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Sector Byte For Oct 2023
Sector Byte For Oct 2023
Sector Byte For Oct 2023
OCT-23
The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in
these sector(s)/stock(s). The information contained herein is solely for private circulation for reading / understanding of registered Advisors / Distributors and should not be circulated to
investors/prospective investors.
Top 3 Over-Weight Sectors
Data as on Sep 30,2023. The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or 02
may not have any future position in these sector(s)/stock(s). The information contained herein is solely for private circulation for reading / understanding of registered
Advisors / Distributors and should not be circulated to investors/prospective investors.
Overweight Sectors
AUTO
03
Auto: Another Strong Quarter
Positive Growth
Most segments posted meaningful positive
growth. While the Medium & Heavy Commercial
Vehicles topped the race (with growth of 15%
YoY), 2W & Tractor Volumes declined
Dual Tailwinds
Steep decline in prices of precious and base metals
have added to the margin expansion. Upcoming
festive season have also boosted growth expectations
Abbreviations: 2W: Two wheelers. Data Source: Axis Research and BNP Paribas. The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential 04
Mutual Fund may or may not have any future position in these sector(s)/stock(s). The information contained herein is solely for private circulation for reading / understanding of registered Advisors /
Distributors and should not be circulated to investors/prospective investors.
Auto: Tailwinds from Raw Material Prices
80
23,000
75
18,000
70
65 13,000
60
8,000
55
50 3,000
Q2FY24
Q1FY22
Q2FY22
Q3FY22
Q4FY22
Q1FY23
Q2FY23
Q3FY23
Q4FY23
Q1FY24
Q1FY23
Q4FY23
Q1FY22
Q2FY22
Q3FY22
Q4FY22
Q2FY23
Q3FY23
Q1FY24
Q2FY24
FY: Financial Year, Oz: Ounce, OEMs: Original Equipment Manufacturer and CRC: Cold Rolled Coil. Data as on Sep 30,2023 is considered. Data Source: Axis Capital Research. The sector(s)/stock(s) mentioned in 05
this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). The information contained herein is
solely for private circulation for reading / understanding of registered Advisors / Distributors and should not be circulated to investors/prospective investors.
Auto: EV in full swing
There is more headroom for EV penetration across segments on the back of 3A’s
EV Penetration (%)
8 60 3A’s
% of EV Penetration in 2W, PV and CV
55.5
7
% EV penetration in 3W
55 Type of EV Affordability Availability Acceptance
6
5 50
Two Wheelers
4
3.5 45
3 Passenger
2 2.6 Vehicles
40
1 Three
0 35 Wheelers
Oct-21
Oct-22
Jun-21
Jun-22
Jun-23
Aug-21
Aug-22
Feb-22
Feb-23
Dec-21
Apr-22
Dec-22
Apr-23
Buses
2W PV 3W
Abbreviations: 2W: Two Wheelers. PV: Passenger Vehicle, 3W: Three Wheelers. EV: Electronic Vehicle. Data Source: JM Financials & Nuvama Institutional Equities. The sector(s)/stock(s)
mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). The 06
information contained herein is solely for private circulation for reading / understanding of registered Advisors / Distributors and should not be circulated to investors/prospective investors.
Top stocks and overweight schemes
Nifty 50
0% 5% 10% 15%
Data as on Sep 30,2023. IPRU: ICICI Prudential. The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same
07
and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s) or stock(s). The information contained herein is solely for 7
private circulation for reading / understanding of registered Advisors / Distributors and should not be circulated to investors/prospective investors
Stock in focus: Maruti Suzuki India Ltd
Rationale
1. Maruti Suzuki India Ltd is one of the largest vehicle manufacturers by production in India
2. The company can be one of the biggest beneficiary of improved demand outlook given its leadership position
3. The company is building its position in EV space with its developing pipeline for ‘Born-Electric’ vehicles
4. Good traction can be seen in recent SUV launches taking the company’s market share to 29%$ in SUV space
5. Higher success rate in Model launches (~70%)^ as compared to competitors (~14%) helps the company to
maintain its leadership with innovation
SUV: Sports Utility Vehicles. ^Data from FY2011 to FY2020 is considered. $: Data as on Q2FY24 is considered. FY: Financial Year, EV: Electric Vehicle. Born-
electronic: A range of electric SUVs based on a common dedicated EV platform. Data Source: Investec Research, Emkay Research and Elara Capital. The
sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same. ICICI Prudential Mutual Fund may or may not have any 08
future position in these sector(s)/stock(s). The information contained herein is solely for private circulation for reading / understanding of registered Advisors /
Distributors and should not be circulated to investors/prospective investors.
Maruti Suzuki India Ltd- Leader with Market Share
The company continues to maintain overall market share with further scope for market share gain
69 70
70 67 68
66 66
The company is currently an
60 undisputed leader in the Non SUV
60
52 space.
51
49
50 45 45 46
43 However,
40
A) Pipeline of new SUV model
30 28 launches and
25 26
23 24
21 20
20 B) High success ratio for new
products
10
paves way for gaining market
0 share in SUV space
FY 19 FY 20 FY 21 FY 22 FY 23 FY24E FY25E
Non SUV Share SUV Share Total Share
Abbreviations: SUV: Sports Utility Vehicle. E: Estimates. FY: Financial Year. Data Source: Nuvama Institutional Equities. The sector(s)/stock(s) mentioned in this presentation do not constitute 09
any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). The information contained herein is solely for private
circulation for reading / understanding of registered Advisors / Distributors and should not be circulated to investors/prospective investors.
Overweight
Sectors
Pharmaceuticals
& Healthcare
The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have
10
any future position in these sector(s)/stock(s). The information contained herein is solely for private circulation for reading / understanding of registered
Advisors / Distributors and should not be circulated to investors/prospective investors.
Pharmaceuticals: Clearing Clouds of Uncertainty
The sector was plagued with multiple challenges which are now easing
Cost pressures for pharma companies have declined from the peak
thereby benefitting the margins
Lower Input
Costs
Diagnostic Non-covid revenues for diagnostic companies is expected to move higher due
Segment to a) Price hikes and b) Recovery in volumes, which were initially delayed due
to pandemic outbreak
Abbreviations: US: United States. Data Source: Nomura Research, Goldman Sachs and Kotak institutional Equities. The sector(s)/stock(s) mentioned in this presentation do not constitute any
recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). The information contained herein is solely for private
12
circulation for reading / understanding of registered Advisors / Distributors and should not be circulated to investors/prospective investors.
Pharmaceuticals: Steady Growth
Abbreviations: Bn: Billion, E: estimates, FY: Financial Year. The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual 11
Fund may or may not have any future position in these sector(s)/stock(s). The information contained herein is solely for private circulation for reading / understanding of registered Advisors /
Distributors and should not be circulated to investors/prospective investors.
Pharmaceuticals: Domestic Market Remains Strong
^Data Source: https://www.ibef.org/industry/pharmaceutical-india (last updated on Aug-23). $: Data for Mar-23 is considered. Abbreviations: US: United States. FY: Financial
Year. Source: JP Morgan. The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or 13
may not have any future position in these sector(s)/stock(s). The information contained herein is solely for private circulation for reading / understanding of registered
Advisors / Distributors and should not be circulated to investors/prospective investors.
Top stocks and select overweight schemes
0% 6% 12% 18%
IPRU: ICICI Prudential. Data as on Sep 30,2023 is considered. The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the 14
same and ICICI Prudential Mutual Fund may or may not have any future position in these
Stock in focus: Sun Pharmaceutical Industries Ltd.
Rationale
1. Sun Pharmaceuticals Ltd is India’s largest player in Specialty and Global Generics segment
2. The company has an improving business mix with a declining share of US Generics and resilient business in
Indian space
3. The company is expanding its specialty product portfolio which has an undertone of promising growth outlook
4. With management’s focus on i) Gaining revenue traction, ii) Cost controls/optimizations and iii) Robust
specialty product portfolio, company is in the lap of luxury
Data Source: Citi Research. US: United States. The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same and
ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). The information contained herein is solely for private 15
circulation for reading / understanding of registered Advisors / Distributors and should not be circulated to investors/prospective investors.
Sun Pharmaceutical Industries Ltd.: Specialty offerings in
focus
7
R&D Investment (INR Bn)
6
1.7 2.1
5 1.5
1.2 1.1 1.3
1.5
4 1.0
3
5.0
4.4 4.3 4.4 4.6
2 3.9 4.2
3.6
0
Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23
Generic Specialty
R&D: Research & Development, Bn: Billion, FY: Financial Year. Data Source: Motilal Oswal Research. The sector(s)/stock(s) mentioned in this presentation do not
constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). The information 16
contained herein is solely for private circulation for reading / understanding of registered Advisors / Distributors and should not be circulated to
investors/prospective investors.
Overweight
Sectors
Telecom
The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the
same and ICICI Prudential Mutual Fund may or may not have any future position in these
17
sector(s)/stock(s). The information contained herein is solely for private circulation for reading /
understanding of registered Advisors / Distributors and should not be circulated to
investors/prospective investors.
Telecom: Seeds of Consolidation
No of Players
1140
1120 1500 6
1100 Average: 1155
4
4
1080
1000
1060
2
1040
1020 500 0
FY 16
FY 17
FY 18
FY 19
FY 20
FY 21
FY 22
FY 23
1000
Sep-19
Jun-20
Sep-20
Jun-21
Sep-21
Jun-22
Sep-22
Dec-19
Dec-20
Dec-21
Dec-22
Mar-20
Mar-21
Mar-22
Mar-23
Industry Size No of Players
Bn: Billion, Mn: Million, FY: Financial Year. Data Source: Motilal Oswal Research. The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same and
18
ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). The information contained herein is solely for private circulation for reading / understanding
of registered Advisors / Distributors and should not be circulated to investors/prospective investors.
Telecom: Faster 5G Penetration
Developed 90 91 ……. 95 96 97 98 99 00
Nations
2G
Time-Gap: Eight - Ten Years
1991-92 1999-2002
2000 01 ……. 06 07 08 09 10 11 12
India’s time gap for
3G technology upgradation
Time-Gap: Eight - Ten Years v/s Developed Nations
2002-04 2011-12
has reduced from 8-10
2010 11 12 13 14 15 16 years (2G and 3G) to 3
4G
years (5G) fueling
Time-Gap: Three - Five Years
2010-12 2014-16 expectations of faster
2019 20 21 adoption of 5G network
5G
Time-Gap: Three Years
2019 2022
Data Source: Motilal Oswal Research. Map source: Map not to scale. This map has been used for design and representational purpose only, it does not depict the geographical boundaries of
19
the country. The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future
position in these sector(s)/stock(s). The information contained herein is solely for private circulation for reading / understanding of registered Advisors / Distributors and should not be
circulated to investors/prospective investors.
Telecom: Positive in the long run
Earnings growth of the sector 5G will open new The sector is on the cusp of
is expected to moderate in monetization avenues for multi-year upcycle driven by
the near term due to elevated Telecom & IT service changing usage behavior,
5G capex roll outs and rural providers. While use of 5G consolidating industry
densification. Absence of for retail users looks structure, 5G rollout
tariff hikes and slowing limited, enterprise usage momentum, increased focus
subscribers addition in the can be much wider. High on improvising telecom
4G space is likely to compress Capex intensity indicate infrastructure etc. thereby
the margins until 5G competitive 5G rollouts forming a base for our
penetration picks up the pace
positive outlook
IT: Information Technology. Source: JP Morgan, Motilal Oswal Research & IIFL Research. The sector(s)/stock(s) mentioned in this presentation do not constitute any
20
recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). The information contained herein is
solely for private circulation for reading / understanding of registered Advisors / Distributors and should not be circulated to investors/prospective investors.
Top stocks and select overweight schemes
0% 3% 6% 9%
Data as on Sep 30,2023 is considered. IPRU: ICICI Prudential. The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the 21
same and ICICI Prudential Mutual Fund may or may not have any future position in these
Stock in focus: Bharti Airtel Ltd
Rationale
1. Bharti is advantageously positioned due to its market leadership in high-usage & high-ARPU customers.
2. Different Customer & Product mix enables the company to enjoy highest EBITDA margin in the industry
3. Bharti continues to lead on network speed and quality. Bharti enjoys the best network quality on video and
gaming experience while improving the most on 4G availability
4. With intensifying capex spends, the company’s 5G rollout may gather steam in long run
5. 4G capacity utilization of the company is around 60-65%^ creating headroom for expansion on the back of
ongoing capex acceleration
^Data for Financial Year-23. Abbreviations: ARPU: Average Revenue Per User, EBITDA: Earnings before Interest, Taxes, Depreciation & Amortization. Data Source: HSBC
Research and IIFL Research. The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may
22
or may not have any future position in these sector(s)/stock(s). The information contained herein is solely for private circulation for reading / understanding of registered
Advisors / Distributors and should not be circulated to investors/prospective investors.
Bharti Airtel Ltd- Capex : A Dual Play!
The company‘s capex allocation focuses not only on 5G coverage but also on making brisk progress in Rural 4G rollouts
FY 23 275,069
100 35
Capex as a % of Sales
80 30
Amt (INR Bn)
FY 22 237,577
60 25
40 20 FY 21 215,801
20 15
FY 20 192,068
0 10
Q4FY20
Q1FY21
Q2FY21
Q3FY21
Q4FY21
Q1FY22
Q2FY22
Q3FY22
Q4FY22
Q1FY23
Q2FY23
Q3FY23
Q4FY23
FY 19 172,627
Capex: Capital Expenditure. Bn: Billion, Nos: Numbers and FY; Financial Year. Data Source: Bernstein Research and IIFL Research. The sector(s)/stock(s) mentioned in this presentation do not
24
constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). The information contained herein is solely
for private circulation for reading / understanding of registered Advisors / Distributors and should not be circulated to investors/prospective investors.
Bharti Airtel Ltd- Market share on the rise
FY 2014 FY 2017
30 31
Company Company
70 69
Others Others
FY 2020 FY 2023
32
37
Company Company
68 63
Others Others
FY- Financial Year. Data Source: IIFL research. The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may 24
or may not have any future position in these sector(s)/stock(s). The information contained herein is solely for private circulation for reading / understanding of registered Advisors /
Distributors and should not be circulated to investors/prospective investors.
Top 3 Under-Weight Sectors
The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future
25
position in these sector(s)/stock(s). The information contained herein is solely for private circulation for reading / understanding of registered Advisors / Distributors and
should not be circulated to investors/prospective investors.
Underweight
Sectors
Consumer
Non-Durables
The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the
same and ICICI Prudential Mutual Fund may or may not have any future position in these
sector(s)/stock(s). The information contained herein is solely for private circulation for reading / 26
understanding of registered Advisors / Distributors and should not be circulated to
investors/prospective investors.
Consumer Non Durables: Multiple Ingredients
Rural recovery continues to lag urban Companies reported sluggish volume growth.
growth. High interest rates, softening but Margins improved due to lower raw material
high inflation and lower income levels costs. However, a significant uptick is seen in
demand
Deficient monsoon, lower wage rates, Urban demand remained resilient marked by
chinese supply continue to take a bearing premium goods to cater growing affluent
Data as on September 30,2023. Source: JP Morgan & Elara Capital. EL Nino: El Niño is a climate pattern that describes the unusual warming of surface waters in the eastern Pacific
Ocean. The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future
27
position in these sector(s)/stock(s). The information contained herein is solely for private circulation for reading / understanding of registered Advisors / Distributors and should not
be circulated to investors/prospective investors.
Consumer Non Durables: Valuations running ahead
Jun-22
Jun-20
Jun-21
Jun-23
Mar-20
Mar-21
Mar-22
Mar-23
Sep-20
Sep-21
Sep-22
Sep-23
Dec-19
Dec-20
Dec-21
Dec-22
P/E: Price to Earnings Ratio, FMCG: Fast Moving Consumer Goods. Data as on Sep 30,2023. Data Source: MFIE. The sector(s)/stock(s) mentioned in this presentation do not
constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). The information contained herein
28
is solely for private circulation for reading / understanding of registered Advisors / Distributors and should not be circulated to investors/prospective investors.
Top stocks and select underweight schemes
Data as on Sep 30,2023 is considered. IPRU: ICICI Prudential. The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same and 29
ICICI Prudential Mutual Fund may or may not have any future position in these
Stock in focus: ITC Ltd
Rationale
1. ITC Ltd is a multi-national conglomerate having presence across five business segments namely FMCG,
Agriculture, Paperboards & packaging, Hotels & IT
2. ITC is less exposed to non-essential category and is a market leader in cigarette industry
3. ITC is a home to 25+ Mother brands and has nearly 800 patents filed
4. The Hotel segment of the company reported strong growth on the back of rising average room rate despite lower
occupancy (YoY).
5. Steady growth can be seen in FMCG business with cigarette segment leading the race
6. We believe the company is well placed to benefit from the premiumisation trend as it continues to strengthen its
product portfolio with new premium launches
Source: Company Report and ICICI Securities. FMCG: Fast Moving Consumer Goods. IT: Information Technology, YoY: year on year. The sector(s)/stock(s)
mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position 30
in these sector(s)/stock(s). The information contained herein is solely for private circulation for reading / understanding of registered Advisors / Distributors
and should not be circulated to investors/prospective investors.
ITC Ltd: Diversified Portfolio
Source: Kotak Securities Ltd and ICICI Securities. FMCG: Fast Moving Consumer Goods. FY: Financial Year, EBIT: Earnings Before Interest & Taxes. The
sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have 30
any future position in these sector(s)/stock(s). The information contained herein is solely for private circulation for reading / understanding of registered
Advisors / Distributors and should not be circulated to investors/prospective investors.
Underweight
Sectors
Metal markets likely to remain vulnerable in near term due to following factors
1 2 3 4
Global Slowdown to High Interest rates, strong Subdued demand in property Domestic demand for metals
take a bearing on metal US Dollar, softening real sector of China is partially remain steady due to underlying
demand estate activities across being offset by green strength of macro indicators
economies have resulted in transition activities in China
slowing demand
Data Source: Goldman Sachs and Bob Caps Research. The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same and ICICI 32
Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). The information contained herein is solely for private circulation for reading /
understanding of registered Advisors / Distributors and should not be circulated to investors/prospective investors.
Metals & Mining: Compressing Margins
HRC: Hot Rolled Coil, T: Tonne and US$: US Dollar. Data Source: IIFL Research and BOB Caps Research. The sector(s)/stock(s) mentioned in this presentation do not
constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). The information 33
contained herein is solely for private circulation for reading / understanding of registered Advisors / Distributors and should not be circulated to
investors/prospective investors.
Metals & Mining: Cautious in the near term
Data as on Sep 30,2023 is considered. The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual
Fund may or may not have any future position in these sector(s)/stock(s). The information contained herein is solely for private circulation for reading / understanding of
34
registered Advisors / Distributors and should not be circulated to investors/prospective investors.
Top stocks and select underweight schemes
Jindal Steel & Power Ltd IPRU Dividend Yield Equity Fund
Data as on Sep 30,2023 is considered. IPRU: ICICI Prudential. The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same 35
and ICICI Prudential Mutual Fund may or may not have any future position in these
Stock in focus: Hindalco Industries Ltd
Rationale
1. Hindalco, the flagship company of the Aditya Birla Group, is one of the largest players in the global Aluminum and
copper market
2. Hindalco’s wholly owned overseas subsidiary ‘Novelis’ is global leader in Aluminum products key markets being
beverage can sheet, auto-body sheets, specialties and aerospace
3. Company is one of the world’s most sustainable Aluminum company. ~80% of the waste was recycled and reused
in FY22
4. The company is also focusing on expanding its downstream capacity in order to capture growth in both copper
and aluminum
Abbreviations: FY: Financial Year. Source: HSBC Research and IIFL Research. The sector(s)/stock(s) mentioned in this presentation do not constitute any
36
recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). The information contained herein
is solely for private circulation for reading / understanding of registered Advisors / Distributors and should not be circulated to investors/prospective investors.
Underweight Sectors
SOFTWARE
37
Software: Valuations largely unaffected
35
P/E Ratio
30 However, despite
multiple headwinds in
25
the sector & tighter
monetary conditions,
20
sector continues to trade
at premium
15
Jun-20
Jun-21
Jun-22
Jun-23
Sep-22
Mar-20
Mar-21
Mar-22
Mar-23
Sep-20
Sep-21
Sep-23
Dec-19
Dec-20
Dec-21
Dec-22
Nifty 50 Nifty IT
Data as on Sep 30,2023. Source: MFIE. IT: Information Technology, P/E: Price to Earnings Ratio. The sector(s)/stock(s) mentioned in this presentation do not constitute any 38
recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). The information contained herein is solely
for private circulation for reading / understanding of registered Advisors / Distributors and should not be circulated to investors/prospective investors.
Software: Currently down by Global Errors
Abbreviations: IT: Information Technology. Data Source: JP Morgan Research & Kotak Institutional Equities. The sector(s)/stock(s) mentioned in this presentation do not
constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). The information contained 39
herein is solely for private circulation for reading / understanding of registered Advisors / Distributors and should not be circulated to investors/prospective investors.
Software: Limited Near Term Visibility
Abbreviations: PE: Price to Earnings Ratio. AI: Artificial Intelligence. Data as on Sep 30,2023 is considered. The sector(s)/stock(s) mentioned in this presentation do not
40
constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). The information contained
herein is solely for private circulation for reading / understanding of registered Advisors / Distributors and should not be circulated to investors/prospective investors.
Top stocks and select underweight schemes
Data as on Sep 30,2023 is considered. IPRU: ICICI Prudential. The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same and
ICICI Prudential Mutual Fund may or may not have any future position in these
41
Stock in focus: Infosys Ltd
Rationale
1. Infosys Ltd is a multi-national company having presence in 50+ countries, providing information technology &
business consultancy services
2. The company has a versatile global client book across sectors such as Banking & Financials, Insurance,
Manufacturing , Communications etc
3. Sector headwinds may result into muted quarter for the company. However, company continues with large deal
momentum in which ~40% accounts for new deals
4. The management is focused to restructure the employee pyramid with the right mix of fresher thereby enhancing
overall employee utilization
5. The company has invested in building proprietary intellectual property in software platforms and products which
amplify its services or serve product differentiation
Source: Kotak institutional Equities. The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund
42
may or may not have any future position in these sector(s)/stock(s). The information contained herein is solely for private circulation for reading / understanding of registered
Advisors / Distributors and should not be circulated to investors/prospective investors.
Infosys Ltd: Client Book Remains Intact
While ramp up in the deals have slowed down due to weak global macros
Company’s deal order book remains decent
4000
3000
2000
1000
0
Q1FY20
Q1FY24
Q1FY18
Q2FY18
Q3FY18
Q4FY18
Q1FY19
Q2FY19
Q3FY19
Q4FY19
Q2FY20
Q3FY20
Q4FY20
Q1FY21
Q2FY21
Q3FY21
Q4FY21
Q1FY22
Q2FY22
Q3FY22
Q4FY22
Q1FY23
Q2FY23
Q3FY23
Q4FY23
Abbreviations: TCV: Total Contract Value, FY: Financial Year, Mn: Million. The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the 43
same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). The information contained herein is solely for private circulation
for reading / understanding of registered Advisors / Distributors and should not be circulated to investors/prospective investors.
Riskometers
Riskometers
ICICI Prudential Business Cycle Fund (An open ended equity scheme following business cycles based investing theme) is suitable for
investors whoare seeking*:
ICICI Prudential Flexicap Fund (An open ended dynamic equity scheme investing across large cap, mid cap & small cap stocks) is
suitable for investors who are seeking*:
ICICI Prudential Focused Equity Fund (An open ended equity scheme investing in maximum 30 stocks across market-capitalization i.e. focus on
multi cap) suitable for investors who are seeking*:
ICICI Prudential Value Discovery Fund (An open ended equity scheme following a value investment strategy.)is suitable for investors who
are seeking*:
Please note that the Risk-o-meter(s) specified above will be evaluated and updated on a monthly basis as per SEBI circular on Product Labeling in Mutual Fund schemes -
Risk-o-meter. The above riskometers are as on Sep 30,2023. Please refer to https://www.icicipruamc.com/news-and-updates/all-news for more details. The information 44
contained herein is solely for private circulation for reading / understanding of registered Advisors / Distributors and should not be circulated to investors/prospective
investors.
Riskometers
ICICI Prudential Innovation Fund (An open ended equity scheme following innovation theme) is suitable for investors who are seeking*:
ICICI Prudential India Opportunities Fund (An open ended equity scheme following special situations theme)is suitable for investors
who are seeking*:
Long term wealth creation
An equity scheme that invests in stocks based on special situations theme
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Smallcap Fund (An open ended equity scheme predominantly investing in small cap stocks) is suitable for investors
who are seeking*:
Long Term Wealth Creation
An open ended equity scheme that seeks to generate capital appreciation by predominantly investing in equity and equity related
securities of small cap companies
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Large & Mid Cap Fund (An open ended equity scheme investing in both large cap and mid cap stocks) is suitable for
investors who are seeking*:
ICICI Prudential ELSS Tax Saver Fund (An open ended Equity Linked Savings Scheme with a statutory lock in of 3 years and tax
benefit) is suitable for investors who are seeking*:
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Midcap Fund (An open ended equity scheme predominantly investing in mid cap stocks) is suitable for investors who
are seeking*:
Long Term Wealth Creation
An open-ended equity scheme that aims for capital appreciation by investing in diversified mid cap companies
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
ICICI Prudential Bluechip Fund (An open ended equity scheme predominantly investing in large cap stocks) is suitable for investors
who are seeking*:
ICICI Prudential Multicap Fund (An open ended equity scheme investing across large cap, mid cap, small cap stocks) is suitable for
investors who are seeking*:
Long Term Wealth Creation
An open ended equity scheme investing across large cap, mid cap and small cap stocks
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
Please note that the Risk-o-meter(s) specified above will be evaluated and updated on a monthly basis as per SEBI circular on Product Labeling in Mutual Fund
schemes - Risk-o-meter. The above riskometers are as on Sep 30,2023. Please refer to https://www.icicipruamc.com/news-and-updates/all-news for more details. The 46
information contained herein is solely for private circulation for reading / understanding of registered Advisors / Distributors and should not be circulated to
investors/prospective investors.
Riskometers & Disclaimer
ICICI Prudential Dividend Yield Equity Fund (An open ended equity scheme predominantly investing in dividend yielding stocks) is
suitable for investors who are seeking*:
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
Please note that the Risk-o-meter(s) specified above will be evaluated and updated on a monthly basis as per SEBI circular on Product Labeling in Mutual Fund schemes - Risk-o-
meter. The above riskometers are as on Sep 30,2023. Please refer to https://www.icicipruamc.com/news-and-updates/all-news for more details. The information contained herein is
solely for private circulation for reading / understanding of registered Advisors / Distributors and should not be circulated to investors/prospective investors.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Disclaimer: In the preparation of the material contained in this document, the AMC has used information that is publicly available, including information developed in-house. Some
of the material(s) used in the document may have been obtained from members/persons other than the AMC and/or its affiliates and which may have been made available to the
AMC and/or to its affiliates. Information gathered and material used in this document is believed to be from reliable sources. The AMC however does not warrant the accuracy,
reasonableness and / or completeness of any information. We have included statements / opinions / recommendations in this document, which contain words, or phrases such as
“will”, “expect”, “should”, “believe” and similar expressions or variations of such expressions, that are “forward looking statements”. Actual results may differ materially from those
suggested by the forward looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risks, general
economic and political conditions in India and other countries globally, which have an impact on our services and / or investments, the monetary and interest policies of India,
inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices etc. ICICI Prudential Asset Management Company
Limited (including its affiliates), the Mutual Fund, The Trust and any of its officers, directors, personnel and employees, shall not liable for any loss, damage of any nature, including
but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. Further, the
information contained herein should not be construed as forecast or promise. The recipient alone shall be fully responsible/are liable for any decision taken on this material. The
information contained herein is only for the purpose of information and not for distribution and do not constitute an offer to buy or sell or solicitation of any offer to buy or sell any
securities or financial instruments in the United States of America ("US") and/or Canada or for the benefit of US persons (being persons falling within the definition of the term "US
47
Person" under the US Securities Act, 1933, as amended) or persons residing in Canada.