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ED: ANISH MATHEW SA: DHANANJAY SINHA
India Equity Research | BFSI
February 15, 2019
Sector Update
BFSI Refer to important disclosures at the end of this report
HFCs losing market share; AFCs still holding ground
Bajaj Finance BUY
CMP Target Price
2,591 2,971
Cholamandalam Finance BUY
CMP Target Price
1,203 1,362
Edelweiss Financial ACCUMULATE
CMP Target Price
128 190
HDFC BUY
CMP Target Price
1,931 2,260
L&T Finance Holdings ACCUMULATE
CMP Target Price
123 161
LIC Housing Finance HOLD
CMP Target Price
442 475
Magma Fincorp BUY
CMP Target Price
85 123
Mahindra Finance BUY
CMP Target Price
376 516
Shriram City Union ACCUMULATE
CMP Target Price
1,545 1,879
Shriram Transport Finance BUY
CMP Target Price
1,019 1,368 This report is solely produced by Emkay Global. The following person(s) are responsible for the production of the recommendation:
Jignesh Shial
+91 22 6624 2468
Anand Dama
+91 22 6624 2480
Parth Sanghvi
+91 22 6624 2431
Growth trend for mortgage business healthy; banks gaining market share from
HFCs: The overall mortgage portfolios (Housing and LAP) of large banks (Private/PSBs)
and Housing Finance Companies (HFCs) have seen healthy growth of about 18.3% yoy
and 12.7% YTD (April – December 2018). Banks were the leader of the pack, clocking about
18.3% YTD growth vs. HFCs’ growth of about 6.3% YTD. Spurred by a superior growth
profile and tight liquidity conditions for HFCs, the overall mortgage market share of banks
(Private/PSBs combined) has improved to about 56.4% as on December 2018 vs. about
53.8% as of March 2018.
SBI remains the unbeatable leader in housing finance business in Q3FY19; HFCs
remain on weak footing: With robust portfolio growth of about 21.7% YTD (26.5% yoy),
SBI has continued to remain the undisputed king in the housing finance space, garnering
an overall market share of about 22.1% as of December 2018 vs. 20.5% as of March 2018.
HDFC Ltd, the previous market leader, is trying to defend its position after managing a
market share of about 15.7% as of December 2018 vs. 16.8% as of March 2018. LICHF,
Indiabulls Housing and DHFL also witnessed falling market share trends in the quarter,
whereas PNB Housing remained the only exception with a market share gain of 3% in
December 2018 vs. 2.7% during March 2018.
AFCs still holding ground; IndusInd and Cholamandalam gaining market shares:
Asset Financing Companies (AFCs), which is primarily engaged in vehicle financing, posted
a relatively balanced performance in Q3FY19 as AFCs managed to hold their market share
at 48% as on December 2018 vs. 49% in March 2018. Shriram Transport remained the
leader during the quarter with an overall market share of 16%, followed by MMFS at 9%.
Cholamandalam Finance upped its market share to 6% in December 2018 vs. 5% in March
2018. Among banks, HDFC Bank maintained its leadership position with an 18% market
share, followed by SBI at 11% in Q3FY19. IndusInd increased its market share to 8% in
December 2018 vs. 6% during March 2018.
Borrowing profile of HFCs improving; margins to remain under pressure: For all large
HFCs, the overall borrowing profile has improved toward longer-tenure maturities compared
with skeweness toward shorter maturities earlier. However, we expect the rebalancing of
maturity profile to continue even during Q4FY19, which will keep margins under pressure.
With a rise in overall securitization/assignments during Q3FY19, which supported margins,
would be the trend even during Q4FY19.
We stick to our preferences for promoter backed, well-governed NBFCs/HFCs with
stable liability franchise and the ability to raise money comfortably. Bajaj Finance
(BUY, TP Rs2971) remains our top pick in the sector, followed by HDFC Limited (BUY,
TP Rs2260), Cholamandalam Finance (BUY, TP Rs1362) and Mahindra Finance (BUY,
TP Rs516).
Financial Snapshot (Consolidated)
(Rs mn) EPS P/B P/E
FY19E FY20E FY19E FY20E FY19E FY20E
Bajaj Finance 66.1 92.9 7.4 5.9 39.2 27.9
Cholamandalam Finance 77.3 83.2 3.0 2.5 15.6 14.5
Edelweiss Financial 11.2 13.2 1.6 1.4 11.4 9.5
HDFC 52.2 75.6 4.1 3.8 37.9 26.2
L&T Finance Holdings 11.3 14.4 1.7 1.5 10.9 8.6
LIC Housing Finance 46.1 57.1 1.4 1.2 9.6 7.7
Magma Fincorp 10.3 11.6 0.9 0.8 8.3 7.4
Mahindra Finance 20.8 28.1 2.3 2.0 18.1 13.4
Shriram City Union 149.3 160.9 1.6 1.4 10.3 9.6
Shriram Transport Finance 109.9 134.2 1.5 1.3 9.3 7.6
Source: Company, Emkay Research Note: AFCs incl. BAF, CIFC, MGMA, MMFS, SHTF
BFSI India Equity Research | Sector Update
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ED: ANISH MATHEW SA: DHANANJAY SINHA February 15, 2019 | 2
Mortgage business maintains healthy momentum; banks on stronger footing
The HFC space has been witnessing sluggish growth for the past few quarters amid weak
housing demand and rising inventories (especially in metros and urban areas). With liquidity
turmoil faced by most of them during the last quarter, the overall momentum further favored
banks. The trend is likely to remain favorable for banks even during Q4FY19; however, with
some ease in liquidity conditions, HFCs may gain some lost ground.
Growth trend stable; banks outpacing HFCs
The overall mortgage portfolios (Housing and LAP) of large banks (Private/PSB) and Housing
Finance Companies (HFCs) have seen healthy growth of about 18.3% yoy and 12.7% YTD (April
– December 2018), with banks leading the pack with about 18.3% YTD growth vs. HFCs’ growth
of about 6.3% YTD. Although we do not have the exact bifurcation of individual housing finance
and LAP, considering a smaller base of LAP portfolio (compared to housing finance), the overall
growth in the LAP book would be relatively higher.
Exhibit 1: Growth trends in mortgage portfolios
Source: Company, Emkay Research
With robust portfolio growth of about 21.7% YTD (26.5% yoy), SBI has remained the undisputed
king of the housing finance space with an overall market share of about 22.1% as of December
2018 vs. about 20.5% as of March 2018. HDFC Ltd, the previous market leader, is trying to
defend its position by managing a market share of about 15.7% as of December 2018 vs. about
16.8% as of March 2018. LICHF, Indiabulls Housing and DHFL also witnessed declining market
share trends, whereas PNB Housing remained the only exception with market share gain to 3%
in December 2018 vs. 2.7% during March 2018.
Banks regaining lost market share from HFCs
Spurred by a superior growth profile and tight liquidity conditions for HFCs, the overall mortgage
market share of banks (Private/PSB combined) has improved to about 56.4% as on December
2018 vs. 53.8% as of March 2018. Consequently, the market share of HFCs has fallen to about
43.6% as of December 2018 vs. 46.2% as of March 2018. The trend is likely to remain favorable
for banks even during Q4FY19; however, with some ease in liquidity conditions, HFCs may gain
their lost ground.
Exhibit 2: Banks further gaining market share
Source: Company, Emkay Research
22.8%
12.9%18.3%
26.5%
18.1%13.0% 14.2% 13.6%
18.9%
6.9%
27.4%
0.0%
10.0%
20.0%
30.0%
Ba
nks
HF
Cs
Overa
ll
SB
I
ICIC
I B
ank
Axis
Bank
HD
FC
LIC
Ho
usin
g F
in
India
Bulls
Housin
g F
in
DH
FL
PN
B H
ousin
gF
in
MAJOR PLAYERS BANKS HFCs
52.2% 53.8% 56.4%
47.8% 46.2% 43.6%
0%
20%
40%
60%
80%
100%
Mar'17 Mar'18 Dec'18
Banks HFCs
BFSI India Equity Research | Sector Update
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ED: ANISH MATHEW SA: DHANANJAY SINHA February 15, 2019 | 3
SBI takes pole position; HDFC defends market share
With robust portfolio growth of about 21.7% YTD (26.5% yoy), SBI has remained the undisputed
king in the housing finance space with an overall market share of about 22.1% as of December
2018 vs. 20.5% as of March 2018. HDFC Ltd, the previous market leader, is seeking to defend
its position by managing a market share of about 15.7% as of December 2018 vs. 16.8% as of
March 2018. LICHF, Indiabulls Housing and DHFL witnessed declining market share trends,
whereas PNB Housing remained the only exception with a market share gain to 3% in December
2018 vs. 2.7% during March 2018. Interestingly, apart from SBI, many PSU Banks also
witnessed some surge in market shares as they have been fairly active in securitization markets
in Q3FY19.
Exhibit 3: Mortgage Market Share as on Mar’18
Source: Company, Emkay Research
Exhibit 4: Mortgage Market Share as on Dec’18
Source: Company, Emkay Research
AFCs holding ground; dominates 2Wheelers and used CV segment
Asset Financing Companies (AFCs), primarily engaged in vehicle financing, had shown a
relatively balanced performance as they managed to hold their market share at 48% as on
December 2018 vs. 49% in March 2018.
Exhibit 5: AFCs manages to hold the ground
Source: Company, Emkay Research
Shriram Transport remained the leader with an overall market share of 16%, followed by MMFS
at 9%. Cholamandalam Finance upped its market share to 6% in December 2018 vs. 5% in
March 2018. Among banks, HDFC Bank maintained its leadership positioning with an 18%
market share, followed by SBI at 11%. IndusInd increased its market share to 8% vs. 6% during
March 2018.
SBI20.5%
HDFC, 16.8%
LIC Housing Fin10.4%
ICICI Bank, 9.8%Axis Bank
6.5%
IndiaBulls Housing Fin
6.3%
Other Banks, 16.9%
Other HFCs, 12.0%
Market Share %Mar'18
SBI22.1%
HDFC, 15.7%
LIC Housing Fin9.9%
ICICI Bank, 9.9%Axis Bank
6.3%
IndiaBulls Housing Fin
5.8%
Other Banks, 18.0%
Other HFCs, 11.5%
Market Share %Dec'18
50% 51% 52%
50% 49% 48%
0%
20%
40%
60%
80%
100%
FY17 FY18 9MFY19
Banks NBFCs
BFSI India Equity Research | Sector Update
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ED: ANISH MATHEW SA: DHANANJAY SINHA February 15, 2019 | 4
Exhibit 6: Vehicle Market Share as on Mar’18
Source: Company, Emkay Research
Exhibit 7: Vehicle Market Share as on Dec’18
Source: Company, Emkay Research
AFCs dominate 2-Wheeler markets, LTFH and Bajaj Finance gain market shares
On the 2-wheeler financing segment, AFCs continue to dominate, with Bajaj Finance and LT
Finance gaining major market shares. With robust portfolio growth of about 16.4% YTD, HDFC
Banks remained the market leader in 2-wheeler financing with an overall market share of ~27%
as of December 2018 vs. 26% as of March’2018. LT Finance has gained major momentum with
57.5% YTD growth, resulting in market share of 14% vs. 10% in March 2018. Similarly, Bajaj
Finance reported 32.3% YTD growth and a market share of 24% vs. 21% during March 2018.
Absence of banks and a relatively riskier asset profile could be one of the key reasons for such
dominance; however, we expect with a rise in consumption demand, this would be further
favorable for NBFC AFCs. Interestingly, the major market share loss during 9MFY19 has been
witnessed by Hero Fincorp, which is captive NBFC for Hero Group. We expect such
consolidation among financiers to continue, which would strengthen market share for well-
established players, especially like Bajaj Finance.
Exhibit 8: 2W Market Share as on Mar’18
Source: Company, Emkay Research
Exhibit 9: 2W Market Share as on Dec’18
Source: Company, Emkay Research
CV demand weakening; consolidation among financiers would lead to market
share gains for established players
Our discussions with management and dealers suggest that the momentum in CV demand had
been weak during Q3FY19 amid slowing infrastructure spending, elections in five major states
and draught like situation in few parts of India. Though dealers remain optimistic toward
replacement demand due to BS VI implementation during the second half of FY20, near-term
pressure is to sustain.
Overall demand for CV is expected to ease gradually in the coming quarters. In our view, with
consolidation happening among financiers whereby captive financiers (especially dealer led and
other smaller NBFCs) are unable to raise money, well-established players (Chola, MMFS and
Shriram) would witness market share gains.
18%
11%
8%
6%
4%3%
16%
9%
5%
4%
4%
3% 2%2%HDFC Bank
State Bank of India
ICICI Bank
Indusind Bank
Axis Bank
Kotak Mahindra Bank
Shriram Transport
Mahindra Finance
Cholamandalam Finance
Tata Motors Finance
Sundaram Finance
Kotak Mahindra Prime
Hinduja Leyland Finance
Magma Fincorp
18%
11%
8%
8%
4%3%
16%
9%
6%
4%3%
3% 2% 2% HDFC Bank
State Bank of India
ICICI Bank
Indusind Bank
Axis Bank
Kotak Mahindra Bank
Shriram Transport
Mahindra Finance
Cholamandalam Finance
Tata Motors Finance
Sundaram Finance
Kotak Mahindra Prime
Hinduja Leyland Finance
Magma Fincorp
26%
11%
10%21%
15%
12%
6%
HDFC Bank
Indusind Bank
L&T Fin Holdg
Bajaj Finance
Shriram City
Hero Fincorp
Muthoot Capital Sev
27%
11%
14%
24%
14%
4%
6%
HDFC Bank
Indusind Bank
L&T Fin Holdg
Bajaj Finance
Shriram City
Hero Fincorp
Muthoot Capital Sev
BFSI India Equity Research | Sector Update
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ED: ANISH MATHEW SA: DHANANJAY SINHA February 15, 2019 | 5
Exhibit 10: Used vehicles vs. New vehicles
Source: Company, Emkay Research
HFCs borrowing profile improving; however, margins to remain under pressure
For all large HFCs, the overall borrowing profile has improved toward longer-tenure maturities
against skewed toward shorter maturities earlier. However, we expect the rebalancing of maturity
profile to continue even during the current quarter, which will keep margins under pressure. With
a rise in overall securitization/assignments during Q3FY19, which supported margins, would be
the trend even during Q4FY19.
Exhibit 11: HDFC - ALM Profile FY18
Source: Company, Emkay Research
Exhibit 12: HDFC - ALM Profile 9MFY19
Source: Company, Emkay Research
Exhibit 13: IHFL - ALM Profile FY18
Source: Company, Emkay Research
Exhibit 14: IHFL - ALM Profile 9MFY19
Source: Company, Emkay Research
13%26%
10%
87%
87%74%
90%
13%
0%
20%
40%
60%
80%
100%
CholamandalamFinance
Magma Fincorp Mahindra Finance Shriram Transport
Used vehicle New vehicle
10% 9%
27%
19%
35%
10% 10%
36%
23% 22%
0%
10%
20%
30%
40%
< 6 mths 6-12 mths 1-3 yrs 3-5 yrs > 5 yrs
HDFC ALM Profile - FY18
HDFC - Assets Maturity HDFC - Liabilities Maturity
21%
53%
26%19%
59%
22%
0%
20%
40%
60%
80%
0-12 mths 1-5 yrs > 5 yrs
HDFC ALM Profile - 9MFY18
HDFC - Assets Maturity HDFC - Liabilities Maturity
16%
9%
26%
21%
28%
16%
9%
29%24%
22%
0%
10%
20%
30%
40%
< 6 mths 6-12 mths 1-3 yrs 3-5 yrs > 5 yrs
IHFL ALM Profile - FY18
IHFL - Assets Maturity IHFL - Liabilities Maturity
9% 7%
24%20%
40%
17%13%
41%
21%
7%
0%
10%
20%
30%
40%
50%
< 6 mths 6-12 mths 1-3 yrs 3-5 yrs > 5 yrs
IHFL ALM Profile - 9MFY19
IHFL - Assets Maturity IHFL - Liabilities Maturity
BFSI India Equity Research | Sector Update
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ED: ANISH MATHEW SA: DHANANJAY SINHA February 15, 2019 | 6
Exhibit 15: DHFL - ALM Profile FY18
Source: Company, Emkay Research
Exhibit 16: DHFL - ALM Profile 9MFY19
Source: Company, Emkay Research
Exhibit 17: PNBHousing - ALM Profile FY18
Source: Company, Emkay Research
Exhibit 18: PNBHousing - ALM Profile 9MFY19
Source: Company, Emkay Research
Exhibit 19: Bajaj Finance – ALM profile FY18
Source: Company, Emkay Research
Exhibit 20: Bajaj Finance – ALM profile 9MFY19
Source: Company, Emkay Research
Exhibit 21: Chola - ALM profile FY18
Source: Company, Emkay Research
Exhibit 22: Chola - ALM profile 9MFY19
Source: Company, Emkay Research
14% 12% 14%
60%
24%
34%
17%25%
0%
20%
40%
60%
80%
< 12 mths 1-3 yrs 3-5 yrs > 5 yrs
DHFL ALM Profile - FY18
DEWH - Assets Maturity DEWH - Liabilities Maturity
33%
26% 26%
15%
27%31%
18%
24%
0%
10%
20%
30%
40%
< 12 mths 1-3 yrs 3-5 yrs > 5 yrs
DHFL ALM Profile - 9MFY19
DEWH - Assets Maturity DEWH - Liabilities Maturity
24%
10%
29%
17%
30%24%
8%
43%
16%
8%
0%
10%
20%
30%
40%
50%
< 6 mths 6-12 mths 1-3 yrs 3-5 yrs > 5 yrs
PNBHousing ALM Profile - FY18
PNBHOUSI - Assets Maturity PNBHOUSI - Liabilities Maturity
18%
9%
25%
16%
32%
17%13%
30%
19%21%
0%
10%
20%
30%
40%
< 6 mths 6-12 mths 1-3 yrs 3-5 yrs > 5 yrs
PNBHousing ALM Profile - 9MFY19
PNBHOUSI - Assets Maturity PNBHOUSI - Liabilities Maturity
29%
14%
25%
11%
21%17%
12%
47%
12% 11%
0%
10%
20%
30%
40%
50%
< 6 mths 6-12 mths 1-3 yrs 3-5 yrs > 5 yrs
BAF ALM Profile - FY18
BAF - Assets Maturity BAF - Liabilities Maturity
36%
16%
30%
10% 8%
18%15%
36%
17%14%
0%
10%
20%
30%
40%
< 6 mths 6-12 mths 1-3 yrs 3-5 yrs > 5 yrs
BAF ALM Profile - 9MFY19
BAF - Assets Maturity BAF - Liabilities Maturity
15% 15%
41%
14% 15%22%
14%
49%
11%4%
0%
10%
20%
30%
40%
50%
60%
< 6 mths 6-12 mths 1-3 yrs 3-5 yrs > 5 yrs
CIFC ALM Profile - FY18
CIFC - Assets Maturity CIFC - Liabilities Maturity
23%
16%
41%
10% 11%
20% 20%
41%
8%11%
0%
10%
20%
30%
40%
50%
< 6 mths 6-12 mths 1-3 yrs 3-5 yrs > 5 yrs
CIFC ALM Profile - 9MFY19
CIFC - Assets Maturity CIFC - Liabilities Maturity
BFSI India Equity Research | Sector Update
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ED: ANISH MATHEW SA: DHANANJAY SINHA February 15, 2019 | 7
Exhibit 23: SCUF - ALM profile FY18
Source: Company, Emkay Research
Exhibit 24: SCUF - ALM profile 9MFY19
Source: Company, Emkay Research
27% 27%31%
9% 6%
16%
28%
45%
10%
0%0%
10%
20%
30%
40%
50%
< 6 mths 6-12 mths 1-3 yrs 3-5 yrs > 5 yrs
SCUF ALM Profile - FY18
SCUF - Assets Maturity SCUF - Liabilities Maturity
29%24%
33%
8% 6%
29%26%
41%
5%0%
0%
10%
20%
30%
40%
50%
< 6 mths 6-12 mths 1-3 yrs 3-5 yrs > 5 yrs
SCUF ALM Profile - 9MFY19
SCUF - Assets Maturity SCUF - Liabilities Maturity
BFSI India Equity Research | Sector Update
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ED: ANISH MATHEW SA: DHANANJAY SINHA February 15, 2019 | 8
Review of Q3FY19 performance
Indian Non Banking financial services sector witnessed a volatile Q3FY19 on back of tight
liquidity and weakening growth trends. October 2018 was a washout month for most of
them barring few like Bajaj Finance etc however, with consistency in liquidity injection by
the Reserve Bank as well spurt of confidence among lenders coming back, things started
normalizing by mid of November 2018.
We have witnessed two different trends during past quarter earnings whereby NBFCs like
MMFS has preferred to maintain healthy growth momentum irrespective of cost and
availability of funds whereas others like SHTF, EDEL, LTFH, SCUF etc has preferred
alternate route of balance sheet consolidation and managing profitability.
For Emkay NBFC coverage universe, we have witnessed NII growth of ~26.8% yoy mainly
backed by low base effect and improved yoy margins. Similarly profits also grew by ~28.8%
due to declining credit costs (post IND AS implementation) and stable operating expenses.
On asset quality front, no major negative surprise was witnessed post transition to IND AS.
NBFCs under our coverage universe continued to report steady trends in asset quality and
is guiding for similar trends even for coming quarters.
We expect tight liquidity conditions would stay for a while and would continue to affect
growth prospects for most of NBFCs under coverage. Managements will maintain their
preference towards liquidity over growth in near term. This along with weak demand
(especially for Auto segment) and overhang of upcoming general elections would remain
major overhang over overall disbursements, as well as revenue and PAT growth for
Q4FY19.
Bajaj Finance remains our top pick among the sector considering superior market
positioning, low ticket retail lending and healthy liability franchise. We also remain
structurally positive on MMFS and CIFC considering diversified product portfolio, better
borrowing mix and improved ALM profile. We also like HDFC Limited due to its ability to
gain market share during recent times and attractive risk reward.
Leaders: Bajaj Finance; Laggards: Shriram City Union Finance, Shriram Transport,
Edelweiss.
BFSI India Equity Research | Sector Update
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ED: ANISH MATHEW SA: DHANANJAY SINHA February 15, 2019 | 9
Exhibit 25: Review of Q3FY19 performance
Companies Dec’18 Sep’18 Dec’17 % Chg YoY % Chg QoQ
Bajaj Finance
CMP(Rs) 2,591 NII (Rs mn) 30,941 26,652 21,822 41.8 16.1
Mkt Cap (Rs bn) 1,501 Op. Profit (Rs mn) 20,323 17,386 13,444 51.2 16.9
Reco BUY NIM (%) 11.8 11.0 11.6 75bps 19bps
Target Price (Rs) 2,971 PAT (Rs mn) 10,227 9,203 6,918 47.8 11.1
% Upside 14.67% EPS (Rs) 17.7 16.0 12.0 47.4 11.1
Cholamandalam Inv
CMP(Rs) 1,203 NII (Rs mn) 8,746 8,119 7,164 22.1 7.7
Mkt Cap (Rs bn) 193.55 Op. Profit (Rs mn) 5,588 5,207 4,345 28.6 7.3
Reco BUY NIM (%) 7.1 7.0 7.5 15bps -37bps
Target Price (Rs) 1,362 PAT (Rs mn) 3,044 3,047 2,194 38.7 -0.1
% Upside 13% EPS (Rs) 19.5 19.5 14.0 38.7 -0.1
HDFC
CMP(Rs) 1,931 NII (Rs mn) 28,711 26,288 24,420 17.6 9.2
Mkt Cap (Rs bn) 3,378 Op. Profit (Rs mn) 29,844 28,904 23,525 26.9 3.3
Reco BUY NIM (%) 3.1 2.9 3.3 17bps -20bps
Target Price (Rs) 2,260 PAT (Rs mn) 21,135 18,777 10,894 94.0 12.6
% Upside 17% EPS (Rs) 12.3 14.5 33.2 -62.8 -15.1
L&T Finance Holdings
CMP(Rs) 123 NII (Rs mn) 16,517 16,764 11,924 38.5 -1.5
Mkt Cap (Rs bn) 252.43 Op. Profit (Rs mn) 11,918 11,494 8,325 43.2 3.7
Reco ACCUMULATE NIM (%) 6.8 6.9 6.9
Target Price (Rs) 161 PAT (Rs mn) 5,799 5,591 3,255 78.2 3.7
% Upside 31% EPS (Rs) 2.9 2.8 2.0 48.0 3.2
LIC Housing Finance
CMP(Rs) 442 NII (Rs mn) 10,423 10,571 7,375 41.3 -1.4
Mkt Cap (Rs bn) 124.19 Op. Profit (Rs mn) 9,921 9,647 7,304 35.8 2.8
Reco HOLD NIM (%) 2.3 2.5 1.9 -12bps 41bps
Target Price (Rs) 475 PAT (Rs mn) 5,963 5,732 4,751 25.5 4.0
% Upside 7% EPS (Rs) 11.8 11.4 9.4 25.5 4.0
Magma Fincorp
CMP(Rs) 85 NII (Rs mn) 3,378 3,498 2,985 13.2 -3.4
Mkt Cap (Rs bn) 26.38 Op. Profit (Rs mn) 1,721 1,942 1,530 12.5 -11.4
Reco BUY NIM (%) 8.2 8.6 7.6 -43bps 53bps
Target Price (Rs) 123 PAT (Rs mn) 740 766 448 65.0 -3.4
% Upside 45% EPS (Rs) 2.7 2.8 1.9 45.2 -3.4
Mahindra Finance
CMP(Rs) 376 NII (Rs mn) 12,040 11,666 10,028 20.1 3.2
Mkt Cap (Rs bn) 246.74 Op. Profit (Rs mn) 7,444 7,869 6,622 12.4 -5.4
Reco BUY NIM (%) 7.9 8.1 8.4 -27bps -54bps
Target Price (Rs) 516 PAT (Rs mn) 3,187 3,814 3,314 -3.8 -16.4
% Upside 37% EPS (Rs) 5.2 6.2 6.4 -19.7 -16.5
Shriram City Union Finance
CMP(Rs) 1,545 NII (Rs mn) 8,829 9,769 9,142 -3.4 -9.6
Mkt Cap (Rs bn) 104.08 Op. Profit (Rs mn) 5,361 6,243 5,681 -5.6 -14.1
Reco ACCUMULATE NIM (%) 12.1 13.3 14.3 -119bps -222bps
Target Price (Rs) 1,879 PAT (Rs mn) 2,588 2,493 2,540 1.9 3.8
% Upside 22% EPS (Rs) 39.2 37.8 38.5 1.9 3.8
Shriram Transport
CMP(Rs) 1,019 NII (Rs mn) 20,337 20,557 17,482 16.3 -1.1
Mkt Cap (Rs bn) 242.36 Op. Profit (Rs mn) 16,202 16,226 13,810 17.3 -0.2
Reco BUY NIM (%) 7.8 8.0 7.9 -21bps -12bps
Target Price (Rs) 1,368 PAT (Rs mn) 6,355 6,096 5,415 17.3 4.2
% Upside 34% EPS (Rs) 28.0 26.9 23.9 17.3 4.2
Edelweiss
CMP(Rs) 128 NII (Rs mn) 15,629 14,715 12,135 28.8 6.2
Mkt Cap (Rs bn) 124.19 Op. Profit (Rs mn) 4,578 4,584 3,487 31.3 -0.1
Reco ACCUMULATE NIM (%) 8.6 7.7 7.5 90bps 110bps
Target Price (Rs) 190 PAT (Rs mn) 2,261 2,723 2,350 -3.8 -17.0
% Upside 48% EPS (Rs) 2.6 3.1 2.6 -0.6 -17.0
Source: Company, Emkay Research
BFSI India Equity Research | Sector Update
Emkay Research is also available on www.emkayglobal.com, Bloomberg EMKAY<GO>, Reuters and DOWJONES.
ED: ANISH MATHEW SA: DHANANJAY SINHA February 15, 2019| 10
Annexure 1: SBI MaxGain Home Loan Product
The MaxGain Home Loan product by SBI has been gaining traction/prominence recently. It is
effectively a regular home loan with an overdraft (OD) facility and comes with a limit equal to the
approved home loan amount, and the home acting as collateral against the OD. The OD-like
features of this product ensure savings for the customer in the form of lower cumulative interest
costs without compromising on the liquidity of the customer. MaxGain home loans are typically
priced 5-20bps higher than an equivalent plain vanilla home loan product.
Plain vanilla home loan vs. MaxGain home loan - How it works?
In a plain vanilla home loan, one can make a partial pre-payment and the outstanding
principal will be reduced by that amount. The prepaid amount is no longer available to the
customer.
In a MaxGain home loan, the customer can deposit money in the home loan account and
reduce the outstanding balance. The surplus/prepaid amount can be again withdrawn from
the account whenever required, thus, maintaining the customer’s liquidity.
Moreover, whenever surplus funds are parked in the MaxGain account, the interest charged
for that duration will be on the reduced balance, resulting in savings on interest outgo for
the customer.
Interest saved is interest earned. When compared to parking surplus funds in savings
accounts/fixed deposits, depositing them in the MaxGain account would not only earn a
higher differential rate, but also rationalize the tax outgo.
Exhibit 26: SBI MaxGain Home Loan Product
Source: Company, Emkay Research
BFSI India Equity Research | Sector Update
Emkay Research is also available on www.emkayglobal.com, Bloomberg EMKAY<GO>, Reuters and DOWJONES.
ED: ANISH MATHEW SA: DHANANJAY SINHA February 15, 2019| 11
Bajaj Finance RECOMMENDATION HISTORY TABLE
Date Closing
Price TP
Period (months)
Rating Analyst
29-Jan-19 2,516 2,971 12m Buy Jignesh Shial
23-Oct-18 2,083 2,690 12m Buy Jignesh Shial
19-Oct-18 2,141 2,785 12m Buy Jignesh Shial
26-Sep-18 2,316 2,785 12m Buy Jignesh Shial
24-Sep-18 2,261 2,785 12m Buy Jignesh Shial
19-Jul-18 2,520 2,785 12m Buy Jignesh Shial
29-May-18 2,077 2,375 12m Buy Jignesh Shial
17-May-18 2,067 2,375 12m Buy Jignesh Shial
10-Apr-18 1,926 2,284 12m Buy Jignesh Shial
2-Feb-18 1,629 2,200 12m Buy Umang Shah
16-Oct-17 1,886 2,000 12m Accumulate Umang Shah
18-Sep-17 1,912 2,000 12m Accumulate Umang Shah
19-Jul-17 1,542 1,750 12m Accumulate Umang Shah
18-May-17 1,315 1,450 12m Accumulate Umang Shah
30-Jan-17 1,055 1,360 12m Buy Umang Shah
22-Dec-16 765 1,020 12m Buy Umang Shah
27-Oct-16 1,105 1,100 12m Hold Umang Shah
6-Sep-16 1,127 1,100 12m Hold Umang Shah
27-Jul-16 979 1,100 12m Hold Umang Shah
25-May-16 734 792 12m Hold Umang Shah
Source: Company, Emkay Research
RECOMMENDATION HISTORY CHART
Source: Bloomberg, Company, Emkay Research
570
1056
1542
2028
2514
3000
16
-Fe
b-1
6
14
-Aug
-16
10
-Fe
b-1
7
9-A
ug-1
7
5-F
eb
-18
4-A
ug-1
8
31
-Ja
n-1
9
BUY Hold SellAccumulate Reduce PriceTarget Price
Cholamandalam Finance RECOMMENDATION HISTORY TABLE
Date Closing
Price TP
Period (months)
Rating Analyst
31-Jan-19 1,172 1,362 12m Buy Jignesh Shial
31-Oct-18 1,271 1,475 12m Buy Jignesh Shial
19-Oct-18 1,114 1,475 12m Buy Jignesh Shial
26-Sep-18 1,216 1,475 12m Buy Jignesh Shial
24-Sep-18 1,181 1,762 12m Accumulate Jignesh Shial
27-Jul-18 1,463 1,762 12m Accumulate Jignesh Shial
29-May-18 1,543 1,762 12m Accumulate Jignesh Shial
24-Apr-18 1,650 1,762 12m Accumulate Jignesh Shial
10-Apr-18 1,564 1,464 12m Accumulate Jignesh Shial
31-Jan-18 1,286 1,450 12m Accumulate Umang Shah
1-Nov-17 1,225 1,350 12m Accumulate Umang Shah
18-Sep-17 1,169 1,350 12m Accumulate Umang Shah
28-Jul-17 1,180 1,350 12m Accumulate Umang Shah
2-May-17 1,092 1,350 12m Accumulate Umang Shah
27-Jan-17 1,048 1,150 12m Accumulate Umang Shah
29-Dec-16 988 1,135 12m Accumulate Umang Shah
28-Oct-16 1,185 1,370 12m Buy Umang Shah
6-Sep-16 1,109 1,370 12m Buy Umang Shah
1-Aug-16 1,152 1,370 12m Buy Umang Shah
2-May-16 851 1,000 12m Buy Umang Shah
Source: Company, Emkay Research
RECOMMENDATION HISTORY CHART
Source: Bloomberg, Company, Emkay Research
630
859
1088
1317
1546
1775
16
-Fe
b-1
6
14
-Aug
-16
10
-Fe
b-1
7
9-A
ug-1
7
5-F
eb
-18
4-A
ug-1
8
31
-Ja
n-1
9
BUY Hold SellAccumulate Reduce PriceTarget Price
BFSI India Equity Research | Sector Update
Emkay Research is also available on www.emkayglobal.com, Bloomberg EMKAY<GO>, Reuters and DOWJONES.
ED: ANISH MATHEW SA: DHANANJAY SINHA February 15, 2019| 12
Edelweiss Financial Services RECOMMENDATION HISTORY TABLE
Date Closing
Price TP
Period (months)
Rating Analyst
25-Jan-19 159 190 12m Accumulate Jignesh Shial
29-Oct-18 148 211 12m Buy Jignesh Shial
26-Sep-18 212 286 12m Buy Jignesh Shial
24-Sep-18 216 325 12m Buy Jignesh Shial
29-May-18 339 361 12m Buy Jignesh Shial
4-May-18 292 361 12m Buy Jignesh Shial
10-Apr-18 264 354 12m Buy Jignesh Shial
7-Nov-17 279 368 12m Buy Umang Shah
4-Aug-17 225 280 12m Buy Umang Shah
Source: Company, Emkay Research
RECOMMENDATION HISTORY CHART
Source: Bloomberg, Company, Emkay Research
40
107
174
241
308
375
16
-Fe
b-1
6
14
-Aug
-16
10
-Fe
b-1
7
9-A
ug-1
7
5-F
eb
-18
4-A
ug-1
8
31
-Ja
n-1
9
BUY Hold SellAccumulate Reduce PriceTarget Price
HDFC RECOMMENDATION HISTORY TABLE
Date Closing
Price TP
Period (months)
Rating Analyst
29-Jan-19 1,922 2,260 12m Buy Jignesh Shial
1-Nov-18 1,762 2,142 12m Buy Jignesh Shial
19-Oct-18 1,660 2,142 12m Buy Jignesh Shial
26-Sep-18 1,767 2,142 12m Buy Jignesh Shial
24-Sep-18 1,719 2,264 12m Accumulate Jignesh Shial
30-Jul-18 2,029 2,264 12m Accumulate Jignesh Shial
29-May-18 1,810 2,171 12m Hold Jignesh Shial
30-Apr-18 1,883 2,171 12m Hold Jignesh Shial
18-Apr-18 1,878 2,158 12m Hold Jignesh Shial
10-Apr-18 1,818 2,158 12m Hold Jignesh Shial
30-Jan-18 1,938 2,161 12m Hold Umang Shah
31-Oct-17 1,707 1,700 12m Hold Umang Shah
26-Jul-17 1,633 1,670 12m Hold Umang Shah
4-May-17 1,564 1,528 12m Hold Umang Shah
31-Jan-17 1,366 1,467 12m Hold Umang Shah
2-May-16 1,092 1,295 12m Accumulate Umang Shah
Source: Company, Emkay Research
RECOMMENDATION HISTORY CHART
Source: Bloomberg, Company, Emkay Research
1020
1271
1522
1773
2024
2275
16
-Fe
b-1
6
14
-Aug
-16
10
-Fe
b-1
7
9-A
ug-1
7
5-F
eb
-18
4-A
ug-1
8
31
-Ja
n-1
9
BUY Hold SellAccumulate Reduce PriceTarget Price
BFSI India Equity Research | Sector Update
Emkay Research is also available on www.emkayglobal.com, Bloomberg EMKAY<GO>, Reuters and DOWJONES.
ED: ANISH MATHEW SA: DHANANJAY SINHA February 15, 2019| 13
L&T Finance Holdings RECOMMENDATION HISTORY TABLE
Date Closing
Price TP
Period (months)
Rating Analyst
22-Jan-19 137 161 12m Accumulate Jignesh Shial
25-Oct-18 117 160 12m Buy Jignesh Shial
26-Sep-18 132 202 12m Buy Jignesh Shial
24-Sep-18 130 226 12m Buy Jignesh Shial
23-Jul-18 171 226 12m Buy Jignesh Shial
29-May-18 172 238 12m Buy Jignesh Shial
7-May-18 177 238 12m Buy Jignesh Shial
10-Apr-18 172 226 12m Buy Jignesh Shial
24-Jan-18 179 250 12m Buy Umang Shah
Source: Company, Emkay Research
RECOMMENDATION HISTORY CHART
Source: Bloomberg, Company, Emkay Research
50
90
130
170
210
250
16
-Fe
b-1
6
14
-Aug
-16
10
-Fe
b-1
7
9-A
ug-1
7
5-F
eb
-18
4-A
ug-1
8
31
-Ja
n-1
9
BUY Hold SellAccumulate Reduce PriceTarget Price
LIC Housing Finance RECOMMENDATION HISTORY TABLE
Date Closing
Price TP
Period (months)
Rating Analyst
31-Jan-19 449 475 12m Hold Jignesh Shial
30-Oct-18 406 461 12m Hold Jignesh Shial
26-Sep-18 433 461 12m Hold Jignesh Shial
24-Sep-18 427 525 12m Hold Jignesh Shial
27-Aug-18 529 525 12m Hold Jignesh Shial
29-May-18 488 572 12m Hold Jignesh Shial
25-Apr-18 547 572 12m Hold Jignesh Shial
18-Apr-18 559 571 12m Hold Jignesh Shial
10-Apr-18 561 571 12m Hold Jignesh Shial
31-Oct-17 599 650 12m Hold Umang Shah
31-Jul-17 690 730 12m Hold Umang Shah
26-Apr-17 676 730 12m Hold Umang Shah
17-Jan-17 532 570 12m Hold Umang Shah
21-Oct-16 600 625 12m Hold Umang Shah
19-Jul-16 508 500 12m Hold Umang Shah
20-Apr-16 467 500 12m Hold Umang Shah
Source: Company, Emkay Research
RECOMMENDATION HISTORY CHART
Source: Bloomberg, Company, Emkay Research
390
472
554
636
718
800
16
-Fe
b-1
6
14
-Aug
-16
10
-Fe
b-1
7
9-A
ug-1
7
5-F
eb
-18
4-A
ug-1
8
31
-Ja
n-1
9
BUY Hold SellAccumulate Reduce PriceTarget Price
BFSI India Equity Research | Sector Update
Emkay Research is also available on www.emkayglobal.com, Bloomberg EMKAY<GO>, Reuters and DOWJONES.
ED: ANISH MATHEW SA: DHANANJAY SINHA February 15, 2019| 14
Magma Fincorp RECOMMENDATION HISTORY TABLE
Date Closing
Price TP
Period (months)
Rating Analyst
31-Jan-19 98 123 12m Buy Jignesh Shial
2-Nov-18 108 176 12m Buy Jignesh Shial
26-Sep-18 128 176 12m Buy Jignesh Shial
24-Sep-18 121 202 12m Buy Jignesh Shial
20-Aug-18 145 202 12m Buy Jignesh Shial
29-May-18 180 225 12m Buy Jignesh Shial
10-May-18 173 225 12m Buy Jignesh Shial
10-Apr-18 160 227 12m Buy Jignesh Shial
2-Feb-18 159 230 12m Buy Umang Shah
10-Nov-17 175 200 12m Accumulate Umang Shah
18-Sep-17 184 200 12m Accumulate Umang Shah
3-Aug-17 172 175 12m Accumulate Umang Shah
12-May-17 133 150 12m Buy Umang Shah
5-Apr-17 122 150 12m Buy Umang Shah
10-Feb-17 98 115 12m Accumulate Umang Shah
4-Nov-16 101 120 12m Buy Umang Shah
6-Sep-16 100 125 12m Buy Umang Shah
16-Aug-16 102 125 12m Buy Umang Shah
28-Jun-16 105 130 12m Buy Umang Shah
13-May-16 89 130 12m Buy Umang Shah
28-Mar-16 76 130 12m Buy Umang Shah
Source: Company, Emkay Research
RECOMMENDATION HISTORY CHART
Source: Bloomberg, Company, Emkay Research
70
106
142
178
214
250
16
-Fe
b-1
6
14
-Aug
-16
10
-Fe
b-1
7
9-A
ug-1
7
5-F
eb
-18
4-A
ug-1
8
31
-Ja
n-1
9
BUY Hold SellAccumulate Reduce PriceTarget Price
Mahindra Finance RECOMMENDATION HISTORY TABLE
Date Closing
Price TP
Period (months)
Rating Analyst
25-Jan-19 417 516 12m Buy Jignesh Shial
24-Oct-18 401 486 12m Buy Jignesh Shial
19-Oct-18 356 486 12m Buy Jignesh Shial
26-Sep-18 422 486 12m Buy Jignesh Shial
24-Sep-18 393 542 12m Accumulate Jignesh Shial
30-Jul-18 513 542 12m Accumulate Jignesh Shial
29-May-18 473 515 12m Accumulate Jignesh Shial
25-Apr-18 507 515 12m Accumulate Jignesh Shial
10-Apr-18 488 508 12m Accumulate Jignesh Shial
24-Jan-18 490 520 12m Hold Umang Shah
26-Oct-17 417 290 12m Sell Umang Shah
18-Sep-17 436 290 12m Sell Umang Shah
25-Jul-17 399 290 12m Sell Umang Shah
25-Apr-17 340 290 12m Sell Umang Shah
14-Mar-17 280 240 12m Sell Umang Shah
25-Jan-17 286 240 12m Sell Umang Shah
26-Oct-16 363 363 12m Accumulate Umang Shah
26-Jul-16 314 363 12m Accumulate Umang Shah
25-Apr-16 298 390 12m Buy Umang Shah
Source: Company, Emkay Research
RECOMMENDATION HISTORY CHART
Source: Bloomberg, Company, Emkay Research
200
270
340
410
480
550
16
-Fe
b-1
6
14
-Aug
-16
10
-Fe
b-1
7
9-A
ug-1
7
5-F
eb
-18
4-A
ug-1
8
31
-Ja
n-1
9
BUY Hold SellAccumulate Reduce PriceTarget Price
BFSI India Equity Research | Sector Update
Emkay Research is also available on www.emkayglobal.com, Bloomberg EMKAY<GO>, Reuters and DOWJONES.
ED: ANISH MATHEW SA: DHANANJAY SINHA February 15, 2019| 15
Shriram City Union Finance RECOMMENDATION HISTORY TABLE
Date Closing
Price TP
Period (months)
Rating Analyst
28-Jan-19 1,752 1,879 12m Accumulate Jignesh Shial
26-Oct-18 1,566 2,002 12m Accumulate Jignesh Shial
26-Sep-18 1,725 2,156 12m Accumulate Jignesh Shial
24-Sep-18 1,726 2,448 12m Accumulate Jignesh Shial
26-Jul-18 1,907 2,448 12m Accumulate Jignesh Shial
29-May-18 2,146 2,449 12m Hold Jignesh Shial
27-Apr-18 2,395 2,449 12m Hold Jignesh Shial
10-Apr-18 2,280 2,464 12m Hold Jignesh Shial
3-Nov-17 2,247 2,380 12m Hold Umang Shah
18-Sep-17 2,152 - 12m UR Umang Shah
2-Aug-17 2,326 - 12m UR Umang Shah
13-Jul-17 2,243 - 12m UR Umang Shah
3-May-17 2,139 2,100 12m Hold Umang Shah
31-Jan-17 1,894 2,220 12m Hold Umang Shah
28-Oct-16 2,497 2,445 12m Hold Umang Shah
28-Sep-16 2,181 2,445 12m Hold Umang Shah
24-Jun-16 1,592 1,655 12m Hold Umang Shah
28-Apr-16 1,659 1,655 12m Hold Umang Shah
Source: Company, Emkay Research
RECOMMENDATION HISTORY CHART
Source: Bloomberg, Company, Emkay Research
0
520
1040
1560
2080
2600
16
-Fe
b-1
6
14
-Aug
-16
10
-Fe
b-1
7
9-A
ug-1
7
5-F
eb
-18
4-A
ug-1
8
31
-Ja
n-1
9
BUY Hold SellAccumulate Reduce PriceTarget Price
Shriram Transport Finance RECOMMENDATION HISTORY TABLE
Date Closing
Price TP
Period (months)
Rating Analyst
29-Jan-19 1,027 1,368 12m Buy Jignesh Shial
26-Oct-18 1,072 1,510 12m Buy Jignesh Shial
26-Sep-18 1,189 1,502 12m Buy Jignesh Shial
24-Sep-18 1,135 1,810 12m Buy Jignesh Shial
26-Jul-18 1,411 1,810 12m Buy Jignesh Shial
29-May-18 1,526 1,818 12m Buy Jignesh Shial
28-Apr-18 1,627 1,818 12m Buy Jignesh Shial
10-Apr-18 1,561 1,754 12m Buy Jignesh Shial
30-Jan-18 1,375 1,501 12m Hold Umang Shah
1-Nov-17 1,197 1,250 12m Hold Umang Shah
18-Sep-17 1,085 - 12m UR Umang Shah
31-Jul-17 1,017 - 12m UR Umang Shah
13-Jul-17 1,026 - 12m UR Umang Shah
27-Apr-17 1,041 850 12m Reduce Umang Shah
31-Jan-17 955 880 12m Reduce Umang Shah
26-Oct-16 1,128 849 12m Reduce Umang Shah
6-Sep-16 1,238 849 12m Reduce Umang Shah
28-Jul-16 1,233 849 12m Reduce Umang Shah
2-May-16 1,083 849 12m Reduce Umang Shah
Source: Company, Emkay Research
RECOMMENDATION HISTORY CHART
Source: Bloomberg, Company, Emkay Research
0
365
730
1095
1460
1825
16
-Fe
b-1
6
14
-Aug
-16
10
-Fe
b-1
7
9-A
ug-1
7
5-F
eb
-18
4-A
ug-1
8
31
-Ja
n-1
9
BUY Hold SellAccumulate Reduce PriceTarget Price
BFSI India Equity Research | Sector Update
Emkay Research is also available on www.emkayglobal.com, Bloomberg EMKAY<GO>, Reuters and DOWJONES.
ED: ANISH MATHEW SA: DHANANJAY SINHA February 15, 2019| 16
Emkay Rating Distribution
BUY Expected total return (%) (Stock price appreciation and dividend yield) of over 25% within the next 12-18 months.
ACCUMULATE Expected total return (%) (Stock price appreciation and dividend yield) of over 10% within the next 12-18 months.
HOLD Expected total return (%) (Stock price appreciation and dividend yield) of upto 10% within the next 12-18 months.
REDUCE Expected total return (%) (Stock price depreciation) of upto (-) 10% within the next 12-18 months.
SELL The stock is believed to underperform the broad market indices or its related universe within the next 12-18 months.
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DISCLAIMERS AND DISCLOSURES: Emkay Global Financial Services Limited (CIN-L67120MH1995PLC084899) and its affiliates are a full-service, brokerage, investment banking, investment
management and financing group. Emkay Global Financial Services Limited (EGFSL) along with its affiliates are participants in virtually all securities trading markets in India. EGFSL was established in 1995
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Other disclosures by Emkay Global Financial Services Limited (Research Entity) and its Research Analyst under SEBI (Research Analyst) Regulations, 2014 with reference to the subject
company(s) covered in this report-:
EGFSL or its associates may have financial interest in the subject company.
Research Analyst or his/her relative’s financial interest in the subject company. (NO)
EGFSL or its associates and Research Analyst or his/her relative’s does not have any material conflict of interest in the subject company. The research Analyst or research entity (EGFSL) have not been
engaged in market making activity for the subject company.
EGFSL or its associates may have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of Research Report.
Research Analyst or his/her relatives have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of Research
Report: (NO)
EGFSL or its associates may have received any compensation including for investment banking or merchant banking or brokerage services from the subject company in the past 12 months. EGFSL or its
associates may have received compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months. EGFSL or
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The research Analyst has served as officer, director or employee of the subject company: (NO)
The Research Analyst has received any compensation from the subject company in the past twelve months: (NO)
The Research Analyst has managed or co‐managed public offering of securities for the subject company in the past twelve months: (NO)
The Research Analyst has received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months: (NO)
The Research Analyst has received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months:
(NO)
The Research Analyst has received any compensation or other benefits from the subject company or third party in connection with the research report: (NO)
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ED: ANISH MATHEW SA: DHANANJAY SINHA February 15, 2019| 17
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