Morning Insight

SEPTEMBER 18, 2020

17-Sep 1 Day
% Chg
1 Mth 3 Mths
News Highlights
Indian Indices  The Department for Promotion of Industry and Internal Trade (DPIIT)
SENSEX Index 38,980 (0.8) 1.2 13.9 issued a press note permitting foreign direct investment in defence
NIFTY Index 11,516 (0.8) 1.1 14.1
production above 74% on the automatic route. This would be subject to
NSEBANK Index 22,320 (1.1) 2.9 10.5
NIFTY 500 Index 9,567 (0.7) 3.2 17.5
access to modern technology or for 'other reasons' that needs to be
CNXMcap Index 17,411 (0.2) 5.8 22.2 recorded. (ET)
BSESMCAP Index 15,009 (0.2) 3.6 19.7  The telecom department is yet to decide if upfront payment should be
World Indices
collected from mobile phone companies that buy 4G spectrum in the
Dow Jones 27,902 (0.5) 0.4 7.0
Nasdaq 10,910 (1.3) (2.7) 9.7
next auction, given that operators have been exempted from paying for
FTSE 6,050 (0.5) (0.4) (2.8) airwaves for two years till FY22. (ET)
NIKKEI 23,371 0.2 1.4 4.5  The State Bank of India has ~Rs 1.5 lakh cr in distressed assets,
Hangseng 24,341 (1.6) (4.0) (0.5)
according to Rajnish Kumar, chairman and managing director of the
Shanghai 3,283 0.4 (4.9) 11.7
public lender. (ET)
Value traded (Rs cr) 17-Sep % Chg Day
 The Supreme Court rejected a petition by State Bank of India, the
Cash BSE 2,821 (10.0)
nation’s largest lender, to allow a personal bankruptcy case against
Cash NSE 51,070 -
Derivatives 39,02,295 106.5 tycoon Anil Ambani to resume. (BS)

16-Sep MTD YTD

 US based Rosen Law Firm has filed a class action lawsuit against HDFC
Net inflows (US$ mn)
FII 67 581 5,388
Bank, alleging that the senior management engaged in reckless acts
Mutual Fund (1.0) (617) 2,583 and caused damages to several investors who relied upon alleged
misleading statements. (ET)
Nifty Gainers & Losers Price Chg Vol
17-Sep (Rs) (%) (mn)  Dr Reddy's Laboratories said it has settled a litigation with a unit of
Gainers Bristol Myers Squibb related to patents for Revlimid (lenalidomide)
Dr Reddy 4,823 4.2 8.4 capsules, used to treat various kinds of cancer. (ET)
HCL Tech 807 2.3 20.0
Zee Entertainment 221 2.3 38.0
 The TVS Motor Company announced its new distribution partnership
Losers with Autotecnica Colombiana SAS (Auteco SAS), a leading assembler of
Hindalco 176 (4.3) 18.6 motorcycles in Colombia. (BS)
Tata Motors 148 (2.5) 48.1
 Ashok Leyland has received a large order from a logistics start-up
Shree Cement 19,900 (2.4) 0.1
company, Procure Box to supply 1,400 intermediate commercial
Advances / Declines (BSE) vehicles [ICVs] for its fuel distribution business across 750 districts, in
17-Sep A B T Total % total
the country. ALL will supply it's product Ecomet and the order will be
Advances 149 377 47 573 100
executed in the next 5-6 months. (BS)
Declines 345 594 58 997 174
Unchanged 1 29 11 41 7  JMC Projects (India) said it has bagged orders worth Rs 1,342 cr in the
domestic and international markets. (BS)
Commodity % Chg
17-Sep 1 Day 1 Mth 3 Mths  Hindustan Zinc Ltd said it proposes to raise up to Rs 4,000 cr via
Crude (US$/BBL) 43.0 3.3 (4.1) 7.0 debentures. (BS)
Gold (US$/OZ) 1,960.0 0.3 (2.0) 13.1
 EIH Ltd said its rights issue committee has approved raising of up to Rs
Silver (US$/OZ) 27.0 0.7 (2.4) 53.6
350 cr. (BS)
Debt / Forex Market* 17-Sep 1 Day 1 Mth 3 Mths
 Hindalco Industries Limited and Hindustan Copper Limited (HCL) signed
10 yr G-Sec yield % 6.4 - 13.0 5.0
a MoU for long-term purchase and sale of copper concentrate produced
Re/US$ 73.5 (18.0) (110.0) (286.0)
*Change, basis points by the latter. (BS)
Nifty  Faced with regulatory heat on its controversial plan, Vodafone Idea Ltd
12,500 (VIL) has dropped faster data speed claims, which formed a prominent
11,500 part of its pay-more-for-priority-treatment offering, and has filed a
10,500 revised plan with Trai. (ET)
9,500  Sterling and Wilson Solar said it has won a 106.71 MW solar project in
8,500 Chile, its fifth in Latin America, worth $62.6 mn (about Rs 462 cr).
7,500
Sep-19 Jan-20 May-20 Sep-20 What’s inside
Source: NSE  Annual Report Update: Bajaj Electricals Ltd
 IPO Note: Computer Age Management Services Ltd

Source: ET = Economic Times, BS = Business Standard, FE = Financial Express, IE = Indian

Express, BL = Business Line, BQ = BloombergQuint, ToI: Times of India, BSE = Bombay
Stock Exchange, MC = Moneycontrol

Kotak Securities Limited has two independent equity research groups: Institutional Equities and Private Client Group. This report has been prepared by the Private Client Group.
SEPTEMBER 18, 2020

Annual Report Update BAJAJ ELECTRICALS LTD

Stock Details PRICE RS.507 TARGET RS.575 ADD
Market cap (Rs cr) : 5,718
52-wk Hi/Lo (Rs) : 530 / 267 FY20 has been a significant year for Bajaj Electricals. The company
Face Value (Rs) : 2 generated healthy free cash flow, which along with the proceeds from rights
3M Avg. daily vol (Nos) : 4,29,070
issue was utilized to repay debt. The company’s revamped “Go to Market”
Shares o/s (cr) : 11.4
distribution strategy (named Range Reach Expansion Programme), has also
Source: NSE
started to deliver positive results.
Financial Summary
Y/E Mar (Rs Cr) FY20 FY21E FY22E Key Highlights
Revenue 4,987 4,779 4,838
 During FY20, the company has generated positive cash flow from operation
Growth (%) (25.3) (4.2) 1.2
EBITDA 208 172 410
of Rs. 793 cr as compared to negative cash flow of Rs. (665) cr in FY19. Total
EBITDA margin (%) 4.2 3.6 8.5 debt also has been reduced by ~53% from Rs. ~1,585 crore in FY19 to Rs.
Reported PAT (11) 33 238 742 cr in FY20.
EPS (1.0) 2.9 21.0
 The company has raised ~ Rs. 350 cr during the year via right issue with the
EPS Growth (%) N.A N.A 621.3
BV (Rs/share) 118.5 121.8 138.8
main objective to curtail down the debt in the balance sheet. With that, the
Dividend/share (Rs) 3.5 - 3.5 company’s debt to equity ratio brought down from 1.5x in FY19 to 0.6x in
ROE (%) (0.6) 2.7 16.3 FY20.
ROCE (%) 7.0 5.9 17.0
 EPC order book has scaled down to Rs 1,730 cr in FY20 as compared to Rs.
P/E (x) N.M 156 24
EV/EBITDA (x) 30.8 35.9 14.4
8,934 cr in FY18. As a result, revenue mix is increasingly moving in favour of
P/BV (x) 4.3 4.2 3.7 the profitable consumer electricals division.
Source: Company, Kotak Securities - PCG
Valuation & Outlook
Shareholding Pattern (%)
BEL is now trading at 23.8x on FY22E earnings & 14.4x on FY22E EV/EBITDA
(%) Jun-20 Mar-20 Dec-19
Basis. We had been a tad cautious on the company in view of weak balance
Promoters 63.2 63.2 62.7
sheet and misallocation of capital into the EPC business. The company had
FII 9.2 8.0 5.7
DII 13.2 12.5 12.4
elevated levels of debt relative to peers and also its EPC business had been
Others 14.4 16.4 19.2 bleeding and generating sub-optimal return on capital employed. However, the
Source: BSE company has done well in FY20 in terms of generating cash flow and raised
equity to bring debt to comfortable level. Hence, we now accord higher
Price Performance (%)
EV/EBITDA multiple of ~20x (earlier ~17x) to the company’s consumer
(%) 1M 3M 6M
business. As a result, our target price based on SOTP stands revised to Rs 575
Bajaj Electricals 4.5 24.2 46.9
(Rs 461 earlier). In view of the moderate upside, we maintain “ADD” rating on the
NIFTY 2.4 16.6 28.5
stock.
Source: NSE

Price chart (Rs) Consumer Products division

550 The consumer products segment consists of a diverse range of products
450 including 4 broad categories – Kitchen Appliances (KAP), Domestic Appliances
(DAP), Fans and Lighting. These 4 broad categories have more than 25
350
subcategories among them, including multiple product ranges. The segment
250 contributed 62% of the total revenue, amounting to Rs 3,085 crore in FY20. The
Dec-19

Mar-20

Jun-20
Sep-19

Sep-20

Company continued to outperform the industry average, registering a growth of

13% in FY19-20, against an estimated industry growth of 6-7%. However, the
Source: NSE COVID-19 outbreak led to a slowdown in the month of March, softening the
overall growth of the segment.
 Kitchen Appliances: - Indian Kitchen Appliances market is growing steadily
Sanjeev Zarbade over the past few years and it is expected to grow further owing to increased
Sanjeev.zarbade@kotak.com
consumption, rise in per capita income and a growing population.
+91 22 6218 6424
 Domestic Appliances: - This segment is one of the fastest growing
Priyesh Babariya segments in the Indian market which comprises various small and large
priyesh.babariya@kotak.com appliances including irons, water heaters, room coolers and room heaters.
+91 22 6218 6433 As the working population in India continues to grow, the concept of nuclear
Kotak Securities – Private Client Group Please see the Disclosure/Disclaimer on the last page For Private Circulation 2
SEPTEMBER 18, 2020

family has become common. Owing to shortage of time, appliances that

save time and energy have become a necessity for completing day-to-day
chores.
 Fans: - As a product category, fans are one of the largest selling items in the
consumer electrical segment. But, much of its sales in the organised sector
is concentrated in metros, tier I and tier II markets.
 Consumer Lighting: - This segment witnessed a demand surge in recent
years due to growing population and rapid urbanisation. With increasing
electricity consumption, consumers continue to demand innovative,
environment friendly and cost-effective lighting, which not only reduces
electricity consumption but, also enables them to decorate homes with
aesthetic and appealing lights. As a result, LED lighting is gaining traction
in the Indian lighting market.

Product portfolio and Revenue mix

Category Sub-products Segment Revenue
Mix (%) (FY20)
Kitchen Appliances Mixers, Food Processors, Juicer Mixer Grinders, 28%
Induction Cookers, Rice Cookers etc
Domestic Appliances Water heaters, Irons and Air coolers 25%
Fans Ceiling, Table, Exhaust and Pedestal Fans 27%
Lighting LED Lamps, Battens, Panels and other accessories 14%
Source: Company’s FY20 Annual Report

Range Reach Expansion Programme (RREP): - The company had launched the
RREP programme few years back, which has revamped the way it sells
consumer products. As against the traditional practice of thrusting products
into the retail network, the RREP strategy works on a replenishment model as
and when the inventory at the retail level drops below a certain level. Delivery of
product to the dealer done within 24 hours. This has reduced inventory in the
retail network. Issue of excess inventory with one dealer and deficit with another
has also been addressed. The concept of sales target, which skewed sales
towards the end of the month, has been done away with. Also, prices of products
are uniform – meaning, no discrimination on retailer level discounts,
irrespective of the size of the dealer. Every week, person from Bajaj Electricals
undertakes visit of the retailer to address any issues in terms of products. As a
result, the Dealers/Retailers are happy with the revamp.
Following this revamp, the results are encouraging - the Fan segment saw
growth in FY20 sales value at double the speed of the industry, for sub economy
ceiling fan. In the Water Heater segment, the company consolidated its market
position. Despite price erosion of the LED product range, the B2C business saw
a significant value growth of ~9% in lighting segment while industry and all
other key competitors registered a de-growth in value.

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SEPTEMBER 18, 2020

Growth in distribution network

No of distributors - LHS Retail Base (lakhs) - RHS

600 2.2 2.5
2
500 2
1.5
400
1.5
300
1
200

100 0.5
342 481 500
0 0
FY18 FY19 FY20
Source: Company’s FY20 Annual Report

Morphy Richards: - Morphy Richards is a leading home & kitchen appliance

brand based in England, UK. Bajaj Electricals is marketing and servicing Morphy
Richards products in India since 2002 and recently started servicing in SAARC
countries. With a dominant presence in India, the brand has over 22 product
categories. During the year under review, Morphy Richards has further
consolidated its market position by widening its range of Steam Irons, Coffee
Makers, Induction Cookers, Hair Dryers and Travel Kettles. The introduction of
new products across multiple categories has led to a steady growth of the
brand. For instance, there has been a growth of ~35% in Room Heaters & Coffee
Markers, 25% in Water Heaters, 80% in Personal Grooming and 13% in Induction
Cookers.
Nirlep Appliances: - Nirlep is a pioneer in the Non-Stick cookware segment and
reported revenue of Rs 42 cr and loss of Rs 4.4 cr in FY20. It has registered
healthy growth of 10% across all segments.
As per the company, it aims to grow disproportionately in consumer product
division by leveraging its investments in R&D, product development, distribution
channel and information technology. Further, the Company plans to launch
more than 100+ SKUs with differentiated features clubbed with innovative
channels and commercialisation strategies in FY21.

EPC segment
In the EPC segment, the company undertakes projects in Power Distribution,
Power Transmission and Illumination. The company has become selective in
bidding for orders, and rightly so, in view of the low margins and long working
capital cycles. In FY19, this segment was mainly responsible for sharp spike in
borrowings. Order book has now scaled down to Rs 1,730 cr in FY20 from a high
of Rs 8,934 cr in FY18. The company’s strategic priority remains the execution
of current projects and collection of receivables in a timely manner.
Order book (Rs in cr)

10000 Power Distribution 197

Power Transmission
8000 1,433
Illumination
6000
112
4000 173 700
138 680
197
2000 680
1,660 2,805 7,304 4,032 705
0 828
FY16 FY17 FY18 FY19 FY20

Source: Company, Kotak Securities – Private Client Group

Kotak Securities – Private Client Group Please see the Disclosure/Disclaimer on the last page For Private Circulation 4
SEPTEMBER 18, 2020

EPC Segment revenue mix (%) and Order book (Rs. in cr)
Category Scope EPC segment 1QFY21
revenue mix Order book
(%) (Rs cr)
Power Distribution Rural electrification works and 33.4 764
Feeder separation, etc
Power Transmission Transmission line projects - 132 V to 765 KV 35.6 624
Illumination Indoor and Outdoor lighting projects,
Smart lighting etc 30.8 207
Source: Company, Kotak Securities – Private Client Group

Other highlights
 During FY20, the company has generated positive cash flow from operation
of Rs. 793 cr as compared to negative cashflow of Rs. (665) cr in FY19. Total
debt also has been reduced by ~53% from Rs. ~1585 crore in FY19 to Rs.
742 cr in FY20.
 The company has raised ~ Rs. 350 cr during the year via right issue with the
main objective to curtail down the debt in the balance sheet. With that, the
company’s debt to equity ratio brought down from 1.5x in FY19 to 0.6x in
FY20.
 Receivables declined to Rs 2536 cr in FY20 as compared to Rs 3148 cr in
FY19. As of Q1FY21, receivables stand at Rs 2303 cr, bulk of the receivables
are from the EPC division at Rs 1843 cr (Rs 600 cr is retention money). As
per the management, there are no worries in terms of writing off the
collection from EPC division as most of the clients are government clients
but they do expect ~2-3 months of delay in terms of payment.

Total borrowings movement

2000 Debt (Rs. Cr) - LHS Debt to Equity (x) - RHS 2.00

1.50
1500 1.50

1000 0.77 1.00

0.55
0.39
500 0.50
0.17
718 1,585 742 542 262
0 -
FY18 FY19 FY20 FY21E FY22E

Source: Company, Kotak Securities – Private Client Group

Free cash flow (Rs in cr)

1000 764

500 281 324

-500 -253

-1000 -720

FY18 FY19 FY20 FY21E FY22E

Source: Company, Kotak Securities – Private Client Group

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SEPTEMBER 18, 2020

Outlook
 The management expect the business performance of the company will get
impacted by Covid-19 outbreak in FY21. However, it is confident about
faster recovery relative to its peers & remain firmly focused on longer-term
strategic objective of driving growth.
 The management expects to grow much better in 2H of FY21. As per the
management, the overall consumer division will do ~Rs. 3000 crores in
FY21E. In the EPC segment, management expects revenue de-growth and
losses to continue in the next couple of quarters. Currently all the projects
are back in the operations but with limited labour due to Covid-19.
 In the EPC segment, the management expects illumination & transmission
line towers may turnaround in FY21E into profitability but Power distribution
still will remain challenged due to large overall cost structure because lag
in execution.
 On costs, the company is working on optimisation of sourcing and
rationalising of existing products portfolio to generate savings in the
coming quarters.
 The management expects ~1-2% EBIT margin expansion in the consumer
division in FY21E led by product mix and general level of price increasing of
on an average ~2-3%.

Valuation & Outlook

BEL is now trading at 23.8x on FY22E earnings & 14.4x on FY22E EV/EBITDA
Basis. We had been a tad cautious on the company in view of weak balance
sheet and misallocation of capital into the EPC business. The company had
elevated levels of debt relative to peers and also its EPC business had been
bleeding and generating sub-optimal return on capital employed. However, the
company has done well in FY20 in terms of generating cash flow and raised
equity to bring debt to comfortable level. Hence, we now accord higher
EV/EBITDA multiple of ~20x (earlier ~17x) to the company’s consumer
business. As a result, our target price based on SOTP stands revised to Rs 575
(Rs 461 earlier). In view of the moderate upside, we maintain “ADD” rating on the
stock.

SOTP
EBITDA Consumer FY22E (Rs cr) 311
Target EV/EBITDA (x) 20
Target EV (Rs cr) 6283

EBITDA EPC FY22E (Rs cr) 99

Target EV/EBITDA (x) 4
Target EV (Rs cr) 396

Total EV (Rs cr) 6678

Less - Debt (Rs cr) 262
Add - Cash (Rs cr) 127
Market Capitalization (Rs cr) 6543
Value per share 575
Source: Kotak Securities – Private Client Group

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SEPTEMBER 18, 2020

1 Year Forward EV/EBITDA

40.00
EV/EBITDA Average

30.00

20.00

10.00

Jul-15
Mar-15

Nov-15

Jul-16
Mar-16

Nov-16

Jul-17
Mar-17

Nov-17

Jul-18
Mar-18

Nov-18

Jul-19
Mar-19

Nov-19

Jul-20
Mar-20
May-15

Sep-15

Jan-16

May-16

Sep-16

Jan-17

May-17

Sep-17

Jan-18

May-18

Sep-18

Jan-19

May-19

Sep-19

Jan-20

May-20

Sep-20
Source: NSE; Company; Kotak Securities

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SEPTEMBER 18, 2020

Financials: Consolidated
Profit and Loss Statement (Rs cr) Balance sheet (Rs cr)
(Year-end Mar) FY19 FY20 FY21E FY22E (Year-end Mar) FY19 FY20 FY21E FY22E
Revenues 6,679 4,987 4,779 4,838 Cash and cash equivalents 16 105 137 127
% change yoy 41.9 (25.3) (4.2) 1.2 Accounts receivable 3,144 2,537 2,226 2,187
EBITDA 340 208 172 410 Inventories 830 699 720 663
% change yoy 15.9 (38.8) (17.5) 138.6 Other current assets 520 446 367 398
Depreciation 44 74 80 86 Current Assets 4,510 3,787 3,450 3,375
Other Income 65 46 43 42
EBIT 361 181 135 366
% change yoy 15.5 (49.9) (25.5) 171.5 Investments 11 13 20 25
Gross Interest 118 171 85 40 Net fixed assets 377 333 303 267
EBT 244 10 50 326 Other non-current assets 281 435 435 435
% change yoy (4.1) (95.9) 395.4 556.7 Total Assets 5,179 4,567 4,207 4,102
Extraordinary items - - - -
Tax 88 17 13 83
as % of EBT 36.0 174.3 25.6 25.6 Equity & reserves 1,056 1,348 1,385 1,579
Share of P&L from Asso and MI (2) (4) (4) (4) Debt 1,585 742 542 262
Reported PAT 154 (11) 33 238 Other liabilities 155 262 262 262
% change yoy 84.1 N.A N.A 621.3
Shares outstanding (mn) 102 114 114 114 Current Liabilities 2,383 2,214 2,017 1,997
EPS (Rs) 13.5 (1.0) 2.9 21.0 Total Liabilities 5,179 4,567 4,207 4,102
DPS (Rs) 3.5 3.5 - 3.5
CEPS (Rs) 17.4 5.5 9.9 28.5 BVPS (Rs) 92.8 118.5 121.8 138.8
Source: Company, Kotak Securities – Private Client Group Source: Company, Kotak Securities – Private Client Group

Cash flow Statement (Rs cr) Ratio Analysis

(Year-end Mar) FY19 FY20 FY21E FY22E (Year-end Mar) FY19 FY20 FY21E FY22E
EBITDA 340 208 172 410 EBITDA margin (%) 5.1 4.2 3.6 8.5
Tax Paid (139) (45) (13) (83) EBIT margin (%) 5.4 3.6 2.8 7.6
Other Adjustments (18) (12) - - Net profit margin (%) 2.3 (0.2) 0.7 4.9
Change in working capital -848 643 172 46
Net cash from operations (666) 794 331 372 Receivables (days) 172 186 170 165
Purchase of fixed Assets (55) (30) (50) (50) Inventory (days) 45 51 55 50
Investment in subsidiary (33) 5 - - Sales / Gross Fixed Assets (x) 14.0 9.7 8.5 7.9
Income from investments 32 43 36 37 Interest coverage (x) 3.1 1.1 1.6 9.1
Net cash from investing -56 18 -14 -14 Debt/ equity ratio (x) 1.5 0.6 0.4 0.2
Change in Borrowings 868 (843) (200) (280)
Interest paid -118 -171 -85 -40 ROE (%) 15.7 (0.6) 2.7 16.3
Issue of shares/Other LT liabilities 4 335 - - ROCE (%) 15.7 7.0 5.9 17.0
Dividend Paid (43) (43) - (48)
Net Cash from financing 711 (722) (285) (368) EV/ Sales (x) 1.1 1.3 1.3 1.2
Net Cash Flow (11) 90 32 (9) EV/EBITDA (x) 21.6 30.8 35.9 14.4
Cash at beginning of year 22 11 102 134 Price to earnings (P/E) (x) 37.0 N.M 156.3 23.8
Bank balance 5 3 3 3 Price to book value (P/B) (x) 5.5 4.3 4.2 3.7
Cash at the end of year 16 105 137 127 Price to cash earnings (x) 29.2 92.5 51.0 17.8
Source: Company, Kotak Securities – Private Client Group Source: Company, Kotak Securities – Private Client Group

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SEPTEMBER 18, 2020

IPO Note COMPUTER AGE MANAGEMENT SERVICES LTD

NOT RATED
(Note: All the information in this
note is taken from RHP) Offer Details
The price band is in the range of Rs.1,229-1,230/share. The total issue size is
of Rs.2,242.11 cr (at Rs.1,230/share). It is an Offer For Sale by NSE Investments
Ltd.

Offer details
Particulars Details
Price band (Rs/share) Rs1,229-1,230
Opening date of the Issue September 21st, 2020
Closing date of the issue September 23rd, 2020
No. of shares pre-issue (nos. cr) 4.87
No. of shares post-issue (nos. cr)* 4.87
Fresh Issue (nos. cr)* NA
Offer for sale (nos. cr)* 1.82
Issue size (Rs cr)* 2,242.11
Bid Lot 12 equity shares & multiple of 12 equity shares
thereafter.
Book Building QIBs 50%
Non-Institutional 15%
Retail 35%
Lead managers Kotak Mahindra Capital Company Limited, HDFC
Bank Limited, ICICI Securities Limited and Nomura
Financial Advisory and Securities (India) Private
Limited.
Source: Company RHP, * Based on upper price band

Background
Computer Age Management Services (CAMS) is a technology-driven financial
infrastructure and services provider to mutual funds and other financial
institutions with over two decades of experience. The company is India’s largest
registrar and transfer agent of mutual funds with an aggregate market share of
approximately 70% based on mutual fund average assets under management
(“AAUM”) managed by its clients and serviced by them during July 2020,
according to the CRISIL Report. Over the last five years, the company has grown
market share from approximately 61% during March 2015 to approximately 69%
during March 2020, based on AAUM serviced, according to the CRISIL Report.
Its mutual fund clients include four of the five largest mutual funds as well as
nine of the 15 largest mutual funds based on AAUM during July 2020, according
to the CRISIL Report. With the initiative of creating an end-to-end value chain of
services, the company has grown its service offerings and currently provides a
comprehensive portfolio of technology based services, such as transaction
origination interface, transaction execution, payment, settlement &
reconciliation, dividend processing, investor interface, record keeping, report
generation, intermediary empanelment and brokerage computation and
compliance related services, through its pan-India network to their mutual fund
Jatin Damania clients, distributors and investors. CAMS also provides certain services to
Jatin.damania@kotak.com alternative investment funds, insurance companies, banks and non-banking
+91 22 6218 6440 finance companies.

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SEPTEMBER 18, 2020

The nature of services to mutual funds spans multiple facets of their

relationship with their investors, distributors and regulators. By providing a
range of services, the company plays an important role in developing and
maintaining its clients’ market perception. As of July 2020, the company has
serviced Rs19.2 lakh cr of Average Assets under Management (AAUM) of 16
mutual fund clients, according to the CRISIL Report. The ten-year CAGR of
Quarterly Average Assets under Management (QAAUM) of mutual funds
between March 2010 and March 2020 was 13.4% according to the CRISIL
Report, while the ten-year CAGR of QAAUM of mutual funds serviced by the
company over the same period was 15.8%. The five-year CAGR of QAAUM of
mutual funds between March 2015 and March 2020 was 18% according to the
CRISIL Report, while the five year CAGR of the QAAUM of mutual funds serviced
by CAMS over same period was 21%.
Further, its mutual fund clients had 1.977 cr SIP accounts as of June 30, 2020.
The growth of the assets under management (“AUM”) of its mutual fund clients
is important to the company, as a substantial portion of its mutual fund
revenues are based on the mutual fund AAUM of its clients. As a result of the
nature of the funds and services provided, CAMS charges more fees from equity
mutual funds as compared to other categories of mutual funds. The AUM of
equity mutual funds serviced by the company grew from Rs2,18,000 cr as of
March 31, 2015 to Rs5,22,800 cr as of March 31, 2020, at a CAGR of 19.1%, and
as of June 30, 2020 was Rs6,19,000 cr.
Over the years, the company has leveraged its domain expertise, processes and
infrastructure to diversify its offering of services to cater to a variety of other
financial services sectors.
 In its electronic payment collections services business, the company manages
mandated transactions, including registering of mandates, initiation of
collections, reconciliation and the related reporting services for mutual
funds, non-banking finance companies and banks.
 In its insurance services business, the company offers processing of new
business applications, holding policies in dematerialized form, servicing
policies and other support functions to insurance companies. For the
financial year 2018, CAMS had a market share of 39% of the insurance
repository business, based on e-insurance policies being managed,
according to the CRISIL Report.
 In its alternative investment funds services business, the company provides
services to investors, manages records and performs fund accounting and
reporting, among other services, for alternative investment and other types
of funds.
 In its banking and non-banking services business, the company offers
digitization of account opening, facilitation of loan processing and back-
office processing services to banking and non-banking financial
institutions.
 In its KYC registration agency business, the company verifies and maintains
KYC records of investors for use by financial institutions.
 In its software solutions business, company’s technology team develops
software for its mutual funds services business and for mutual fund
companies.

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SEPTEMBER 18, 2020

CAMS technology driven infrastructure and services are integral to the

operations of its clients. Its solutions help reduce the need for its clients to
make significant investments in operational infrastructure, thereby allowing
them to increase their focus on their core business activities. The company
offers an integrated and customized portfolio of services through its pan-India
physical network comprising 271 service centres spread over 25 states and five
union territories as of June 30, 2020, and which are supported by call centres in
four major cities, four back offices (including a disaster recovery site), all having
real time connectivity, continuous availability and data replication and
redundancy. Further, the company offers many of its services online and
through its several mobile device applications, to investors, its clients, their
distributors and their channel providers. The continued development of
proprietary platforms and applications has furthered its competitive technology
advantage.

Corporate Structure Chart

The following chart sets forth the corporate structure of the company, where all
its Subsidiaries were wholly owned as of the date of Red Herring Prospectus:

Corporate Structure Chart

Source: Company RHP

Products, Services and Operations

The company is a financial infrastructure and services provider operating in
seven business verticals: Mutual Funds Services Business, Electronic Payment
Collection Services Business, Insurance Services Business, Alternative
Investment Fund Services Business, Banking and Non-Banking Services
Business, KYC Registration Agency Business and Software Solutions Business.

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Key Performance Indicators

FY15 FY16 FY17 FY18 FY19 FY20 Jun'20
Total AAUM in MF Serviced (Rs in cr) 6,57,250 7,93,147 10,29,363 13,75,852 15,84,120 18,14,968 17,43,331
Equity oriented* (Rs in cr) 1,77,410 2,32,743 2,92,110 4,88,475 6,23,251 6,70,667 5,75,065
No. of transaction handled (cr) 9.75 11.52 15.18 25.00 32.19 32.84 7.59
No. of live folios (cr) 1.70 1.93 2.30 3.18 3.71 3.94 3.98
No. of total investor folios (cr) 38.34 40.03 44.01 54.84 63.56 70.88 71.76
No. of PAN accounts handled (cr) 0.62 0.72 0.87 1.24 1.48 1.59 1.60
No. of SIP transactions processed (cr) 4.64 6.32 8.39 13.22 19.17 23.75 5.85
* Does not include arbitrage schemes; Source: Company RHP

Management Background
Name Designation Profile
Mr. Dinesh Kumar Mehrotra Chairman and Independent Director He holds a bachelor’s degree in science (honours) from the University
of Patna. He has previously served as the chairman and the managing
director of Life Insurance Corporation of India, where he also served
as the executive director of international operations.
Mr. Anuj Kumar Wholetime Director and CEO He holds a bachelor’s degree in engineering (mechanical) from Birla
Institute of Technology, a post-graduate diploma in management
from the Indian Institute of Management Calcutta. He joined the
company as chief operating officer – asset management Services in
March, 2016 and was appointed as whole time Director and CEO with
effect from November 6, 2018.
Mr. Somasundaram M. Chief Financial Officer He holds a bachelors degree in commerce from the University of
Madras. He has previously been associated with SRF Limited, Henkel
SPIC India Ltd., Pond’s India Limited, Hindustan Lever Limited and
TVS Electronics Limited. He joined the Company on July 6, 2009 as a
general manager and was promoted to Chief Financial Officer with
effect from April 1, 2018.
Mr. Srikanth Tanikella Chief Operations Officer He holds a bachelors degree in technology (chemical engineering)
from the Indian Institute of Technology Delhi and a post graduate
diploma in management from the Indian Institute of Management
Calcutta. He joined the Company on December 18, 2014 as a senior
vice president and was promoted to Chief Operations Officer on April
6, 2018.
Source: Company RHP

Strengths
Largest Infrastructure and Services Provider in a Large and Growing
Mutual Funds Market
According to the CRISIL Report, the QAAUM of the Indian mutual funds has
grown from approximately Rs7,60,000 cr as of March 2010 to approximately
Rs27,00,000 cr as of March 2020 at a CAGR of 13.4% and was Rs24,60,000 cr
as of June 2020. The growth was led by the increase in share of mutual funds
in household savings as well as the number of individual and institutional
investors investing in mutual funds. According to the CRISIL Report, the number
of folios grew from 4.17 cr as of March 2015 to 8.97 cr as of March 2020 at a
CAGR of approximately 17% and was 9.15 cr as of June 2020.
CAMS is India’s largest registrar and transfer agent of mutual funds with an
aggregate market share of approximately 70% based on mutual fund AAUM
managed by its clients and serviced by them during July 2020, according to the
CRISIL Report. Over the last five years, the company has grown its market share
from approximately 61% during March 2015 to approximately 69% during March
2020, based on AAUM serviced, according to the CRISIL Report.

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The nature of its services to mutual funds spans multiple facets of their
relationship with their investors, distributors and regulators. By providing a
range of services, the company plays an important role in developing and
maintaining its clients’ market perception. The ten-year CAGR of QAAUM of
mutual funds between March 2010 and March 2020 was 13.4% according to the
CRISIL Report, while the ten-year CAGR of QAAUM of mutual funds serviced by
CAMS over the same period was 15.8%. Further, the AUM of equity mutual funds
serviced by the company grew from Rs2,18,000 cr as of March 31, 2015 to
Rs5,22,800 cr as of March 31, 2020, at a CAGR of 19.1%, and as of June 30, 2020
was Rs6,19,000 cr. In addition, the number of folios serviced by CAMS grew from
3.94 cr as of March 31, 2020 to 3.94 mn as of June 30, 2020.
The company believes its operating model has assisted in contributing to the
growth of its mutual fund clients by providing real time, uninterrupted, pan India
services. CAMS mutual fund clients include four of the five largest mutual funds
as well as nine of the 15 largest mutual funds based on AAUM during July 2020,
according to the CRISIL Report. The term of relationship with HDFC Asset
Management Company Limited, ICICI Prudential Asset Management Company
Limited, SBI Funds Management Private Limited and Aditya Birla Capital
Limited, four largest mutual fund clients, averages approximately 18 years as of
June 30, 2020.
According to the CRISIL Report, while the growth in the Indian mutual fund
industry is expected to be near-flat during the financial year 2021 on account of
the COVID-19 pandemic, QAAUMs are expected to increase after the financial
year 2021. The key growth drivers of the Indian mutual fund industry are
expected to include anticipated economic growth, a growing investor base,
higher disposable incomes and investable surplus, increasing aggregate
household and financial savings, increase in geographical penetration as well
as better awareness, ease of investing, digitalization and perception of mutual
funds as long-term wealth creators. As a result of its domain expertise,
established processes, technology driven infrastructure and marquee clients,
the company is well positioned to capitalize on such growth.

Integrated Business Model and Longstanding Client Relationships in

Mutual Funds Services Business
Utilizing its diverse portfolio of technology enabled services and leveraging its
pan-India physical network, domain expertise of the Indian financial services
ecosystem and a comprehensive risk management system, the company has
built an integrated business model and has longstanding client relationships in
its mutual funds services business. CAMS business model and client
relationships offer its several key advantages.
 The company offers an integrated business model wherein its portfolio of
services offered and its pan-India physical network enable its clients to
leverage its technology-driven financial infrastructure thereby reducing the
need for them to make significant investments to develop and offer such
services. Further, it is challenging for its clients to replicate its ecosystem
(CAMS physical network or its technology platforms) in-house and moving
to a competitor is time consuming and disruptive. According to the CRISIL
Report, the amount of time to be invested in migration, a high risk of
business disruption, data loss, as well as customer and regulatory issues
make it a bigger task to switch to a competitor.

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 CAMS pan-India physical network comprising 271 service centers spread

over 25 states and five union territories as of June 30, 2020, which are
supported by call centers in four major cities - Mumbai, New Delhi, Chennai
and Kolkata is time consuming, difficult and expensive to build and
maintain.
 The company has developed a committed client base its clients rely on its
infrastructure and expertise built over decades of experience for day-to-day
aspects of their business building on client loyalty. The average term of its
relationship with its ten largest mutual fund clients is 19 years as of June
30, 2020 and over a five year period, the company has lost one client as a
result of the merger of such fund with another fund that was serviced by a
competitor.
 CAMS engagement with its clients, their distributors, their investors and
regulators is frequent and is with an intent to further enhance the quality
and security of services provided. According to the CRISIL Report, the
company has accumulated significant domain knowledge on mutual fund
investors and the mutual fund business through years of experience in
servicing investors.

Scalable Technology Enabled Ecosystem

The company believes that its competitive technology advantage stems from
the capability, functionality, integration and scalability of its proprietary
platforms, which deliver breadth and quality of service and cost efficiencies. Its
proprietary platforms are built to absorb growth in the number of investors,
assets and trading volumes. From handling over 98 mn transactions in the
financial year 2015, the company handled over 328 mn transactions in the
financial year 2020. The continuing investment in its proprietary IT platforms
continues to strengthen this competitive advantage by further increasing
operating leverage, driving ongoing innovation, anticipating industry
developments and delivering increased efficiencies while continuing to provide
its clients and other stakeholders with its integrated services.
CAMS technology related spend, which includes capital expenditure incurred
towards computers and accessories, software and license fees, software
expenses and employee costs of its Subsidiary, SSPL, for the three months
ended June 30, 2020 and the financial year 2020 was Rs13,564 cr and Rs60.426
cr, respectively. The use of advanced technology to innovate and improve its
services for not only its clients but also their investors, their distributors,
channel providers and regulators is embedded in the culture of the company.
CAMS commitment to client and investor service is evidenced by a satisfaction
rate of over 95% as of March 31, 2020, in the SEBI mandated investor
satisfaction survey. Further, SEBI complaints, as a percentage of transactions
handled, reduced from 0.015% in the financial year 2015 to 0.004% in the
financial year 2020.
The company’s technology driven infrastructure is integral to the operations of
its clients. Its solutions help reduce the need for its clients to make significant
investments in infrastructure, thereby allowing them to increase their focus on
their core business activities. Its IT team comprising of over 606 qualified
professionals as of June 30 2020, manage a comprehensive proprietary IT
infrastructure, develop innovative products and ensure systems and data
security, in addition to offering 24x7 support to its clients. Further, they offer
many of its services online and through its mobile device applications, for
investors, its clients, their distributors and their channel providers. CAMS have
developed in-house and own Investrak.NET, a mutual fund transfer agency

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SEPTEMBER 18, 2020

platform, myCAMS, a mobile device investor interface application, GoCORP, a

distributor focused application, and MFDEx a market intelligence
product/information database, among many other services.
CAMS infrastructure includes 271 service centers, four call centers, four back
offices of which three are in Chennai (two of these offices also serve as its
Registered Office and Corporate Office) and one in Coimbatore, having real time
connectivity, continuous availability and data replication and redundancy. The
company also has an aggregate of over 275 TB data storage in its businesses
as of June 30, 2020. Its business continuity planning is done at its disaster
recovery site in Mumbai.

Strong Focus on Processes and Risk Management

CAMS clients are regulated financial institutions and the services its provide to
them must be accurate, timely and continuous, secure and technologically
advanced as they are considered to be necessary to the functioning of financial
services industry. In its mutual funds services business, the company assists
its clients with their compliance requirements, including submission of reports
to regulators. The company continuously monitor its systems and processes
and endeavors to not only benchmark them against Indian competitors but also
incorporate industry best practices and technological advancements in its
operations.
The company believes that its relentless focus on systems and processes has
contributed significantly to its growth and allowed them to become a trusted
provider of services to its clients and other stakeholders. The company
continues to automate processes and enhance its systems and risk
management to try to ensure that all its obligations and regulatory requirements
are fulfilled on a timely basis and without error. Several regulatory entities have
oversight over different parts of its business, and its business and operations
are subject to audits by a number of entities, including the auditors of its mutual
fund clients. In addition, its mutual funds services business has had regulatory
oversight from the SEBI for over 26 years.
The company has implemented a cyber-security and cyber resilience policy and
established a technology committee comprising of eminent specialists from IIT
Bombay and IIT Madras, as well as the banking industry. The committee meets
quarterly and reviews the robustness and resilience of its systems and
processes. The minutes of the committee is submitted to its Board, and actions
taken by them pursuant to such report are submitted to the SEBI. Examples of
initiatives taken by them to improve its processes and systems include limiting
one email address per investor account, implementing a DNS utility to prevent
virus attacks, establishing direct real time data backup, among others.

Experienced Management and Board and Marquee Shareholders

CAMS management team has extensive experience in a variety of financial
services sectors, with a demonstrated ability to grow and diversify its business
and innovate its services. Mr. Anuj Kumar, its Whole-time Director and Chief
Executive Officer has over two decades of experience and has been with the
company since June, 2016. Its key Management Personnel has average work
experience of over 27 years and have been with the company for over five years.
CAMS Board of Directors collectively possess an effective mix of skills and
attributes with significant business, operational, technology, finance, insurance,
legal and investment experience in a diverse range of industries.

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CAMS marquee shareholders include Great Terrain (an affiliate of Warburg

Pincus), HDFC, HDFC Bank and NSEIL, among others. The company has and
expects to continue to benefit from capital sponsorship and professional
expertise of its marquee shareholders. Its shareholders have assisted the
company in implementing strong corporate governance standards, which they
believe have been critical to the growth of its operations.

Strategies
Maintain Leadership Position by enhancing Service Offerings to Mutual
Fund Clients
A key element of the company business strategy is to continuously enhance the
scope of its service offerings in its core mutual fund registrar and transfer
agency business and further deepen integration with its clients and improve
value delivery. The company has been focused on adding services for its
existing mutual fund clients relating to servicing of investors, interface with
investors, distributors and other stakeholders, risk management, process
automation, data analytics and business intelligence in order to grow and
maintain its share of business and revenues from its mutual fund clients. For
example, its anti-money laundering service, which detects, investigates and
reports suspicious transactions is separately provided and additionally
chargeable. The company also recently launched edge360, a tool for
distributors to enable the tracking of fees for transactions and the ability to
view, track and manage portfolios of investors.
Further, the company is focused on increasing its mutual fund client base by
attracting new mutual funds being launched in India as its clients. The company
believes its market leading position and its strengths adequately position them
to increase the number of its mutual fund clients.

Continue the Technology-led Services Innovations

The company believes that electronic transformation and advancement is
integral to the mutual fund industry. Its market position has been a function of
its in-house technology capabilities, which the company plan to continue
investing in. The company spends on technology has continued to be
significant and they believe the advantages available to them by developing and
investing in technology include client commitment and loyalty, economies of
scale, effective risk management, scalability, expansion to the adjacent
financial services sectors, among others. The company is engaged in several
such initiatives in the areas of reconciliation, brokerage computation,
digitization of paper transactions, quality control, among others. In 2008, its
technology-led innovation was for the investors - a consolidated financial
statement spanning different mutual funds (which has now become market
practice). Further, the company has developed myCAMS, an award winning B2C
mobile application to provide individual investor interface and facilitate mutual
fund transactions for them, as well as GoCORP, a technology platform for
corporate investors. The company processed 7.59 cr and 32.84 cr transactions
for the three months ended June 30, 2020 and the financial year 2020,
respectively, through its mobile application myCAMS. The company also
provides MFDEx, a sales and business intelligence tool to several mutual funds,
including clients of its competitors.

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Achieve Leadership in Individual Businesses and then Target Scale

CAMS mutual funds services business had an aggregate market share of
approximately 70% based on mutual fund AAUM managed by its clients and
serviced by its during July 2020, and its insurance services business had a
market share of 39% during the financial year 2018, based on e-insurance
policies being managed, according to the CRISIL Report. The company invest in
creating sustainable and scalable business platforms early on in the life cycle,
and focus on delivering incremental value to its clients. Most of its businesses
and client relationships in such businesses, continue to grow over time and at
scale the businesses contribute favourably to its profitability. Key new offerings
continue to be imbued with a platform character and are technology-based. For
example, the company launched CAMSPay, which is an end-to-end highly
automated National Automated Clearing House (“NACH”) platform that
supports electronic payments through the National Payments Corporation of
India platform. While CAMS expect its revenues from its mutual funds business
will continue to increase, the company expects a growth in revenues from its
other existing businesses.

Improve Automation in Businesses

Through automation, the company targets to not only improve cost efficiencies
but also enhance customer experience. The company is currently engaged in
several automation projects, including automation of subscription
reconciliation, purchase and SIP processes, document receipts and storage.
CAMS applications, such as myCAMS, GoCORP, digiSIP, CAMSserv, edge360
are aimed not only at enhancing the investor and distributor ease of operation
but also to automate the flow of transactions, thereby reducing manual efforts
and risks associated with manual efforts.

Financials
Profit and Loss statement
Y/E Mar (Rs Cr) FY18 FY19 FY20 Jun'20
Revenue From Operations 641.54 693.64 699.63 148.63
Other Income 16.28 18.16 21.71 14.84
Total Income 657.82 711.81 721.34 163.46

EXPENSES
Employee benefits expense 226.33 274.62 257.99 64.55
Finance costs 7.89 10.47 9.70 2.34
Depreciation and amortization expense 40.24 50.40 48.51 10.67
Operating expenses 94.08 105.82 86.61 16.80
Other expenses 62.70 69.63 67.75 15.83
Total Expenses 431.24 510.94 470.57 110.19

Profit/(loss) before exceptional items and tax 226.58 200.87 250.78 53.27
Exceptional Items 0 0 0 0

Restated Profit/(loss) before tax 226.58 200.87 250.78 53.27

Current Tax 85.07 76.43 65.42 13.86

MAT Credit (Entitlement) -0.56 -0.95 3.43 0
Deferred tax -4.23 -5.51 8.47 -1.41
Net Tax expense / (benefit) 80.28 69.98 77.32 12.45

Restated Profit/(loss) for the year 146.31 130.90 173.46 40.83

Source: Company RHP

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Balance Sheet
Y/E Mar (Rs Cr) FY18 FY19 FY20 Jun'20
Non-current assets
Property, plant and equipment 70.04 71.03 65.25 63.27
Right To Use Asset 106.93 97.17 88.57 72.62
Intangible assets 146.58 151.83 144.68 142.49
Financial Assets
Investments 2.03 2.04 0.53 0.55
Loans 12.25 11.64 12.28 13.04
Others 1.22 0 0 0
Deferred tax assets (net) 13.78 20.23 8.33 9.73
Other non-current assets 5.93 1.84 0.29 0.28
Total Non Current Assets 358.76 355.77 319.93 301.98

Current assets
Financial Assets
Investments 216.13 230.50 305.61 315.52
Trade receivables 22.51 26.97 32.03 43.64
Cash and Cash equivalents 7.40 4.86 23.22 2.92
Bank Balances other than Cash and Cash equivalents 20.26 38.64 27.44 81.04
Loans 0.45 0.67 0.57 0.76
other Financial assets 0.16 0.37 5.78 5.88
Current Tax Assets (Net) 0 0 15.04 12.00
Other current assets 72.18 78.54 72.91 71.71
Total current Assets 339.09 380.55 482.60 533.47

Total Assets 697.85 736.32 802.53 835.45

Equity
Share Capital 48.76 48.76 48.76 48.79
Other Equity 394.76 392.53 491.05 479.41
Non Controlling Interest 7.69 8.15 - -
Total Equity 451.21 449.44 539.81 528.20

Non-current liabilities
Financial liabilities
Other Financial liabilities 86.55 83.96 77.21 64.56
Provisions 56.65 71.15 73.50 74.97
Total Non current liabilities 143.20 155.11 150.71 139.53

Current liabilities
Financial liabilities
Trade payables
a.Total outstanding dues to
micro enterprises and small enterprises 0.18 0.35 0.69 0.28
b. dues to Others 33.41 34.66 35.29 43.30
Other financial liabilities 25.84 24.81 25.91 42.71
Provisions 7.99 17.09 10.44 14.26
Current Tax Liabilities (Net) 1.13 1.91 0 0
Other current liabilities 34.89 52.98 39.68 67.18
Total Current Liabilities 103.44 131.78 112.01 167.73

Total Equity and Liabilities 697.85 736.32 802.53 835.45

Source: Company RHP

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Cash Flow Statement

Y/E Mar (Rs Cr) FY18 FY19 FY20 Jun'20
Cashflow from operating activities 161.95 186.80 201.15 38.97
Cashflow from investing activities -18.95 -31.19 -83.85 1.13
Cashflow from Financing activities -138.37 -158.14 -98.94 -60.39
Net increase / (decrease) in Cash and cash equivalents 4.63 -2.54 18.36 -20.30
Cash and cash equivalents at the beginning of the period 2.76 7.40 4.86 23.22
Cash and cash equivalents at the end of the period 7.40 4.86 23.22 2.92
Source: Company RHP

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RATING SCALE (PRIVATE CLIENT GROUP)

Definitions of ratings
BUY – We expect the stock to deliver more than 15% returns over the next 12 months
ADD – We expect the stock to deliver 5% - 15% returns over the next 12 months
REDUCE – We expect the stock to deliver -5% - +5% returns over the next 12 months
SELL – We expect the stock to deliver < -5% returns over the next 12 months
NR – Not Rated. Kotak Securities is not assigning any rating or price target to the stock.
The report has been prepared for information purposes only.
SUBSCRIBE – We advise investor to subscribe to the IPO.
RS – Rating Suspended. Kotak Securities has suspended the investment rating and price target
for this stock, either because there is not a sufficient fundamental basis for determining, or
there are legal, regulatory or policy constraints around publishing, an investment rating or
target. The previous investment rating and price target, 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.
NOTE – Our target prices are with a 12-month perspective. Returns stated in the rating scale are our
internal benchmark.
FUNDAMENTAL RESEARCH TEAM (PRIVATE CLIENT GROUP)
Rusmik Oza Arun Agarwal Amit Agarwal, CFA Priyesh Babariya
Head of Research Auto & Auto Ancillary Transportation, Paints, FMCG Research Associate
rusmik.oza@kotak.com arun.agarwal@kotak.com agarwal.amit@kotak.com priyesh.babariya@kotak.com
+91 22 6218 6441 +91 22 6218 6443 +91 22 6218 6439 +91 22 6218 6433

Sanjeev Zarbade Jatin Damania Purvi Shah K. Kathirvelu

Cap. Goods & Cons. Durables Metals & Mining, Midcap Pharmaceuticals Support Executive
sanjeev.zarbade@kotak.com jatin.damania@kotak.com purvi.shah@kotak.com k.kathirvelu@kotak.com
+91 22 6218 6424 +91 22 6218 6440 +91 22 6218 6432 +91 22 6218 6427

Sumit Pokharna Pankaj Kumar Krishna Nain

Oil and Gas, Information Tech Midcap M&A, Corporate actions
sumit.pokharna@kotak.com pankajr.kumar@kotak.com krishna.nain@kotak.com
+91 22 6218 6438 +91 22 6218 6434 +91 22 6218 7907

TECHNICAL RESEARCH TEAM (PRIVATE CLIENT GROUP)

Shrikant Chouhan Amol Athawale Sayed Haider
shrikant.chouhan@kotak.com amol.athawale@kotak.com Research Associate
+91 22 6218 5408 +91 20 6620 3350 sayed.haider@kotak.com
+91 22 62185498

DERIVATIVES RESEARCH TEAM (PRIVATE CLIENT GROUP)

Sahaj Agrawal Malay Gandhi Prashanth Lalu Prasenjit Biswas, CMT, CFTe
sahaj.agrawal@kotak.com malay.gandhi@kotak.com prashanth.lalu@kotak.com prasenjit.biswas@kotak.com
+91 79 6607 2231 +91 22 6218 6420 +91 22 6218 5497 +91 33 6615 6273

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Disclosure/Disclaimer (Private Client Group)

Kotak Securities Limited established in 1994, is a subsidiary of Kotak Mahindra Bank Limited. Kotak Securities is one of India's largest brokerage and distribution
house.
Kotak Securities Limited is a corporate trading and clearing member of BSE Limited (BSE), National Stock Exchange of India Limited (NSE), Metropolitan Stock
Exchange of India Limited (MSE), National Commodity and Derivatives Exchange (NCDEX) and Multi Commodity Exchange (MCX). Our businesses include stock
broking, services rendered in connection with distribution of primary market issues and financial products like mutual funds and fixed deposits, depository services
and Portfolio Management.
Kotak Securities Limited is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL).
Kotak Securities Limited is also registered with Insurance Regulatory and Development Authority as Corporate Agent for Kotak Mahindra Old Mutual Life Insurance
Limited and is also a Mutual Fund Advisor registered with Association of Mutual Funds in India (AMFI). We are registered as a Research Analyst under SEBI (Research
Analyst) Regulations, 2014.
We hereby declare that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are registered in last five years.
However SEBI, Exchanges and Depositories have conducted the routine inspection and based on their observations have issued advise/warning/deficiency letters/ or
levied minor penalty on KSL for certain operational deviations. We have not been debarred from doing business by any Stock Exchange / SEBI or any other authorities;
nor has our certificate of registration been cancelled by SEBI at any point of time.
We offer our research services to clients as well as our prospects.
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Kotak Securities – Private Client Group Please see the Disclosure/Disclaimer on the last page For Private Circulation 21
SEPTEMBER 18, 2020

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Kotak Securities – Private Client Group Please see the Disclosure/Disclaimer on the last page For Private Circulation 22