69 21 22 19
Total (private) 28 60 30 35 29 (4) 18 57 38 42 29 34 36 24 30
Max Bupa 49 53 45 27 32 40 49 46 42 54 50 54 52 67 45
Care 44 50 35 44 58 40 44 48 23 56 29 27 48 50 40
Star Health 21 22 17 12 10 9 13 10 11 16 16 15 16 23 13
Total 29 29 29 23 32 24 29 25 20 35 25 29 29 33 27
Industry total 22 30 27 20 19 20 14 12 35 35 9 46 28 25 24
SAHIs share in overall health insurance flat yoy in February 2023

Exhibit 15: Player-wise health insurance market share, March fiscal year-ends, February 2022-February 2023 (%)
General insurers
Acko General 0.5 0.8 0.6 0.8 1.0 0.6 1.2 0.8 0.6 0.7 0.8 0.7 0.8 0.5 0.8
Bajaj General 3.0 3.4 3.4 4.8 2.8 3.3 3.1 6.2 3.9 2.7 2.7 3.4 2.7 4.4 3.6
Go Digit 0.4 0.4 1.0 0.8 0.6 0.5 1.0 0.9 0.9 1.0 0.9 0.8 1.1 0.6 0.9
HDFC ERGO 7.0 9.6 6.1 5.7 5.3 4.9 5.7 4.6 4.5 5.0 6.2 5.3 6.3 5.5 5.2
ICICI -Lombard 5.3 3.7 6.8 6.9 5.3 4.5 6.3 5.3 5.4 5.6 5.0 5.8 5.5 5.0 5.7
IFFCO -Tokio 1.8 4.2 1.7 2.3 2.0 2.7 3.4 5.0 1.6 1.7 1.3 2.7 1.6 2.2 2.4
Magma HDI 0.2 0.1 0.2 0.2 0.2 0.2 0.2 0.2 0.3 0.3 0.3 0.4 0.4 0.1 0.3
National 7.7 6.4 6.4 4.7 8.2 7.9 8.9 5.0 18.3 14.2 5.1 4.7 4.0 8.1 7.8
New India 16.1 9.1 32.0 14.7 19.2 18.9 14.9 15.0 17.1 16.3 24.6 18.0 14.8 20.8 19.0
Oriental 8.9 5.2 7.0 9.8 9.8 12.3 5.9 14.7 6.9 9.2 8.4 9.1 10.3 9.0 9.5
Royal Sundaram 0.5 0.5 0.5 0.8 0.5 0.5 0.6 0.3 0.4 0.3 0.4 0.5 0.4 0.5 0.5
SBI General 3.4 4.1 1.3 2.6 2.1 2.0 2.5 2.0 2.1 1.9 2.0 4.1 4.6 2.4 2.5
Tata-AIG 2.8 2.7 1.9 3.0 2.6 2.5 2.5 2.8 2.1 2.9 2.6 2.2 2.9 2.1 2.5
United India 5.2 10.1 9.7 10.6 6.7 11.0 7.3 6.0 6.6 5.4 5.9 11.2 6.7 8.4 8.1
Universal Sompo 0.2 0.2 0.6 0.2 0.4 0.2 0.3 0.7 0.2 0.2 0.2 0.2 0.4 0.4 0.3
Total 67.1 63.5 71.3 72.0 71.2 75.6 68.6 72.9 74.7 71.2 69.7 74.0 66.9 73.7 73.0
Total (PSU) 37.8 30.8 55.0 39.8 43.9 50.2 36.9 40.7 49.0 45.1 43.9 43.0 35.8 46.3 44.4
Total (private) 29.2 32.7 16.4 32.2 27.2 25.4 31.6 32.2 25.7 26.1 25.8 31.0 31.0 27.4 28.7
Aditya Birla 2.4 2.6 2.0 2.7 3.9 2.4 2.9 2.8 2.3 3.0 2.4 3.3 2.5 2.1 2.7
Max Bupa 4.5 5.0 2.6 4.4 4.2 3.6 4.8 4.2 3.9 4.3 5.3 4.2 5.4 3.6 4.2
Care 5.5 5.8 3.9 5.3 5.4 4.6 6.5 5.2 4.8 5.8 5.7 4.9 6.4 4.6 5.2
Star Health 18.9 21.5 7.5 14.4 13.9 12.6 15.8 13.6 12.8 14.1 15.5 12.3 17.1 14.7 13.4
Total 32.9 36.5 17.2 28.0 28.8 24.4 31.4 27.1 25.3 28.8 30.3 26.0 33.1 26.3 27.0
Insurance
India Research
28
Growth in retail health strong at 17% driven by 23% growth for SAHI players in February 2023
Exhibit 16: Player-wise retail health premium growth yoy, March fiscal year-ends, February 2022-February 2023 (%)
General insurers
Acko General (3) 100 NA (31) (32) 89 40 50 121 132 240 430 683 1,040 411 243
Bajaj Allianz (6) (4) (14) (15) (2) 3 13 9 13 9 9 10 19 5 5
Cholamandalam MS (44) (407) 82 81 104 59 34 40 37 40 46 40 61 10 53
Go Digit (2) 142 68 36 27 54 70 109 131 105 181 118 76 80 10 53
ICICI -Lombard 17 21 5 9 10 11 16 21 23 27 23 14 14 16 16
IFFCO -Tokio 5 (4) (22) (11) (12) 2 5 29 (2) 14 (4) (3) 2 (10) (1)
New India 1 (1) (5) (12) (3) (0) 3 4 (2) 7 2 9 1 4 —
Royal Sundaram 3 2 1 (20) (4) (0) 2 5 (0) (6) 9 5 3 4 (1)
SBI General 42 53 76 87 67 41 43 48 34 35 22 (1) 20 19 37
Tata-AIG 53 66 40 37 41 36 37 41 34 47 39 29 37 53 38
United India (4) (2) (5) (3) (3) (2) 2 1 (4) 4 (1) 3 1 2 (1)
Universal Sompo (6) (12) (1) (18) (16) (23) (16) (12) (8) 5 (8) (31) 2 (0) (12)
Total 4 10 0 (0) 5 6 10 10 6 15 9 10 10 7 8
Total (PSU) (0) (3) (6) (9) (4) (3) 2 2 (3) 6 (0) 5 1 2 (1)
Total (private) 9 27 9 10 17 16 19 20 17 25 20 16 21 12 17
Max Bupa 50 45 35 28 36 40 48 44 41 49 44 30 29 62 38
Care 29 31 16 17 25 23 24 19 16 33 25 27 40 34 24
Star Health 21 34 21 20 20 23 25 18 13 18 25 16 18 21 20
Total 26 34 22 20 22 25 29 22 18 26 28 20 23 27 23
Industry total 14 22 10 9 14 16 19 16 12 21 18 15 17 16 15
Star Health, in particular, and SAHIs, in general, maintain dominance in retail health segment
Exhibit 17: Player-wise retail health insurance market share, March fiscal year-ends, February 2022-February 2023 (%)
General insurers
Bajaj General 2.4 2.5 2.6 2.5 2.6 2.6 2.7 2.8 2.7 2.4 2.3 2.3 2.4 2.8 2.5
Go Digit 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.1 0.2 0.2 0.2 0.1 0.1 0.1
HDFC ERGO 9.9 10.9 10.1 9.8 9.6 9.3 9.4 9.2 9.4 9.5 9.8 9.6 9.6 9.9 9.5
ICICI -Lombard 2.9 2.7 3.0 2.9 2.9 2.9 3.0 2.9 3.0 3.0 2.9 2.9 2.8 2.9 2.9
IFFCO -Tokio 0.6 0.5 0.5 0.6 0.6 0.6 0.6 0.7 0.5 0.5 0.5 0.4 0.5 0.6 0.5
Magma HDI 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
National 7.3 6.1 7.9 6.8 6.5 6.3 6.5 6.2 5.4 6.1 6.0 6.1 6.1 7.4 6.3
New India 8.8 7.5 9.7 7.6 7.8 8.1 7.7 7.5 7.5 7.2 7.7 7.6 7.6 8.9 7.8
Oriental 5.5 4.5 6.1 5.1 5.0 4.9 5.0 4.7 4.7 4.9 5.1 4.9 5.0 5.8 5.0
Royal Sundaram 0.6 0.5 0.7 0.7 0.6 0.6 0.6 0.6 0.6 0.5 0.6 0.5 0.6 0.7 0.6
SBI General 1.8 1.6 1.3 1.5 1.7 1.6 1.8 1.8 1.7 1.8 1.6 1.3 1.8 1.4 1.6
Tata-AIG 1.7 1.8 1.8 2.0 2.0 1.8 1.8 1.8 1.7 1.8 1.9 1.9 1.9 1.6 1.9
United India 4.3 3.9 4.9 4.0 4.0 3.9 4.0 4.0 3.9 4.0 3.9 3.7 3.7 4.6 4.0
Universal Sompo 0.4 0.3 0.4 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.2 0.3 0.4 0.3
Total 48.8 45.3 49.1 47.3 46.9 46.3 46.6 46.2 45.3 46.0 46.1 45.2 46.2 49.9 46.6
Total (PSU) 25.8 22.0 28.6 23.6 23.2 23.2 23.2 22.5 21.5 22.2 22.6 22.3 22.3 26.8 23.1
Total (private) 23.0 23.3 20.6 23.7 23.6 23.1 23.4 23.7 23.8 23.8 23.5 22.8 23.8 23.1 23.5
Aditya Birla 2.3 2.2 2.4 2.5 2.5 2.5 2.6 2.4 2.2 2.2 2.2 2.3 2.4 2.2 2.4
Max Bupa 7.0 7.3 8.4 8.6 8.4 8.3 8.3 8.5 8.7 8.3 8.7 8.3 7.7 7.0 8.4
Care 6.8 6.8 8.0 7.0 7.3 7.3 7.2 7.3 7.5 7.6 8.0 8.6 8.2 7.1 7.7
Star Health 33.7 36.9 27.9 33.1 33.5 34.0 33.6 33.8 34.6 34.2 33.5 34.0 33.9 32.3 33.4
Total 51.2 54.7 50.9 52.7 53.1 53.7 53.4 53.8 54.7 54.0 53.9 54.8 53.8 50.1 53.4
Insurance
India Research
29
Growth in group health segment strong at 36% yoy in February 2023, with private GI and SAHI players growing at 53-56% yoy
Exhibit 18: Player-wise group health premium growth yoy, March fiscal year-ends, February 2022-February 2023 (%)
General insurers
Bajaj Allianz 33 44 39 6 20 36 26 35 60 18 40 46 27 26 35
Cholamandalam MS (112) (89) 21 (45) 5 (10) 24 0 41 (21) 50 (14) 91 (24) 6
ICICI -Lombard 46 39 32 42 57 46 39 55 64 58 47 31 40 13 44
IFFCO -Tokio 81 19 (21) 31 35 103 (3) 80 35 100 (9) 101 9 23 32
New India 32 75 33 25 (6) 24 14 9 (11) 18 (4) 30 25 34 13
Royal Sundaram (19) 2 53 200 10 15 15 (21) (4) (28) 18 53 37 20 30
SBI General 81 231 22 111 70 80 54 47 73 28 25 10 91 25 46
Tata-AIG 30 47 92 94 79 85 15 42 7 82 35 42 33 23 50
United India 27 22 19 32 (18) 33 (14) 45 (48) 63 (18) 16 (22) 17 6
Universal Sompo (66) 48 (5) (77) 167 (58) 63 445 559 (9) (46) 1 989 3 33
Total 40 45 32 29 11 36 22 (1) 55 40 7 32 32 28 25
Total (PSU) 31 45 30 24 (5) 25 18 (20) 59 33 (4) 20 17 28 15
Total (private) 54 45 36 38 53 55 28 50 48 54 38 40 53 26 44
Max Bupa 47 99 99 22 21 41 51 52 43 69 68 149 145 89 69
Care 76 97 57 80 108 60 67 104 31 104 44 29 65 80 64
Star Health 11 (55) (15) (44) (54) (60) (56) (43) (5) (9) (40) (3) (7) 38 (37)
Total 43 8 48 28 58 19 27 33 28 71 17 59 56 58 40
Industry total 41 38 33 29 16 34 23 3 51 44 8 36 36 31 27
Share of Star Health was down 100 bps in February 2023 in group health segment
Exhibit 19: Player-wise group health insurance market share, March fiscal year-ends, February 2022-February 2023 (%)
General insurers
Acko General 1.2 1.9 1.0 1.5 1.9 1.4 2.2 1.5 1.2 1.3 1.5 1.5 1.6 1.0 1.5
Bajaj General 3.3 2.9 4.2 3.1 2.9 4.2 3.3 8.1 5.3 3.1 2.9 5.8 3.1 4.0 4.3
Go Digit 0.8 0.8 1.5 1.4 1.0 1.1 1.7 1.6 1.6 1.7 1.6 1.6 2.2 1.1 1.5
HDFC ERGO 4.3 8.7 3.5 3.1 3.0 3.6 2.9 2.0 2.3 2.4 3.6 4.7 3.6 3.0 3.2
ICICI -Lombard 8.5 4.9 9.3 10.1 7.3 7.4 8.7 7.5 7.7 7.8 6.8 10.5 8.8 7.4 8.4
IFFCO -Tokio 3.7 2.5 2.6 3.9 3.4 5.4 5.9 4.0 2.6 2.7 2.0 4.7 2.9 3.4 3.6
Magma HDI 0.2 0.2 0.3 0.3 0.3 0.4 0.3 0.3 0.5 0.4 0.5 0.7 0.7 0.2 0.4
National 5.9 5.6 5.2 3.5 8.4 8.1 11.6 4.7 30.3 16.1 4.7 2.8 2.2 9.3 8.8
New India 27.0 24.9 37.2 21.8 30.9 21.3 23.6 23.2 13.1 24.8 41.0 18.8 24.9 29.1 26.0
Oriental 11.5 6.1 8.4 14.1 8.7 10.4 6.4 18.4 9.9 9.8 7.8 7.0 12.2 10.8 10.2
Royal Sundaram 0.4 0.4 0.6 1.0 0.5 0.6 0.6 0.2 0.3 0.2 0.4 0.7 0.4 0.5 0.5
SBI General 5.9 7.2 1.6 3.6 2.8 3.3 3.3 2.6 2.8 2.3 2.4 8.2 8.3 3.1 3.6
Tata-AIG 4.0 3.6 1.9 3.2 2.8 3.5 2.7 3.4 2.3 3.4 2.8 3.2 3.9 2.5 3.0
United India 4.1 11.2 7.4 12.8 5.8 11.8 6.1 4.7 3.6 4.8 5.2 4.3 2.3 7.4 6.2
Universal Sompo 0.1 0.1 0.8 0.1 0.5 0.2 0.4 1.1 0.2 0.1 0.1 0.2 0.5 0.4 0.4
Total 85.7 85.0 87.0 88.1 85.1 87.5 85.3 87.0 88.1 85.3 86.8 83.3 83.6 88.0 86.8
Total (PSU) 48.5 47.8 58.3 52.2 53.8 51.6 47.7 51.1 56.8 55.6 58.7 32.9 41.6 56.7 51.2
Total (private) 37.2 37.1 28.7 35.9 31.4 36.0 37.6 36.0 31.3 29.7 28.1 50.3 42.0 31.3 35.6
Aditya Birla 2.8 3.4 2.2 3.1 5.6 3.4 3.3 3.6 2.9 3.9 2.7 5.7 3.0 2.4 3.5
Cigna TTK 1.9 1.9 1.4 1.4 1.5 1.4 1.6 1.3 1.9 1.8 1.4 1.8 2.1 1.3 1.6
Max Bupa 2.1 2.3 0.9 1.6 1.8 1.6 2.1 1.9 1.6 2.1 3.0 3.1 3.7 1.6 2.1
Care 4.4 4.6 2.8 4.1 4.4 4.3 6.0 4.5 3.8 5.0 4.1 4.4 5.4 3.3 4.3
Star Health 3.1 2.7 0.9 1.8 1.6 1.7 1.7 1.8 1.7 1.9 2.1 1.7 2.1 3.4 1.7
Total 14.3 15.0 13.0 11.9 14.9 12.5 14.7 13.0 11.9 14.7 13.2 16.7 16.4 12.0 13.2
Insurance
India Research
30
Bajaj’s premium (ex-crop) up 15% yoy in February 2023

Exhibit 20: Segment-wise gross direct premium growth yoy for Bajaj Allianz, March fiscal year-ends,
February 2022-February 2023 (Rs mn)
Gross direct
premium (Rs mn) YoY growth (%) % of total
Feb-23 11MFY23 Feb-23 11MFY23 Feb-23 11MFY23
Fire 1,333 20,147 25 13 14 14
Marine 143 2,674 44 38 2 2
Marine hull 33 299 16,600 55 — —
Marine cargo 109 2,375 10 36 1 2
Motor 4,863 47,496 13 9 52 33
Engineering 240 2,739 6 18 3 2
Health 1,843 29,168 17 (0) 20 21
Retail health 779 7,701 19 5 8 5
Group health 949 18,044 27 35 10 13
Government schemes — 1,928 (100) (76) — 1
Overseas medical 115 1,495 66 146 1 1
Aviation 9 116 254 (17) — —
Liability 225 4,757 8 17 2 3
PA 174 2,108 2 15 2 1
Other 519 32,973 12 27 6 23
Crop insurance — 27,572 (100) 31 — 19
Credit insurance 21 160 239 40 — —
Others 498 5,241 13 8 5 4
Total 9,348 142,178 15 12 100 100
Total (ex-crop) 9,348 114,606 15 8
Chola’s premium (ex-crop) up 29% yoy in February 2023

Exhibit 21: Segment-wise gross direct premium growth yoy for Chola, March fiscal year-ends, February 2022-
February 2023 (Rs mn)
Gross direct
Fire 456 5,985 13 34 8 11
Marine 88 1,164 24 31 2 2
Marine hull 16 119 298 206 — —
Marine cargo 72 1,046 8 23 1 2
Motor 4,402 39,182 38 27 75 70
Engineering 23 262 5 (4) — —
Health 591 5,349 64 38 10 10
Retail health 521 4,407 61 53 9 8
Group health 69 1,049 91 6 1 2
Government schemes — (117) NM NM — (0)
Overseas medical 1 9 800 675 — —
Aviation — — NM NM — —
Liability 9 221 (26) 37 — —
PA 261 2,831 7 22 4 5
Other 35 721 (50) 30 1 1
Crop insurance — — NM NM — —
Credit insurance — — NM NM — —
Others 35 721 (50) 30 1 1
Total 5,866 55,715 34 29 100 100
Total (ex-crop) 5,866 55,715 34 29
Insurance
India Research
31
Go Digit’s premium (ex-crop) declined 7% yoy in February 2023

Exhibit 22: Segment-wise gross direct premium growth yoy for Go Digit, March fiscal year-ends, February
2022-February 2023 (Rs mn)
Gross direct
Fire 178 3,973 11 61 4 7
Marine 7 322 65 147 — 1
Marine hull — — NM NM — —
Marine cargo 7 322 65 147 — 1
Motor 3,344 34,634 (1) 31 72 63
Engineering 68 547 305 101 1 1
Health 733 7,014 247 73 16 13
Retail health 43 439 80 86 1 1
Group health 685 6,506 270 71 15 12
Government schemes — — NM NM — —
Aviation — — NM NM — —
Liability 78 6,415 (93) 9 2 12
PA 160 1,501 56 (35) 3 3
Other 50 508 140 248 1 1
Crop insurance — — NM NM — —
Credit insurance — — NM NM — —
Others 50 508 140 248 1 1
Total 4,617 54,915 (7) 31 100 100
Total (ex-crop) 4,617 54,915 (7) 31
HDFC ERGO’s premium (ex-crop) up 12% yoy in February 2023

Exhibit 23: Segment-wise gross direct premium growth yoy for HDFC ERGO, March fiscal year-ends, February
Gross direct
Fire 976 15,740 16 25 7 11
Marine 125 2,063 47 26 1 1
Marine hull 15 187 452 1 — —
Marine cargo 110 1,876 34 30 1 1
Motor 3,535 42,314 12 32 24 29
Engineering 143 1,857 71 6 1 1
Health 4,276 42,798 14 18 29 29
Retail health 3,137 29,163 14 11 21 20
Group health 1,120 13,352 15 35 8 9
Aviation 6 185 — 2 — —
Liability 269 5,105 72 47 2 3
PA 325 5,553 (33) 3 2 4
Other 5,119 31,101 102 30 35 21
Crop insurance 5,018 28,999 109 32 34 20
Credit insurance 30 788 (17) 51 — 1
Others 72 1,313 (26) (13) — 1
Total 14,773 146,716 33 25 100 100
Total (ex-crop) 9,756 117,716 12 23
Insurance
India Research
32
ICICI Lombard’s premium (ex-crop) declined 6% yoy in February 2023

Exhibit 24: Segment-wise gross direct premium growth yoy for ICICI Lombard, March fiscal year-ends,
February 2022-February 2023 (Rs mn)
Gross direct
Fire 1,919 29,706 21 11 14 15
Marine 491 7,052 14 18 4 4
Marine hull 90 736 42 24 1 —
Marine cargo 401 6,315 10 17 3 3
Motor 5,058 77,086 (33) (1) 38 40
Motor OD 3,642 37,503 1 (4) 27 19
Motor TP 1,415 39,583 (64) 2 11 20
Engineering 596 6,094 27 20 4 3
Health 3,746 46,339 32 39 28 24
Retail health 920 8,970 14 16 7 5
Group health 2,716 35,373 40 44 20 18
Aviation 78 1,684 (23) 31 1 1
Liability 404 7,695 16 28 3 4
PA 541 5,432 41 45 4 3
Other 548 13,578 36 4 4 7
Crop insurance 35 8,799 58 (11) — 5
Credit insurance 59 590 (2) 33 — —
Others 453 4,189 42 55 3 2
Total 13,381 194,665 (5) 13 100 100
Total (ex-crop) 13,346 185,867 (6) 14
SBI General’s premium (ex-crop) up 57% yoy in February 2023

Exhibit 25: Segment-wise gross direct premium growth yoy for SBI General, March fiscal year-ends, February
Gross direct
Fire 1,311 14,622 2 22 9 15
Marine 58 783 27 38 — 1
Marine hull — — NM NM — —
Marine cargo 58 783 27 38 — 1
Motor 5,401 25,144 95 12 39 26
Engineering 43 672 (33) 24 — 1
Health 3,144 20,336 72 30 23 21
Retail health 596 5,009 20 37 4 5
Group health 2,548 15,303 91 46 18 16
Government schemes — — NM (100) — —
Overseas medical 1 24 (57) 195 — —
Aviation — (1) (100) (164) — (0)
Liability 46 563 41 (1) — 1
PA 814 8,725 1 14 6 9
Other 3,143 25,227 34 16 23 26
Crop insurance 3,011 23,691 36 17 22 25
Credit insurance 29 278 (12) (8) — —
Others 103 1,258 12 4 1 1
Total 13,961 96,071 52 18 100 100
Total (ex-crop) 10,949 72,379 57 —
Insurance
India Research
33
Tata AIG’s premium (ex-crop) up 29% yoy in February 2023

Exhibit 26: Segment-wise gross direct premium growth yoy for Tata AIG, March fiscal year-ends, February
Gross direct
Fire 1,064 17,834 1 15 9 15
Marine 709 6,333 27 25 6 5
Marine hull 1 257 (72) 6 — —
Marine cargo 709 6,077 89 26 6 5
Motor 6,514 58,542 18 30 58 50
Engineering 185 1,563 75 26 2 1
Health 2,006 20,620 69 52 18 17
Retail health 631 5,718 47 38 6 5
Group health 1,211 12,511 82 50 11 11
Aviation 38 681 NM NM — 1
Liability 243 4,914 33 17 2 4
PA 187 4,177 190 64 2 4
Other 310 3,309 214 89 3 3
Crop insurance — (0) NM (101) — (0)
Credit insurance 63 880 78 29 1 1
Others 246 2,430 318 138 2 2
Total 11,256 117,973 29 33 100 100
Total (ex-crop) 11,256 117,973 29 33
Insurance
India Research
34
Kotak Institutional Equities: Valuation summary of KIE Universe stocks
Price (Rs) Fair Value Upside Mkt cap. O/S shares EPS (Rs) EPS growth (%) P/E (X) EV/EBITDA (X) P/B (X) RoE (%) Dividend yield (%) ADVT-3M
Company Rating 16-Mar-23 (Rs) (%) (Rs bn) (US$ bn) (mn) 2023E 2024E 2025E 2023E 2024E 2025E 2023E 2024E 2025E 2023E 2024E 2025E 2023E 2024E 2025E 2023E 2024E 2025E 2023E 2024E 2025E (US$ mn)
Automobiles & Components
Apollo Tyres SELL 309 285 (8) 196 2.4 638 15 20 23 53 28 19 20 16 13 7 6 5 1.6 1.5 1.3 8 10 11 1.2 1.3 1.5 11
Ashok Leyland ADD 140 160 14 410 5.0 2,936 3 7 9 516 113 30 42 20 15 18 12 9 5.0 4.3 3.7 12 24 26 1.0 2.0 2.6 18
Bajaj Auto REDUCE 3,800 3,625 (5) 1,100 13 283 202 219 237 22 8 8 19 17 16 14 13 12 4.4 4.1 3.9 22 24 25 4.3 4.6 5.0 15
Balkrishna Industries SELL 1,980 1,650 (17) 383 4.6 193 59 75 83 (21) 27 11 34 27 24 19 15 14 5.0 4.5 4.0 16 18 18 1.3 1.4 1.5 8
Bharat Forge REDUCE 789 850 8 367 4.4 466 13 32 40 (45) 150 24 61 24 20 22 14 12 5.3 4.5 3.8 9 20 21 0.8 0.8 0.9 13
CEAT SELL 1,428 1,200 (16) 58 0.7 40 42 85 109 115 102 28 34 17 13 9 6 6 1.7 1.6 1.4 5 10 12 0.8 1.3 1.4 2
Eicher Motors SELL 3,035 2,825 (7) 830 10.0 272 105 123 142 71 17 16 29 25 21 21 19 16 6.5 5.5 4.7 24 24 24 0.8 0.8 0.8 23
Endurance Technologies SELL 1,232 1,300 5 173 2.1 141 35 54 66 2 53 24 35 23 19 16 11 9 4.0 3.5 3.1 11 15 17 0.6 0.9 1.1 1
Escorts Kubota SELL 1,896 1,650 (13) 210 3.0 111 55 74 88 (27) 34 19 34 26 22 27 21 18 2.5 2.3 2.1 7 9 10 0.4 0.6 0.7 8
Exide Industries REDUCE 177 175 (1) 150 1.8 850 11 12 13 25 8 10 16 15 13 9 8 7 1.3 1.2 1.1 9 9 9 1.4 1.4 1.4 5
Hero Motocorp REDUCE 2,371 2,600 10 474 5.7 200 141 173 190 14 22 10 17 14 12 9 8 7 2.8 2.7 2.5 17 20 21 4.2 5.1 5.6 10
Mahindra CIE Automotive SELL 354 270 (24) 134 1.6 378 19 21 22 75 13 7 19 17 16 11 9 8 2.3 2.1 1.9 13 13 13 — — — 10
Mahindra & Mahindra BUY 1,167 1,535 32 1,451 17.5 1,159 63 68 78 43 9 13 19 17 15 13 12 10 3.0 2.6 2.3 17 17 16 0.8 0.9 1.0 36
Maruti Suzuki SELL 8,437 7,850 (7) 2,549 30.8 302 264 314 357 112 19 13 32 27 24 20 16 14 4.3 3.9 3.6 14 15 16 1.3 1.5 1.7 49
MRF SELL 83,141 63,000 (24) 353 4.3 4 1,621 3,091 3,940 3 91 27 51 27 21 16 10 9 2.4 2.2 2.0 5 9 10 0.1 0.2 0.2 9
Samvardhana Motherson ADD 69 95 39 464 5.6 6,776 2 4 5 175 77 33 31 17 13 9 7 6 2.1 1.9 1.7 7 12 14 0.9 1.0 1.1 14
Schaeffler India SELL 2,800 2,660 (5) 438 5.3 156 56 66 74 38 18 13 50 43 38 33 28 24 10.2 8.9 7.8 22 22 22 0.1 0.1 0.1 3
SKF SELL 4,274 3,550 (17) 211 2.6 49 111 126 140 38 14 11 39 34 31 26 24 21 9.1 7.4 6.2 23 22 20 0.4 0.4 0.5 2
Sona BLW Precision ADD 414 500 21 242 2.9 583 7 9 13 9 38 37 61 44 32 35 25 20 10.4 8.8 7.3 18 22 25 0.3 0.5 0.7 19
Tata Motors ADD 416 450 8 1,592 18.0 3,829 (5) 31 42 84 787 35 NM 13 10 8 4 3 3.6 2.8 2.2 NM 24 25 0.0 0.0 0.0 75
Timken SELL 2,831 2,400 (15) 213 2.6 75 51 68 82 18 34 20 55 41 34 39 28 23 10.8 8.8 7.3 21 23 23 0.1 0.1 0.1 3
TVS Motor SELL 1,054 830 (21) 501 6.0 475 31 36 42 67 16 16 34 29 25 18 16 14 8.6 7.2 6.0 28 27 26 0.9 0.9 1.0 19
Uno Minda ADD 472 575 22 271 3.3 571 12 15 17 89 23 19 40 33 27 22 18 15 6.6 5.6 4.7 16 17 17 0.3 0.4 0.4 3
Varroc Engineering ADD 277 350 26 42 0.5 153 (54) 17 24 26 131 42 NM 17 12 10 7 5 3.5 2.9 2.3 NM 18 20 — — — 1
Automobiles & Components Cautious 12,909 155.2 130.3 65.0 19.5 34.0 20.6 17.3 13.3 9.6 8.2 3.9 3.4 3.0 11.4 16.6 17.3 1.1 1.3 1.5 359
Banks
AU Small Finance Bank SELL 584 575 (2) 389 4.7 664 21 24 32 16 17 31 28 24 18 — — — 3.7 3.2 2.8 15 14 16 — — — 10
Axis Bank BUY 831 1,100 32 2,555 30.9 3,070 70 78 84 65 12 7 12 11 10 — — — 2.1 1.8 1.6 18 18 17 0.6 1.4 1.5 94
Bandhan Bank ADD 204 270 32 329 4.0 1,611 14 27 27 1,643 96 1 15 8 8 — — — 1.8 1.5 1.2 12 20 17 0.3 2.0 2.0 20
Bank of Baroda ADD 160 185 16 826 10.0 5,178 26 28 31 84 9 11 6 6 5 — — — 1.0 0.9 0.8 16 15 15 3.2 3.5 3.9 61
Canara Bank ADD 282 365 30 511 6.2 1,814 55 62 66 75 12 7 5 5 4 — — — 0.9 0.8 0.7 14 14 14 4.0 4.5 4.9 37
City Union Bank REDUCE 130 170 31 96 1.2 740 13 14 17 28 9 20 10 9 8 — — — 1.5 1.3 1.1 14 14 15 2.0 2.2 2.6 8
DCB Bank BUY 98 140 43 31 0.4 311 15 20 23 60 35 16 7 5 4 — — — 0.8 0.7 0.6 11 14 14 2.4 3.2 3.7 2
Equitas Small Finance Bank ADD 65 65 1 72 0.9 1,110 5 7 9 110 40 43 14 10 7 — — — 1.5 1.3 1.1 11 13 17 — — — 4
Federal Bank BUY 127 160 26 269 3.3 2,103 14 14 18 52 5 22 9 9 7 — — — 1.3 1.2 1.1 14 13 15 2.2 2.3 2.8 22
HDFC Bank BUY 1,552 1,800 16 8,658 104.6 5,546 79 82 105 19 4 28 20 19 15 — — — 3.2 2.6 2.3 17 17 16 1.2 1.2 1.6 146
ICICI Bank BUY 824 1,070 30 5,752 69.5 6,950 46 47 53 38 2 13 18 17 16 — — — 3.0 2.6 2.3 18 16 16 1.1 1.1 1.3 140
IndusInd Bank ADD 1,018 1,350 33 790 9.5 775 92 107 125 54 17 17 11 9 8 — — — 1.5 1.3 1.2 14 15 15 1.3 1.5 1.8 48
Karur Vysya Bank BUY 98 125 27 79 0.9 800 14 17 20 61 27 15 7 6 5 — — — 1.0 0.9 0.8 14 15 16 3.6 4.6 5.2 5
Punjab National Bank ADD 48 58 21 529 6.4 11,011 3 7 9 8 106 33 14 7 5 — — — 0.7 0.6 0.5 4 8 10 1.4 2.9 3.9 58
SBI Cards and Payment Services BUY 728 960 32 688 8.3 943 23 26 39 36 13 49 31 28 19 — — — 7.0 5.7 4.4 25 23 27 0.2 0.2 0.3 10
State Bank of India BUY 525 725 38 4,681 56.6 8,925 55 59 61 55 7 4 10 9 9 — — — 1.6 1.4 1.3 16 15 14 1.7 2.1 2.4 101
Ujjivan Small Finance Bank ADD 24 33 35 48 0.6 1,955 5 5 6 304 (1) 14 5 5 4 — — — 1.2 1.0 0.8 29 21 20 0.0 0.0 0.0 3
Union Bank ADD 65 90 40 441 5.3 6,835 11 14 15 39 29 10 6 5 4 — — — 0.7 0.6 0.6 11 12 12 4.1 5.3 5.8 21
YES Bank SELL 15 17 14 428 5.2 28,751 0 1 1 (31) 90 84 51 27 15 — — — 1.1 1.1 1.0 2 4 7 0.0 0.0 0.0 57
Banks Attractive 27,172 328.3 45.4 18.6 15.6 13.5 11.4 9.8 1.9 1.5 1.4 14.0 13.5 13.9 1.3 1.7 2.0 846
Source: Company, Bloomberg, Kotak Institutional Equities estimates
India Research
35

Capital goods
ABB BUY 3,328 3,425 3 705 8.5 212 33 49 60 69 49 23 101 68 55 70 51 41 14.3 12.0 10.0 15 19 20 0.1 0.1 0.2 12
Bharat Electronics REDUCE 92 98 7 672 8.1 7,310 4 4 5 17 10 7 24 22 20 16 14 13 4.8 4.4 4.0 21 21 20 1.9 2.1 2.3 18
BHEL SELL 76 37 (51) 263 3.2 3,482 (0) 1 3 (137) 238 386 NM 125 26 (75) 50 15 1.0 1.0 0.9 NM 1 4 (0.2) 0.3 1.1 18
Carborundum Universal BUY 973 1,070 10 185 2.2 190 20 28 35 16 39 25 48 35 28 29 21 17 6.9 6.0 5.1 15 18 20 0.4 0.6 0.7 2
Cochin Shipyard BUY 437 620 42 57 0.7 132 39 41 45 (13) 5 10 11 11 10 5 4 4 1.2 1.2 1.1 11 11 12 3.2 3.4 3.6 5
Cummins India BUY 1,658 1,810 9 460 5.6 277 43 52 63 43 22 22 39 32 26 36 29 23 8.6 7.8 6.1 23 26 26 1.4 1.7 0.0 12
G R Infraprojects SELL 1,030 1,070 4 100 1.2 97 87 91 107 11 5 18 12 11 10 8 8 7 1.9 1.6 1.4 18 16 16 0.0 0.0 0.0 1
IRB Infrastructure BUY 27 34 25 164 2.0 6,039 1 2 2 128 27 28 20 16 12 9 8 8 1.4 1.7 2.3 7 10 16 9.7 15.0 19.6 15
Kalpataru Power Transmission BUY 562 640 14 91 1.1 164 29 44 58 45 53 31 20 13 10 8 6 5 2.0 1.7 1.5 10 14 16 0.5 0.7 0.8 2
KEC International BUY 469 530 13 121 1.5 257 10 29 39 (35) 210 31 49 16 12 17 9 8 3.1 2.7 2.3 7 18 20 0.2 0.7 0.9 2
L&T ADD 2,174 2,260 4 3,055 36.9 1,405 76 101 122 25 33 20 28 21 18 20 16 14 4.1 3.8 3.4 15 18 20 1.5 1.9 2.3 56
Siemens SELL 3,264 2,900 (11) 1,162 14.0 356 51 58 70 43 15 20 64 56 47 45 39 32 9.0 8.0 7.1 15 15 16 0.4 0.5 0.6 14
Thermax BUY 2,254 2,470 10 269 3.2 113 42 60 73 53 43 20 53 37 31 41 28 23 40.7 28.3 23.3 13 18 20 1.1 1.5 1.9 1
Capital goods Attractive 7,303 88.2 23.0 30.8 22.6 35.1 26.8 21.9 21.9 17.6 14.9 4.2 3.9 3.6 11.9 14.6 16.4 1.2 1.7 1.9 159
Commercial & Professional Services
SIS BUY 347 480 38 51 0.6 147 22 24 29 (1) 11 21 16 14 12 11 9 8 2.1 1.9 1.6 14 14 15 0.0 0.0 0.0 0
TeamLease Services REDUCE 2,425 2,275 (6) 41 0.5 17 68 77 101 197 12 32 35 32 24 32 26 20 5.1 4.4 3.7 15.6 15.0 16.8 — — — 1
Commercial & Professional Services
Neutral 92 1.1 19.7 11.3 24.1 21.0 18.9 15.2 15.4 12.5 10.1 2.9 2.5 2.1 13.7 13.2 14.1 0.0 0.0 0.0 1
Commodity Chemicals
Asian Paints REDUCE 2,893 2,800 (3) 2,775 33.5 959 42 52 55 28 24 6 69 56 53 45 37 34 18.0 16.1 18.2 28 30 32 0.9 1.1 1.3 37
Berger Paints REDUCE 604 510 (16) 586 7.1 971 10 13 14 13 34 3 62 46 45 38 30 28 13.1 11.2 9.8 22 26 23 0.7 0.9 0.9 4
Indigo Paints REDUCE 1,055 1,190 13 50 0.6 48 23 31 34 31 36 8 46 34 31 27 21 19 6.7 5.8 5.1 16 18 17 0.5 0.7 0.9 1
Kansai Nerolac REDUCE 397 410 3 214 2.6 539 10 12 13 40 29 7 41 32 30 25 20 19 4.8 4.5 4.2 12 15 15 1.1 1.6 2.0 1
Tata Chemicals BUY 959 1,210 26 244 2.9 255 85 88 89 71 4 1 11 11 11 6 5 5 1.2 1.1 1.0 11 11 10 1.7 2.0 2.0 11
Commodity Chemicals Cautious 3,870 46.8 36.2 19.9 4.6 49.9 41.6 39.8 30.7 25.9 24.6 8.6 7.8 7.6 17.2 18.7 19.1 0.9 1.2 1.3 55
Construction Materials
ACC REDUCE 1,750 1,950 11 329 4.0 188 58 96 134 (40) 65 39 30 18 13 13 10 8 2.2 2.1 1.9 8 12 15 1.7 2.8 3.8 24
Ambuja Cements SELL 379 340 (10) 752 9.1 2,105 13 14 21 (10) 8 47 29 27 18 11 7 6 2.4 1.9 1.7 9 8 10 0.6 0.8 1.1 85
Dalmia Bharat ADD 1,789 2,075 16 335 4.1 185 43 74 96 (30) 70 30 41 24 19 13 10 8 2.0 1.9 1.7 5 8 10 0.4 0.6 0.8 6
Grasim Industries ADD 1,560 1,700 9 1,027 12.4 658 114 135 149 5 18 10 14 12 10 8 6 6 1.2 1.1 1.0 9 10 10 0.5 0.7 0.8 12
J K Cement SELL 2,785 2,300 (17) 215 2.6 77 69 110 131 (22) 60 19 40 25 21 18 13 11 4.5 3.9 3.3 12 16 17 0.4 0.4 0.4 4
Nuvoco Vistas Corp ADD 327 410 25 117 1.4 357 (0) 13 20 (117) 8,503 54 NM 25 16 12 8 - 1.3 1.3 1.2 NM 5 7 0.0 0.0 0.0 1
Orient Cement REDUCE 108 125 15 22 0.3 205 6 12 12 (53) 105 (5) 18 9 9 7 6 7 1.4 1.2 1.1 8 15 12 1.8 1.8 1.8 1
Shree Cement SELL 25,473 16,750 (34) 919 11.1 36 408 711 795 (38) 74 12 62 36 32 29 19 17 5.0 4.4 4.0 8 13 13 0.2 0.4 0.5 16
The Ramco Cements SELL 717 560 (22) 169 2.0 236 13 30 40 (66) 136 33 56 24 18 20 12 10 2.5 2.2 2.0 4 10 12 0.2 0.4 0.6 3
UltraTech Cement REDUCE 7,105 6,350 (11) 2,051 24.8 289 194 301 354 (1) 55 17 37 24 20 19 14 12 3.7 3.3 2.9 11 15 15 0.4 0.6 0.7 33
Construction Materials Cautious 5,937 71.7 (12.0) 44.1 21.0 29.4 20.4 16.9 13.5 10.0 8.3 2.5 2.1 1.9 8.3 10.3 11.3 0.5 0.8 0.9 185
India Research
36

Consumer Durables & Apparel
Aditya Birla Fashion and Retail BUY 215 345 60 204 2.5 965 1 4 6 182 311 48 225 55 37 13 9 8 5.7 4.0 3.6 3 9 10 — — — 7
Crompton Greaves Consumer ADD 286 340 19 182 2.2 636 7 9 11 (27) 30 21 42 32 27 26 22 19 6.7 5.8 5.0 17 19 20 0.9 0.9 0.9 6
Havells India SELL 1,185 1,075 (9) 742 9.0 627 17 23 29 (12) 38 27 71 51 40 47 34 27 11.3 10.2 9.0 17 21 24 0.6 0.8 1.0 11
Page Industries SELL 37,090 35,000 (6) 414 5.0 11 559 683 831 16 22 22 66 54 45 45 36 30 32.8 28.5 24.9 53 56 60 1.1 1.5 1.8 11
Polycab REDUCE 2,877 2,810 (2) 431 5.2 149 82 92 106 44 12 16 35 31 27 24 21 18 6.7 5.8 5.1 20 20 20 0.7 0.8 0.9 13
TCNS Clothing Co. SELL 452 460 2 28 0.3 69 2 10 15 313 452 53 249 45 29 19 13 10.0 4.6 3.9 3.3 2 9 12 — — — 1
Vedant Fashions REDUCE 1,141 1,150 1 277 3.3 248 16 19 23 30 16 20 69 60 50 43 37 30 20.7 16.5 13.1 33 31 29 — — — 2
Voltas SELL 881 800 (9) 291 3.5 331 12 19 24 (22) 59 26 74 46 37 49 33 28 5.2 4.9 4.5 7 11 13 0.6 0.6 0.8 14
Whirlpool SELL 1,341 1,240 (8) 170 2.1 127 19 26 37 2 32 44 69 52 36 38 29 20 4.8 4.4 4.0 7 8 11 0.2 0.3 0.4 2
Consumer Durables & Apparel Cautious 2,740 33.1 9.0 34.8 25.0 61.1 45.3 36.3 32.1 25.4 20.9 8.6 7.4 6.5 14.1 16.3 18.03 0.6 0.7 0.9 66
Consumer Staples
Britannia Industries ADD 4,311 4,775 11 1,038 12.5 241 79 92 106 24 17 15 55 47 41 38 33 29 37.2 30.1 25.5 70 71 67 1.5 1.9 2.1 16
Colgate-Palmolive (India) ADD 1,500 1,630 9 408 4.9 272 37 42 46 (8) 15 10 41 36 32 27 24 22 23.3 22.1 21.1 57 64 67 2.3 2.7 2.9 6
Dabur India ADD 535 600 12 947 11.4 1,768 11 12 14 2 16 13 51 44 39 40 36 31 10.3 9.3 8.5 21 22 23 1.1 1.3 1.5 14
Godrej Consumer Products BUY 932 1,020 9 954 11.5 1,023 17 21 24 (2) 25 12 54 43 39 39 31 27 7.9 7.4 7.0 15 18 19 1.2 1.6 1.9 11
Hindustan Unilever ADD 2,459 2,825 15 5,778 69.8 2,350 43 50 56 15 18 13 58 49 44 40 34 30 11.4 10.9 10.5 20 23 25 1.5 1.8 2.0 44
ITC ADD 381 430 13 4,738 57.2 12,412 15 17 18 22 11 10 26 23 21 19 17 15 7.4 7.4 7.0 28 31 34 3.4 3.7 4.1 55
Jyothy Labs ADD 182 220 21 67 0.8 367 7 9 10 59 26 9 26 21 19 20 15 13 4.2 3.7 3.4 17 19 19 1.7 1.9 2.5 1
Marico REDUCE 489 525 7 632 7.6 1,290 10 12 13 5 15 13 49 42 38 34 30 26 18.6 18.4 18.2 38 44 49 2.0 2.3 2.6 7
Nestle India ADD 18,451 20,700 12 1,779 21.5 96 248 311 350 0 25 12 74 59 53 48 39 35 72.3 64.1 64.2 105 115 121 1.2 1.5 1.9 12
Tata Consumer Products ADD 694 770 11 645 7.8 922 11 15 17 5 30 19 62 48 40 34 29 25 4.1 3.9 3.8 7 8 10 1.0 1.1 1.2 10
United Breweries ADD 1,454 1,625 12 384 4.6 264 16 28 36 19 69 30 88 52 40 50 33 26 9.4 8.5 7.8 11 17 20 0.8 1.4 1.9 4
United Spirits ADD 776 925 19 565 6.8 727 13 15 19 (5) 17 23 60 51 42 38 34 28 8.4 7.7 7.1 16 16 18 0.6 0.9 1.3 10
Varun Beverages BUY 1,306 1,500 15 848 10.2 650 23 30 36 116 30 21 57 44 36 32 24 21 16.6 12.5 9.6 33 33 30 0.3 0.3 0.3 23
Consumer Staples Attractive 18,783 226.9 16.4 16.6 12.6 43.9 37.6 33.4 30.9 26.5 23.5 10.5 10.0 9.4 24 27 28 1.8 2.1 2.4 212
Diversified Financials
360 One BUY 433 530 22 154 1.9 359 19 20 24 (71) 9 16 23 21 18 — — — 4.8 4.4 4.1 22 22 23 3.2 3.5 4.1 1
Aavas Financiers ADD 1,735 2,150 24 137 1.7 79 52 62 74 14 20 19 34 28 23 — — — 4.3 3.7 3.2 14 14 15 0.0 0.0 0.0 3
ABSL AMC ADD 356 460 — 102 1.2 288 21 24 27 (8) 12 11 17 15 13 — — — 4.2 3.8 3.4 NM NM NM 3.6 4.0 4.5 0
Aptus Value Housing Finance ADD 244 330 — 121 1.5 497 10 11 13 29 15 16 25 22 19 — — — 3.6 3.1 2.6 15 15 15 0.0 0.0 0.0 1
Bajaj Finance REDUCE 5,715 6,150 8 3,460 41.8 603 191 231 276 64 21 20 30 25 21 — — — 6.4 5.2 4.2 24 23 22 0.3 0.4 0.5 84
Bajaj Finserv ADD 1,294 1,525 18 2,060 24.9 1,592 48 60 75 69 25 24 27 21 17 — — — 5.0 4.2 3.5 19 21 22 0.1 0.1 0.1 37
Cholamandalam ADD 747 875 17 614 7.4 821 30 35 45 14 18 27 25 21 17 — — — 4.7 4.0 3.3 19 19 20 0.3 0.4 0.5 13
Computer Age Management Services SELL 2,165 2,050 (5) 106 1.3 49 57 68 81 (2) 18 20 38 32 27 — — — 14.0 12.0 10.3 40 41 42 1.7 2.0 2.4 2
Five Star Business Finance ADD 528 700 33 154 1.9 291 20 25 31 29 25 24 26 21 17 — — — 3.6 3.1 2.6 15 16 16 — — — —
HDFC BUY 2,532 3,050 20 4,640 56.1 1,813 83 95 108 10 14 14 30 27 23 — — — 3.5 3.2 2.8 12 13 13 1.0 1.1 1.3 89
HDFC AMC REDUCE 1,683 2,100 25 359 4.3 214 66 76 87 0 17 14 26 22 19 — — — 5.9 5.3 4.8 24 25 26 2.5 2.9 3.4 8
Home First Finance BUY 671 1,000 49 59 0.7 88 25 29 35 33 16 20 27 23 19 — — — 3.3 2.9 2.5 13 13 14 — — — 2
L&T Finance Holdings REDUCE 86 90 5 213 2.6 2,474 8 8 9 88 (0) 16 11 11 9 — — — 1.0 0.9 0.8 8 9 10 0.0 1.7 2.1 9
LIC Housing Finance BUY 347 525 51 191 2.3 550 48 68 75 15 44 10 7 5 5 — — — 0.9 0.8 0.7 10 13 13 2.8 4.0 4.4 9
Mahindra & Mahindra Financial ADD 242 265 9 299 3.6 1,233 16 18 23 97 17 27 15 13 10 — — — 1.9 1.7 1.6 12 13 15 2.9 1.5 1.9 10
Muthoot Finance BUY 930 1,225 32 373 4.5 401 89 111 131 (9) 24 18 10 8 7 — — — 1.8 1.5 1.3 18 19 20 1.9 2.4 2.8 6
Nippon AMC ADD 216 280 30 134 1.6 622 11 13 14 (5) 15 11 19 17 15 — — — 3.8 3.7 3.6 20 23 25 4.7 5.5 6.0 1
Shriram Finance BUY 1,250 1,700 36 468 5.7 373 170 192 224 70 13 16 7 7 6 — — — 1.1 1.0 0.9 18 15 16 2.1 2.3 2.7 16
UTI AMC BUY 660 880 33 84 1.0 127 36 43 49 (14) 20 13 18 15 14 — — — 2.2 2.1 2.1 12 14 16 3.3 5.2 5.9 3
Diversified Financials Attractive 13,730 165.9 34.1 19.0 18.2 23.2 19.5 16.5 3.4 3.0 2.6 14.7 15.2 15.7 0.9 1.0 1.2 296
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Electric Utilities
CESC BUY 69 100 45 91 1.1 1,326 10 12 14 (7) 29 10 7 6 5 6 5 4 0.7 0.7 0.6 10 12 12 5.8 7.2 7.7 2
JSW Energy SELL 255 130 (49) 419 5.1 1,640 7 8 11 13 5 42 35 33 23 15 14 10 2.3 2.2 2.0 7 7 9 0.8 0.8 0.8 4
NHPC ADD 41 47 16 408 4.9 10,045 4 4 5 6 11 17 11 10 8 10 9 6 1.1 1.1 1.0 11 11 12 5.5 5.9 6.9 6
NTPC ADD 180 186 4 1,742 21.0 9,895 18 20 23 9 9 13 9.8 8.9 8 8 7 6 1.2 1.1 1.0 13 13 13 3.8 4.2 4.5 25
Power Grid BUY 232 255 10 1,619 19.6 6,975 22 24 24 12 10 3 10.8 9.8 10 7 6 6 2.0 1.8 1.7 19 19 18 5.8 6.0 6.0 26
Tata Power SELL 203 192 (6) 650 7.9 3,196 11 8 10 44 (26) 22 19 26 21 13 12 11 2.5 2.3 2.1 14 9 10 — — — 25
Electric Utilities Attractive 4,929 59.6 11.6 7.2 10.8 11.5 10.7 9.7 8.0 7.5 6.5 1.5 1.4 1.3 13.2 13.1 13.4 3.9 4.2 4.4 88
Fertilizers & Agricultural Chemicals
Bayer Cropscience REDUCE 4,031 4,050 0 181 2.2 45 141 159 176 5 13 11 29 25 23 20 18 16 6.8 6.5 6.3 24 26 28 3.1 3.4 3.7 1
Godrej Agrovet REDUCE 408 440 8 78 0.9 192 13 18 24 (40) 40 32 31 22 17 17 14 11 2.7 2.5 2.3 9 12 14 1.9 1.9 2.5 0
Rallis India REDUCE 193 220 14 38 0.5 195 8 11 12 (1) 31 12 23 18 16 13 10 9 2.1 2.0 1.8 9 11 12 1.8 2.1 2.3 1
UPL ADD 696 830 19 523 6.3 751 60 64 77 21 5 20 12 11 9 6 6 5 2.0 1.8 1.6 17 16 16 1.4 1.8 2.2 18
Fertilizers & Agricultural ChemicalsCautious 820 9.9 9.6 10.4 17.5 16.0 14.5 12.3 7.8 6.9 5.9 2.5 2.2 2.0 15.5 15.2 15.9 1.9 2.2 2.5 20
Gas Utilities
GAIL (India) REDUCE 110 95 (13) 720 8.7 6,575 9 9 9 (43) 4 (1) 12 12 12 10 10 9 1.2 1.2 1.1 10 10 10 4.3 4.6 4.9 20
GSPL BUY 274 375 37 155 1.9 564 14 12 13 (20) (11) 3 20 22 21 8 9 8 1.7 1.6 1.6 9 8 7 1.1 1.2 1.5 3
Indraprastha Gas BUY 428 495 16 299 3.6 700 25 28 31 14 12 10 17 15 14 13 11 10 3.7 3.3 2.9 24 23 22 1.6 2.1 2.6 8
Mahanagar Gas BUY 987 1,100 11 98 1.2 99 77 80 82 27 4 2 13 12 12 8 8 7 2.4 2.1 1.9 20 18 17 2.7 2.8 3.0 5
Petronet LNG REDUCE 237 215 (9) 356 4.3 1,500 17 20 23 (17) 17 15 14 12 11 8 7 6 2.3 2.2 2.0 18 19 20 4.0 4.7 5.9 6
Gas Utilities Attractive 1,628 19.7 (29.6) 6.7 4.7 14.0 13.1 12.5 9.5 8.9 8.2 1.7 1.6 1.5 12.3 12.3 12.2 3.3 3.7 4.2 41
Health Care Services
Apollo Hospitals BUY 4,319 5,520 28 621 7.5 144 67 97 132 13 46 35 65 44 33 29 23 19 9.6 8.1 6.7 16 20 22 0.2 0.3 0.5 24
Aster DM Healthcare BUY 230 285 24 115 1.4 500 9 12 15 (5) 34 27 26 19 15 8 7 6 2.6 2.4 2.1 11 13 15 — — — 1
Dr Lal Pathlabs SELL 1,867 1,610 (14) 156 1.9 83 30 37 47 (31) 21 29 61 51 39 29 26 21 9.4 8.6 7.7 16 18 21 0.7 0.9 1.1 7
KIMS BUY 1,342 1,735 29 107 1.3 80 40 48 55 (4) 20 15 34 28 24 18 15 12 6.3 5.1 4.2 21 20 19 0.0 0.0 0.0 1
Max Healthcare ADD 464 490 6 451 5.4 970 14 13 15 49 (4) 14 34 36 31 28 24 21 5.6 4.9 4.3 18 15 15 0.0 0.0 0.0 8
Metropolis Healthcare REDUCE 1,262 1,340 6 65 0.8 51 29 36 46 (26) 24 29 44 35 27 22 19 16 6.6 5.9 5.1 16 18 20 0.7 0.8 1.1 4
Narayana Hrudayalaya ADD 806 815 1 165 2.0 204 27 26 30 63 (5) 17 29 31 27 18 18 15 8.0 6.4 5.2 32 23 21 — — — 2
Rainbow Children's Medicare ADD 733 840 15 74 0.9 96 21 24 28 47 14 14 35 30 27 19 16 13 9.1 7.2 5.9 30 27 24 0.4 0.5 0.6 1
Health Care Services Attractive 1,754 21.2 17.4 16.4 23.6 41.7 35.8 29.0 22.0 18.6 15.7 6.8 5.8 4.9 16.2 16.2 17.0 0.2 0.2 0.3 47
Hotels & Restaurants
Devyani International REDUCE 145 170 17 175 2.1 1,204 2 2 2 50 (5) 20 66 70 58 26 21 18 18.6 14.7 13.1 33 23 24 0.0 0.0 0.0 3
Jubilant Foodworks ADD 425 530 25 281 3.4 660 6 8 10 (3) 23 24 66 54 43 23 19 16 12.2 10.2 8.4 20 21 21 0.2 0.2 0.2 12
Lemon Tree Hotels REDUCE 77 82 7 61 0.7 791 1 2 4 226 51 92 55 36 19 18 13 8 7.0 6.6 5.5 13 19 31 1.1 1.5 1.9 4
Restaurant Brands Asia ADD 91 115 26 45 0.5 493 (1) (0) 1 36 68 239 NM NM 169 24 15 11 2.4 2.4 2.4 NM NM 1 0.0 0.0 0.0 1
Sapphire Foods BUY 1,160 1,550 34 74 0.9 64 18 19 24 148 4 30 64 61 47 16 14 11 6.6 5.9 5.3 11 10 12 0.0 0.0 0.0 4
Westlife Foodworld ADD 682 820 20 106 1.3 156 8 11 14 7,755 37 28 83 61 48 28 23 19 18.0 13.9 10.8 24 26 25 0.0 0.0 0.0 2
Hotels & Restaurants Attractive 742 9.0 106.4 23.7 37.7 75.5 61.0 44.3 22.6 18.1 14.2 9.6 8.5 7.4 12.7 13.9 16.6 0.2 0.2 0.2 26
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Insurance
HDFC Life Insurance BUY 461 660 43 992 12.0 2,020 6 8 9 15 28 11 71 56 50 — — — 6.2 5.9 5.6 9 11 11 0.4 0.4 0.5 29
ICICI Lombard REDUCE 1,061 1,225 15 521 6.3 491 37 42 48 45 11 15 28 25 22 — — — 5.0 4.3 3.8 19 18 18 0.9 1.0 1.1 9
ICICI Prudential Life BUY 410 575 40 589 7.1 1,437 6 7 8 20 14 15 65 57 49 — — — 6.0 5.5 5.0 10 10 11 0.8 0.8 0.8 10
LIC BUY 572 975 70 3,621 43.7 6,325 47 35 42 268 (26) 19 12 16 14 — — — 10.8 7.2 5.2 133 53 44 — — — 17
Max Financial Services BUY 647 925 43 223 2.7 345 11 12 13 281 8 8 57 53 49 — — — — — — 6 6 6 — — — 12
PB Fintech BUY 582 700 20 262 3.2 450 (13) (8) (2) 32 33 76 NM NM NM — — — NM NM NM — — — 15
SBI Life Insurance BUY 1,063 1,450 36 1,064 12.8 1,003 17 19 20 14 12 6 62 56 52 — — — 8.3 7.4 6.6 14 14 13 0.3 0.3 0.3 20
Star Health and Allied Insurance BUY 543 715 32 316 3.8 576 10 17 21 156 71 24 54 31 25 — — — 6.1 5.1 4.3 12 18 18 — — — 3
Insurance Attractive 7,587 91.7 409.9 (17.3) 18.5 21.0 25.4 21.4 7.6 6.2 5.1 36 24 24 0.1 0.2 0.2 115
Internet Software & Services
Cartrade Tech REDUCE 411 500 22 19 0.2 51.5 6 9 12 122 56 30 71 46 35 31 18 12 1.1 1.0 1.0 1.5 2.3 2.9 0.0 0.0 0.0 1
FSN E-commerce Ventures BUY 138 215 56 394 4.8 2,875.0 0 1 1 15 253 97 837 237 120 144 87 54 28.6 25.5 21.1 3.5 11.4 19.2 — — — 24
Info Edge ADD 3,426 4,400 28 443 5.3 128.7 52 57 69 213 10 22 66 60 49 53 49 39 3.1 3.0 2.9 4.7 5.0 5.9 0.2 0.4 0.5 16
Just Dial BUY 578 800 38 49 0.6 83.6 16 31 37 93 89 20 35 19 16 12 6 3 1.3 1.2 1.2 3.8 6.9 7.7 — — — 2
Zomato BUY 53 82 55 454 5.5 8,966 (1) (1) (1) 6 13 55 NM NM NM (23) (25) (48) 2.3 2.4 2.5 NM NM NM 0.0 0.0 0.0 45
Internet Software & Services Neutral 1,358 16.4 80 128 972 NM ### 124 (462) 590 82 3.3 3.2 3.1 NM 0.2 2.5 0.1 0.1 0.2 88
IT Services
HCL Technologies BUY 1,072 1,280 19 2,910 35.2 2,714 54 60 69 9 11 14 20 18 16 12 11 10 4.3 4.1 3.8 23 23 25 4.2 4.7 5.1 42
Infosys BUY 1,404 1,775 26 5,824 70.4 4,184 58 67 78 11 15 16 24 21 18 16 14 12 8.0 7.0 6.4 33 36 37 2.5 3.2 4.1 113
L&T Technology Services SELL 3,482 3,200 (8) 368 4.4 106 113 123 144 24 9 17 31 28 24 20 19 16 7.4 6.2 5.3 26 24 24 0.8 0.9 1.0 12
LTIMindtree REDUCE 4,553 4,600 1 1,347 16.3 296 152 176 207 13 16 18 30 26 22 21 18 15 7.7 6.4 5.3 28 27 26 1.0 1.2 1.4 24
Mphasis ADD 1,905 2,330 22 359 4.3 189 90 101 121 18 12 21 21 19 16 13 12 10 4.7 4.3 3.8 23 24 26 2.9 3.1 3.4 12
RateGain BUY 334 450 35 36 0.4 109 4 7 10 384 68 36 75 45 33 41 22 17 5.4 4.7 4.1 7 11 13 0.0 0.0 0.0 2
TCS ADD 3,185 3,500 10 11,654 140.8 3,660 116 130 148 12 12 14 28 25 22 19 17 15 12.5 11.3 10.3 46 48 50 3.5 3.3 3.7 70
Tech Mahindra BUY 1,118 1,240 11 980 11.8 889 58 66 79 (8) 15 19 19 17 14 11 10 8 3.6 3.4 3.1 19 21 23 3.6 3.7 3.9 37
Wipro REDUCE 373 425 14 2,046 24.7 5,487 21 24 27 (6) 15 11 18 15 14 11 9 8 2.7 2.5 2.2 16 17 17 1.3 2.4 2.4 21
IT Services Attractive 25,523 308.3 7.5 13.1 14.7 24.2 21.4 18.7 15.8 14.0 12.2 6.9 6.3 5.7 28.6 29.4 30.6 2.9 3.1 3.6 332
Media
PVR ADD 1,588 1,800 13 156 1.9 61 4 29 41 105 676 41 425 55 39 41 26 21 4.0 3.8 3.5 1 7 9 0.0 0.2 0.3 12
Sun TV Network ADD 435 555 28 171 2.1 394 44 51 54 5 16 5 10 9 8 6 5 4 1.9 1.7 1.6 20 21 20 4.6 5.7 6.9 3
Zee Entertainment Enterprises ADD 207 255 23 199 2.4 960 7 12 14 (40) 72 19 30 18 15 17 11 10 1.8 1.7 1.6 6 10 11 1.2 1.5 1.9 19
Media Attractive 526 6.3 3.8 37.8 11.5 21.8 15.8 14.2 13.3 9.9 8.7 2.3 2.2 2.0 10.7 13.6 14.0 2.0 2.5 3.0 34
Metals & Mining
Hindalco Industries ADD 385 470 22 865 10.5 2,220 41 40 41 (33) (4) 3 9 10 9 5.0 5.3 5.1 1.0 0.9 0.8 11 10 9 1.1 1.0 1.1 38
Hindustan Zinc SELL 305 270 (11) 1,288 15.6 4,225 26 22 22 13 (14) (2) 12 14 14 6.7 7.8 7.8 5.3 5.3 5.3 37 39 38 16.2 7.3 7.1 4
Jindal Steel and Power REDUCE 554 580 5 565 6.8 1,011 48 57 86 (44) 19 52 12 10 6 6.3 6.0 4.2 1.4 1.2 1.0 13 13 18 0.4 0.5 0.8 21
JSW Steel SELL 662 685 3 1,601 19.3 2,417 24 71 91 (73) 195 28 28 9 7 11.2 6.5 5.3 2.3 1.9 1.5 8 22 23 0.8 1.6 2.0 18
National Aluminium Co. SELL 82 70 (15) 151 1.8 1,837 8 7 6 (56) (9) (20) 11 12 15 5.4 6.1 7.4 1.1 1.0 1.0 11 9 7 2.8 2.5 2.0 13
NMDC BUY 113 150 33 332 4.0 2,931 16 18 17 (49) 7 (4) 7 6 7 4.5 4.3 4.4 1.7 1.7 1.6 26 26 24 11.6 12.4 12.0 12
SAIL SELL 85 55 (36) 352 4.3 4,130 4 6 6 (87) 55 8 22 14 13 8.3 7.0 6.8 0.6 0.6 0.6 3 5 5 3.9 3.9 3.9 22
Tata Steel BUY 105 130 24 1,284 15.5 12,224 11 9 12 (69) (17) 36 10 12 9 5.9 6.0 5.1 1.0 1.0 0.9 11 8 11 1.5 1.7 2.0 74
Vedanta SELL 275 240 (13) 1,022 12.4 3,717 27 28 30 (50) 7 7 10 10 9 5.0 4.8 4.5 2.3 2.1 2.0 18 23 23 29.4 7.7 7.9 36
Metals & Mining Attractive 7,460 90.1 (56.2) 16.0 17.0 12.1 10.4 8.9 6.4 5.9 5.3 1.6 1.4 1.3 12.8 13.7 14.5 8.2 3.9 4.0 238
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Price (Rs) Fair Value Upside Mkt cap. O/S shares EPS (Rs) EPS growth (%) P/E (X) EV/EBITDA (X) P/B (X) RoE (%) Dividend yield (%) ADVT-3mo
Oil, Gas & Consumable Fuels
BPCL SELL 351 315 (10) 761 9.2 2,093 (15) 34 45 (135) 332 30 NM 10 8 26.2 6.0 5.1 1.5 1.4 1.3 NM 14 17 (1.6) 3.7 4.9 12
Coal India REDUCE 221 225 2 1,361 16.4 6,163 40 23 26 42 (43) 12 6 10 9 4.5 8.1 6.8 2.5 2.4 2.2 50 25 27 9.1 9.1 9.1 18
HPCL SELL 245 210 (14) 347 4.2 1,419 (80) 58 62 (282) 172 7 NM 4 4 (10.6) 6.9 6.5 1.3 1.1 0.9 NM 28 25 - 9.5 10.2 11
IOCL REDUCE 80 80 0 1,128 13.6 14,121 (0) 14 16 (103) 2,903 18 NM 6 5 16.9 4.7 4.2 0.9 0.8 0.7 NM 14 16 - 8.5 10.0 11
Oil India ADD 250 265 6 271 3.3 1,084 61 48 47 73 (22) (2) 4 5 5 4.0 4.6 4.4 0.8 0.7 0.7 21 15 13 9.7 7.6 7.5 6
ONGC ADD 152 165 8 1,915 23.1 12,580 39 32 33 3 (18) 2 4 5 5 3.0 3.0 2.7 0.7 0.6 0.6 18 13 13 10.9 8.9 8.7 23
Reliance Industries BUY 2,226 3,000 35 14,133 170.7 6,352 104 131 150 14 26 14 21 17 15 11.2 9.0 7.8 1.7 1.5 1.4 8 9 10 0.4 0.4 0.4 184
Oil, Gas & Consumable Fuels Neutral 19,915 240.6 (20.9) 35.2 11.7 15.2 11.2 10.0 8.8 6.6 5.8 1.4 1.3 1.2 9.2 11.5 11.7 2.0 2.6 2.8 265
Pharmaceuticals
Aurobindo Pharma ADD 473 525 11 277 3.3 586 34 46 52 (23) 35 12 14 10 9 7 5 5 1.1 1.0 0.9 8 10 10 2.3 2.7 3.3 9
Biocon REDUCE 222 240 8 266 3.2 1,202 4 8 14 (30) 80 75 52 29 16 18 11 8 2.2 2.1 1.9 4 7 12 0.7 1.2 2.1 10
Cipla BUY 883 1,135 28 713 8.6 806 36 48 56 16 33 17 24 18 16 13 10 9 3.0 2.7 2.4 12 15 15 0.8 1.0 1.2 21
Divis Laboratories SELL 2,802 2,380 (15) 744 9.0 265 71 73 93 (37) 3 28 40 38 30 30 26 20 5.7 5.2 4.7 14 14 16 0.9 0.9 1.2 19
Dr Reddy's Laboratories ADD 4,384 4,725 8 730 8.8 166 243 275 318 30 13 16 18 16 14 11 9 8 3.1 2.7 2.3 17 17 17 0.7 0.8 0.9 18
Gland Pharma REDUCE 1,218 1,375 13 201 2.4 164 58 66 80 (21) 13 20 21 18 15 14 12 10 2.5 2.2 1.9 12 12 12 — — — 11
Laurus Labs REDUCE 306 350 14 165 2.0 536 17 14 19 8 (16) 34 18 22 16 11 12 9 3.9 3.3 2.7 21 15 17 — — — 6
Lupin REDUCE 666 720 8 303 3.7 450 10 32 43 (59) 226 34 68 21 16 16 10 8 2.4 2.2 1.9 3 10 12 — 0.7 1.0 8
Sun Pharmaceuticals ADD 967 1,140 18 2,321 28.0 2,406 36 41 47 11 13 15 27 24 21 18 15 13 4.2 3.7 3.2 16 16 16 0.8 0.8 1.0 27
Torrent Pharmaceuticals REDUCE 1,552 1,600 3 525 6.3 338 39 48 60 12 24 25 40 32 26 19 16 13 7.5 6.3 5.2 19 19 20 0.4 0.5 0.7 4
Pharmaceuticals Cautious 6,245 75.4 (1.5) 21.4 20.0 26.4 21.7 18.1 15.3 12.3 10.2 3.4 3.0 2.6 12.8 13.8 14.6 0.5 0.7 0.8 135
Real Estate
Brigade Enterprises BUY 452 560 24 104 1.3 230 13 11 17 272 (17) 56 35 42 27 15 9 6 3.3 3.1 2.9 10 8 11 0.6 0.6 0.6 1
Brookfield India Real Estate Trust ADD 262 310 18 88 1.1 335 4 8 8 (56) 122 5 73 33 31 15 13 13 1.0 1.1 1.1 1 3 3 4.9 5.5 5.8 0
DLF BUY 360 430 19 891 10.8 2,475 7 22 19 8 216 (11) 53 17 19 71 18 22 2.4 2.1 1.9 5 13 11 0.6 0.6 0.6 14
Embassy Office Parks REIT ADD 303 390 29 288 3.5 948 8 11 16 (18) 42 44 40 28 19 15 13 11 1.2 1.2 1.3 3 4 6 6.2 7.8 9.8 2
Godrej Properties SELL 1,102 1,100 (0) 306 3.7 278 31 43 85 143 39 99 36 26 13 90 134 23 3.2 2.9 2.3 9 12 20 — — — 6
Macrotech Developers BUY 856 1,300 52 412 5.0 482 32 53 87 27 69 62 27 16 10 21 11 7 3.3 2.7 2.1 12 19 24 — — — 8
Mindspace REIT ADD 300 360 20 178 2.1 593 8 12 14 (7) 53 11 38 25 22 14 13 12 1.1 1.2 1.2 3 5 5 7.0 7.5 7.8 1
Oberoi Realty ADD 854 910 7 311 3.8 364 42 43 62 46 3 43 20 20 14 15 12 8 2.6 2.3 2.0 14 12 16 0.2 0.2 0.2 5
Phoenix Mills ADD 1,226 1,605 31 219 2.6 179 39 57 80 124 45 41 31 22 15 15 9 7 2.8 2.5 2.2 10 12 15 0.2 0.3 0.3 4
Prestige Estates Projects BUY 400 560 40 160 1.9 401 11 27 30 26 155 10 37 15 13 10 7 5 1.7 1.5 1.4 5 11 11 0.4 0.4 0.4 2
Sobha BUY 530 830 57 50 0.6 95 17 46 79 40 170 71 31 11 7 11 7 4 1.9 1.7 1.4 6 16 23 1.3 1.3 1.3 1
Sunteck Realty BUY 299 500 67 44 0.5 140 10 23 38 942 130 70 30 13 8 23 8 6 1.4 1.3 1.1 5 10 16 0.3 0.3 0.3 1
Real Estate Attractive 3,052 36.9 29.6 82.9 29.3 35.3 19.3 14.9 20.8 13.0 9.7 2.1 1.9 1.8 5.9 10.1 11.9 1.4 1.6 1.8 47
Retailing
Avenue Supermarts SELL 3,382 3,550 5 2,191 26.5 648 39 45 58 69 17 28 88 75 59 58 47 37 13.5 11.5 9.6 17 17 18 — — — 16
Titan Company ADD 2,450 2,700 10 2,175 26.3 888 38 41 49 49 9 17 65 59 50 42 39 33 18.7 15.8 13.5 32 29 29 0.5 0.7 0.9 32
Trent REDUCE 1,336 1,300 (3) 475 5.7 356 13 16 22 647 25 32 102 82 62 42 33 26 16.8 13.9 11.4 18 19 20 — — — 11
Retailing Neutral 4,366 58.5 66.7 13.3 23.0 76.5 67.6 54.9 48.1 41.0 33.5 15.8 13.3 11.2 21 19.7 20 0.2 0.3 0.4 59
India Research
40
Price (Rs) Fair Value Upside Mkt cap. O/S shares EPS (Rs) EPS growth (%) P/E (X) EV/EBITDA (X) P/B (X) RoE (%) Dividend yield (%) ADVT-3mo
Specialty Chemicals
Aarti Industries REDUCE 520 560 8 189 2.3 363 15 19 25 (33) 33 31 36 27 21 19 17 13 3.8 3.4 2.9 10 13 15 0.3 0.4 1— 5
Atul SELL 6,945 6,720 (3) 205 2.5 30 184 252 305 (10) 37 21 38 28 23 25 18 15 4.2 3.7 3.3 12 14 15 0.3 0.5 0.8 4
Castrol India BUY 112 130 16 110 1.3 989 9 10 11 14 12 14 13 11 10 8 7 6 6.6 6.3 5.8 52 57 60 7.6 8.1 8.5 1
Clean Science & Technology ADD 1,381 1,600 16 147 1.8 106 28 34 46 30 22 35 49 41 30 36 30 22 14.4 11.1 8.4 33 31 32 0.3 0.4 0.5 1
Navin Fluorine ADD 4,119 4,480 9 204 2.5 50 75 107 143 43 43 33 55 39 29 38 26 20 9.5 7.9 6.4 19 22 24 0.4 0.4 0.4 7
Pidilite Industries REDUCE 2,341 2,285 (2) 1,190 14.4 508 26 37 45 11 40 22 89 63 52 59 43 36 17.1 15.0 12.9 20 25 27 0.6 0.7 0.9 9
PI Industries ADD 2,972 3,550 19 451 5.4 152 79 97 118 42 23 21 37 31 25 28 23 19 6.3 5.3 4.5 18 19 19 0.3 0.4 0.4 14
S H Kelkar and Company BUY 93 175 87 13 0.2 138 9 11 - (21) 23 (100) 10 8 - 7 5 - 1.2 1.1 #DIV/0! 12 14 NM 3.5 4.5 - 0
SRF BUY 2,310 2,800 21 685 8.3 296 71 83 100 12 17 21 32 28 23 21 17 14 6.6 5.4 4.5 22 21 21 0.5 0.5 - 15
Vinati Organics ADD 1,772 2,250 27 182 2.2 104 45 62 78 34 36 26 39 29 23 31 22 17 7.8 6.4 5.2 22 25 25 0.4 0.7 0.9 1
Specialty Chemicals Attractive 3,376 40.8 10.8 26.4 20.8 43.0 34.0 28.2 28.5 22.7 18.8 7.9 6.8 5.9 18.4 19.9 20.9 0.7 0.8 0.8 56
Telecommunication Services
Bharti Airtel ADD 746 875 17 4,302 52.0 5,759 16 27 43 261 64 59 45 28 17 8 6 5 5.5 4.4 3.7 13 18 23 0.3 0.5 0.9 50
Indus Towers REDUCE 153 165 8 413 5.0 2,695 8 14 15 (65) 64 11 18 11 10 5 4 3 1.9 1.7 1.6 10 16 16 3.3 3.9 4.6 10
Vodafone Idea RS 6 — — 314 3.8 48,680 (6) (6) (7) NM NM NM NM NM NM 15 15 16 (0.4) (0.3) (0.2) NM NM NM — — — 18
Tata Communications ADD 1,177 1,150 (2) 336 4.1 285 59 55 63 20 (7) 16 20 22 19 9 8 8 16.9 11.7 8.3 114 64 52 2.0 1.8 2.1 8
Telecommunication Services Attractive 5,364 64.8 1 47 91 NM NM NM 8.9 7.5 6.5 21 27 49 NM NM NM 0.6 0.9 1.2 86
Transportation
Adani Ports and SEZ BUY 680 810 19 1,468 17.7 2,157 34 38 45 31 10 20 20 18 15 15 12 10 3.3 2.8 2.4 18 17 17 0.1 0.5 0.4 130
Container Corp. REDUCE 592 610 3 361 4.4 609 19 21 23 10 8 13 31 29 25 18 16 14 3.3 3.1 3.0 11 11 12 1.9 2.1 2.4 12
Delhivery BUY 331 395 19 241 2.9 725 (14) (8) (5) 18 43 32 NM NM NM (58) 231 39 2.6 2.7 2.7 NM NM NM — — — 9
Gateway Distriparks BUY 61 90 49 30 0.4 500 4 5 6 (3) 4 23 14 13 11 9 7 6 1.7 1.6 1.4 13 12 14 2.5 2.8 3.1 0
GMR Airports BUY 42 43 3 252 3.0 6,036 (1) (1) (1) (40) (58) (4) NM NM NM 26 20 15 (23.4) (16.0) (11.9) 45 51 38 — — — 6
Gujarat Pipavav Port BUY 113 117 3 55 0.7 483 7 7 8 62 12 12 17 15 14 9 8 7 2.7 2.7 2.7 16 18 20 5.6 6.2 6.7 4
InterGlobe Aviation BUY 1,865 2,550 37 719 8.7 383 (10) 122 150 94 1,268 23 NM 15 12 9 4 3 (11.1) (40.6) 2.6 6 NM 519 — — — 25
Mahindra Logistics REDUCE 365 430 18 26 0.3 71 4 9 18 16 132 102 97 42 21 13 9 6 4.3 4.0 3.5 4 10 18 — — — 1
Transportation Neutral 3,153 38.1 2,332.3 85.2 23.3 43.1 23.3 18.9 15.4 10.0 8.0 5.1 4.3 3.6 11.9 18.4 18.9 0.4 0.6 0.6 187
KIE universe 191,166 2,309 6.0 23.9 16.8 23.0 18.5 15.9 13.1 10.6 9.2 3.0 2.7 2.4 13.3 14.5 15.3 1.7 1.9 2.1
Notes:
(a) We have used adjusted book values for banking companies.
(b) 2022 means calendar year 2021, similarly for 2023 and 2024 for these particular companies.
(c) Exchange rate (Rs/US$)= 81.36
India Research
41
DISCLAIMERS, DISCLOSURES & LEGAL

“Each of the analysts named below hereby certifies that, with respect to each subject company and its securities for which the analyst is
responsible in this report, (1) all of the views expressed in this report accurately reflect his or her personal views about the subject companies
and securities, and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or
views expressed in this report: “Kawaljeet Saluja, Sathishkumar S., Vamshi Krishna, Murtuza Arsiwalla, Abhishek Khanna, M.B. Mahesh, Nischint
Chawathe, Abhijeet Sakhare, Ashlesh Sonje, Varun Palacharla, Abhijit Akella.”
Distribution of ratings/investment banking relationships

Kotak Institutional Equities Research coverage universe
Percentage of companies covered by Kotak Institutional

70%
Equities, within the specified category.
60%
Percentage of companies within each category for which
Kotak Institutional Equities and or its affiliates has
50%
provided investment banking services within the previous
12 months.
40% * The above categories are defined as follows: Buy = We
30.7% expect this stock to deliver more than 15% returns over
30% 27.2% the next 12 months; Add = We expect this stock to deliver
22.8% 5-15% returns over the next 12 months; Reduce = We
19.3% expect this stock to deliver -5-+5% returns over the next
20% 12 months; Sell = We expect this stock to deliver less than
-5% returns over the next 12 months. Our target prices
10% are also on a 12-month horizon basis. These ratings are
4.4% 4.4%
2.2% used illustratively to comply with applicable regulations. As
1.3%
of 31/12/2022 Kotak Institutional Equities Investment
0%
Research had investment ratings on 228 equity securities.
BUY ADD REDUCE SELL
Source: Kotak Institutional Equities

As of December 31, 2022
Ratings and other definitions/identifiers

Definitions of ratings
BUY. We expect this stock to deliver more than 15% returns over the next 12 months.
ADD. We expect this stock to deliver 5-15% returns over the next 12 months.
REDUCE. We expect this stock to deliver -5-+5% returns over the next 12 months.
SELL. We expect this stock to deliver <-5% returns over the next 12 months.
Our Fair Value estimates are also on a 12-month horizon basis.Our Ratings System does not take into account short-term volatility in stock prices related
to movements in the market. Hence, a particular Rating may not strictly be in accordance with the Rating System at all times.
Other definitions
Coverage view. The coverage view represents each analyst’s overall fundamental outlook on the Sector. The coverage view will consist of one of the
following designations: Attractive, Neutral, Cautious.
Other ratings/identifiers
NR = Not Rated. The investment rating and fair value, if any, have been suspended temporarily. Such suspension is in compliance with applicable
regulation(s) and/or Kotak Securities policies in circumstances when Kotak Securities or its affiliates is acting in an advisory capacity in a merger or
strategic transaction involving this company and in certain other circumstances.
CS = Coverage Suspended. Kotak Securities has suspended coverage of this company.
NC = Not Covered. Kotak Securities does not cover this company.
RS = Rating Suspended. Kotak Securities Research has suspended the investment rating and fair value, if any, for this stock, because there is not a
sufficient fundamental basis for determining an investment rating or fair value. The previous investment rating and fair value, if any, are no longer in
effect for this stock and should not be relied upon.
NA = Not Available or Not Applicable. The information is not available for display or is not applicable.
NM = Not Meaningful. The information is not meaningful and is therefore excluded.
India Research
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India Daily

March 17, 2023 NIFTY-50 [Mar 16]: 16,986

Private Circulation Only.

Bayer Cropscience (BYRCS) REDUCE

ahead, suggesting challenges in keeping up with the competition.

We cut FY2023-25E EPS by 12-16%; upgrade to REDUCE

Abhijit Akella, CFA

Glyphosate price decline will be a headwind in quarters to come

Management transition further adds to uncertainty

China Market price of Glyphosate (USD/Ton)

Domestic Price for Glyphosate (INR/kg)

Average Import Cost of Glyphosate (USD/kg)

Source: Trade data

Maize domestic Price (Rs/quintal)

Source: Central Insecticide Board & Registration Committee

Hybrid Seed Business

Cr op P r ot e c t ion Che m ic a l B us ine s s

Source: Company Filings (FY2019-22

Source: Company reports

Exhibit 8: We cut FY2023-25E EPS by 12-16% to reflect near-term headwinds

Source: Kotak Institutional Equities estimates

Exhibit 9: Our FY2023-25E EPS is 7-13% below consensus

Source: Bloomberg, Kotak Institutional Equities estimates

Source: Company, Kotak Institutional Equities estimates

TCS (TCS) ADD

Out of the blue Company data and valuation summary

Price performance (%) 1M 3M 12M

Kawaljeet Saluja Sathishkumar S Vamshi Krishna

Exhibit 1: Key model assumptions, March fiscal year-ends, 2018-25E

Source: Company, Kotak Institutional Equities estimates

Exhibit 2: Key operating metrics

Source: Company, Kotak Institutional Equities

Source: Company, Kotak Institutional Equities estimates

DLF (DLFU) BUY

Exceptionally strong sales of Rs80 bn at DLF Arbour 1.3 0.9

catalyst for stock performance.

Maintain BUY with revised fair value of Rs430/share

Full sector coverage on KINSITE

Murtuza Arsiwalla Abhishek Khanna

Source: Company, Kotak Institutional Equities

Brigade DLF Oberoi Prestige Sobha Sunteck Macrotech

Source: Companies, Kotak Institutional Equities estimates

Development Leasing (DLF) Leasing (DCCDL) Hotel Land (Implied)

Source: Company, Kotak Institutional Equities estimates

Source: Company, Kotak Institutional Equities estimates

Source: Company, Kotak Institutional Equities estimates

DLF had launched 12.5 mn sq. ft of projects until 3QFY23

Source: Company, Kotak Institutional Equities estimates

Source: Company, Kotak Institutional Equities estimates

2019 2020 2021 2022 2023E 2024E 2025E

Source: Company, Kotak Institutional Equities estimates

Source: IRDA, GI Council, Kotak Institutional Equities

Source: IRDA, GI Council, Kotak Institutional Equities

Private insurers reported 20% yoy growth in February 2023

yoy growth yoy growth

Source: IRDA, GI Council, Kotak Institutional Equities

Source: IRDA, GI Council, Kotak Institutional Equities

Source: IRDA, GI Council, Kotak Institutional Equities

Private GI players up 16% yoy on ex-crop basis in February 2023

Source: IRDA, GI Council, Kotak Institutional Equities

Source: IRDA, GI Council, Kotak Institutional Equities

Source: IRDA, GI Council, Kotak Institutional Equities

Source: IRDA, GI Council, Kotak Institutional Equities