India Morning Brief

7 July 2023

World Indices
% Change
Close Daily YTD
BSE Sensex 65,786 0.5 8.1
NSE 50 Nifty 19,497 0.5 7.7
CNX Midcap 36,373 1.0 15.4
Contents of Morning Brief S&P 4,447 -0.2 15.8
FTSE 100 7,348 -1.3 -1.4
Company/Sector Update Nasdaq 13,792 -0.2 31.8
 Utilities | Power demand takes a breather; ready to bounce back Hang Seng 18,533 -3.0 -6.3
Shanghai Comp 3,206 -0.5 3.8
(Sudhanshu Bansal, sudhanshu.bansal@jmfl.com, Tel: (91 22) 66303128)
 Telecom | 1QFY24 Preview: MBB upgrades to drive moderate earnings growth Sensex and Total Turnover (US$ bn)

(Dayanand Mittal, dayanand.mittal@jmfl.com, Tel: (91 96) 19388870)

 Ports and Logistics sector update | Key takeaways from expert on logistics
(Achal Lohade, achal.lohade@jmfl.com, Tel: (91 22) 66303081)

Net Institutional Flows (US$ bn)

Cash FII Cash MF
07-04-23 306.9 07-04-23 -39.8
MTD 606.9 MTD 39.2
YTD 11772.9 YTD 7153.2
Derivatives
FII Index Stocks
07-05-23 56.1 10.6
MTD 440.0 12.0

Turnover (US$ bn)

BSE %Chg NSE %Chg
Cash 0.6 25.7 8.2 0.3
F&O 8.2 0.3 2933.4 -42.8

Top Gainers/Losers* Turnover spurt over 5 days avg. BSE Sectoral & Broad Indices
Gainers %Chg Company Val-mn %Chg Sector Close %Chg %YTD
Hindustan Zinc 7.8 Hdfc Bank Ltd 44.19 6.1 Auto 35,554 1.2 22.9
Torrent Power 5.0 Reliance Inds 24.82 3.4 Bankex 51,154 0.5 4.6
Mahindra & Mah 5.0 Icici Bank Ltd 15.91 2.2 FMCG 19,266 0.0 19.8
Aurobindo Phar 4.1 Housing Dev Fi 13.59 1.9 Cap.Goods 41,003 0.7 23.0
Apollo Hospita 4.0 Eicher Motors 12.78 1.8 IT 30,079 -0.1 4.9
Hindustan Petr 3.8 Mahindra & Mah 10.14 1.4 Metal 20,870 0.4 0.1
Yes Bank Ltd 3.8 Axis Bank Ltd 10.12 1.4 Oil & Gas 19,069 2.0 -6.6
Losers %Chg 5 Day Movement Price %Chg Power 4,117 2.0 -6.0 JM Financial Research is also available on:
Hdfc Life Insu -1.8 Punjab Natl Ba 59 17.1 Realty 4,301 2.2 24.8 Bloomberg - JMFR <GO>,
Jindal Steel & -1.8 Jsw Energy Ltd 310 14.1 Healthcare 26,124 1.1 13.4 Thomson Publisher & Reuters,
Cholamandalam -1.8 Union Bank Ind 80 12.7 PSU 11,144 1.3 11.2
Shriram Financ -1.7 Hindustan Petr 302 12.2 BSE100 19,879 0.5 7.9
S&P Capital IQ, FactSet and Visible Alpha
Godrej Consume -1.6 Hero Motocorp 3,171 12.1 BSE200 8,404 0.6 7.0
Hdfc Asset Man -1.5 Bank Of India 81 11.7 BSE500 26,497 0.6 7.7 Please see Appendix I at the end of this report
Note: *From BSE200 for Important Disclosures and Disclaimers and
Research Analyst Certification.
JM Financial Institutional Securities Limited
INDIA MORNING BRIEF 7 July 2023

Utilities | Power demand takes a breather; ready to bounce back Key Statistics
% Change
Sector Update Close Daily YTD
The momentum witnessed in power demand growth consecutively over the last 2 years US$/Inr* 83 -0.3 0.3
(8.2%/9.5% YoY in FY22/23) seems to have taken a breather in 1QFY24; demand was flat US$/Euro 1 0.4 1.8
US$/Yen 144 0.6 -8.8
(0.1% increase) in the quarter. However, taking a broader view, we expect growth in power
10 yr G-Sec(%) 7 0.1 -2.7
demand to bounce back in the coming months with the onset of El Niño leading to a rise in Call rate (%) 6 -5.5 -4.8
temperatures and overall power demand. Also, during the week, the Earth recorded its hottest Brent-spot (US$/bbi) 77 0.3 -9.5
temperature ever (17.18°C) due to the combination of factors including global warming. Such Gold (US$) 1,925 0.5 5.5
Aluminum(LME,US$/t) 2,097 -1.2 -10.7
occurrences are expected to increase, going forward.
Copper(LME,US$/t) 8,304 -0.5 -0.7
Zinc(LME,US$/t) 2,351 -2.2 -21.7
Telecom | 1QFY24 Preview: MBB upgrades to drive moderate earnings growth Steel(US$/t) 3,900 0.5 -6.7
*+/- chg reflects $appreciation/depreciation
Sector Update
We expect Jio and Bharti’s EBITDA to grow by a modest 2-3% QoQ driven by MBB upgrades-led
Top Sensex Movers
growth of 1-2% in ARPU; ARPU growth will also be aided by one more day during the quarter. c.85% of Sensex wt.
We expect Jio’s net subs to grow by ~7mn in 1QFY24 and ARPU to rise 0.8% QoQ to INR 180, Company Price Cont Daily YTD
driving 2.3% QoQ growth in revenue and 2.5% QoQ growth in EBITDA. For Bharti, we expect Reliance Inds 2,638 165.6 2.1 3.5
MBB subs addition at ~6mn, resulting in 1.8% QoQ rise in ARPU to INR 196, driving 2.4% QoQ Hdfc Bank Ltd 1,675 8.4 0.1 2.9
Icici Bank Ltd 959 10.1 0.1 7.7
growth in India wireless revenue and 2.3% QoQ growth in EBITDA. We expect VIL’s subs losses Housing Dev Fin 2,796 -0.1 0.0 6.0
to continue; however, its ARPU is likely to rise 1.7% QoQ to INR 137. We expect net tenancy Infosys Ltd 1,344 -7.5 -0.2 -10.9
additions for Indus Towers to remain healthy; hence, EBITDA is likely to rise 3% QoQ in 1QFY24. Itc Ltd 474 -6.3 -0.2 43.7
Tata Consultancy 3,323 2.9 0.1 4.0
Bharti remains our top pick (revised TP of INR 975) as we expect a structural uptrend in industry Axis Bank Ltd 982 314.8 1.6 5.1
ARPU (9-10% CAGR over FY24-28) driven by future investment needs – the industry requires an Larsen & Toubro 2,488 18.6 0.7 19.2
ARPU of INR 267-296 in the next 3-4 years for a pre-tax RoCE of 12-15% to justify capex. We Kotak Mahindra 1,877 16.6 0.7 2.8
maintain HOLD on Indus Towers (revised TP of INR 160) due to duopoly risks and a SELL on VIL Hindustan Unilev 2,758 2.3 0.1 7.7
Bajaj Finance Lt 7,771 -16.5 -0.8 18.2
(unchanged TP of INR 6) due to concerns around survivability. Bharti Airtel 870 8.9 0.4 7.9
State Bank Ind 592 5.0 0.2 -3.4
Ports and Logistics sector update | Key takeaways from expert on logistics Asian Paints Ltd 3,396 11.1 0.6 9.8

Sector Update
Top Turnover (NSE+BSE)
We recently hosted Mr Harpreet Singh Malhotra, Founder and CMD of Tiger Logistics, India’s *% of total turnover
leading freight forwarding company. The interactions were broadly around - a) EXIM trade Company INR Bn %
momentum, b) the current trend in freight rates, c) changes in industry practices post Covid-19, Hdfc Bank Ltd 44.2 6.1
d) key stakeholders in the EXIM supply chain, e) ease of doing business, and f) digitalisation in Reliance Inds 24.8 3.4
Icici Bank Ltd 15.9 2.2
EXIM logistics. Global trade is seeing a slowdown on account of weak demand (excessive Housing Dev Fin 13.6 1.9
stocking earlier in some pockets), while decline in freight rates has stopped and is expected to Eicher Motors 12.8 1.8
inch up. Digitilisation and government’s key initiatives to ease logistics compliance through Mahindra & Mahin 10.1 1.4
Axis Bank Ltd 10.1 1.4
National Logistics Policy’22 and PM Gati Shakti are well placed to promote foreign trade among Tata Motors Ltd 9.3 1.3
MSMEs and SMEs across the various manufacturing clusters in the country. Tiger Logistics’ digital Bajaj Finance Lt 8.3 1.1
initiative FreightJar is seeing strong traction. Infosys Ltd 8.2 1.1
Tata Power Co 7.4 1.0
State Bank Ind 7.1 1.0
Kotak Mahindra 7.0 1.0
Apollo Hospitals 6.7 0.9
Maruti Suzuki In 6.7 0.9

Future OI gainers
*% of total turnover
Company Vol (mn) %Chg
Future OI gainers 0.0 0.0
Multi Commodity Exch India 2.1 20.3
Aurobindo Pharma Ltd 12.1 20.0
Mahindra & Mahindra Ltd 16.0 18.8
Eicher Motors Ltd 5.4 17.9
Future OI losers 0.0 0.0
Gujarat Gas Ltd 7.4 -3.4
City Union Bank Ltd 31.3 -2.1
Wipro Ltd 33.8 -2.0
Intellect Design Arena Ltd 3.2 -1.8
MW Position 0.0 0.0
Vodafone Idea Ltd 625.1 14.0
Punjab National Bank 306.7 54.0
Tata Steel Ltd 229.3 14.5
Idfc Ltd 160.9 51.7
#Contribution to Change in Sensex, MWPL – Market wide
position limit, ** One day prior data

JM Financial Institutional Securities Limited Page 2

INDIA MORNING BRIEF 7 July 2023

Earnings Calendar –July/August 2023

Monday Tuesday Wednesday Thursday Friday Saturday
3 4 5 6 7 8
Chalet Hotels Hatsun Agro BSE
Solara Active
Monday Tuesday Wednesday Thursday Friday Saturday
10 11 12 13 14 15
PCBL Ltd HCL Technologies Angel One
TCS Tata Metaliks
Monday Tuesday Wednesday Thursday Friday Saturday
17 18 19 20 21 22
LTIMindtree CIE Automotive Jubilant Pharmova Coforge Atul AU Small Finance
ICICI Lombard ICICI Securities HDFC Life Insur. ICICI Bank
ICICI Pru Life Infosys JSW Steel
L&T Technology Mphasis UltraTech Cem.
Persistent Sys
Zensar Tech.
Monday Tuesday Wednesday Thursday Friday Saturday
24 25 26 27 28 29
BASF India Asian Paints Bajaj Finance Bajaj Finserv Exide Inds.
HDFC AMC Bajaj Auto Dr Reddy's Labs Latent View M & M Fin. Serv.
Jubilant Food. Glaxosmi. Pharma Nestle India Star Health Insu
Mahindra Holiday Mahindra Life. Nippon Life Ind.
UTI AMC Tata Consumer
Tech Mahindra
Monday Tuesday Wednesday Thursday Friday Saturday
31 1 2 3 4 5
Bosch Cholaman.Inv.&Fn Blue Star Rain Industries
Castrol India Dabur India SCI
Lak. Mach. Works Kansai Nerolac
Monday Tuesday Wednesday Thursday Friday Saturday
7 8 9 10 11 12
Hindalco Inds. Max Financial Endurance Tech. ABB Amara Raja Batt.
Esab India
Source: Capitaline database

JM Financial Institutional Securities Limited Page 3

INDIA MORNING BRIEF 7 July 2023

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JM Financial Institutional Securities Limited Page 4

INDIA MORNING BRIEF 7 July 2023

Valuation Table
Coverage Universe 06-Jul-23 Price P/E based valuation
Mkt Cap 12M (%) EPS (Rs) EPS Gr (%) PE (x) PEG EV/EBITDA (x) ROE (%)
Company Rating CMP (Rs)
(Rs bn) TP (Rs) upside FY22A FY23A FY24E FY25E 23-25 FY23A FY24E FY25E (x) FY22A FY23A FY24E FY25E FY22A FY23A FY24E FY25E
Airlines (Ashutosh Somani, ashutosh.somani@jmfl.com, +91-22-66303083) `
Indigo HOLD 1,040 2,699 2,270 -15.9 -159.8 -7.9 160.6 151.2 NA NA 16.8 17.8 NA NM NM 9.1 8.9 0.0 0.0 0.0 NA
Automobiles (Vivek Kumar, vivek.kumar@jmfl.com, +91-22-66303019)
Ashok Leyland* BUY 485 165 180 8.9 0.1 4.4 7.5 8.9 42.4 37.5 22.0 18.5 0.4 51.3 17.5 12.4 10.7 0.4 16.4 24.1 24.5
Bajaj Auto* BUY 1,423 4,918 4,600 -6.5 162.5 198.9 236.6 270.2 16.6 24.7 20.8 18.2 1.1 22.7 18.0 14.8 12.5 18.1 21.6 25.0 25.5
Eicher Motors* BUY 882 3,222 4,050 25.7 58.0 95.9 119.8 137.9 19.9 33.6 26.9 23.4 1.2 37.7 22.8 18.7 15.7 15.5 22.1 23.0 21.9
Hero MotoCorp* BUY 634 3,172 3,450 8.8 123.8 145.6 190.7 229.5 25.5 21.8 16.6 13.8 0.5 17.1 14.9 11.2 9.2 16.0 17.9 22.0 24.3
Mahindra & Mahindra* BUY 1,926 1,549 1,600 3.3 42.4 66.6 72.8 80.5 10.0 23.3 21.3 19.2 1.9 25.7 16.9 14.0 12.2 14.0 19.6 18.7 17.9
Maruti Suzuki* BUY 2,978 9,859 11,500 16.6 124.7 266.5 394.8 458.9 31.2 37.0 25.0 21.5 0.7 44.8 22.9 16.4 13.5 7.1 14.1 18.3 18.5
Tata Motors BUY 2,155 601 625 4.0 -28.2 2.2 27.8 39.7 329.8 NA 21.6 15.1 0.0 9.4 7.4 5.6 4.7 NA 1.8 21.2 24.5
TVS Motor* BUY 624 1,314 1,275 -3.0 19.4 31.4 40.7 50.6 27.0 41.9 32.3 26.0 1.0 32.6 24.2 19.4 15.9 20.5 27.4 28.3 28.1
Auto Ancillaries (Vivek Kumar, vivek.kumar@jmfl.com, +91-22-66303019), (Ronak Mehta, ronak.mehta@jmfl.com, +91-22-66303125)
Apollo Tyres BUY 261 411 450 9.5 10.1 17.0 24.6 29.7 32.0 24.1 16.7 13.8 0.4 12.5 9.6 7.7 6.6 5.6 8.8 11.6 12.6
Bharat Forge BUY 398 855 900 5.2 21.2 12.3 27.3 36.2 71.4 69.4 31.4 23.6 0.3 21.2 24.7 17.5 14.3 16.5 8.7 17.7 20.4
Ceat Ltd BUY 101 2,485 2,150 -13.5 20.5 54.3 141.8 160.9 72.1 45.8 17.5 15.4 0.2 17.3 12.6 8.0 7.2 2.5 6.5 15.7 15.7
Motherson Sumi Wiring India BUY 257 58 70 20.4 1.5 1.1 1.5 2.0 33.2 52.8 37.6 29.8 0.9 24.8 33.0 24.2 19.4 52.2 39.8 44.7 43.6
Samvardhana Motherson International BUY 620 92 120 31.1 1.4 2.4 4.9 6.6 67.2 38.9 18.8 13.9 0.2 15.5 11.8 8.1 6.4 5.6 7.4 13.7 15.9
Sona BLW Precision Forgings BUY 307 524 665 26.9 5.5 6.8 10.0 13.3 40.3 77.6 52.5 39.4 1.0 54.9 44.1 29.7 22.8 19.6 18.4 23.3 25.8
Suprajit Engineering BUY 60 437 430 -1.6 11.7 11.0 17.0 21.5 39.9 39.8 25.7 20.3 0.5 22.8 19.9 14.6 12.1 15.6 13.2 17.7 19.1
Uniparts India BUY 26 576 780 35.4 37.4 45.4 48.8 56.0 11.0 12.7 11.8 10.3 0.9 10.2 8.8 7.7 6.8 27.2 27.0 24.3 23.5
Building Materials (Achal Lohade, achal.lohade@jmfl.com, +91-22-66303081)
Century Plyboards* BUY 150 676 730 7.9 14.3 17.8 17.0 20.8 8.3 38.1 39.8 32.5 3.9 28.1 26.2 26.6 20.7 22.4 22.8 18.2 18.8
Cera Sanitaryware* HOLD 98 7,538 6,600 -12.4 118.1 164.1 190.2 220.2 15.9 45.9 39.6 34.2 2.2 44.3 34.4 29.3 24.6 16.3 19.6 19.6 19.6
Greenply Industries* BUY 22 180 260 44.2 7.5 8.5 5.7 10.7 12.6 21.3 31.6 16.8 1.3 16.2 16.8 11.7 8.7 18.9 17.6 10.4 17.3
Greenlam Industries HOLD 60 474 370 -21.9 7.8 9.4 10.9 13.3 18.8 50.1 43.5 35.5 1.9 32.3 28.2 23.1 16.9 15.3 14.8 13.5 14.7
Greenpanel Industries BUY 42 345 440 27.5 19.0 20.2 17.2 19.3 -2.1 17.1 20.1 17.9 NA 11.3 9.4 13.0 11.3 26.5 22.6 16.5 16.4
Kajaria Ceramics BUY 198 1,242 1,300 4.7 23.7 22.2 31.5 37.0 29.2 56.0 39.5 33.5 1.1 31.9 33.2 24.3 21.1 18.9 15.8 20.3 21.3
Prince Pipes and Fittings BUY 72 650 730 12.3 22.4 19.1 19.7 24.5 13.3 34.1 33.0 26.5 2.0 17.4 28.3 18.0 14.8 21.4 16.0 15.1 16.8
Somany Ceramics BUY 30 702 860 22.6 20.9 13.4 31.8 38.9 70.4 52.4 22.0 18.0 0.3 16.7 18.5 12.2 10.5 12.8 7.5 16.1 17.4
Cement
ACC BUY 342 1,820 2,475 36.0 102.0 48.7 104.1 125.3 60.4 37.4 17.5 14.5 0.2 8.8 16.6 8.9 7.2 14.2 6.5 13.2 14.4
Ambuja Cement* BUY 857 432 570 32.0 14.6 11.7 14.7 18.3 24.8 36.8 29.3 23.6 1.0 13.1 18.8 12.6 10.1 12.1 8.7 9.0 8.9
Dalmia Bharat BUY 411 2,193 2,180 -0.6 43.4 35.7 59.8 85.8 55.0 61.4 36.7 25.6 0.5 16.3 18.3 13.6 11.0 5.6 4.1 6.5 8.8
Heidelberg Cement HOLD 40 177 195 10.0 11.1 9.0 15.1 16.7 36.3 19.7 11.7 10.6 0.3 8.8 10.5 6.7 5.9 16.5 13.0 20.9 21.2
JK Cements* HOLD 254 3,290 2,700 -17.9 98.4 95.1 123.1 138.2 20.5 34.6 26.7 23.8 1.2 19.2 19.1 15.0 13.4 19.1 16.1 18.0 17.3
JK Lakshmi Cement* BUY 81 688 665 -3.4 38.2 31.2 45.9 61.9 41.0 22.1 15.0 11.1 0.3 10.5 11.8 8.7 6.7 19.8 14.0 17.9 20.2
Orient Cement BUY 28 136 170 25.5 12.9 5.7 10.7 15.2 63.5 23.9 12.7 8.9 0.1 5.1 9.6 6.8 6.1 18.6 7.5 13.2 16.7
The Ramco Cements SELL 221 935 695 -25.6 37.4 23.7 36.7 44.8 37.5 39.4 25.5 20.9 0.6 20.0 19.7 15.0 12.7 14.3 8.1 11.6 12.8
Sagar Cements BUY 27 210 280 33.5 25.2 1.5 10.8 14.9 219.4 NA 19.4 14.1 0.1 6.9 14.0 8.2 6.6 4.8 1.3 8.4 10.5
Shree Cement* BUY 874 24,219 24,660 1.8 633.6 363.5 717.7 863.3 54.1 66.6 33.7 28.1 0.5 22.3 27.0 16.9 13.9 14.1 7.4 13.4 14.3
UltraTech Cement* BUY 2,428 8,410 8,085 -3.9 244.9 186.9 285.8 332.0 33.3 45.0 29.4 25.3 0.8 22.6 25.0 17.7 15.4 15.3 10.5 14.6 15.0
Chemicals (Krishan Parwani, krishan.parwani@jmfl.com, +91-9662095500)
Anupam Rasayan HOLD 107 997 1,080 8.3 15.1 16.9 24.5 33.2 40.2 59.1 40.7 30.1 0.7 34.6 25.6 21.0 16.7 9.1 8.8 10.4 12.5
Aether Industries BUY 140 1,060 1,080 1.9 8.8 10.5 14.3 19.8 37.6 NA 74.2 53.4 1.4 80.0 70.3 51.4 37.1 38.8 16.0 11.1 11.4
Archean Chemical Industries BUY 66 539 810 50.4 19.6 34.6 52.6 65.1 37.1 15.6 10.2 8.3 0.2 12.8 9.1 6.4 4.6 NA 45.2 36.9 32.3
Clean Science and Technology BUY 146 1,374 2,325 69.2 21.5 27.8 34.4 44.2 26.1 49.5 40.0 31.1 1.2 47.8 35.5 27.7 21.2 34.9 33.2 30.8 29.5
Deepak Nitrite BUY 291 2,136 2,660 24.5 78.2 62.4 87.2 99.4 26.1 34.2 24.5 21.5 0.8 18.0 22.3 15.8 13.7 37.5 22.9 25.4 22.8
Fine Organic Industries SELL 148 4,826 3,250 -32.7 81.8 192.6 118.2 101.5 -27.4 25.1 40.8 47.6 NA 41.9 18.3 26.7 29.9 29.5 47.6 21.8 16.1
Galaxy Surfactants HOLD 94 2,650 2,650 0.0 74.1 107.5 98.7 100.8 -3.1 24.7 26.9 26.3 NA 24.2 16.6 17.2 16.2 18.3 22.0 17.0 14.8
India Pesticides HOLD 26 224 235 5.2 13.8 12.5 13.9 15.6 11.8 17.9 16.1 14.3 1.2 11.6 12.7 11.5 10.0 30.7 20.3 18.8 17.7
Navin Fluorine BUY 229 4,616 5,495 19.0 53.1 75.7 111.5 142.6 37.2 61.0 41.4 32.4 0.9 64.2 42.9 31.9 25.3 15.1 18.6 23.0 24.4
PI Industries BUY 585 3,854 3,865 0.3 55.5 80.4 94.6 113.5 18.8 47.9 40.7 34.0 1.8 49.5 35.9 27.6 22.6 14.7 18.4 18.2 18.2
SRF Limited BUY 675 2,276 3,380 48.5 63.8 73.0 81.9 93.9 13.4 31.2 27.8 24.2 1.8 22.1 20.0 16.6 14.2 24.5 22.9 21.3 20.3
Tatva Chintan Pharma Chem HOLD 39 1,770 1,635 -7.6 43.3 22.1 35.3 50.8 51.5 80.0 50.1 34.8 0.7 35.7 66.8 34.5 23.9 30.0 9.9 14.2 17.7
UPL Ltd. BUY 505 673 965 43.5 51.2 48.6 60.3 69.9 19.9 13.8 11.2 9.6 0.5 7.9 7.2 6.4 5.8 17.2 13.6 14.6 15.0

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INDIA MORNING BRIEF 7 July 2023

Mkt Cap 12M (%) EPS (Rs) EPS Gr (%) PE (x) PEG EV/EBITDA (x) ROE (%)
Company Rating CMP (Rs)
(Rs bn) TP (Rs) upside FY22A FY23A FY24E FY25E 23-25 FY23A FY24E FY25E (x) FY22A FY23A FY24E FY25E FY22A FY23A FY24E FY25E
Consumer Durables (Achal Lohade, achal.lohade@jmfl.com, +91-22-66303081)
Bajaj Electricals* BUY 141 1,221 1,440 17.9 13.0 20.0 24.0 38.4 38.5 61.0 50.8 31.8 0.8 55.5 38.3 30.6 21.2 9.0 12.4 13.5 20.1
Crompton Greaves Consumer Electricals HOLD 185 290 280 -3.3 9.3 7.5 7.9 9.3 11.6 38.7 36.9 31.0 2.7 24.9 24.8 22.5 19.8 27.0 18.6 18.0 19.6
Havells India* BUY 820 1,309 1,420 8.5 19.0 16.9 21.8 29.6 32.3 77.4 60.1 44.2 1.4 45.4 50.0 40.0 29.8 21.4 16.8 19.4 23.0
Stove Kraft BUY 15 452 570 26.1 17.2 10.8 18.2 25.9 54.6 41.7 24.9 17.4 0.3 16.3 16.2 12.4 9.7 16.9 9.3 14.1 18.1
TTK Prestige HOLD 105 757 820 8.3 21.2 18.8 20.0 22.9 10.4 40.3 37.8 33.1 3.2 24.9 27.6 25.2 22.0 18.5 14.4 13.9 14.5
V-Guard Industries* BUY 122 282 320 13.7 5.3 4.4 6.0 8.4 38.4 64.2 47.0 33.5 0.9 35.9 39.3 27.5 21.9 17.4 12.5 15.3 19.1
Diversified Services (Achal Lohade, achal.lohade@jmfl.com, +91-22-66303081)
CMS Info Systems BUY 58 375 430 14.7 15.1 19.3 22.6 26.2 16.4 19.4 16.6 14.3 0.9 13.6 10.4 8.5 7.1 20.0 21.1 21.0 21.4
Consumer Staples & Retail (Richard Liu, richard.liu@jmfl.com, +91-22-66303064), (Mehul Desai, mehul.desai@jmfl.com, +91 9987997838)
Aditya Birla Fashion & Retail BUY 203 214 240 12.3 -1.2 -0.4 -0.4 3.3 NA NA NA 64.4 NA 18.7 14.5 12.6 9.9 NA NA NA 6.9
Asian Paints HOLD 3,261 3,399 3,290 -3.2 32.5 42.9 54.0 59.8 18.1 79.3 62.9 56.9 3.1 67.3 51.6 42.6 38.0 23.5 27.6 31.0 31.0
Avenue Supermarts Ltd BUY 2,483 3,816 4,255 11.5 23.2 34.6 43.8 56.1 27.4 NA 87.2 68.0 2.5 98.3 67.6 53.4 41.6 11.6 15.1 16.2 17.5
Bikaji Foods International Ltd BUY 104 416 440 5.8 3.1 5.2 7.5 9.7 36.3 80.0 55.7 43.1 1.2 74.2 48.3 34.7 27.6 10.9 14.6 18.0 19.6
Britannia Industries BUY 1,246 5,174 5,190 0.3 63.3 80.8 96.1 108.1 15.7 64.0 53.8 47.9 3.1 57.3 44.4 37.9 33.7 50.0 63.9 60.5 58.0
Campus Activewear BUY 95 312 420 34.8 3.4 3.8 5.4 7.5 39.8 81.1 57.8 41.5 1.0 40.0 38.1 29.1 22.2 27.9 24.0 25.9 27.6
Colgate-Palmolive India HOLD 484 1,780 1,695 -4.8 38.5 38.8 44.4 48.5 11.8 45.9 40.1 36.7 3.1 30.4 30.6 27.1 24.8 72.1 61.2 74.9 86.5
Dabur HOLD 1,049 592 580 -2.0 10.3 9.6 11.3 12.6 14.5 61.4 52.6 46.8 3.2 46.2 48.7 39.3 34.9 22.7 19.7 21.1 21.5
Devyani International BUY 231 192 200 4.2 1.5 2.4 2.2 3.1 14.9 80.7 87.8 61.1 4.1 48.7 35.3 27.1 20.7 44.8 34.8 24.0 26.7
Go Fashion (India) BUY 60 1,118 1,340 19.9 6.6 15.3 20.6 29.7 39.3 73.1 54.2 37.6 1.0 49.4 27.8 21.3 16.4 10.6 17.2 19.3 22.5
Godrej Consumer Products BUY 1,104 1,080 1,100 1.9 16.9 17.1 21.2 24.4 19.7 63.3 50.9 44.2 2.2 44.2 42.9 34.3 30.3 16.5 13.8 14.8 15.4
Hindustan Unilever BUY 6,478 2,757 2,790 1.2 37.4 42.0 47.1 52.5 11.8 65.6 58.6 52.5 4.5 49.8 45.3 40.5 36.4 18.2 19.9 21.7 23.5
ITC BUY 5,890 474 475 0.2 12.4 15.4 17.4 19.1 11.4 30.8 27.3 24.8 2.2 26.9 21.6 19.1 17.2 24.8 29.1 31.2 33.2
Marico Ltd. BUY 682 528 585 10.9 9.5 10.1 11.6 13.0 13.3 52.3 45.4 40.7 3.1 40.0 37.2 31.8 28.3 37.3 36.4 37.2 37.1
Restaurant Brands Asia HOLD 55 112 125 12.1 -1.9 -1.5 -0.9 0.9 NA NA NA NA NA 55.3 32.4 20.6 13.5 NA NA NA 2.3
Sapphire Foods India BUY 88 1,390 1,570 12.9 7.3 36.7 15.6 21.6 -23.3 37.8 89.3 64.2 NA 27.8 20.0 16.3 12.9 6.3 20.7 7.6 9.7
Tata Consumer Products BUY 785 845 870 3.0 10.5 11.9 15.4 17.7 22.3 71.2 54.8 47.7 2.1 44.9 41.5 33.5 30.1 6.5 7.0 8.6 9.6
Titan Company BUY 2,758 3,106 3,090 -0.5 24.9 36.5 44.8 53.4 21.0 85.1 69.4 58.1 2.8 82.4 56.4 45.9 39.0 26.4 30.7 29.7 28.6
Westlife Development BUY 135 864 995 15.1 -0.1 7.2 9.9 12.6 32.9 NA 87.6 68.4 2.1 71.4 36.2 28.5 23.8 NA 21.7 24.7 26.1
Hotels (Sandeep Tulsiyan, sandeep.tulsiyan@jmfl.com, +91-22-66303085)
Chalet Hotels BUY 91 443 330 -25.5 -3.7 2.2 7.5 NA NA NA 58.8 NA NA 79.3 29.8 19.4 NA NA 3.3 10.6 NA
Industrials (Sandeep Tulsiyan, sandeep.tulsiyan@jmfl.com, +91-22-66303085)
AIA Engineering BUY 303 3,215 3,300 2.7 65.6 112.0 117.3 132.0 8.6 28.7 27.4 24.4 2.8 41.4 24.2 22.1 19.1 13.7 20.2 18.2 18.0
Amber Enterprises BUY 77 2,280 2,600 14.0 32.4 48.6 61.9 86.4 33.4 46.9 36.9 26.4 0.8 28.9 19.9 16.9 13.8 6.5 9.0 10.4 13.0
Bharat Electronics* BUY 912 125 135 8.2 3.2 4.1 4.7 5.3 14.0 30.3 26.4 23.4 1.7 25.3 19.5 17.3 15.3 20.5 23.5 23.9 24.0
Blue Star BUY 152 790 1,600 102.5 17.4 27.1 39.1 57.2 45.2 29.1 20.2 13.8 0.3 22.6 16.1 13.0 9.2 17.5 22.1 25.6 30.4
Cochin Shipyard* HOLD 76 577 380 -34.1 44.6 41.5 43.6 NA NA 13.9 13.2 NA NA 7.2 8.7 7.2 NA 14.1 12.1 12.0 NA
Cummins India* BUY 531 1,916 1,750 -8.7 28.2 41.3 49.1 57.9 18.5 46.4 39.0 33.1 1.8 58.2 41.0 33.1 27.2 16.8 22.3 23.5 24.1
Data Patterns (India) BUY 107 1,917 1,500 -21.8 18.1 23.4 31.8 37.6 26.7 82.0 60.3 51.0 1.9 69.4 57.5 41.3 34.8 24.0 19.3 21.8 21.2
Dixon Technogies BUY 254 4,261 4,000 -6.1 32.5 42.6 63.0 88.5 44.2 NA 67.6 48.2 1.1 66.2 49.3 37.1 28.2 22.0 22.2 26.1 29.3
Harsha Engineers International BUY 43 469 480 2.4 10.1 13.5 16.7 21.9 27.2 34.6 28.2 21.4 0.8 27.3 22.8 17.6 13.5 19.4 15.5 13.2 15.1
GMM Pfaudler BUY 67 1,487 1,800 21.1 30.2 40.3 56.5 71.7 33.4 36.9 26.3 20.7 0.6 20.7 16.5 13.4 11.2 28.3 27.2 28.1 28.4
Kirloskar Oil Engines* BUY 58 401 480 19.7 10.7 20.6 24.9 29.4 19.4 19.4 16.1 13.6 0.7 21.8 12.8 10.3 8.5 7.5 13.3 14.8 15.9
MTAR Technologies BUY 59 1,913 2,300 20.2 19.8 33.6 48.8 65.8 39.9 56.9 39.2 29.1 0.7 62.6 38.9 26.6 19.4 12.2 18.1 22.1 24.7
Rolex Rings BUY 58 2,131 2,500 17.3 48.4 72.7 84.6 100.0 17.2 29.3 25.2 21.3 1.2 26.2 22.4 18.5 14.9 29.3 30.8 27.6 26.3
Schaeffler India* HOLD 484 3,096 3,000 -3.1 40.2 55.5 64.5 75.3 16.5 55.8 48.0 41.1 2.5 48.4 36.2 31.0 26.3 18.5 21.8 22.0 22.5
SKF India* BUY 253 5,120 5,200 1.6 79.9 106.1 131.2 148.6 18.3 48.3 39.0 34.5 1.9 44.8 32.5 27.6 24.3 22.9 24.8 25.9 25.8
Techno Electric BUY 41 384 450 17.1 15.3 8.6 18.5 24.0 66.9 44.7 20.8 16.0 0.2 25.9 48.3 23.7 17.1 9.7 4.9 9.9 12.0
Tega Industries BUY 68 1,018 900 -11.6 16.5 28.6 33.1 40.9 19.5 35.6 30.7 24.9 1.3 37.9 25.9 21.1 17.7 16.2 21.3 19.1 19.7
Timken India BUY 247 3,283 3,600 9.7 43.5 51.2 63.9 80.1 25.1 64.1 51.4 41.0 1.6 48.2 43.4 34.7 27.6 21.8 20.9 21.2 21.8
Thermax SELL 267 2,240 1,800 -19.6 26.2 37.8 49.1 60.0 25.9 59.2 45.7 37.4 1.4 61.7 43.9 31.7 25.7 9.3 12.3 14.3 15.6
Voltas BUY 254 769 1,100 43.0 15.3 9.6 20.4 29.3 74.4 79.7 37.8 26.2 0.4 31.8 38.8 24.8 18.1 9.6 5.8 11.7 15.1

JM Financial Institutional Securities Limited Page 6

INDIA MORNING BRIEF 7 July 2023

Mkt Cap 12M (%) EPS (Rs) EPS Gr (%) PE (x) PEG EV/EBITDA (x) ROE (%)
Company Rating CMP (Rs)
(Rs bn) TP (Rs) upside FY22A FY23A FY24E FY25E 23-25 FY23A FY24E FY25E (x) FY22A FY23A FY24E FY25E FY22A FY23A FY24E FY25E
IT Services (Abhishek Kumar, abhishek.kumar@jmfl.com, +91-22-66303053)
Coforge BUY 290 4,745 4,660 -1.8 107.4 133.9 183.4 227.4 30.3 35.4 25.9 20.9 0.7 26.2 20.7 16.5 13.4 25.5 28.4 32.1 31.3
HCL Tech HOLD 3,203 1,180 1,050 -11.0 49.6 54.7 58.7 67.2 10.8 21.6 20.1 17.6 1.6 14.7 13.3 12.0 11.0 21.8 23.3 24.0 26.6
Infosys HOLD 5,577 1,344 1,370 1.9 52.4 57.6 59.6 66.8 7.7 23.3 22.5 20.1 2.6 17.2 15.6 14.7 13.4 29.2 32.0 30.7 32.5
LTI Mindtree HOLD 1,532 5,178 4,490 -13.3 133.1 149.0 165.4 200.5 16.0 34.7 31.3 25.8 1.6 27.3 23.5 20.3 16.7 36.6 28.6 26.6 26.5
Persistent Systems HOLD 376 4,889 4,320 -11.6 90.3 120.5 156.1 194.8 27.1 40.6 31.3 25.1 0.9 37.9 24.0 20.0 16.0 22.4 25.1 27.1 27.4
Tech Mahindra HOLD 1,149 1,179 1,070 -9.3 62.9 54.8 63.0 70.4 13.3 21.5 18.7 16.8 1.3 14.4 14.5 13.3 12.0 21.5 17.7 19.9 22.0
Tata Consultancy HOLD 12,159 3,323 3,410 2.6 103.6 115.2 127.3 148.0 13.4 28.8 26.1 22.4 1.7 22.2 19.7 17.4 15.2 42.6 45.9 43.4 39.1
Wipro BUY 2,175 396 450 13.6 22.3 20.7 24.0 27.5 15.4 19.2 16.5 14.4 0.9 11.9 11.4 10.0 8.7 20.2 15.8 16.3 18.3
Internet (Swapnil P o tdukhe, swapnil.po tdukhe@jmfl.co m, +91-22-62241876), (Sachin Dixit, sachin.dixit@jmfl.co m, +91-8630513614), (A bhishek Kumar, abhishek.kumar@jmfl.co m, +91-22-66303053)
Affle (India) SELL 128 959 800 -20.2 10.6 16.2 18.4 22.5 18.0 62.0 54.4 44.5 2.5 98.9 60.2 44.4 35.5 45.9 27.9 18.6 18.6
CarTrade Tech BUY 24 508 710 39.8 -26.5 6.7 11.5 16.7 58.0 75.7 44.2 30.3 0.5 -13.1 52.3 23.7 14.5 NA 1.7 2.8 3.9
Delhivery HOLD 285 390 370 -5.2 -17.0 -13.6 -4.8 0.4 NA NA NA NA NA -53.5 -61.4 109.6 36.5 NA NA NA 0.3
Easy Trip Planners HOLD 73 42 55 31.9 0.6 0.8 1.1 1.3 30.9 54.1 39.0 31.6 1.0 53.2 40.5 27.6 22.1 53.2 44.3 40.2 34.3
FSN E-Commerce Ventures BUY 411 144 210 45.8 0.8 0.1 0.6 1.4 315.9 NA NA NA NA 38.9 161.7 86.8 52.0 4.3 1.7 11.5 22.2
Info Edge India* BUY 577 4,468 4,950 10.8 689.2 31.8 64.4 75.0 53.5 NA 69.4 59.6 1.1 117.0 69.5 56.5 47.9 96.3 3.3 7.5 8.3
IndiaMART InterMESH BUY 174 2,836 5,900 108.1 48.4 46.2 50.8 66.6 20.0 61.3 55.9 42.6 2.1 48.2 56.3 41.6 31.5 17.1 14.4 14.5 17.1
Just Dial HOLD 63 741 730 -1.5 9.3 19.1 39.2 43.3 50.4 38.7 18.9 17.1 0.3 -841.4 26.0 10.1 6.5 3.0 4.5 8.7 8.8
Nazara Technologies HOLD 48 725 630 -13.2 4.5 8.9 7.5 10.6 9.1 81.3 97.0 68.3 7.5 42.6 39.9 27.6 17.2 3.4 5.5 4.4 5.9
PB Fintech BUY 321 712 980 37.6 -19.8 -10.0 0.1 5.4 NA NA NA NA NA -27.7 -45.1 -125.6 537.5 NA NA 0.1 4.3
Route Mobile BUY 101 1,612 1,910 18.5 27.8 50.0 59.8 76.5 23.6 32.2 27.0 21.1 0.9 36.0 21.4 16.5 12.8 14.3 17.9 18.8 20.3
Zomato BUY 641 75 105 41.0 -2.1 -1.2 -0.4 0.8 NA NA NA 99.0 NA -22.4 -41.1 -134.2 70.4 NA NA NA 3.2
Metals & Mining (Ashutosh Somani, ashutosh.somani@jmfl.com, +91-22-66303083)
Hindalco Industries BUY 958 426 535 25.5 62.6 46.2 50.4 50.8 4.8 9.2 8.5 8.4 1.7 4.8 5.9 5.2 4.8 19.2 11.9 11.2 10.1
Hindustan Zinc BUY 1,419 336 335 -0.3 23.1 24.9 25.7 26.9 4.0 13.5 13.1 12.5 3.1 7.6 8.1 7.6 7.1 29.3 44.5 71.5 56.9
Jindal Steel & Power BUY 626 613 675 10.0 81.5 46.9 53.5 71.4 23.3 13.1 11.5 8.6 0.4 4.8 7.2 6.4 5.1 24.7 12.9 13.2 15.3
JSW Steel BUY 1,923 796 720 -9.5 88.6 13.5 41.6 48.5 89.1 58.7 19.1 16.4 0.2 6.4 13.5 9.1 7.9 37.6 4.9 14.3 14.5
NMDC HOLD 314 107 115 7.7 32.0 14.7 16.3 15.8 3.7 7.3 6.6 6.8 1.8 2.1 4.1 4.0 4.1 28.9 14.9 20.0 17.6
SAIL SELL 363 88 75 -14.6 30.5 4.6 5.4 5.7 10.3 18.9 16.1 15.5 1.5 2.5 8.3 6.1 5.5 25.3 3.5 4.1 4.1
Shyam Metalics and Energy Ltd BUY 91 357 470 31.7 67.6 33.6 39.5 57.8 31.1 10.6 9.0 6.2 0.2 3.4 6.7 5.3 3.6 36.4 13.2 13.2 16.8
Tata Steel BUY 1,377 113 135 19.8 34.4 5.3 10.6 13.0 57.0 21.3 10.6 8.6 0.2 3.0 6.9 6.1 5.1 44.7 5.9 12.0 13.4
Media (Abhishek Kumar, abhishek.kumar@jmfl.com, +91-22-66303053)
Saregama India BUY 78 405 450 11.1 8.4 9.8 11.1 13.7 18.0 41.3 36.4 29.6 1.6 34.7 32.1 26.7 20.8 16.2 13.3 13.9 15.5
Sun TV Network BUY 183 464 730 57.4 41.7 43.3 50.2 53.0 10.6 10.7 9.2 8.7 0.8 6.6 5.6 5.1 4.6 21.6 19.6 20.3 19.7
Zee Entertainment BUY 182 189 300 58.4 11.5 4.5 8.2 11.4 58.5 41.9 23.0 16.7 0.3 10.1 16.0 13.3 9.7 10.5 4.0 7.2 9.5
Oil & Gas (Dayanand Mittal, dayanand.mittal@jmfl.com, +91-9619388870)
Bharat Petroleum BUY 853 393 415 5.6 49.5 17.7 64.1 49.3 66.8 22.2 6.1 8.0 0.1 7.2 13.0 5.3 6.0 20.0 7.2 23.4 15.8
GAIL BUY 729 111 125 12.6 15.8 8.1 10.6 11.6 20.0 13.7 10.4 9.5 0.5 4.7 11.0 7.4 6.8 20.3 9.5 12.1 12.4
Gujarat Gas* BUY 327 476 600 26.2 18.7 22.2 21.1 24.5 5.1 21.4 22.6 19.4 3.8 16.0 13.0 13.7 11.6 25.4 24.1 19.3 19.6
Gujarat State Petro.* BUY 163 289 360 24.2 17.4 16.7 16.3 17.4 1.8 17.3 17.8 16.7 9.4 8.1 8.3 7.7 6.7 12.2 10.7 9.6 9.5
Hindustan Petro. BUY 428 302 290 -4.0 51.4 -49.2 74.6 67.1 NA NA 4.0 4.5 NA 8.5 -15.0 6.3 6.5 18.4 NA 28.9 21.2
Indraprastha Gas* BUY 343 489 570 16.5 18.8 20.6 24.0 27.0 14.3 23.7 20.4 18.1 1.3 17.1 16.4 13.8 11.9 20.5 20.6 21.6 20.6
Indian Oil HOLD 1,392 99 90 -8.4 17.8 6.9 18.4 15.1 47.8 14.2 5.4 6.5 0.1 5.5 9.1 6.3 6.8 20.5 7.2 17.9 13.7
Mahanagar Gas BUY 109 1,104 1,150 4.2 60.4 80.0 95.9 104.0 14.0 13.8 11.5 10.6 0.8 10.5 8.0 6.5 5.8 17.5 20.4 21.3 20.1
ONGC BUY 2,081 165 200 21.0 37.9 34.6 37.5 34.0 -0.9 4.8 4.4 4.9 NA 4.0 3.8 3.1 3.3 19.8 16.1 16.0 13.4
Oil India BUY 271 250 315 25.9 51.8 80.5 57.9 55.4 -17.0 3.1 4.3 4.5 NA 4.2 3.0 4.1 4.6 20.7 25.3 15.3 13.0
Petronet LNG* HOLD 343 228 220 -3.5 22.3 21.6 24.4 25.1 7.8 10.6 9.4 9.1 1.2 5.5 5.7 4.9 4.6 26.7 22.8 23.4 21.9
Reliance Industries BUY 17,854 2,639 2,900 9.9 85.5 98.6 103.0 128.0 14.0 26.8 25.6 20.6 1.5 18.3 14.1 12.8 11.2 7.8 8.3 8.2 9.4

JM Financial Institutional Securities Limited Page 7

INDIA MORNING BRIEF 7 July 2023

Mkt Cap 12M (%) EPS (Rs) EPS Gr (%) PE (x) PEG EV/EBITDA (x) ROE (%)
Company Rating CMP (Rs)
(Rs bn) TP (Rs) upside FY22A FY23A FY24E FY25E 23-25 FY23A FY24E FY25E (x) FY22A FY23A FY24E FY25E FY22A FY23A FY24E FY25E
Pharmaceuticals (Cyndrella Carvalho, cyndrella.carvalho@jmfl.com, +91-22-66303056)
Alembic Pharmaceuticals HOLD 129 657 680 3.5 35.2 17.4 26.5 37.7 47.2 37.7 24.8 17.4 0.4 14.8 19.0 13.3 9.8 13.4 7.1 11.3 14.1
Aster DM Healthcare BUY 155 311 300 -3.5 10.6 8.5 14.1 19.2 49.8 36.4 22.0 16.2 0.3 12.0 11.4 9.5 7.4 14.4 10.1 14.6 17.0
Biocon BUY 312 260 360 38.7 6.3 9.5 10.0 15.6 27.9 27.2 25.9 16.6 0.6 17.3 17.2 12.2 9.8 9.5 8.7 6.2 8.5
Cipla HOLD 824 1,021 950 -7.0 32.9 36.4 39.7 45.0 11.2 28.1 25.7 22.7 2.0 17.4 15.6 14.1 12.3 13.5 13.3 13.0 13.2
Dr Reddy's Labs BUY 871 5,232 5,980 14.3 174.0 238.2 289.4 316.2 15.2 22.0 18.1 16.5 1.1 18.6 12.7 11.0 9.7 15.8 18.7 19.1 17.9
Dr Lal Pathlabs BUY 195 2,339 2,525 7.9 41.3 28.6 45.1 54.9 38.5 81.7 51.9 42.6 1.1 34.3 38.7 31.2 25.9 25.0 15.1 21.0 22.2
Global Health BUY 185 690 665 -3.6 7.7 13.8 15.3 18.6 16.1 50.0 45.1 37.1 2.3 39.5 27.1 25.1 20.8 13.1 17.7 15.6 16.2
Ipca Laboratories BUY 193 760 900 18.4 34.8 18.6 30.4 41.1 48.7 40.9 25.0 18.5 0.4 14.6 20.8 15.3 10.9 17.3 8.3 12.5 14.9
Krsnaa Diagnostics BUY 18 582 930 59.7 21.8 19.8 25.7 38.8 40.1 29.4 22.7 15.0 0.4 11.5 12.9 9.8 6.9 14.9 8.7 10.4 13.8
Lupin HOLD 412 905 690 -23.8 27.3 9.4 25.8 37.5 99.2 95.8 35.1 24.1 0.2 19.0 24.4 15.9 12.0 9.6 3.5 9.1 12.2
Metropolis Healthcare BUY 75 1,474 1,670 13.3 38.8 27.9 36.9 46.4 28.9 52.8 40.0 31.7 1.1 22.2 26.1 21.9 17.9 24.9 15.2 17.8 19.4
Natco Pharma HOLD 127 697 730 4.8 24.5 39.2 54.2 55.8 19.3 17.8 12.8 12.5 0.6 46.8 12.5 8.9 8.4 10.7 15.7 18.8 17.1
Sun Pharma BUY 2,501 1,043 1,200 15.1 32.7 36.0 41.9 48.1 15.5 28.9 24.9 21.7 1.4 23.2 21.0 18.3 15.4 16.6 16.6 16.9 17.2
Torrent Pharmaceuticals HOLD 643 1,899 1,740 -8.4 37.3 36.8 48.0 64.5 32.5 51.6 39.6 29.4 0.9 27.9 24.2 19.6 16.4 21.4 20.5 23.9 26.4
Vijaya Diagnostics BUY 48 468 470 0.4 10.9 8.4 11.2 14.3 31.0 56.0 41.9 32.6 1.1 23.1 25.3 21.4 17.8 26.8 16.8 19.5 21.4
Zydus Lifesciences BUY 595 588 570 -3.1 20.8 25.4 28.4 32.3 12.7 23.2 20.7 18.2 1.4 18.9 16.0 13.7 12.1 14.2 14.9 15.4 15.5
Ports & Logistics (Achal Lohade, achal.lohade@jmfl.com, +91-22-66303081)
Adani Ports and SEZ BUY 1,599 740 850 14.9 25.5 24.9 35.4 43.9 32.8 29.7 20.9 16.9 0.5 19.9 18.9 13.4 11.6 15.6 12.8 15.7 17.1
Container Corporation* BUY 420 690 770 11.6 17.4 19.2 20.5 24.3 12.5 35.9 33.6 28.4 2.3 22.3 20.8 19.1 16.4 10.1 10.6 10.9 12.5
Gateway Distriparks BUY 36 73 80 9.6 4.0 4.8 5.1 6.0 11.2 15.1 14.2 12.2 1.1 9.9 10.9 3.5 3.1 13.0 14.2 14.0 15.3
Gujarat Pipavav* HOLD 57 119 106 -10.8 4.1 6.6 7.1 7.4 5.5 18.0 16.8 16.2 3.0 11.9 9.7 9.0 8.9 9.7 15.5 16.2 16.5
Real Estate
Brookfield India Real Estate Trust BUY 90 270 340 29.8 7.3 6.1 8.0 11.8 39.1 44.4 33.6 22.9 0.6 22.7 16.8 15.4 13.6 2.9 2.4 3.3 5.0
DLF BUY 1,271 514 465 -9.5 6.2 8.7 11.5 13.9 26.4 58.8 44.5 36.8 1.4 73.6 69.7 55.0 47.8 4.2 5.7 7.2 8.2
Godrej Properties SELL 444 1,599 1,205 -24.6 12.7 10.5 18.3 36.5 86.4 NA 87.2 43.8 0.5 345.9 736.1 655.8 111.0 4.1 3.3 5.5 10.2
Macrotech Developers BUY 702 728 1,425 95.7 25.0 28.7 29.0 38.6 15.8 25.3 25.1 18.9 1.2 20.8 23.6 19.2 15.0 14.4 11.4 11.0 13.2
Mahindra Lifespace Developers# BUY 74 476 475 -0.2 10.0 5.1 6.2 15.3 72.6 92.9 76.6 31.2 0.4 -86.7 -88.3 -2,157.6 55.7 9.0 4.3 5.0 11.4
Mindspace Business Parks REIT## BUY 179 302 375 27.6 8.6 6.6 11.5 15.1 51.1 45.7 26.3 20.0 0.4 16.9 15.8 13.3 11.9 3.2 2.6 4.6 6.3
Oberoi Realty BUY 378 1,040 1,030 -1.0 28.8 48.1 45.7 59.2 10.9 21.6 22.8 17.6 1.6 33.6 19.2 15.5 11.5 10.6 15.6 12.9 14.7
Phoenix Mills BUY 281 1,575 1,645 4.5 13.3 38.8 43.7 55.8 20.0 40.6 36.0 28.2 1.4 44.1 22.3 18.7 13.6 4.1 9.6 9.6 11.1
Prestige Estates Projects BUY 237 592 620 4.7 8.5 10.4 24.9 39.0 93.5 56.8 23.8 15.2 0.2 18.7 17.3 12.3 9.8 4.3 4.4 9.8 13.7
Sobha Ltd BUY 53 555 760 36.8 17.6 22.2 31.7 51.7 52.6 25.0 17.5 10.7 0.2 12.7 13.4 11.2 8.0 7.1 8.4 11.0 15.9
Sugar (Achal Lohade, achal.lohade@jmfl.com, +91-22-66303081)
Balrampur Chini* BUY 77 384 470 22.5 23.9 16.2 27.5 31.7 39.7 23.6 14.0 12.1 0.3 12.0 17.2 10.3 8.9 18.3 11.6 18.8 20.5
Telecom (Dayanand Mittal, dayanand.mittal@jmfl.com, +91-9619388870)
Bharti Airtel BUY 5,038 870 975 12.1 6.4 15.1 27.3 38.4 59.8 57.7 31.9 22.6 0.4 11.6 10.2 9.1 8.0 5.7 11.9 18.2 21.2
Indus Towers HOLD 447 166 160 -3.3 23.6 9.4 20.1 23.1 56.7 17.7 8.2 7.2 0.1 3.2 5.0 3.5 2.9 33.5 11.7 24.4 25.4
Vodafone Idea SELL 365 8 6 -21.3 -8.8 -6.0 -5.2 -4.5 NA NA NA NA NA 13.3 14.1 14.8 13.0 0.0 0.0 0.0 0.0
Utilities (Sudhanshu Bansal, sudhanshu.bansal@jmfl.com, +91-22-66303128)
CESC BUY 100 76 100 32.2 10.2 10.1 10.9 12.2 10.1 7.5 7.0 6.2 0.6 6.0 6.5 5.9 5.3 13.2 12.4 12.6 13.2
Coal India HOLD 1,446 235 255 8.8 28.5 46.6 30.5 31.9 -17.2 5.0 7.7 7.3 NA 4.4 2.7 4.0 3.7 44.1 57.2 31.0 28.8
JSW Energy HOLD 510 310 270 -13.0 10.5 8.3 9.4 11.4 17.7 37.5 32.9 27.1 1.5 15.9 20.3 17.7 10.9 10.8 7.5 8.0 9.1
NHPC BUY 472 47 55 16.5 3.8 4.2 4.5 4.9 8.0 11.1 10.4 9.5 1.2 15.0 13.2 11.2 10.3 11.1 11.8 12.0 12.2
NTPC* BUY 1,908 197 205 4.1 17.5 17.7 20.4 21.5 10.4 11.1 9.6 9.1 0.9 9.3 8.0 7.6 7.3 13.0 12.1 12.9 12.6
Power Grid Corp.* BUY 1,832 263 260 -1.0 20.1 21.7 21.8 22.6 1.9 12.1 12.0 11.6 6.0 8.0 7.3 7.0 6.7 19.2 19.0 17.8 17.4
SJVN Ltd. BUY 186 47 50 6.4 2.6 3.5 3.6 4.3 10.9 13.4 13.1 10.9 1.0 13.1 13.0 13.9 10.2 7.8 10.3 10.0 11.3
Tata Power HOLD 734 230 220 -4.1 8.0 13.4 16.1 17.3 13.6 17.1 14.3 13.3 1.0 15.7 13.5 12.6 10.9 10.7 14.4 16.0 14.4
Torrent Power HOLD 308 640 530 -17.2 28.8 44.1 66.6 72.3 28.1 14.5 9.6 8.9 0.3 10.5 8.4 6.7 6.3 13.7 20.2 27.0 25.4
Others (Ashutosh Somani, ashutosh.somani@jmfl.com, +91-22-66303083)
Central Depository Services HOLD 124 1,191 1,050 -11.9 29.8 26.4 28.8 34.9 14.9 45.1 41.4 34.1 2.3 31.0 35.4 33.3 27.9 31.6 23.9 23.5 25.7
Gokaldas Exports BUY 31 513 580 13.2 16.8 25.8 23.0 28.9 5.8 19.9 22.3 17.8 3.1 15.7 11.1 10.6 8.4 21.1 20.2 14.8 15.5
Trident Limited BUY 172 34 40 19.6 1.7 0.9 1.5 1.6 36.7 39.1 23.0 20.9 0.6 12.0 18.6 12.7 11.6 23.2 10.7 16.1 15.3
Welspun India BUY 94 95 110 15.7 6.1 2.0 5.1 7.2 89.5 47.2 18.5 13.2 0.1 9.0 14.8 8.3 6.6 15.8 4.9 11.8 14.9
# - Includes dividend to be paid out till March 2023¬ ## -Total Returns – Dividend + Capital Appreciation

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INDIA MORNING BRIEF 7 July 2023
EPS (Rs) PE (x) PEG P/BV (x) ROE (%)
Company Mkt Cap 12M (%) EPS Gr (%)
Rating (Rs bn) CMP (Rs) TP (Rs) upside FY22A FY23A FY24E FY25E 23-25 FY23A FY24E FY25E (x) FY22A FY23A FY24E FY25E FY22A FY23A FY24E FY25E
Banking & Financial Services*
NBFC (Sameer Bhise, sameer.bhise@jmfl.com, +91 22 66303489)
Aavas Financiers BUY 122 1,538 1,840 19.7 45.2 54.4 66.9 83.5 23.9 28.3 23.0 18.4 0.8 4.3 3.7 3.2 2.7 13.7 14.2 15.0 16.0
Aptus Value Housing Finance BUY 126 253 315 24.6 7.4 10.1 12.1 15.0 21.8 25.0 20.9 16.9 0.8 4.3 3.8 3.3 2.8 15.1 16.1 16.8 18.0
Bajaj Finance BUY 4,706 7,766 9,500 22.3 116.5 190.4 247.5 316.9 29.0 40.8 31.4 24.5 0.8 10.7 8.6 7.0 5.6 17.4 23.5 24.6 25.5
Cholamandalam Invest. & Fin HOLD 958 1,166 940 -19.3 26.1 32.4 43.4 54.6 29.7 36.0 26.9 21.4 0.7 8.2 6.7 5.5 4.5 20.2 20.5 22.5 23.1
Five-Star Business Finance BUY 197 677 680 0.5 15.6 20.7 27.3 34.3 28.7 32.7 24.8 19.7 0.7 5.3 4.5 3.8 3.3 15.0 15.0 16.8 17.9
HDFC BUY 5,176 2,796 3,090 10.5 75.8 88.5 103.1 NA NA 31.6 27.1 NA NA 4.2 3.8 3.4 NA 12.0 12.8 13.3 NA
Home First Finance Company BUY 69 787 950 20.7 21.2 25.9 32.1 41.3 26.1 30.3 24.6 19.1 0.7 4.4 3.8 3.3 2.9 12.6 13.5 14.5 16.3
LIC Housing Finance BUY 219 398 470 18.0 41.6 52.5 57.8 70.9 16.2 7.6 6.9 5.6 0.3 0.9 0.8 0.7 0.7 10.1 11.2 11.2 12.4
L&T Finance Holdings BUY 325 131 125 -4.6 4.2 6.5 11.3 14.1 46.7 20.0 11.6 9.3 0.2 1.6 1.5 1.4 1.2 5.4 7.8 12.3 13.6
M&M Financial BUY 421 341 310 -9.1 8.0 16.1 20.0 27.3 30.3 21.2 17.1 12.5 0.4 2.7 2.5 2.2 1.9 6.5 12.1 13.6 16.5
PNB Housing Finance BUY 150 580 625 7.8 49.6 62.0 49.1 61.5 -0.4 9.3 11.8 9.4 NA 1.0 0.5 1.0 0.9 8.9 13.3 9.9 10.4
Poonawalla Fincorp BUY 278 362 450 24.3 4.9 6.9 13.7 19.8 68.7 52.1 26.5 18.3 0.3 4.6 0.5 2.6 2.3 9.1 13.3 12.3 13.5
Shriram Finance BUY 664 1,771 1,875 5.9 101.9 159.7 197.4 221.1 17.7 11.1 9.0 8.0 0.5 1.9 1.5 1.3 1.2 13.4 15.3 15.9 15.5
NBFC - MFI (Sameer Bhise, sameer.bhise@jmfl.com, +91 22 66303489)
CreditAccess Grameen BUY 203 1,280 1,450 13.3 22.9 52.0 76.0 94.6 34.9 24.6 16.8 13.5 0.4 4.8 4.0 3.3 2.7 9.1 17.8 21.5 22.2
Fusion Micro Finance BUY 59 581 640 10.1 2.6 38.6 53.1 69.1 33.9 15.1 10.9 8.4 0.2 3.6 2.5 2.1 1.7 1.7 21.2 20.9 22.6
Spandana Sphoorty Financial BUY 50 701 825 17.7 6.8 1.7 61.6 89.3 617.1 NA 11.4 7.8 0.0 1.6 1.6 1.4 1.2 1.6 0.4 13.4 16.9
Fintech (Sameer Bhise, sameer.bhise@jmfl.com, +91 22 66303489)
One 97 Communications BUY 552 870 885 0.0 -34.4 -28.0 -3.5 13.7 NM NM NM NM NM 4.3 4.2 5.3 4.9 -23.1 -13.1 -1.9 8.0
Small Finance Bank (Sameer Bhise, sameer.bhise@jmfl.com, +91 22 66303489)
AU Small Finance Bank HOLD 527 790 725 -8.2 17.9 21.4 28.6 37.6 32.5 36.9 27.7 21.0 0.6 6.7 4.8 4.2 3.5 16.6 15.5 16.2 18.2
Equitas Small Finance Bank BUY 104 93 90 -3.6 2.2 5.2 7.8 9.9 38.4 18.1 12.0 9.4 0.2 2.7 2.0 1.8 1.5 7.3 12.2 15.7 17.5
Ujjivan Small Finance Bank BUY 80 41 48 16.8 -2.4 5.6 6.6 7.8 18.0 7.3 6.3 5.2 0.3 2.8 2.0 1.6 1.2 NA 33.7 28.3 26.4
Private Sector Banks (Sameer Bhise, sameer.bhise@jmfl.com, +91 22 66303489)
AXIS Bank BUY 3,021 981 1,075 9.6 42.4 31.1 82.0 97.9 77.3 31.5 12.0 10.0 0.1 2.6 2.4 2.1 1.7 12.0 8.0 18.6 18.9
Bandhan Bank BUY 372 231 320 38.7 0.8 13.6 27.3 35.7 61.9 16.9 8.5 6.5 0.1 2.1 1.9 1.6 1.3 0.7 11.9 20.4 22.2
City Union Bank HOLD 97 131 170 29.6 10.3 12.6 15.0 18.3 20.5 10.4 8.8 7.2 0.3 1.5 1.3 1.1 1.0 12.2 13.3 13.9 14.9
DCB Bank HOLD 40 129 130 0.9 9.2 14.9 17.7 22.3 22.2 8.6 7.3 5.8 0.3 1.0 0.9 0.8 0.7 7.8 11.5 12.2 13.7
HDFC Bank BUY 9,366 1,675 1,840 9.9 66.7 79.1 76.8 95.4 9.8 21.2 21.8 17.6 1.8 3.9 3.3 2.8 2.5 16.7 17.0 15.8 14.9
IndusInd Bank BUY 1,079 1,390 1,375 -1.1 62.0 95.9 126.3 145.6 23.2 14.5 11.0 9.6 0.4 2.3 2.0 1.7 1.5 10.6 14.5 16.6 16.7
Kotak Mahindra Bank BUY 3,729 1,877 2,080 10.8 43.2 55.1 62.6 72.6 14.8 34.1 30.0 25.9 1.7 5.2 4.5 3.9 3.4 12.7 14.1 14.0 14.1
YES Bank HOLD 512 18 17 -4.5 0.4 0.2 0.7 1.0 95.7 71.3 26.6 18.6 0.2 1.3 1.3 1.2 1.2 3.2 2.0 4.9 6.3
SOE BANKS (Sameer Bhise, sameer.bhise@jmfl.com, +91 22 66303489)
Bank of Baroda BUY 1,062 205 235 14.4 14.0 27.3 31.7 35.6 14.3 7.5 6.5 5.8 0.4 1.3 1.1 1.0 0.9 9.7 16.5 16.6 16.2
Canara Bank BUY 591 326 371 13.9 38.8 58.5 69.6 83.6 19.6 5.6 4.7 3.9 0.2 1.0 0.9 0.8 0.7 13.0 17.1 17.7 18.5
Punjab National Bank HOLD 650 59 55 -6.8 3.1 3.4 6.4 9.2 64.9 17.4 9.3 6.4 0.1 0.7 0.7 0.7 0.6 4.0 4.2 7.4 10.1
State Bank of India BUY 5,288 593 700 18.1 35.5 56.3 62.6 71.5 12.7 10.5 9.5 8.3 0.6 2.1 1.8 1.5 1.3 13.0 18.1 17.3 17.3
Mkt Cap 12M (%) Embedded Value@ (INRbn) EV Gr (%) P/EV (x) PEG Embedded Value@ (INRbn) ROE$ (%)
Company Rating CMP (Rs)
(Rs bn) TP (Rs) upside 23-25
FY22A FY23A FY24E FY25E FY23A FY24E FY25E (x) FY22A FY23A FY24E FY25E FY22A FY23A FY24E FY25E
Insurance (Akshay Jain, akshay.jain@jmfl.com, +91-22-66303099)
HDFC Life Insurance BUY 1,421 661 725 9.7 300.5 395.3 468.4 555.9 18.6 3.6 3.0 2.6 NA 300.5 395.3 468.4 555.9 16.6 19.7 18.1 18.1
ICICI Prudential Life BUY 828 576 665 15.5 316.3 356.3 412.6 477.3 15.7 2.3 2.0 1.7 NA 316.3 356.3 412.6 477.3 11.0 17.4 16.8 16.5
Life Insurance Corporaion BUY 3,971 628 940 49.7 5,414.9 5,822.4 6,569.0 7,407.4 12.8 0.7 0.6 0.5 NA 5,414.9 5,822.4 6,569.0 7,407.4 11.9 10.9 11.1 11.1
SBI Life Insurance BUY 1,294 1,293 1,500 16.0 396.0 460.3 563.2 687.7 22.2 2.8 2.3 1.9 NA 396.0 460.3 563.2 687.7 16.4 22.9 21.8 21.5
ICICI Lombard General Insurance BUY 658 1,340 1,530 14.2 94.7 152.3 171.2 NA NA NA NA NA NA 94.7 152.3 171.2 NA 15.4 14.8 15.2 NA
Mkt Cap 12M (%) EPS P/E P/B PAT/ Avg AUM Price / AUM
Company Rating CMP (Rs)
(Rs bn) TP (Rs) upside FY22A FY23A FY24E FY25E FY23A FY24E FY25E FY22A FY23A FY24E FY25E FY23A FY24E FY25E FY23A FY24E FY25E
Asset Management (Akshay Jain, akshay.jain@jmfl.com, +91-22-66303099)
HDFC AMC BUY 482 2,260 2,200 (2.6) 65.3 66.7 73.9 86.3 34.6 33.9 30.6 8.7 7.9 7.3 6.8 0.35% 0.34% 0.33% 11.0% 9.5% 8.2%
Nippon Life India AMC# BUY 178 286 280 (2.2) 12.1 11.8 13.0 15.5 23.6 24.2 22.1 5.0 5.0 4.9 4.5 0.30% 0.26% 0.25% 6.2% 5.2% 4.4%
UTI AMC# BUY 103 811 830 2.4 42.1 34.6 45.6 57.1 19.3 23.4 17.8 2.8 2.7 2.5 2.4 0.27% 0.20% 0.23% 4.6% 3.8% 3.1%
*- Standalone Numbers, # - Consol Numbers, NP - Not Published, $ - Operating RoEV for Life Ins., @ - Book value for ICICI Lombard

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INDIA MORNING BRIEF 7 July 2023

APPENDIX I

JM Financial Institutional Securities Limited

Corporate Identity Number: U67100MH2017PLC296081
Member of BSE Ltd. and National Stock Exchange of India Ltd.
SEBI Registration Nos.: Stock Broker - INZ000163434, Research Analyst - INH000000610
Registered Office: 7th Floor, Cnergy, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400 025, India.
Board: +9122 6630 3030 | Fax: +91 22 6630 3488 | Email: jmfinancial.research@jmfl.com | www.jmfl.com
Compliance Officer: Mr Sahil Salastekar | Tel: +91 22 6224 1073 | Email: sahil.salastekar@jmfl.com
Grievance officer: Mr. Sahil Salastekar | Tel: +91 22 6224 1073 | Email: instcompliance@jmfl.com

Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Definition of ratings
Rating Meaning
Buy Total expected returns of more than 10% stocks with market capitalisation in excess of INR 200 billion and REITs* and more than 15%
for all other stocks, over the next twelve months. Total expected return includes dividend yields.
Hold Price expected to move in the range of 10% downside to 10% upside from the current market price for stocks with market
capitalisation in excess of INR 200 billion and REITs* and in the range of 10% downside to 15% upside from the current market price
for all other stocks, over the next twelve months.
Sell Price expected to move downwards by more than 10% from the current market price over the next twelve months.
* REIT refers to Real Estate Investment Trusts.
Research Analyst(s) Certification
The Research Analyst(s), with respect to each issuer and its securities covered by them in this research report, certify that:
All of the views expressed in this research report accurately reflect his or her or their personal views about all of the issuers and their securities; and
No part of his or her or their compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in this research report.
Important Disclosures
This research report has been prepared by JM Financial Institutional Securities Limited (JM Financial Institutional Securities) to provide information about the
company(ies) and sector(s), if any, covered in the report and may be distributed by it and/or its associates solely for the purpose of information of the select recipient
of this report. This report and/or any part thereof, may not be duplicated in any form and/or reproduced or redistributed without the prior written consent of JM
Financial Institutional Securities. This report has been prepared independent of the companies covered herein.
JM Financial Institutional Securities is registered with the Securities and Exchange Board of India (SEBI) as a Research Analyst and a Stock Broker having trading
memberships of the BSE Ltd. (BSE) and National Stock Exchange of India Ltd. (NSE). No material disciplinary action has been taken by SEBI against JM Financial
Institutional Securities in the past two financial years which may impact the investment decision making of the investor. Registration granted by SEBI and
certification from the National Institute of Securities Market (NISM) in no way guarantee performance of JM Financial Institutional Securities or provide any
assurance of returns to investors.
JM Financial Institutional Securities renders stock broking services primarily to institutional investors and provides the research services to its institutional
clients/investors. JM Financial Institutional Securities and its associates are part of a multi-service, integrated investment banking, investment management,
brokerage and financing group. JM Financial Institutional Securities and/or its associates might have provided or may provide services in respect of managing
offerings of securities, corporate finance, investment banking, mergers & acquisitions, broking, financing or any other advisory services to the company(ies) covered
herein. JM Financial Institutional Securities and/or its associates might have received during the past twelve months or may receive compensation from the
company(ies) mentioned in this report for rendering any of the above services.
JM Financial Institutional Securities and/or its associates, their directors and employees may; (a) from time to time, have a long or short position in, and buy or sell
the securities of the company(ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation
or act as a market maker in the financial instruments of the company(ies) covered under this report or (c) act as an advisor or lender/borrower to, or may have any
financial interest in, such company(ies) or (d) considering the nature of business/activities that JM Financial Institutional Securities is engaged in, it may have
potential conflict of interest at the time of publication of this report on the subject company(ies).
Neither JM Financial Institutional Securities nor its associates or the Research Analyst(s) named in this report or his/her relatives individually own one per cent or
more securities of the company(ies) covered under this report, at the relevant date as specified in the SEBI (Research Analysts) Regulations, 2014.
The Research Analyst(s) principally responsible for the preparation of this research report and members of their household are prohibited from buying or selling
debt or equity securities, including but not limited to any option, right, warrant, future, long or short position issued by company(ies) covered under this report. The
Research Analyst(s) principally responsible for the preparation of this research report or their relatives (as defined under SEBI (Research Analysts) Regulations, 2014);
(a) do not have any financial interest in the company(ies) covered under this report or (b) did not receive any compensation from the company(ies) covered under
this report, or from any third party, in connection with this report or (c) do not have any other material conflict of interest at the time of publication of this report.
Research Analyst(s) are not serving as an officer, director or employee of the company(ies) covered under this report.

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INDIA MORNING BRIEF 7 July 2023
While reasonable care has been taken in the preparation of this report, it does not purport to be a complete description of the securities, markets or developments
referred to herein, and JM Financial Institutional Securities does not warrant its accuracy or completeness. JM Financial Institutional Securities may not be in any
way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. This report is provided
for information only and is not an investment advice and must not alone be taken as the basis for an investment decision.

The investment discussed or views expressed or recommendations/opinions given herein may not be suitable for all investors. The user assumes the entire risk of
any use made of this information. The information contained herein may be changed without notice and JM Financial Institutional Securities reserves the right to
make modifications and alterations to this statement as they may deem fit from time to time.

This report is neither an offer nor solicitation of an offer to buy and/or sell any securities mentioned herein and/or not an official confirmation of any transaction.

This report is not directed or intended for distribution to, or use by any person or entity who is a citizen or resident of or located in any locality, state, country or
other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject JM Financial Institutional
Securities and/or its affiliated company(ies) to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be
eligible for sale in all jurisdictions or to a certain category of investors. Persons in whose possession this report may come, are required to inform themselves of and
to observe such restrictions.

Additional disclosure only for U.S. persons: JM Financial Institutional Securities has entered into an agreement with JM Financial Securities, Inc. ("JM Financial
Securities"), a U.S. registered broker-dealer and member of the Financial Industry Regulatory Authority ("FINRA") in order to conduct certain business in the United
States in reliance on the exemption from U.S. broker-dealer registration provided by Rule 15a-6, promulgated under the U.S. Securities Exchange Act of 1934 (the
"Exchange Act"), as amended, and as interpreted by the staff of the U.S. Securities and Exchange Commission ("SEC") (together "Rule 15a-6").

This research report is distributed in the United States by JM Financial Securities in compliance with Rule 15a-6, and as a "third party research report" for purposes
of FINRA Rule 2241. In compliance with Rule 15a-6(a)(3) this research report is distributed only to "major U.S. institutional investors" as defined in Rule 15a-6 and
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This research report is a product of JM Financial Institutional Securities, which is the employer of the research analyst(s) solely responsible for its content. The
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Any U.S. person who is recipient of this report that wishes further information regarding, or to effect any transaction in, any of the securities discussed in this
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No. 2558, Jersey City, NJ 07311. Telephone +1 (201) 633-3610 which is registered with the SEC and is a member of FINRA and SIPC.

Additional disclosure only for U.K. persons: Neither JM Financial Institutional Securities nor any of its affiliates is authorised in the United Kingdom (U.K.) by the
Financial Conduct Authority. As a result, this report is for distribution only to persons who (i) have professional experience in matters relating to investments falling
within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the "Financial Promotion Order"), (ii) are
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Additional disclosure only for Canadian persons: This report is not, and under no circumstances is to be construed as, an advertisement or a public offering of the
securities described herein in Canada or any province or territory thereof. Under no circumstances is this report to be construed as an offer to sell securities or as a
solicitation of an offer to buy securities in any jurisdiction of Canada. Any offer or sale of the securities described herein in Canada will be made only under an
exemption from the requirements to file a prospectus with the relevant Canadian securities regulators and only by a dealer properly registered under applicable
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responsible for, nor do they accept, any liability whatsoever for any direct or consequential loss arising from any use of this research report or the information
contained herein.

JM Financial Institutional Securities Limited Page 11