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24 July 2023
Motilal Oswal values your support in the

Asiamoney Brokers Poll 2023 for India Research, Today’s top research idea
Sales, Corporate Access and Trading team.
We request your ballot.
ICICI Bank: Another solid quarter; RoE sustains at ~19%
 ICICI Bank reported another strong quarter (RoA of 2.4%), led by robust loan
growth, stable asset quality and a slight decline in margins.
Market snapshot  Core PPoP grew 35% YoY, while NIMs moderated 12bp QoQ to 4.8%.
 Asset quality remained broadly stable with PCR at 83%.
Equities - India Close Chg .% CYTD.%
Sensex 66,684 -1.3 9.6  ICICIBC is well positioned to deliver steady earnings, supported by pristine
Nifty-50 19,745 -1.2 9.1 asset quality and strong momentum in business growth. We estimate
Nifty-M 100 36,800 -0.4 16.8 RoA/RoE of 2.2%/17.9% in FY25.
Equities-Global Close Chg .% CYTD.%
S&P 500 4,536 0.0 18.1
 After a strong outperformance backed by robust earnings growth (3yr CAGR
Nasdaq 14,033 -0.2 34.1 of ~60%), we estimate earnings growth to moderate to an 18% CAGR over
FTSE 100 7,664 0.2 2.8 FY23-25, affected largely by a decline in margins and limited levers available
DAX 16,177 -0.2 16.2
on the opex/credit cost front. We thus expect stock returns to be moderate
Hang Seng 6,415 0.8 -4.3
Nikkei 225 32,304 -0.6 23.8 for ICICIBC and many other large-cap banking stocks. Maintain BUY.
Commodities Close Chg .% CYTD.%
Brent (US$/Bbl) 81 1.6 -4.9
Gold ($/OZ) 1,962 -0.4 7.6
Cu (US$/MT) 8,423 -0.5 0.7 Research covered
Almn (US$/MT) 2,165 0.4 -7.9
Currency Close Chg .% CYTD.% Cos/Sector Key Highlights
USD/INR 82.0 0.0 -0.9
USD/EUR 1.1 -0.1 3.9 ICICI Bank Another solid quarter; RoE sustains at ~19%
USD/JPY 141.7 1.2 8.1
YIELD (%) Close 1MChg CYTD chg Reliance Industries Consumer business compensates for the weakness in O2C
10 Yrs G-Sec 7.1 0.00 -0.3 Kotak Mahindra Bank Strong performance led by robust other income
10 Yrs AAA Corp 7.6 0.01 -0.1
Flows (USD b) 21-Jul MTD CYTD UltraTech Cement | JSW Steel | HDFC Life Insurance | Hindustan
FIIs -0.2 3.65 15.1 Zinc | Vedanta | United Spirits | Union Bank (I) | One 97
DIIs 0.16 -1.11 9.3 Communications | AU Small Finance Bank | Mphasis | Persistent
Other updates
Volumes (INRb) 21-Jul MTD* YTD* Systems | Dalmia Bharat | CreditAccess Grameen | Atul |
Cash 882 770 597 360ONE WAM | Indiamart | RBL Bank | DLF | Ashok Leyland |
F&O 1,69,334 3,13,238 2,41,973 Indraprastha Gas | ICICI Securities | Monsoon update
Note: Flows, MTD includes provisional numbers.
*Average
Chart of the Day: ICICI Bank (Another solid quarter; RoE sustains at ~19%)
GNPA ratio declined 5bp QoQ to 2.76% while NNPA stood
Domestic NIM moderated 14bp QoQ to 4.9% stable at 0.48%, PCR stood stable at ~83%.
Source: MOFSL, Company Source: MOFSL, Company
Research Team (Gautam.Duggad@MotilalOswal.com)

Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
In the news today
Kindly click on textbox for the detailed news link
1 2
Bain Capital seals deal to Demand for bigger cars accelerates sales of wider tyres
acquire Adani Capital; Gaurav The demand for wider tires with larger diameters of 18-22 inches has
Gupta to stay on as MD increased since 2020 as the popularity of SUV and MPV vehicles in the
Adani Capital was founded in passenger vehicle market has risen. In contrast, tires with smaller
2017 to democratise access to diameters have experienced rapid decline. Despite the fact that wider
affordable, convenient lending tires negatively impact fuel efficiency, the buying criteria of
solutions and support the next consumers have changed, with greater emphasis on design,
generation of MSMEs and technology, and performance than fuel efficiency…
entrepreneurs in India…
3 4
Industrial warehousing lease
demand drops 12% in June Electronics exports grew 56%
quarter, NCR sees biggest in Q1, at 4th in pecking order
As per experts, at this rate,
drop
electronics is likely to emerge as
During the same period,
the third largest category of
Bengaluru, Pune and Mumbai saw
exports in the coming quarters
a greater demand for leasing
warehouses when compared to
as its gap with the current gems 5
and jewellery segment is
the year-ago quarter… Phenomenal interest in
narrowing fast. Electronics have
overtaken chemicals and drugs India’s semiconductor
and pharmaceuticals to jump industry, says Piyush Goyal
from sixth largest exports Companies such as Micron and
category to become… Foxconn are exploring various
levels of involvement in India's
semiconductor sector, according
6 7 to Commerce and Industry
Minister, Piyush Goyal. Vedanta
and Tata are also reported to be
Hindustan Zinc to have 30% Vodafone Idea fails to renew "getting active in that space".
value-added products in its bank guarantees amid financial Goyal stated that the interest in
portfolio by FY25-end, says constraints, seeks time India's semiconductor sector
CEO The telco said that it has been from the industry has been
"Last year we embarked on unable to renew additional BGs as "phenomenal". Goyal also
making zinc alloys because we this requires 100% cash margin to commented on the recent
believe (zinc) consumption will be provided to the banks. increase in tomato prices in parts
not only be for galvanizing, you According to a banker, the of the country, stating that this is
will also see consumption of decision to ask for a 100% cash due to the heavy rains and floods
alloys," Misra told ET in an margin reflects that banks are in hilly…
exclusive interaction… extremely averse to lending to Vi,
even if the BG sums are tiny…
24 July 2023 2
23 July 2023
1QFY24 Results Update | Sector: Financials
ICICI Bank
Estimate change CMP: INR997 TP: INR1,150 (+15%) Buy
TP change
Rating change Another solid quarter; RoE sustains at ~19%
Robust growth across segments
Motilal Oswal values your support in the  ICICI Bank (ICICIBC) reported another strong quarter (RoA of 2.4%), led
Asiamoney Brokers Poll 2023 for India
by robust loan growth, stable asset quality and a slight decline in
Research, Sales, Corporate Access and
Trading team. We request your ballot. margins.
 Core PPoP grew 35% YoY, while NIMs moderated 12bp QoQ to 4.8%.
Business growth was strong, with overall loans growing 18% YoY.
 Asset quality remained broadly stable with PCR at 83%. The bank
maintains a total contingency buffer of INR131b.
Bloomberg ICICIBC IN  ICICIBC is well positioned to deliver steady earnings, supported by
Equity Shares (m) 6984
pristine asset quality and strong momentum in business growth. We
M.Cap.(INRb)/(USDb) 6974.1 / 85.1
52-Week Range (INR) 1002 / 780 estimate RoA/RoE of 2.2%/17.9% in FY25.
1, 6, 12 Rel. Per (%) 3/5/8  After a strong outperformance backed by robust earnings growth (3yr
12M Avg Val (INR M) 13521 CAGR of ~60%), we estimate earnings growth to moderate to an 18%
CAGR over FY23-25, affected largely by a decline in margins and limited
Financials & Valuations (INR b) levers available on the opex/credit cost front. We thus expect stock
Y/E March FY23 FY24E FY25E
returns to be moderate for ICICIBC and many other large-cap banking
NII 621 738 852
OP 491 567 652 stocks. Maintain BUY.
NP 319 390 445
NIM (%) 4.6 4.7 4.6 In-line earnings; margin moderates 12bp QoQ
EPS (INR) 45.8 55.9 63.7  1QFY24 PAT grew 40% YoY to INR96.5b (in line), aided by healthy NII
EPS Gr (%) 36.0 22.0 13.9
ABV/Sh (INR) 268 315 369
growth and other income. The bank, thus, reported 1QFY24 annualized
Cons. BV/Sh (INR) 304 356 419 RoA and RoE of 2.4% and 18.9%, respectively.
Ratios  NII grew 38% YoY (in line), aided by healthy loan growth of 18% YoY.
RoE (%) 17.5 18.3 17.9 However, NIMs moderated 12bp QoQ to 4.78%. Other income grew 17%
RoA (%) 2.1 2.3 2.2
YoY to INR54.4b, aided by treasury gain of INR2.5b. Fee income grew
Valuations
P/BV (x) (Cons) 3.3 2.8 2.4 14% YoY.
P/ABV (x) 3.0 2.6 2.2  Opex rose 26% YoY, yet resulting in healthy 37% YoY growth in PPoP to
P/E (x) 17.8 14.6 12.8 INR141.4b (in line). Core PPOP grew 35% YoY.
*Adjusted for Investment in subsidiaries  On the business front, advances grew 18% YoY/4% QoQ, led by 19%/22%
YoY growth in Domestic/Retail loans. Growth was driven by vehicle
Shareholding pattern (%)
loans, credit cards and personal loans. The SME book grew 29% YoY,
As On Mar-23 Dec-22 Mar-22
Promoter
while the corporate book too reported a healthy pick-up (up 4% QoQ).
0.0 0.0 0.0
DII 36.9 36.3 36.3
 On the liability front, deposits grew 18% YoY (+5% QoQ), while CASA
FII 54.8 55.4 54.6 deposits saw 9% YoY growth (down 1% QoQ). The average CASA mix
Others 8.3 8.3 9.1 declined 100bp QoQ to 42.6% (period-end CASA ratio at 43.3%).
FII Includes depository receipts  Fresh slippages increased to INR53.2b (2.1% annualized). The GNPA ratio
declined 5bp QoQ to 2.76%, while NNPA was stable at 0.48%. PCR was
also stable at ~83%. The bank now maintains a total contingency buffer
of INR131b.
24 July 2023 3
Highlights from the management commentary
 The bank recorded a treasury gain of INR2.52b in 1QFY24 vs. gain of INR0.36b in
1QFY23.
 Dividend income from subsidiaries and associates was INR2.91b in 1QFY24 vs.
3.47b in 1QFY23.
 The maximum single borrower outstanding on an account rated BB & Below is
less than INR5b.
 NIM moderated to 4.78% from 4.9% in 4QFY23. The bank believes that NIM will
moderate in upcoming quarters as well.
Valuation and view

ICICIBC reported another steady quarter, driven by healthy NII/Core PPoP growth
and controlled provisions underpinned by stable asset quality. The stable mix of the
high-yielding portfolio (Retail/Business Banking) and a low-cost liability franchise
drove steady NII growth. The bank is seeing a strong recovery across segments,
while asset quality trends remain healthy with PCR at ~83%. The additional Covid-
related provision buffer (1.2% of loans) provides further comfort. We estimate
ICICBC to deliver RoA/RoE of 2.2%/17.9% in FY25. After a strong outperformance
backed by robust earnings growth (3yr CAGR of ~60%), we estimate earnings growth
to moderate to an 18% CAGR over FY23-25, affected largely by a decline in margins
and limited levers available on the opex/credit cost front. We expect stock returns
to be more moderate for ICICIBC and many other large-cap banking stocks. Retain
Buy with our unchanged SoTP-based TP of INR1,150 (2.6x FY’25E ABV).
Quarterly performance (INR b)
FY23 FY24E FY23 FY24E FY24 v/s
1Q 2Q 3Q 4Q 1Q 2QE 3QE 4QE 1QE Est
Net Interest Income 132.1 147.9 164.6 176.7 182.3 183.4 184.5 187.9 621.3 738.2 180.0 1%
% Change (YoY) 20.8 26.5 34.6 40.2 38.0 24.1 12.1 6.4 30.9 18.8 36.3
Other Income 46.7 50.5 50.2 50.9 54.4 55.8 58.1 58.6 198.3 226.9 52.2 4%
Total Income 178.8 198.4 214.9 227.5 236.6 239.2 242.6 246.6 819.6 965.1 232.3 2%
Operating Expenses 75.7 81.6 82.2 89.3 95.2 98.0 100.4 104.7 328.7 398.4 93.6 2%
Operating Profit 103.1 116.8 132.7 138.3 141.4 141.3 142.2 141.8 490.9 566.7 138.6 2%
% Change (YoY) 15.9 17.8 30.8 34.3 37.2 20.9 7.2 2.6 25.1 15.4 34.5
Provisions 11.4 16.4 22.6 16.2 12.9 12.6 13.2 9.8 66.7 48.5 12.4 4%
Profit before Tax 91.7 100.4 110.1 122.1 128.5 128.7 129.1 132.1 424.2 518.2 126.2 2%
Tax 22.6 24.8 27.0 30.8 32.0 31.8 31.9 32.4 105.2 128.0 31.2 3%
Net Profit 69.0 75.6 83.1 91.2 96.5 96.9 97.2 99.7 319.0 390.2 95.0 2%
% Change (YoY) 49.6 37.1 34.2 30.0 39.7 28.2 16.9 9.3 36.7 22.3 37.6
Operating Parameters
Deposit 10,503 10,900 11,220 11,808 12,387 12,470 13,036 13,698 11,808 13,698 12,186 2%
Loan 8,956 9,386 9,740 10,196 10,576 10,839 11,371 12,032 10,196 12,032 10,582 0%
Deposit Growth (%) 13.4 11.5 10.3 10.9 17.9 14.4 16.2 16.0 10.9 16.0 16.0
Loan Growth (%) 21.3 22.7 19.7 18.7 18.1 15.5 16.7 18.0 18.7 18.0 18.1
Asset Quality
Gross NPA (%) 3.4 3.2 3.1 2.8 2.8 2.8 2.6 2.5 3.0 2.5 2.9 (12)
Net NPA (%) 0.7 0.6 0.6 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 (1)
PCR (%) 79.9 81.3 82.6 83.5 83.1 83.2 83.1 82.4 83.5 82.4 83.3 (21)
RoA (%) 2.0 2.1 2.2 2.4 2.1 2.3
RoE (%) 15.9 16.6 17.6 18.9 17.5 18.3
CASA (%) 46.9 46.6 45.3 45.8 44.4 43.1
Margins (%) 4.0 4.3 4.7 4.9 4.6 4.7
Source: MOFSL, Company
24 July 2023 4
23 July 2023
1QFY24 Results Update | Sector: Oil & Gas
Reliance Industries
Estimate change CMP: INR2,536 TP: INR2,935 (+16%) Buy
TP change
Rating change Consumer business compensates for the weakness in O2C
 Reliance Industries (RIL)’s consolidated revenue declined 5% YoY/3% QoQ to
Motilal Oswal values your support in
the Asiamoney Brokers Poll 2023 for
INR2,075.6b (in line). The sharp decline in O2C segment (with 31% drop in
India Research, Sales, Corporate crude oil prices) was offset by continued growth in consumer business and
Access and Trading team.
increase in volumes from O2C and Oil & Gas businesses.
 RJio’s revenue/EBITDA grew 3% QoQ each (in line), led by 2% subscriber
additions and marginal increase in ARPU. Despite the aggressive 5G-led
capex, network opex has remained under control during the quarter.
 Reliance Retail posted healthy revenue/EBITDA growth of 21%/34% YoY (in
Bloomberg RELIANCE IN line) led by all-round improvement, rising footfalls and growing digital business.
Equity Shares (m) 6339  O2C’s EBITDA came in 11% below our estimate at INR164b (-22% YoY) in
M.Cap.(INRb)/(USDb) 17177.1 / 209.6 1QFY24. EBITDA/mt stood at ~USD87.1 (-38% YoY, -14% QoQ). The outlook
52-Week Range (INR) 2632 / 1986 continues to remain murky as capacity additions from China are likely to
1, 6, 12 Rel. Per (%) 4/4/-7 keep product spreads under pressure.
12M Avg Val (INR M) 15149  Net debt remained flattish sequentially at INR1,266.2b (vs. INR1,257b as of
Mar’23). This has been restated for the transfer of cash and liquid
Financials & Valuations (INR b) investments to Jio Financial Services Ltd. Capex moderated a bit sequentially
Y/E Mar FY23 FY24E FY25E
to INR396.5b (vs. INR444.1b in 4QFY23), which was largely funded internally.
Sales 8,795 9,592 10,944
 Using SOTP, we value the Refining and Petrochemical segments at 7.5x
EBITDA 1,429 1,592 1,791
Adj PAT 667 718 825
EV/EBITDA, arriving at a valuation of INR904/share for Standalone business.
EBITDA (%) 16% 17% 16% We ascribe an equity valuation of INR750/share to RJio and INR1,500/share
EPS (INR) 98.6 106.2 121.9 to Reliance Retail, factoring in the recent stake sale. We have further
EPS Gr. (%) 14% 8% 15% included an equity valuation of INR16/share pertaining to New energy on
BV/Sh. (INR) 1,274 1,378 1,498 book value. Our TP is adjusted for Jio Financial Services (JFS) valuation. We
Ratios reiterate our BUY rating with a TP of INR2,935.
Net D/E 0.3 0.4 0.3
RoE (%) 8.3 8.4 8.9
RoCE (%) 8.1 8.0 8.5
RJio – growth softens in line with expectation
Valuations  RJio’s revenue/EBITDA grew 3% QoQ each (in line) in 1QFY24, led by 2%
P/E (x) 25.9 24.1 21.0 subscriber additions and 1% increase in ARPU.
P/BV (x) 2.0 1.9 1.7  The company is aggressively rolling out 5G, it has deployed over 150k sites
EV/EBITDA (x) 13.9 12.9 11.2 with ~690k 5G cells covering more than 90% census towns. RIL is on track to
Div Yield (%) 0.3 0.3 0.3 complete pan-India rollout before Dec’23. We have kept our FY24E/25E
FCF Yield (%) 0.9 0.0 0.0
capex intact at INR380b/INR310b.
 We expect a revenue/EBITDA CAGR of 11%/14% over FY23-25 factoring in
8%/3% CAGR for subs/ARPU over the same period. Long-term outlook
Promoter 49.1 49.1 49.1 remains intact with market share gains from VIL, tariff hikes and new growth
DII 15.8 15.0 14.0 opportunities such as Jiofibre, Airfibre, and JioBharat as well as other digital
FII 24.5 25.6 26.6 avenues triggered by the 5G rollout.
Others 10.6 10.3 10.4
FII Includes depository receipts
24 July 2023 5
Reliance Retail – Steady growth as expected
 Reliance Retail’s revenue/EBITDA jumped 21%/34% YoY to INR622b/INR51b (in
line) with 90bp YoY margin improvement. Core revenue/EBITDA (excluding
Connectivity) grew 25%/28% YoY as per our working.
 However, overall growth lagged the strong footprint additions of 55.2% YoY to
70.6m sq. ft. It added 555 gross stores in 1QFY24 reaching 18,446 stores, at
+2.3% QoQ.
 Grocery business clocked a strong 59% YoY growth, while Consumer Electronics
(excl. devices)/Fashion & Lifestyle grew at 19%/15% YoY. Digital & New
Commerce posted a strong growth YoY, raising its contribution to 18% from 17%.
 Reliance Retail’s revenue and EBITDA are likely to report 25% and 34% CAGR,
respectively, over FY23-25 (estimates retained), fueled by accelerated store
additions across segments, recovery in store productivity and aggressive foray
into digital & new commerce.
O2C – Subdued performance due to weak transportation fuel cracks

 O2C’s revenue stood in line at INR1,171b (-20% YoY, -1% QoQ) in 1QFY24.
 Revenue declined YoY due to a sharp reduction in crude oil prices and lower
price realizations of downstream products.
 EBITDA was at INR164b (est. of INR184b; -22% YoY, -9% QoQ).
 EBITDA/mt stood at USD87.1 (-38% YoY, -14% QoQ), with production meant for
sale at 17.2mmt (+2% YoY, +1% QoQ) during the quarter.
 Reported PAT was at INR97b (est. of INR110b, -36% YoY, -30% QoQ).
 Gas price realization for KG-D6 improved to USD10.8/mmBtu in 1QFY24 from

USD9.7/mmBtu in 1QFY23.
 Oil & Gas exploration EBITDA jumped 46.7% YoY to INR40b in 1QFY24.
 Key macro performance highlights:
 Global refinery throughput was higher by 1.9mb/d YoY to 81.8mb/d in 1QFY24.
 Crude oil benchmarks declined YoY due to macroeconomic headwinds led by
high interest rates and lower industrial activities in the US and EU.
Valuation and view: Reiterate BUY with a TP of INR2,935

 Consolidated gross debt increased to INR3,187b at end-1QFY24 (from INR3,140b
at end-4QFY23) with cash & cash equivalents at INR1,921b. Net debt remained
flattish sequentially at INR1,266b (according to the company).
 Segment wise, the consumer business has been a mixed bag with retail seeing
moderate growth but likely to witness gains from the Future group footprint.
Growth in telecom will continue to soften with higher base and lower probability of
tariff hikes in the near term as well as intensifying 5G spends. While upstream
production is projected to increase to 30mmscmd in the coming months from
20.9mmscmd in 1QFY24, concerns remain on refining and petrochem margins
going forward.
 We value Reliance Retail’s core business at 40x EV/EBITDA on FY25E and
Connectivity at 5x to arrive at a valuation of INR1,668. Reliance Retail’s value in
RIL share comes to INR1,500 (for its 89% stake). Our premium valuation
multiples capture the opportunity for rapid expansion in its retail business and
the aggressive rollout of the digital platforms.
24 July 2023 6
 For RJio, we have broadly maintained our FY24/FY25 estimates factoring in 11%/
14% revenue/EBITDA CAGR over FY23-25. RJio is valued at an EV/EBITDA
multiple of 12x on FY25E EBITDA. The potential tariff hikes, market share gains
from VIL and opportunity in Digital offer an option value of INR150 (Exhibit 14),
thus arriving at a valuation of INR750/share (adjusted for its 66% stake).
 As per IEA estimates, global oil demand is estimated to grow 2.2mb/d in CY23 to
102.1mb/d despite the macro headwinds, with China accounting for 70% of
total demand growth. Increased tourism and improved seasonal demand due to
summer in major markets could also propel demand in CY23. Management,
however, believes that voluntary production cuts by OPEC+ countries may keep
crude prices elevated thereby impacting demand adversely. Indian downstream
exports may also get hit by high inflation, subdued global demand and increased
supply from China.
 There is, however, a positive momentum in domestic demand for both polymers
and polyesters and they are likely to track economic growth. Margins, however,
are anticipated to be largely constrained by the increased supply from China.
 Gas prices are expected to remain volatile in CY23 due to demand uncertainties in
Europe and Asia. Higher EU storage levels coupled with high nuclear outputs from
Japan and France may dampen demand. Conversely, weather-related variations
and high probability of El Nino may create winter demand in Northern Europe.
Demand recovery is also likely in China in 2HCY23 aided by the new policy.
 Factoring in the aforementioned, we estimate an EBITDA of USD94.5/mt for
FY24 (vis-à-vis USD98.3/mt in FY23). We model a capex of INR350b per year in
the Standalone business, considering RIL’s investments in new-age greener
businesses (such as solar energy and a hydrogen ecosystem in India).
 We revise our FY24E capex to INR1,200b, modeling INR380b in telecom,
INR350b in the Standalone business and rest in others – considering RIL’s
investments in new-age greener businesses.
 Using SOTP, we value the Refining and Petrochemical segment at 7.5x FY25E
EV/EBITDA to arrive at a valuation of INR904/share for Standalone business. We
ascribe an equity valuation of INR750/share to RJio and INR1,500/share to
Reliance Retail. Similarly, valuation of the New energy has been arrived at its BV
implying a price of INR16/share. Our TP is adjusted for JFS valuation. We
reiterate our BUY rating with a TP of INR2,935.
Exhibit 1: RIL – SoTP valuation (INR/share)

7.5x FY25 EBITDA Equity value Standalone debt
235
750
1,500
2,935
16
904
Standalone New Energy Reliance Retail RJio Net debt / Target price
(cash)
24 July 2023 7
23 July 2023
Kotak Mahindra Bank

Estimate change CMP: INR1,971 TP: INR2,170 (+10%) Neutral
TP change
Rating change
Strong performance led by robust other income
Margin contracts 18bp QoQ; Asset quality steady
Motilal Oswal values your support in  KMB reported a robust quarter, with standalone PAT increasing 67% YoY to
India Research, Sales, Corporate INR35b (14% beat), driven by higher treasury gains and dividend income of
Access and Trading team. INR3b from subs. Consolidated PAT grew 51% YoY to INR41.5b.
 Advances grew 17% YoY (3% QoQ) to INR329b, while margin contracted by
18bp QoQ to 5.6%. Deposit growth was steady, though the CASA mix
moderated 380bp QoQ due to a shift in SA deposits toward high-yielding
ActivMoney product launched by the bank.
Bloomberg KMB IN  Gross slippages increased 46% QoQ to INR12b, of which INR2.9b were
Equity Shares (m) 1980 upgraded in 1QFY24. Higher slippages and healthy recoveries held
M.Cap.(INRb)/(USDb) 3917 / 47.8
GNPA/NNPA ratios stable at 1.77%/0.4%.
52-Week Range (INR) 2063 / 1644
1, 6, 12 Rel. Per (%) 2/2/-9  We increase our FY24/FY25 PAT estimates by 7%/5% and revise our TP to
12M Avg Val (INR M) 7314 INR2,170 (3.0x FY25E BV and INR560 for subs). Maintain Neutral.
Free float (%) 74.1
Revenue growth steady; Unsecured loan mix rises to 11%
Financials & Valuations (INR b)  KMB reported a standalone PAT of INR35b (+67% YoY; 14% beat), driven by
Y/E MARCH FY23 FY24E FY25E
NII 215.5 256.2 290.6
higher treasury gains and dividend income of INR3b from subs. Consol PAT
OP 148.5 187.9 211.6 grew 51% YoY to INR41.5b.
NP 109.4 132.8 147.4  NII grew 33% YoY (in line), while margins contracted 18bp QoQ to 5.6%.
Cons. NP 150.9 180.2 205.0
NIM (%) 5.1 5.2 5.0
Other income increased by 116% YoY, aided by higher treasury gains due to
EPS (INR) 55.1 66.9 74.2 reversal of MTM loss of INR2.4b in 1QFY24.
EPS Gr. (%) 27.5 21.4 11.0  Opex rose 26% YoY due to an increase in technological and marketing
ABV. (INR) 398 460 529
Cons. BV. (INR) 563 652 754
expenses. PPoP grew 78% YoY, while core PPoP was up 28% YoY.
Ratios  Loan book grew 2.7% QoQ (+17% YoY), led by healthy traction across
Cons. RoE (%) 13.5 13.9 13.7 segments, barring Agri book. KMB reported healthy sequential trends in
RoE (%) 14.1 14.8 14.3
RoA (%) 2.4 2.5 2.4
Home loans, Personal loans, Business loans, Consumer Durable loans, Credit
Valuations Cards and MFI. Deposits jumped 22% YoY (+6% QoQ), while the CASA mix
P/BV (X) (Cons.) 3.5 3.0 2.6 moderated 380bp QoQ to 49%. The mix of unsecured loans increased to
P/ABV (X) (Adj.) 3.5 3.1 2.7
P/E(X) (Adj.) 25.6 21.1 19.0
11% and the management expects it to rise to mid-teens by FY24-end.
*Adjusted for Investment subs  Gross slippages increased 46% QoQ to INR12b; however, healthy recoveries
helped GNPA/NNPA ratios remain stable at 1.77%/0.4%. KMB utilized
Shareholding pattern (%) INR500m of Covid provisions and now has o/s provisions of INR3.37b.
As On Jun-23 Mar-23 Jun-22  SMA-2 advances stood at INR2.03b (10bp of advances), while the
Promoter 25.9 26.0 26.0 outstanding restructured portfolio stood at INR6.2b (20bp of advances).
DII 19.6 23.0 17.3  Subs performance: Kotak Prime reported net earnings growth of 39% YoY.
FII 41.5 37.8 40.6
Kotak International Subs posted earnings growth of 129%, while Kotak AMC
Others 12.9 13.3 16.2
FII Includes depository receipts and Kotak Securities recorded flat trends.
24 July 2023 8
 KMB reported higher ROA of 2.8% in 1QFY24 due to one-time non-interest
income, which is expected to moderate in 2QFY24.
 Deposits have picked up driven by ActivMoney product launched by KMB which
has grown 24% QoQ.
 NIM declined 18bp QoQ to 5.6% in 1QFY24 from the peak of 5.8% in 4QFY23.
The bank expects NIM to moderate further going forward.
 Kotak Funds launched an Activ Indian Midcap fund overseas, especially
targeting the Japanese market. The fund’s AUM has crossed USD2.5b as of
1QFY24.
Valuation and view

KMB delivered a healthy quarter with steady revenue growth and stable asset
quality. NIM contracted due to the rising cost of deposits but was on expected lines.
Asset quality remained steady, aided by healthy recoveries, while the restructured
book moderated to 20bp of loans. KMB carries additional Covid-related provisions of
~INR3.4b (10bp of loans). We raise our earnings estimates by 7%/5% for FY24/25
and expect KMB to deliver RoA/RoE of 2.4%/14.3% in FY25. Reiterate Neutral with a
TP of INR2,170 (3.0x FY’25E BV and INR560 for subs).

Y/E March FY23 FY24E FY23 FY24E FY24E V/s
1Q 2Q 3Q 4Q 1Q 2QE 3QE 4QE 1QE Our Est
% Change (Y-o-Y) 19.2 26.8 30.4 35.0 32.7 23.6 14.2 8.6 28.1 18.9 31.8
Other Income 12.4 19.5 19.5 21.9 26.8 22.0 22.3 24.5 70.8 95.6 18.9 42%
Total Income 59.4 70.5 76.0 82.9 89.2 85.0 86.8 90.8 286.3 351.8 80.8 10%
Operating Expenses 31.6 34.9 37.5 36.4 39.7 40.7 42.0 41.7 137.9 164.0 38.6 3%
% Change (Y-o-Y) -3.7 14.3 42.5 39.1 77.8 24.3 16.6 5.7 23.2 26.5 51.6
Provisions 0.2 1.4 1.5 1.5 3.6 2.9 2.9 2.3 4.6 11.7 2.2 67%
Tax 6.9 8.5 9.1 10.0 11.3 10.2 10.3 11.5 34.5 43.3 9.8 15%
Net Profit 20.7 25.8 27.9 35.0 34.5 31.3 31.7 35.4 109.4 132.8 30.2 14%
% Change (Y-o-Y) 26.1 27.0 31.0 26.3 66.7 21.2 13.4 1.2 27.6 21.4 45.7
Deposits (INR b) 3,165 3,252 3,447 3,631 3,863 3,839 4,018 4,226 3,631 4,226 3,756 0
Loans (INR b) 2,802 2,940 3,107 3,199 3,286 3,395 3,562 3,758 3,199 3,758 3,311 (0)
Deposit growth (%) 10.4 11.5 12.9 16.5 22.0 18.1 16.6 16.4 16.5 16.4 18.7 337
Loan growth (%) 28.8 25.1 22.9 17.9 17.3 15.5 14.6 17.5 17.9 17.5 18.2 -88
Asset Quality
Gross NPA (%) 2.2 2.1 1.9 1.8 1.8 1.7 1.6 1.5 1.8 1.5 1.7 5
Net NPA (%) 0.6 0.6 0.4 0.4 0.4 0.3 0.3 0.3 0.4 0.3 0.4 5
PCR (%) 72.6 73.7 77.6 79.3 78.0 80.3 80.7 80.5 79.3 80.5 79.8 -183
E: MOFSL estimates
24 July 2023 9
22 July 2023
1QFY24 Results Update | Sector: Cement
UltraTech Cement
TP change
Rating change Higher opex hurts 1Q; 2H to benefit from lower fuel cost
Motilal Oswal values your support in FY24 industry volumes to grow in double-digits; mixed trend in prices
the Asiamoney Brokers Poll 2023 for  UTCEM’s operating performance was below our estimates due to higher-
India Research, Sales, Corporate
Access and Trading team. than-estimated opex (freight and other expenses). EBITDA stood at INR30.5b
We request your ballot. (est. INR33b) and EBITDA/t came in at INR1,018 (est. INR1,101). Profit was at
INR17b (in line), led by lower tax rates.
 Cement demand remains strong and industry volume growth should be in
double digits in FY24. There have been some disruptions due to erratic
monsoons recently. There was a marginal price increase in North and West
Bloomberg UTCEM IN markets in Jul’23, while prices in the South and East markets remained
Equity Shares (m) 288 stable. Spot prices of pet coke will be reflected only after six months and a
M.Cap.(INRb)/(USDb) 2346 / 28.6
reduction in fuel prices should also benefit the industry going forward.
52-Week Range (INR) 8501 / 6005
1, 6, 12 Rel. Per (%) -6/4/14  We cut EPS estimates by 3% for FY24/FY25 (each) due to a miss in 1Q. We
12M Avg Val (INR M) 2710 maintain our BUY rating on the stock, given its: a) leadership position in the
industry, b) robust expansion plans without leveraging the balance sheet, and
Financial Snapshot (INR b) c) structural cost improvement measures. We value UTCEM at 16x FY25E
Y/E MARCH FY23 FY24E FY25E
Sales 632 701 742
EV/EBITDA to arrive at our revised TP of INR9,085.
EBITDA 106 137 157 Grey cement realization declined 3% YoY; EBITDA/t stood at INR1,018
Adj. PAT 51 70 83  Consolidated revenue/EBITDA/PAT stood at INR177b/INR30.5b/INR17b (up
EBITDA Margin (%) 17 20 21 17%/down 1%/ up 6% YoY and up 1%/down 8%/in line vs. estimates).
Adj. EPS (INR) 175 244 286
Consolidated sales volume grew 20% YoY to 30mt. RMC/white cement
EPS Gr. (%) (11) 39 17
BV/Sh. (INR) 1,882 2,086 2,330
revenue grew 37%/18% YoY during the quarter.
Ratios  Grey cement realization was down 3% YoY. Blended realization was down
Net D:E 0.0 (0.0) (0.1) 2% YoY (+1% vs. estimates). Opex/t was up 2% YoY (+3% from estimates)
RoE (%) 9.7 12.3 13.0 due to a 4% increase in variable/freight costs (each). Other expenses and
RoCE (%) 9.0 11.4 12.2
employee cost/t declined 7% YoY (each), led by higher volumes. EBITDA/t
Payout (%) 21.7 16.4 14.7
Valuations declined 18% YoY and OPM contracted 3.2pp YoY to 17% in 1QFY24.
P/E (x) 46.3 33.3 28.4  Consolidated net debt stood at INR25b vs. INR27b in Mar’23. Capex stood at
P/BV (x) 4.3 3.9 3.5 INR18b and is estimated to be at INR60-70b in FY24.
EV/EBITDA(x) 22.2 16.9 14.4
EV/ton (USD) 228 216 180
Div. Yield (%) 0.5 0.5 0.5  Fuel consumption cost was USD178/t vs. USD194 in 4Q and spot price was
FCF Yield (%) 1.3 2.4 2.9 USD115/t. Average fuel cost was INR2.34/kcal vs. INR2.5 in 4Q. Fuel costs
would fall 25-30% YoY in FY24 if pet coke prices sustain at current levels.
Shareholding pattern (%)  The clinker-to-cement conversion (C:C) ratio improved 3% YoY and UTCEM
As On Jun-23 Mar-23 Jun-22 achieved the highest-ever C:C ratio of 1.44x. An improvement in clinker
Promoter 60.0 60.0 60.0 factor by 0.04x will generate additional volume of 3mtpa per annum.
DII 16.1 17.1 18.2
 Lead distance (including inter-clinker transportation) stood at 410km. Lead
FII 16.5 15.4 13.2
distance for outward dispatches is only 270km vs. 281km in 4Q.
Others 7.5 7.5 8.6
Valuation and view
 We estimate a 10% CAGR in UTCEM’s consolidated volume over FY23-25 and
EBITDA/t at INR1,148/INR1,217 in FY24/25 (vs. INR1,005 in FY23).
 The stock trades at 17x/14.4x FY24E/FY25E EV/EBITDA (vs. its 10-year one-
year average EV/EBITDA of 15.7x). We value UTCEM at 16x FY25E EV/EBITDA
to arrive at a revised TP of INR9,085. Retain BUY rating on the stock.
24 July 2023 10
Consolidated quarterly performance (INR b)
FY23 FY24 FY23 FY24E FY24 Var.
1Q 2Q 3Q 4Q 1Q 2QE 3QE 4QE 1QE (%)
Net sales 151.6 138.9 155.2 186.6 177.4 154.8 167.3 201.2 632.4 700.7 175.2 1
YoY change (%) 28.2 15.6 19.5 18.4 17.0 11.5 7.8 7.8 20.2 10.8 15.5
Total expenditure 120.7 120.3 131.9 153.4 146.9 129.0 134.4 153.4 526.2 563.6 142.2 3
EBITDA 30.9 18.7 23.4 33.2 30.5 25.9 32.9 47.8 106.2 137.1 33.0 (8)
Margin (%) 20.4 13.4 15.0 17.8 17.2 16.7 19.7 23.8 16.8 19.6 18.8
Depreciation 7.0 7.1 7.2 7.6 7.5 7.6 7.9 9.5 28.9 32.5 7.7 (3)
Interest 2.2 2.0 2.2 1.9 2.1 1.9 2.1 1.2 8.2 7.3 1.8 16
Other income 1.1 1.5 1.3 1.2 1.7 1.3 1.4 0.9 5.0 5.4 1.3 39
PBT before EO expense 22.9 11.0 15.2 24.9 22.6 17.6 24.4 38.1 74.1 102.7 24.7 (8)
'Extra-Ord expense - - - - - - - - - - -
PBT after EO Expense 22.9 11.0 15.2 24.9 22.6 17.6 24.4 38.1 74.1 102.7 24.7 (8)
Tax 7.1 3.4 4.6 8.2 5.8 4.5 6.2 15.7 23.4 32.2 7.8 (26)
Prior period tax adjustment 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Rate (%) 31.0 31.2 30.5 33.0 25.5 25.5 25.5 41.3 31.6 31.3 31.4
Reported PAT 15.8 7.6 10.6 16.7 16.9 13.1 18.1 22.4 50.7 70.5 17.0 (1)
Minority interest -0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0
Adj. PAT 15.9 7.6 10.6 16.7 16.9 13.1 18.1 22.3 50.7 70.5 16.9 (0)
YoY change (%) -6.7 -42.5 -9.7 12.7 6.3 73.6 71.3 34.0 -10.6 39.0 6.6
Key operating parameters

FY24 Var.
Income Statement (INR/t) 1Q 2Q 3Q 4Q 1Q 2QE 3QE 4QE FY23 FY24E
1QE (%)
Volume (mt) 25.0 23.1 25.9 31.7 30.0 26.8 28.1 35.2 106.2 120.1 30.0 0
Change (YoY %) 16.3 6.7 11.8 14.4 19.6 16.0 8.8 11.1 12.9 13.1 19.6
Realization (including RMC) 6,056 6,014 6,002 5,893 5,920 5,778 5,948 5,717 5,957 5,835 5,847 1
Change (YoY %) 10.2 8.3 6.9 3.5 -2.2 -3.9 -0.9 -3.0 6.5 -2.0 -3.4
RM cost 912 873 868 1,001 983 1,035 1,050 909 919 994 1,050 (6)
Power and fuel 1,603 1,861 1,884 1,676 1,629 1,393 1,334 1,269 1,742 1,402 1,504 8
Staff cost 254 299 268 226 236 272 265 212 258 244 232 2
Freight and forwarding 1,314 1,318 1,345 1,325 1,369 1,330 1,367 1,290 1,320 1,337 1,325 3
Other expenditure 737 855 733 615 686 783 763 678 722 723 634 8
Total expenditure 4,820 5,206 5,099 4,844 4,903 4,812 4,779 4,358 4,961 4,699 4,746 3
EBITDA 1,236 808 903 1,049 1,018 965 1,170 1,358 996 1,136 1,101 (8)
YoY change (%) (19.5) (35.6) (13.6) (5.5) (17.7) 19.5 29.5 29.5 (18.6) 14.0 (10.9)
Sources: Company reports, MOFSL estimates
24 July 2023 11
22 July 2023
1QFY24 Results Update | Sector: Metals
JSW Steel
Estimate change CMP: INR786 TP: INR730 (-7%) Neutral
TP change
Rating change
EBITDA beats estimates; capacity expansion on track
Consolidated performance
the Asiamoney Brokers Poll 2023 for  JSTL posted revenue of INR422b in 1QFY24 (up 11% YoY), 6% above our
India Research, Sales, Corporate estimate of INR397b. ASP stood at INR73,928/t (higher than our estimate
We request your ballot. of INR71,327/t).
 EBITDA stood at INR70b (up 64% YoY), 43% above our estimate of INR49b.
EBITDA was supported by better performance of its Ohio and European
subsidiaries, better realizations in export markets, and lower input costs.
EBITDA/t stood at INR12,340/t vs. our estimate of INR8,715/t.
Bloomberg JSTL IN  APAT jumped 179% YoY to INR23b, aided by better operating performance
Equity Shares (m) 2417 and lower depreciation, offset by higher-than-expected tax outgo.
M.Cap.(INRb)/(USDb) 1900.1 / 23.2  Combined crude steel production (incl. JISPL) stood at 6.4mt (+12% YoY/-
52-Week Range (INR) 823 / 573
1, 6, 12 Rel. Per (%) -1/-3/15
2% QoQ). Sales volumes came in at 5.7mt (+27% YoY/-13% QoQ). Due to
12M Avg Val (INR M) 1763 some scheduled shutdowns at Indian operations during the quarter, the
average capacity utilization was 92% (96% in 4Q FY23).
Financials & Valuations (INR b)  Steel sales were affected by channel destocking. Exports were hit by
Y/E MARCH 2023 2024E 2025E delayed loading due to a cyclone on the western coast of India at 1Q end.
Sales 1,660 1,791 2,025
 Net debt stood at INR672b, with a net debt-to-EBITDA ratio of 3.14x (down
EBITDA 185 303 398
Adj. PAT 36 114 176 from 3.2x in 4QFY23).
EBITDA Margin (%) 11 17 20 Standalone performance
Cons. Adj. EPS (INR) 15 47 73
 Revenue grew 5% YoY INR328b, in line with our estimate of INR319b.
EPS Gr. (%) -83 219 55
BV/Sh. (INR) 272 309 368 EBITDA grew 45% YoY to INR49b and APAT stood at INR17b (up 78% YoY).
Ratios  Crude steel production grew 9% YoY to 5.4mt and sales volumes rose 22%
Net D:E 0.9 0.8 0.7 YoY to 4.9mt.
RoE (%) 5.3 16.2 21.5
RoCE (%) 5.3 9.9 12.4 Highlights from management commentary
Payout (%) 23.1 20.0 20.0  In 1QFY24, the coking coal cost was up by USD11/t at USD285/t; however,
Valuations JSTL was able to mitigate the cost increase to some extent by utilizing a
P/E (x) 53.5 16.7 10.8
P/BV (x) 2.9 2.5 2.1
better coal blend.
EV/EBITDA(x) 13.4 8.3 6.3  The coking coal cost is expected to be down by USD45-50/t in 2QFY24.
Div. Yield (%) 0.4 1.2 1.9  JSTL in 1QFY24 spent INR41b as capex and has earmarked INR188b for
FCF Yield (%) 4.6 3.8 5.9
FY24 and INR185b for FY25.
 Due to channel destocking and climate disruption in 1QFY24, JSTL had
inventory built up of 338kt, which is expected to be sold in 2QFY24.
As On Jun-23 Mar-23 Jun-22
Promoter 45.4 45.4 45.0
 The company plans capex across its facilities to enhance VAP volume.
DII 25.1 25.0 9.6  The management has retained its FY4E guidance at 25mt sales.
FII 11.5 11.5 11.3 JSTL on track to enhance its domestic capacity
Others 18.0 18.1 34.1  JSTL has undertaken a multi-phase expansion, which will enhance the
domestic capacity to 31mt by FY25 and to 50mt by FY31.
 The near-term capacity expansion will be driven by brownfield expansion
at Vijayanagar, BPSL and JISPL.
 It is also undertaking a greenfield EAF capex at Kadapa (Andhra Pradesh)
and is in an advanced stage to finalize a 13mt greenfield expansion in
Odisha, which will be over and above the ongoing capex.
24 July 2023 12
Valuation and view
 Volumes are expected to be aided by a pickup in domestic demand and a higher
share of VAP. The coking coal cost has moderated and its benefits are expected
to accrue in 2QFY24.
 We expect incremental volume to flow in when the Vijayanagar and BPSL
facilities come on stream by the end of FY24.
 The merger of National Steel and Agro, Vallabh Tinplate and Vardhaman
Industries has further enhanced the company’s VAP portfolio.
 Considering a pickup in demand, an increasing share of VAP and cost reductions
expected in 2QFY24, we raise our FY24 revenue/EBITDA/APAT estimates by
7%/14%/34%. We largely retain our estimates for FY25.
 We believe the current valuations at 6.3x FY25E EV/EBITDA and 2.1x FY25E P/B
fully price in the positive factors. We reiterate our Neutral rating on the stock
with a revised TP of INR730 (INR710 earlier).
Quarterly Performance (INR b)

Y/E March FY23 FY24E FY23 FY24E FY24E vs Est
1Q 2Q 3Q 4Q 1Q 2QE 3QE 4QE 1QE (%)
Sales (kt) 4,490 5,740 5,710 6,530 5,710 6,074 6,581 6,521 22,470 24,885
Change (YoY %) 29.4 49.9 46.0 27.3 27.2 5.8 15.2 -0.1 37.5 10.7
Net Sales 381 418 391 470 422 416 469 484 1,660 1,791 397 6.4
Change (YoY %) 31.8 28.5 2.8 0.1 10.8 -0.5 19.9 3.0 13.4 7.9
Change (QoQ %) -18.8 9.7 -6.3 20.0 -10.1 -1.5 12.8 3.1
EBITDA 43 18 45 79 70 75 76 81 185 303 49 43.8
Change (YoY %) -58.1 -83.2 -50.2 -13.6 63.5 330.4 66.7 2.3 -52.5 63.3
Change (QoQ %) -53.1 -59.3 159.5 74.6 -11.2 7.0 0.5 7.1
EBITDA (INR per ton) 9,597 3,052 7,963 12,158 12,340 12,415 11,519 12,453 8,254 12,171 8,715 41.6
Interest 14 15 18 21 20 20 20 21 69 81 20
Depreciation 18 18 19 20 19 20 20 20 75 80 21
Other Income 2 2 2 5 3 3 3 3 10 13 3
PBT (before EO Item) 13 -14 10 43 35 38 39 43 52 156 11
EO Items 0 6 0 0 0 0 0 0 6 0
PBT (after EO Item) 13 -8 10 43 35 38 39 43 58 156 11
Total Tax 4 1 5 5 11 10 10 11 15 41
% Tax 34.1 NA 48.7 11.9 29.9 25.2 25.2 25.2 26.2 26.3
Reported PAT 8 -8 5 37 23 29 29 32 41 114 8 192.3
MI (Profit)/Loss 0.0 0.7 0.2 -0.8 -0.9 0.0 0.0 0.0 0.1 -0.9
Share of P/(L) of Ass. -0.2 -0.6 -0.6 -0.1 -0.3 0.0 0.0 0.0 -1.4 -0.3
Adjusted PAT 8 -14 5 37 23 29 29 32 36 114 8 192.3
Change (YoY %) -85.8 PL -88.8 -7.8 179.0 LP 491.6 -11.4 -83.4 219.5
Change (QoQ %) -78.9 PL LP 647.8 -36.2 22.7 1.0 12.0
Source: Company, MOFSL
24 July 2023 13
22 July 2023
HDFC Life Insurance

Estimate change CMP: INR647 TP: INR700 (+8%) Neutral
TP change
Rating change
APE growth in line; VNB margin misses estimates
Growth outlook remains steady
the Asiamoney Brokers Poll 2023 for  HDFC Life Insurance (HDFCLIFE) reported a mixed performance in 1QFY24. It
India Research, Sales, Corporate posted a 6% miss on VNB and 160bp miss on VNB margins.
 APE rose 13% YoY to INR23.3b (in-line) driven by ULIP, Annuity and Term
products. On a total APE basis, non-PAR too rose 9% YoY.
 VNB increased 18% YoY (6% miss) with margin expanding 110bp YoY to
26.2%. EV grew 6% QoQ to INR418b during the quarter.
 PAT at INR 4.2b was in line with our estimates and rose 15% YoY in 1QFY24.
Bloomberg HDFCLIFE IN  We estimate HDFCLIFE to deliver ~18% VNB CAGR over FY23-25 and its
Equity Shares (m) 2153 margin to improve to ~28.5% by FY25. Reiterate Neutral with a TP of
M.Cap.(INRb)/(USDb) 1391.4 / 17 INR700 (premised on 2.7x Mar’25E EV).
1, 6, 12 Rel. Per (%) -4/0/3
12M Avg Val (INR M) 2676 Protection trends improving; Annuity growth strong at 45% YoY
 HDFCLIFE’s total premium rose 16% YoY to INR117b (4% miss) within which
Financials & Valuations (INR b) new business premium grew 19% YoY while renewal premium grew 14%
Y/E MARCH FY23 FY24E FY25E YoY. The growth was aided by higher persistency across cohorts. PAT
Net Premiums 567.6 682.4 826.2 jumped 15% YoY to INR4.2b (in-line) in 1QFY24.
Surplus / Deficit 13.6 13.6 16.4  Total APE grew 13% YoY to INR23.3b (in-line) in 1QFY24 with individual APE
Sh. PAT 13.6 16.2 19.1
rising 12% YoY. Within total APE, Annuity spiked 45% YoY while ULIP/Term
NBP gr- unwtd (%) 20.4 14.0 20.0
NBP gr - APE (%) 38.0 11.0 21.2
segments grew 18%/19% YoY. Non-par was up 9% YoY and is witnessing
Premium gr (%) 25.2 19.8 21.1 better-than-expected trends. The Group segment grew 13% YoY.
VNB margin (%) 27.6 27.6 28.5  VNB rose 18% YoY to INR6.1b (6% miss) in 1QFY24. Though VNB margin
RoEV (%) 19.9 19.2 18.8 improved ~110bp YoY to 26.2%, it declined 310bp QoQ.
Total AUMs (INRt) 2.4 2.9 3.4  On the distribution front, the share of banca improved to 61% based on
VNB (INRb) 36.7 40.9 51.2
individual APE while agency channel constituted 20% share. This rise was at
EV per share 184 219 260
the cost of direct channel as it continued to face heightened competition.
Valuations
P/EV (x) 3.5 3.0 2.5 Its share dipped to 12% in 1QFY24 from 22% in 1QFY23.
P/EVOP (x) 21.5 18.5 15.4  Total EV grew 6% QoQ to INR418b. Total AUM increased 19% YoY to INR2.5t
while solvency ratio stood at 200% (300bp QoQ decline).
As On Mar-23 Dec-22 Mar-22 Highlights from the management commentary
Promoter 50.3 50.3 51.5  As guided earlier, margin neutrality was achieved in FY23. Margins were hit
DII 6.6 6.2 7.8
in 1QFY24 owing to front-ending of the business in Mar’23. The company
FII 29.9 30.2 26.3
Others 13.2 13.3 14.3
has guided for a flat VNB margin in FY24.
FII Includes depository receipts  Experience in the non-par segment was better than earlier envisaged and
the company expects stronger growth in 2HFY24 in this segment.
 For HDFC Bank, there has been 50-100bp increase in wallet share during
1QFY24 and the company expects steady improvement going ahead.
24 July 2023 14
Valuation and view
HDFCLIFE remains focused on maintaining a balanced product mix, with an emphasis
on product innovation and superior customer service. While protection has picked
up momentum, Non-PAR growth is likely to be back ended. Credit life will continue
to witness healthy traction as the momentum in disbursements across lending
institutions remains strong. Persistency trend improved across all cohorts that will
keep the renewal premium growth healthy. We estimate HDFCLIFE to deliver ~18%
VNB CAGR over FY23-25 and margin to improve to ~28.5% by FY25. Maintain
Neutral with a TP of INR700 (premised on 2.7x Mar’25E EV).
Quarterly performance
FY23 FY24E FY24E V/s
Policy holder's A/c (INR b) FY23 FY24E
1Q 2Q 3Q 4Q 1Q 2QE 3QE 4QE 1Q est
First year premium 17.1 24.2 27.2 44.7 18.5 29.4 33.2 46.6 113.2 127.7 19.7 -5.8
Growth (%) 32.9 16.6 28.8 73.5 8.4 21.2 21.8 4.3 40.6 12.7 15.1
Renewal premium 51.0 69.1 71.9 92.5 58.0 82.3 93.1 124.5 284.5 357.9 63.9 -9.2
Growth (%) 31.1 37.2 29.7 26.1 13.8 19.2 29.5 34.5 30.4 25.8 25.4
Single premium 32.4 39.5 46.6 59.0 40.2 46.9 53.0 63.8 177.6 203.9 37.4 7.5
Growth (%) 30.6 -12.5 1.5 31.1 24.0 18.7 13.7 8.1 10.3 14.8 15.3
Gross premium inc. 100.5 132.8 145.8 196.3 116.7 158.6 179.3 234.9 575.3 689.5 121.0 -3.5
Growth (%) 31.3 14.2 18.9 36.1 16.2 19.4 23.0 19.7 25.2 19.8 20.4
PAT 3.6 3.3 3.2 3.6 4.2 3.9 3.9 4.3 13.6 16.2 4.1 1.5
Growth (%) 19.1 19.0 15.2 0.3 15.4 18.2 24.3 19.8 12.6 18.8 13.6
Key metrics (INR b)
New business APE 20.6 28.5 32.6 51.6 23.3 34.1 38.5 53.0 133.4 148.0 23.4 -0.5
Growth (%) 32.2 11.7 25.5 69.3 12.8 19.5 18.1 2.6 38.0 11.0 22.9
VNB 5.2 7.7 8.8 15.1 6.1 9.5 10.8 15.8 36.7 42.2 6.5 -6.2
Growth (%) 27.0 13.6 26.1 68.8 17.8 23.8 23.6 4.3 37.4 14.9 27.5
AUM (INR b) 2,134 2,249 2,338 2,388 2,533 2,652 2,747 2,867 2,388 2,867 2,532 0.1
Growth (%) 17.7 17.6 20.1 17.0 18.7 17.9 17.5 20.1 17.0 20.1 26.5
Key Ratios (%)
VNB Margins (%) 25.1 27.0 26.8 29.3 26.2 28.0 28.1 29.8 27.6 28.5 27.8 -160
Solvency ratio (%) 183.0 210.0 209.0 203.0 200.0 201.0 200.0 195.7 203.3 195.7 205.0 -500
24 July 2023 15
22 July 2023
Hindustan Zinc
TP change
Rating change Performance in line; guidance retained
Motilal Oswal values your support in the  Hindustan Zinc (HZ)’s 1QFY24 revenue came in at INR73b (down 22% YoY),
Asiamoney Brokers Poll 2023 for India which was in line with our estimate of INR74b.
Trading team. We request your ballot.  EBITDA stood at INR33b (down 35% YoY), in line with our estimate of
INR33b. The decline in EBITDA was attributed to lower LME prices that were
partially offset by lower cost of production (CoP).
 The CoP dipped to USD1,194/t in 1QFY24 from USD1,214/t in 4QFY23. The
decline in CoP was driven by benefits from higher coal linkages, softening
Bloomberg HZ IN coal prices, better ore grades and a strong operational performance.
M.Cap.(INRb)/(USDb) 1344.5 / 16.4
 APAT stood at INR20b (down 37% YoY) in line with our estimate of INR19b.
52-Week Range (INR) 383 / 261  Refined zinc sales for 1QFY24 stood at 208kt (up 1% YoY), refined lead sales
1, 6, 12 Rel. Per (%) -1/-19/-6 came in at 50kt (down 7% YoY) and silver sales stood at 179t (up 1% YoY).
12M Avg Val (INR M) 302
 HZ posted the highest ever 1Q mined metal production aided by higher ore
production at Kayad and Rampura Agucha mines, improved metal grades
Financials & valuations (INR b)
and better-than-expected mill recovery.
Y/E March 2023 2024E 2025E
Sales 341 331 353  Refined lead production was hit by low plant availability, which indirectly
EBITDA 175 160 193 impacted silver production adversely QoQ in 1QFY24.
EBITDA margin 51 48 55

NP 105 94 119
Adj. EPS (INR) 25 22 28 Guidance on volume and CoP maintained
EPS Gr(%) 8 -10 26  FY24 guidance:
BV/Sh. (INR) 31 43 61  Management has a strong focus on cost optimization, maintaining higher
Ratios
Net D:E 0.0 -0.3 -0.6 sales volumes and enhancing the share of VAP
RoE (%) 44.5 60.8 54.0  HZ maintained its mined metal production target of 1,075-1,100kt, refined
RoCE (%) 47.9 45.9 47.5 metal production target of 1,050-1,075kt and saleable silver target of 725-750t.
Payout (%) 303.5 44.8 35.6
Valuations
 Management has also maintained its cost guidance at USD1,125-1,175/t
P/E (x) 12.8 14.2 11.3 (with a strong focus on the lower end of the band).
P/BV 10.4 7.4 5.2  FY24 maintenance capex is expected to be ~USD375m, of which the
EV/EBITDA (x) 7.7 8.1 6.2
company has already incurred USD90m in 1QFY24 and the project capex is
Div. Yield (%) 23.7 3.1 3.1
FCF Yield (%) 8.6 7.0 10.2 expected to be ~USD175-200m.
 Gross debt currently stands at INR93b and cash & cash equivalents on books
Shareholding pattern (%) are around INR97b.
As On Jun-23 Mar-23 Jun-22 
Promoter 64.9 64.9 64.9 Valuation and view
DII 32.5 32.5 32.5
FII
 Management has reiterated its FY24 mined metal volume guidance of over
0.8 0.8 0.9
Others 1.8 1.8 1.7 1.1mt and expects the CoP to be in the range of USD1,125-1,175/t.
FII Includes depository receipts  HZ is currently trading at a rich valuation of 6.2x FY25E EV/EBITDA. We
retain our estimates for FY24 and FY25 and reiterate our Neutral rating on
the stock with a TP of INR300 (premised on 6x FY25E EV/EBITDA).
24 July 2023 16
Quarterly Performance INR b
Y/E March FY23 FY24E FY23 FY24E FY24E Vs. Est.
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q %
Mine prodn. (kt) 252 255 257 301 257 269 278 282 1,062 1,086
Sales
Zinc refined (kt) 206 189 210 216 208 211 213 217 821 849
Lead refined (kt) 54 57 46 54 50 53 55 56 211 214
Silver (tonnes) 177 194 161 182 179 180 185 188 714 732
Net Sales 94 83 79 85 73 78 89 91 341 331 74 (1)
Change (YoY %) 43.7 36.2 -1.6 -3.3 -22.4 -6.2 13.1 6.7 15.8 -3.0
Change (QoQ %) 6.7 -11.2 -5.6 8.2 -14.4 7.4 13.8 2.0
EBITDA 51 44 37 43 33 38 44 45 175 160 33 1
Change (YoY %) 44.4 32.1 -15.2 -14.2 -34.8 -14.9 18.6 5.2 7.9 -8.8
Change (QoQ %) 3.5 -14.2 -15.9 14.8 -21.3 12.1 17.2 1.8
As % of Net Sales 54.7 52.9 47.1 50.0 46.0 48.0 49.4 49.3 51.3 48.3
Finance cost 0 1 1 2 2 2 2 2 3 9 1
DD&A 7 8 8 9 8 9 9 9 33 34 9
Other Income 3 4 3 4 3 2 2 2 14 9 2
PBT (before EO item) 47 39 32 35 26 29 35 36 153 126 26
EO exp. (income) 0 0 0 0 0 0 0 0 0 0
PBT 47 39 32 35 26 29 35 36 153 126 26
Total Tax 16 12 10 9 6 7 9 9 48 32
% Tax 33.8 31.7 32.3 26.3 24.8 25.2 25.2 25.2 31.2 25.1
Reported PAT 31 27 22 26 20 22 26 27 105 94 19 2
Adjusted PAT 31 27 22 26 20 22 26 27 105 94 19 2
Change (YoY %) 55.9 32.9 -20.2 -11.8 -36.5 -19.2 22.8 3.1 9.2 -10.2
Change (QoQ %) 5.6 -13.3 -19.6 19.8 -24.0 10.3 22.3 0.6
Source: Company, MOFSL
24 July 2023 17
22 July 2023
Vedanta
Estimate change
TP change
CMP: INR278 TP: INR280 (+1%) Neutral
Rating change Revenue in line; marginal miss on EBITDA
Asiamoney Brokers Poll 2023 for India  Vedanta (VEDL)’s consolidated net sales stood at INR337b (down 12% YoY),
Research, Sales, Corporate Access and in line with our estimate of INR334b. Revenue was adversely impacted by
Trading team. We request your ballot.
the reduction in commodity prices and lower volumes, which was partially
offset by higher premiums and favorable exchange rate movement.
 VEDL’s consolidated EBITDA stood at INR64b (down 37% YoY), 6% miss to
our estimate of INR68b. The aluminum vertical was down 19% YoY to
INR18b; HZL was down 35% QoQ to INR33b and the oil and gas vertical was
Bloomberg VEDL IN
down 45% YoY to INR11b. All the verticals (except copper) were profitable
M.Cap.(INRb)/(USDb) 1034.5 / 12.6 during the quarter.
52-Week Range (INR) 341 / 236  VEDL’s APAT stood at INR9b (down 81% YoY) against our estimate of
1, 6, 12 Rel. Per (%) -6/-25/-10 INR16b. The miss was led by higher finance cost, lower other income, and
higher normalized effective tax rate.
Free float (%) 31.9
 LME prices across the non-ferrous portfolio were down QoQ. Zinc/Lead/
Financials & Valuations (INR b)
Copper/Aluminum prices were down 19%/1%/5%/6% on a QoQ basis,
Y/E March 2023 2024E 2025E whereas silver was up 7% QoQ.
Sales 1,473 1,378 1,457  VEDL’s net debt stood at ~INR592b and net debt/EBITDA stood at 1.88x in
EBITDA 344.2 311.0 352.5 1QFY24 as against 1.28x as on Mar’23. VEDL paid out INR18.5 as the first
EBITDA margin 23.4 22.6 24.2
interim dividend for FY24.
Attr. APAT 107.9 94.2 115.0
Adj. EPS (INR) 29.0 25.3 30.9
EPS Gr (%) -44.9 -12.7 22.2 Highlights from the management commentary
BV/Sh. (INR) 106.0 94.4 102.9  VEDL is planning to set up a semiconductor and display glass production
Ratios
facility at Dholera (Gujarat). The company is currently seeking the necessary
Net D:E 1.1 1.5 1.3
RoE (%) 20.6 25.3 31.3
approvals for the project. Once operationalized, VEDL would augment its
RoCE (%) 21.5 20.6 22.8 product portfolio from being a metals and mining company to a technology
Payout (%) 349.9 127.9 72.3 company.
Valuations  VEDL is expanding its alumina capacity to 5mt from 2mt and smelting
P/E (x) 9.6 11.0 9.0
capacity to 2.8mt from 2.3mt.
P/BV 2.6 2.9 2.7
EV/EBITDA (x) 5.3 6.4 5.7  Alumina CoP is expected to reduce by USD50/t in 2QFY24.
Div. Yield (%) 36.5 11.6 8.0  VEDL has recently acquired the Cudnem iron ore block in Goa, which is
FCF Yield (%) 18.6 10.0 15.8 expected to bolster its Reserves and Resources (R&R) by 8.3mt
 VEDL is also in the process of enhancing its captive coal capacity by
Shareholding pattern (%) establishing the Radhikapur block, with a Planned Rated Capacity (PRC) of
Promoter
6mt. The production from this block is expected to commence from 1QFY25.
68.1 68.1 69.7
DII  Zinc India (HZ) has maintained its mined metal production target of 1,075-
10.1 10.3 11.6
FII 7.6 8.0 8.9 1,100kt, refined metal production target of 1,050-1,075kt, and a saleable silver
Others 14.3 13.6 9.8 target of 725-750t.
Valuation and view

 Globally, the commodities market is facing multiple headwinds such as
inflationary pressure, monsoon-led seasonal slowdown, muted demand
pick-up from China, and a slowdown in the Chinese real estate sector.
24 July 2023 18
 We have largely retained our FY25 EBITDA and APAT forecasts. We reiterate our
Neutral rating on VEDL with an SoTP-based TP of INR280. At CMP of INR278,
the stock is trading at FY25E EV/EBITDA of 5.7x and FY25E P/B multiple of 2.7x.
Quarterly Performance (Consolidated) (INR b)

Y/E March FY23 FY24E FY23 FY24E FY24E Vs. Est.
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q %
Net Sales 386 367 341 379 337 334 352 355 1,473 1,378 334 1
Change (YoY %) 35.9 20.6 0.0 -4.8 -12.7 -8.9 3.2 -6.4 11.0 -6.4
Change (QoQ %) -3.0 -5.1 -7.0 11.2 -11.1 -1.0 5.4 0.9
Total Expenditure 284 290 270 285 273 259 269 266 1,129 1,067 265 3
EBITDA 102.0 77.0 70.7 94.6 64.2 75 83 89 344.2 311 68 (6)
Change (YoY %) 1.8 -25.7 -34.6 -30.6 -37.0 -2.1 17.0 -6.2 -23.2 -9.7
Change (QoQ %) -25.2 -24.5 -8.2 33.8 -32.1 17.4 9.8 7.3
As % of Net Sales 26.4 21.0 20.7 24.9 19.0 22.6 23.5 25.0 23.4 22.6
Finance cost 12 16 16 18 21 17 17 12 62 67 17
DD&A 25 26 27 28 26 27 27 28 106 106 28
Other Income 7 7 7 7 5 7 7 8 29 28 7
PBT (before EO item) 73 41 35 56 23 39 46 57 205 166 31 (26)
EO exp. (income) 0 -2 -9 13 -18 0 0 0 2 -18
PBT (after EO item) 73 44 44 43 41 39 46 57 203 183 31
Total Tax 16.7 16.7 13.0 11.3 7.8 10 12 14 57.7 44
% Tax 23.0 38.4 29.6 26.4 19.0 25.2 25.2 25.2 28.5 23.8
Reported PAT 56 27 31 31 33 29 35 43 145 140 23
Profit from Asso. 0.0 0.0 0.0 0.0 0.0 0 0 0 0.0 0
Minority interest 11.7 8.8 6.3 12.5 6.7 7 7 7 39.3 28
APAT 44 16 16 32 9 22 28 36 108 94 16 (47)
Change (YoY %) -1.3 -66.2 -63.4 -47.8 -80.5 41.3 77.7 10.6 -44.9 -12.7
Change (QoQ %) -28.3 -64.4 -0.8 106.1 -73.3 158.6 24.7 28.3
Sources: MOFSL, Company
24 July 2023 19
22 July 2023
1QFY24 Results Update | Sector: Consumer
United Spirits
Estimate change CMP: INR1,039 TP: INR960 (-8%) Neutral
TP change
Rating change
Strong operating performance; demand pressure persists
 United Spirits (UNSP) reported a strong margin beat with EBITDA margin of
Asiamoney Brokers Poll 2023 for India 17.7% (est. 13.5%), largely driven by GP margin expansion (+270bp YoY) and
Research, Sales, Corporate Access and productivity improvement across the value chain.
 A&P spending was lower during the quarter at 6.8% of sales, but the
management expects it to be in the range of 9-10% of sales going ahead.
 The duty hike in Karnataka may affect volume as the state already has a
high tax rate and is seeing demand pressure.
 With volatility in raw material prices and persistent demand pressure, we
Bloomberg UNSP IN maintain our Neutral rating on the stock with a TP of INR960, based on 55x
Mar’25E EPS.
M.Cap.(INRb)/(USDb) 755.5 / 9.2
52-Week Range (INR) 1044 / 731 In-line sales; strong margin beat
1, 6, 12 Rel. Per (%) 11/17/4  UNSP’s standalone net sales stood flat YoY at INR21.7b (est. INR21.1b), with
P&A salience of 86%. LFL sales grew 17.4% YoY in 1QFY24.
 Total reported volumes are estimated to have declined 29% YoY (est. -15%).
Y/E March 2023 2024E 2025E
 Reported gross margin expanded 270bp YoY to 43.6% in 1QFY24.
Sales 103.7 111.8 124.2  As a percentage of sales, the increase in advertising costs (+30bp YoY) was
Sales Gr. (%) 10.1 7.8 11.1 offset by lower other expenses (-80bp) and lower staff costs (-80bp YoY). As
EBITDA 14.2 16.5 19.4 a result, EBITDA margin expanded by 390bp to 17.7% (est. 13.5%).
Margin (%) 13.7 14.7 15.6
PAT 9.2 10.5 12.6  EBITDA grew 28.7% YoY to INR3.9b (est. INR2.8b) in 1QFY24.
EPS (INR) 12.7 14.5 17.4  On an absolute basis, ad spending increased by 4.6% YoY and constituted
EPS Gr. (%) -4.5 13.6 20.5 6.8% of net sales at INR1.5b.
BV/Sh.(INR) 81.8 93.7 95.0
 PBT jumped 39% YoY to INR3.4b, while adjusted PAT declined 8.3% to
Ratios
RoE (%) 15.5 15.4 18.3 INR2.5b (est. INR2.3b/INR1.7b) in 1QFY24.
RoCE (%) 20.5 21.5 25.5  Exceptional item: The company recognized a provision of INR1.7b related
Payout (%) 0.0 45.0 45.9 to severance costs.
Valuations
P/E (x) 81.7 71.9 59.7 Highlights from the management commentary
P/BV (x) 12.7 11.1 10.9  Despite the volatile macro-economic environment, UNSP’s performance
EV/EBITDA (x) 52.5 45.1 38.6
remained steady thanks to resilient consumption during the quarter.
 The Men's IPL team made a profit of INR3,000m over a ten year period,
with media rights auctions occurring every five years. On the other hand,
Promoter
the Women's IPL team incurred a loss of ~INR900m.
56.7 56.7 56.7
DII  Gross margin benefitted from write-back; adjusting for it, gross margin
-3.3 12.7 10.9
FII 15.9 15.4 16.8 would be 43% (est. 42.6%).
Others 14.8 15.2 15.7  Glass cost is highly inflated due to 100% glass industry utilization.
FII Includes depository receipts  There is a minor variation in sales patterns compared to the pre-Covid
period, as indicated by a shift in the Jan-Jun/Jul-Dec sales ratio to 46:54
from 49:51.
Valuation and view
 There are no material changes to our FY24/FY25 EPS estimates.
 In the near term, there are challenges ahead in the form of cost inflation,
which aligns with our earlier projections in the commodity note.
Additionally, there will be persistent pressure in the Popular categories due
to high inflation.
24 July 2023 20
 A 20% duty hike in the Karnataka may resulted in a 14-17% increase in the
maximum retail prices of brands, which could hurt demand.
 However, we expect a gradual improvement in the outlook starting from FY24
and beyond. While other discretionary companies have achieved double-digit
sales/EBITDA growth over the past five years in a relatively stable demand
environment, UNSP has recorded single-digit growth in the same period. Due to
this performance, we maintain a Neutral rating on the stock with a TP of INR
960 (based om 55x FY25E EPS).
Quarterly Performance (INR m)
Y/E March FY23 FY24E FY23 FY24E FY24 Var.
(Standalone) 1Q 2Q 3Q 4Q 1Q 2QE 3QE 4QE 1QE (%)
Volume growth % 17.9 8.3 -25.0 -27.3 -28.6 -23.0 9.0 11.0 -8.4 -7.9 -15.0
Total revenues 21,693 29,110 27,811 24,938 21,719 28,761 31,844 29,470 1,03,737 1,11,793 21,129 2.8%
YoY change (%) 34.3 19.0 -3.4 -0.3 0.1 -1.2 14.5 18.2 10.1 7.8 -2.6
Gross Profit 8,882 11,481 11,281 11,315 9,474 12,367 13,756 12,865 43,019 48,462 9,001 5.3%
Margin (%) 40.9 39.4 40.6 45.4 43.6 43.0 43.2 43.7 41.5 43.4 42.6
EBITDA 2,992 4,373 3,678 3,380 3,851 4,084 4,490 4,064 14,187 16,489 2,842 35.5%
Margins (%) 13.8 15.0 13.2 13.6 17.7 14.2 14.1 13.8 13.7 14.7 13.5
EBITDA growth (%) 78.4 8.9 -24.9 -21.1 28.7 -6.6 22.1 20.2 -6.1 16.2 -5.0
Depreciation 653 659 636 684 650 699 725 768 2,706 2,841 660
Interest 166 210 243 360 43 147 170 222 1,039 582 108
Other income 251 76 232 169 209 228 267 246 742 950 213
PBT 2,424 3,580 3,031 2,505 3,367 3,466 3,862 3,321 11,184 14,016 2,288 47.2%
Tax -313 952 796 381 857 849 973 839 1,945 3,518 561
Rate (%) -12.9 26.6 26.3 15.2 25.5 24.5 25.2 25.2 17.4 25.1 24.5
Adj. PAT 2,737 2,628 2,235 2,124 2,510 2,617 2,888 2,482 9,239 10,498 1,727 45.3%
YoY change (%) 217.1 17.2 -28.1 -24.1 -8.3 -0.4 29.2 16.9 -4.5 13.6 -36.9
E: MOFSL Estimate
24 July 2023 21
22 July 2023
Union Bank of India

Estimate change CMP: INR90 TP: INR110 (+22%) Buy
TP change
Earnings beat led by higher other income and lower
Rating change
provisions
Asiamoney Brokers Poll 2023 for India Asset quality improves
 Union Bank of India (UNBK) reported a steep YoY growth of 108% in PAT to
INR32.4b (56% beat), driven by higher other income (up 39% YoY) and
lower provisions (down 32% QoQ).
 NII grew 7% QoQ to INR88.4b (6% beat), owing to NIM increase of 15 bps.
Loan/Deposits growth remains flattish with CASA deposits witnessing a
Bloomberg UNBK IN moderation.
Equity Shares (m) 6835  Asset quality ratios improved with GNPA/NNPA ratios moderating to 7.3%
M.Cap.(INRb)/(USDb) 617.1 / 7.5
/1.6%. PCR improved to ~79.8% in 1QFY24. Restructured book declined to
1, 6, 12 Rel. Per (%) 23/2/118 2.0% of loans, while SMA book improved 11bp QoQ to 51bp.
12M Avg Val (INR M) 1209  We increase our FY24/25E earnings estimates by 19%/12% and estimate
RoA/RoE of 1.0%/17.6% by FY25. We retain our BUY rating with a TP of
Financials & Valuations (INR b) INR110.
NII 327.7 364.1 399.5 Margin improves 15bp QoQ to 3.1%; SMA book declines to 51bp
OP 254.7 282.2 313.6  UNBK reported 108% YoY growth in 1QFY24 PAT to INR32.4b (56% beat),
NP 84.3 123.4 151.5
NIM (%) 2.8 2.9 2.9
driven by higher ‘other income’ (18% beat) and a decline in provision to
EPS (INR) 12.3 18.0 22.2 INR20.0b (down 32% QoQ).
EPS Gr. (%) 56.1 46.3 22.8  NII grew 7% QoQ to INR88.4b (up 17% YoY, 6% beat) in 1QFY24, driven by
BV/Sh. (INR) 110 123 137
ABV/Sh. (INR) 94 109 125
a 15bp QoQ increase in NIM increase to 3.1%.
RoE (%) 12.2 16.1 17.6  Other income grew 39% YoY, fueled by a treasury gain of INR7.8b (up 28%
RoA (%) 0.7 0.9 1.0 QoQ) and a fee income of INR19.5b (up 15% QoQ) despite modest
Valuations
recovery from NPAs.
P/E(X) 7.3 5.0 4.1
P/BV (X) 0.8 0.7 0.7  Operating expenses grew 12% YoY to INR56b (3% below MOFSLe).
P/ABV (X) 1.0 0.8 0.7 PPoP/Core PPoP rose 32%/21% YoY to INR71.8b/INR64.0b. C/I ratio
moderated to 43.7% during the quarter.
Shareholding pattern (%)  Advances grew 14% YoY to INR7.7t, propelled by traction across the RAM
segment and Overseas credit, which grew 14% YoY and 34% YoY. Deposits
Promoter 83.5 83.5 83.5
DII grew 14% YoY (flat QoQ) with CASA deposits declining 2.3% QoQ, leading
8.3 8.4 7.1
FII 1.7 1.6 1.2 to a 102bp QoQ moderation in CASA ratio to 34.6%.
Others 6.6 6.5 8.3  Fresh slippages increased to INR32.4b (1.7% annualized); however, healthy
FII Includes depository receipts recoveries/upgrades and write-offs resulted in an improvement in asset
quality ratios. GNPA/NNPA ratio thus improved 19bp/12bp QoQ to
7.3%/1.6%, while PCR improved to 79.8%.
 The total SMA book (~INR42m) stood at 0.51% of loans vs. 0.62% in
4QFY23. The total restructured loans declined to 2.0% of loans.
 NIM for 1QFY24 stood at 3.1% and the bank provides full-year NIM
guidance of 3% for FY24.
 Of the total MCLR book, 25% of the book has been re-priced in the current
quarter.
24 July 2023 22
 The bank has provided GNPA/NNPA guidance of below 6%/1% for FY24.
 The bank has seen a growth of 20% in digital account addition and 65% growth
in digital FD creation.
Valuation and view

UNBK reported a robust quarter as earnings beat estimates, led by higher treasury
gains, healthy margins, and lower provisions. Loan/Deposits growth remains flattish
with CASA witnessing a moderation. Fresh slippages increased slightly; however,
healthy recoveries and upgrades supported the asset quality. A low SMA book
(0.51%) and controlled restructuring (2.0%) provided a better outlook on asset
quality. We increase our FY24E/25E earnings estimates by 19%/12% and estimate
RoA/RoE of 1.0%/17.6% by FY25. We reiterate our BUY rating with a TP of INR110
(premised on 0.9x FY’25E ABV).

FY23 FY24E FY23 FY24E FY24E V/S our
% Change (YoY) 8.1 21.6 20.3 21.9 16.6 7.4 6.4 14.9 17.9 11.1 10.2
Other Income 28.2 32.8 32.7 52.7 39.0 37.7 39.9 44.3 146.3 161.0 33.0 18%
Total Income 104.0 115.8 119.0 135.2 127.4 126.9 131.7 139.1 474.0 525.1 116.6 9%
Operating Expenses 49.5 50.0 52.8 67.0 55.6 59.0 61.5 66.8 219.3 242.9 57.3 -3%
% Change (YoY) 5.1 8.3 29.8 23.6 31.8 3.2 6.1 6.0 16.4 10.8 8.8
Provisions 32.8 40.8 30.4 29.4 20.1 25.9 26.5 28.3 133.3 100.8 29.5 -32%
Tax 6.1 6.5 13.4 11.1 19.4 12.6 13.1 13.0 37.0 58.1 8.9 118%
Net Profit 15.6 18.5 22.4 27.8 32.4 29.4 30.6 31.0 84.3 123.4 20.8 56%
% Change (YoY) 32.0 21.1 106.8 93.3 107.7 58.9 36.3 11.5 61.2 46.3 33.4
Deposit (INR b) 9,928 10,433 10,650 11,177 11,281 11,490 11,758 12,071 11,177 12,071 11,311 0%
Loan (INR b) 6,764 7,275 7,564 7,618 7,705 7,912 8,163 8,456 7,618 8,456 7,744 -1%
Deposit Growth (%) 9.3 14.1 13.6 8.3 13.6 10.1 10.4 8.0 8.3 8.0 13.9 (31)
Loan Growth (%) 15.7 25.2 22.6 15.3 13.9 8.8 7.9 11.0 15.3 11.0 14.5 (58)
Asset Quality
Gross NPA (%) 10.2 8.5 7.9 7.5 7.3 6.9 6.4 5.8 7.5 5.8 7.2 17
Net NPA (%) 3.3 2.6 2.1 1.7 1.6 1.6 1.5 1.3 1.8 1.3 1.6 (2)
PCR (%) 69.9 70.6 74.6 78.8 79.8 78.4 78.5 78.3 78.1 78.3 79.0 81
E:MOFSL Estimates
24 July 2023 23
23 July 2023
One 97 Communications
Estimate change CMP: INR844 TP: INR1,000 (+19%) Buy
TP change
Rating change
Revenue, GMV growth inline; business metrics on track
Contribution margin improves slightly
Motilal Oswal values your support in the  Paytm reported a net loss of INR3.6b (our est. INR3.1b loss) in 1QFY24.
Research, Sales, Corporate Access and Total revenue grew 39% YoY to INR23.4b (in line) supported by healthy
Trading team. We request your ballot. growth in GMV, disbursements and addition of subscription devices.
 Net payment margin grew 69% YoY to INR6.5b in 1QFY24, which, along
with financial services revenue, resulted in improvements in contribution
margin to ~56%.
 We cut our estimates and expect Paytm to report EBITDA of INR7.7b by
Bloomberg PAYTM IN FY25 vs. earlier estimate of INR8.8b. However, we continue to believe that
Equity Shares (m) 649 Paytm will achieve earnings breakeven in FY25. We retain our BUY rating.
M.Cap.(INRb)/(USDb) 535 / 6.5
52-Week Range (INR) 915 / 440 Disbursement growth robust; Financial services revenue mix rises to 22%
1, 6, 12 Rel. Per (%) -8/44/-6  Paytm reported a loss of INR3.6b in 1QFY24 vs. a loss of INR1.7b in 4QFY23
(Ex UPI incentive, net loss for 4QFY23 stood at INR3.5b).
 GMV grew 37% YoY to INR4.1t in 1QFY24 (+12% QoQ). Loan disbursements
Y/E Mar FY23 FY24E FY25E
grew 167% YoY to INR148.5b in 1QFY24.
Revenue 79.9 113.6 151.9  Total revenue grew 39% YoY (flat QoQ, broadly in line) to INR23.4b
Cont. Profit 39.0 61.8 85.4 supported by healthy growth in GMV and disbursements.
Adj. EBITDA (1.8) 8.4 18.7  Revenue from payment and financial services grew 44% YoY to INR19.4b,
EBITDA (16.3) (6.5) 7.7
with 98% YoY growth in financial services and 51% YoY growth in payment
PAT (17.8) (10.0) 1.9
EPS (INR) (28.0) (15.5) 3.0
services to merchants. Financial services now form ~22% of total revenue.
EPS Gr. (%) (24.1) (44.6) NM  Revenue from commerce and cloud services grew 22% YoY (+3% QoQ, in
Ratios (%) line) to INR4.1b. Growth was subdued during the quarter due to a decline
Cont. Margin 48.8 54.4 56.2 in movie industry and volume of entertainment business. As a result, take
Adj. EBITDA Margin (2.2) 7.4 12.3 rates moderated to 5%-6% from 8% in 4QFY23. The number of active cards
EBITDA Margin (20.4) (5.7) 5.1 increased by 0.16m to ~0.75m as of 1QY24.
ROE (%) (13.1) (7.7) 1.5
 Payment processing charges stood at 19bp of GMV vs. 22bp in 4QFY23.
ROA (%) (9.9) (5.7) 1.1
Valuations
Despite no UPI incentives received during the quarter, payment processing
P/E(X) (30.0) (54.3) NM margin stood at 7-9bp of GMV and the company expects it to settle at 5-
P/BV (X) 4.1 4.2 4.2 7bp over the medium to long term. Thus, net payment margin grew 69%
P/Sales (X) 6.7 4.8 3.6 YoY to INR6.5b, aided by healthy subscription revenue as subscription
devices increased to 7.9m (up ~1.1m in 1QFY24).
 Direct expenses stood at 44% of total revenues (45% in 4QFY23), driven by
an increase in promotional cash-back and incentives during the quarter.
Thus, contribution profit rose to INR13.0b (our est. INR13.2b), with
contribution margin of 56% in 1QFY24 (55% in 4QFY23).
 Adjusted EBITDA came in at INR0.84b in 1QFY24 (27% miss) vs. INR2.3b in
4QFY23. Adjusted EBITDA margin thus declined to 3.6% (5% ex UPI
incentives in 4QFY23).
24 July 2023 24
 Paytm remains focused on becoming free cash flow positive before the end of
FY24.
 Take rate in the lending business is 3.5-3.75% (including collection incentives
given by the lender) and the company expects it to improve going forward.
 Portfolio quality improved in 1QFY24 vs. 4QFY23, with a reduction in bounce
rates and a moderation in ECL costs, especially in postpaid loans.
 Excluding GST, Paytm charges ~INR100 per month as subscription fees on the
sound box and ~INR300-INR500 per month on the POS card machines,
depending on the device model.
 Sales employee count grew by 38% YoY to ~30k as the company expanded into
new geographies.
Valuation and view

Paytm reported a largely in-line 1QFY24 with sustained momentum in GMV and
robust growth in disbursements. This, coupled with strong traction in subscription
devices, led to healthy growth in total revenue. Gradual improvements in operating
leverage boosted contribution margin to 56%. Adjusted EBITDA was below our
estimate, but the company remains on track to achieve EBITDA breakeven by FY25.
We believe that consistent improvement in contribution margin and operating
leverage will continue to drive operating profitability. We value Paytm based on 17x
FY28E EV/EBITDA and discount the same to FY25E taking a discount rate of ~15%.
We thus value the stock at INR1,000, which implies 4.7x FY25E P/Sales.

FY23 FY24E FY23 FY24E FY24E V/s our
Payment Services to Consumers 5.2 5.5 5.1 5.2 5.5 5.9 6.4 7.3 21.1 25.2 5.4 3%
Payment Services to Merchants 5.6 6.2 6.4 9.2 8.4 8.8 9.5 10.8 27.4 37.6 7.7 10%
Financial Services and Others 2.7 3.5 4.5 4.8 5.2 7.3 8.0 10.8 15.4 31.3 6.8 -23%
Payment and Financial Services 13.5 15.4 16.4 19.4 19.4 22.3 24.2 29.4 63.8 94.1 20.1 -3%
% Change (Y-o-Y) 95.7 82.4 47.1 59.1 43.6 44.9 47.1 51.2 65.5 47.4 48.8 -11%
Commerce and Cloud Services 3.3 3.8 4.2 3.9 4.1 4.5 5.0 4.9 15.2 18.5 4.0 1%
Revenue from Operations 16.8 19.1 20.6 23.4 23.4 26.8 29.2 34.3 79.9 113.6 24.1 -3%
% Change (Y-o-Y) 88.7 76.2 41.7 51.5 39.3 39.8 41.3 46.9 60.6 42.2 43.4 -9%
Direct Expenses 9.5 10.7 10.2 10.5 10.4 12.4 13.3 15.7 40.9 51.8 10.9 -4%
Contribution Profit 7.3 8.4 10.5 12.8 13.0 14.3 15.8 18.6 39.0 61.8 13.2 -1%
% Change (Y-o-Y) 197.4 223.4 131.0 138.1 79.3 69.8 51.1 44.9 160.3 58.4 82.0 -3%
Adjusted EBITDA -2.7 -1.7 0.3 2.3 0.8 1.5 2.2 3.9 -1.8 8.4 1.1 -27%
EBITDA -6.3 -5.4 -3.3 -1.3 -2.9 -2.2 -1.6 0.2 -16.3 -6.5 -2.5 17%
PAT -6.4 -5.7 -3.9 -1.7 -3.6 -3.0 -2.3 -1.2 -17.8 -10.0 -3.1 14%
GMV (INR t) 3.0 3.2 3.5 3.6 4.1 4.3 4.8 4.7 13.2 17.8 4.0 1%
Disbursements (INR b) 55.5 73.1 99.6 125.5 148.5 169.2 194.6 213.0 353.8 725.3 150.0 -1%
GMV Growth (%) 101.5 62.6 38.4 39.8 36.8 36.3 39.0 28.5 55.2 35.0 35.0
Disbursements Growth (%) 778.8 481.8 356.6 253.3 167.3 131.4 95.4 69.6 364.2 105.0 170.0
Contribution Margin 43.3 44.0 50.8 55.0 55.7 53.5 54.3 54.2 48.8 54.4 54.9
Adjusted EBITDA Margin (%) -16.3 -8.7 1.5 10.0 3.6 5.6 7.5 11.4 -2.2 7.4 4.8
EBITDA Margin (%) -37.7 -28.1 -16.0 -5.5 -12.5 -8.3 -5.3 0.5 -20.4 -5.7 -10.4
E: MOFSL estimates
24 July 2023 25
23 July 2023
AU Small Finance Bank

Estimate change CMP: INR765 TP: INR810 (+6%) Neutral
TP change
Rating change Earnings in line; margins contract by 38bp
Asset quality deteriorates marginally
Asiamoney Brokers Poll 2023 for India  AUBANK reported 44% YoY growth in net earnings (in line), aided by healthy
Research, Sales, Corporate Access and NII growth of 28% YoY and higher ‘other income’ (up 98% YoY). PPoP thus
grew 39% YoY (down 4% QoQ, in line). Margins contracted 38bp QoQ to
5.7%.
 Gross advances/deposits grew strongly by 29%/27% YoY, and CASA deposits
grew 15% YoY. CASA mix moderated to 35%.
 Absolute GNPAs/NNPAs increased 14%/42% QoQ. Thus, the headline in
Bloomberg AUBANK IN GNPA/NNPA ratios deteriorated 10bp/13bp QoQ to 1.76%/0.55%.
Equity Shares (m) 667  We fine tune our estimates and expect AUBANK to deliver 28% earnings
M.Cap.(INRb)/(USDb) 510.3 / 6.2 CAGR over FY23-25, with RoA/RoE of 1.9%/17.4% in FY25E. We retain our
1, 6, 12 Rel. Per (%) -3/15/11
Neutral stance on the stock.
CASA mix moderates to 35%; restructured book down to 1.0% of loans
Financials & Valuations (INR b)  AUBANK reported 44% YoY growth in net earnings (down 9% QoQ, in line)
Y/E March FY23 FY24E FY25E in 1QFY24, aided by healthy NII growth of 28% YoY and robust ‘other
NII 44.3 52.7 67.3 income’ (up 98% YoY).
PPoP 20.2 24.5 33.5
PAT
 PPoP thus grew 39% YoY (down 4% QoQ, in line). Margins contracted 38bp
14.3 17.4 23.5
NIM (%) 5.6 5.2 5.4 QoQ to 5.7% in 1QFY24 and the management expects margins to be at
EPS (INR) 22.0 26.2 35.2 5.5%-5.7% going forward. Core fee income grew 48% YoY (down 6% QoQ).
EPS Gr. (%) 22.3 18.7 34.7  Opex grew 37% YoY as the bank continues to invest in building the
BV/Sh. (INR) 159 185 220 franchise. Thus, the C/I ratio increased 200bp QoQ to 65%. PPoP grew 39%
ABV/Sh. (INR) 157 182 217
YoY to INR5.5b (in line).
Ratios
RoE (%) 15.8 15.2 17.4
 Gross advances grew 29% YoY to INR636b (up 8% QoQ), led by healthy
RoA (%) 1.8 1.7 1.9 traction in the both retail as well as wholesale book, which grew 8%/6%
Valuations QoQ.
P/E(X) 34.7 29.2 21.7  Total deposits grew 27% YoY to ~INR693b (flat QoQ). CA/SA deposits
P/BV (X) 4.8 4.1 3.5
declined 12%/8% QoQ, while TDs grew 5% QoQ. The CASA ratio thus
P/ABV (X) 4.9 4.2 3.5
moderated by 340bp QoQ to 35% in 1QFY24.
 Absolute GNPAs/NNPAs grew 14%/42% QoQ. Thus, the headline GNPA/
As On Jun-23 Mar-23 Jun-22 NNPA ratios deteriorated 10bp/13bp QoQ to 1.76%/0.55%. The PCR ratio
Promoter 25.5 25.5 28.2 thus moderated to 69%.
DII 19.3 20.6 18.4  The outstanding restructured portfolio declined to INR6.3b, corresponding
FII 41.6 39.7 35.1 to 1.0% of advances (vs. 1.2% in 4QY23). The bank is carrying provisions of
Others 13.6 14.1 18.3 INR1.0b on the restructured book.

 Disbursement yield increased 29 bps on a QoQ basis and is expected to
support margins in the future. NIMs guided to be at 5.5%-5.7%.
 Average LCR for 1QFY24 stood at ~139% (119% as on Jun’23).
 The bank plans to open an additional 50+ branches and touchpoints in FY24.
 The bank expects GNPA to be ~1.5%-1.75% and NNPA to be ~0.5%-0.6%.
24 July 2023 26
Valuation and view
AUBANK reported an in-line quarter, aided by healthy advances growth and higher
‘other income’. Asset quality deteriorated during the quarter both in terms of
absolute numbers and as a percentage. NII growth was flattish QoQ due to a 40bp
moderation in margins despite 29% gross advances growth. On the business front,
business growth was healthy, while CASA deposits moderated QoQ, leading to a
moderation in CASA ratio by 340bp. The bank carries contingent reserves of
~INR0.3b, which coupled with a 16% coverage on restructured assets, offers a sense
of reassurance. We fine tune our estimates and expect AUBANK to deliver a 28%
earnings CAGR over FY23–25, with RoA/RoE of 1.9%/17.4% in FY25E. We reiterate
our Neutral rating with a TP of INR810 (3.7x FY25E BV).
Quarterly performance table (INR m)

FY23 FY24E FY24E
FY23 FY24E v/s Est
1Q 2Q 3Q 4Q 1Q 2QE 3QE 4QE 1QE
Net Interest Income 9,760 10,833 11,527 12,132 12,462 12,922 13,396 13,961 44,253 52,741 12,504 -0.3
% Change (Y-o-Y) 34.8 43.8 40.5 29.5 27.7 19.3 16.2 15.1 36.8 19.2 28.1
Other Income 1,592 2,474 2,949 3,331 3,151 3,310 3,547 3,957 10,345 13,965 2,779 13.4
Total Income 11,352 13,307 14,476 15,463 15,613 16,231 16,943 17,918 54,597 66,706 15,283 2.2
Operating Expenses 7,411 8,319 8,919 9,753 10,153 10,432 10,685 10,964 34,403 42,234 9,709 4.6
Operating Profit 3,941 4,988 5,557 5,709 5,461 5,800 6,258 6,954 20,195 24,473 5,574 -2.0
% Change (Y-o-Y) -18.2 27.1 21.2 18.4 38.6 16.3 12.6 21.8 11.3 21.2 41.5
Provisions 384 430 326 409 330 388 296 631 1,548 1,646 459 -28.1
Profit before Tax 3,557 4,558 5,231 5,300 5,131 5,411 5,962 6,323 18,646 22,827 5,115 0.3
Tax 878 1,132 1,302 1,054 1,262 1,364 1,443 1,319 4,367 5,387 1,263 -0.1
Net Profit 2,679 3,426 3,928 4,246 3,869 4,048 4,519 5,004 14,279 17,440 3,852 0.4
% Change (Y-o-Y) 31.8 23.0 30.1 22.7 44.4 18.1 15.0 17.8 26.4 22.1 43.8
Deposit (INR b) 546.3 583.4 611.0 693.6 693.2 756.8 805.5 874.0 693.6 874.0 726.1 -5
Loan (INR b) 486.5 517.4 556.0 584.2 628.6 641.7 686.0 748.5 584.2 748.5 613.8 2
Deposit Growth (%) 47.6 49.4 38.0 31.9 26.9 29.7 31.8 26.0 31.9 26.0 32.9 -603
Loan Growth (%) 43.3 44.4 38.4 26.7 29.2 24.0 23.4 28.1 26.7 28.1 26.2 305
Asset Quality
GNPA (%) 2.0 1.9 1.8 1.7 1.8 1.6 1.6 1.6 1.7 1.6 1.6 12
NNPA (%) 0.6 0.6 0.5 0.4 0.6 0.5 0.5 0.5 0.5 0.5 0.4 14
PCR (%) 71.7 71.1 72.1 75.0 69.0 69.7 70.3 70.9 70.8 70.9 75.3 -626
Source: MOFSL
24 July 2023 27
22 July 2023
1QFY24 Results Update | Sector: Technology
Mphasis
Estimate change CMP: INR2,323 TP: INR2,250 (-3%) Neutral
TP change
Rating change
Growth recovery already factored into valuation
Margins to remain within the guided range; maintain Neutral
Bloomberg MPHL IN  MPHL’s 1QFY24 revenue performance (-3.5% QoQ CC) was weaker than our
Equity Shares (m) 193 estimate (-1.2% QoQ CC) on account of persistent headwinds in the Direct
M.Cap.(INRb)/(USDb) 439.4 / 5.4 business (incl. mortgage) and the ongoing moderation in the DXC vertical (-
52-Week Range (INR) 2445 / 1661 10.5% QoQ CC). But the company delivered record deal closures in 1Q at
1, 6, 12 Rel. Per (%) 19/6/-16 USD707m (2x of average run rate).
12M Avg Val (INR M) 1149  Despite a weak revenue performance in 1Q, the management is confident
that growth will rebound in 2QFY24, driven by the bottoming out of its
Financials & Valuations (INR b) mortgage processing business (Digital Risk, DR) in 1Q and scale-up of large
Y/E Mar 2023 2024E 2025E deals as clients resume spending. With the interest rate hike cycle coming to
Sales 138.0 134.9 155.0
an end, MPHL is seeing early signs of revival in DR amid a pickup in volumes
EBIT Margin 15.3 15.5 16.5
PAT 16.4 16.5 20.3 and capacity commitments. Additionally, the management indicated
EPS (INR) 86.9 87.4 107.3 improvement in revenue conversion, which was impacted by slow decision-
EPS Gr. (%) 15.8 0.6 22.8
making and cuts in discretionary spends over the last few quarters.
BV/Sh. (INR) 421.2 456.0 499.1
Ratios  We believe that although the commentary was good, it was not a positive
RoE (%) 22.0 20.0 22.6 surprise as it was in line with our expectation. Given the 1Q miss, we trim
RoCE (%) 19.1 17.2 19.4
our FY24/FY25 USD revenue growth estimates by 2.4%/2.1% YoY. Despite a
Payout (%) 60.0 60.2 60.2
Valuations strong pickup expected in FY25, revenue is expected to clock a muted 4.9%
P/E (x) 26.8 26.7 21.7 CAGR over FY23-25 due to a 4.6% YoY CC decline in FY24E.
P/BV (x) 5.5 5.1 4.7
 The 1Q margin performance (in line) was positive given the steep revenue
EV/EBITDA (x) 17.1 16.8 14.0
Div Yield (%) 2.2 2.3 2.8 decline. The management has demonstrated its ability to maintain margins
in a tight range. We see FY24 margins at 15.5% (lower end of the guided
Shareholding pattern (%) rage of 15.25%-16.25%) before improving to 16.5% in FY25. This should
As On Jun-23 Mar-23 Jun-22 result in INR PAT growth of 11.4% over FY23-25E.
Promoter 55.6 55.6 55.7  We lower our FY24-25 EPS estimates by ~2% each on account of a 1QFY24
DII 21.2 21.0 18.2
miss. We believe that the current valuation of 22x FY25E EPS fairly factors in
FII 17.2 17.7 20.5
near-term earnings growth. Our TP of INR2,250 implies 21x FY25E EPS.
Others 6.1 5.7 5.6
Miss on revenue; deal TCV at record high
 In 1QFY24, revenue declined 8.4% YoY CC, INR EBIT fell 4.0% YoY, and INR
PAT declined 1.5% YoY.
 Revenue at USD398m was down 3.5% QoQ in CC USD and was below our
estimate of a 1.2% decline. Direct revenue was down 3.2% QoQ in CC, while
DXC revenue declined 10.5% QoQ in CC.
 New deal TCV at USD707m was up 129% QoQ and 134% YoY.
 Utilization (excl. trainees) improved 100bp to 80%. Headcount declined by
81 in 1QFY24.
 EBIT margin stood at 15.4%, in line with our estimate. PAT came in at
INR3.9b (down 2.3% QoQ) vs. our estimate of INR4.1b.
24 July 2023 28
Key highlights from the management commentary
 MPHL saw record deal closure activity in 1QFY24 at USD707m, 2x the average
run rate. Artificial Intelligence (AI) accounted for about one-third of the deal
wins. The company won seven large deals (five non-BFS deals, four deals above
USD100m TCV).
 The mortgage business is bottoming out and the management is seeing early
signs of a pick-up, with increasing volumes and fresh capacity commitments
from clients. The Mortgage business should add to incremental growth in FY24.
 With the Mortgage business bottoming out, early signs of increasing volumes
and record conversions, the management is confident of a pick-up in growth in
2QFY24, which will continue in the later part of the year.
 The management is confident of maintaining margins in a narrow band of 15.25-
16.25% in all four quarters, with an upward bias in anticipation of strong growth
ahead.
Valuation and view – Maintain Neutral

 The Direct business remained muted in 1QFY24, down 3.2% QoQ CC and below
our expectations. The anticipated recovery in later part of the year was not a
positive surprise as it was in line with our expectation
 Even after factoring in the expected recovery, revenue is expected to decline
4.6% YoY CC in FY24. We believe that the current valuation of 22x FY25E EPS
fairly factors in near-term earnings growth. Hence, we remain Neutral with a TP
of INR2,250 (21x FY25E EPS).
Quarterly performance (INR m)

Y/E March FY23 FY24 FY23 FY24E FY24 Var.
1Q 2Q 3Q 4Q 1Q 2QE 3QE 4QE 1QE (%/bp)
Revenue (USD m) 436 440 429 412 398 405 415 429 1,718 1,647 408 -2.5
QoQ (%) 1.2 1.0 -2.5 -4.1 -3.4 1.7 2.4 3.6 7.8 -4.1 -0.9 -248bp
Revenue (INR m) 34,113 35,198 35,062 33,612 32,520 33,182 33,992 35,205 1,37,985 1,34,899 33,559 -3.1
YoY (%) 26.8 22.7 12.2 2.5 -4.7 -5.7 -3.1 4.7 15.4 -2.2 -1.6 -305bp
GPM (%) 29.8 28.1 28.5 29.2 29.1 29.2 29.6 30.0 28.9 29.5 29.4 -28bp
SGA (%) 12.2 10.5 10.8 11.4 11.1 11.2 11.4 11.4 11.2 11.3 11.6 -53bp
EBITDA 6,001 6,177 6,175 5,987 5,869 5,973 6,186 6,556 24,340 24,584 5,973 -1.7
EBITDA Margin (%) 17.6 17.5 17.6 17.8 18.0 18.0 18.2 18.6 17.6 18.2 17.8 25bp
EBIT 5,205 5,376 5,354 5,152 4,995 5,081 5,273 5,610 21,087 20,959 5,140 -2.8
EBIT Margin (%) 15.3 15.3 15.3 15.3 15.4 15.3 15.5 15.9 15.3 15.5 15.3 4bp
Other income 125 174 156 189 263 265 272 282 644 1,082 268 -2.0
ETR (%) 24.6 24.6 25.2 24.1 24.7 25.0 25.0 25.0 24.6 24.9 25.0 -33bp
PAT 4,020 4,184 4,123 4,053 3,961 4,010 4,159 4,418 16,380 16,548 4,056 -2.3
QoQ (%) 2.5 4.1 -1.5 -1.7 -2.3 1.2 3.7 6.2 0.1
YoY (%) 18.3 17.1 15.3 3.4 -1.5 -4.2 0.9 9.0 13.2 1.0 0.9
EPS (INR) 21.2 22.1 21.8 21.5 20.9 21.2 22.0 23.3 86.9 87.4 21.5 -2.8
E: MOFSL estimates
24 July 2023 29
23 July 2023
Persistent Systems
Estimate change CMP: INR4,750 TP: INR4,600 (-3%) Neutral
TP change
Rating change Moderation in near-term growth to dampen
Motilal Oswal values your support in the valuation premium
Research, Sales, Corporate Access and Expect margins to remain range bound in FY24
Trading team. We request your ballot.  Persistent Systems (PSYS) delivered 1QFY24 revenue of USD282.9m,
+2.9% QoQ in CC/+3.0% QoQ, in line with our estimates. Growth was led
by IP business (up 8.0% QoQ), while Service business grew 2.7% QoQ.
EBITDA margin was at 18.2% (down 30bp QoQ), a tad below our estimate
of 18.4%, due to wage hikes and higher Visa cost (~40bp impact). PSYS
Bloomberg PSYS IN
added 241 employees in 1QFY24, while attrition moderated sharply
(15.5%, down 430bp QoQ).
M.Cap.(INRb)/(USDb) 365.4 / 4.5
52-Week Range (INR) 5267 / 3085  PSYS’ 1QFY24 revenue performance was positive, especially in the
1, 6, 12 Rel. Per (%) -8/0/14 environment when execution remains a challenge. Despite BFS industry
12M Avg Val (INR M) 1598 headwinds, it was up 6.2% QoQ, although management indicated
Free float (%) 68.7 softness in the near-term. Top accounts posted healthy growth with top
5/top 10 accounts increasing 13%/8% YoY in 1QFY24.
Financials & Valuations (INR b)  However, the total deal TCV was disappointing and has declined for the
Y/E Mar 2023 2024E 2025E second consecutive quarter at USD380m (-10% QoQ vs. -4% QoQ in
Sales 83.5 97.4 112.4
EBIT Margin (%) 14.9 15.5 16.1
4QFY23) because of deal pushbacks and deferrals to the next quarter.
Adj. PAT 9.5 11.7 14.2 Management indicated that PSYS is undergoing a stressed environment,
Adj. EPS (INR) 124.4 152.2 184.0 where enterprise clients are maintaining caution in the near term.
PAT 9.2 11.2 14.2
EPS (INR) 120.5 145.8 184.0
However, there was no deal cancellation or material ramp down in
EPS Gr. (%) 36.2 22.3 20.9 projects witnessed in 1QFY24. PSYS is confident of driving 2-4% QoQ
BV/Sh. (INR) 530.5 623.5 746.2 growth over the next few quarters (though below its long-term
Ratios
aspiration of 3-5% QoQ growth). Given its in-line performance, we are
RoE (%) 25.9 27.1 27.5
RoCE (%) 21.6 22.7 22.9 broadly keeping our estimates unchanged, and expect the USD revenue
Payout (%) 35.0 35.0 35.0 to grow at a CAGR of 15% YoY over FY23-FY25.
Valuations  Despite the annualized wage hikes and higher Visa cost, PSYS was able to
P/E (x) 38.2 31.2 25.8
P/BV (x) 9.0 7.6 6.4 absorb the incremental drag on margins. PSYS further reiterated its
EV/EBITDA (x) 23.0 18.8 15.6 aspiration of 200-300bp EBITDA margin improvement over next few
Div Yield (%) 0.9 1.1 1.4 years, although FY24 margin should remain stable vs. last year. We
expect EBIT margin at 15.5%/16.1% in FY24/FY25, which will lead to
FY23-25E PAT CAGR of 22%.
Promoter
 The stock is currently trading at 26x FY25E EPS – at the upper end of our
31.3 31.3 31.3
DII 27.6 26.4 26.8
IT services coverage – leaving little room for further upside despite the
FII 22.6 22.6 23.2 strong growth delivery. We believe PSYS’ valuation appropriately factors
Others 18.5 19.8 18.8 in the favorable growth along with the adverse near-term demand
FII Includes depository receipts environment. We value the stock at 25x FY25E EPS. Reiterate Neutral as
we see limited upside from current levels.
In-line performance
 PSYS’ USD revenue stood at 282.9m in 1QFY24, +2.9% in CC, in line with
our estimates. Reported USD growth was at 3.0% QoQ.
 Growth was fueled by BFSI (+6.2% QoQ) and Hi-Tech (+3.2% QoQ) while
healthcare declined 2.7% QoQ.
24 July 2023 30
 Region wise, Europe declined 3% QoQ following 19% QoQ growth in 4QFY23,
while North America was up 4.7% QoQ in 1QFY24.
 TCV moderated to USD380m in 1QFY24, down 10% QoQ/up 4% YoY. Net new
TCV moderated to USD237m vs. a record high of USD250m in 4QFY23. ACV
was at USD272m vs. USD310m in 4QFY23.
 Adj. PAT at INR2.7b (+10% QoQ) was in line with our estimate. Reported PAT
was at INR2.3b due to a one-time cost of INR486m incurred on employee
rewards to celebrate the USD1b revenue mark in FY23.
Key highlights from the management commentary
 Management indicted that, the company is undergoing a stressed environment.
As a result, 1QFY24 marked a few instances of deal pushouts and deferrals, as
enterprise clients are maintaining a cautious approach in the near-term.
 Management expects to deliver top-quartile growth on the face of macro
uncertainties. However, it remains watchful of a slowdown in the key
economies, while maintaining a close proximity to the customers, who are cost-
focused and to drive efficiency.
 BFSI is expected to remain soft despite the healthy growth reported this
quarter, while healthcare and Hi-Tech are likely to continue their growth
momentum. Within healthcare vertical, the company won a five-year large deal
of USD50m.
 Management expects the near-term slowdown to continue for 2-3 quarters
more before the deal signing activities revert to the earlier level.
Positives already priced in; reiterate Neutral
 The growth momentum remained strong, which was evident from the Services
segment’s healthy and industry-leading performance over the past few quarters.
We expect a higher emphasis on annuity revenue from the management, which
will address the inconsistency issue to some extent.
 The company’s: 1) strong performance in recent years, 2) healthy growth in top
accounts, and 3) robust deal pipeline, are likely to sustain the growth.
 The stock is currently trading at 26x FY25E EPS. Our TP is based on 25x FY25E
EPS. We reiterate our Neutral rating as we believe the positives have already
been captured and the stock offers limited upside from current levels.
Quarterly performance (IFRS) (INR m)
Y/E March FY23 FY24 FY23 FY24E FY24E Var.
(Consolidated) 1Q 2Q 3Q 4Q 1Q 2QE 3QE 4QE 1QE (%/bp)
Revenue (USD m) 241.5 255.6 264.4 274.6 282.9 292.9 301.4 311.0 1,036 1,188 284.4 -0.5
QoQ (%) 11.1 5.8 3.4 3.9 3.0 3.5 2.9 3.2 35.3 14.7 3.6 -54bp
Revenue (INR m) 18,781 20,486 21,694 22,545 23,212 24,014 24,719 25,503 83,506 97,448 23,377 -0.7
QoQ (%) 14.7 9.1 5.9 3.9 3.0 3.5 2.9 3.2 3.7 -73bp
YoY (%) 52.7 51.6 45.4 37.6 23.6 17.2 13.9 13.1 46.2 16.7 24.5 -88bp
GPM (%) 33.8 33.5 33.8 33.9 34.2 34.0 34.3 34.7 33.8 34.3 33.8 38bp
SGA (%) 16.1 15.5 15.3 15.5 16.0 15.5 15.5 15.5 15.6 15.6 15.4 56bp
EBITDA 3,333 3,680 4,016 4,163 4,229 4,443 4,647 4,897 15,191 18,216 4,301 -1.7
EBITDA Margin (%) 17.7 18.0 18.5 18.5 18.2 18.5 18.8 19.2 18.2 18.7 18.4 -18bp
EBIT 2,688 2,987 3,332 3,466 3,466 3,698 3,881 4,106 12,472 15,151 3,577 -3.1
EBIT Margin (%) 14.3 14.6 15.4 15.4 14.9 15.4 15.7 16.1 14.9 15.5 15.3 -37bp
Other income 131 -31 192 -60 90 96 99 102 233 387 187 -51.6
ETR (%) 24.9 25.6 24.1 26.2 22.0 25.5 25.5 25.5 25.2 24.7 25.5
Adj. PAT 2,116 2,200 2,676 2,515 2,774 2,827 2,965 3,135 9,507 11,700 2,804 -1.1
QoQ (%) 5.3 4.0 21.6 -6.0 10.3 1.9 4.9 5.7 11.5 -120bp
YoY (%) 33.3 36.0 51.7 25.1 31.1 28.5 10.8 24.6 36.2 23.1 32.5 -142bp
Reported EPS (INR) 27.7 28.8 31.1 32.9 29.8 36.8 38.6 40.8 120.5 145.8 36.7 -18.9
24 July 2023 31
22 July 2023
1QFY24 Results Update | Sector: Cement
Dalmia Bharat
TP change
Rating change
Disappointing performance; higher opex drags EBITDA/t
External approvals delay progression of JPA deal; expected to close by
Asiamoney Brokers Poll 2023 for India end-FY24
Research, Sales, Corporate Access and  DALBHARA’s 1QFY24 EBITDA came in at INR6.1b vs. estimated INR7.2b and
EBITDA/t stood at INR875 vs. estimated INR1,001 due to higher opex. Adj.
PAT (after MI) came in at INR1.3b vs. estimated INR2.3b.
 The acquisition deal for the cement assets of JP group is experiencing delays
due to pending external approvals. However, the deal, with the exception of
JP super Dalla clinker plant (currently under arbitration between UTCEM and
Bloomberg DALBHARA IN
JP group), will likely be completed by the end of FY24 (earlier guidance of
M.Cap.(INRb)/(USDb) 360.2 / 4.4 1QFY24). The company has initiated a tolling arrangement with certain
52-Week Range (INR) 2289 / 1478 plants of JP Group located in central India.
1, 6, 12 Rel. Per (%) -20/-5/6  We cut our EBITDA estimate by 5% for FY24/FY25 (each), while PAT estimate
12M Avg Val (INR M) 538 is being reduced by 15%/11% for FY24/25, due to higher depreciation. We
Financial Snapshot (INR b) have yet not factored JP asset acquisition into our assumptions. We reiterate
Y/E MARCH FY23 FY24E FY25E our BUY rating with a revised TP of INR2,400 (vs. INR2,550 earlier).
Sales 135.4 147.8 166.0
EBITDA 23.2 28.2 34.4
Sales volume was up 12% YoY; EBITDA/t down 7% YoY/8% QoQ
Adj. PAT 6.9 8.1 11.3
EBITDA Margin (%) 17.1 19.1 20.7  Consolidated revenue/EBITDA/adj. PAT stood at INR36b/INR6.1b/INR1.3b
Adj. EPS (INR) 36.5 43.3 60.4 (up 10%/up 4%/down 33% YoY, and 3%/15%/45% below our estimates) in
EPS Gr. (%) -16.5 18.6 39.5
1QFY24. Sales volumes at 7mt grew 12% YoY (down 3% vs. our estimate).
BV/Sh. (INR) 833.6 863.9 911.3
Ratios Realization at INR5,199/t declined 2% YoY/QoQ (down 1% vs. our estimate).
Net D:E 0.0 0.0 0.0  Opex/t was down by a mere 1% YoY as decline in variable cost (down 5%
RoE (%) 4.3 5.1 6.8
YoY/4% QoQ) was offset by higher freight costs (up 6% YoY/4% QoQ due to
RoCE (%) 4.2 5.4 6.8
Payout (%) 24.6 30.0 21.5 levy of busy season surcharge by railways and some changes in inter-
Valuations regional movement). Absolute employee expense was up 12% YoY/16%
P/E (x) 52.6 44.3 31.8
QoQ, due to annual increments and new capacities.
P/BV (x) 2.3 2.2 2.1
EV/EBITDA(x) 15.0 12.7 10.2  OPM was down 90bp YoY to 16.8% and EBITDA/t declined 7% YoY/8% QoQ,
EV/ton (USD) 110 94 92 due to higher opex and lower realization. Depreciation increased 28%
Div. Yield (%) 0.5 0.7 0.7
YoY/19% QoQ due to INR570m impact of accelerated depreciation on a few
FCF Yield (%) -1.2 0.6 0.9
components. There will be a further impact of INR540m in 2Q/3QFY24.
As On Jun-23 Mar-23 Jun-22 Highlights from the management commentary
Promoter 55.9 55.9 55.9  Fuel consumption cost stood at INR1.98/Kcal vs. INR2.06/Kcal in 4QFY23.
DII 8.9 8.7 7.3 Fuel cost/t is likely to decline USD20/t in 2Q and further USD5-10/t after
FII 13.9 12.8 12.6 that.
Others 21.4 22.6 24.2  The company lost market share in the East region as it tried to improve
prices, which in turn adversely impacted its clinker conversion ratio (1.71x
vs. 1.74x in 4QFY23). The lost market share in this market will be recouped
in FY24.
 Capex stood at INR9.1b in 1QFY24. The total capex is estimated to be
INR63b in FY24 (includes INR33-35b for JP cement assets acquisition). Gross
debt stood at INR43.9b and exit-FY24 debt is estimated to be INR65-70b.
24 July 2023 32
View and valuations
 The stock trades at 12.7x/10.2x FY24E/FY25E EV/EBITDA. It has traded at an
average EV/EBITDA of 10x/9.5x in the last 5/10 years. Capacity expansion
without leveraging the balance sheet and divestment of non-core assets should
help rerating in valuation multiples.
 We value DALBHARA at 13x FY25E EV/EBITDA to arrive at a revised TP of
INR2,400 (INR2,550 earlier). We reiterate our BUY rating on the stock.
Quarterly Performance (Consolidated) (INR b)

Y/E March FY23 FY24 FY23 FY24E FY24 Var
1Q 2Q 3Q 4Q 1Q 2QE 3QE 4QE 1QE (%)
Net Sales 33.0 29.7 33.6 39.1 36.2 33.0 35.3 43.2 135.4 147.8 37.5 -3
YoY Change (%) 27.4 15.1 22.7 15.7 9.8 11.1 5.3 10.5 20.0 9.2 13.6
Total Expenditure 27.2 25.9 27.1 32.1 30.1 27.3 28.6 33.6 112.2 119.6 30.3 -1
EBITDA 5.9 3.8 6.4 7.1 6.1 5.7 6.8 9.7 23.2 28.2 7.2 -15
Margins (%) 17.7 12.8 19.2 18.1 16.8 17.2 19.2 22.4 17.1 19.1 19.2 -232bp
Depreciation 3.1 3.3 3.3 3.4 4.0 4.0 4.0 3.5 13.1 15.5 3.5 15
Interest 0.5 0.6 0.7 0.6 0.8 0.8 0.8 0.7 2.3 3.2 0.7 22
Other Income 0.2 0.4 0.4 0.4 0.6 0.4 0.4 0.6 1.4 1.9 0.3 104
PBT before EO Expense 2.5 0.3 2.9 3.5 1.9 1.3 2.3 6.1 9.2 11.5 3.3 -44
Extra-Ord expense 0.0 0.0 0.0 -3.9 0.0 0.0 0.0 0.0 -3.9 0.0 0.0
PBT after EO Expense 2.5 0.3 2.9 7.3 1.9 1.3 2.3 6.1 13.0 11.5 3.3 -44
Tax 0.6 -0.2 0.7 1.3 0.4 0.3 0.6 1.6 2.4 2.9 0.9
Prior period tax adjustment 0.0 -0.3 0.0 0.0 0.0 0.0 0.0 0.0 -0.3 0.0 0.0
Rate (%) 25.5 23.3 25.5 36.5 22.2 25.6 25.6 26.7 29.6 25.6 25.6
Reported PAT (pre minority) 1.9 0.5 2.1 6.1 1.4 0.9 1.7 4.4 10.6 8.5 2.5 -42
Minority + associate -0.1 -0.1 0.1 0.2 0.1 0.1 0.1 0.1 0.2 0.4 0.1
PAT Adj for EO items 2.0 0.3 2.0 2.6 1.3 0.9 1.6 4.4 6.9 8.1 2.4 -45
YoY Change (%) -30.4 -87.4 286.5 -1.9 -33.3 218.1 -22.0 67.1 -16.5 18.6 20.7 -3
Per ton analysis (blended) INR/t
Sales Dispatches (m ton) 6.2 5.8 6.3 7.4 7.0 6.4 6.9 8.3 25.7 28.7 7.2 -3
YoY Change (%) 26.8 13.7 10.5 12.1 12.4 10.6 9.9 12.8 15.3 11.5 15.8
Net realization 5,326 5,122 5,325 5,286 5,199 5,149 5,099 5,180 5,268 5,158 5,226 -1
YoY Change (%) 0.5 1.2 11.0 3.2 -2.4 0.5 -4.2 -2.0 4.1 -2.1 -1.9
RM Cost 677 760 587 1,014 812 880 871 841 771 850 850 -4
Employee Expenses 319 326 306 258 319 311 298 236 300 288 282 13
Power, Oil & Fuel 1,535 1,538 1,530 1,177 1,294 1,144 1,044 1,106 1,432 1,145 1,277 1
Freight and Handling Outward 1,100 1,028 1,114 1,111 1,161 1,101 1,130 1,140 1,090 1,134 1,105 5
Other Expenses 748 817 765 772 739 827 780 697 775 756 712 4
Total Expenses 4,381 4,469 4,303 4,331 4,324 4,263 4,123 4,020 4,367 4,173 4,226 2
EBITDA 945 653 1,022 955 875 886 977 1,160 901 985 1,001 -13
Source: Company, MOFSL Estimates
24 July 2023 33
23 July 2023
CreditAccess Grameen
TP change
Margin expansion and opex efficiencies led to a strong quarter
Rating change
Earnings performance typical of the leader within the NBFC-MFI sector
 CREDAG has split the role of MD&CEO and has appointed Mr. Ganesh
India Research, Sales, Corporate Narayan (earlier Deputy CEO) as the CEO for a term of five years, while Mr.
Access and Trading team. Uday Kumar Hebbar will continue as the Managing Director of the company.
 CREDAG delivered a robust operational performance with a 1QFY24 PAT of
~INR3.5b, which grew ~150% YoY. NII grew 58% YoY to ~INR7.2b, driven by a
~80bp QoQ expansion in reported NIM to 13%.
 PPoP grew 88% YoY to ~INR5.4b with scale benefits and opex efficiencies
Bloomberg CREDAG IN
Equity Shares (m) 159 resulting in cost-income ratio (CIR) of ~31% (PY: ~40%). Management guided
M.Cap.(INRb)/(USDb) 208.6 / 2.5 that it will re-evaluate its NIM and CIR guidance after one-two quarters. We
52-Week Range (INR) 1398 / 834 model NIM (calc.) and CIR of 14.3% and 32.4%, respectively, in FY24E.
1, 6, 12 Rel. Per (%) -5/34/5  The company acquired 328K new customers in 1QFY24, with ~47% of them
originating from outside its top three states. It plans to further deepen its
relatively newer states to drive overall growth and strengthen its resilience.
Financials & Valuations (INR b)  We estimate an AUM/PAT CAGR of 24%/44% over FY23-FY25, leading to a
NII 21.1 30.9 38.4
RoA/RoE of 5.6%/23% in FY25. We increase our FY24/25 EPS estimates by
Total Income 23.4 33.6 41.4 19%/18% to factor in higher loan growth and NIM.
PPoP 15.1 22.7 28.1  Despite cyclical tailwinds, we acknowledge that the upcoming state elections
PAT 8.3 14.2 17.1 later this year and general elections next year are near-term risks for the
EPS (INR) 52 90 108
EPS Gr. (%) 127 72 20
sector. While loan waivers in the lead-up to the elections cannot be
BV (INR) 321 411 519 completely ruled out, we strongly believe that the magnitude and frequency
Ratios (%) of loans waivers (if any) will be much lower than in the past.
NIM 12.5 14.3 14.4  While the current valuation of 2.5x FY25E P/BV is not inexpensive, CREDAG
C/I ratio 35.6 32.4 32.1
will continue to deliver robust return ratios, aided by a strong underlying
Credit cost 2.3 1.6 1.9
RoA 4.2 5.7 5.6 business model. We reiterate our BUY rating with a revised TP of INR1,660
RoE 18.2 24.5 23.2 (based on unchanged target multiple of 3.2x FY25E P/BV).
Valuations
P/E (x) 25.2 14.6 12.2 Highlights from the management commentary
P/BV (x) 4.1 3.2 2.5  ~16% of the existing GLP constitutes the pre-Apr’22 portfolio. On a blended
basis, ~25-30bp of yield increase will come through once this remaining
Please refer our thematic
~16% of the pre MFI-regulations portfolio gets re-priced.
report on MFI:
Unlocking growth; empowering lives!  CREDAG stated that it does not foresee any additional promoter stake sales
and that it has no plans to raise equity capital over the next two years.
Valuation and view

 CREDAG is primed to dominate the segment by: a) providing the lowest-cost
organized financing, b) improving operational efficiency through continuous
technology enhancement, and c) integrating risk management in every
process to drive superior asset quality and lower credit costs.
 CREDAG’s robust execution has been vindicated by its resilience across
various credit cycles and external disturbances. With strong capital position
(Tier-1 of ~23.5%), the company can very well navigate any potential
disruptions in the future and also capitalize on the growth opportunity over
the medium term. We reiterate our BUY rating on the stock with a TP of
INR1,660 (based on 3.2x FY25E P/BV).
24 July 2023 34
CREDAG: Quarterly Performance (INR M)
Y/E March FY23 FY24E
FY23 FY24E
1Q 2Q 3Q 4Q 1QA 2QE 3QE 4QE
Interest Income 7,363 7,713 8,548 9,648 11,052 11,548 12,229 13,147 33,271 47,977
Interest Expenses 2,798 2,732 3,142 3,456 3,849 4,080 4,386 4,773 12,129 17,088
Net Interest Income 4,565 4,981 5,406 6,192 7,203 7,468 7,843 8,374 21,143 30,889
YoY Growth (%) 35.1 35.1 31.2 34.2 57.8 49.9 45.1 35.3 33.5 46.1
Other Income 233 434 540 1,015 656 500 573 1,128 2,237 2,736
Total Income 4,798 5,415 5,946 7,206 7,858 7,968 8,416 9,502 23,379 33,625
YoY Growth (%) 30.4 38.9 32.0 29.3 63.8 47.2 41.6 31.9 32.4 43.8
Operating Expenses 1,909 2,067 2,160 2,177 2,420 2,532 2,792 3,182 8,315 10,911
Operating Profit 2,889 3,348 3,785 5,029 5,438 5,436 5,624 6,320 15,064 22,714
YoY Growth (%) 33.5 53.2 38.4 36.4 88.3 62.4 48.6 25.7 39.8 50.8
Provisions & Loan Losses 1,009 1,054 894 1,053 764 779 818 1,243 4,010 3,604
Profit before Tax 1,880 2,294 2,891 3,976 4,674 4,657 4,806 5,077 11,054 19,110
Tax Provisions 493 529 733 1,010 1,189 1,183 1,221 1,280 2,794 4,873
Net Profit 1,387 1,766 2,158 2,966 3,485 3,474 3,585 3,797 8,261 14,237
YoY Growth (%) 583.6 196.5 84.5 85.3 151.3 96.8 66.1 28.0 131.5 72.3
AUM Growth (%) 23.3 24.0 21.9 26.7 39.7 37.0 35.5 25.6 29.0 26.2
NIM (%) 11.3 12.4 12.6 12.8 13.4 13.4 13.4 13.3 12.5 14.3
Cost to Income Ratio (%) 39.8 38.2 36.3 30.2 30.8 31.8 33.2 33.5 35.6 32.4
Tax Rate (%) 26.2 23.0 25.3 25.4 25.4 25.4 25.4 25.2 25.3 25.5
Key Parameters (%)
Yield on loans 18.4 19.1 19.6 19.7 20.7
Cost of funds 9.1 9.2 9.6 9.5 9.6
Spread 9.3 9.9 10.0 10.2 11.1
NIM 11.1 12.0 11.9 12.2 13.0
Credit cost 2.5 2.6 2.1 2.2 1.4
Cost to Income Ratio (%) 39.8 38.2 36.3 30.2 30.8
Tax Rate (%) 26.2 23.0 25.3 25.4 25.4
Performance ratios (%)
GLP/Branch (INR m) 93 98 103 118 119
GLP/Loan Officer (INR m) 14.8 15.3 15.0 18.3 18.1
Borrowers/Branch 2,195 2,255 2,281 2,387 2,422
Borrowers/Loan Officer 349 351 333 371 367
Balance Sheet Parameters
Gross loan portfolio (INR B) 156.2 165.4 177.9 210.3 218.1 226.7 241.1 264.2
Change YoY (%) 23.3 24.0 21.9 26.7 39.7 37.0 35.5 25.6
Disbursements (INR B) 24.2 43.8 48.5 71.7 47.7 51.0 59.7 71.0
Change YoY (%) 126.9 12.5 2.7 23.8 97.5 16.7 23.2 -1.0
Borrowings (INR B) 118.8 123.1 135.7 164.1 168.2 180.8 193.0 206.8
Change YoY (%) 21.5 22.4 18.5 27.0 41.6 46.9 42.2 26.0
Borrowings/Loans (%) 84.0 81.0 82.8 86.2 84.9 87.6 87.6 86.2
Debt/Equity (x) 2.9 2.8 3.0 3.2 3.1 3.1 3.1 3.2
Asset Quality (%)
GS 3 (INR M) 4,584 3,400 2,887 2,368 1,817
G3 % 3.1 2.2 1.7 1.2 0.9
NS 3 (INR M) 1,667 1,187 985 812 552
NS3 % 1.2 0.8 0.6 0.4 0.3
PCR (%) 63.6 65.1 65.9 65.7 69.6
ECL (%) 3.0 2.3 1.9 0.0 1.6
Return Ratios - YTD (%)
ROA (Rep) 3.1 4.0 4.6 5.5 5.8
ROE (Rep) 13.4 16.1 18.8 24.0 26.4
E: MOFSL Estimates
24 July 2023 35
23 July 2023
1QFY24 Results Update | Sector: Specialty Chemicals
Atul
Estimate change
TP change
CMP: INR7,013 TP: INR6,200 (-12% ) Neutral
Rating change Weak performance continues due to overall lower demand
Motilal Oswal values your support in  Atul (ATLP) reported in-line revenue with a 14% QoQ decline in the Life
India Research, Sales, Corporate Access
Science Chemicals segment and a 5% QoQ increase in the Performance &
and Trading team. Other Chemicals segment in 1QFY24. Gross margin came in at 46.5% (-
We request your ballot. 200bp YoY), while EBITDAM expanded 290bp QoQ to 15.4% during the
quarter.
 The Life Science Chemicals segment’s contribution to EBIT dipped to 37%
in 1QFY24 (from 84% in 4QFY23), whereas the contribution of
Bloomberg ATLP IN Performance & Other Chemicals to overall EBIT jumped to 62% in 1Q (from
Equity Shares (m) 30 15% in 4QFY23).
 Management highlighted that revenue remained weak due to lower
52-Week Range (INR) 9796 / 6469
1, 6, 12 Rel. Per (%) -5/-15/-33 realization and weaker demand amid geopolitical headwinds. Profitability
12M Avg Val (INR M) 320 was also hit primarily by higher fixed costs coupled with declining sales
Free float (%) 54.9
volumes that resulted in fixed costs being inadequately absorbed during
the quarter.
Financials and Valuations (INR b)
 The Crop Protection business suffered due to subdued demand and lower
Sales 54.3 55.6 61.0 realizations that resulted in weak performance of the Life Science
EBITDA 7.7 8.1 9.4 Chemicals segment. The Performance and Other Chemicals segment was
PAT 5.0 5.1 6.1 hit (down 17% YoY) by higher inventory and lower capacity utilization at
EPS (INR) 169.0 172.5 206.7
EPS Gr. (%) -15.0 2.1 19.8 customers’ end, which resulted in lower sales for the company during the
BV/Sh.(INR) 1,581.9 1,730.7 1,908.6 quarter.
Ratios  We expect revenue/ EBITDA/ PAT of 6%/ 1%/ 1% during FY23-25. We
Net D:E -0.0 0.0 0.0
RoE (%) 11.0 10.4 11.4 largely maintain our estimates. The stock is trading at 33.9x FY25E EPS of
RoCE (%) 10.5 10.0 10.8 INR206.7 and 22x FY25E EV/EBITDA. We value the stock at 30x FY25E EPS
Payout (%) 14.6 15.0 15.0
to arrive at our TP of INR6,200. On a one-year forward basis, ATLP trades at
Valuations
P/E (x) 41.4 40.6 33.9 36.5x. We maintain our Neutral rating on the stock.
P/BV (x) 4.4 4.0 3.7
EV/EBITDA (x) 26.7 25.6 22.0
Beat on EBITDA led by lower opex; PAT in line due to lower-than-
Div. Yield (%) 0.4 0.4 0.4
FCF Yield (%) -0.8 0.0 0.1 expected other income
 ATLP’s revenue was in line with our estimate at INR11.8b (-20% YoY, -1%
Shareholding pattern (%) QoQ).
As On Jun-23 Mar-23 Jun-22  Performance & Other Chemicals’ revenue was at INR8.7b (-17% YoY, +5%
Promoter 45.1 45.1 45.1 QoQ).
DII 26.2 25.2 23.4
 Life Science Chemicals’ revenue was at INR3.5b (-28% YoY, -14% QoQ) in
FII 7.6 8.2 8.8
1QFY24.
Others 21.2 21.6 22.8
FII Includes depository receipts  Gross margin stood at 46.5% (-200bp YoY), while EBITDA margin came in at
15.4% (-40bp YoY) during the quarter.
 EBIT margin contracted sharply for Life Science Chemicals segment in
1QFY24.
 Life Science Chemicals’ margin was at 14.9% (-730bp QoQ); while EBIT
stood at INR522m.
 Performance Chemicals’ margin came in at 10.2% (+830bp QoQ); EBIT was
at INR890m in 1QFY24.
24 July 2023 36
 EBITDA came in at INR1.8b (est. of INR1.5b; -22% YoY/+22% QoQ) – consensus
beat by 16%.
 PAT stood at INR1b (est. of INR986m, -38% YoY, +11% QoQ), resulting in an EPS
of INR34.6 – consensus beat by 17%.
 Contributions from the subsidiaries/JVs remained positive (PAT at INR55m in
1QFY24 vs. INR38m/INR49m in 4QFY23/1QFY23).
Valuation and view – Reiterate Neutral

 ATLP is implementing projects at a total investment of ~INR14b in Atul (parent
company) and its various group entities. Management expects a sales potential
of INR90b from this capex.
 We largely maintain our estimates. We expect return ratios of 10-11% going
forward. The stock is trading at 33.9x FY25E EPS of INR206.7 and 22x FY25E
EV/EBITDA. We value the stock at 30x FY25E EPS to arrive at our TP of INR6,200.
On a one-year forward basis, ATLP trades at 36.5x. We maintain our Neutral
rating on the stock.
Consolidated - Quarterly Snapshot (INR m)

1Q 2Q 3Q 4Q 1Q 2QE 3QE 4QE 1QE (%)
Gross Sales 14,769 14,873 12,683 11,952 11,820 13,194 14,583 15,957 54,275 55,554 11,805 0%
YoY Change (%) 36.7 19.0 -8.1 -12.8 -20.0 -11.3 15.0 33.5 6.8 2.4 -20.1
Gross Margin (%) 48.5% 47.1% 47.2% 45.8% 46.5% 47.5% 48.5% 49.1% 47.2% 48.0% 48.0% -1.5%
EBITDA 2,330 2,203 1,723 1,494 1,823 1,961 2,097 2,232 7,749 8,113 1,545 18%
Margin (%) 15.8 14.8 13.6 12.5 15.4 14.9 14.4 14.0 14.3 14.6 13.1 2.3
Depreciation 473 491 504 511 519 532 542 555 1,978 2,148 524
Interest 16 19 22 22 20 19 21 20 79 80 18
Other Income 359 319 229 242 82 261 280 349 1,149 972 303
PBT before EO expense 2,200 2,011 1,425 1,203 1,365 1,672 1,813 2,007 6,840 6,857 1,306 5%
PBT 2,200 2,011 1,425 1,203 1,365 1,672 1,813 2,007 6,840 6,857 1,306 5%
Tax 577 544 394 297 364 384 494 510 1,812 1,726 329
Rate (%) 26.2 27.0 27.6 24.7 26.7 23.0 27.2 25.4 26.5 25.2 25.2
Minority Interest and Profit/Loss of Asso. Cos. 11 13 -3 16 20 10 10 0 38 38 10
Reported PAT 1,635 1,481 1,029 922 1,021 1,297 1,329 1,497 5,066 5,169 986 3%
YoY change (%) 1.4 3.7 -32.1 -30.6 -37.6 -12.4 29.2 62.3 -15.2 2.1 -39.7
Margin (%) 11.1 10.0 8.1 7.7 8.6 9.8 9.1 9.4 9.2 9.2 8.4 0.3
Segmental Revenue (INR m)
Life Science Chemicals 4,847 5,742 4,917 4,086 3,502 4,785 5,288 6,571 19,592 20,147 4,281 -18%
Performance & Other chemicals 10,570 9,913 8,280 8,299 8,745 8,980 9,925 10,160 37,062 37,810 8,035 9%
Others 113 94 159 130 117 124 137 144 496 521 111 6%
24 July 2023 37
22 July 2023
360ONE WAM
Estimate change CMP: INR520 TP: INR620 (+19%) Buy
TP change
Rating change Strong AUM growth; higher opex dents margins
 The company’s total revenues for the quarter grew 8% YoY to INR 4b. This
the Asiamoney Brokers Poll 2023 for is in line with our estimates.
India Research, Sales, Corporate  Total opex grew 25% YoY and came in at ~INR2b, 12% higher than our
estimates. Increased employee cost and ‘other expenses’ led to higher
opex for the quarter.
 Employee costs increased 22% YoY. The total ESOP cost estimated ~INR 1-
1.15b will be amortized over a period of seven to eight years. The
cost/income ratio increased sharply by ~700bp YoY to 51.6% (est. 46%).
Bloomberg 360ONE IN  PBT for the quarter came in line with our estimates at ~INR2.3b (as ‘other
Equity Shares (m) 356 income’ came in higher than expectations). However, PAT grew 18% YoY
M.Cap.(INRb)/(USDb) 184.1 / 2.2
to INR1.9b. Reduction in overall taxes led to a PAT beat of ~6%.
1, 6, 12 Rel. Per (%) 12/-2/10  Total AUM is up 22% YoY to INR 3.83t, with continued focus on scaling up
12M Avg Val (INR M) 186 ARR assets. ARR AUM was up 33% YoY at INR1.9t.
 The Board has approved an interim dividend of INR4.
Financials & Valuations (INR b)  We broadly maintained our estimates for FY24/FY25. We retain our BUY
Y/E March 2023 2024E 2025E rating with a one-year TP of INR620 (based on 25x Mar’25E EPS).
Net Revenues 15.6 17.1 19.5
Opex 7.2 7.9 8.6
Core PBT 8.5 9.1 10.9 Gross AUM grew 22% YoY to INR3.8t; shift in mix favors ARR assets
PAT 6.6 7.4 8.7  On a closing AUM basis, ARR assets grew 33% YoY to INR1.9t. TBR assets
EPS 18.5 20.7 24.5
EPS Grw (%) 13.5 12.1 18.3
grew 12% YoY to INR1.9t.
BV 87.2 91.3 96.2  AUM for 360ONE plus (IIFL ONE) grew 68% YoY and 28% QoQ to INR
Ratios 543b. The increase is attributed to a sharp sequential increase of 85% in
PBT margin (bp) 31.6 30.7 31.7
advisory AUM (from INR 143b to INR 263b in 1QFY24). However,
PAT margin (bp) 24.5 24.8 25.3
RoE (%) 21.6 23.2 26.1 discretionary PMS assets declined 7% YoY to INR 100b.
Div. Payout (%) 67.2 80.0 80.0
Valuations
Marginal fall in overall yields
P/E (x) 28.1 25.1 21.2
P/BV (x) 6.0 5.7 5.4  Overall retentions on net revenues stood at 45bp vs. 46bp/52bp in
Div. Yield (%) 2.4 3.2 3.8 4QFY23/1QFY23. ARR retentions stood at 72bp vs. 67bp/84bp in
4QFY23/1QFY23.
Shareholding pattern (%)  Retentions in IIFL-ONE declined QoQ to 22bp as the share of advisory
assets increased. NIM in the loan book improved 50bp QoQ to 6%. AMC
Promoter 22.0 22.0 23.1
retentions improved 4bp QoQ as retentions on AIF assets improved.
DII 54.3 31.9 3.6
FII 12.8 31.5 22.1
Others 11.0 14.6 51.2 Higher operating cost led to sharp increase in cost to income ratio
FII Includes depository receipts  Total opex grew 25% YoY to ~INR2b, 12% higher than our estimates.
Increased employee cost and ‘other expenses’ led to higher opex for the
quarter.
 Employee costs increased 22% YoY. The total ESOP cost estimated at ~INR
1-1.15b will be amortized over a period of seven to eight years. The
cost/income ratio increased sharply by ~700bp YoY to 51.6% (est. 46%).
 Admin and other expenses increased 35% YoY to INR580m.
24 July 2023 38
 360ONE believes that it has a significant market share in the INR500b revenue
opportunity in the wealth management business.
 During the quarter, 70% of inflows were driven by promoter activity (IPOs and
OFS), while the remaining portion consisted of transfers from other wealth and
new AUM. A large portion of promoter-driven flows is currently not generating
yield; however, there is a positive outlook for improvement in the next couple of
quarters. It is estimated that about INR35b in NDPMS and INR50-55b should
convert into fee-paying in the second half of FY24
 In the HNI segment, there are about 150k-160k families. 360ONE is already in
touch with about 3,000 families. While it has had a slow start, the management
expects to scale up and capture a market share of 7-8% over the coming years.
Other highlights
 ‘Other income’ came in at INR290m vs. our estimate of INR65m.
 The NBFC loan book grew 18% YoY to INR 50b (vs. INR43b in 1QFY23).
Decent performance in 1QFY24; reiterate BUY
Over the past decade, 360ONE has evolved into one of the best wealth management
franchises in India. It has become one of the largest alternate asset managers with
unique product offerings. With IIFL-ONE, the company is looking to change the way
wealth management services are offered in India by focusing on recurring revenue
rather than the traditional approach of transaction-based revenue. In 1QFY24, inflows
continued to show momentum and were well supported by MTM gains as markets
reach an all-time high. We broadly maintained our estimates for FY24/FY25. We
retain our BUY rating with a revised TP of INR620 (based on 25x Mar’25E EPS).
Quarterly performance INR m
Y/E March FY23 FY24E FY23 FY24E 1Q Act. Vs
1Q 2Q 3Q 4Q 1Q 2QE 3QE 4QE FY24E Est. (%)
Net Revenues 3,747 3,825 4,150 3,929 4,050 4,195 4,310 4,510 15,649 17,065 4,066 0
Change (%) 32.2 21.7 9.7 -7.1 8.1 9.7 3.9 14.8 11.9 9.0 8.4
ARR Assets Income 3,017 2,843 3,053 2,797 3,230 3,295 3,360 3,482 10,495 13,367 2,816 15
TBR Assets Income 730 982 1,097 1,132 820 900 950 1,028 5,154 3,698 1,250 -34
Operating Expenses 1,670 1,794 1,863 1,850 2,090 1,918 1,934 2,000 7,184 7,942 1,869 12
Change (%) 9.1 3.7 -16.1 -21.3 25.1 6.9 3.8 8.1 -8.4 10.6 11.9
Cost to Income Ratio (%) 44.6 46.9 44.9 47.1 51.6 45.7 44.9 44.3 45.9 46.5 46.0 563bps
Operating Profits 2,077 2,031 2,286 2,079 1,960 2,276 2,376 2,510 8,465 9,123 2,197 -11
Change (%) 59.3 43.7 46.4 10.7 -5.6 12.1 3.9 20.7 37.7 7.8 5.6
Other Income -60 225 -54 -78 290 50 50 60 37 450 65
Profit Before Tax 2,017 2,255 2,232 2,001 2,250 2,326 2,426 2,570 8,502 9,573 2,262 -1
Change (%) 33.6 19.1 12.7 -6.6 11.6 3.2 8.7 28.5 13.1 12.6 12.0
Tax 449 512 517 447 401 535 558 591 1,924 2,202 520 -23
Tax Rate (%) 22.2 22.7 23.2 22.3 17.8 23.0 23.0 23.0 22.6 23.0 23.0
PAT 1,568 1,744 1,715 1,554 1,850 1,791 1,868 1,979 6,578 7,371 1,742 6
Change (%) 34.2 21.5 12.0 -6.2 17.9 2.7 8.9 27.3 13.8 12.1 10.8
PAT Margins (%) 41.9 45.6 41.3 39.6 45.7 42.7 43.3 43.9 42.0 43.2 42.8 283bps
Key Operating Parameters (%)
AUM (INR B) 3,147 3,333 3,447 3,408 3,827 3,936 4,051 4,172 3,408 3,827 2,839 35
Change (%) 33.8 29.9 31.2 30.2 21.6 18.1 17.5 22.4 30.2 12.3 12.6
ARR Assets 1,429 1,550 1,665 1,672 1,904 2,012 2,127 2,248 1,672 1,904 1,767 8
TBR Assets 1,718 1,783 1,782 1,737 1,923 1,923 1,923 1,923 1,737 1,923 1,072 79
Yield on AUM - Calculated (%) 0.52 0.47 0.49 0.46 0.45 0.43 0.43 0.44 0.46 0.45 0.58
ARR Assets 0.84 0.76 0.76 0.67 0.72 0.67 0.65 0.64 0.67 0.72 0.66
TBR Assets 0.20 0.22 0.25 0.26 0.18 0.19 0.20 0.21 0.26 0.18 0.47
24 July 2023 39
22 July 2023
IndiaMART
Estimate change CMP: INR 3,152 TP: INR3,640 (+15%) Buy
TP change
Strong revenue growth and margin recovery to drive earnings
Rating change
Price hikes to fuel growth momentum further; reiterate BUY
Motilal Oswal values your support in  IndiaMART (INMART) delivered a strong 1QFY24 performance, with revenue
India Research, Sales, Corporate rising 26% YoY/5% QoQ (in line). Collections jumped 26% YoY to INR3.2b,
Access and Trading team. suggesting healthy visibility of revenue growth in FY24. Deferred revenue
rose 25% YoY to INR12b, which should support ~25% YoY revenue growth in
FY24E, despite a high base of FY23. EBITDA margin expanded 280bp QoQ
(230bp beat), driven by lower other expenses and stable employee costs.
 With INMART’s sales investments behind, it is expected to witness healthy
Bloomberg INMART IN margin recovery going forward. It has also taken price revisions for new
Equity Shares (m) 61 customers in its lower most offering, which should translate into
incremental ARPU over the next 1.0-1.5 years as the customers transition to
52-Week Range (INR) 3205 / 1965
1, 6, 12 Rel. Per (%) 1/29/29 new prices. Management remains confident of achieving the 30% quarterly
12M Avg Val (INR M) 553 margin level again by end-FY24. We believe INMART should benefit from
price hikes and operating leverage over FY23-25E and estimate an EBITDA
Financials & Valuations (INR b) margin of 29.4%/31.8% for FY24/FY25. This, in turn, should drive a 36% PAT
Y/E Mar 2023 2024E 2025E CAGR (excluding a one-time gain) over FY23-25E.
Sales 9.9 12.3 15.4
 BUSY continued to deliver a strong performance. Given the company's
EBITDA 2.7 3.6 4.9
investments in manpower, marketing, and distribution, there is a healthy
Adj. PAT 2.3 3.2 4.3
Adj. EPS (INR) 37.9 53.1 70.7 growth visibility for BUSY going forward. As a result, we believe that the
Adj. EPS Gr. (%) -22% 40% 33% expansion of BUSY's reach will serve as a key long-term driver for INMART’s
BV/Sh. (INR) 337.4 379.7 429.1 business. However, the performance levels of its other investments remain
Ratios key monitorables. Although BUSY is synergistic with INMART’s customer
RoE (%) 11.7 14.8 17.5 base and has the potential to provide long-term differentiation, it must scale
RoCE (%) 14.5 16.9 19.4
up its operations to become a truly meaningful value addition.
Payout (%) 4.3 24.6 32.5
 We expect INMART to deliver 25% revenue CAGR over FY23-25, aided by
Valuations
P/E (x) 68.0 59.7 44.6
sustained paying subscriber additions, price revision and strong growth in
P/BV (x) 9.3 8.3 7.3 deferred revenue.
 We continue to see INMART as a key beneficiary of the technology adoption
Shareholding pattern (%) by India’s MSME universe, as well as of a shift to a formalized ecosystem.
As On Jun-23 Mar-23 Jun-22 We believe that the company is poised to drive significant value, owing to its
Promoter 49.2 49.2 49.2 industry-leading position in the segment.
DII 5.7 5.6 5.0  We have raised our FY24/25E earnings by ~6-7% led by strong revenue and
FII 26.7 26.7 24.3
robust margin performance. We value INMART on a DCF basis to arrive at
Others 18.3 18.4 21.5
our TP of INR3,640, assuming 12% WACC, and a 6% terminal growth rate.
We reiterate our BUY rating on the stock.
PAT beat driven by strong margin expansion

 INMART’s 1QFY24 revenue grew 26% YoY, EBITDA grew 28% YoY and Adj.
PAT was up 82% YoY.
 Collections remained strong at INR3.2b (+26% YoY). Deferred revenue rose
25% YoY to INR12b in 1QFY24.
 Subscriber additions were slower at +5k paying subscribers QoQ. ARPU
surged 8% YoY and is now at INR51.5k.
24 July 2023 40
 EBITDA margin expanded 280bp QoQ to 27.4% on the back of lower other
expenses; it was 230bp ahead of our estimates of 25.1%.
 Adj. PAT surged 82% YoY to INR849m, above our estimate of INR623m led by
better margins, higher other income and lower ETR.
 Traffic up 2m QoQ to 254m during the quarter. Total suppliers on the platform
stood at 7.6m, an increase of 5.6% YoY.
 Total cash and Investments stood at INR 23.9b. The company announced INR5b
buy-back tender offer at INR4,000 per share.

 The performance was driven by continued demand and discount reversals taken
in the middle of the quarter. With this price hike/discount reversals, INMART
has been back at FY18 price levels for Silver package.
 In 1QFY24, the company added 5k paid customers, which were lower due to the
loss in productivity on account of price hikes taken. From 3QFY24, however, the
company expects to add 7-8k paid subscribers (in line with earlier level) as it
takes a few months to recoup the lost productivity.
 Management is confident of achieving 30% margin by 4QFY24 and 28% in FY24.
 Management expects margin to stabilize at ~30% levels in the near term as cost
pressures from talent and tech continue to remain high.
Strong collections to sustain; growth story intact

 Strong collections are testimony to the recovery in demand momentum. We
anticipate the momentum in collections to remain intact in the near term too.
 We are confident of strong fundamental growth in operations, propelled by: 1)
higher growth in Digitization among SMEs (~25%), 2) the need for out-of-the-
circle buyers, 3) a strong network effect, 4) over 70% market share in the
underlying industry, 5) the ability to improve ARPU on low price sensitivity, and
6) higher operating leverage.
 We have arrived at our DCF-based TP of INR3,640, assuming 12% WACC and a
terminal growth rate of 6%. Our TP implies a 15% potential upside. We reiterate
our BUY rating on the stock.
Consolidated quarterly earnings (INR m)
1Q 2Q 3Q 4Q 1Q 2QE 3QE 4QE 1QE (%/bp)
Gross Sales 2,246 2,406 2,514 2,688 2,821 2,992 3,145 3,350 9,854 12,308 2,843 -0.8
Change (YoY %) 23.7 31.9 33.7 33.5 25.6 24.3 25.1 24.6 30.8 24.9 26.6 -100bp
Total Expenditure 1,604 1,734 1,812 2,027 2,048 2,119 2,156 2,368 7,177 8,691 2,129 -3.8
EBITDA 642 672 702 661 773 872 989 983 2,677 3,617 714 8.2
Margin (%) 28.6 27.9 27.9 24.6 27.4 29.2 31.4 29.3 27.2 29.4 25.1 230bp
Depreciation 63 76 86 86 74 77 81 83 311 314 82 -9
Interest 12 26 22 21 22 22 22 22 81 88 21 5
Other Income 10 466 352 307 571 318 352 387 1,135 1,629 319 79
PBT before EO expense 577 1,036 946 861 1,248 1,092 1,238 1,265 3,420 4,843 931 34.1
Extra-Ord. expense 0 0 -516 0 18 0 0 0 -516 18 0
PBT 577 1,036 1,462 861 1,230 1,092 1,238 1,265 3,936 4,825 931 32.1
Tax 40 243 240 198 293 273 310 316 721 1,192 233 26
Rate (%) 6.9 23.5 16.4 23.0 23.8 25.0 25.0 25.0 18.3 24.7 25.0 -120bp
MI and P/L of Asso. Cos. 70 109 94 105 106 100 100 100 378 406 75
Reported PAT 467 684 1,128 558 831 719 829 849 2,837 3,228 623 33.4
Adj. PAT 467 684 612 558 849 719 829 849 2,321 3,246 623 36.2
Change (YoY %) -46.9 -16.8 -12.8 -2.8 81.8 5.1 35.4 52.1 -22.0 39.8 33.4 NA
Margin (%) 20.8 28.4 24.3 20.8 30.1 24.0 26.3 25.3 23.6 26.4 21.9 820bp
24 July 2023 41
23 July 2023
RBL Bank
TP change
Rating change Earnings beat led by lower opex; asset quality improves
Business growth remains healthy
the Asiamoney Brokers Poll 2023 for  RBK reported a beat in earnings, driven by controlled opex, while revenue
India Research, Sales, Corporate growth remained in line with estimates. Loan growth stood at 21% YoY,
We request your ballot. while margins moderated 17bp QoQ to 4.8%.
 Fresh slippages moderated to INR5.5b (3.7% annualized), resulting in a
15bp/10bp QoQ improvement in GNPA/NNPA ratio to 3.2%/1.0%. PCR
improved 157 bp QoQ to 69.6%.
 We increase our earnings estimates for FY24/25 by 7%/6% to factor in
Bloomberg RBK IN lower opex this quarter. We thus estimate RBK to deliver FY25 RoA/RoE of
Equity Shares (m) 600 1.1%/10.3%. We retain our Neutral rating with a TP of INR210 (0.8x FY’25E
M.Cap.(INRb)/(USDb) 132.9 / 1.6 ABV).
1, 6, 12 Rel. Per (%) 24/21/114
Margin moderated 17bp QoQ to 4.8%; ‘other income’ in line
 RBK reported a PAT of INR2.9b (up 43% YoY; 11% beat), driven by controlled
Financials & Valuations (INR b) opex, which stood at INR12.8b. NII grew 21% YoY to INR12.5b (in line),
Y/E March FY23 FY24E FY25E while margins moderated 17bp QoQ to 4.8%.
NII 44.5 55.2 65.9  ‘Other income’ grew 12% YoY (in line), led by 19% YoY increase in fee
OP 22.0 28.8 36.0 income, while treasury gains stood at INR480m. Opex rose 16% YoY (down
NP 8.8 12.5 15.6 1% QoQ), while C/I ratio moderated to 66.5%. PPoP grew 22% YoY to
NIM (%) 4.3 4.8 4.8
INR6.5b.
EPS (INR) 14.7 20.9 26.1
EPS Gr. (%) NM 42.1 24.6
 Advances grew 21% YoY (up 4% QoQ) to INR731b, driven by ~34% YoY
BV/Sh. (INR) 226 242 262 growth in retail loans and 8% YoY growth in wholesale advances. Within
ABV/Sh. (INR) 217 235 255 Retail, rural vehicle finance grew 21% QoQ, while the business loan/MFI
Ratios book saw an increase of 13%/9.3% QoQ. Credit cards book grew at a steady
RoE (%) 6.7 8.9 10.3
pace of 7% QoQ. The share of Credit Cards thus stands at 24% of loans.
RoA (%) 0.8 1.0 1.1
Valuations  Deposits grew 8% YoY, led by CASA deposits, which grew 12% YoY (up 1%
P/E(X) 15.1 10.6 8.5 QoQ). CASA ratio moderated 10bp QoQ to 37.3%.
P/BV (X) 1.0 0.9 0.8  Fresh slippages moderated to INR5.5b (3.7% annualized), resulting in a
P/ABV (X) 1.0 0.9 0.9
15bp/10bp QoQ improvement in GNPA/NNPA ratio to 3.2%/1.0%. PCR
improved 157 bp QoQ to 69.6%. Restructured book declined to 1.1% of
As On
loans vs. 1.2% in 4QFY23.
Mar-23 Dec-22 Mar-22
Promoter 0.0 0.0 0.0
DII 22.6 22.3 21.8 Highlights from the management commentary
FII 22.3 26.9 28.2  RBL added three branches in 1QFY24 and aims to add 70-80 branches in
Others 55.1 50.8 50.0 FY24.
 The credit cost for FY24 is expected to be on the lower end of the 1.5%-
2.0% range in FY24.
 Advances book to grow at 20-22% with higher growth in retail advances at
33%-35% for FY24 and 20%+ CAGR over FY24-FY26.
 ROE is expected to improve to 14%-15% by FY26 from 8.4% as on 1QFY24.
24 July 2023 42
Valuation and view
RBK reported a beat in earnings, driven by lower opex, while margins moderated
17bp QoQ though the management guided for improved margin trends going
forward. Business growth saw healthy trends and the management expects traction
to remain healthy led by retail loans. Deposit growth was modest with CASA ratio
witnessing a moderation. The bank’s asset quality demonstrated a steady
improvement, marked by a decline in slippages and the restructured book. This
trend bodes well for the incremental outlook on asset quality. We expect RBK to
deliver FY25E RoA/RoE of 1.1%/10.3%. We reiterate our Neutral stance with a TP of
INR210 (0.8x FY’25E ABV).

FY23 FY24E FY23 FY24E FY24E V/s our
1Q 2Q 3Q 4Q 1Q 2QE 3QE 4QE 1QE Est (%)
Net Interest Income 10,277 10,644 11,482 12,112 12,462 13,472 14,079 15,200 44,515 55,214 12,425 0
% Change (Y-o-Y) 6.0 16.3 13.6 7.1 21.3 26.6 22.6 25.5 10.5 24.0 20.9
Other Income 6,136 5,833 6,184 6,741 6,854 7,170 7,677 8,172 24,894 29,873 7,018 -2
Total Income 16,413 16,477 17,666 18,853 19,316 20,642 21,757 23,372 69,409 85,087 19,444 -1
Operating Expenses 11,122 11,354 11,994 12,915 12,841 13,670 14,345 15,398 47,384 56,253 13,269 -3
Operating Profit 5,291 5,124 5,672 5,938 6,475 6,972 7,412 7,974 22,025 28,833 6,175 5
% Change (Y-o-Y) -30.9 -25.9 -10.1 -9.7 22.4 36.1 30.7 34.3 -19.8 30.9 16.7
Provisions 2,530 2,415 2,927 2,347 2,662 2,944 3,185 3,274 10,219 12,065 2,699 -1
Profit before Tax 2,761 2,709 2,745 3,591 3,813 4,028 4,227 4,700 11,805 16,768 3,476 10
Tax 750 693 655 880 932 1,015 1,065 1,208 2,978 4,220 876 6
Net Profit 2,012 2,016 2,090 2,711 2,881 3,013 3,162 3,491 8,827 12,547 2,600 11
% Change (Y-o-Y) NM NM 33.9 37.0 43.2 49.5 51.3 28.8 NM 42.1 29.3
Deposit (INR b) 792.2 794.0 817.5 848.9 856.4 894.6 933.8 979.6 848.9 979.6 876.0 -2
Loan (INR b) 602.7 629.4 666.8 702.1 730.9 748.8 788.8 835.5 702.1 835.5 725.3 1
Deposit Growth (%) 6.4 5.0 11.0 7.4 8.1 12.7 14.2 15.4 7.4 15.4 10.6 -248
Loan Growth (%) 6.6 12.4 14.7 17.0 21.3 19.0 18.3 19.0 17.0 19.0 20.3 93
Asset Quality
Gross NPA (%) 4.1 3.8 3.6 3.4 3.2 3.1 2.9 2.7 3.4 2.7 3.2 1
Net NPA (%) 1.2 1.3 1.2 1.1 1.0 0.9 0.9 0.8 1.1 0.8 1.0 -4
PCR (%) 72.5 67.8 68.0 68.1 69.6 70.2 70.8 71.2 68.1 71.2 68.4 125
RoA (%) 0.8 0.8 0.8 1.0 0.8 1.0
RoE (%) 6.3 6.1 6.3 8.1 6.7 8.9
CASA (%) 36.0 36.2 36.6 37.3 34.8
Margins (%) 4.4 4.6 4.7 5.0 4.3 4.8
24 July 2023 43
RESULTS
23 July 2023
FLASH Results Flash | Sector: Real Estate
DLF
BSE SENSEX S&P CNX
66,684 19,745
CMP: INR501 Neutral
Steady bookings with further reduction in debt
Conference Call Details Re-enters Mumbai market with SRA project
th
Date: 24 July 2023
Time: 16:00 IST
Residential performance
Dial in details: Webcast link
 After delivering a record performance in 4QFY23, pre-sales normalized to
INR20b (in line) in 1QFY24, flat YoY. DLF had no major launches during the
quarter and sales were largely generated from ongoing projects.
Y/E Mar FY23 FY24E FY25E  Bookings were driven by improved traction at Camellias, which saw sales
Sales 57 80 84 of INR5.6b, the highest since 4QFY22. DLF also resumed sales at One
EBITDA 17 25 28
EBITDA Margin (%)
Midtown after three quarters, with a INR6.6b contribution to total sales.
30 31 33
PAT 20 30 45  The launch pipeline for FY24 stands strong at 11.2msf with sales potential
EPS (INR) 11 17 25 of INR200b. Additionally, DLF also has unsold inventory of INR56b.
EPS Gr. (%) 146 153 122
BV/Sh. (INR)
 Collections grew 47% YoY to INR16b. Aided by consistent surplus cash
211 224 245
Ratios generation, DLF’s balance sheet now has marginal net debt of INR0.6b,
RoE (%) 5.5 7.8 10.8 down from INR52b in FY21.
RoCE (%) 3.4 5.0 5.5
Payout (%) 49 25 16  DLF has now re-entered the Mumbai market by signing a development
Valuations agreement with a local developer to execute the first phase of a slum
P/E (x) 44 41 27 rehabilitation project in Andheri.
P/BV (x) 2.4 2.2 2.0
EV/EBITDA (x) 52 36 31
Div yld (%) 1.1 0.8 0.8 Rental performance (DCCDL)
 Occupancy in the non-SEZ portfolio stood at 94%, while it declined in the
SEZ assets to 82% from 85% in 4QFY23. Overall occupancy in DCCDL’s
office portfolio stood at 88%.
 Rental income was up 13% YoY/flat QoQ at INR10.4b.
 DLF’s portfolio continued to witness strong traction as it achieved pre-
leasing of 1msf in 1QFY24 in its 5.5msf under-construction assets at
Downtown Gurgaon and Chennai. The assets are now 82% pre-leased vs.
63% in 4QFY23.
 Net debt declined marginally to INR183b from INR188b in 4QFY23.
P&L highlights
 Revenue was flat YoY at INR14.5b, but EBITDA declined 4% YoY to INR4b
due to a 100bp reduction in margins to 28%.
 DLF reported PAT of INR5.3b, up 12% YoY, driven by a INR2.5b
contribution from JV (DCCDL).
24 July 2023 44
Quarterly performance
Y/E March (INRm) FY23 FY24E FY23 FY24E FY24E Variance
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1QE (%/bp)
Gross Sales 14,416 13,023 14,948 14,561 14,232 16,755 21,941 26,857 56,948 79,785 15,957 -11
YoY Change (%) 26.5 -12.1 -3.5 -5.9 -1.3 28.7 46.8 84.5 -0.4 40.1
Total Expenditure 10,280 8,657 10,176 10,577 10,271 11,803 14,801 17,987 39,690 54,862 11,295
EBITDA 4,137 4,367 4,772 3,984 3,962 4,952 7,139 8,870 17,259 24,924 4,662 -15
Margins (%) 28.7 33.5 31.9 27.4 27.8 29.6 32.5 33.0 30.3 31.2 29.2 -138bps
Depreciation 373 367 386 360 364 390 395 417 1,486 1,566 385
Interest 1,052 1,069 954 846 849 692 617 477 3,921 2,634 767
Other Income 747 582 659 1,196 985 977 1,037 990 3,173 3,989 918
PBT before EO expense 3,458 3,512 4,090 3,974 3,734 4,848 7,165 8,966 15,024 24,713 4,428 -16
Extra-Ord expense 0 0 0 0 0 0 0 0 0 0 0
PBT 3,458 3,512 4,090 3,974 3,734 4,848 7,165 8,966 15,024 24,713 4,428 -16
Tax 876 910 1,104 1,125 1,014 1,222 1,806 2,176 4,015 6,218 1,116
Rate (%) 25.3 25.9 27.0 28.3 27.2 25.2 25.2 24.3 33.2 33.2 25.2
Minority Interest & Profit/Loss of Asso. Cos. 2,111 2,169 2,203 2,848 2,541 2,894 3,012 3,366 9,330 11,813 2,835
Reported PAT 4,692 4,772 5,189 5,696 5,261 6,520 8,372 10,155 20,340 30,308 6,147 -14
Adj PAT 4,692 4,772 5,189 5,696 5,261 6,520 8,372 10,155 20,340 30,308 6,147
YoY Change (%) 39.2 25.9 -16.7 40.5 12.1 36.6 61.3 78.3 16.6 49.0
Margins (%) 32.5 36.6 34.7 39.1 37.0 38.9 38.2 37.8 35.7 38.0 38.5 -156bps
Operational Metrics
Residential
Pre-sales 20 21 25 85 20 30 40 62 151 152 20 3
Collections 11 13 14 19 16 16 21 23 57 75 15 5
Net Debt 23 21 21 7 1 0 0 0 7 0 0
Note: Estimates are under review and we will revise them after the earnings call Source: MOFSL, Company
24 July 2023 45
RESULTS
23 July 2023
FLASH 1QFY24 Results Flash | Sector: Automobile
Ashok Leyland
BSE SENSEX S&P CNX
66,684 19,745
CMP: INR182 Buy
Strong beat led by lower discounts; EBITDA at INR8.2b (vs. INR7b)
Conference Call Details  AL’s volumes grew 4% YoY (down 31% QoQ) to 41.3k units, despite lower
th
Date: 24 July 2023
MHCV sales on a QoQ basis. Realizations grew 9% YoY (up 2% QoQ) to
Time: 3 PM IST
INR1.98m (vs. est. INR1.91m). Net revenues grew 13% YoY to INR81.9b (vs. est.
Dial-in details: [Link]
INR79b).
+91 22 6280 1259 /
 Gross margins improved 560bp YoY (up 190bp QoQ) to 26.3%, driven by better
7115 8160
mix (higher LCVs) and lower discounts.
 EBITDA margins expanded 5.6pp YoY (down 100bp QoQ) to 10% (vs. est. 8.9%).
Financials and Valuations (INR b) This was mainly on account of better gross margins and lower ‘other expenses’
Y/E March 2023 2024E 2025E
Sales 361.4 418.2 464.2 as a percentage of sales. EBITDA grew 156% YoY to INR8.2b (vs. est. INR7b).
EBITDA 29.3 45.1 53.2  Further, lower tax and higher ‘other income’ boosted adj.PAT to INR5.8b (vs.
EBITDA (%) 8.1 10.8 11.5 est. INR3.3b)
Adj. PAT 13.2 25.1 30.9
 Tax expense for the quarter was lower as it considers a one-time deferred tax
Adj. EPS (INR) 4.5 8.6 10.5
EPS Gr. (%) 7,586.2 89.5 23.1 credit of INR1.72b, on account of expected transition to lower tax regime in the
BV/Sh. (INR) 28.7 35.2 43.8 next financial year.
Ratios  Mr. Shenu Agarwal, MD & CEO, Ashok Leyland, said, “With expansion in
Net D:E (x) 0.0 -0.1 -0.3 revenues and efficient cost management, we have seen our bottom line
RoE (%) 16.8 26.7 26.7
ROCE (%) 13.1 21.0 22.3 improving substantially. While we continue to expand our market penetration
Payout (%) 57.6 23.4 19.0 on the back of efficient products and expanding the network, we shall remain
Valuations acutely focused on achieving and sustaining double-digit profitability. This is
P/E (x) 40.3 21.3 17.3 important for us as we focus on improving our resilience and investing in
P/BV (x) 6.3 5.2 4.2
EV/EBITDA (x) 18.2 11.6 9.4 technologies of the future”
Div. Yield (%) 1.4 1.1 1.1  Valuation and view: The stock trades at 9.4x EV/EBITDA and 4.2x P/BV on a
FCF Yield (%) 3.1 3.8 6.1 FY25E basis.
Quarterly Performance (S/A) (INR M)

FY23 FY24E FY23 FY24E FY24E
1Q 2Q 3Q 4Q 1Q 2QE 3QE 4QE 1QE
Total Volumes (nos) 39,651 45,295 47,562 59,697 41,329 53,232 54,898 63,452 1,92,205 2,12,910 41,329
Growth % 120.4 64.5 39.6 22.5 4.2 17.5 15.4 6.3 49.8 10.8 4.2
Realizations (INR '000) 1,822 1,825 1,899 1,947 1,981 2,021 2,041 1,839 1,880 1,964 1,908
Change (%) 11.0 12.8 16.9 8.5 8.8 10.8 7.5 -5.6 11.3 4.5 4.8
Net operating revenues 72,229 82,660 90,297 1,16,257 81,893 1,07,588 1,12,064 1,16,671 3,61,441 4,18,216 78,876
Change (%) 144.8 85.4 63.1 33.0 13.4 30.2 24.1 0.4 66.7 15.7 9.2
RM/sales % 79.3 78.0 76.3 75.6 73.7 75.1 75.1 75.7 77.1 75.0 75.3
Staff/sales % 6.2 6.4 6.1 5.1 6.6 5.3 5.2 5.0 5.8 5.5 6.2
Other exp/sales % 10.1 9.1 8.8 8.3 9.7 8.8 8.5 8.3 9.0 8.8 9.6
EBITDA 3,203 5,373 7,973 12,757 8,208 11,577 12,499 12,840 29,307 45,124 7,011
EBITDA Margins(%) 4.4 6.5 8.8 11.0 10.0 10.8 11.2 11.0 8.1 10.8 8.9
Interest 689 771 804 628 699 640 625 561 2,891 2,525 650
Other Income 256 200 316 389 512 425 450 383 1,161 1,770 390
Depreciation 1,824 1,768 1,890 1,838 1,794 1,880 1,900 2,010 7,320 7,583 1,850
PBT before EO Item 946 3,035 5,596 10,681 6,227 9,482 10,424 10,653 20,258 36,786 4,901
EO Exp/(Inc) -130 -82 -69 -564 6 0 0 0 -846 0 0
PBT after EO 1,077 3,117 5,665 11,245 6,221 9,482 10,424 10,653 21,104 36,786 4,901
Effective Tax Rate (%) 36.8 36.1 36.2 33.2 7.3 31.7 31.7 46.0 34.6 31.7 31.7
Adj PAT 595 1,939 3,568 7,145 5,768 6,472 7,115 5,752 13,248 25,109 3,345
Change (%) -121.2 -333.0 -1,054.2 70.8 868.8 233.7 99.4 -19.5 7,587.8 89.5 461.8
E: MOFSL Estimates
24 July 2023 46
RESULTS
23 July 2023
FLASH Results Flash | Sector: Oil & Gas
Indraprastha Gas
BSE SENSEX S&P CNX
66,684 17,892
CMP: INR495 Sell
Conference Call Details Beat led by higher-than-expected margins
Date: 26 Jul 2023  Total volumes were in line with our estimate at 8.2mmscmd (+4% YoY, -
Time: 04:00pm IST 1% QoQ) in 1QFY24.
 CNG volumes stood at 6.17mmscmd (+4% YoY, +1% QoQ).
Dial in details awaited
 PNG volumes came in at 2.03mmscmd (+4% YoY, -5% QoQ).
 EBITDA/scm at INR8.6 beat our est. of INR7.4 (INR6.3 in 4QFY23).

 Gross margin stood at INR14.4/scm (vs. INR12/scm in 4QFY23).
 Opex remained flat QoQ at INR5.8/scm.
 Resulting EBITDA was above our est. at INR6.4b (+4% YoY, +38% QoQ).
 PAT was above est. at INR4.4b (+4% YoY, +33% QoQ).

 IGL’s share in CUGL and MNGL added INR836m to its consol. profit (+38%
YoY, +23% QoQ) in 1QFY24.

Y/E March FY23 FY24
1Q 2Q 3Q 4Q 1QE 1QAct Var (%) YoY (%) QoQ (%)
Net Sales 31,939 35,540 37,108 36,872 35,991 34,070 -5% 7% -8%
Change (%) 154.0 94.1 67.5 53.3 12.7 6.7
EBITDA 6,175 5,275 4,285 4,663 5,821 6,424 10% 4% 38%
EBITDA (INR/scm) 8.6 7.1 5.7 6.3 7.4 8.6 17% 0% 37%
% Change 62.1 -0.5 -8.8 -6.8 -5.7 4.0
Depreciation 857 914 925 938 947 989
Interest 24 31 26 26 28 24
Other Income 307 1,100 557 654 520 457
PBT after EO 5,602 5,430 3,891 4,354 5,366 5,867 9% 5% 35%
Tax 1,394 1,269 1,109 1,057 1,351 1,483
Rate (%) 24.9 23.4 28.5 24.3 25.2 25.3
PAT 4,209 4,162 2,783 3,298 4,016 4,384 9% 4% 33%
PAT (INR/scm) 5.9 5.6 3.7 4.4 5.1 5.9 15% 0% 32%
Change (%) 72.3 3.9 -9.8 -8.8 -4.6 4.2
EPS (INR) 6.0 5.9 4.0 4.7 5.7 6.3 9% 4% 33%
Gas Volumes (mmscmd)
CNG 5.93 6.09 6.07 6.11 6.11 6.17 1% 4% 1%
PNG 1.96 2.00 2.05 2.14 2.46 2.03 -17% 4% -5%
Total 7.89 8.09 8.12 8.26 8.56 8.20 -4% 4% -1%
24 July 2023 47
23 July 2023
ICICI Securities
Estimate change CMP: INR632 Under Review
TP change Under Review
Rating change Under Review Higher opex, muted MTF revenue dent performance
 ISEC reported 1QFY24 revenue at ~INR9.3b, up 17.7% YoY but lower than
our estimates of INR9.5b.
India Research, Sales, Corporate  Retail Brokerage revenue grew 11% YoY at INR2.9b, broadly in line with our
expectations. Revenue from allied activities was up 5% YoY at INR2.2b,
missing our estimate by 10% owing to weaker-than-expected MTF income.
 Total Institutional Broking revenue (including allied revenue) was higher by
13% YoY (11% beat).
 Distribution revenue grew 4% YoY to INR1.6b (10% miss).
Bloomberg ISEC IN  IB revenue stood at INR362m, up 3% YoY but 5% lower than our estimate.
 ISEC reported PAT at INR 2.7b, flat YoY and 8% below our expectations.
M.Cap.(INRb)/(USDb) 204.3 / 2.5
52-Week Range (INR) 650 / 417  The CI ratio jumped to 61.0% from 58.8% in 1QFY23. (est. 59.6%).
1, 6, 12 Rel. Per (%) 18/17/17  Currently our rating of the stock is under review.
Retail Broking revenue up 11% YoY
 Retail Broking revenue grew 11% YoY to INR2.9b, mainly aided by growth in
Derivative revenue (26% YoY). Its market share in Retail Derivatives grew
Revenues 34.3 40.1 44.8 by ~16bp YoY to 3.1%.
Opex 19.2 23.1 26.1  Institutional Equities revenue grew 13% YoY to INR551m in 1QFY24, led by
PBT 15.0 16.9 18.8
PAT 11.3 12.7 14.1
Institutional Broking revenue (25% growth YoY).
Ratios  ISEC added 212k new customers in 1QFY24 vs. 466k in 1QFY23. Active
C/I ratio (%) 56.2 57.7 58.2 clients as a % of the total client base declined to 27% in 1QFY24 from 45%
PAT margin (%) 32.9 31.7 31.4
in 1QFY23. The number of NSE active clients fell to 2.05m in 1QFY24.
RoE (%) 42.0 40.2 38.8
Div. Payout (%) 55.0 65.0 65.0 Treasury income drives revenue growth
EPS 34.9 39.4 43.6  Interest income grew 11% YoY to INR1.7b. Avg MTF book declined QoQ to
EPS Growth (%) -18.6 12.8 10.8
BV 91.0 104.8 120.1 INR61b from INR54b in 4QFY23. MTF market share stood at 22.2%.
Valuations  Distribution revenue rose 4% YoY to INR2.1b, led by 10% growth in the MF
P/E (x) 18.1 16.0 14.4 segment. Its share in SIP flows (INR12.7b in 1Q) fell 450bp to 2.95%.
P/BV (x) 6.9 6.0 5.2
Div. Yield (%) 3.0 4.1 4.5
 Investment & Trading income grew 164% YoY to INR628m (37% beat).
Higher opex leads to increase in C/I ratio
Shareholding pattern (%)  The operating cost increased by 33% YoY, due to 1) high employee costs
As On Jun-23 Mar-23 Jun-22 attributable to variable pay for FY23 (expect this run rate to continue), 2)
Promoter 74.8 74.9 74.9 franchisee costs, and 3) cost of funds on MTF.
DII 5.1 5.1 6.8
 The C/I ratio rose to 61% (in line) from 53.8% in 1QFY23.
FII 9.5 8.8 7.1
Others 10.6 11.4 11.3 Highlights from the management commentary
FII Includes depository receipts  In the Derivative segment, the company is intensifying its App’s
performance and marketing efforts (product and tool awareness).
 The cost increase will support structural tailwinds for the next level of
growth in the broking industry. The CIR is expected to tend downwards in
the coming years (aspiring < 35% by 2025).
 ISEC has made a soft launch of ‘Mintr’ app: Direct MF & SIP. It has a wide
range of readymade MF portfolios and Smart MF insights and is suited for
learning & sharpening trading and investment skills. ISEC would scale up on
Mintr promotion activities after the launch of an equity module.
24 July 2023 48
Valuation and view
 ISEC has seen tough times in the recent past due to high linkage of its revenue
to broader equity markets. ISEC is now on the course of diversifying its revenue
with the launch of several tools and products for the derivatives segment.
Besides, the company has intensified its focus on increasing the penetration of
MTF among its customers. The launch of new distribution products – loans and
general insurance – will further enhance revenue in due course.
 Its board of directors on 29th Jun’23 approved a draft scheme of arrangement
for the delisting of equity shares of the company, pursuant to which ICICI Bank
will issue equity shares to the public shareholders of the company, thereby
making the company a wholly owned subsidiary of ICICI Bank. The swap ratio is
67 equity shares of face value INR2 each of ICICI Bank for every 100 equity
shares of ISEC.
 Currently our rating of the stock is under review.
Quarterly Performance (INR m)

Y/E March FY23 FY24E Var.
FY22 FY23 1QFY24E
1Q 2Q 3Q 4Q 1Q 2QE 3QE 4QE (%)
Revenue from Operations 7,948 8,656 8,799 8,852 9,344 9,711 10,028 10,968 34,385 34,255 9,503 -1.7
Change YoY (%) 6.3 1.1 -6.6 -0.8 17.6 12.2 14.0 23.9 32.7 -0.4 19.6
Operating Expenses 4,277 4,621 5,025 5,320 5,701 5,697 5,823 5,899 15,858 19,243 5,666 0.6
Change YoY (%) 29.2 19.8 16.3 21.7 33.3 23.3 15.9 10.9 37.3 21.3 32.5
PBT 3,670 4,036 3,774 3,532 3,644 4,014 4,205 5,069 18,527 15,013 3,838 -5.1
Change YoY (%) -11.9 -14.3 -26.0 -22.4 -0.7 -0.5 11.4 43.5 29.0 -19.0 4.6
Tax Provisions 936 1,032 964 905 935 996 1,043 1,259 4,700 3,836 905 3.3
Net Profit 2,735 3,004 2,810 2,627 2,708 3,019 3,162 3,810 13,827 11,176 2,932 -7.6
Change YoY (%) -12.0 -14.5 -26.1 -22.8 -1.0 0.5 12.5 45.0 28.9 -19.2 7.2
Key Operating Parameters (%)
Cost to Income Ratio 53.8 53.4 57.1 60.1 61.0 58.7 58.1 53.8 46.1 56.2 59.6 1.4
PBT Margin 46.2 46.6 42.9 39.9 39.0 41.3 41.9 46.2 53.9 43.8 40.4 -1.4
Tax Rate 25.5 25.6 25.5 25.6 25.7 24.8 24.8 24.8 25.4 25.6 23.6 2.1
PAT Margins 34.4 34.7 31.9 29.7 29.0 31.1 31.5 34.7 40.2 32.6 30.9 -1.9
Revenue from Operations (INR Mn)
Retail Brokerage Income (ex-interest) 3,247 3,577 3,326 3,184 3,200 3,513 3,621 3,942 15,147 13,335 3,266
Institutional Brokerage Income 486 425 466 493 725 566 590 664 2,538 1,870 725
Investment Banking 350 488 483 127 280 291 301 329 2,956 1,448 285
Distribution Income 1,520 1,564 1,669 1,929 2,149 2,234 2,306 2,523 5,996 6,682 2,186
Others 832 1,131 1,141 1,380 1,308 1,360 1,404 1,536 2,767 4,484 1,330
Interest Income 1,512 1,472 1,714 1,738 1,682 1,748 1,805 1,974 4,980 6,436 1,711
Revenue from Operations Mix (%)
Retail Brokerage Income 40.9 41.3 37.8 36.0 34.2 36.2 36.1 35.9 44.1 38.9 34.4
Institutional Brokerage Income 6.1 4.9 5.3 5.6 7.8 5.8 5.9 6.1 7.4 5.5 7.6
Investment Banking 4.4 5.6 5.5 1.4 3.0 3.0 3.0 3.0 8.6 4.2 3.0
Distribution Income 19.1 18.1 19.0 21.8 23.0 23.0 23.0 23.0 17.4 19.5 23.0
Other servicing Income 10.5 13.1 13.0 15.6 14.0 14.0 14.0 14.0 8.0 13.1 14.0
Interest Income 19.0 17.0 19.5 19.6 18.0 18.0 18.0 18.0 14.5 18.8 18.0
Opex Mix (%)
Employee Expenses 40.9 40.2 35.0 30.3 35.3 36.4 36.7 36.5 41.9 36.3 32.8
Depreciation 3.8 4.1 3.9 3.9 3.9 4.0 4.0 4.2 3.9 3.9 3.7
Interest Expenses 23.5 23.4 30.5 32.8 32.4 31.7 31.7 31.7 17.3 27.9 31.5
Others 31.8 32.3 30.7 33.0 28.4 27.9 27.7 27.6 36.9 32.0 32.1
24 July 2023 49
24 July, 2023
ECOSCOPE
The Economy Observer
Monsoon Diary: Monsoon rains at 4% surplus as of 22 Jul’23
Kharif sowing 1.2% higher than last year
 India has received average monsoon rains since the start of the season, despite El Nino concerns. Delay in the arrival of
the monsoon led to a large rain deficit up to mid-June, but heavy rains since the last week of June erased the shortfall.
However, erratic distribution of rainfall is a cause for concern. Vegetables such as tomatoes, eggplant, capsicum and
spinach are adversely affected by uneven rainfall distribution. Standing crops in northern India have been damaged by
floods, while southern planting has been delayed. As a result, prices of certain vegetables, including tomatoes, have hit
record highs.
nd
 Cumulative rainfall until 22 Jul’23 was 4% above normal compared with 14% above normal last year. Distribution of
monsoon rainfall, however, has been extremely skewed since the start of the season. While the northwest region (41%
above normal) and central India (13% above normal) have received above-normal rainfall, the southern peninsula (12%
below normal, better than 22% below normal last week) and the eastern and northeastern regions have witnessed
deficient rainfall (23% below normal). Out of 36 meteorological subdivisions, 8 continue to record deficient rain (-59% to
-20%); 16 normal (-19% to 19%); 9 excess (20% to 59%) and 3 large excess (60% or more). (refer to Exhibits 1 and 2)
 According to the Indian Meteorological Department (IMD), although El Nino conditions have already set in, India is yet to
see its impact on the monsoon. Further, they could be offset by the development of a positive Indian Ocean Dipole (IOD).
The IMD has predicted that the LOPAR (low pressure area) is likely to trigger light to moderate widespread precipitation
with isolated instances of heavy to very heavy rainfall across Odisha, Gujarat, Maharashtra, Himachal Pradesh,
Uttarakhand, Rajasthan, Telangana and Uttar Pradesh over the next week. Excess rainfall is likely to impact vegetables
and standing crops in northern India. However, improvement in rainfall activity in Telangana, Odisha and Maharashtra
would improve rice sowing.
 July is a crucial period for sowing kharif crops as about 32% (avg. CY02-CY21) of monsoon precipitation typically occurs
during this month (refer to Exhibit 3). There has been a considerable improvement in Kharif sowing compared to last
st
week. Kharif sowing as of 21 Jul’23 stands at 1.2% higher than last year (vs. 1.6% lower during last week). This is mainly
due to improvement in rice sowing. The area under paddy cultivation is now 2.7% higher than last year (vs. 6.2% lower
during last week). The area under pulses is 9.8% lower than it was last year (13.3% lower last week). Production of jute
and cotton is also lower, though it has improved compared to last week. Oilseeds (3.3% YoY), Coarse cereals (4.8% YoY)
and sugarcane (5% YoY) continue to do well (refer to Exhibit 4).
 Lower rainfall deficiency in Chattisgarh and Odisha and above normal rainfall in Telangana led to an improvement in rice
sowing this week. However, deficient rainfall in major rice-producing states (with 56% share in overall rice production)
such as West Bengal (18% below normal), Uttar Pradesh (8% below normal), Andhra Pradesh (16% below normal),
Odisha (14% below normal), Chattisgarh (10% below normal), Bihar (42% below normal) and Assam (13% below normal)
is a cause for concern. States with higher irrigation cover, such as Uttar Pradesh, Andhra Pradesh and Telangana, will be
less impacted (refer to Exhibit 5).
 Deficient monsoon in states (with 24% share), such as Uttar Pradesh (8% below normal), Karnataka (14% below normal),
Andhra Pradesh (16% below normal) and Jharkhand (44% below normal), along with large excess rainfall in states (24%
share) of Gujarat (88% above normal) and Rajasthan (90% above normal), is affecting the sowing of pulses. Lower
irrigation cover in all the major states would affect pulses’ production more. Inflation in pulses has nearly doubled in the
past five months. Currently it stands at 6.6% in Jun’23. (refer to Exhibit 6).
 Deficient rainfall, and consequently lower rice and pulse sowing, have pushed prices higher. Rice constitutes around 4.4%
and pulses have a weight of 6% in the overall CPI basket.
th
 As of 20 Jul’23, water reservoir levels stood at ~39% of the live storage capacity compared with 33% last week, mainly
due to higher storage in the northern region. Even though the reservoir levels are lower than last year, they are on par
with the previous 7 years’ levels. (refer to Exhibits 7 and 8)
24 July 2023 50
Apart from northwest and central India, all other regions
nd
All India cumulative rainfall at a 4% surplus as of 22 Jul’23 have witnessed deficient rainfall
(% deviation from normal) CY22 CY23 (% deviation from normal) CY22 CY23
60
10 41
40 33
2 0 4 26
-10
-8 20 13
-30
0
-50 -5
-20 -12
-14 -23
-70 -40
09-Jun
19-Jun
01-Jul
03-Jul
05-Jul
07-Jul
09-Jul
11-Jul
13-Jul
15-Jul
17-Jul
19-Jul
21-Jul
11-Jun
13-Jun
15-Jun
17-Jun
21-Jun
23-Jun
25-Jun
27-Jun
29-Jun
North-West Central South East and

Peninsula North-East
Data around 22nd July for all years Data around 22nd July for all years Source: IMD, CEIC, MOFSL
Historical average shows July receives the maximum amount Kharif sowing 1.2% higher than last year, led by
of rainfall in one season improvement in rice sowing
(Distribution of Kharif Sowing as on
Area Sown (Lakh Ha) (% YoY)
monthly rainfall, %) July 21, 2023
Sept, 20 June, 19 2022 2023
Rice 175.5 180.2 2.7
Total Pulses 95.2 85.9 -9.8
Total Coarse Cereals 128.8 134.9 4.8
Total Oilseeds 155.3 160.4 3.3
August, 29 July, 32 Sugarcane 53.3 56.0 5.0
Total Jute and Mesta 6.9 6.4 -8.1
Cotton 110.0 109.7 -0.3
Average CY02-21
Grand Total 725.0 733.4 1.2
The southwest monsoon season begins in June Data as of 21st July for both years Source: Ministry of agriculture
and farmers’ welfare, CEIC, MOFSL
Deficient rainfall in major rice-producing states is adversely impacting sowing

States % share in rice production Area under irrigation (%) % deviation from normal rainfall
2020 2017 2022 2023
West Bengal 13.4 51.1 -29 -18
Uttar Pradesh 13.1 86.2 -58 -8
Punjab 9.9 99.7 24 47
Andhra Pradesh 7.3 96.7 21 -16
Odisha 7.0 30.9 0 -14
Telangana 6.3 98.5 111 21
Tamil Nadu 6.0 91.6 62 6
Chattisgarh 5.7 36.3 5 -10
Bihar 5.3 64.6 -45 -42
Assam 4.2 15.1 13 -13
Haryana 4.1 99.9 17 52
Madhya Pradesh 4.0 39.4 18 15
st
Data as of 21 July for both years Source: Ministry of agriculture and farmers’ welfare, CEIC, MOFSL
24 July 2023 51
Exhibit 6: Deficient rainfall in major pulses-producing states is adversely impacting sowing
States % share in rice production Area under irrigation (%) % deviation from normal rainfall
2022 2020 2022 2023
Madhya Pradesh 21.8 43.8 18 15
Maharashtra 18.8 12.5 40 3
Rajasthan 14.5 22.2 47 90
Gujarat 9.7 41.1 62 88
Uttar Pradesh 9.3 33.8 -58 -8
Karnataka 7.1 10.8 31 -14
Andhra Pradesh 3.9 2.5 21 -16
Jharkhand 3.2 11.8 -51 -44
st
Data as of 21 July for both years Source: Ministry of agriculture and farmers’ welfare, CEIC, MOFSL
Water reservoir levels improved to 39% of live storage

th
capacity as of 20 Jul’23 compared with 33% last week… …mainly due to higher storage in northern region
Storage as % of Live Capacity at Full Reservoir Level Storage as % of Live Capacity at Full Reservoir Level
53 FY23 FY24
72 70
39 39 58
38
33 32 46 46
29 39
23 24 35
27 27
23
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Northern Eastern Western Central Southern
th
Data around 20 July for all years Source: CEIC, MOFSL
24 July 2023 52
In conversation
\
Mphasis : Clients Request Capacity addition in Mortgage;

Nitin Rakesh, CEO
 Early Volume uptick in Mortgage Business
 Expect Q1 to be the bottom, anticipating growth from Q2
 Optimistic about improving margin while investing
 Pipeline UP 20% YoY and 6% QoQ
Union Bank of India : Advances & Deposits Exceeded Guidance;

A Manimekhalai, MD & CEO
 Will Maintain NIMs at 3%
 To moderate Bulk Deposits; focus on CASA Growth, Retail term deposit
 Targets to keep Credit Cost at 1%
Utkarsh SFB : Growth opp in MSME Segment;

Govind Singh, CEO & MD
 2nd Fastest Growth Among SFBs between FY19-22
 Focused in rural, semi-urban areas and MFI
 830 Banking outlets; 15,424 employees currently
 27.4% Banking outlets in unbanked rural centers
Havells : Foray into EMS to aid margins?

Anil Rai Gupta,MD
 Sluggish demand in B2C by unseasonal rains, some pick in Q2 expected
 B2B demand is primarily driven by tier1 and tier 2
 EMS is for export market , like for A/C, cables etc, will be a volume gainer for us
24 July 2023 53
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for detailed Valuation snapshot
valuation guide
CMP TP % Upside EPS (INR) EPS Gr. YoY (%) P/E (x) P/B (x) ROE (%)
Company Reco (INR) (INR) Downside FY23 FY24 FY25 FY23 FY24E FY25E FY24E FY25E FY24E FY25E FY24E FY25E
Automobiles
Amara Raja Neutral 624 715 15 42.7 53.0 58.7 42.7 24.2 10.6 11.8 10.6 1.8 1.6 16.1 15.9
Apollo Tyres Buy 419 500 19 17.1 26.4 33.2 69.1 54.2 25.7 15.9 12.6 1.5 1.3 12.4 13.9
Ashok Ley. Buy 182 - 4.5 8.6 10.5 7,586.2 89.5 23.1 21.3 17.3 5.2 4.2 26.7 26.7
Bajaj Auto Neutral 4863 4905 1 214.2 267.5 295.8 16.7 24.9 10.6 18.2 16.4 5.1 4.8 28.9 30.2
Balkrishna Inds Neutral 2415 2240 -7 52.1 81.6 97.1 -29.3 56.5 19.0 29.6 24.9 5.5 4.8 19.6 20.5
Bharat Forge Buy 852 985 16 11.6 30.3 38.0 -46.4 160.6 25.4 28.1 22.4 5.1 4.3 19.4 20.7
Bosch Neutral 18913 18000 -5 483.0 619.6 700.7 17.0 28.3 13.1 30.5 27.0 4.7 4.3 15.9 16.5
CEAT Buy 2429 2400 -1 51.9 143.1 174.7 164.4 175.8 22.1 17.0 13.9 2.5 2.1 15.6 16.4
Craftsman Auto Buy 4513 4750 5 117.6 174.6 225.0 54.8 48.5 28.8 25.8 20.1 5.6 4.4 23.8 24.6
Eicher Mot. Neutral 3315 3700 12 106.5 139.3 170.0 73.7 30.8 22.0 23.8 19.5 5.2 4.3 23.4 24.2
Endurance Tech. Buy 1689 2000 18 34.7 52.1 64.2 0.4 50.2 23.3 32.5 26.3 4.7 4.1 15.5 16.7
Escorts Kubota Neutral 2344 2000 -15 51.3 75.0 95.9 -22.9 46.0 27.9 31.3 24.4 3.2 2.9 10.7 12.3
Exide Ind Buy 252 285 13 10.6 13.6 16.1 7.5 28.3 17.6 18.4 15.7 1.8 1.6 9.6 10.3
Hero Moto Buy 3100 3475 12 145.6 186.9 199.3 17.7 28.4 6.6 16.6 15.6 3.4 3.1 21.4 20.7
M&M Buy 1523 1665 9 64.9 78.9 88.5 51.6 21.6 12.2 19.3 17.2 3.6 3.1 20.0 19.2
CIE Automotive Buy 492 600 22 18.1 24.0 29.3 69.2 32.6 22.4 20.6 16.8 3.2 2.8 16.6 17.7
Maruti Suzuki Buy 9768 11000 13 271.8 369.1 421.1 111.7 35.8 14.1 26.5 23.2 4.3 3.8 16.0 16.3
MRF Sell 102021 78000 -24 1,813.6 3,551.3 4,151.0 14.9 95.8 16.9 28.7 24.6 2.7 2.4 9.8 10.4
Samvardh.
Buy 97 102 5 2.3 4.1 4.9 90.0 77.5 19.3 23.7 19.8 2.7 2.5 11.9 13.0
Motherson
Motherson Wiring Buy 58 73 26 1.1 1.7 2.0 4.3 51.6 20.3 34.7 28.8 14.4 11.5 47.5 44.3
Sona BLW Precis. Neutral 572 495 -13 5.0 8.6 11.4 -14.8 73.5 32.1 66.6 50.4 12.7 10.9 20.4 23.2
Tata Motors Buy 626 700 12 2.2 32.1 38.1 -107.6 1,391.4 18.7 19.5 16.4 4.2 3.4 24.1 23.2
TVS Motor Neutral 1343 1275 -5 30.4 42.9 50.6 60.7 41.2 17.7 31.3 26.6 8.2 6.4 29.5 27.1
Tube Investments Buy 3216 3615 12 40.5 60.2 74.2 7.4 48.3 23.4 53.5 43.3 12.6 10.1 26.1 25.8
Aggregate 126.7 64.4 16.4 22.9 19.7 4.2 3.6 18.1 18.4
Banks - Private
AU Small Finance Neutral 765 810 6 22.0 26.2 35.2 22.3 19 34.7 29.2 21.7 4.2 3.5 15.2 17.4
Axis Bank Buy 971 1150 18 71.4 82.1 96.6 68.0 15 17.6 11.8 10.1 1.9 1.6 18.0 17.7
Bandhan Bank Neutral 218 240 10 13.6 23.8 29.1 1,644.5 75 22.3 9.2 7.5 1.6 1.4 18.6 21.7
DCB Bank Neutral 124 125 1 14.9 18.0 21.7 61.7 20.4 20.9 6.9 5.7 0.8 0.7 12.4 13.4
Equitas Small Fin. Buy 96 105 9 4.9 7.3 9.4 106.8 50.0 29.5 13.2 10.2 1.8 1.6 14.7 16.7
Federal Bank Buy 134 155 16 14.3 16.4 19.7 54.8 14.7 20.5 8.2 6.8 1.2 1.0 15.0 15.8
HDFC Bank Buy 1676 2070 24 79.3 87.0 106.1 18.6 9.7 21.9 19.3 15.8 2.8 2.5 15.5 16.6
ICICI Bank Buy 997 1150 15 45.8 55.9 63.7 36.0 22.0 13.9 17.8 14.6 2.8 2.4 18.3 17.9
IDFC First Bk Buy 83 85 3 3.8 4.9 6.3 1,452.3 27.8 29.8 17.1 13.2 1.9 1.7 11.8 13.5
IndusInd Buy 1407 1600 14 96.0 121.0 154.2 54.7 26.0 27.4 11.6 9.1 1.7 1.5 16.0 17.5
Kotak Mah. Bk Neutral 1971 2170 10 75.9 90.7 103.2 28.6 19.5 13.8 21.7 19.1 3.1 2.7 14.8 14.3
-
RBL Bank Neutral 222 210 -5 14.7 20.9 26.1 42.4 24.6 10.6 8.5 0.9 0.8 8.9 10.3
1,279.2
SBI Cards Buy 845 930 10 23.9 28.2 39.8 39.3 18.2 40.9 29.9 21.2 6.5 5.1 24.2 26.9
Aggregate 40.4 31.3 20.1 17.3 14.4 2.7 2.3 15.6 16.2
Banks - PSU
BOB Buy 197 240 22 27.3 33.8 39.6 94.0 23.9 17.4 5.8 5.0 0.9 0.8 16.6 16.9
Canara Bank Buy 338 400 18 58.5 72.7 86.2 78.1 24.4 18.6 4.7 3.9 0.7 0.6 16.5 16.8
Indian Bank Buy 329 360 9 42.4 54.4 68.5 27.7 28.4 25.8 6.0 4.8 0.8 0.7 15.1 16.6
Punjab Natl.Bank Neutral 63 55 -12 2.3 6.4 8.9 -29.2 179.3 40.7 9.8 7.0 0.7 0.6 6.8 8.9
SBI Buy 615 700 14 62.4 75.0 89.1 57.3 20 18.8 8.2 6.9 1.3 1.1 18.3 18.1
Union Bank (I) Buy 90 110 22 12.3 18.0 22.2 56.1 46 22.8 5.0 4.1 0.7 0.7 16.1 17.6
Aggregate 58.4 28 21 7.1 5.9 1.1 0.9 15.0 15.9
NBFCs
AAVAS Financiers Neutral 1575 1530 -3 54.4 67.7 82.9 20.4 24.5 22.4 23.2 19.0 3.3 2.8 15.1 15.9
Aditya Birla Cap Buy 186 190 2 19.8 10.7 12.1 180.9 -46.1 13.4 17.4 15.3 2.0 1.8 12.1 12.3
Angel One Buy 1623 2050 26 107.5 122.2 146.4 42.5 13.7 19.8 13.3 11.1 4.8 3.8 40.9 38.5
Bajaj Fin. Buy 7582 8850 17 190.4 241.4 308.6 63.4 26.8 27.8 31.4 24.6 6.9 5.6 24.3 25.1
Cams Services Buy 2295 2600 13 58.1 66.0 81.8 -0.8 13.6 23.9 34.8 28.1 12.6 10.9 38.5 41.5
Can Fin Homes Neutral 838 900 7 46.6 55.7 62.7 31.9 19.4 12.6 15.0 13.4 2.6 2.2 18.6 17.7
Cholaman.Inv.&Fn Buy 1135 1350 19 32.4 44.6 58.8 24.0 37.6 31.8 25.5 19.3 5.3 4.2 22.9 24.1
CreditAccess Buy 1312 1660 27 52.0 89.6 107.7 127.1 72.4 20.2 14.6 12.2 3.2 2.5 24.5 23.2
24 July 2023 54
Click excel icon
valuation guide
Fusion Micro Buy 617 720 17 38.6 55.2 72.5 1,367.7 43.0 31.5 11.2 8.5 2.2 1.7 21.3 22.5
HDFC Life Insur. Neutral 647 700 8 6.3 7.5 8.9 10.7 18.8 18.3 86.2 72.8 3.0 2.5 19.2 18.8
Home First Fin. Buy 806 940 17 25.9 33.9 42.7 20.5 30.8 25.9 23.8 18.9 3.4 2.9 15.4 16.7
ICICI Pru Life Buy 551 670 22 5.6 5.3 8.5 7.4 -5.3 59.3 103.1 64.7 1.9 1.6 18.6 18.4
ICICI Lombard Buy 1409 1550 10 35.2 40.1 48.8 36.0 14.0 21.5 35.1 28.9 5.9 5.2 17.9 19.2
Under
ICICI Securities 632 - 34.9 39.4 43.6 -18.6 12.8 10.8 16.0 14.4 6.0 5.2 40.2 38.8
Review
360 ONE WAM Buy 516 620 20 18.5 20.7 24.5 13.5 12.0 18.4 25.1 21.2 5.7 5.4 23.2 26.1
IndoStar Buy 163 175 7 16.5 11.3 19.3 -130.6 -31.9 71.7 14.5 8.4 0.7 0.6 4.8 7.8
L&T Fin Holdings Buy 130 160 24 6.5 9.1 10.5 51.2 39.1 15.1 14.2 12.4 1.4 1.3 10.1 10.8
Life Insurance
Buy 636 830 30 57.5 25.2 29.0 800.2 -56.2 15.1 25.3 22.0 0.6 0.6 12.1 11.2
Corp.
LIC Hsg Fin Buy 386 440 14 52.5 69.7 79.3 26.4 32.8 13.7 5.5 4.9 0.7 0.6 13.5 13.8
Manappuram Fin. Buy 129 160 24 17.7 23.2 26.9 12.9 30.7 16.1 5.6 4.8 1.0 0.8 18.7 18.6
MAS Financial Buy 766 910 19 36.8 45.8 59.3 27.6 24.6 29.5 16.7 12.9 2.5 2.1 15.9 17.7
Max Financial Neutral 802 800 0 10.4 13.4 15.7 28.3 28.8 17.0 59.7 51.0 1.7 1.4 21.8 20.6
M&M Fin. Buy 313 400 28 16.1 17.9 22.8 100.6 11.3 27.1 17.5 13.7 2.2 2.0 13.0 15.1
Muthoot Fin Neutral 1286 1260 -2 86.5 106.6 118.9 -12.2 23.3 11.5 12.1 10.8 2.1 1.8 18.9 18.2
Piramal Enterp. Buy 995 1165 17 74.9 103.3 83.5 7.5 38.0 -19.2 9.6 11.9 0.7 0.7 7.7 6.0
PNB Housing Neutral 650 525 -19 61.9 52.7 59.8 24.9 -14.9 13.4 12.3 10.9 1.1 1.0 10.6 10.0
Poonawalla
Buy 375 420 12 7.6 12.0 17.2 98.7 57.9 42.8 31.2 21.8 2.8 2.5 11.0 12.1
Fincorp
Repco Home Fin Neutral 305 310 2 47.3 52.7 59.7 54.7 11.3 13.3 5.8 5.1 0.7 0.6 12.3 12.4
Spandana
Buy 732 865 18 1.7 58.7 81.7 -82.7 3,264.0 39.0 12.5 9.0 1.5 1.3 12.6 15.2
Sphoorty
Shriram Finance Buy 1833 2100 15 159.7 184.6 212.0 42.0 15.6 14.9 9.9 8.6 1.4 1.2 15.0 15.3
SBI Life Insurance Buy 1291 1500 16 17.2 19.1 21.9 14.3 11.2 14.3 67.4 59.0 2.3 1.9 22.4 21.5
Star Health Insu Buy 640 700 9 10.6 18.6 22.9 -158.5 74.9 23.0 34.4 28.0 4.9 4.1 15.2 16.0
Aggregate 74.3 1.5 19.4 18.1 15.2 2.8 2.4 15.2 15.9
Chemicals
Alkyl Amines Neutral 2434 2375 -2 44.7 53.1 67.9 1.6 18.8 27.8 45.8 35.9 9.0 7.5 21.3 22.9
Atul Neutral 7013 6200 -12 169.0 172.5 207.8 -15.0 2.1 20.5 40.6 33.9 4.0 3.7 10.4 11.4
Clean Science Neutral 1318 1370 4 27.8 31.6 34.3 29.2 13.6 8.5 41.7 38.5 10.9 8.8 29.2 25.4
Deepak Nitrite Neutral 1979 2200 11 62.5 80.3 88.0 -20.1 28.5 9.6 24.7 22.5 5.3 4.4 23.9 21.5
Fine Organic Neutral 4708 4630 -2 192.6 154.7 132.3 135.6 -19.7 -14.5 30.4 35.6 7.8 6.8 28.1 20.3
Galaxy Surfact. Buy 2687 3210 19 107.5 100.5 107.0 45.0 -6.5 6.5 26.7 25.1 4.4 3.9 17.6 16.4
Navin Fluorine Neutral 4388 5000 14 75.7 113.0 142.9 42.6 49.2 26.4 38.8 30.7 8.2 6.7 23.1 24.0
NOCIL Buy 212 265 25 8.9 10.4 13.2 -15.5 16.5 27.3 20.4 16.0 2.1 2.0 10.8 12.8
Vinati Organics Buy 1817 2185 20 44.6 46.7 62.4 32.1 4.9 33.6 38.9 29.1 7.1 5.9 19.8 22.2
Aggregate 10.1 12.0 12.3 32.7 29.1 5.8 5.0 17.8 17.2
Cement
Ambuja Cem. Neutral 416 390 -6 12.7 10.5 10.8 18.2 -17.4 2.7 39.7 38.6 2.8 2.2 11.9 10.0
ACC Neutral 1767 2000 13 52.6 66.2 90.6 -47.6 25.7 37.0 26.7 19.5 2.2 2.0 8.5 10.7
Birla Corp. Buy 1197 1460 22 4.7 46.9 70.0 -91.4 901.6 49.2 25.5 17.1 1.5 1.4 5.9 8.3
Dalmia Bhar. Buy 1921 2400 25 36.5 43.3 60.4 -16.5 18.6 39.5 44.4 31.8 2.2 2.1 5.1 6.8
Grasim Inds. Buy 1805 2050 14 99.0 90.2 91.5 -11.2 -8.9 1.4 20.0 19.7 2.5 2.4 4.7 3.4
-
India Cem Sell 207 150 -28 -15.2 0.6 6.4 LP 960.9 344.9 32.5 1.1 1.1 0.3 3.5
1,301.2
J K Cements Buy 3186 3660 15 60.2 89.6 110.7 -32.3 49.0 23.5 35.5 28.8 4.7 4.2 14.0 15.4
JK Lakshmi Ce Buy 662 870 32 30.5 43.9 54.1 -15.2 44.1 23.1 15.1 12.2 2.4 2.0 17.0 18.0
Ramco Cem Neutral 887 915 3 14.5 23.7 33.9 -41.8 63.3 43.0 37.4 26.1 2.9 2.6 8.0 10.5
Shree Cem Neutral 23095 23950 4 325.3 495.7 590.8 -48.3 52.4 19.2 46.6 39.1 4.2 3.9 9.4 10.4
Ultratech Buy 8127 9085 12 175.4 243.8 286.2 -10.6 39.0 17.4 33.3 28.4 3.9 3.5 12.3 13.0
Aggregate -20.6 19.0 18.4 30.4 25.7 3.0 2.6 9.7 10.1
Consumer
Asian Paints Neutral 3517 3100 -12 44.2 54.3 62.0 32.6 22.8 14.2 64.7 56.7 19.9 17.8 31.6 33.1
Britannia Neutral 5045 4660 -8 80.3 91.4 103.5 27.6 13.7 13.2 55.2 48.7 40.1 35.7 67.1 77.4
Colgate Neutral 1833 1575 -14 38.9 43.3 47.7 1.1 11.3 10.1 42.3 38.5 29.0 29.0 68.6 75.5
Dabur Buy 565 660 17 9.6 11.1 13.1 -6.9 16.0 17.9 50.7 43.0 10.1 9.2 20.9 22.3
Emami Buy 421 494 17 17.6 21.0 23.5 -8.2 19.3 11.8 20.0 17.9 7.5 6.5 38.6 38.9
24 July 2023 55
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valuation guide
Godrej Cons. Buy 1056 1240 17 17.2 21.2 27.0 -2.0 23.6 27.4 49.8 39.0 7.3 6.8 15.2 18.0
HUL Buy 2604 3100 19 42.7 46.5 53.1 13.2 9.1 14.2 55.9 49.0 12.6 13.2 22.2 26.3
ITC Buy 490 520 6 15.1 17.4 19.9 23.5 15.6 14.1 28.1 24.6 8.5 8.1 31.2 33.7
Indigo Paints Buy 1500 1790 19 24.3 32.8 44.7 37.6 35.1 36.0 45.7 33.6 7.9 6.7 18.6 21.6
Jyothy Lab Neutral 243 230 -5 6.3 8.0 9.7 46.2 27.0 20.1 30.1 25.1 5.4 5.0 18.4 20.7
Marico Buy 539 610 13 10.1 11.5 13.6 6.3 13.8 18.1 46.9 39.8 15.4 14.3 35.7 37.3
Nestle Neutral 22975 20500 -11 247.9 298.3 358.7 3.1 20.3 20.2 77.0 64.1 90.7 84.4 117.4 136.5
Page Inds Neutral 36658 38610 5 512.2 581.7 728.5 6.5 13.6 25.2 63.0 50.3 25.1 20.9 39.8 41.5
Pidilite Ind. Neutral 2662 2355 -12 25.2 35.8 42.8 7.3 42.1 19.5 74.3 62.2 16.5 14.4 23.6 24.7
P&G Hygiene Neutral 15729 15510 -1 171.3 257.5 310.2 -5.1 50.4 20.4 61.1 50.7 54.6 44.9 93.8 97.4
Tata Consumer Buy 852 985 16 11.7 15.5 19.3 10.3 32.5 25.1 55.1 44.1 4.6 4.1 8.6 9.7
United Brew Sell 1522 1140 -25 12.5 20.4 32.4 -3.0 63.5 59.0 74.7 47.0 9.5 8.5 13.1 19.1
United Spirits Neutral 1039 960 -8 12.7 14.5 17.4 -4.5 13.6 20.5 71.9 59.7 11.1 10.9 15.4 18.3
Varun Beverages Buy 801 940 17 11.5 15.4 18.9 115.8 33.7 22.9 51.9 42.3 15.1 11.5 33.4 30.8
Aggregate 15.1 17.3 16.2 46.6 40.1 12.3 11.7 26.4 29.1
Healthcare
Alembic Phar Neutral 691 590 -15 21.9 30.2 34.8 -37.6 38.0 15.4 22.9 19.8 2.8 2.5 12.7 13.2
Alkem Lab Neutral 3701 3434 -7 106.0 137.5 165.2 -23.2 29.7 20.1 26.9 22.4 4.3 3.7 17.0 17.8
Ajanta Pharma Buy 1413 1620 15 49.2 56.1 69.5 -10.0 14.0 23.8 25.2 20.3 4.6 3.9 19.4 20.7
Apollo Hospitals Buy 5203 5860 13 48.2 80.9 119.3 -29.3 68.0 47.5 64.3 43.6 9.9 8.2 17.3 20.6
Aurobindo Neutral 779 710 -9 38.4 45.8 52.1 -12.8 19.3 13.8 17.0 14.9 1.6 1.4 9.6 10.0
Biocon Neutral 264 260 -2 5.4 12.2 16.6 -27.2 127.0 36.5 21.7 15.9 1.7 1.6 7.9 10.2
Zydus Lifesciences Neutral 613 560 -9 22.4 28.1 29.2 3.9 25.3 4.1 21.8 21.0 3.0 2.7 15.1 13.8
Cipla Neutral 1049 1010 -4 37.8 41.5 47.1 6.8 10.0 13.5 25.3 22.3 3.3 2.9 13.0 13.1
Divis Lab Neutral 3686 3070 -17 64.9 68.5 90.6 -41.2 5.5 32.2 53.8 40.7 7.0 6.2 13.6 16.2
Dr Reddy’s Neutral 5288 4680 -11 244.7 245.5 273.3 39.2 0.3 11.3 21.5 19.3 3.3 2.9 16.4 15.8
ERIS Lifescience Buy 744 820 10 27.2 31.9 34.6 -7.8 17.4 8.2 23.3 21.5 4.0 3.5 18.6 17.5
Gland Pharma Buy 1235 1330 8 50.4 47.9 59.3 -31.4 -5.0 23.8 25.8 20.8 2.3 2.1 9.4 10.6
Glenmark Neutral 753 624 -17 28.5 37.1 48.1 -17.5 30.1 29.6 20.3 15.7 2.1 1.9 10.9 12.7
GSK Pharma Neutral 1398 1310 -6 35.9 37.3 40.7 6.0 3.7 9.2 37.5 34.4 11.5 10.4 30.6 30.1
Granules India Buy 310 350 13 21.6 24.4 29.7 30.6 13.1 21.5 12.7 10.4 2.2 1.8 19.0 19.2
IPCA Labs Neutral 794 710 -11 20.8 24.8 34.2 -42.8 19.5 37.5 32.0 23.2 3.2 2.8 10.3 12.8
Laurus Labs Buy 349 430 23 14.7 13.4 18.3 -4.7 -9.1 36.4 26.1 19.1 4.0 3.4 16.6 19.4
Lupin Sell 935 720 -23 8.6 25.3 33.3 -55.0 194.3 31.4 36.9 28.1 3.2 2.9 8.9 10.7
Max Healthcare Buy 602 660 10 14.1 15.2 17.1 55.3 7.4 13.0 39.7 35.2 6.1 5.2 16.7 16.0
Piramal Pharma Buy 104 110 5 -0.7 1.5 3.2 LP 104.7 67.4 32.9 1.8 1.7 2.7 5.3
Solara Active
Buy 383 460 20 -6.2 14.7 26.7 -59.4 LP 81.7 26.0 14.3 0.9 0.9 3.5 6.2
Pharma
Sun Pharma Buy 1098 1206 10 35.8 39.1 44.9 14.4 9.3 14.8 28.1 24.5 4.1 3.6 15.7 15.7
Torrent Pharma Neutral 1940 1810 -7 37.2 50.2 63.7 8.3 35.1 26.9 38.6 30.4 7.9 3.9 23.4 25.9
Aggregate -4.2 18.7 19.0 28.6 24.1 3.7 3.3 12.9 13.7
Infrastructure
G R Infraproject Buy 1295 1500 16 88.1 83.8 100.7 11.5 -4.9 20.2 15.5 12.9 2.1 1.8 14.4 15.0
IRB Infra Neutral 26 30 16 1.2 1.5 1.6 99.2 22.4 12.8 17.7 15.7 1.1 1.1 6.4 6.9
KNR Constructions Buy 242 295 22 14.7 16.6 18.2 15.1 12.5 10.0 14.6 13.3 2.1 1.8 15.8 14.9
Aggregate 16.2 14.1 1.5 1.4 9.3 9.7
Logistics
Blue Dart Express Buy 7226 8250 14 154.4 181.4 252.0 -11.1 17.5 39.0 39.8 28.7 11.1 8.6 30.6 33.7
Concor Buy 675 760 13 19.2 22.5 28.2 10.2 16.9 25.6 30.1 23.9 3.4 3.2 11.8 13.8
Mahindra Logistics Neutral 409 385 -6 3.7 6.6 17.5 49.7 81.0 163.3 61.6 23.4 5.0 4.2 8.3 19.5
Transport Corp. Buy 755 815 8 41.6 45.6 53.9 10.7 9.7 18.2 16.5 14.0 2.9 2.4 18.6 18.5
TCI Express Buy 1498 1900 27 36.4 43.6 52.9 8.1 20.0 21.3 34.3 28.3 7.8 6.3 25.1 24.7
VRL Logistics Buy 734 850 16 18.8 26.5 34.9 6.4 41.0 31.5 27.7 21.1 5.6 4.7 22.0 24.3
Aggregate 30.5 23.5 4.4 3.9 14.4 16.6
Media
PVR Inox Neutral 1503 1435 -5 -24.8 38.9 67.3 -63.9 LP 72.9 38.6 22.3 1.9 1.8 5.1 8.2
Sun TV Buy 527 490 -7 42.5 43.4 46.9 1.8 2.0 8.2 12.1 11.2 2.1 2.0 17.5 17.7
Zee Ent. Buy 221 210 -5 4.8 7.3 10.3 -59.0 53.4 41.1 30.2 21.4 1.9 1.8 6.4 8.7
Aggregate -13.5 38.0 25.3 20.3 16.2 2.0 1.9 9.8 11.5
Metals
24 July 2023 56
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valuation guide
Coal India Buy 229 300 31 45.6 32.5 34.9 61.8 -28.7 7.3 7.0 6.6 2.1 1.8 29.8 27.6
Hindalco Buy 435 540 24 45.3 41.6 41.0 -26.2 -8.2 -1.4 10.5 10.6 1.2 1.1 12.6 11.1
Hind. Zinc Neutral 318 300 -6 24.9 22.3 28.1 7.7 -10.2 25.8 14.2 11.3 7.4 5.2 60.8 54.0
JSPL Buy 628 720 15 36.4 47.9 70.6 -57.7 31.6 47.4 13.1 8.9 1.5 1.3 11.8 15.4
JSW Steel Neutral 786 730 -7 14.7 47.0 72.8 -83.4 219.5 55.0 16.7 10.8 2.5 2.1 16.2 21.5
Nalco Neutral 92 85 -8 8.3 9.9 10.7 -48.2 18.2 8.7 9.3 8.6 1.2 1.1 13.2 13.0
NMDC Buy 111 130 17 16.5 17.2 16.6 -48.5 4.1 -3.7 6.5 6.7 1.3 1.2 21.0 18.1
SAIL Neutral 90 80 -11 4.8 9.5 10.4 -84.0 97 8.7 9.5 8.7 0.6 0.6 7.0 7.2
Tata Steel Neutral 117 110 -6 7.1 9.6 11.8 -78.5 36 22.7 12.1 9.9 1.4 1.3 11.7 13.4
Vedanta Neutral 278 280 1 29.0 25.3 30.9 -44.9 -13 22.2 11.0 9.0 2.9 2.7 25.3 31.3
Aggregate -46.2 3.7 20.0 11.1 9.2 1.8 1.6 15.8 17.0
Oil & Gas
Aegis Logistics Neutral 356 330 -7 14.6 13.6 15.0 43.7 -6.9 10.0 26.1 23.7 3.2 3.0 13.0 13.1
BPCL Neutral 391 390 0 9.4 87.7 39.4 -81.9 830.9 -55.1 4.5 9.9 1.3 1.2 31.4 12.6
Castrol India Buy 135 140 4 8.2 8.4 9.3 7.5 1.5 11.2 16.1 14.5 6.5 5.9 41.9 42.6
GAIL Buy 111 125 12 8.1 13.1 14.2 -48.5 62.2 8.9 8.5 7.8 1.1 1.0 14.7 14.4
Gujarat Gas Buy 469 620 32 22.2 20.1 23.9 17.8 -9.4 18.9 23.4 19.7 4.1 3.5 18.5 19.2
Gujarat St. Pet. Buy 285 333 17 16.8 17.6 18.4 -3.5 5.3 4.1 16.2 15.5 1.6 1.5 10.3 10.0
HPCL Neutral 301 270 -10 -49.2 98.5 48.9 -195.7 LP -50.4 3.1 6.2 1.0 0.9 37.4 15.3
IOC Buy 99 111 12 8.5 24.8 12.5 -54.5 191.4 -49.4 4.0 7.9 0.9 0.8 22.8 10.5
IGL Sell 495 - 20.6 20.8 22.1 9.9 0.9 5.9 23.8 22.4 4.3 3.8 19.2 17.9
Mahanagar Gas Buy 1066 1345 26 80.0 85.8 84.1 32.3 7.3 -2.0 12.4 12.7 2.3 2.0 19.3 17.0
MRPL Neutral 87 80 -8 7.3 10.1 6.7 -11.4 38.4 -33.5 8.6 12.9 2.5 2.2 32.5 17.9
Oil India Buy 258 335 30 60.3 41.9 44.7 75.2 -30.5 6.7 6.2 5.8 0.8 0.7 13.2 13.1
ONGC Buy 170 220 29 30.4 42.9 44.0 -5.8 41.4 2.4 4.0 3.9 0.7 0.6 18.4 16.9
PLNG Neutral 224 225 1 21.6 19.1 18.7 -3.4 -11.7 -1.8 11.7 11.9 2.0 1.9 18.2 16.3
Reliance Ind. Buy 2536 2935 16 98.6 106.2 121.9 14.2 7.7 14.9 24.1 21.0 1.9 1.7 8.4 8.9
Aggregate -19.6 61.1 -10.0 10.8 12.0 1.4 1.3 13.4 11.0
Real Estate
Brigade Enterpr. Buy 573 720 26 12.1 25.3 32.6 42.2 108.8 28.9 22.7 17.6 3.1 2.7 14.8 16.5
DLF Neutral 501 - 11.4 17.0 25.3 69.7 49.0 49.0 29.5 19.8 2.2 2.0 7.8 10.8
Godrej Propert. Buy 1627 1750 8 22.4 32.7 43.9 77.2 46.4 34.2 49.7 37.1 4.4 3.9 9.4 12.7
Oberoi Realty Buy 1058 1140 8 52.4 38.7 51.5 81.9 -26.0 32.9 27.3 20.6 2.8 2.5 10.9 13.0
Macrotech Devel. Buy 706 775 10 16.0 14.5 18.5 27.9 -9.0 27.3 48.6 38.2 4.9 4.5 10.6 12.3
Mahindra
Buy 483 520 8 3.0 6.4 10.1 168.4 114.3 58.6 75.6 47.7 3.9 3.6 5.3 7.9
Lifespace
Sobha Buy 559 750 34 10.8 19.4 42.8 -39.8 78.9 120.9 28.9 13.1 2.0 1.8 7.2 14.5
Prestige Estates Buy 542 675 24 19.2 17.1 14.1 58.5 -10.9 -17.5 31.6 38.3 1.9 1.8 6.2 4.9
Phoenix Mills Buy 1640 1750 7 40.9 51.6 72.1 207.5 26.3 39.6 31.8 22.7 3.2 2.8 10.5 13.0
Aggregate 49.4 14.7 38.2 38.7 28.0 3.3 3.0 8.6 10.8
Retail
Avenue
Buy 3676 4420 20 36.7 44.4 59.4 59.4 20.9 33.9 82.8 61.9 12.1 10.1 16.4 18.4
Supermarts
Aditya Birla
Neutral 213 195 -9 -0.7 -1.8 -1.9 -45.7 Loss Loss NM NM 4.7 4.9 -4.6 -4.3
Fashion
Bata India Neutral 1684 1660 -1 25.1 31.5 40.9 213.3 25.5 29.8 53.5 41.2 11.7 9.1 24.7 25.0
Barbeque-Nation Neutral 672 660 -2 3.9 9.0 11.6 -159.6 127.7 29.5 75.1 58.0 6.0 5.4 8.0 9.4
Campus Activewe. Buy 309 395 28 3.8 4.9 7.1 -8.6 28.3 45.6 63.0 43.3 13.5 10.3 21.4 23.7
Devyani Intl. Buy 198 215 9 2.3 2.5 3.4 18.9 8.1 35.7 78.2 57.6 19.8 15.6 28.0 30.3
Jubilant Food. Buy 467 575 23 6.1 6.4 8.6 -7.6 4.9 34.9 72.9 54.0 12.5 13.2 17.2 24.5
Metro Brands Buy 1087 1070 -2 13.3 14.0 19.3 70.7 5.4 37.4 77.6 56.5 16.2 13.6 22.8 26.8
Relaxo Footwear Neutral 921 810 -12 6.2 10.5 14.6 -33.6 68.7 39.4 88.0 63.2 11.2 9.9 13.3 16.6
Restaurant Brands Buy 112 125 11 -4.9 -1.3 1.9 14.8 Loss LP NM 59.7 7.1 6.3 -8.1 10.5
Sapphire Foods Buy 1422 1600 13 17.0 22.5 29.1 134.6 32.4 29.4 63.2 48.9 6.5 5.7 10.8 12.4
Shoppers Stop Neutral 781 750 -4 14.5 16.9 24.0 -269.2 16.4 42.1 46.2 32.5 17.5 11.4 46.6 42.3
Titan Company Buy 2976 3325 12 36.8 44.8 55.3 40.2 21.8 23.4 66.4 53.8 18.1 14.9 30.1 30.4
Trent Buy 1714 1935 13 11.1 22.6 30.6 835.7 103.3 35.4 75.7 56.0 16.8 12.7 26.8 27.6
V-Mart Retail Buy 2216 2540 15 -4.3 -3.8 55.2 -167.4 Loss LP NM 40.1 4.8 4.3 NM 11.2
Vedant Fashions Buy 1281 1440 12 17.7 20.5 25.3 36.2 15.8 23.9 62.6 50.5 18.9 15.5 32.1 32.7
Westlife Neutral 889 800 -10 7.2 9.7 13.4 - 34.9 38.7 92.1 66.4 19.4 15.0 23.5 25.4
24 July 2023 57
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valuation guide
Foodworld 6,783.9
Aggregate 58.1 26.3 33.2 77.3 58.0 13.8 11.6 17.8 20.0
Technology
Cyient Buy 1476 1720 17 52.4 69.9 81.8 9.6 33.5 17.0 21.1 18.0 4.3 3.9 21.3 22.8
HCL Tech. Buy 1117 1280 15 54.8 57.9 67.2 10.0 5.6 16.2 19.3 16.6 4.7 4.7 24.1 28.4
Infosys Buy 1330 1600 20 57.6 59.8 70.6 9.8 3.9 18.1 22.2 18.8 7.3 7.3 32.8 38.6
LTI Mindtree Neutral 4923 4700 -5 151.8 164.2 204.3 14.8 8.2 24.4 30.0 24.1 7.5 6.3 26.9 28.4
L&T Technology Buy 4043 4760 18 110.5 126.6 153.5 22.1 14.5 21.2 31.9 26.3 8.1 7.0 26.2 28.6
Mphasis Neutral 2331 2250 -3 86.9 87.4 107.3 15.8 0.6 22.8 26.7 21.7 5.1 4.7 20.0 22.6
Coforge Neutral 4639 4460 -4 130.6 166.0 194.0 17.7 27.1 16.9 28.0 23.9 7.8 6.5 30.0 29.5
Persistent Sys Neutral 4750 4600 -3 124.4 152.2 184.0 36.2 22.3 20.9 31.2 25.8 7.6 6.4 27.1 27.5
TCS Buy 3370 3790 12 115.3 128.2 151.6 10.9 11.3 18.2 26.3 22.2 14.0 14.5 52.6 64.2
Tech Mah Neutral 1195 1110 -7 57.3 56.5 69.4 -8.6 -1.3 22.8 21.1 17.2 3.7 3.5 17.7 21.0
Wipro Neutral 405 380 -6 20.7 21.4 24.4 -5.5 3.1 14.4 18.9 16.6 3.0 2.9 15.5 18.1
Zensar Tech Neutral 485 470 -3 14.4 24.1 26.1 -21.6 68.0 8.2 20.1 18.6 3.4 3.1 17.6 17.4
Aggregate 7.1 7.6 18.2 24.5 20.8 7.5 7.3 30.4 35.3
Telecom
Bharti Airtel Buy 886 950 7 13.6 19.9 29.8 115.5 46.7 49.6 44.4 29.7 4.5 3.9 11.9 14.2
Indus Towers Neutral 170 160 -6 8.9 21.2 23.4 -62.3 137.5 10.5 8.0 7.2 1.7 1.4 23.8 21.0
Vodafone Idea 8 -10.2 -9.5 -8.3 3.1 Loss Loss NM NM -0.2 -0.2 NM NM
Tata Comm Neutral 1589 1450 -9 60.7 52.7 65.1 17.1 -13.3 23.6 30.2 24.4 16.8 10.8 71 53.8
Aggregate Loss Loss LP -70 604.7 16.4 16.1 -23.5 2.7
Others
APL Apollo Tubes Buy 1424 1540 8 23.1 33.7 46.3 15.2 45.5 37.4 42.3 30.8 10.4 8.0 27.4 29.4
BSE Neutral 738 620 -16 15.2 22.6 25.7 -16.0 48.5 13.8 32.6 28.7 3.6 3.4 10.9 12.0
Coromandel Intl Buy 981 1160 18 68.5 67.6 72.8 31.5 -1.3 7.6 14.5 13.5 3.0 2.6 22.9 20.7
EPL Buy 224 270 21 7.2 9.5 12.7 6.3 31.9 33.5 23.5 17.6 3.3 3.0 14.6 17.8
Godrej Agrovet Neutral 487 445 -9 13.0 15.0 19.4 -39.9 15.7 28.8 32.4 25.2 3.9 3.6 12.1 14.8
Havells India Buy 1303 1580 21 17.2 21.7 28.7 -10.1 26.3 32.4 60.1 45.4 10.9 9.4 18.1 20.7
Indiamart Inter. Buy 3152 3640 15 46.4 52.8 70.7 -4.5 13.9 33.8 59.7 44.6 8.3 7.3 14.8 17.5
Indian Hotels Buy 393 440 12 7.0 8.7 10.3 -485.5 22.9 18.6 45.4 38.3 6.1 5.4 14.4 14.9
Interglobe Neutral 2679 2300 -14 -8.2 110.2 126.0 -94.9 LP 14 24 21.3 -50.1 36.7 -101.7 1,298.8
Info Edge Neutral 4652 4220 -9 31.8 61.2 72.5 -6.7 92.4 18.4 76.0 64.2 5.1 4.7 6.2 13.1
Kaveri Seed Buy 574 605 5 46.6 54.4 60.5 27.9 16.8 11.1 10.5 9.5 2.1 1.7 21.2 19.8
Kajaria Ceramics Buy 1431 1490 4 22.1 30.0 37.4 -8.0 35.7 24.4 47.7 38.3 8.9 8.0 19.5 21.9
Lemon Tree Hotel Buy 92 115 25 1.5 1.7 3.1 -255.5 14.3 79.6 53.0 29.5 7.2 5.8 14.7 21.9
MCX Neutral 1622 1400 -14 29.2 13.5 59.0 3.8 -53.9 338.6 120.5 27.5 5.5 5.3 4.6 19.8
One 97 Buy 844 1000 19 -28.0 -15.5 3.0 -24.1 Loss LP NM NM 4.2 4.2 -7.7 1.5
Quess Corp Neutral 431 440 2 11.5 23.7 37.1 -35.3 106.7 56.6 18.2 11.6 1.8 1.6 13.5 19.5
PI Inds. Buy 3674 4510 23 80.9 106.8 125.2 45.7 32.0 17.2 34.4 29.3 6.4 5.4 20.5 20.0
SIS Buy 422 520 23 23.2 26.0 34.3 19.7 12.0 31.7 16.2 12.3 1.1 0.9 15.3 17.3
SRF Neutral 2214 2460 11 76.2 86.1 101.0 24.8 12.9 17.4 25.7 21.9 5.3 4.4 22.4 21.8
Tata Chemicals Neutral 987 1080 9 91.6 80.2 70.7 84.8 -12.4 -11.8 12.3 14.0 1.2 1.1 10.0 8.2
Team Lease Serv. Buy 2460 2890 17 65.1 76.5 114.8 189.8 17.5 50.0 32.2 21.4 4.4 3.6 15.0 19.0
Trident Buy 33 40 20 0.9 1.4 2.2 -45.8 65.7 50.5 23.3 15.5 3.4 2.8 16.0 20.3
UPL Neutral 635 725 14 58.5 64.2 72.5 -7.8 9.7 13.0 9.9 8.7 1.0 0.9 16.5 15.9
Zomato Buy 80 85 6 -1.2 -0.3 0.3 -28.0 Loss LP NM 270.6 3.6 3.6 -1.4 1.3
24 July 2023 58
Index and MOFSL Universe stock performance
Index 1 Day (%) 1M (%) 12M (%) Index 1 Day (%) 1M (%) 12M (%)
Sensex -1.3 5.0 19.8 Nifty 500 -0.8 4.1 18.4
Nifty-50 -1.2 4.7 18.9 Nifty Midcap 100 -0.4 3.3 26.7
Nifty Next 50 -0.4 0.6 9.6 Nifty Smallcap 100 0.7 6.4 26.8
Nifty 100 -1.1 4.1 16.1 Nifty Midcap 150 -0.2 3.1 25.5
Nifty 200 -1.0 4.0 17.5 Nifty Smallcap 250 0.3 5.5 27.7
Company 1 Day (%) 1M (%) 12M (%) Aditya Birla Capital Ltd -0.1 3.2 86.0
Automobiles 0.1 5.5 23.9 Bajaj Fin. -0.2 5.3 21.0
Amara Raja Batt. 2.0 -2.7 29.5 Cholaman.Inv.&Fn -1.9 0.1 65.5
Apollo Tyres -0.2 -0.3 96.3 Can Fin Homes 0.6 12.6 55.0
Ashok Leyland 3.6 11.0 23.3 Cams Services 0.9 4.9 -3.0
Bajaj Auto -0.1 4.6 19.8 CreditAcc. Gram. -0.4 -0.2 24.3
Balkrishna Inds 0.3 -2.4 7.3 Fusion Microfin. -0.6 15.8
Bharat Forge 0.0 4.6 23.7 Home First Finan -0.6 5.3 3.6
Bosch -0.7 -1.5 15.5 Indostar Capital 5.0 2.6 21.8
CEAT -2.3 17.8 93.9 L&T Fin.Holdings -1.3 4.7 78.6
Craftsman Auto -1.5 12.8 71.0 LIC Housing Fin. -0.5 -4.9 4.4
Eicher Motors -0.1 -7.2 7.5 M & M Fin. Serv. -2.6 -4.0 49.7
Endurance Tech. 0.6 7.6 13.8 Muthoot Finance -0.6 4.3 23.1
Escorts Kubota 0.0 7.7 35.2 Manappuram Fin. 2.1 0.9 35.8
Exide Inds. 0.3 9.3 65.6 MAS Financial Serv. -0.9 -2.9 45.9
Hero Motocorp 0.4 9.8 8.9 ICICI Sec 0.2 22.7 35.4
M&M -1.4 10.8 29.5 360 One -1.0 17.1 29.4
CIE Automotive -6.2 -4.0 98.0 PNB Housing -0.3 7.8 120.5
Maruti Suzuki -0.1 3.5 11.0 Repco Home Fin -1.5 -2.5 100.3
MRF 0.2 1.6 27.2 Shriram Finance 2.9 5.7 25.4
Sona BLW Precis. 1.6 11.5 -1.1 Spandana Sphoort -0.6 6.4 67.5
Motherson Sumi 0.3 12.9 8.1 Insurance
Motherson Wiring -0.7 1.0 -0.4 HDFC Life Insur. -2.2 0.8 22.3
Tata Motors 0.7 7.7 37.6 ICICI Pru Life 0.5 -3.0 3.9
TVS Motor Co. -0.2 -0.6 52.6 ICICI Lombard 0.8 8.2 15.0
Tube Investments 1.6 1.5 46.7 Life Insurance 1.3 0.0 -7.5
Banks-Private -0.2 5.2 28.3 Max Financial -1.9 8.4 -4.7
AU Small Fin. Bank -0.9 2.1 30.4 SBI Life Insuran -1.7 -0.3 10.5
Axis Bank -0.7 0.6 35.7 Star Health Insu -0.8 16.3 -4.2
Bandhan Bank 2.9 -9.8 -23.1 Chemicals
DCB Bank -0.7 4.5 39.3 Alkyl Amines -1.2 -7.9 -13.3
Equitas Sma. Fin 3.4 11.7 36.3 Atul 6.6 -0.6 -14.5
Federal Bank -2.1 8.6 25.0 Clean Science 0.2 -3.8 -22.6
HDFC Bank -0.8 2.4 23.1 Deepak Nitrite -0.7 -12.4 6.0
ICICI Bank 0.1 7.8 26.8 Fine Organic -0.7 -1.9 -7.4
IDFC First Bank 1.8 0.8 131.7 Galaxy Surfact. -0.6 -5.6 -11.8
IndusInd Bank -1.2 9.4 48.4 Navin Fluo.Intl. -2.0 -6.0 16.6
Kotak Mah. Bank 0.7 6.8 9.5 NOCIL -0.1 -3.0 -26.8
RBL Bank 0.9 28.8 133.4 Vinati Organics -0.4 -1.5 -11.4
SBI Cards -0.9 -4.5 -4.3 Cement
Banks-PSU 0.2 11.1 64.7 Ambuja Cem. -1.1 -7.1 12.3
BOB -1.1 -0.7 72.7 ACC -1.9 -4.3 -18.7
Canara Bank -0.5 10.3 49.4 Birla Corp. -1.0 -3.6 27.5
Indian Bank 0.4 17.0 86.5 Dalmia Bhar. -4.9 -15.0 24.6
Punjab Natl.Bank -2.0 18.4 96.5 Grasim Inds. -0.8 1.4 23.2
St Bk of India 0.8 8.6 20.1 India Cem -1.8 -10.5 14.6
Union Bank (I) 3.8 27.5 136.7 J K Cements -0.7 -6.4 39.8
NBFCs -0.2 4.6 23.7 JK Lakshmi Ce -1.4 -7.9 44.6
Angel Broking 3.3 0.1 16.9 Ramco Cem -2.1 -6.5 31.8
Note: Sectoral performance are of NSE/BSE Indices
24 July 2023 59
Company 1 Day (%) 1M (%) 12M (%) Company 1 Day (%) 1M (%) 12M (%)
Shree Cem -1.3 -10.1 12.7 TCI Express -1.2 -7.9 -9.8
Ultratech -1.2 -1.4 32.6 VRL Logistics 0.2 4.6 7.4
Consumer -1.0 3.4 27.0 Media 0.5 11.6 0.7
Asian Paints -0.2 6.1 14.6 PVR INOX 3.8 8.4 -21.4
Britannia -0.1 -0.6 30.9 Sun TV 2.5 18.9 20.5
Colgate-Palm. -0.3 10.9 13.9 Zee Ent. -1.3 22.3 -6.3
Dabur -2.2 -0.3 -1.2 Metals -0.7 4.1 26.6
Emami 1.3 1.8 -10.5 Hindalco -1.6 3.2 15.9
Godrej Cons. -0.4 -0.7 20.5 Hind. Zinc -1.5 3.2 12.4
HUL -3.6 -2.7 -0.1 JSPL -1.4 7.7 73.7
ITC -0.5 9.6 63.6 JSW Steel -1.6 3.6 33.6
Indigo Paints -0.1 2.1 7.8 Nalco -0.2 9.6 22.0
Jyothy Lab -2.5 12.4 47.1 NMDC 0.0 4.0 48.4
Marico 0.0 2.2 2.6 SAIL 0.2 4.8 19.1
Nestle -0.1 0.5 21.9 Tata Steel -0.2 2.4 24.8
Page Inds 0.2 -4.2 -18.9 Vedanta -1.4 -1.0 9.2
Pidilite Ind. -0.6 -0.4 12.7 Oil & Gas 0.0 5.5 4.3
P&G Hygiene -1.4 12.7 10.8 Aegis Logistics -2.5 4.8 45.3
Tata Consumer -2.4 -0.9 4.2 BPCL 0.7 4.8 21.2
United Brew 1.4 2.4 -8.7 Castrol India 2.7 7.1 21.1
United Spirits 6.5 15.9 23.1 GAIL 0.9 4.4 16.2
Varun Beverages -1.5 -2.4 83.6 Gujarat Gas 0.5 -0.8 2.5
Healthcare -0.2 7.7 12.8 Gujarat St. Pet. -1.3 -4.6 24.6
Alembic Phar -3.2 12.0 -3.4 HPCL 0.3 10.0 26.8
Alkem Lab 0.7 9.4 15.0 IOC 0.5 8.0 36.8
Apollo Hospitals 0.1 1.7 25.3 IGL 0.9 3.2 32.0
Ajanta Pharma -0.3 -6.4 9.2 Mahanagar Gas 0.0 2.5 38.1
Aurobindo 0.9 14.3 40.4 MRPL 0.2 12.8 17.9
Biocon -0.9 7.7 -20.3 Oil India 0.4 2.8 28.3
Zydus Lifesci. -0.6 9.5 72.9 ONGC 1.9 6.4 28.1
Cipla -0.7 4.0 8.4 PLNG -0.4 -1.0 -2.5
Divis Lab 0.6 5.0 -2.9 Reliance Ind. -3.2 8.6 11.9
Dr Reddy’s -1.0 7.7 20.9 Real Estate 0.0 4.3 22.4
ERIS Lifescience 0.9 11.0 11.0 Brigade Enterpr. -0.8 -2.4 20.3
Gland Pharma -0.2 22.6 -47.0 DLF -0.8 3.7 38.9
Glenmark 1.8 17.2 97.6 Godrej Propert. 0.3 6.4 12.7
Granules 0.4 5.9 11.8 Mahindra Life. 0.4 5.9 11.8
GSK Pharma 0.3 -2.5 -6.7 Macrotech Devel. 3.1 9.6 26.3
IPCA Labs 1.2 7.8 -21.1 Oberoi Realty Ltd -1.7 4.3 18.4
Laurus Labs -0.5 -4.3 -31.8 Sobha -0.2 3.2 -21.4
Lupin -1.2 6.8 43.8 Phoenix Mills 0.0 4.4 35.6
Max Healthcare -1.4 4.0 65.1 Prestige Estates -1.2 -5.9 18.2
Piramal Pharma 4.2 10.1 Retail
Solara Active 0.0 3.6 0.9 Aditya Bir. Fas. -0.4 0.5 -20.7
Sun Pharma 0.1 10.7 26.3 Avenue Super. -0.1 -6.3 -8.9
Infrastructure -0.1 4.0 23.3 Bata India -0.7 2.0 -7.7
Torrent Pharma 0.5 4.1 30.6 Campus Activewe. -0.3 -4.4 -17.8
G R Infraproject -0.2 0.0 5.2 Barbeque-Nation 0.0 1.1 -40.8
IRB Infra.Devl. -0.9 -2.4 23.5 Devyani Intl. 1.2 4.0 19.6
KNR Construct. -0.6 0.0 -4.2 Jubilant Food -1.3 -5.7 -20.1
Logistics Metro Brands 3.3 6.8 88.7
Blue Dart Exp. -1.2 -0.1 -13.3 Relaxo Footwear -1.0 0.5 -6.4
Container Corpn. -1.6 3.3 -0.9 Restaurant Brand -1.7 -2.3 -7.1
Mahindra Logis. 0.2 7.2 -15.7 Sapphire Foods -0.4 0.2 28.3
Transport Corp. 0.5 4.4 5.2 Shoppers St. -1.3 -3.6 43.4
24 July 2023 60
Company 1 Day (%) 1M (%) 12M (%)

Titan Co. -0.4 0.2 30.1
Trent 0.0 0.8 40.5
V-Mart Retail -0.5 5.8 -20.1
Vedant Fashions 0.2 -4.5 17.6
Westlife Food 0.3 4.6 70.3
Technology -4.1 2.9 5.4
Cyient 0.3 0.7 85.0
HCL Tech. -3.3 -4.6 20.8
Infosys -8.2 2.2 -13.2
LTIMindtree -1.1 -1.6 8.6
L&T Technology -1.0 1.2 18.4
Mphasis 5.3 24.1 3.4
Coforge -3.6 0.7 28.1
Persistent Sys -5.8 -3.7 33.3
TCS -2.7 3.4 6.0
Tech Mah -4.6 6.7 15.8
Wipro -3.1 4.9 -2.3
Zensar Tech 5.2 19.3 86.1
Telecom 0.3 2.7 10.5
Bharti Airtel 0.1 5.6 30.5
Indus Towers 0.9 1.6 -24.5
Idea Cellular 3.8 1.4 -13.0
Tata Comm -1.0 -1.5 47.5
Utiltites 0.0 -0.6 -10.7
Coal India -0.3 0.3 15.4
NTPC 1.1 4.0 29.4
Power Grid Corpn 0.0 -5.4 15.1
Others
APL Apollo Tubes 1.0 6.6 54.1
BSE -0.1 28.9 9.2
Coromandel Intl 1.7 4.1 -5.1
EPL Ltd 2.3 7.6 26.4
Indiamart Inter. 8.7 5.4 48.2
Godrej Agrovet -0.7 7.4 -4.9
Havells -3.4 -2.7 3.6
Indian Hotels -1.3 -0.8 56.2
Interglobe -1.9 8.4 46.7
Info Edge 0.1 4.0 11.9
Kajaria Ceramics -2.2 11.1 33.4
Kaveri Seed 0.7 12.1 15.2
Lemon Tree Hotel -0.9 -4.1 38.8
MCX -0.1 0.5 13.8
One 97 -0.9 -3.4 13.2
Piramal Enterp. 1.9 4.7 0.4
PI Inds. 0.9 -7.7 20.0
Quess Corp -1.7 -1.2 -27.3
SIS -0.2 1.6 -6.8
SRF -1.3 -7.3 -5.6
Tata Chemicals -0.8 -1.0 12.6
Team Lease Serv. -0.9 1.7 -32.5
Trident 1.5 -0.4 -18.9
UPL -0.7 -7.5 -10.0
Zomato Ltd 3.4 6.9 50.1
Investment in securities market are subject to market risks. Read all the related documents carefully before investing
24 July 2023 61
NOTES
24 July 2023 62
Explanation of Investment Rating
Investment Rating Expected return (over 12-month)
BUY >=15%
SELL < - 10%
NEUTRAL > - 10 % to 15%
UNDER REVIEW Rating may undergo a change
NOT RATED We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within following 30 days take
appropriate measures to make the recommendation consistent with the investment rating legend.
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To enhance transparency, MOFSL has incorporated a Disclosure of Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the report. MOFSL
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Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or
will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Disclosure of Interest Statement Companies where there is interest

Analyst ownership of the stock No
A graph of daily closing prices of securities is available at www.nseindia.com, www.bseindia.com. Research Analyst views on Subject Company may vary based on Fundamental research and Technical
Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from MOFSL research activity and therefore it can have
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This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary to
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This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities and Futures
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24 July 2023 63
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24 July 2023

Motilal Oswal values your support in the

Source: MOFSL, Company Source: MOFSL, Company

Research Team (Gautam.Duggad@MotilalOswal.com)

Valuation and view

O2C – Subdued performance due to weak transportation fuel cracks

 Gas price realization for KG-D6 improved to USD10.8/mmBtu in 1QFY24 from

Valuation and view: Reiterate BUY with a TP of INR2,935

Exhibit 1: RIL – SoTP valuation (INR/share)

Kotak Mahindra Bank

Valuation and view

Quarterly performance (INR b)

Key operating parameters

Quarterly Performance (INR b)

HDFC Life Insurance

Valuation and view

Quarterly Performance (Consolidated) (INR b)

Union Bank of India

Valuation and view

Quarterly performance (INR b)

Valuation and view

Quarterly performance (INR b)

AU Small Finance Bank

Highlights from the management commentary

Quarterly performance table (INR m)

Valuation and view – Maintain Neutral

Quarterly performance (INR m)

Quarterly Performance (Consolidated) (INR b)

Valuation and view

Valuation and view – Reiterate Neutral

Consolidated - Quarterly Snapshot (INR m)

PAT beat driven by strong margin expansion

Highlights from the management commentary

Strong collections to sustain; growth story intact

Quarterly performance (INR m)

Quarterly Performance (S/A) (INR M)

 EBITDA/scm at INR8.6 beat our est. of INR7.4 (INR6.3 in 4QFY23).

 PAT was above est. at INR4.4b (+4% YoY, +33% QoQ).

Quarterly performance (INR m)

Quarterly Performance (INR m)

North-West Central South East and

Deficient rainfall in major rice-producing states is adversely impacting sowing

Water reservoir levels improved to 39% of live storage

Mphasis : Clients Request Capacity addition in Mortgage;

Union Bank of India : Advances & Deposits Exceeded Guidance;

Utkarsh SFB : Growth opp in MSME Segment;

Havells : Foray into EMS to aid margins?

Company 1 Day (%) 1M (%) 12M (%)

In the past 12 months, MOFSL or any of its associates may have:

Terms & Conditions:

Disclosure of Interest Statement Companies where there is interest

Regional Disclosures (outside India)

For Hong Kong:

Grievance Redressal Cell:

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