2qfy24 Review Strategy 20231115 Mofsl Su Pg064

November 2023
India Strategy
BSE Sensex: 65,676 Nifty-50: 19,675
Earnings review – 2QFY24: A broad-based beat!
Refer to our Sep’23
Quarter Preview BFSI and Automobiles drive earnings; Nifty EPS experiences an upward revision
 Corporate earnings – sparkling: The 2QFY24 corporate earnings ended on a
buoyant note with a widespread outperformance across aggregates driven by
margin tailwinds. Domestic cyclicals such as Automobiles, BFSI and Cement
drove the beat. Forward earnings for Nifty were revised upwards by ~1% each
for FY24/25.
 Financials and Autos drive 2QFY24 earnings: The aggregate earnings of the
MOFSL Universe companies rose 48% YoY (vs. est. of +40%). Earnings for Nifty-
50 posted a solid 28% growth (vs. est. of +21%). The earnings growth in MOFSL
Universe was led by domestic cyclicals, such as BFSI and Auto. BFSI clocked a
33% YoY growth, while the Auto sector registered a notable growth of 112% YoY
(vs. est. of +87%), driven by Tata Motors, Maruti, and M&M. OMC’s profitability
surged to INR266b in 2QFY24 vs. a loss of INR27b in 2QFY23, owing to strong
marketing margins. Ex-OMCs, MOFSL earnings grew 30% YoY, which were above
our estimate of 23%. Notably, the earnings of MOFSL Metals Universe jumped
39% YoY (vs. est. of +7% only). Healthcare also posted a healthy beat with 15%
earnings growth (vs. est of +6%). The Consumer sector posted an in-line 17%
earnings growth, while the IT posted a tepid but in-line 5% YoY earnings growth.
 Heavyweights buck up the quarter: Nifty delivered a beat with a 28% YoY PAT
growth (vs. est. of +21%). Five Nifty companies - BPCL, HDFC Bank, Tata Motors,
JSW Steel, and Reliance Industries - contributed 68% of the incremental YoY
accretion in earnings. Ex-OMCs, Nifty’s earnings grew 22% YoY (Vs. est. of
+15%). Ex-Metals & O&G, Nifty earnings were up 32% (Vs. est. of +27%).
 The beat-miss dynamics: The beat-miss ratio for the MOFSL Universe was
favorable with 38% of the companies beating our estimates, while 28% missed
our estimates at the PAT level. For MOFSL Universe, however, the earnings
upgrade-to-downgrade ratio has been balanced for FY24E as 75 companies’
earnings have been upgraded by >3%, while 75 companies’ earnings have been
downgraded by >3%. The EBITDA margin of MOFSL Universe (ex-Financials)
improved 460bp YoY to 17.6%.
 Report card: Of the 21 sectors under our Coverage, 10/9/2 sectors reported
2QFY24: Expectations vs. delivery
profits above/in-line/below our estimates. Of the 239 companies under our
Coverage, 92 exceeded profit estimates, 66 posted a miss, and 81 were in line.
% of companies that have declared results
Above Expectations In-line Below Expectations  The 1HFY24 and 2HFY24E snapshot: The MOFSL/Nifty Universes delivered
50%/30% YoY earnings growth in 1HFY24. Excluding OMCs, MOFSL/Nifty
reported 25%/20% YoY earnings growth. For 2HFY24, we expect MOFSL/Nifty
MOFSL 38 34 28
earnings to report a growth of 18%/12% YoY.
 FY24E earnings highlights: The MOFSL Universe is likely to deliver sales/EBITDA/
PAT
PAT growth of 7%/23%/35% YoY in FY24. The Auto, O&G, and Banks (Private/PSU)
sectors are projected to be the key growth drivers with 87%, 75% and 31% YoY
Nifty 42 46 12
earnings growth, respectively. They are likely to contribute 77% to earnings growth.
 We raise our FY24E Nifty EPS by 1.1% to INR996 (earlier: INR986) due to the
notable earnings upgrades in Coal India, HDFC Bank, Maruti Suzuki, BPCL, and ICICI
Bank. We now expect the Nifty EPS to grow ~24%/14% YoY in FY24/ FY25.
Gautam Duggad – Research Analyst (Gautam.Duggad@MotilalOswal.com)
Research Analyst: Deven Mistry (Deven@MotilalOswal.com) | Aanshul Agarawal (Aanshul.Agarawal@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.
India Strategy | Review 2QFY24
2QFY24: PAT growth YoY (%) Key sectoral highlights – 1) Technology: IT Services companies (of MOFSL Universe)
reported a weak performance (although in line) in 2QFY24, with a median revenue
57
growth of 1% QoQ in constant currency (CC), in an otherwise seasonally strong
48
quarter. 2) Banks: The banking sector reported a mixed performance in 2QFY24,
driven by healthy business growth and sustained improvement in asset quality.
32 30 However, the margin trajectory continues to compress further, led by an increase in
funding costs. 4) Auto: The quarter saw upgrades for FY24E, mainly to incorporate
the advantages of improved gross margin and cost efficiencies, which ultimately
supported overall profitability. 5) Consumer: The companies within our coverage
universe delivered muted cumulative sales growth in 2QFY24. Volume growth has
remained at the same level as seen in 1Q, still remaining at lower levels due to the
MOFSL Ex BFSI Ex Ex
Univ. Metals OMCs
persistent softness in rural India.
& Oil  The top earnings upgrades in FY24E: Coal India (18.1%), Tata Steel (13.7%),
Maruti Suzuki (10.2%), Titan Company (8.3%), and JSW Steel (8.2%).
 The top earnings downgrades in FY24E: Apollo Hospitals (-12.7%), UPL (-11%),
ONGC (-9%), Bharti Airtel (-8.2%), and Wipro (-8.2%).
 Our view: The corporate earnings for 2QFY24 have been marginally above
expectations, with the BFSI and Automobile sectors driving the overall
performance. The spread of earnings has been satisfactory, with 72% of our
Coverage Universe either meeting or exceeding profit expectations. The margin
tailwind will moderate in the second half of FY24 due to the base effect and an
increase in certain commodity prices. Nifty is trading at a 12-month forward P/E
ratio of 17.8x, which is at 12% discount vs. its long-period average (LPA). We
largely maintain our sectoral allocations and weights, relying on the sectors that
have shown growth potential to drive our stock selection framework. We
remain OW on Financials, Consumption, Industrials, Automobiles and
Healthcare; while we maintain our UW stance on Metals, Energy, IT and
Utilities, and Neutral outlook on Telecom in our model portfolio.
Exhibit 1: Preferred ideas
MCap CMP EPS (INR) EPS CAGR PE (x) PB (x) ROE (%)
Company (USDb (INR) FY23 FY24E FY25E FY23-25 FY23 FY24E FY25E FY23 FY24E FY25E FY23 FY24E FY25E
Preferred large cap stocks
ICICI Bank 78.3 935 45.8 57.0 65.5 19.6 19.2 16.4 14.3 3.1 2.8 2.4 17.5 18.6 18.3
ITC 64.1 436 15.1 16.6 19.0 12.3 25.4 26.3 22.9 7.1 7.6 7.2 29.0 29.8 32.4
State Bank 62.3 581 62.4 78.1 89.5 19.8 8.4 7.4 6.5 1.4 1.3 1.1 18.1 19.1 18.3
Bajaj Finance 53.4 7,360 190.4 240.1 309.8 27.6 29.5 30.6 23.8 6.2 6.0 4.9 23.4 22.7 22.6
Larsen & Toubro 51.4 3,048 74.3 93.9 116.0 25.0 29.2 32.4 26.3 3.4 4.3 3.9 12.1 14.0 15.5
HCL Technologies 41.1 1,261 54.8 58.1 65.9 9.7 19.8 21.7 19.1 4.5 5.3 5.4 23.3 24.2 27.9
Titan Company 34.8 3,265 36.8 46.1 59.9 27.7 68.4 70.8 54.5 18.8 19.8 16.0 30.8 30.9 32.5
Ultratech Cement 30.0 8,676 175.4 256.4 311.5 33.3 43.4 33.8 27.9 4.0 4.1 3.7 9.7 12.9 14.0
Avenue Supermarts 29.5 3,796 36.7 41.8 58.2 25.9 92.7 90.8 65.2 13.2 12.6 10.5 16.0 15.5 18.2
Mahindra & Mahindra 22.1 1,540 64.9 90.7 95.6 21.4 17.9 17.0 16.1 3.2 3.6 3.0 19.1 22.8 20.4
Zomato 12.6 122 -1.2 0.3 1.0 LP -42.8 437.5 119.5 2.1 5.3 5.1 -5.4 1.2 4.4
Preferred midcap/smallcap
Indian Hotels 7.0 411 7.0 8.6 10.2 20.1 46.1 47.7 40.4 5.8 6.4 5.6 13.3 14.3 14.8
Ashok Leyland 6.1 174 4.5 9.2 11.5 59.5 30.8 19.0 15.2 4.8 4.9 3.8 16.8 28.4 28.3
Godrej Properties 6.1 1,821 22.4 24.8 43.9 40.1 46.1 73.5 41.5 3.1 5.1 4.6 6.9 7.2 11.5
Metro Brands 4.1 1,261 13.3 13.4 18.5 18.0 59.7 93.9 68.1 13.6 18.8 16.0 25.7 22.0 26.0
M & M Financial 4.0 272 16.1 15.3 22.5 18.4 14.4 17.8 12.1 1.7 1.9 1.7 12.6 11.1 15.1
CreditAccess 3.3 1,725 52.0 93.4 112.7 47.3 17.6 18.5 15.3 2.8 4.2 3.3 18.2 25.4 23.9
Angel One 2.8 2,813 107.5 137.6 160.7 22.3 10.8 20.4 17.5 4.5 8.1 6.4 47.6 45.3 40.8
Kajaria Ceramics 2.5 1,290 21.4 28.8 36.3 30.3 49.3 44.8 35.5 7.2 8.1 7.3 15.2 18.8 21.6
Craftsman Auto 1.2 4,799 117.6 186.0 224.9 38.3 27.6 25.8 21.3 5.0 5.8 4.7 19.7 25.2 24.3
Lemon Tree Hotel 1.1 114 1.5 2.0 3.2 45.8 51.1 57.2 35.5 7.1 8.8 7.1 14.0 16.7 22.1
Note: LP = Loss to profit; Large Cap, Mid Cap and Small Cap Stocks listed above are as per SEBI categorization
November 2023 2
Performance above expectations: BFSI and Auto perk up 2QFY24 earnings

 The MOFSL Universe’s sales/EBITDA/PBT/PAT grew at 3%/30%/46%/48% YoY
(vs. est. of +6%/27%/39%/40%). Excluding OMCs, the MOFSL Universe
companies recorded a sales/EBITDA/PBT/PAT growth of 7%/20%/29%/30% YoY
(v/s est. of +6%/17%/22%/23%) in 2QFY24.
 Corporate earnings in 2QFY24 exceeded expectations, with MOFSL estimates
primarily being driven by the Financials and Auto sectors. The Metals sector also
contributed to earnings with a 39% YoY growth after five consecutive quarters of
decline.
 The banking sector reported a mixed performance in 2QFY24, driven by healthy
business growth and sustained improvement in asset quality. However, the
margin trajectory continues to compress further, led by a rise in funding costs.
Several factors supported credit expansion, with the Retail and MSME sectors
exhibiting robust growth, along with growth in the corporate book.
 The EBITDA margin of the MOFSL Universe (ex-Financials) expanded 460bp YoY
to 17.6%. Gross margin for major sectors expanded sharply, while the margin for
a few contracted. In 2QFY24, 10 out of the 13 major sectors under MOFSL
Coverage reported an expansion in gross margin YoY, while three sectors
witnessed a contraction.
Exhibit 2: Sector-wise 2QFY24 performance of MOFSL Universe companies (INR b)

Sales EBIDTA PBT PAT
Sector Var. Var. Var. Var.
Chg. % Chg. % Chg. % Chg. % Chg. % Chg. % Chg. % Chg. %
(no of companies) Sep-23 over Sep-23 over Sep-23 over Sep-23 over
QoQ YoY QoQ YoY QoQ YoY QoQ YoY
Exp. % Exp. % Exp. % Exp. %
Automobiles (24) 2,760 5.0 21.0 0.2 371 8.7 63 3.9 280 18.7 121.0 16.5 205 14.6 112.2 13.5
Cement (11) 488 -8.1 11.6 0.5 73 -11.2 54.8 1.7 53 -3 90.4 9.1 41 -1.5 96.7 14.6
Chemicals-Specialty (9) 62 -1.7 -17.4 -2.6 11 -2.9 -19 -4.1 9 -3.9 -22.9 -3.3 7 -3.3 -21.8 -3.1
Consumer (19) 801 -0.1 4.4 -1.8 196 -2.3 13.7 -0.3 192 -1 17.9 2.6 144 -1.0 17.5 2.3
Financials (49) 2,560 10.1 18.6 0.3 1,391 0.7 16 -0.2 1,131 2.8 32.0 4.3 852 4.6 32.9 5.2
Banks-Private (13) 831 6.3 24.2 -0.4 620 6.6 22.6 0.2 535 9 30.9 1.0 415 12.6 35.6 4.5
Banks-PSU (6) 840 1.7 13.5 1.6 528 -9.0 6 -1.6 411 -4.6 35.0 11.2 294 -4.1 30.4 8.5
Insurance (6) 597 34.4 14.3 -1.3 31 53.7 7.8 -3.6 19 -1 15.4 -1.3 17 -2.9 14.7 4.1
NBFC - Lending (18) 261 5.2 28.1 1.3 198 4.6 30 1.6 151 2.2 31.1 -1.5 114 1.7 34.0 -1.0
NBFC - Non Lending (6) 31 25.1 36.7 13.2 14 36.8 28.0 19.1 15 32 25.9 19.3 11 26.3 25.8 18.4
Healthcare (24) 769 5.0 14.3 2.2 173 7.9 18 5.9 138 11.1 15.0 8.5 106 12.4 15.0 8.0
Infrastructure (3) 43 -9.7 7.4 -3.2 12 -8.8 3.7 -1.9 6 -20 -0.1 4.0 3 -29.5 -10.7 -11.8
Logistics (6) 69 8.2 5.9 0.1 10 17.5 -1 3.7 7 26.2 0.5 7.5 6 25.0 1.3 7.4
Media (3) 55 18.4 40.7 11.7 15 44.4 70.3 30.9 12 43 68.6 39.7 8 42.1 79.9 35.3
Metals (10) 2,772 0.0 -0.7 5.6 443 -3.2 20 16.3 257 -12.3 17.1 25.1 193 -4.2 39.5 30.9
Oil & Gas (15) 7,267 -2.6 -8.8 -10.0 1,137 -1.5 84.6 1.3 862 -1 128.2 2.4 624 -0.9 126.4 2.3
Ex OMCs (12) 3,483 7.6 -4.8 -1.7 713 4.9 29 2.3 510 9.8 23.5 3.6 358 10.4 18.2 2.9
Real Estate (9) 99 9.5 29.9 -2.7 29 20.8 37.9 3.3 24 11 68.5 13.9 19 7.8 26.6 4.3
Retail (18) 418 4.5 20.3 4.0 50 4.7 7 0.6 28 5.0 -5.5 -1.6 21 4.1 -6.8 -3.1
Staffing (3) 101 3.5 12.2 0.3 3 6.4 23.0 2.0 2 15 38.2 13.4 2 8.2 25.0 13.7
Technology (12) 1,830 0.9 6.0 -0.7 413 3.4 5 1.9 374 2.1 5.3 -1.0 277 2.4 4.9 -1.6
Telecom (4) 598 -0.3 3.9 -2.4 282 -0.1 10.1 -2.7 -4 Loss Loss PL -43 Loss Loss Loss
Others (20) 668 -1.1 1.1 -1.3 91 -24.6 29 5.2 42 -43.6 43.9 0.9 33 -50.9 72.3 24.8
MOFSL Universe (239) 21,359 1.0 2.8 -3.0 4,700 0.0 30.2 2.3 3,413 0.7 46.1 5.2 2,497 1.0 47.8 5.3
Ex Financials (190) 18,799 -0.1 1.0 -3.4 3,309 -0.2 37.1 3.4 2,282 -0.3 54.2 5.7 1,645 -0.7 56.9 5.4
Ex Metals & Oil (214) 11,319 3.7 13.1 0.0 3,120 1.1 18.8 1.0 2,294 3.0 31.9 4.5 1,680 2.4 31.7 4.1
MOFSL Ex OMCs (236) 17,574 3.9 6.8 0.5 4,276 1.3 20.5 2.6 3,060 2.5 29.0 5.8 2,231 3.0 30.0 5.8
Nifty (50) 13,943 3.4 5.1 -0.5 3,507 0.4 20.6 1.9 2,499 0.9 27.1 4.9 1,836 2.8 28.0 5.8
Sensex (30) 10,266 4.6 9.4 0.6 2,817 2.3 19.8 1.8 1,962 3.2 27.9 4.6 1,427 5.7 29.7 4.9
PL: Profit to loss
November 2023 3
Exhibit 3: Earnings at a glance for MOFSL and Nifty Universes

PAT (INR b) Growth (%) PAT
Sector Sep-23 est YoY actual YoY Var. over Exp. (%) v/s Exp
MOFSL Universe (239) 2,497 40 48 5 Above
MOFSL Ex OMCs (236) 2,231 23 30 6 Above
MOFSL Ex Metals & Oil (214) 1,680 27 32 4 In Line
MOFSL Ex Financials (190) 1,645 49 57 5 Above
Nifty (50) 1,836 21 28 6 Above
Nifty Ex OMCs (49) 1,751 15 22 6 Above
Nifty Ex Metals & Oil (43) 1,348 19 24 4 In Line
Nifty Ex Financials (40) 1,255 21 29 6 Above
MOFSL Ex Nifty Companies 815 104 111 4 In Line
Exhibit 4: PAT grew 48% YoY for Exhibit 5: PAT jumped 57% YoY for Exhibit 6: PAT rose 30% YoY for MOFSL
MOFSL Universe MOFSL Universe, excluding Financials Universe, sans OMCs
142 MOFSL Universe 231 MOFSL Ex Financials 156
MOFSL Ex OMCs
115
111
49 52 48 104 54
22 37 24 18 13 59 57 33 26 24 34 20 30
1 15 44 48 14 5 11
13 17 8 1 4
-9 -1
-26 -13
Sep- 20
June-21
Dec-20
Mar-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Sep- 20
June-21
Dec-20
Mar-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Sep- 20
June-21
Dec-20
Mar-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Exhibit 7: PAT growth for the Nifty Exhibit 8: PAT for the Nifty Universe, Exhibit 9: PAT grew 22% YoY for the
Universe stood at 28% YoY sans Financials, grew 29% YoY Nifty Universe, sans OMCs
Nifty Universe Nifty Ex Financials Nifty Ex OMCs
107 112
148
84
75
81
39 40 22 29 39
26 22 22 32 28 27 22 16 19 27 25 30
3 0 6
20 16 19 22
9 10 12 11 13
11 10 19
-3
Sep- 20
June-21
Dec-20
Mar-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Sep- 20
June-21
Dec-20
Mar-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Sep- 20
June-21
Dec-20
Mar-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Earnings upgrade-to-downgrade ratio balanced for FY24E

 For MOFSL Universe, however, the earnings upgrade-to-downgrade ratio has
been balanced for FY24E as 75 companies’ earnings have been upgraded by >3%,
while 75 companies’ earnings have been downgraded by >3%.
 The spread of earnings has been satisfactory, with 72% of our Coverage Universe
either meeting or exceeding profit expectations. Of the 239 companies under our
Coverage, 92 exceeded profit estimates, 66 posted a miss, while 81 were in line
on the PAT front.
 Of the 21 sectors under our Coverage, 10/9/2 sectors reported profits above/in-
line/below our estimates.
 Further, the upgrade-to-downgrade ratio for MOFSL Universe (ex-Nifty) has been
marginally unfavorable (at 0.9x) for FY24E as 62 companies’ earnings have been
upgraded by >3%, while 67 companies’ earnings have been downgraded by >3%.
November 2023 4
Exhibit 10: The upgrade-to-downgrade ratio trend for the MOFSL Universe
Earnings upgrade/downgrade ratio
2.7
1.7 1.7
1.0 0.9 0.9 0.9 1.0
0.8 0.7 0.7 0.7 0.8 0.6 0.8 0.7
0.5 0.5 0.6
0.3 0.3
2QFY19
3QFY19
4QFY19
1QFY20
2QFY20
3QFY20
4QFY20
1QFY21
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
Exhibit 11: Surprise/miss ratio for the MOFSL Universe at Exhibit 12: Sectoral surprise/miss ratio the highest since 11
1.4x in 2QFY24 quarters, at 5x, for the MOFSL Universe in 2QFY24
MOFSL Universe PAT (Surprise / Miss ratio) MOFSL Sector PAT (Surprise / Miss ratio)
3.4 10.0
2.4 2.3 6.5 7.0

1.8
1.5
1.8
1.5 1.4 5.0
4.0
1.00.91.20.8 1.21.1 1.0 1.1 1.31.0
0.90.8 0.9 2.3
1.0 0.8 1.2 1.7 1.3 1.2
0.3 0.3 0.5 0.5 0.5 0.9
2QFY19
3QFY19
4QFY19
1QFY20
2QFY20
3QFY20
4QFY20
1QFY21
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
1QFY20
2QFY20
3QFY20
4QFY20
1QFY21
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
Exhibit 13: Two and three-year profit CAGR for the MOFSL Universe
EBIDTA (INR b) CAGR (%) PBT (INR b) CAGR (%) PAT (INR b) CAGR (%)
Sector 2QFY21 2QFY22 2QFY24 2-yr 3-yr 2QFY21 2QFY22 2QFY24 2-yr 3-yr 2QFY21 2QFY22 2QFY24 2-yr 3-yr
Automobiles 193 160 371 53 24 99 63 280 111 41 77 31 205 159 39
Cement 78 78 73 -3 -2 55 62 53 -8 -1 39 45 41 -5 1
Chemicals-Specialty 11 11 11 -3 -1 10 10 9 -5 -1 7 8 7 -4 -1
Consumer 142 152 196 14 11 135 145 192 15 12 102 109 144 15 12
Financials 958 1,025 1,391 16 13 462 562 1,131 42 35 343 426 852 41 35
Banks-Private 409 437 620 19 15 244 253 535 45 30 184 190 415 48 31
Banks-PSU 397 427 528 11 10 118 195 411 45 52 82 148 294 41 53
Insurance 17 20 31 25 22 15 14 19 18 9 13 13 17 15 9
NBFC - Lending 129 131 198 23 16 77 90 151 29 25 58 67 114 30 25
NBFC - Non Lending 7 10 14 21 26 8 11 15 18 24 6 8 11 19 24
Healthcare 132 145 173 9 10 105 119 138 8 10 81 95 106 6 9
Infrastructure 9 12 12 0 7 3 5 6 10 21 2 3 3 3 20
Logistics 7 9 10 2 12 5 7 7 1 15 4 6 6 0 15
Media 7 8 15 35 26 6 7 12 30 29 4 5 8 27 28
Metals 342 680 443 -19 9 204 555 257 -32 8 124 416 193 -32 16
Oil & Gas 500 653 1,137 32 32 358 517 862 29 34 283 385 624 27 30
Real Estate 16 21 29 18 23 5 14 24 29 66 5 12 19 26 57
Retail 9 36 50 18 74 -2 23 28 12 -337 -2 17 21 10 -336
Staffing 3 3 3 4 5 2 2 2 -1 3 1 2 2 5 16
Technology 314 352 413 8 10 291 330 374 6 9 218 247 277 6 8
Telecom 195 224 282 12 13 -46 -23 -4 -60 -57 -56 -46 -43 -4 -9
Others 50 55 91 28 22 17 20 42 44 34 8 91 33 -40 62
MOFSL Universe 2,967 3,623 4,700 14 17 1,708 2,417 3,413 19 26 1,239 1,851 2,497 16 26
Nifty Universe 2,170 2,653 3,507 15 17 1,253 1,784 2,499 18 26 949 1,314 1,836 18 25
November 2023 5
29
Sep-18 Sep-18 Sep-18 Sep-18
-17
40%)
4 5
21
26 22
Dec-18 Dec-18 Dec-18
12
37
12
Mar-19 Dec-18 Mar-19 Mar-19
-20
6
7
November 2023
June-19 June-19 June-19
Sep-19 Mar-19 Sep-19 Sep-19
117
4 2 4
-3 -2 -5
-2 -1 -5
Mar-20 Mar-20
-25
June-19 Mar-20
-10
-30
June-20 June-20
-33
-43
June-20
-6
-5
22
4
Sep- 20 Sep-19 Sep- 20 Sep- 20
3
2
37
Nifty companies, stood flat YoY
16
18
Mar-21 Mar-21 Mar-21
115
-6
Dec-19
59
54
June-21 June-21 June-21
142
49
Sep-21 Sep-21 Sep-21
Mar-20
-26
36 31
32 29
29
26

June-20
-58
52
24 18 13
43
Jun-22 Jun-22 Jun-22
-9
31
29
Sep-22 Sep-22 Sep-22
44
Sep- 20
1
17
17 13
15
13

Exhibit 14: Sales for MOFSL Universe up 3% YoY (est. 6%)
82
Dec-20
3
-1
Jun-23 Jun-23 Jun-23
3
-1
Exhibit 19: Sales growth YoY for MOFSL Universe, excluding
Sep-23 Sep-23
52 48
Sep-23
Exhibit 16: PAT growth for MOFSL Universe at 48% YoY (est.
.
Mar-21
163
13
14
Sep-18 June-21
203
Sep-18 16.1 Sep-18
4
Dec-18
-11
Dec-18 14.3 Dec-18
13
63
10
Mar-19 Sep-21 Mar-19 16.1 Mar-19
2
June-19 June-19 15.8 June-19
4 2
-1
14
Sep-19 Dec-21 Sep-19 15.5 Sep-19
20
12
Dec-19 Dec-19 15.6 Dec-19

460bp YoY to 17.6%
-7
Mar-20
12
Mar-22 Mar-20 14.7 Mar-20
June-20
-12-17
June-20
-15
June-20 16.7
Exhibit 18: MOFSL Universe (ex-Nifty) posted 111% YoY growth in profits, driven by OMCs
29
14
-8
Sep- 20 Sep- 20 19.0 Sep- 20
excluding Nifty companies

Jun-22
36
23
Dec-20 Dec-20 19.6 Dec-20

44
Mar-21 Sep-22 Mar-21 19.5 Mar-21
-40
54
66 64
June-21 June-21 19.0 June-21
22
19
Sep-21 Dec-22 Sep-21 18.1 Sep-21
-17
Dec-21 Dec-21 17.2 Dec-21
4 5
13 12
Mar-22 Mar-22 17.2 Mar-22
14
Mar-23
6
-7
Jun-22 Jun-22 14.4 Jun-22
0
Sep-22 Sep-22
-14
Jun-23 Sep-22 13.0
104
-2
Dec-22 Dec-22 14.5 Dec-22
Exhibit 20: EBITDA growth YoY for MOFSL Universe,

7 9
7
Mar-23 Mar-23 16.1 Mar-23
Sep-23
111
28
Jun-23 Jun-23 17.6 Jun-23

Exhibit 17: EBITDA margin, excluding Financials, expanded
Exhibit 15: EBITDA for MOFSL Universe up 30% YoY (est. 27%)
30
Sep-23
40 48
Sep-23 Sep-23 17.6
6
.
Margin continues to recover

 Sales for the MOFSL Universe companies grew 3% YoY. Excluding Metals and
O&G, sales growth stood in line at 13% YoY (est. +13%).
 Sectoral sales growth: Automobile (21%), Private Banks (24%), PSU Banks (13%),
Real Estate (30%), Retail (20%), Healthcare (14%), and Technology (6%).
 EBITDA margin for the MOFSL Universe (ex-Financials) rose 460bp YoY to 17.6%.
Gross margin for major sectors spiked, while margin for a few contracted.
 In 2QFY24, 10 of the 13 major sectors under MOFSL Coverage reported an
expansion in gross margin YoY, while three sectors experienced a contraction.
Exhibit 21: Gross margin revived in several sectors during the quarter
FY21 FY22 FY23 FY24 Change
in GM
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
bps YoY
Oil & Gas 33.0 28.3 25.6 25.1 24.3 23.0 20.9 21.8 16.8 17.0 18.5 22.6 28.4 22.8 580
Others 46.2 45.1 48.7 45.5 45.4 42.8 46.0 43.1 45.0 41.8 46.3 44.2 49.4 46.2 440
Consumer 51.5 52.6 52.7 51.0 49.2 49.6 48.7 48.7 46.8 47.6 49.2 50.4 50.8 51.9 423
Metals 59.3 58.8 63.5 65.7 62.7 60.7 57.5 55.6 58.1 49.9 53.0 55.8 54.6 53.7 384
Cement 64.7 64.5 63.6 63.5 65.5 61.5 56.2 55.1 54.5 50.4 51.1 51.0 58.4 54.0 364
Automobiles 32.7 32.2 31.7 31.0 30.8 29.1 29.8 29.3 28.3 29.0 30.0 30.7 31.5 31.3 237
Chemicals-Specialty 50.5 50.2 48.5 48.3 45.6 40.6 41.7 42.9 41.6 39.4 41.3 42.4 40.8 41.0 163
Healthcare 65.2 65.0 64.5 65.0 63.5 63.3 62.9 62.4 62.2 63.7 63.8 63.7 64.9 65.3 159
Logistics 32.9 33.3 32.8 32.5 32.7 33.0 32.6 33.3 31.1 30.2 29.5 31.0 30.5 30.6 41
Technology 34.6 36.1 37.0 35.8 35.8 35.5 35.2 34.5 33.1 33.6 34.4 34.5 33.8 33.9 30
Real Estate 53.9 59.0 47.1 53.1 44.9 46.9 51.4 41.6 46.0 54.7 52.0 46.1 51.1 53.3 -141
Retail 20.1 28.2 28.9 27.9 33.8 34.5 35.6 35.8 35.6 35.2 34.0 33.7 33.4 33.0 -221
Infrastructure 39.5 43.6 40.5 35.2 35.3 40.8 41.4 36.0 40.7 71.4 39.1 36.6 36.7 40.2 -3,121
Source: 175 companies that form part of the MOFSL Universe, excluding Financials, Telecom, Media, and Staffing
Exhibit 22: Several sectors recovered YoY in terms of operating margin
Sep-22 Jun-23 Sep-23
47.2
47.1
44.5
29.6
27.9
26.8
25.1
24.5
22.9
22.6
22.5
22.5
22.0
21.9
21.9
17.5
17.3
17.1
16.5
16.0
15.6
15.5
15.5
15.0
13.5
13.4
13.2
13.0
11.9
11.9
10.8
10.0
7.7
Auto Cement Chemicals- Consumer Healthcare Metals Oil & Gas Real Estate Retail Technology Telecom
Spec
November 2023 7
Exhibit 23: Financials’ contribution climbed in 2Q; it Exhibit 24: Auto sector’s contribution to the overall profit
accounted for ~1/3rd of the overall profit pool pool climbed in 2QFY24
Financials PAT (INR b) Automobiles PAT (INR b)
Contribution to MOFSL universe profits (%) Contribution to MOFSL universe profits (%)
37.9 37.4 7.8 8.2
33.8 32.9 34.1 7.3 7.2
31.0 5.7
26.8 26.9 4.2
23.0 3.1
1.7
0.8
426 506 558 505 641 716 808 814 852 31 59 86 13 97 140 185 179 205
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Exhibit 25: IT sector’s contribution to the overall profit pool Exhibit 26: Consumer sector’s contribution continued to be
continued to be soft range bound over the past few quarters
Technology PAT (INR b) Consumer PAT (INR b)
7.4 7.2
14.9 15.6 14.9 6.9
13.6 5.9 6.3 5.9
13.3 12.7 5.5 5.5 5.7
12.0 11.0 11.1
247 256 263 242 264 284 286 271 277 109 118 115 121 122 131 132 145 144
Sep-21
Dec-21
Sep-22
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Sep-21
Dec-21
Mar-22
Jun-22
Dec-22
Mar-23
Jun-23
Sep-23
Exhibit 27: Metals’ PAT contribution to the MOFSL Universe

declined in 2QFY24… Exhibit 28: …and the same for O&G also decreased by 0.5pp
Metals PAT (INR b) Oil & Gas PAT (INR b)
22.5 25.5 25.0
20.0 20.5
18.7 20.8 22.2 21.7 22.1
16.3 17.6
15.0
9.6
8.2 6.9 8.1 7.7
416 353 414 334 138 132 229 201 193 385 418 449 244 276 337 528 630 624
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
November 2023 8
Performance highlights for Nifty constituents in 2QFY24

Top five stocks account for ~68% of the incremental profit YoY
 Sales/EBITDA/PBT/PAT growth for Nifty constituents was marginally better than
our estimates at +5%/+21%/+27%/+28% YoY in 2QFY24.
 Among Nifty constituents, 42% exceeded our PAT estimates while 12% missed.
 Excluding Financials, profit for Nifty constituents rose 29% YoY (est. +21%).
 HDFC Bank, Tata Motors, JSW Steel, ICICI Bank, Maruti Suzuki, Mahindra &
Mahindra, State Bank, Coal India, Ultratech Cement, Eicher Motors, Hero
Motocorp, Cipla, Bajaj Auto, Dr. Reddy’s Labs, Titan Company, Tech Mahindra,
Tata Steel, and Grasim Industries delivered higher-than-estimated earnings.
Conversely, SBI Life Insurance, Wipro, Divis Labs, and UPL missed our profit
estimates.
 Nine Nifty companies posted an upgrade of over 5% in their FY24 EPS estimates;
while, five companies witnessed a downgrade of over 5%.
Exhibit 29: Nifty sales up 5% YoY (est. 6%) in 2QFY24 Exhibit 30: Nifty EBITDA up 21% YoY (est. 18%) in 2QFY24
47 40
38
28 27 29 27
23 22 24 22 22 21
17 18 17 17 15
12 8 13 14 15 15 13 13
5 10 7 10 10
0 1 2 5 6 6
-4 -4 -2
-10
-26
June-19
June-20
Sep-18
Dec-18
Sep- 20
June-21
Mar-19
Sep-19
Dec-19
Mar-20
Dec-20
Mar-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
June-19
June-20
Sep-18
Dec-18
Sep- 20
June-21
Mar-19
Sep-19
Dec-19
Mar-20
Dec-20
Mar-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Exhibit 32: Nifty EBITDA margin (ex-Financials) expanded

Exhibit 31: Nifty PAT up 28% YoY (est. 21%) 320bp YoY to 20%
107
22.0
21.3
21.1
84
21.0
20.6
20.4
20.4
20.0
19.9
19.9
19.2
18.9
18.7
18.7
18.7
18.6
18.6
18.3
18.3
17.9
16.8
39
20 26 22 22 32 28
13 18 19 12 11 9 10 16
4 9
-23 -32
June-19
June-20
Sep-18
Dec-18
Sep- 20
June-21
Mar-19
Sep-19
Dec-19
Mar-20
Dec-20
Mar-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
June-19
June-20
June-21
Sep-18
Dec-18
Mar-19
Sep-19
Dec-19
Sep- 20
Mar-20
Dec-20
Mar-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
November 2023 9
Exhibit 33: BFSI, Auto, and O&G to drive earnings for the Nifty in FY24E
PAT (INR b) Growth YoY (%)
Sector
FY20 FY21 FY22 FY23 FY24E FY25E FY20 FY21 FY22 FY23 FY24E FY25E
Automobiles 103 179 76 287 574 602 -53 74 -57 275 100 5
BFSI 799 1,009 1,395 1,971 2,518 2,990 55 26 38 41 28 19
Capital Goods 88 68 84 104 132 163 2 -23 24 24 27 24
Cement 100 100 130 115 137 155 46 0 31 -11 19 13
Consumer 289 292 319 384 437 492 20 1 9 20 14 13
Healthcare 93 129 172 181 208 242 10 38 33 6 15 16
Infrastructure 50 45 59 76 85 94 14 -10 30 28 12 11
Metals 70 217 753 223 295 442 -70 212 247 -70 33 50
Oil & Gas 649 776 1,107 1,076 1,524 1,442 -22 20 43 -3 42 -5
Retail 15 10 23 33 41 53 9 -35 138 40 25 30
Technology 781 836 958 1,022 1,071 1,229 4 7 15 7 5 15
Telecom -41 -7 35 76 114 172 Loss Loss LP 115 50 50
Utilities 411 404 479 605 606 640 6 -2 19 26 0 5
Others 36 46 56 72 65 73 11 26 23 27 -9 11
Nifty 3,444 4,103 5,648 6,224 7,809 8,789 -1 19 38 10 25 13
Exhibit 34: Sectoral upgrades/downgrades for the MOFSL Universe

PAT (INR b) - preview PAT (INR b) - review Upgrade/downgrade (%) Growth YoY (%)
Sector FY24E FY25E FY24E FY25E FY24E FY25E FY23 FY24E FY25E
Automobiles 782 865 814 889 4.1 2.7 127 87 9
Cement 224 267 228 266 1.8 -0.3 -21 29 17
Chemicals-Specialty 35 44 32 42 -8.2 -4.5 12 -16 30
Consumer 595 682 588 672 -1.3 -1.5 17 16 14
Financials 3,584 4,282 3,624 4,343 1.1 1.4 46 31 20
Banks-Private 1,696 2,031 1,719 2,069 1.4 1.9 40 29 20
Banks-PSU 1,286 1,523 1,296 1,532 0.8 0.6 58 34 18
Insurance 84 99 83 99 -1.1 0.0 64 24 20
NBFC - Lending 475 579 479 587 0.8 1.5 42 32 23
NBFC - Non Lending 42 50 46 55 8.8 10.1 2 39 20
Healthcare 408 483 415 490 1.8 1.4 -4 25 18
Infrastructure 22 24 21 24 -4.7 -2.8 34 4 15
Logistics 23 31 23 31 1.2 0.0 6 5 33
Media 29 36 30 35 0.6 -3.3 -11 43 17
Metals 790 1,050 826 1,083 4.5 3.1 -46 -1 31
Oil & Gas 2,359 2,002 2,387 1,974 1.2 -1.4 -20 75 -17
Excl. OMCs 1,592 1,659 1,545 1,612 -2.9 -2.9 3 19 4
Real Estate 96 133 99 139 2.8 4.8 49 24 41
Retail 103 142 101 141 -2.0 -0.6 57 15 39
Staffing 8 12 8 13 5.5 5.7 -5 34 52
Technology 1,150 1,345 1,134 1,307 -1.4 -2.8 7 5 15
Telecom -87 32 -121 9 Loss -70.7 Loss Loss LP
Others 258 323 260 313 0.6 -3.0 187 74 21
MOFSL Universe 10,379 11,753 10,469 11,770 0.9 0.1 4 35 12
November 2023 10
Exhibit 35: Nifty delivered 28% YoY profit growth in 2QFY24

Sales EBITDA PBT PAT
Chg. Chg. Chg. Chg. Chg. Chg. Chg. Chg.
Sep Var. Sep Var. Sep Var. Sep Var.
YoY QoQ YoY QoQ YoY QoQ YoY QoQ
2023 (%) 2023 (%) 2023 (%) 2023 (%)
Company (%) (%) (%) (%) (%) (%) (%) (%)
High PAT growth
Tata Motors 1,051 32 3 1 137 121 1 5 61 LP 15 56 39 LP 4 34
BPCL 1,030 -10 -9 -16 130 544 -18 -7 113 LP -19 -4 85 LP -19 -4
JSW Steel 446 7 6 5 79 350 12 20 40 LP 14 41 31 LP 31 43
Maruti Suzuki 371 24 15 -2 48 73 60 15 48 83 50 19 37 80 50 20
Ultratech Cement 160 15 -10 3 26 37 -16 6 17 53 -25 3 13 70 -24 6
Eicher Motors 41 17 3 1 11 32 6 4 12 44 8 10 10 55 11 11
Asian Paints 85 0 -8 -7 17 40 -19 -5 16 51 -22 0 12 53 -22 3
HDFC Bank 274 30 16 -3 227 30 21 0 198 40 24 0 160 51 34 8
Mahindra & Mahindra 243 16 1 -2 31 23 -5 -4 44 48 31 19 35 48 24 23
Hero Motocorp 94 4 8 2 13 28 10 5 14 45 11 12 11 47 11 13
Larsen & Toubro 510 19 7 3 56 15 16 6 50 27 15 16 32 45 29 18
Bharti Airtel 370 7 -1 -4 195 11 0 -3 55 29 5 4 30 44 2 -1
Tata Consumer 37 11 0 0 5 24 -1 0 5 36 2 9 3 43 9 2
Cipla 67 15 6 4 17 25 16 11 16 41 19 17 12 38 18 18
ICICI Bank 183 24 0 0 142 22 1 1 136 36 6 6 103 36 6 6
Bajaj Finance 72 30 7 0 58 30 5 -1 48 27 5 -3 36 28 3 -3
Reliance Inds. 2,319 1 12 3 410 31 8 8 265 30 9 7 174 27 9 5
Bajaj Finserv 260 25 12 9 260 25 12 9 53 24 3 -2 19 24 -1 -8
Kotak Mahindra Bank 63 23 1 0 46 29 -7 6 42 24 -7 4 32 24 -8 4
IndusInd Bank 51 18 4 0 39 10 2 -2 29 22 3 -2 22 22 4 -2
Nestle 50 9 8 -3 12 22 16 2 11 24 19 5 8 21 15 1
Bajaj Auto 108 6 5 1 21 21 9 4 24 19 9 4 18 20 10 5
Britannia 44 1 11 -5 9 23 27 6 8 21 29 5 6 20 30 4
Med/Low PAT growth
NTPC 409 0 4 -7 105 11 -7 -6 53 22 -15 -4 39 17 -4 -11
Adani Ports 66 28 6 11 39 19 3 3 25 13 1 -4 22 17 8 8
Dr Reddy’ s Labs 69 9 2 3 20 11 -2 10 17 4 -4 12 13 16 -3 14
HDFC Life Ins. 149 12 28 -2 8 4 31 -3 3 1 -21 -13 4 15 -9 1
Apollo Hospitals 48 14 10 6 6 11 23 13 4 10 42 14 2 14 39 4
Coal India 328 10 -9 3 89 11 -20 54 88 12 -18 71 68 13 -15 78
Hind. Unilever 153 4 1 -1 37 9 5 0 36 13 7 3 27 12 7 2
ITC 166 3 5 -1 60 3 -3 -4 65 10 0 1 49 10 0 1
Axis Bank 123 19 3 3 86 12 -2 -1 78 9 0 -1 59 10 1 -1
HCL Technologies 267 8 1 -2 59 9 9 2 51 12 9 1 38 10 8 -1
Titan Company 125 37 5 17 14 13 25 13 13 10 25 12 9 10 21 8
TCS 597 8 1 -1 157 8 5 0 153 9 2 -2 114 9 2 -2
State Bank 395 12 2 3 194 -8 -23 -10 193 7 -15 7 143 8 -15 7
Power Grid Corp 103 -2 4 -9 90 2 4 -6 44 9 6 0 38 5 8 6
Infosys 390 7 3 1 101 3 4 12 88 4 5 4 62 3 4 0
SBI Life Insurance 202 21 49 -3 15 20 71 2 4 0 -1 -9 4 1 0 -10
Negative PAT Growth
Wipro 225 0 -1 -1 42 2 -3 -5 35 3 -8 -8 26 0 -8 -8
Hindalco 542 -4 2 13 56 5 -2 3 32 3 -4 4 22 -2 -12 -5
LTIMindtree 89 8 2 0 16 0 0 3 15 -3 -1 0 12 -2 1 1
Sun Pharma 120 11 2 0 30 -1 -5 0 28 6 1 6 24 -3 5 2
ONGC 352 -8 4 -2 184 -2 -6 -6 135 -18 1 0 102 -20 2 2
Grasim Inds 64 -4 3 -2 6 -38 -12 -9 10 -30 141 4 8 -23 124 22
Divis Labs 19 3 7 -1 5 -20 -1 -12 5 -18 -3 -12 4 -24 -1 -17
Tech Mahindra 129 -2 -2 -2 14 -29 -12 -11 11 -35 -10 -8 10 -25 2 8
Adani Enterp. 225 -41 -11 0 23 25 -7 0 8 18 -27 0 3 -41 -60 0
Tata Steel 557 -7 -6 -1 43 -30 -18 1 1 -98 -97 -93 7 -54 13 18
UPL 102 -19 13 -4 16 -43 -1 -22 -1 PL PL PL 1 -90 -73 -72
Nifty Universe 13,943 5 3 0 3,507 21 0 2 2,499 27 1 5 1,836 28 3 6
Nifty Ex OMCs 12,913 7 5 1 3,377 17 1 2 2,386 21 2 5 1,751 22 4 6
Note: PL: Profit to loss; LP: Loss to profit
November 2023 11
Raise our FY24E Nifty EPS by 1.1%

 We raise our FY24E Nifty EPS by 1.1% to INR996 (earlier: INR986) due to the
notable earnings upgrades in Coal India, HDFC Bank, Maruti Suzuki, BPCL, and ICICI
Bank. We now expect the Nifty EPS to grow ~24%/14% YoY in FY24/FY25.
 The top earnings upgrades in FY24E: Coal India (18.1%), Tata Steel (13.7%),
Maruti Suzuki (10.2%), Titan Company (8.3%), and JSW Steel (8.2%).
 The top earnings downgrades in FY24E: Apollo Hospitals (-12 .7%), UPL (-
11%), ONGC (-9%), Bharti Airtel (-8.2%), and Wipro (-8.2%).
Exhibit 36: FY24E EPS revision – Nine Nifty constituents saw upgrades of over 5%, while 5 witnessed downgrades of over 5%
Company Current EPS (INR) EPS Upgrade / Downgrade (%) EPS Growth (%)
FY23 FY24E FY25E FY24E FY25E FY23 FY24E FY25E
Coal India 45.7 41.1 41.1 18.1 14.3 62.3 -10.1 0.2
Tata Steel 7.1 5.9 11.8 13.7 2.2 -78.5 -16.0 98.7
Maruti Suzuki 271.8 450.8 470.7 10.2 5.6 111.7 65.9 4.4
Titan Company 36.8 46.1 59.9 8.3 14.6 40.2 25.4 30.0
JSW Steel 14.7 49.6 77.2 8.2 3.1 -83.4 237.5 55.6
Cipla 37.8 47.4 53.4 7.0 4.4 6.8 25.7 12.5
Hero MotoCorp 145.6 201.0 213.2 6.9 4.8 17.7 38.0 6.1
Tata Motors 2.2 44.4 44.5 6.1 3.5 LP 1963.5 0.2
Mahindra & Mahindra 64.9 90.7 95.6 5.3 1.7 51.6 39.8 5.4
Dr Reddy’ s Labs 244.7 296.7 308.8 4.9 3.9 39.2 21.2 4.1
BPCL 9.4 119.7 47.1 4.6 6.4 -81.9 1170.3 -60.6
Eicher Motors 106.5 148.6 168.7 3.9 3.9 73.7 39.5 13.5
Kotak Mahindra Bank 75.9 91.6 104.9 3.5 4.8 28.6 20.7 14.5
ICICI Bank 45.8 57.0 65.5 2.8 3.8 36.0 24.6 14.9
HDFC Bank 79.3 83.5 101.5 2.3 2.1 18.6 5.3 21.5
Hindalco 45.3 46.3 50.2 2.0 3.4 -26.2 2.2 8.4
LTIMindtree 151.8 165.2 205.8 1.9 2.1 13.7 8.9 24.5
Infosys 57.6 61.1 69.2 1.4 -1.3 9.8 6.2 13.1
Grasim Industries 98.4 95.8 98.6 1.2 1.1 -11.8 -2.6 2.9
Bajaj Auto 214.2 276.1 309.0 1.1 0.4 16.7 28.9 11.9
Reliance Inds. 98.6 103.1 118.8 0.4 -1.5 14.2 4.6 15.2
HDFC Life Insur. 6.3 7.7 9.0 0.0 0.0 10.7 22.1 17.3
Nestle 247.9 298.3 367.7 0.0 1.9 3.1 20.3 23.3
Tata Consumer 11.7 14.6 19.4 -0.1 1.8 10.3 25.1 32.9
Britannia 80.3 88.6 103.8 -0.1 -0.2 27.6 10.3 17.2
SBI Life Insurance 17.2 20.1 23.2 -0.2 -0.2 14.2 16.6 15.5
Ultratech Cement 175.4 256.4 311.5 -0.2 0.7 -10.6 46.2 21.5
ITC 15.1 16.6 19.0 -0.5 -1.2 23.5 10.0 14.7
IndusInd Bank 96.0 118.3 146.8 -0.5 -3.5 54.7 23.2 24.1
TCS 115.3 126.9 145.1 -0.7 -1.8 10.9 10.1 14.3
State Bank 62.4 78.1 89.5 -0.9 0.1 57.3 25.3 14.5
HCL Technologies 54.8 58.1 65.9 -1.6 -3.0 10.0 6.0 13.5
Axis Bank 71.4 79.3 95.9 -1.7 2.1 68.0 11.2 20.8
Tech Mahindra 57.3 44.1 54.7 -1.8 -9.8 -8.6 -23.0 24.1
Bajaj Finance 190.4 240.1 309.8 -2.2 -1.2 63.4 26.1 29.0
Sun Pharma 35.8 39.4 46.6 -2.4 -1.1 14.4 10.3 18.2
Asian Paints 44.2 54.5 61.6 -3.1 -0.6 32.6 23.2 13.0
Divis Labs 64.9 63.0 83.7 -4.9 -3.2 -41.2 -2.9 33.0
Hind. Unilever 42.7 44.8 50.3 -4.9 -5.3 13.2 5.1 12.1
Wipro 20.7 19.6 23.1 -8.2 -5.0 -5.5 -5.5 18.2
Bharti Airtel 13.6 20.5 30.7 -8.2 -9.0 115.5 50.4 50.1
ONGC 30.4 44.9 42.1 -9.0 -7.5 -5.8 47.7 -6.2
UPL 58.5 49.9 59.5 -11.0 -8.6 -7.8 -14.7 19.2
Apollo Hospitals 48.2 63.7 90.8 -12.7 -16.5 -29.3 32.2 42.6
Nifty (50) 806 996 1,140 1.1 0.7 10.9 23.6 14.4
November 2023 12
Exhibit 37: We estimate a 20% CAGR for Nifty free-float PAT over FY23–25
Sales (INR b) Sales EBIDTA Margin (%) EBITDA PAT (INR b) PAT Contbn to
Company CAGR % CAGR % CAGR %
FY23 FY24E FY25E FY23 FY24E FY25E FY23 FY24E FY25E Delta %
23-25 23-25 23-25
High PAT Growth (20%+) 24,081 26,652 29,286 10 21 24 25 21 2,318 3,506 4,026 32 67
Tata Motors 3,460 4,311 4,588 15 9 14 14 41 8 170 164 346 6
JSW Steel 1,660 1,799 1,997 10 11 17 21 50 36 120 187 129 6
BPCL 4,732 4,244 4,319 -4 2 9 4 35 20 251 99 124 3
Bharti Airtel 1,391 1,516 1,650 9 51 53 53 11 76 114 172 50 4
Apollo Hospitals 166 185 211 13 12 13 13 14 7 9 13 37 0
Maruti Suzuki 1,176 1,452 1,587 16 9 12 12 32 82 136 148 34 3
Ultratech Cement 632 712 761 10 17 19 20 21 51 74 90 33 2
HDFC Bank 868 1,137 1,368 25 81 82 84 28 441 629 764 32 13
Tata Steel 2,434 2,436 2,639 4 13 10 14 7 86 73 144 29 2
Bajaj Finance 230 298 384 29 81 81 81 29 115 148 191 29 3
Tata Consumer 138 154 167 10 13 14 15 18 11 14 18 28 0
Bajaj Finserv 280 325 393 19 72 78 74 20 64 86 105 28 2
Titan Company 406 503 588 20 12 12 13 26 33 41 53 28 1
Eicher Motors 142 163 186 14 24 27 27 22 29 41 46 26 1
Larsen & Toubro 1,833 2,093 2,425 15 11 12 12 18 104 132 163 25 2
IndusInd Bank 176 208 249 19 82 78 80 17 74 92 114 24 2
Nestle 169 246 229 16 22 23 24 21 24 38 35 22 0
Mahindra & Mahindra 850 1,022 1,122 15 12 13 13 19 78 109 115 21 1
Hero MotoCorp 338 374 407 10 12 14 14 20 29 40 43 21 1
Bajaj Auto 364 452 511 18 18 19 20 23 61 78 87 20 1
State Bank 1,448 1,597 1,821 12 58 58 59 13 556 697 799 20 9
ICICI Bank 621 741 856 17 79 77 78 17 319 398 457 20 5
HDFC Life Insur. 568 682 826 21 6 6 6 18 14 17 19 20 0
Medium PAT Growth (0-20%) 32,498 33,183 36,591 6 20 22 22 11 3,574 4,011 4,462 12 35
Cipla 228 257 281 11 22 23 24 14 30 38 43 19 0
Axis Bank 429 505 598 18 75 74 78 20 219 250 308 19 3
Asian Paints 345 376 420 10 18 20 21 19 42 52 59 18 1
ONGC 6,848 6,376 6,872 0 13 17 16 12 390 576 540 18 6
Kotak Mahindra Bank 216 257 293 17 69 75 75 22 151 182 208 18 2
LTIMindtree 332 363 417 12 19 19 20 16 45 49 61 16 1
SBI Life Insurance 666 798 958 20 8 7 7 19 17 20 23 16 0
NTPC 1,762 1,795 1,913 4 27 28 29 8 169 195 222 14 2
Sun Pharma 432 485 544 12 26 26 27 16 86 95 112 14 1
Britannia 163 174 194 9 17 18 18 12 19 21 25 14 0
Divis Labs 78 80 94 10 30 28 31 10 17 17 22 14 0
ITC 660 683 759 7 36 38 39 11 187 206 237 13 2
Dr Reddy’ s Labs 241 272 299 11 26 28 27 14 41 49 51 12 0
TCS 2,255 2,408 2,682 9 27 27 27 11 423 466 532 12 4
Adani Ports 209 266 299 20 62 59 59 17 76 85 94 12 1
Reliance Inds. 8,795 9,502 10,758 11 16 17 17 12 667 698 804 10 5
HCL Technologies 1,015 1,094 1,201 9 22 22 22 9 148 157 179 10 1
Infosys 1,468 1,547 1,686 7 24 25 25 8 241 253 286 9 2
Hind. Unilever 591 624 690 8 23 24 24 10 100 105 118 9 1
Hindalco 2,232 2,116 2,264 1 10 11 11 3 101 103 111 5 0
Wipro 905 894 962 3 19 18 19 4 114 106 122 4 0
Power Grid Corp. 456 479 496 4 86 86 85 4 154 159 165 3 0
UPL 536 516 559 2 21 20 21 1 45 38 45 1 0
Grasim Industries 268 257 291 4 12 10 10 -3 65 63 65 0 0
Adani Enterprises 1,370 1,059 1,059 -12 6 9 9 7 27 27 27 0 0
PAT de-growth (<0%) 1,915 1,909 2,044 3 23 21 21 -3 332 292 302 -5 -1
Tech Mahindra 533 519 559 2 15 12 14 -1 51 39 49 -2 0
Coal India 1,383 1,391 1,485 4 27 24 23 -3 282 253 254 -5 -1
Nifty (PAT free float) 58,494 61,744 67,921 8 20 23 23 15 3,509 4,394 5,029 20 100
November 2023 13
FY24E earnings highlights: O&G, Banks and Auto drive

incremental earnings
 The MOFSL Universe is likely to deliver sales/EBITDA/ PAT growth of 7%/23%/35%
YoY in FY24. The Auto, O&G, and Banks (Private/PSU) sectors are projected to be
the key growth drivers with 87%, 75% and 31% YoY earnings growth, respectively.
They are likely to contribute 77% to earnings growth.
 O&G, led by OMCs, to add 37% to the incremental profits, followed by Private
Banks (14%), Auto (14%), and PSU Banks (12%).
Exhibit 38: O&G, Banks and Auto led the incremental profits for FY24E (PAT, INR b)
117 110 83 83 58 55 52 19 16 14 13 9 2 1 1
382 379 331
1023 -6 -7
10,469
10,476
7,735
FY23 PAT (INR b)
NBFC - Lending
Real Estate
Oil & Gas
Banks-PVT
Insurance
Retail
Auto
Healthcare
Consumer
Staffing
Infra
FY24E PAT (INR b)

Technology
Cement
Logistics
Chemicals-Spec.
NBFC - Non Lending
Banks-PSU
Others
Telecom
Media
Metals
Exhibit 39: Delta contribution to FY24E profit for MOFSL Universe (%)
37
Delta Contribution (%)
14 14 12
4 4 3 3 2 2 2 1 1 0 0 0 0 0 0
0 0
NBFC - Lending
Real Estate
Oil & Gas
Banks-PVT
Insurance
Retail
Auto
Healthcare
Consumer
Staffing
Infra
Technology
Cement
Logistics
Chemicals-Spec.
NBFC - Non Lending
Banks-PSU
Others
Telecom
Media
Metals
November 2023 14
Twelve-month earnings revision stable for MOFSL Universe for

FY24
BFSI, Auto, and Consumer witness upgrades
 Over the last one year, earnings revision for MOFSL Universe remained flattish.
 PSU Banks, Autos, NBFCs-Lending, Private Banks, and Oil & Gas saw major
earnings upgrades of 20%/19%/13%/11%/10%, while Metals witnessed the
maximum earnings downgrade of 34%.
 For MOFSL Telecom Universe, we estimated a loss of INR54b a year back; the
same stood at INR121b now for FY24E.
Exhibit 40: Banks saw major earnings upgrades, while Metals saw earnings downgrades over the last one year
20 19 % revision in PAT
15 13 11 10
1 1
-1 -4 -7 -7
-14 -19 -22 -25 -29 -30 -33 -34
Real Estate
Banks-PVT
Auto
NBFC - Non Lend.
NBFC-Lending
Oil & Gas
MOFSL Univ.
Insurance
Infra
Retail
Staffing
Chemicals-Spec.
Consumer
Healthcare
Technology
Media
Logistics
Cement
Banks-PSU
Metals
Note: Comparable MOFSL Universe of 217 companies
Exhibit 41: Annual Sales/EBITDA/PAT estimates for MOFSL Universe

Sales (INR b) Gr. YoY (%) EBIDTA (INR b) Gr. YoY (%) PAT (INR b) Gr. YoY (%)
Sector FY23 FY24E FY25E FY23 FY24E FY25E FY23 FY24E FY25E FY23 FY24E FY25E FY23 FY24E FY25E FY23 FY24E FY25E
Automobiles 9,497 11,421 12,416 27 20 9 1,013 1,552 1,720 34 53 11 435 814 889 127 87 9
Cement 2,010 2,124 2,304 25 6 8 281 356 428 -13 27 20 176 228 266 -21 29 17
Chemicals-Specialty 293 269 313 20 -8 16 56 48 62 12 -13 29 38 32 42 12 -16 30
Consumer 3,050 3,343 3,687 16 10 10 701 816 924 16 16 13 505 588 672 17 16 14
Financials 8,995 10,596 12,391 20 18 17 4,930 5,815 6,922 17 18 19 2,766 3,624 4,343 46 31 20
Banks-Private 2,783 3,412 4,064 25 23 19 2,091 2,559 3,122 17 22 22 1,337 1,719 2,069 40 29 20
Banks-PSU 3,051 3,404 3,810 21 12 12 2,016 2,246 2,551 14 11 14 966 1,296 1,532 58 34 18
Insurance 2,208 2,590 3,075 15 17 19 128 138 179 91 8 29 67 83 99 64 24 20
NBFC - Lending 858 1,065 1,295 20 24 22 646 807 990 18 25 23 363 479 587 42 32 23
NBFC - Non Lending 96 125 146 12 31 17 49 64 81 11 29 27 33 46 55 2 39 20
Healthcare 2,702 3,070 3,415 10 14 11 562 686 792 3 22 15 332 415 490 -4 25 18
Infrastructure 183 194 221 8 6 14 53 54 61 11 3 12 20 21 24 34 4 15
Logistics 261 288 342 15 10 19 38 40 51 5 7 26 22 23 31 6 5 33
Media 155 198 221 19 27 12 38 50 58 0 32 16 21 30 35 -11 43 17
Metals 11,412 11,327 12,288 8 -1 8 1,820 1,754 2,144 -31 -4 22 833 826 1,083 -46 -1 31
Oil & Gas 37,084 37,456 41,257 34 1 10 2,993 4,516 4,048 -4 51 -10 1,364 2,387 1,974 -20 75 -17
Excl. OMCs 19,528 19,413 21,399 31 -1 10 2,664 3,142 3,306 14 18 5 1,297 1,545 1,612 3 19 4
Real Estate 399 473 553 20 18 17 109 142 177 26 31 24 79 99 139 49 24 41
Retail 1,459 1,755 2,129 41 20 21 189 221 288 44 17 30 88 101 141 57 15 39
Staffing 364 418 491 20 15 18 12 15 20 -7 24 35 6 8 13 -5 34 52
Technology 6,997 7,371 8,134 19 5 10 1,584 1,657 1,889 11 5 14 1,076 1,134 1,307 7 5 15
Telecom 2,275 2,448 2,669 14 8 9 1,021 1,155 1,282 10 13 11 -175 -121 9 Loss Loss LP
Others 2,681 2,936 3,358 38 10 14 364 504 569 53 38 13 149 260 313 187 74 21
MOFSL Universe 89,817 95,687 1,06,187 24 7 11 15,764 19,381 21,434 4 23 11 7,735 10,469 11,770 4 35 12
Source: MOFSL
November 2023 15
SECTOR-WISE: Highlights / Surprise / Guidance

AUTOS: Better profitability driven by RM savings and cost efficiency
 Flat volume growth YoY in 2QFY24 despite festive mismatch: Auto volumes in 2QFY24 were flat YoY despite an
inventory buildup for the festive season last year, which fell relatively earlier. The healthy performance was
driven by- i) traction in SUV demand, ii) strong growth in MHCVs, and iii) initial recovery in 2Ws. Consequently,
wholesales for 3W/PV/CV grew ~11%/6%/4% YoY, but declined by 4%/3%/1% YoY for tractors/2Ws/LCVs. MHCV
volume grew ~15% YoY. In 2W, exports/domestic volume declined 6%/2% YoY. Total revenue for our Auto
Universe (ex-JLR) grew 15% YoY, led by volume growth and price hikes. EBITDA grew 42% YoY primarily due to
moderating commodity cost inflation, operating leverage and Fx benefits. Adj. PAT for the quarter grew 59%
YoY. We expect 2HFY24 to be better than 1H, led by i) growth in festive volumes, ii) stable macro outlook,
especially benefitting MHCV demand, ii) execution of order backlog in PVs, and iii) sustained recovery in 2W
demand followed by ramp-up in exports.
 Gross margin improved for fifth consecutive quarter, fully reflects the benefits of softening RM: Gross margin
improved ~420bp YoY/220bp QoQ to 28.7% for Auto OEMs (ex- TTMT), which now fully reflects the benefits of
moderating RM costs. Most of the companies indicated a slight increase in RM costs and emphasized that it would
not have a significant impact on the cost. This was further supported by improving efficiencies and Fx benefits,
resulting in EBITDA margin expansion of 240bp YoY/90bp QoQ to 12.3%. We believe full benefits of low RM costs
reflected in 2QFY24 as initial trends in 3QFY24 indicate a slight increase in metal prices. However, we believe
this should partially be offset by operating leverage and further cost control. For companies with global
operations (especially in EU), inflationary pressure continues to ease with a softening in commodity prices as
well as energy costs, while benefits of volume recovery will be seen in the coming quarters.
 Exports – Headwinds continue: As per the management commentaries, exports in 2QFY24 remained under
pressure. Most of the companies indicated a gradual recovery in 2Q. Despite challenges related to the
macroeconomic situation, demand is expected to improve, though at a gradual pace in 2HFY24, benefitting
overall utilization and profitability thereafter. Demand in European markets is still volatile, impacting key
ancillary players such as MOTHERSO, ENDU, APTY, BIL and CIEINDIA. However, a recovery in exports would
largely be driven by better availability of Fx in some geographies and easing of supply-side issues, which are
largely showing signs of smoothening.
 Mixed leverage trend in 2Q: Healthy revenue growth and better profitability led to a sequential decline in net
debt for TTMT (declined INR30b to INR387b), CEAT (declined INR1b to INR18.9b) and BIL (declined INR0.7b to
INR5.5b). However, the quarter also witnessed an increase in debt for few companies such as MOTHERSO (to
INR134.2b vs. INR83.1b in 1QFY24) on account of the payout impact of the acquisition (~INR38b), higher capex
to support emerging markets and dividend payout.
 The quarter witnessed more upgrades than downgrades: The quarter saw upgrades for FY24E largely to factor
in the benefits of better gross margin and cost efficiencies, thus aiding overall profitability. There were upgrades
for FY24E EPS for HMCL (+7%), MSIL (+10%), MM (+5%), TTMT (+6%), EXID (+5%), and CEAT (+7%). Notable
downgrades for the quarter included BOS (-5%), ENDU (-8%), BHFC (-8%), and MSUMI (-6%).
 Valuation and view: We prefer 2Ws within the sector followed by CVs. We are already witnessing a demand
reversal, especially in the 2W segment, which we believe has better growth potential compared to other
segments over FY23-25E. On the other hand, we turn cautious on the PV growth outlook due to a slowdown in
demand and a high base. TTMT and HMCL are our top OEM picks. Among auto component stocks, we prefer
ENDU and CRAFTSMA.
 Surprises: CEAT, BJAUT, BIL, SONACOMS, MSIL, TIINDIA, HMCL, TTMT, EXID, APTY, MM, EIM
 Misses: CIEINDIA, CRAFTSMA, MSUMI, ENDU, BOS, MOTHERSO
November 2023 16
Guidance highlights:
 MSIL: The industry has seen 20% YoY growth during the festive season so far. The management expects ~18%
YoY industry growth throughout the festival season, with MSIL growing in line with the industry. The order book
at 2Q end stood at 288k units (~355k units in 1QFY24), which has further declined to 250k units now, as supply-
side issues are largely normalized.
 MM: Automotive- SUV demand momentum is strong for higher-end products (priced over INR1.3m). Bookings
have been consistent and open bookings are at 286k units, including ~70k/76k/119k for XUV700/Thar/Scorpio-
N. Tractors- Expects flat volumes YoY in FY24. Monsoon spread in the southern regions and Maharashtra was
not healthy, leading to a weakness in demand. Demand in northern states is better off.
 TTMT: JLR- The order book has come off sharply as supplies improved. It aims to bring it down to the pre-Covid
level of ~110k units. The order book remained strong with over 168,000 client orders, with RR, RR Sport and
Defender accounting for 77% of the order book. CV- The management expects double-digit growth in 3Q, while
4Q is expected to be flat or see marginal growth due to a high base of previous year. PV- Domestic industry to
grow in a single digit in FY24 due to a high base of last year. Expects robust volume growth for TTMT in 2H.
 AL: The management retains its FY24 growth guidance of 8-10% YoY for MHCV volumes. While the 2HFY24
growth outlook appears positive, it believes the momentum should continue even in FY25. LCV volumes are
expected to be healthier in 2HFY24 than in 1HFY24 due to visible green shoots in segments such as e-commerce,
agri, consumer durables, and private consumption.
 BJAUT: Domestic – While the company expects better growth in the festive season, the outlook going forward
will depend on the sustainability of demand after the festive season. Exports- The macro environment, along
with new geopolitical challenges, has remained subdued, but improving FX availability has helped.
 HMCL: Momentum is building up. Following the festive season, demand from the marriage season is anticipated
to fuel growth for HMCL. Over the last 2-3 years, there has been a slight shift in the market mix toward urban
areas. However, the current balance suggests a recovery in rural markets.
 TVSL: Domestic: Ongoing festivals have started on a positive note, and TVSL believes that growth should sustain
for the coming period as well. Rural should possibly do well, while growth in urban has continued. Exports- :
International markets, including Africa, are settling down and retail is picking up. TVSL does not have much stock
in the market.
 EIM: RE saw 13-14% growth during the festival period. This growth was evenly spread across all regions. Retails
in the export markets are doing well. It expects export wholesales to remain tepid in the near term and should
be normalizing going forward.
 ENDU: Domestic- Rural demand is likely to improve. While 3W has already been growing, premium 2W is also
seeing healthy growth. Europe- The outlook remains weak. Recessionary pressure is hurting order intake. ENDU
is confident of managing the situation over the next two quarters as it focuses on starting new projects.
 BHFC: i) CVs: Positive outlook for the India business, while it is expected to remain flat for the US business next
year, ii) Industrials: the US business is likely to remain flat next year. In India, while the outlook is expected to
remain positive, there are structural challenges for the businesses such as wind energy and some softness in
construction mining.
 APTY: India- The management believes OE and replacement will continue to grow by double digits, wherein the
later would be better in 2HFY24 vs. 1HFY24. Export is also showing signs of improvement. Europe- Demand is
expected to remain sluggish in the near term, and the focus will be on cost control measures.
 BIL: Export markets were affected by heat waves and recessionary pressures. The management feels that the
worst is over for export markets and that it is monitoring new geopolitical tensions. Dispatches to global markets
are marginally lower, with a slow and gradual recovery expected. On the contrary, India business is on a strong
footing thanks to the government’s support for infrastructure and growth in agriculture.
November 2023 17
Exhibit 42: Key operating indicators

Volumes ('000 units) EBITDA margins (%) Adj PAT (INR m)
2Q 2Q YoY 1Q QoQ 2Q 2Q YoY 1Q QoQ 2Q 2Q YoY 1Q QoQ
FY24 FY23 (%) FY24 (%) FY24 FY23 (bp) FY24 (bp) FY24 FY23 (%) FY24 (%)
BJAUT 1,054 1151 -8.4 1,027.4 2.6 19.8 17.2 260 19.0 80 18,361 15,300 20.0 16,648 10.3
HMCL 1,417 1428 -0.8 1,352.6 4.7 14.1 11.4 260 13.8 30 10,538 7,161 47.2 9,452 11.5
TVS Motor 1,074 1027 4.6 953.2 12.7 11.0 10.2 80 10.6 50 5,366 4,075 31.7 4,677 14.7
MSIL 552 517 6.7 498.0 10.9 12.9 9.3 370 9.2 370 37,165 20,615 80.3 24,851 49.6
MM 302 273 10.6 301.1 0.3 12.6 11.9 70 13.4 -80 34,519 23,380 47.6 27,737 24.4
TTMT India CV** 107 100 6.4 88.6 20.5 10.4 5.1 530 9.4 100 15,270 2,920 422.9 9,360 63.1
TTMT India PV** 139 143 -2.7 140.4 -1.0 6.4 5.7 70 5.2 120 2,980 1,670 78.4 1,860 60.2
TTMT (JLR) * 109 90 21.4 106.3 2.7 14.9 10.3 460 16.3 -140 272 -98 -377.6 323 -15.8
TTMT (Cons) 13.1 7.8 530 13.3 -20 38,592 -12,572 -407.0 37,239 3.6
Ashok Leyland 50 45 10.0 41.3 20.6 11.2 6.5 470 10.0 120 5,769 1,939 197.5 5,768 0.0
Eicher (RE) 229 208 10.4 227.7 0.7 27.9 23.7 430 26.0 200 9,385 6,149 52.6 9,139 2.7
Eicher (VECV) 20 18 11.0 19.6 -0.1 7.9 5.9 200 7.8 10 1,850 810 128.4 1,808 2.3
Eicher (Consol) 27.9 23.7 430 26.0 200 10,163 6,569 54.7 9,183 10.7
Agg. (ex JLR) 5,042 4936 2.1 4,708 7.1 12.3 9.9 240 11.4 90 1,33,100 83,628 59.2 1,09,536 21.5
** PBT instead of PAT; JLR in GBP m; Source: MOFSL, Company
Exhibit 43: Aggregate EBITDA margin improves QoQ due to

softening RM, price hikes, Favorable Fx and mix Exhibit 44: RM costs declined on a QoQ basis
Aggregate (excl JLR) Agg RM cost (%, Ex JLR)
75.6
75.5
75.4
75.4
75.1
12.3
74.0
12.0
73.7
11.7
11.7
73.5
11.4
73.2
73.1
11.2
11.0
11.0
71.3
70.0
69.9
69.8
9.9
9.9
9.9
9.2
8.4
8.2
8.1
7.5
59.7
59.6
58.8
-4.3
2QFY20
3QFY20
4QFY20
1QFY21
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
2QFY20
3QFY20
4QFY20
1QFY21
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
Source: MOFSL, Company Source: MOFSL, Company
Exhibit 45: Revised EPS Estimates (INR)

FY24E FY25E
Rev Old Chg (%) Rev Old Chg (%)
BJAUT 276.1 273.1 1.1 309.0 307.8 0.4
HMCL 201.0 188.0 6.9 213.2 203.3 4.8
TVSL 45.1 45.1 0.1 53.0 52.3 1.5
EIM * 148.6 143.0 3.9 168.7 162.4 3.9
MSIL * 450.8 409.0 10.2 470.7 445.8 5.6
MM 90.7 86.1 5.3 95.6 93.9 1.7
TTMT * 44.4 41.8 6.1 44.5 43.0 3.5
AL 9.2 9.3 -1.7 11.5 12.0 -4.5
ESCORTS 90.9 90.9 0.0 106.3 108.3 -1.9
AMRJ 48.7 46.8 4.2 53.7 52.8 1.7
EXID 12.8 12.2 5.4 15.0 15.1 -1.2
BOSCH 562 592 -5.1 687 704.6 -2.4
ENDU 47.5 51.7 -8.2 60.0 62.3 -3.6
MACA 29.0 29.3 -1.0 33.3 34.0 -2.2
BHFC 27.6 29.9 -7.7 38.6 39.8 -2.8
MOTHERSO * 4.3 4.2 2.4 5.0 4.8 2.4
SONACOMS 8.9 8.7 2.1 11.6 11.5 0.1
CEAT 162.9 152.7 6.7 186.7 180.7 3.3
APTY * 28.0 28.5 -1.6 33.3 32.4 2.7
BIL 71.1 68.9 3.2 95.6 94.1 1.6
MRF 5,331.3 5,170.1 3.1 5,258.1 5,076.3 3.6
MSUMI 1.4 1.5 -6.4 1.8 1.8 -3.2
TIINDIA 59.2 58.1 1.8 71.2 70.9 0.4
CRAFTSMA 186.0 182.9 1.7 224.9 227.1 -1.0
* Consolidated
November 2023 18
CEMENT: In-line volume growth and operating performance; EBITDA/t at INR891 (est. INR871)
 Sales volume up 15% YoY; realization was flat: Sales volume for our coverage universe grew 15% YoY, backed
by strong demand from the infrastructure, real-estate, and housing segments. TRCL reported the highest volume
growth of 38% YoY, followed by 24% by JKCE and 14-18% by ACC, UTCEM, BCORP, and JKLC. ACEM, DALBHARA,
ICEM, and SRCM reported volume growth of 5-10%. Blended realization for our coverage universe was flat YoY.
Consequently, revenue grew (excl. GRASIM) 14% YoY.
 Gross margin for our coverage universe grew 5pp YoY, led by reduction in input material cost (average variable
cost/t declined 6% YoY). Freight cost/other expenses/employee cost per tonne has declined 4%/12%/2% YoY.
Aggregate EBITDA for cement companies increased 78% YoY and OPM surged 5.6pp to 15.8%. ACC’s EBITDA
grew 35.6x YoY on a subdued base; while; BCORP/ACEM/TRCL EBITDA grew 3.1x/2.5x/2.2x YoY. DALBHARA/
SRCM/UTCEM/JKCE/JKLC reported EBITDA growth of 33%-66% YoY. ICEM reported EBITDA of INR81m vs.
operating loss of INR912m in 2QFY23. Avg. EBITDA/t stood at INR891 vs. INR573/INR905 in 2QFY23/1QFY24.
 Profits grew 3.2x YoY: Aggregate interest/depreciation expenses for our coverage universe grew 32%/14% YoY
and other income increased 33% YoY. Aggregate profit grew 3.2x YoY at INR32.7b for cement companies. ICEM
reported a net loss of INR814m vs. a loss of INR1.4b in 2QFY23. ACC posted a net profit of INR3.8b vs. a net loss
of INR766m, whereas BCORP reported a net profit of INR586m vs. a net loss of INR565m in 2QFY23. Profit grew
8.8x for TRCL, 4.6x/4.3x for ACEM/DALBHARA, and 2.6x for SRCM. Profits increased 55-70% YoY for JKLC, JKCE,
and UTCEM.
 Changes in our earnings estimates: We have raised our PAT estimates for ACEM and SRCM by 13% (each), while
cut PAT estimates by 13% for TRCL for FY24. We cut EBITDA estimate for ICEM by 27% for FY24. We broadly
maintained our earnings estimates for other coverage companies.
 Top picks: While UTCEM is our top pick in the large-cap space, DALBHARA and JKCE are our preferred picks in
the mid-cap space.
 Surprises: JKLC, JKCE, and TRCL
 Misses: ACC and ICEM
Most managements remained positive about cement demand, led by demand from the government’s infrastructure
projects, real estate, private, and industrial capex and housing demand from tier-II/III/IV cities. Cement prices have
increased across markets in Sep-Oct’23. All-India average cement price increased 4.5% MoM (INR16 per 50kg bag) in
Oct’23. However, sustainability of these price hikes should be monitored. Fuel consumption costs for cement players
declined 7-20% QoQ to INR1.58-INR2.18/Kcal in 2QFY24.
 UTCEM: Cement prices have increased in the past few months. All-India prices are up 7%-8% vs. Jun’23-exit. It
reiterated its long-term capacity target of 200mtpa, which implies ~7% capacity CAGR. Phase II expansion is at
full swing and is likely to be completed by 1HFY26. Post completion of this expansion, its cement capacity will
increase to ~160mtpa vs. 132.65mtpa currently.
 ACEM: Consolidated volume growth of 2% YoY in 2QFY24 was lower than the industry growth. Its volumes in
two key markets (Himachal Pradesh and Central India) were hit by heavy rains. However, in Oct’23, volume
growth was in double-digits. It reiterated its cost reduction target of INR400/t through reduction in energy,
freight, and other costs. Consolidated capex stood at INR14.6b in 1HFY24 and in FY24, it is estimated to be
INR75b.
 SRCM: Cement demand is expected to remain robust in the mid-term and volumes should grow by ~12% in
FY24. Cement realization increased 1% YoY/2% QoQ to INR4,843/t in 2QFY24. Realization is higher by INR200/t
in Oct’23 vs. 2QFY24 average. It expects grinding capacity to increase to 56mtpa/62mtpa by Mar’24/Mar’25
from 49.9mtpa currently. It targets to increase domestic grinding capacity to 80mtpa in the next three years.
 DALBHARA: It lost some market share in North Bihar and West Bengal due to certain pricing decisions that did
not yield the intended results. However, there was a market share gain in the South and Northeast markets. The
company anticipates outpacing industry growth moving forward. Also, it is benefiting from a robust increase in
November 2023 19
cement prices, mainly in the East, where prices have risen by INR40-50/bag. Capex stood at INR6.1b/INR15b in
2Q/1HFY24. The company maintains a capex guidance of INR65b (including INR37b for JPA cement asset
acquisition, pending for approvals from various banks) in FY24E.
 JKLC: It indicated that cement volume growth (consolidated) should be at 12-15% YoY in FY24 (earlier guidance
of 19%). The Eastern region saw the highest YoY growth during the quarter and is likely to continue to grow at
~8-10% YoY. Cement prices have risen in various key markets at different points in time. It expects an average
improvement in realization by INR50-100/t QoQ in 3QFY24. Further, the company announced brownfield
expansion of 1.35mtpa grinding capacity at its GU in Surat, Gujarat.
 JKCE: Demand is estimated to remain strong, with a slight moderation expected in Nov’23, attributed to festivals
and state elections in the company’s two key markets. Notably, cement prices have increased in these key
markets, currently averaging ~3-4% higher than the 2QFY24 average. The company has earmarked
INR14b/INR7b for capex in FY24/FY25E. It is reviewing various options for the next phase of expansion and, upon
obtaining the Boards’ approval, will announce the chosen course of action.
 TRCL: Cement demand has been strong throughout the quarter and is mainly fueled by infrastructure projects by
the government. Sales volume in 2H should remain similar to or better than that of 1HFY24. Cement price hiked
in Oct-23 and currently is sustaining at higher levels. Higher capex was due to the purchase of limestone-bearing
land and the capex in 2HFY24 will be between INR3.0b and INR3.5b.
 BCORP: Demand during 3QFY24 might be adversely impacted for a short period due to state elections in
Madhya Pradesh and Rajasthan. However, its capacity utilization is estimated to be +90% in 2HFY24. The
Mukutban plant achieved a capacity utilization of ~46% in Sep’23, with further improvements in volumes noted
in Oct-23. Additionally, the company has announced the establishment of a greenfield grinding unit with a
capacity of 1.4mtpa in Prayagraj, Uttar Pradesh. This new unit is estimated to be commissioned in 1QFY26 with a
capex of INR4b.
Exhibit 46: Sales volume grew 15% YoY in 2QFY24 Exhibit 47: Blended realization was flat YoY
Aggregate Vol (mt) YoY change (%) Realization (INR/ton) YoY Change (%)
43
5,616
8
7 7
24 18 19 15 6
9 12 12 4 5 4
5,163
6 9
5,093
6 3 3 3
(0) 2 (3) 0 2 2
5,606
(12)
0 0
(29)
-3
4,887
4,930
5,031
5,093
5,378
5,382
5,426
5,444
5,753
5,628
5,666
5,629
-3
53 60 60 42 56 66 75 60 60 64 75 70 66 72 84 84 75
2QFY20
3QFY20
4QFY20
1QFY21
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
3QFY20
4QFY20
1QFY21
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
Source: Company, MOFSL Source: Company, MOFSL
Exhibit 48: EBITDA grew 78% YoY in 2QFY24 Exhibit 49: Average EBITDA/t up 56% YoY in 2QFY24
Aggregate EBITDA (INR b) YoY Change (%) Average EBITDA (INR/t)
78
74.3
43 51
68.6
37 43
58.8
54.8
26
10
4
37.6
-6 0
-25 -20 -18
1,016
1,077
1,328
1,315
1,208
1,239
1,404
1,162
922
912
989
975
573
761
876
905
891
55.8
64.9
74.3
79.9
92.7
84.0
69.7
74.0
75.6
67.1
-7
55.5
-26 -46
2QFY20
3QFY20
4QFY20
1QFY21
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
3QFY20
4QFY20
1QFY21
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
November 2023 20
CHEMICALS – SPECIALTY: Weathering the destocking storm

 Overall performance: Revenue was in line with our estimates (AACL, CLEAN, DN, NFIL missed our estimates,
while ATLP beat our estimates). EBITDA was in line with our estimates too (but DN beat our estimates). PAT was
also in line with our expectations (DN, NOCIL posted a beat, while the rest of our coverage companies missed
our estimates).
 Long-term vision intact despite near-term headwinds: The outlook for FY24 is anticipated to remain subdued
due to ongoing destocking at the customer’s end, compounded by aggressive pricing-driven dumping from
China. Additionally, capacity expansion has experienced delays due to the aforementioned factors; however,
these expansions have not been completely called-off. Hence, we expect the full benefit of the aggressive capex
cycle to be delayed by around one year and accrue from FY25-end. While valuation multiples have corrected in
recent times, they still remain elevated and raise concerns over the perpetual growth rates of these companies.
 Aggregate gross margin for our coverage universe increased 160bp YoY in 2QFY24 (vs. a decline of 80bp YoY in
1QFY24). AACL (down 330bp), ATLP (down 300bp), and NOCIL (down 370bp) witnessed a contraction in gross
margin YoY. Aggregate EBITDA margin dipped 40bp YoY. AACL, FINEORG, and NOCIL reported the highest decline
in EBITDAM YoY, down 320-620bp.
 Ratings and earnings revisions: The quarter saw downgrades in ratings for FINEORG and NOCIL. We have
downgraded FINEORG to sell as we believe that the performance would be a hit in the near to medium term due
to: (1) non-availability of land for further expansion as of now, (2) plants running at optimum utilization with no
further scope of debottlenecking, (3) longer-than-expected time being taken for setting up incremental
capacities and a delay in start-up of the Thailand JV. We downgraded NOCIL to neutral as we expect volume
growth to be tepid at 6% CAGR over FY23-25 amid subdued demand from the international market, mainly in
the latex segment and from the tyre market in the European region.
 Top picks: We have a BUY rating on GALSURF and VO. For GALSURF, we estimate a volume CAGR of 9% over
FY23-25, led by robust volumes in the domestic market and a recovery in the Specialty Care Products volumes
within developed markets. The latter segment has already exhibited early signs of growth. VO has received in-
principle approval for its amalgamation with Veeral Additives (VAL) from the NCLT, and the management
expects the revenue to reflect in VO from the next quarter onwards on a consolidated basis. Although ATBS
performance is expected to remain muted in FY24 amid ongoing destocking, the management expects normal
offtake to resume post Dec’23.
 Surprises: DN
 Misses: AACL, ATLP, CLEAN, FINEORG, GALSURF, NFIL, and VO
 CLEAN: The company announced a capex of INR300m (out of the INR2b) specifically allocated for a pharma
intermediate molecule. This investment will establish a dedicated production line for a single product projected
to yield INR1b in revenue, primarily targeting the Indian market (to come online in the next nine months).
Meanwhile, HALS’ expansion in CFCL is ongoing and is on track to be commissioned by Mar’24 (earlier guidance
of Dec’23). However, it is anticipated to take 2-3 years to achieve its optimal utilization level.
 DN: The management is taking strategic measures to elevate its growth momentum in the long run through
several backward and forward integration projects, which would be commissioned over the next 1-1.5 years.
The company is also making efforts to de-risk its business model by expanding its product portfolio.
 GALSURF: The management is confident of achieving volume growth in the upper band of the guided range of 6-
8%, but remains cautious about any adverse supply-led shocks. It expects that EBITDA/kg would improve going
forward with easing inflation and demand improvement for premium specialties.
 NFIL: CDMO segments performance is expected to exhibit irregular patterns moving forward as sales from a
campaign were deferred to 3Q from 2Q due to a sudden change in product specifications by the customer.
Additionally, orders for a few substantial molecules have been pushed from CY23 to CY24.
 NOCIL: The management highlighted the ongoing challenge of aggressive dumping throughout 2Q, attributed to
a combination of factors such as diminished domestic demand in China and export markets, where China
November 2023 21
traditionally serves as a key supplier of rubber chemicals. Despite this, demand from the latex industry continues
to lag, operating at 50% of the peak levels observed in CY21 and a part of CY22.
Exhibit 50: Revenue for our coverage universe
Aggregate Revenue (INR b)

75.7 75.4 71.1 70.5
68.8 63.4 62.3
58.3 61.9
51.3 53.9
40.5 40.3 39.3 39.9 38.8 41.5 44.0
32.8 34.3 37.5 30.8
1QFY19
2QFY19
3QFY19
4QFY19
1QFY20
2QFY20
3QFY20
4QFY20
1QFY21
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
Exhibit 51: Gross margin for our coverage universe
Aggregate Gross margin (%)

50.5 50.2
47.5 48.5 48.3
46.2 46.3 47.0 45.6
44.3
42.2 42.9 42.8 42.9 42.4
40.6 41.7 41.6 41.3 40.8 41.0
39.4
1QFY19
2QFY19
3QFY19
4QFY19
1QFY20
2QFY20
3QFY20
4QFY20
1QFY21
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
Exhibit 52: EBITDAM for our coverage universe
Aggregate EBITDA margin (%) 26.0 25.4 25.5
25.1
23.5 23.0 23.8
22.6 22.7
20.4
19.3 19.0 19.9 19.3 19.6 19.0
19.9
18.0 18.5
17.5 17.3 17.1
1QFY19
2QFY19
3QFY19
4QFY19
1QFY20
2QFY20
3QFY20
4QFY20
1QFY21
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
Exhibit 53: PAT margin for our coverage universe

Aggregate PAT margin (%)
21.2
19.1
17.3 17.4 18.1 18.5 16.6
15.5
13.9 13.3 12.7 14.0 13.8 13.7
11.9 13.1 11.5 11.3
10.4 11.4 10.7 11.0
1QFY19
2QFY19
3QFY19
4QFY19
1QFY20
2QFY20
3QFY20
4QFY20
1QFY21
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
November 2023 22
CONSUMER: Sales muted; improved margins drive profitability

 Sales broadly in line with estimates: Companies within our coverage universe reported muted sales growth of
4.4% YoY (est. 6.3%) in 2QFY24 on a cumulative basis. Volume growth has remained at the same level as seen in
the last quarter. It is still at a lower level due to the ongoing weakness in rural India. Price growth in the market
is tailing off as the companies continue to pass on the benefit of lower input costs to consumers. The market
continues to witness heightened competitive intensity. Out of the 19 companies within our coverage universe,
only five companies reported double-digit sales growth, while it declined for three companies. Large players
(HUVR, BRIT & ITC) reported low single-digit revenue growth, and muted volume growth due to intensified
competition from smaller players. Overall sales growth was largely in line for 15 out of 19 companies; however,
there were a few notable misses as well (APNT, P&GH and PAG).
 Margins recover, A&P investments step up: The overall coverage universe exhibited a consistently strong
operating performance, characterized by continuous growth in gross margin and enhancements in EBITDA
margin over the course of the quarter. The majority of companies within our industry have returned to historical
levels of advertising and promotion (A&P) spending to remain competitive in the market, while a few have
introduced new product launches. The decline in raw material prices, specifically for APNT/PIDI, led to the
highest increase in gross margins. Additionally, a correction in agricultural commodity prices benefited
companies such as BRIT/UNSP/UBBL, resulting in a notable improvement in margins. Other companies also
experienced an expansion in margins due to a moderation in input prices.
 Commentary on rural demand recovery: Rural demand faced the dual challenges of inflation and erratic
monsoons, which resulted in a subdued demand during the quarter. Although the rural sector has not fully
rebounded yet, there is potential for recovery. The key to this recovery lies in moderating inflation, which would
increase disposable income and consequently boost spending. The real rural wages have started to show
positive signs, contributing to overall improvement. The government's sustained focus on rural development,
coupled with continued expenditure and investment, provides a supportive environment.
 PBT and PAT broadly in line: PBT for 16 of the 19 companies within our coverage universe was either ahead of
or in line with our estimates, with a better-than-expected performance from CLGT, Dabur, JYL, TATACONS, and
alcobev companies (e.g., UBBL and UNSP). Conversely, there were notable misses from HMN, PAGE, and
INDIGOPN. Cumulative PBT growth was in line at 17.9% YoY. Cumulative PAT growth stood at 17.5% YoY (in line).
 Top picks – ITC, GCPL and TATACONS: We are positive on ITC given: 1) a better-than-expected demand recovery
and a healthy margin outlook in Cigarettes; 2) healthy sales momentum in the FMCG business; 3) a smart
recovery in the Hotels business; and 4) better capital allocation in recent years. GCPL has delivered a healthy
earnings growth driven by: 1) superior growth in the highly profitable markets, such as India and Indonesia; 2)
volume growth; 3) continuing capacity enhancement by undertaking capex in the organic portfolio; 4) working
capital improvement (especially overseas), which is also on track; and 5) the improving profitability outlook in
the overseas business. TATACONS next leg of growth is backed by its two-pronged growth strategy: 1) focusing
on new growth engines such as Tata Sampann, NourishCo, Tata Soulful and the ready to-eat/ready-to-consume
business (Tata Smart Foodz); and 2) rapidly scaling up its distribution network along with digitization prowess
across the supply chain.
 Positive surprises: CLGT, DABUR, JYL, UBBL, UNSP.
 Negative surprises: HMN, GCPL, INDIGOPN.
 APNT: The company maintains its commitment to a double-digit volume trajectory over a four-year CAGR basis.
This is supported by strong CAGR levels of about 15% for both volume and value. Additionally, specific segments
are exhibiting even higher growth rates at ~16%. The company is committed to maintaining EBITDA margin
within the established range of 18% to 20%.
 DABUR: Despite challenges such as high inflation in spices, Dabur remains steadfast in its commitment to
achieve a year-end run rate of INR5bn from the foods portfolio. Dabur is investing ~INR300-400m in capex for
the upcoming season. This investment is aimed at competing with pet bottles in the market for serving real
coconut water.
November 2023 23
 HUVR: The management expects a marginal impact on prices if commodity prices remain at their current levels.
The primary focus remains on fostering competitive volume growth, intensifying investments in brands, and
maintaining a healthy EBITDA margin. The ETR for FY24 is expected to be around 26.5%, which is slightly higher
than the 26% recorded in FY23.
 GCPL: The management sees a consistent improvement in EBITDA margin, led by fundamental enhancements in
low GAUM margins, expected margin improvements in Indonesia, and potential structural cost savings in India.
EBITDA margin has reached 20%, and GCPL expects continuous improvement through strategic structural cost
reduction initiatives.
 MRCO: Management is on track to achieve its revenue targets for FY24, with Food and Premium Personal Care
accounting for 20% of the domestic business in 2QFY24. The management increased its expectation for gross
margin expansion to 350- 400bp in FY24. Further, it expects an EBITDA margin expansion of ~200bp YoY in FY24.
 PIDI: VAM’s consumption cost in 2QFY24 was USD1,000/t vs. USD2,500/t in 2QFY23. EBITDA margin would be in
the range of 20-24% for FY24. PIDI has established a lending business to offer small retail loans within its domain
ecosystem. Over the next two years, PIDI plans to invest up to INR1b in the new business through a balanced
mix of equity and debt in staggered tranches.
 TATACONS: Going forward, the company will continue to focus on achieving double-digit growth and improving
EBITDA margins. Traditional businesses are likely to experience volume growth in the mid-single digits, while
growth businesses are expected to grow at a significantly faster rate than traditional businesses. The company is
targeting a revenue of ~INR9-10b within Sampann and ~INR10b within the NourishCo segments. Soulfull is also
on a strong trajectory.
 UNSP: The company has experienced a slowdown, and the pickup during festivals is also not as strong as it was
before. Some increase in pressure on volumes has also been observed in central India. The increase in the
Minimum Support Price (MSP) for the green portfolio is hurting the prices of Energy and Natural Resources
(ENA), and the company is observing inflation in that sector. The EBITDA margin is expected to exceed 15% for
FY24.
 UBBL: The markets were hit by the RTM last year and are showing improvement; the improved impact will be
visible in Q3. Capex of INR3.5b is earmarked for expansion throughout this year and into the next. The company
plans to invest in the supply chain and undertake other commercial investments.
 VBL: All the plants will be in production before Mar'24. VBL will expand its capacity in India by 45% during CY22,
prior to the summer season of CY24. The management is confident of maintaining the current EBITDA margin (at
~21%) in the next few quarters. In the Democratic Republic of Congo (DRC), there is a greenfield plant and a
certain capacity (~35-40m cases) will be ready for production by April-May’24.
Exhibit 54: Quarterly volume growth

(%) 2QFY22 3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24
APNT (domestic decorative)* 34.0 10.0 8.0 37.0 10.0 0.0 16.0 10.0 6.0
BRIT (base business) 5.0 6.0 4.0 (2.0) 4.0 2.0 3.0 0.0 3.0
CLGT (toothpaste) 4.0 1.0 (4.0) (1.0) 0.0 -2.0 0.0 5.0 -1.0
DABUR (domestic FMCG) 10.0 2.0 2.0 5.0 2.0 -3.0 1.0 3.0 3.0
HMN (domestic) 6.2 0.0 0.0 9.6 -1 -3.9 2.0 3.0 2.0
HUVR (domestic) 4.0 2.0 0.0 6.0 4.0 5.0 4.0 3.0 2.0
ITC (cigarette)* 9.0 12.5 9.0 26.0 21.0 15.0 12.0 8.0 4.0
MRCO (domestic) 8.0 0.0 1.0 (6.0) 3.0 4.0 5.0 3.0 3.0
PIDI (consumer bazaar) 24.5 9.0 20.2 44.0 1.0 1.0 7.0 12.0 8.0
*Our estimate Source: Company, MOFSL
November 2023 24
Exhibit 55: Sales grew 4.4% YoY for our consumer universe Exhibit 56: Aggregate EBITDA margin rose ~200bp YoY
Consumer aggregate YoY sales growth (%) Consumer aggregate EBITDA margins (%)
30.6 32.5
25.2 25.0 25.1
26.6 24.5
15.9 18.1 17.2 23.3 23.3 23.0 23.6 23.8
11.8 13.0 22.9
9.8 22.5 22.4 22.5
7.0
4.4
5.4 3.6
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
Exhibit 57: Aggregate adjusted PAT up 17.5% YoY, led by margin expansion
Consumer aggregate YoY PAT growth (%)

34.8
27.4
22.8
19.2 17.5
11.0 12.0 11.1 14.5
7.7 9.8
6.2
-2.7
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
Source: Company, MOFSL
FINANCIALS – BANKS: Earnings traction steady; remains watchful on liability growth and margins
 The banking sector reported a mixed performance in 2QFY24, driven by healthy business growth and sustained
improvement in asset quality. However, the margin trajectory continues to compress further, led by a rise in
funding cost. Several factors supported credit expansion, with the Retail and MSME sectors exhibiting robust
growth, along with growth in the corporate book. Deposit growth too was healthy, mainly due to growth in term
deposits; however, CASA trends continue to remain sluggish across the industry, contributing to a sequential rise
in funding cost across the sector.
 Both private and public sector banks witnessed modest NII growth, except for IIB/IDFCFB/RBK, which reported
healthy QoQ growth of 4%/5%/4%. The moderation in NII growth was attributed to elevated cost of funds,
which has resulted in margin pressure observed across various banks. Thus, most banks showed stagnation or a
decline in margins, barring UNBK, which reported 5bp NIM expansion. Healthy fee income and treasury gains
further supported PPOP growth.
 Fresh slippages saw a mixed trend in 2QFY24 with improvement in most banks (SBIN saw a 48% QoQ decline)
and increase in others (BOB saw a sharp increase of 72% QoQ), driving further improvement in asset quality
across banks. Moreover, better recoveries and upgrades resulted in a sequential decline in GNPA/NNPA ratios,
with PCR remaining healthy. The restructured and SMA book too witnessed a further decline.
 Private Banks – Business growth healthy; margins witness moderation: Advances saw a steady growth of ~4.5-
7.0% QoQ. Deposit growth too was healthy at ~4-6% QoQ (barring AXSB, which reported tepid growth). IDFCB
witnessed 11% QoQ growth in deposits, led by both CASA and term deposits. NII thus grew 18%-32% YoY, except
for BANDHAN, which declined 2% QoQ. Margins witnessed stagnation/moderation for most banks, which saw a
range of +1bp to -35bp QoQ change in 2QFY24. Slippages continued to moderate across segments for most
banks, except DCB/IIB/KMB, which saw an increase of 16%/6%/9% QoQ. The GNPA ratio witnessed steady
improvement across banks with a range of ~1bp-30bp decline, barring BANDHAN, which posted a 56bp QoQ
increase.
November 2023 25
 Public Sector Banks – earnings growth steady; asset quality continues to improve: PSBs posted a sequential
improvement in their operating performance, led by healthy loan growth of 13-19% YoY across banks, aided by
steady trends in the RAM portfolio. Deposits growth was also healthy across the sector. NII and fee income saw
mixed trends, while lower provisions led to improvement in PAT across the sector. Slippages rose sequentially in
2QFY24, except for SBI and Indian Bank, where moderation was seen, but banks reported healthy recoveries and
upgrades during the quarter, resulting in a ~20-100bp QoQ improvement in GNPA ratios. Restructured and SMA
book too witnessed a decline.
 Small Finance Banks – solid momentum in business growth; mixed asset quality trends: AUBANK reported
healthy deposits (up 30% YoY), while AUM growth stood robust though higher securitization dragged reported
loan growth. Deposits were led by CASA growth of 6% on a QoQ basis and TD growth of 11% QoQ. Asset quality
saw pressure due to a 10% QoQ (33% YoY) increase in slippages; however, elevated provisioning helped keep
PCR stable. EQUITASB reported an inline quarter, with healthy AUM growth across segments. Healthy NII and
controlled provisions resulted in 70% YoY growth in PAT. Deposit growth was supported by healthy traction in
term deposits; however, CASA ratio has moderated sharply to 33.6% (peak of 52% in 1QFY23).
 Our view: We estimate FY24 earnings growth to remain resilient, guided by robust traction in loan growth and a
benign credit cost. As the CD ratio remains elevated, healthy growth in liabilities will be critical in sustaining loan
growth. We expect competition for deposits to intensify further, resulting in a rise in funding costs in the coming
quarters. We expect NIM moderation to continue over the coming quarters due to ongoing re-pricing of
liabilities. Banks with a higher CASA mix are well positioned to navigate the rising rate environment, even as the
funding cost is likely to increase. The asset quality outlook remains encouraging, with a moderation in slippages,
healthy PCR, and contingent buffers driving benign trends in core credit costs. Provisioning expenses continued to
remain benign for most banks and while the turn in delinquency cycle in respect to unsecured loans keeps us
watchful, we nevertheless expect credit cost to stay under control over the coming quarters. We slightly raise our
sector earnings estimates by 1% each for FY24/25 as we raise our earnings estimates for FY25 by 7%/4%/4% for
KMB/ICICIBC/EQUITASB. Also, we have cut our estimates for FY25 by 5% each for IDFCB and BANDHAN. We retain
our preference for ICICIBC, IIB, SBIN, and CBK.
 Positive Surprises: ICICBC, KMB, SBIN, and UNBK
 Misses: IDFCB, SBICARDS, BANDHAN, and BOB
Guidance highlights
 HDFCB continues to strengthen its geographical footprint, even as it invests in digital initiatives and boosts its
employee strength. It plans to launch several new apps. Funding would not be an issue for the bank due to high
liquidity build-up in HDFC Ltd. The margin trajectory is likely to depend on the mix of loan origination and
particularly focus is on the retail shift which would bring the margins to a normal level over a period of time. The
merger is completed as on 1st Jul’23.
 KMB remains committed to its growth strategy, driven by robust performance across various sectors. The
primary goal is to achieve substantial growth in both loan portfolios and deposits. RBI has approved the
appointment of Ashok Vaswani as the next MD & CEO of the bank. On the conglomerate side, the bank’s book
is shifting from bonds to advances. Also, there is a noticeable shift from SA to ActivMoney within the bank.
Furthermore, the bank is committed to enhancing its digital capabilities over the next few quarters. The decline
in NIMs is attributed to the impact of ICRR and the liquidity buffer the bank is currently maintaining, which is
expected to decrease in the future. The bank has secured approval from the RBI for the acquisition of MFI
Sonata Finance, and efforts are underway to finalize this transition by the end of FY24.
 ICICIBC aims to increase its fundamental operating earnings while maintaining a prudent approach to risk and
keeping customers at the center of its strategy. The bank will look at an opportunity in the micro market and
plans to assess markets in each geographical area. The branch expansion is more aligned with growth
aspirations. The bank has pretty broad-based growth in secured portfolio and does not depend on unsecured
loans for growth. It will continue to monitor the unsecured portfolio. Although the bank acknowledges that NIM
November 2023 26
is expected to exhibit moderation further from the current level, it anticipates consistent loan growth, driven by
the Retail, SME, and Business Banking (BB) segments.
 AXSB continues to strengthen its geographical footprint and expects to add ~500 branches in FY24. The bank is
determined to achieve a cost-to-assets ratio of around 2% by FY25 (excluding Citibank expense and integration
costs). The bank expects the Citi business to be ROE accretive, while the cost ratios to remain higher due to retail
business of Citi. Revolver mix is moderating in the credit card business across the industry, while the bank has
reported higher credit cards spends than that of the industry. AXSB saw a 17bp QoQ rise in COD, with
expectations of a further increase in the coming quarters.
 SBIN expects to sustain the strong traction in credit growth and loan growth of ~12-14% in FY24. Domestic NIM
stood at 3.43% and declined 12bp due to an increase in the cost of deposits. It expects NIM to be stable at this
level in FY24. Domestic margins may contract 3-5bp in margins due to a rise in the deposit cost. The C/I ratio was
high at 61% due to the allocation of wages in 2QFY24. Wage provisions increased to 14% from 10% earlier, and
hence, it has provided for back-dated book as of Nov’22 (INR34b in 2Q), increase in wage-related provisions will
lead to an increase of INR1b per month and INR3b per quarter impact. The impact of the overall increase (i.e.,
4%) could be INR4b/per month or INR12b/quarter.
 IIB targets loan growth of 18%-23%, with retail comprising 55%-60% of share. Margin stood at 4.29% in 2QFY24.
With an elongated interest rate cycle, NIMs are expected to remain around 4.3%. Despite an elevated C/I ratio
of about 46.9%, the bank expects to improve efficiency, leading C/I to moderate in the range of 41%-42%. Credit
cost guidance remains steady at 110-120bp for FY24. Branch expansion is vital for deposits, aiming for 3,250-
3,750 branches by FY26. Slippages are expected to be ~INR48b-INR51b going forward.
 BOB: Advances are expected to grow 14%-16% in FY24, led by retail book growth of 20%-21%. Fee income
growth is a focus area, with 32% YoY growth, which is the highest ever for the bank. Even if the margin
compresses in the upcoming quarters, fee income will help the bank maintain ROA above 1%. Full-year NIM is
expected to be ~3.15% for FY24. Rising COD will put pressure on the margins with most of the repricing already
been completed. The bank expects the C/I ratio to be ~45% by the end of FY24. The bank anticipates a recovery
from previously written-off account in the next quarter, projecting ~INR20b for 2HFY24. Despite this, the bank is
committed to maintaining its ROA target of more than 1% for the same period.
Exhibit 58: Mixed quarter for banks: Earnings growth supported by higher other income and lower provisions
NII PPOP PAT
INR b 2QFY24 YoY (%) QoQ (%) 2QFY24 YoY (%) QoQ (%) 2QFY24 YoY (%) QoQ (%)
AUBANK 12.5 15.3 0.2 6.5 29.86 18.6 4.0 17.3 3.9
AXSB 123.1 18.9 3.0 86.3 11.87 (2.1) 58.6 10.0 1.1
BANDHAN 24.4 11.4 (1.9) 15.8 1.96 1.4 7.2 244.6 0.0
BoB 108.3 6.4 (1.5) 80.2 32.98 2.5 42.5 28.4 4.5
CBK 89.0 19.8 2.7 76.2 10.28 0.2 36.1 42.8 2.0
DCBB 4.8 15.7 1.1 2.1 15.32 0.9 1.3 12.9 (0.1)
FB 20.6 16.7 7.2 13.2 9.26 1.7 9.5 35.5 11.7
HDFCB 273.9 30.3 16.0 226.9 30.48 20.9 159.8 50.6 33.7
ICICIBC 183.1 23.8 0.4 142.3 21.82 0.6 102.6 35.8 6.4
IDFCFB 39.5 31.6 5.5 15.1 29.22 0.7 7.5 35.2 (1.8)
IIB 50.8 18.0 4.3 39.1 10.28 2.0 22.0 22.0 3.7
INBK 57.4 22.5 0.6 43.0 18.56 4.1 19.9 62.2 16.3
KMB 63.0 23.5 1.0 46.1 29.22 (6.9) 31.9 23.6 (7.6)
PNB 99.2 20.0 4.4 62.2 11.66 4.2 17.6 327.0 39.9
RBK 14.7 38.6 18.4 7.3 42.67 12.9 2.9 45.9 2.1
SBIN 395.0 12.3 1.5 194.2 (8.07) (23.2) 143.3 8.0 (15.1)
UNBK 91.3 9.9 3.2 72.2 9.79 0.6 35.1 90.0 8.5
Source: MOFSL, Company
November 2023 27
Exhibit 59: Margin saw QoQ moderation/stagnation for most banks, except UNBK and PNB
NIM (%) 1QFY24 2QFY24 YoY (bp) QoQ (bp)
AUBANK 5.70 5.50 (70) (22)
AXSB 4.10 4.11 15 1
BANDHAN 7.30 7.20 20 (10)
BoB 3.27 3.07 (26) (20)
CBK 3.05 3.00 14 (5)
DCBB 3.83 3.69 (19) (14)
FB 3.15 3.16 (14) 1
HDFCB 4.10 3.40 (70) (70)
ICICIBC 4.78 4.53 22 (25)
IDFCFB 6.33 6.32 34 (1)
IIB 4.29 4.29 5 -
INBK 3.61 3.52 32 (9)
KMB 5.57 5.22 7 (35)
PNB 3.08 3.11 11 3
RBK 4.84 5.54 52 1
SBIN 3.33 3.29 (3) (4)
UNBK 3.13 3.18 3 5
Exhibit 60: Loan growth steady; deposit growth remains healthy with CASA under pressure
Loans Deposits CASA ratio (%)
INR b 2QFY24 YoY (%) QoQ (%) 2QFY24 YoY (%) QoQ (%) 2QFY24 YoY (bp) QoQ (bp)
AUBANK 642 24.0 2.1 757 29.84 9.3 33.9 (810) (110)
AXSB 8,973 22.8 4.5 9,556 17.85 1.5 44.0 (200) (200)
BANDHAN 1,020 13.1 3.9 1,121 12.79 3.3 38.5 (223) 253
BoB 9,980 19.3 3.6 12,496 14.63 4.1 39.9 (289) (45)
CBK 8,923 13.2 4.3 12,322 8.66 3.3 32.2 (187) (85)
DCBB 373 19.1 5.1 455 23.1 5.8 25.0 (431) (93)
FB 1,928 19.6 5.1 2,329 23.1 4.7 31.2 (524) (68)
HDFCB 23,312 57.5 44.3 21,729 29.8 13.6 37.6 (780) (490)
ICICIBC 11,105 18.3 5.0 12,947 18.8 4.5 40.8 (580) (250)
IDFCFB 1,792 27.8 7.0 1,712 38.72 10.9 46.4 (488) (10)
IIB 3,155 21.3 4.7 3,595 13.9 3.6 39.4 (300) (50)
INBK 4,706 14.2 3.0 6,408 8.82 1.9 40.1 (83) (15)
KMB 3,483 18.5 6.0 4,010 23.3 3.8 48.3 (790) (70)
PNB 8,899 15.1 3.0 13,099 9.75 0.9 42.2 (276) 25
RBK 763 21.3 4.4 898 13.1 4.8 35.7 (50) (160)
SBIN 33,452 13.3 3.4 46,892 11.91 3.5 41.9 (275) (100)
UNBK 8,036 10.5 4.3 11,376 9.04 0.8 34.7 (97) 6
Exhibit 61: Asset quality continues to improve, with a robust PCR; credit cost remains in control across banks
Asset quality 1QFY24 (%) 2QFY24 (%) QoQ change (bp) 2QFY24 (%)
(%) GNPA NNPA PCR GNPA NNPA PCR GNPA NNPA PCR Slippage Ratio
AUBANK 1.76 0.55 69.0 1.91 0.60 69.1 15 5 5 2.70
AXSB 1.96 0.41 79.6 1.73 0.36 79.5 (23) (5) (14) 1.60
BANDHAN 6.76 2.18 69.2 7.32 2.32 70.0 56 14 72 5.18
BoB 3.50 0.78 78.5 3.32 0.76 77.6 (18) (2) (88) 1.23
CBK 5.15 1.57 70.6 4.76 1.41 71.4 (39) (16) 88 0.38
DCBB 3.26 1.19 64.1 3.36 1.28 62.8 10 9 (130) 5.05
FB 2.37 0.74 71.3 2.26 0.64 72.3 (11) (10) 102 0.84
HDFCB 1.17 0.30 75.0 1.34 0.35 73.3 17 5 - 1.93
ICICIBC 2.76 0.48 83.1 2.48 0.43 83.1 (28) (5) (0) 1.77
IDFCFB 2.17 0.70 68.1 2.11 0.68 68.1 (6) (2) - NA
IIB 1.94 0.58 70.6 1.93 0.57 70.6 (1) (1) (2) 2.04
INBK 5.47 0.70 87.8 4.97 0.60 88.5 (50) (10) 65 1.92
KMB 1.77 0.40 78.0 1.72 0.37 79.1 (5) (3) 109 1.55
PNB 7.73 1.98 75.8 6.96 1.47 80.0 (77) (51) 416 0.94
RBK 3.22 1.00 69.6 3.12 0.78 75.6 (10) (22) 600 3.44
SBIN 2.76 0.71 74.8 2.55 0.64 75.4 (21) (7) 63 0.55
UNsBK 7.34 1.58 79.8 6.38 1.30 80.7 (96) (28) 90 1.37
November 2023 28
Exhibit 62: Snapshot of restructured book across Banks (%)

Restructured book
INR b
Absolute Sep’21 Dec’21 Mar’22 Jun’22 Sep’22 Dec’22 Mar’23 Jun’23 Sep’23
AXSB 17.6 0.66 0.63 0.52 0.45 0.38 0.30 0.22 0.21 0.20
BANDHAN NA 11.18 8.22 5.20 2.35 0.20 NA NA NA NA
DCBB 12.7 6.80 6.81 6.42 6.10 5.45 4.94 4.51 3.97 3.40
HDFCB 51.3 1.50 1.40 1.14 0.76 0.53 0.42 0.31 NA 0.22
ICICIBC 35.4 1.27 1.19 1.00 0.80 0.70 0.50 0.40 NA 0.32
IIB 17.0 3.60 3.30 2.60 2.10 1.50 1.25 0.84 0.66 0.54
KMB 5.3 0.54 0.54 0.44 0.39 0.34 0.25 0.22 0.19 0.15
FB 24.2 2.49 2.45 2.44 2.22 2.03 1.81 1.62 1.40 1.30
RBK 6.8 3.66 3.44 3.27 2.90 2.21 1.67 1.21 1.05 0.89
AUBANK 5.1 3.60 3.10 2.50 2.10 1.70 1.40 1.20 1.00 0.80
BOB NA 2.95 2.65 2.44 2.46 2.12 1.87 1.50 1.31 NA
SBIN 208.5 1.24 1.20 1.13 1.00 0.93 0.85 0.80 0.69 0.62
INBK 99.8 5.85 5.09 4.73 4.20 3.90 3.37 2.51 2.19 2.12
PNB NA 2.60 2.76 2.36 2.00 1.80 1.54 1.32 NA NA
UNBK 145.2 3.69 3.32 2.99 2.92 2.60 2.38 2.20 2.00 1.71
CBK NA 2.85 2.78 2.77 2.41 2.09 1.75 NA NA NA
Exhibit 63: Raise aggregate earnings by ~1% each for FY24/FY25

Old estimates Revised estimates Change (%)
PAT (INR b)
FY24E FY25E FY24E FY25E FY24E FY25E
Private Banks
AXSB 254.1 302.1 249.7 308.5 -1.7 2.1
BANDHAN 34.3 44.1 33.3 42.1 -2.8 -4.6
DCBB 5.5 6.6 5.5 6.6 0.0 0.0
HDFCB 614.7 748.1 628.6 764.1 2.3 2.1
ICICIBC 387.6 440.7 398.3 457.4 2.8 3.8
IDFCFB 32.2 43.4 31.6 41.3 -1.9 -4.7
IIB 92.3 118.0 91.8 113.9 -0.5 -3.5
KMB 128.5 141.4 134.7 151.1 4.8 6.9
FB 34.6 42.6 35.9 44.0 3.6 3.3
RBK 12.6 16.8 13.1 17.0 3.9 1.2
AUBANK 17.5 23.1 17.0 22.6 -2.8 -2.0
EQUITASB 8.3 9.6 8.2 10.0 -1.0 4.5
Total Private Banks 1,622.2 1,936.5 1,647.7 1,978.7 1.6 2.2
YoY growth 27.4% 19.4% 29.4% 20.1%
Total Private Banks (Ex HDFCB) 1,007.6 1,188.4 1,019.1 1,214.6 1.1 2.2
YoY growth 21.1% 17.9% 22.5% 19.2%
PSU Banks
BOB 171.9 209.3 172.8 204.1 0.6 -2.5
CBK 142.3 166.6 146.2 167.9 2.7 0.8
INBK 80.4 95.2 81.3 95.7 1.2 0.6
PNB 61.4 101.5 63.7 100.6 3.7 -0.8
SBIN 628.0 691.9 621.5 692.5 -1.0 0.1
UNBK 126.4 152.5 126.4 152.5 0.0 0.0
Total PSU Bank 1,210.4 1,416.9 1,211.9 1,413.4 0.1 -0.2
YoY growth 32.8% 17.1% 32.9% 16.6%
Total for Banks 2,832.6 3,353.4 2,859.6 3,392.0 1.0 1.2
YoY growth 29.7% 18.4% 30.9% 18.6%
Total for Banks (Ex of HDFCB) 2,218.0 2,605.3 2,231.0 2,628.0 0.6 0.9
YoY growth 27.2% 17.5% 27.9% 17.8%
Other Financials
SBICARD 26.6 37.1 24.3 33.2 -8.4 -10.5
PAYTM -10.6 2.3 -8.2 2.9 NA 29.3
November 2023 29
FINANCIALS – NBFCs: Loan growth momentum sustained; margins bottoming out

 NBFCs/HFCs under our coverage universe reported AUM growth of ~19% YoY/5% QoQ. Vehicle financiers
clocked AUM growth of 27% YoY; large HFCs (PNBHF and LICHF) grew 5% YoY; affordable and small-ticket HFCs
saw 17% YoY growth; NBFC-MFIs grew 39% YoY; and Gold loan NBFCs grew ~18% YoY. In 2QFY24, (ex-PIEL)
NII/PPoP/PAT grew 29%/31%/34% YoY and 5%/5%/2% QoQ.
 In line with expectations, NIM expanded QoQ for vehicle financiers (except MMFS) but contracted for HFCs
(including affordable HFCs). For the majority of HFCs, the NIM compression was mainly driven by the sustained
increase in the cost of borrowings and moderation in yields. For MMFS, the NIM compression was accentuated
by moderation in yields (because of the product mix and intense competitive dynamics not allowing for pricing
hikes).
 For large mortgage lenders, such as PNBHF and LICHF, prime housing yields moderated due to pressure on
pricing to retain good customers and new sanctions, which happen at relatively lower yields.
 In vehicle finance, demand remained strong across product segments (particularly UV and CV), translating into
overall healthy disbursements.
 Unlike a typical 1H, asset quality remained largely stable (or a minor deterioration) and credit costs remained
benign (except MMFS). Affordable housing financiers and Gold financiers viz. HomeFirst, CANFIN, and MASFIN
reported a minor deterioration in GS3, while MUTH reported a ~25bp QoQ decline in GS3, aided by the sale of a
gold loan pool to ARC. PNBHF reported the steepest sequential improvement in GS3 of ~2pp, aided by the
resolution of a large Corporate NPA and write-offs in retail business.
 HFCs/AHFCs – Moderation in NIM across HFCs and AHFCs; strong momentum in affordable home loans. There
was some demand moderation in urban affordable housing in ticket sizes between INR1.5m and INR3.0m. LICHF
recovered from the teething issues (given the tech transformation), but disbursements were still muted.
However, demand for affordable housing loans remained strong. Large HFCs reported a sequential moderation in
margins as interest rates have stabilized and higher borrowing costs have been transmitted to borrowers.
HomeFirst continued to report healthy growth in disbursements in 2QFY24, while AAVAS is yet to regain its lost
momentum. AHFCs (AAVAS, HomeFirst, CANF) demonstrated a seasonal deterioration in asset quality.
 Vehicle financiers – Healthy business growth momentum and bottoming of NIM: Disbursements grew 33% YoY
for the cohort of three vehicle financiers. While SHFL and CIFC have a diversified AUM mix, we have classified
them under vehicle financiers for this exercise. Asset quality improved for SHFL, MMFS and CIFC. Write-offs
remained elevated for MMFS and SHFL, while CIFC reported write-offs in line with its normalized run rate. CIFC
and SHFL reported ~10bp/40bp QoQ NIM expansion, while MMFS reported a ~40bp NIM contraction.
 Diversified financiers – Personal/unsecured loans now seeing some growth moderation because of higher
delinquencies: Diversified lenders (particularly BAF and CIFC) have been selectively acknowledging signs of
stress and the consequent risk aversion in personal loans and unsecured business loans. CIFC shared that stress
in the unsecured segment was seen in loans originated through digital partnerships. AUM growth was in line
with expectations, while asset quality improved sequentially for LTFH, which is working on multiple levers to
transform into a retail franchise while actively running down its wholesale book.
 Gold financiers – Gold loan growth muted in the seasonally weakest quarter; MUTH reported NIM
compression: MUTH/MGFL reported 2%/1% QoQ growth in gold loans. While MGFL delivered a sequential
improvement in margins, MUTH reported NIM compression. Both MUTH/MGFL shared that the competitive
landscape is relatively better with less aggression from banks. All non-gold product segments exhibited strong
growth in MGFL.
 Micro Financiers (MFIs) – Demand remained strong even as NIM starting to stabilize: CREDAG, Fusion and
Spandana reported ~10bp/20bp/10bp QoQ expansion in NIM. Disbursement growth was healthy, with CREDAG,
Fusion and Spandana reporting YoY disbursement growth of 14%/14%/81%, along with an improvement in asset
quality.
 Our view: As repo rates have stabilized and the narrative of interest rate cuts is now emerging, the impact of
margin compression on earnings should alleviate, supporting better valuations. We have a positive stance on
the sector, driven by expectations of margin expansion in 2HFY24 and benign credit costs. Vehicle financiers are
better placed than other product segments as rates peak and margins bottom out over the next two quarters.
Subsequently, we expect margins to stabilize, and then gradually expand as the existing book is replaced with
November 2023 30
higher-yielding new loans. Asset quality is expected to improve further in 2HFY24, resulting in low credit costs.
Our preferred ideas are SHTF, PNBHF and MGFL.
 Positive surprises: CREDAG, MGFL and Repco
 Misses: MMFS, PIEL, MUTH
 Rating changes: PNBHF
Guidance highlights: a) Broader guidance for continued strong disbursement growth in FY24, along with improvement
in asset quality that will lead to benign credit costs; b) MUTH continues to guide for ~15-20% YoY growth in gold loans
and spreads of ~9-10% in FY24, while MGFL guides for stronger loan growth in the non-gold segments; c) BAF guides
for RoA of 4.6-4.8% and RoE of 22-23%, and d) CIFC guides for credit costs of 1.0-1.2% across credit cycles.
Exhibit 64: PBT up 34% YoY for our NBFC coverage universe*
PBT - YoY growth (%)

112
81
55
35 34
25 22 22
Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024
Source: MOFSL, Company, *MOFSL universe excl. PIEL and Indostar
Exhibit 65: LICHF loan growth has lagged the industry, while Exhibit 66: Repco loan growth has been picking up; for
PNBHF retail loan growth has been gaining momentum CANF, loan growth has moderated
1HFY23 9MFY23 FY23 1QFY24 1HFY24
10 10 10 24 23 25 23 22 22
8 20
6 18 18
4 16
3
1
6 7 7
3
-3 1
-6
LICHF PNBHF AAVAS CANF Repco
Source: MOFSL, Company; Source: MOFSL, Company;
Note: YoY AUM growth for large HFCs Note: YoY AUM growth for affordable housing financiers
Exhibit 67: CIFC is best placed among vehicle financiers to Exhibit 68: Gold loan growth was muted QoQ despite
exhibit strong growth in the subsequent quarters optically appearing strong YoY
FY23 1QFY24 1HFY24
42
38 40 19 21
27 28 27 9 8
4 6
18 19 20 3 1
-2
-9
SHFL MMFS CIFC MUTH MGFL
Source: MOFSL, Company Source: MOFSL, Company

Note: YoY AUM growth for vehicle financiers Note: YoY AUM growth for gold financiers
November 2023 31
Exhibit 69: PAT grew 34% YoY for our NBFC coverage universe*
NII PPOP PAT NIM
INR m
2QFY24 YoY (%) QoQ (%) 2QFY24 YoY (%) QoQ (%) 2QFY24 YoY (%) QoQ (%) 2QFY24 YoY (bp) QoQ (bp)
AAVAS 2,223 18.4 -1.7 1,631 17.0 11.4 1,217 13.9 10.9 7.3 -0.3 -0.4
ABCAP (NBFC) 15,200 52.3 6.0 10,830 58.4 8.7 5,480 53.1 6.2 6.8 0.3 -0.1
ABCAP (HFC) 2,050 25.0 7.9 979 1.3 9.4 750 27.1 15.4 4.9 -0.3 -0.2
BAF 71,970 30.0 7.1 58,347 30.0 5.2 35,508 27.7 3.3 12.6 -0.6 -0.4
CANF 3,168 26.1 11.1 2,702 25.0 9.1 1,581 11.5 -13.8 3.8 0.3 0.3
CIFC 20,153 35.4 9.4 14,206 37.1 6.0 7,625 35.3 5.0 6.7 -0.3 0.1
HomeFirst 1,321 30.1 6.0 1,044 40.9 6.9 743 36.9 7.5 6.5 -0.2 -0.1
LTHF 18,889 7.5 1.6 12,974 9.1 5.1 5,942 46.5 12.0 9.6 1.7 0.3
LICHF 21,066 81.2 -4.7 18,993 101.1 -5.5 11,881 289.6 -10.2 3.0 1.2 -0.2
MMFSL 15,870 9.6 0.2 9,428 9.2 -5.7 2,352 -53.2 -33.3 7.0 -1.1 -0.4
MASFIN 1,029 23.7 10.1 1,036 33.6 9.5 600 22.3 4.8 7.0 0.1 0.3
MGFL 13,543 25.5 5.2 8,664 36.8 8.0 5,607 36.9 12.6 15.0 0.2 0.2
Muthoot 18,584 18.2 -1.9 13,422 16.9 -4.2 9,910 14.3 1.6 11.2 -0.0 -0.8
PIEL 7,283 -13.6 6.9 4,911 22.1 -49.4 482 -103.1 -90.5 9.0 2.0 1.0
PNBHF 6,456 1.9 4.2 5,519 -5.4 8.8 3,830 45.8 10.3 4.0 -0.2 0.1
PFL 4,746 73.3 12.7 3,356 167.0 14.1 2,300 76.7 14.9 10.9 1.6 0.4
REPCO 1,765 18.9 7.7 1,338 17.3 7.3 981 37.9 10.1 5.4 0.6 0.3
SHFL 45,947 21.6 9.4 34,808 16.3 11.3 17,508 12.6 4.5 9.3 0.2 0.4
CREDAG 4,239 55.1 10.1 5,626 68.1 3.5 3,470 96.6 -0.4 13.1 1.1 0.1
FUSION 3,058 26.1 3.5 2,418 29.1 2.7 1,257 32.2 4.3 11.1 0.9 0.2
SPANDANA 3,159 70.6 7.7 2,576 134.1 36.2 1,252 126.9 4.8 14.8 0.8 0.1
Total (ex Piramal) 2,74,435 28.5 5.0 2,09,898 30.9 4.8 1,19,794 33.9 2.0
Source: MOFSL, Company, *MOFSL universe excl. PIEL and Indostar
Exhibit 70: Advances/AUM growth
Advances/AUM
INR b
2QFY24 YoY (%) QoQ (%)
AAVAS 153 22.1 4.6
ABCAP (NBFC) 935 43.9 8.9
ABCAP (HFC) 154 24.0 6.4
BAF 2,903 32.9 7.5
CANF 334 15.7 2.6
CIFC 1,242 41.7 8.2
HomeFirst 84 33.3 7.6
LTHF 787 -12.6 0.2
LICHF 2,780 6.0 0.6
MMFSL 937 27.0 8.1
MASFIN 90 26.7 7.5
MGFL 390 27.0 5.0
Muthoot 690 20.6 2.0
PIEL 669 4.9 4.7
PNBHF 674 2.6 0.1
PFL 202 53.6 13.7
REPCO 129 7.1 2.1
SHFL 2,026 19.7 4.9
CREDAG 225 36.0 3.1
FUSION 100 24.6 3.2
SPANDANA 98 69.2 10.6
Total 15,604 19.4 4.7
November 2023 32
Exhibit 71: Asset quality snapshot

1QFY24 2QFY24 Change (bp)
Asset Quality (%) GNPA NNPA PCR GNPA NNPA PCR GNPA NNPA PCR
AAVAS 1.0 0.7 26.9 1.0 0.8 27.5 4 3 55
ABCAP (NBFC) 2.8 1.5 46.6 2.6 1.4 48.3 -16 -13 170
ABCAP (HFC) 2.7 NA NA 2.6 NA NA -4 NA NA
BAF 0.9 0.3 64.8 0.9 0.3 66.0 4 0 127
CANF 0.6 0.3 46.6 0.8 0.4 44.1 13 9 -248
CIFC 3.1 1.7 45.4 3.0 1.6 47.3 -10 -12 192
HomeFirst 1.6 1.1 31.0 1.7 1.2 30.3 10 8 -69
LTFH 4.0 1.6 71.4 3.3 0.8 75.7 -77 -78 424
LICHF 5.0 2.9 42.3 4.3 2.6 41.2 -63 -34 -106
MMFSL 4.3 1.8 60.1 4.3 1.7 61.2 -5 -7 105
MASFIN 2.0 1.2 41.3 2.2 1.3 41.1 18 11 -19
MGFL 1.4 1.2 NA 1.6 1.4 NA 20 20 NA
Muthoot 4.3 NA NA 4.0 NA NA -25 NA NA
PIEL 2.4 1.3 48.0 2.3 1.3 46.6 -2 2 -141
PNBHF 3.8 2.6 32.0 1.8 1.2 34.0 -197 -140 195
PFL 1.4 0.8 46.5 1.4 0.7 47.4 -6 -4 84
REPCO 5.5 2.8 51.4 4.9 2.2 57.4 -56 -59 597
SFL 6.0 3.1 52.5 5.8 2.9 53.1 -24 -16 55
CREDAG 0.9 0.3 69.6 0.8 0.2 69.3 -12 -3 -30
FUSION 3.2 0.8 76.2 2.7 0.7 76.4 -51 -14 18
SPANDANA 1.6 0.5 70.1 1.4 0.4 70.1 -23 -7 1
FINANCIALS – NON-LENDING: Strong performance by capital market-related stocks; GI players report

higher claim ratios
 Growth in F&O and cash volumes: The brokerage segment witnessed a robust YoY growth as F&O volumes hit
new highs and cash volumes continued with their upward trajectory. Demat account additions picked up
momentum at 9.2m in 2QFY24 vs. 6m in 1QFY24, while NSE Active clients count increased to 33m from 31m. Angel
One delivered a robust performance with revenue/PAT growth of 48%/42% YoY.
 Higher contribution to SGF for MCX hits profitability; traction in re-launch of derivatives for BSE: MCX has
migrated successfully to its new CDP (Commodity Derivatives Platform) and has completed one full cycle of
expiry and deliveries without any concerns. This would pave way for new product launches in the future. On the
other hand, rising open interest has led to ~INR 110m contribution to SGF. For BSE, the revenue growth was led
by strong cash volumes and high treasury income from clearing and settlement funds. BSE has increased transaction
charges on Sensex options (only on near expiry) with effect from 1st Nov’23. Thus, the derivative segment would see
strong revenue traction going ahead.
 VNB margins decline for life insurers: APE growth for life insurance companies was in line with our estimates in
2QFY24, with SBILIFE/MAXFIN reporting strong growth of 32%/39%, while HDFCLIFE and IPRU posted muted
growth of 8%/3%. VNB margins contracted YoY for all companies and missed our estimates for most players.
The miss was mainly due to the product mix, with a lower share of non-par products on YoY basis, while the
share of ULIP and protection products increased. Competitive pressures have led to compression in product-
level margins, especially for group products.
 General insurers see high loss ratios in the health segment: General insurance players have seen a 12% YoY
growth in premiums, underpinned by the strength observed in auto sales, upward adjustments in health insurance
premiums, and the expansion of commercial lines in alignment with overall economic growth. While loss ratios in
the motor segment improved, claims ratio in the health segment increased led by high incidences of respiratory
and fever infections. ICICIGI/STARHEAL registered NEP growth of 12%/15% and PAT grew 35% for STARHEAL, while
PAT declined 2% for ICICGI.
 Strong performance by asset management firms: AUM of the MF Industry stood at INR47.8t as of 2QFY24, up
20% YoY/7% QoQ. Equity AUM grew 12% QoQ, while non-Equity AUM was flat QoQ. Inflows stood at INR302b
compared to INR1.77t in 1QFY24. SIP flows continued to gain traction with INR475b flows in 2QFY24 vs. INR432b
in 1QFY24. For CAMS, while MF business saw some pressure on yields, the non-MF business share has increased
to 12.9%. Profitability improved for CAMS, led by scale benefits in the non-MF businesses. For 360ONE,
November 2023 33
profitability came in line with expectations as lower yields on ARR assets were offset by strong transaction
revenues. Investments into the mid-market channel will keep costs elevated for FY24.
Valuation and view: Boost in option volumes resulted in strong performance by capital market-related players such
as brokers and exchanges. The customer acquisition trend picked up and with low penetration, we expect it to
improve further in the medium term. Also, primary market activity has gained momentum in the recent past. Angel
One with its strategy to diversify its revenue base over the longer term is well poised to leverage on emerging
trends. BSE should see strong business momentum with rising share in derivatives volumes and the price hike
implemented for Sensex. With the software migration complete, the focus for MCX is towards new product
launches, which shall boost revenues and profitability. General insurers will continue to witness strong premium
growth and improvements in profitability, led by better pricing for Motor TP and a low expense ratio with scale
benefits.
 Surprises: BSE, ANGELONE, ICICIGI

 Misses: MCX, STARHEAL
 ANGELONE: Angel One is now integrating its Super App Platform with its lending partners. It will start offering
consumer credit products by offering unsecured consumer loans. Also, Angel One will be targeting wealth
management customers with a ticket size INR5m-INR 10m.
 360ONE: 360 One is expecting to meet its guidance for FY24 on inflows, but could see some misses on the
profitability, given the increased investments in the mid-market segment. The company anticipates the full
launch of its Digital-first HNI platform in Apr’24.
 CAMS: The Management is confident that CAMS WealthServ, CAMSPay, CAMSRep, and Think360 would
contribute sizable revenues in the coming quarters, resulting in 20%+ growth in revenues for Non-MF business.
The company has factored in the maximum impact of yield re-negotiation has been accounted for in 1QFY24,
with some incremental impact noted in 2QFY24. Yields are expected to remain steady post 2QFY24.
 BSE: After the re-launch, derivative contracts (Sensex and Bankex) are witnessing significant traction from market
participants. BSE has increased transaction charges on Sensex options (only on near expiry), with effect from 1st
Nov’23. Thus, the derivative segment would see strong revenue growth. Revenue jumped 46% YoY, led by strong
cash volumes and high treasury income from clearing and settlement funds.
 MCX: MCX will soon be launching Steel TMT contracts and will look to launch gold monthly and smaller size
contracts in the near term. Also, regulatory approvals, in case they come through, for partial withdrawal of SGF
or inter-operability of margins between BSE/NSE and MCX will provide further push to volumes.
 IPRU: It will focus on utilizing the capacity generated from new partnerships and agency channels. It takes 18-24
months for the channel to mature and improve productivity. In the ICICI Bank channel, the focus will be on
growing annuity and protection businesses, which do not compete with banking products.
 SBILIFE: The company has maintained its guidance of 20% APE growth and aims to maintain VNB margins at 28-
30%. The product mix (ULIP vs. Non-ULIP) would move towards a ratio of 55:45. In the near future, new product
launches include one product each in: 1) non-par savings, 2) rider portfolio revision, and 3) ROP protection for
higher ticket sizes.
 HDFCLIFE: The company’s strategy to increase the number of customers by entering low-tier cities has proven
successful, as premium growth from tier 2 & 3 towns was double as compared with the company-level growth.
Its wallet share in HDFCBANK has continued to trend higher and reached 70%+ towards the end of the quarter.
 MAXFIN: The counter share with Axis Bank has been stable at ~70% (Axis’ channel grew 28% YoY in 2QFY24 and
12% YoY in 1HFY24), while with Yes Bank, the share has been stable at ~58%. The company has maintained its
guidance of 27-28% VNB margins for FY24. Beyond FY24, margin should improve ~100-150bp.
 LIC: Competition in the group segment is intensifying, resulting in a decline in premium from this segment. The
company repriced its products in the non-par segment to be more competitive in the current interest rate
regime.
 STARHEAL: STARHEAL has tightened its underwriting standards to enhance focus on quality business, leading to
recalibration of some geographies and portability business, which are poor LTV. STARHEAL had taken a price
November 2023 34
revision in Family Health Optima, (w.e.f. from 1st May 2023) which will be reflected over the next 12 months.
The policy renewals (both volumes and value) are in line with the company’s expectations.
 ICICIGI: EOM would rationalize expenses for the Motor OD segment. There was a continuous improvement in
Motor OD on account of better sourcing and claims management using data analytics. Growth in new private
cars has come back on a relatively better claims ratio. Investments have been made to accelerate growth in
Health distribution. Pricing accretion has been seen in Group Health.
Exhibit 72: Quarterly performance
INR m Revenue EBITDA PAT
Broking/Wealth 2QFY24 YoY (%) QoQ (%) 2QFY24 YoY (%) QoQ (%) 2QFY24 YoY (%) QoQ (%)
ANGELONE 6,747 48 30 4,184 43 37 3,037 42 38
ISEC 12,490 44 34 5,693 41 56 4,235 41 56
Exchanges
MCX 1,651 30 13 -173 N.A N.A -191 N.A N.A
BSE 3,144 59 46 1,429 142 100 1,183 303 -73
AMCs
CAMS 2,751 13.5 5.3 1,221 15.1 11 838 16.2 11.9
IIFLWAM 4,270 12 5 2,130 5 8 1,862 7 0
Gross Premium Underwriting Profit/(Loss) PAT
General Insurance
2QFY24 YoY (%) QoQ (%) 2QFY24 YoY (%) QoQ (%) 2QFY24 YoY (%) QoQ (%)
ICICIGI 62,723 18 -5 -1,460 N.A N.A 5,773 -2 48
STARHEAL 37,317 17 27 -784 N.A N.A 1,253 35 -56
HEALTHCARE: Operating leverage drives better profitability for Pharma; Hospitals sustain superior
execution partly supported by seasonality
 The pharma companies under our coverage universe (excluding hospitals and Solara) reported in-line sales in
2QFY24. However, EBITDA was slightly better than our estimates by 4% and PAT outperformed by 8%. This
outperformance was driven by lower raw material costs, reduced intensity of price erosion in the US generics
segment and a gradual decline in freight costs.
 Sales/EBITDA/PAT grew 13%/16%/14.7% YoY on an aggregate basis for 2QFY24. Gross profit grew 20% YoY, with
margins expanding 250bp YoY on an aggregate basis.
 Among hospitals, APHS/MAXHEALTH/MEDANTA outperformed our estimates for the quarter. Sales/EBITDA/PAT
grew 16%/18%/24% YoY on an aggregate basis, outperforming our estimates by 5%/11%/8%. This was due to a
better-than-expected improvement in operational parameters such as ARPOB and occupancy, partly led by
favorable seasonality.
 Out of 21 companies, 11 exceeded expectations in 2QFY24. Specifically, ALKEM/LPC/ARBP/CIPLA/ DRRD beat our
earnings estimate by 70%/49%/23%/18%/14%. Six out of 21 companies missed our estimates. Particularly,
LAURUS/DIVI/GLAND/TRP missed our estimates by 49%/17%/10%/9%.
 After a robust performance in 1QFY24, US sales remained strong in 2QFY24 for our coverage companies,
growing 15% YoY (in cc terms) to USD2.2b on an aggregate basis. Increased niche launches, better traction in
existing products and lesser price erosion in the base portfolio led to healthy YoY growth in the US generics
segment.
 Among our coverage companies, LPC delivered the highest YoY growth of 32% in US sales, led by niche launches
such as g-Spiriva and improved traction in legacy products such as Suprep and Lisinopril. CIPLA’s US segment
delivered 28.5% YoY growth, led by increased sales of g-Revlimid and market share gains of Lanreotide,
Albuterol, Esomeprazole and other key products. ARBP posted 21% YoY growth in US sales, led by robust
demand in key products. SUNP continued to witness robust execution in the specialty portfolio, leading to 9%
YoY growth in US sales. However, TRP recorded an 8% YoY decline in US sales due to the loss of low-margin
business and a lack of new launches.
 On an overall basis, companies under our coverage filed 27 ANDA in total and received approvals for 57 ANDA in
2QFY24. The pace of ANDA filings has been reducing at the aggregate level, with enhanced effort toward select
limited-competition products.
November 2023 35
 On an aggregate basis, domestic formulation (DF) saw YoY growth of 8% in 2QFY24. This growth has been stable
at HSD over the past five quarters, implying some moderation as a higher number of products included under
NLEM and a faster shift toward trade generics. Therapy-wise, opthal/Cardiac/Gastro delivered 20%/9%/8% YoY
growth for the quarter. Despite a strong performance by key therapies driving overall DF growth, Respiratory
and Anti-infective therapy (-0.2%/+1.7% YoY) witnessed headwinds due to a muted flu season. Among our
coverage companies, TRP delivered the highest YoY growth of 18%, while AJP/SUN/IPCA delivered 11% YoY
growth each. TRP growth was supported by inorganic initiatives and a higher contribution from chronic.
 Of our coverage companies that have reported so far, 11 companies saw earnings downgrades, while 11 saw
earnings upgrades. The maximum upgrades in FY24/FY25 earnings were seen in ALKEM (21%/11%), LPC
(20%,10%), MEDANTA (13%/13%) and IPCA (10%/11%). Conversely, APHS (13%/17%), DIVI (5%/3%), LAURUS
(24%/1%) witnessed the maximum downgrades in earnings estimates.
 Top picks: CIPLA, MEDANTA, MAXHEALTH
 Surprises: ALKEM, LPC, ARBP, CIPLA, GRAN, DRRD
 Misses: LAURUS, DIVI, GLAND, TRP
Guidance highlights
 SUNP expects the prescription trend of Ilumya, Cequa, Odomzo, and Winvelive to improve going forward. It has
guided for R&D spending to be 7-8% of sales in FY24. Dispatches have resumed from the Mohali plant.
 DRRD indicated that It expects the India segment to achieve double-digit growth in 4QFY24. It anticipates
contribution from PLI scheme to sustain going forward. Launches through e-commerce should drive growth for
nutraceutical and OTC products in coming quarters.
 DIVI has guided that the commercial benefit from the two major CS projects to materialize in 2HFY24.
Production from Unit-3 is expected to commence in 1QFY25.
 CIPLA has raised its EBITDA margin guidance to 24% in FY24 from earlier 23%. It expects a quarterly sales run
rate of USD220-225m in the US market. CIPLA expects to file g-Symbicort in 3QFY24.
 BIOS reduced its revenue growth guidance in the generics segment to low double digit/high single digit in FY24.
b-Adalimumab sales would improve in coming quarters due to addition in formulary list by big distributors.
 LPC expects to sustain a quarterly US sales run rate of USD200m+ going forward. In 3QFY24, sales of g-Spiriva
could be lower due to channel filing done during its launch. It has guided for 18% EBITDA margin during 2HFY24.
 ZYDUSLIF expects double-digit YoY growth in US sales and DF business to grow in line with market in FY24. It
expects to launch 1 transdermal product with exclusivity in the US over the next three years.
 APHS has guided for 24/7 GMV of INR30b/INR45b-INR50b in FY24/FY25. It expects Healthco to achieve EBITDA
breakeven in 3QFY24 (pre-ESOP), and in 4QFY24 (post-ESOP).
 LAURUS reiterated that FY24 to be the year of consolidation. The sales run rate would improve as animal health
contract, generics and biotech business are expected to scale up going forward.
 GLAND expects near-term EBITDA margin of 13-15% for Cenexi. The company plans to invest EURO60m in
Cenexi to improve its capacity and operational efficiency. It expects to submit two more complex products soon.
 TRP expects US base business to be USD32-35m per quarter. It would be launching four more products in the
Brazil market in the remaining FY24. It indicated further scope of margin improvement in the Curatio portfolio.
 MAXHEALTH plans to add ~300 beds by the end of FY24. It continues to evaluate inorganic opportunities and
something can be expected over the near term.
 MEDANTA is on track to add 125-150 beds in Patna and 100-150 beds in Lucknow by FY24 end. Construction at
its Noida site is progressing well. It plans to increase 40-50 ICU care beds in Patna in the coming quarters.
November 2023 36
Exhibit 73: US sales grew 14.6% YoY in 2QFY24 Exhibit 74: DF sales grew 8.2% YoY in 2QFY24
DF sales growth YoY (%)
Growth YoY (%)
27.2
45.1
14.6
12.3
10.5
17.2
13.8
11.5
5.1
12.5
10.4
4.0
(0.2)
9.3
8.3
8.2
8.0
7.9
0.7
0.7
0.6
(3.0)
(3.4)
6.6
(5.8)
-2.7
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
Ex-APHS/MAXHEALT/MEDANTA Source: MOFSL, Company Ex-APHS/MAXHEALT/MEDANTA Source: MOFSL, Company
Exhibit 75: Aggregate EBITDA up 16% YoY to INR157b in 2QFY24 for pharma universe
Aggregate EBITDA (INRb) Aggregate EBITDA Growth (%)
180
31.4 30.3 31.3 35.0
160
23.8 30.0
25.0
15.9
140
12.6
20.0
9.9 10.8
120
15.0
114
100
3.6 2.5 3.6 10.0
0.2
80
5.0
60
40
(13.1)
(5.0)
20
129 126 114 131 134 126 117 136 138 130 149 157 (10.0)
0 (15.0)
2QFY21 3QFY21 4QFY21 1QFY22 2QFY22 3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24
Ex-APHS/MAXHEALT/MEDANTA/SOLARA Source: MOFSL, Company

Exhibit 76: Aggregate PAT up 14.7% YoY in 2QFY24 for pharma companies under coverage
Aggregate PAT (INRb) Aggregate PAT Growth (%)
49.4
120 60.0
50.0
100
33.5 34.4 40.0
80
24.1
20.3 30.0
14.7
10.0 70
60 20.0
1.5 3.6 2.0 10.0
(3.3)
40
(8.5) -
(16.4)
20
81 81 70 84 89 78 71 86 81 73 87 99
(10.0)
0 (20.0)
2QFY21 3QFY21 4QFY21 1QFY22 2QFY22 3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24
Ex-APHS/MAXHEALT/MEDANTA/SOLARA Source: MOFSL, Company
November 2023 37
Infrastructure: Monsoon hurts execution; order inflows muted

 Execution remains subdued due to monsoon and a delay in appointed date/LoA: Infrastructure companies within
our coverage universe (excluding IRB) reported a 4% YoY decline in 2QFY24, which is a seasonally soft quarter for
road construction companies. KNR’s revenue grew ~11% YoY. GRIL reported an 11% YoY decline in execution as it
has yet to receive an appointed date for some of the projects. Execution is likely to be strong in 2HFY24 across our
coverage based on the strong order backlog and recent receipt of appointed dates in certain projects.
 Awarding activity muted in 2QFY24; pipeline robust: Awarding activity by agencies such as NHAI has been
subdued during 2QFY24. However, the order book of most companies remains robust. Additionally, there is a
huge tender pipeline of ~INR1t, which could lead to good order inflows in 2HFY24. In line with the slow awarding
activity and aggressive competition, especially in projects below INR10b, GRIL’s management has cut its order
inflow guidance for FY24, projecting an order inflow of INR100b for FY24 (earlier guidance at INR200b).
 Elevated input costs keep margins under check: Companies within our coverage reported a 280bp YoY drop in
EBITDA margin due to lower execution and elevated input costs in 2QFY24. Though Steel and Aluminum prices
have corrected ~20% and 31%, respectively, from their highs in Apr’22, the prices continue to remain at elevated
levels. Besides, cement prices have increased ~5% from their lows in Jul’22, mainly due to input cost pressures.
Most of the contractors, however, are expecting an improvement in margins in 2HFY24 once execution picks up.
 Companies focus on asset monetization: In FY24, NHAI plans to monetize 2,612km of highways through ToT/
InvIT/toll securitization modes. It has identified 46 national highway sections for the same. In line with this, a
majority of the companies in the sector are focusing on freeing up capital and bidding for additional projects by
selling assets through various avenues. In addition, some companies are in discussions with potential buyers
about selling stakes in BOT assets. Recently, the NHAI awarded two ToT projects and raised a total of INR66b.
 Top picks: Although 1HFY24 witnessed sluggish order inflows, the order books for most road construction
companies remain robust due to significant order inflows in the later part of FY23. Additionally, there is a robust
order pipeline, indicating growth potential for the upcoming quarters. Execution is expected to improve in
2HFY24. Companies with decent order backlogs, solid financial positions, and involvement in multiple segments
are well-positioned to benefit from project awarding in FY24. Our preferred choice in the space is KNR.
Exhibit 77: Revenue declines 4% YoY for our coverage
universe Exhibit 78: Gross margin improves on sequential basis
Infra aggregate sales (INR b) Infra aggregate gross margin (%)
33.7 29.4
32.8 31.7 28.8
30.8 28.2
25.8 26.2 27.3 25.2 27.6 27.3 27.6
24.6 27.1
26.5
25.7
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
Exhibit 80: Lower execution and operating performance hurt

Exhibit 79: EBITDA margin contracts 280bp YoY PAT margin on a YoY basis
Infra aggregate EBITDA margin (%) Infra aggregate APAT margin (%)
18.1 18.6 19.3 12.5

17.1 11.5
16.0 15.9 15.8 15.8 10.5 10.4 10.1 10.3
14.3 9.2 8.9
8.2
2QFY22
3QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
Note: Data in charts above is for our coverage universe excluding IRB
November 2023 38
Logistics: Volume growth picks up as festive demand kicks in; network expansion, technology adoption
in focus for most companies
 Economic activity picks up in 2QFY24: Logistics companies in our coverage universe, excluding APSEZ, reported
~7% revenue growth on YoY basis. After a muted show in 1QFY24, logistics activity picked up in 2QFY24 with the
onset of the festive season. Capacity utilization improved QoQ as festive season-induced demand kicked in.
Demand could have been better but the festive season was delayed by a month compared to last year (Diwali in
November instead of October). APSEZ recorded ~17% YoY growth in cargo volumes to reach 101.2 MMT (flat
QoQ). APSEZ’s market share in India stood at ~26% in Sep’23.
 Margins improve YoY as volumes ramp up: Gross margin for our coverage universe, excluding APSEZ, stood at
30.7% in 2QFY24 (up 60bp YoY/20bp QoQ). However, elevated fuel prices and high toll charges continued to
restrict margin expansion for fleet operators. There was a disconnect between the movement of ATF price and
Brent prices last year, which impacted margins for air express company like Bluedart Express Ltd (BDE). The issue has
been addressed with customers now and the impact of this disconnect is expected to be minimal ahead. EBITDA
margins for our coverage universe, excluding APSEZ, improved 140bp QoQ to 14.1%. APSEZ’s margins stood at
58.4% in 2QFY24 (down 420bp YoY, down 170bp QoQ). Margins were impacted by high operating expenses.
However, with volume ramp-up at recently acquired ports, margins are expected to improve in 2HFY24.
 Network expansion and fleet addition to boost volumes for organized players: The implementation of GST, e-
way bills and reduction of turnover limit for e-invoicing have incentivized businesses to work with organized
logistics players. Express companies are aggressively expanding their infrastructure. Digitalization in processing
and the expansion of fleet by the addition of trucks, new aircraft and ships will help organized player garner
higher volumes in the near to medium term.
 Top picks: VRLL is our preferred choice in this space.
Guidance
 VRLL: Due to the delay in the onset of the festive season by a month, logistics demand for cloth and textile
consignments was low in 2QFY24, which will drive healthy volumes in 3QFY24. Tonnage growth is projected to
be around 13% in FY24 (16% in 2HFY24). The company is looking to increase prices by 5-10% for contractual
customers in 3QFY24, which should support margins.
 APSEZ: With the completion of the Karaikal acquisition along with the newly acquired Haifa port, which
managed ~6.6 MMT in 1HFY24, the management remains optimistic about achieving the higher end of its FY24
cargo guidance of 390 MMT. In Apr-Oct’23, APSEZ has handled 240 MMT of total cargo. APSEZ’s logistics
business continues to report robust growth of more than 30% YoY.
 TRPC: TRPC recently entered into an agreement to buy two new ships for a consideration of USD34m (~INR2.7b),
which will be funded from internal accruals. The new ships would be added in CY26. The management is actively
working toward increasing the share of LTL revenue to 40% by FY25E, which will lead to margin improvement in
the freight division. It is confident to maintain a double-digit growth rate in the Supply Chain business in FY24E.
 BDE: BDE has encountered short-term difficulties, including expenses associated with adding aircraft, sluggish
industry activity, and elevated ATF prices. Nevertheless, as aircraft are put into service and with the onset of
festive demand, there is potential for volume growth to accelerate in 2HFY24. Surface express serves as a growth
driver for BDE with a significantly better growth percentage compared to air express.
 CCRI: In terms of EXIM volumes, imports have been Strong and are expected to remain steady in the remainder
of FY24, whereas exports have been weak due to geopolitical factors. Overall EXIM growth is expected to be
similar to 2QFY24. Additionally, domestic volumes are expected to register high double-digit growth following
the commissioning of the DFC from JNPT to Dadri.
 MAHLOG: The management has been focusing on integrating the business of Rivigo with its network and lost
certain customers in 1QFY24 due to the integration exercise. MLL is now attempting to regain these lost volumes
and expects better growth ahead. The management expects losses to reduce as volumes ramp up. It expects
~5% MoM growth in volumes in 2HFY24. The management aims for a breakeven at EBITDA level by FY24 end.
November 2023 39
 TCIE: Air and rail express businesses are yielding higher margins than the surface express business. The company
aims to increase the contribution of value-added services to 25% by FY25 and 50% in the next 6-7 years. TCIE is
on track to achieve double-digit growth in FY24 and improve its margin profile. It continues to focus on
increasing its customer base, setting up new branches and developing automated sorting centers.
Exhibit 81: Sales improves YoY for our Coverage Universe Exhibit 82: Margins improve YoY with better volumes
Logistics aggregate YoY sales growth (%) MOSL universe Logistics Gross margin (%)
80.5
33.2 32.9 33.2
32.6 32.8 33.1 32.7
31.2 30.9 30.5 30.7
25.8 30.1
25.2 30.8 14.4 29.5
14.3 10.1 10.0 8.4
8.8 6.5
-0.3
-5.7
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
Exhibit 83: EBITDA margin improve sequentially
MOSL universe Logistics EBITDA margin (%)
16.4 16.3 15.9 15.6

14.9 14.9 14.5 14.9 13.9 14.1
13.6 12.7
11.0
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
Note: Data in charts above is for our coverage universe excluding APSEZ Source: Company, MOFSL
METALS: Higher volumes and lower costs support earnings for ferrous companies; mining continues to
outperform
 Volumes improve: Ferrous sales volume improved 9% QoQ and 5% YoY, driven by higher dispatches in the
domestic market and higher share of VAP. In our ferrous sector coverage, SAIL and JSTL clocked higher volumes,
whereas TATA sales volumes were down 2% QoQ and YoY at 7.1mt. Steel manufacturers have indicated a pick-
up in domestic demand, especially in 2H. JSTL has kept its FY24E sales target unchanged at 25mt and TATA has
guided for incremental volumes of 8mt from its European operations.
 ASP softens; likely to improve ahead: Ferrous companies in our coverage universe reported a 9% YoY decline in
ASP in 2QFY24 (down 11% QoQ). JSPL reported the highest sequential drop of ~11% in ASP to INR60,946/t, while
SAIL ASP was flat QoQ and YoY. JSP has guided for an improvement of 2-3% in ASP in 3QFY24, driven by
improved demand in the domestic market. TATA expects ASP to improve by INR2,000-2,200/t for its domestic
operations.
 EBITDA/t improves due to lower input costs: a) Ferrous: EBITDA/t for the ferrous sector (except for TATA) grew
in 2QFY24, aided by lower input costs and better efficiency. TATA’s EBITDA declined due to higher-than-
estimated losses in Europe (operating loss at USD155/t). However, TATA’s domestic EBITDA improved by
INR4,503/t YoY and INR198/t QoQ to INR14,006/t. All ferrous manufacturers under our coverage have guided
for an increase in coal costs in 3QFY24. b) Non-ferrous: HNDL saw an improvement in EBITDA/t in its aluminum
vertical, which grew 26% YoY to USD813/t. HNDL kept its Novelis EBITDA/t guidance of USD525/t unchanged.
November 2023 40
Capacity enhancement: a) Ferrous: TATA is doubling its existing crude steel capacity to 40mt from 21mt and the
Kalinganagar expansion is expected to be commissioned in the next six months. Incremental benefits are expected
from FY25-26 onward. Similarly, JSP is also undertaking expansion, which will augment its crude steel capacity to
15.9mt; however, the capex timelines are elongated by a few quarters and it has also raised its capex guidance by
INR70b to INR310b. JSTL expects to add incremental ~8.5mt of volumes over the next 18 months, which will take the
total domestic capacity to 37mt by FY25. b) Non-ferrous: HNDL’s Bay Minette facility is progressing as scheduled and
is expected to commence production by CY25 end. Multiple capex plans at HZ are progressing as per schedule.
 Top picks: COAL and HNDL
 Positive surprise: COAL, SAIL and JSTL
 Negative surprise: NACL
 TATA: The management expects realization in India to improve by ~INR2,000-2,200/t. However, coal cost, which
was lower in 2QFY24, is expected to increase by ~USD10/t in 3QFY24. With BF-6 expected to be operational in
3QFY24, TATA expects to clock ~8mt of sales volume in Europe.
 JSTL: JSTL has kept its production and sales targets unchanged at 26.3mt and 25mt, respectively. JSTL expects
coal cost to increase by USD30/t in 3QFY24.
 JSP: The management did not provide sales and production guidance. Though ASP is expected to improve; coal
cost is expected to increase by USD50-60/t in 3QFY24.
 HNDL: Novelis kept its near-term EBITDA/t guidance unchanged at USD450-500/t for 3QFY24. Though coal cost
is likely to increase in 3QFY24, reduction in furnace oil cost and caustic soda prices would keep CoP around
2QFY24 levels.
 HZ: The management has maintained its zinc CoP guidance at USD1,125-1,175/t and targets to clock refined
metal production in the range of 1,050-1,075kt in FY24.
 VEDL: The company is expanding its VAP portfolio at Jharsuguda and BALCO, which will increase aluminum VAP
portfolio to over 85%. The recent arbitration case in favor of VEDL will reduce the payout to the government to
USD20m per quarter in the oil and gas vertical, which will improve margins.
Exhibit 84: Domestic spot steel spreads (USD/t) contracted Exhibit 85: Coking coal (USD/t), which increased in 2QFY24,
and currently below the LTA has moderated over last few weeks
Domestic HRC -RM Spreads (USD/t) 800
800
600
650
400
500
350 200
200 0
Nov'14
Nov'15
Nov'16
Nov'17
Nov'18
Nov'19
Nov'20
Nov'21
Nov'22
Nov'23
May'15
May'16
May'17
May'18
May'19
May'20
May'21
May'22
May'23
Nov'14
Nov'15
Nov'16
Nov'17
Nov'18
Nov'19
Nov'20
Nov'21
Nov'22
Nov'23
May'15
May'16
May'17
May'18
May'19
May'20
May'21
May'22
May'23
Source: MOFSL, Steelmint
November 2023 41
Exhibit 86: HRC (INR/t) has started declining and has Exhibit 87: Rebar (INR/t) prices have fared better compared
reached Jul’23 levels to HRC and are currently trading at a premium
85,000 80,000
70,000 65,000
55,000 50,000
40,000 35,000
25,000 20,000
Nov'15
Nov'16
Nov'17
Nov'18
Nov'19
Nov'20
Nov'21
Nov'22
Nov'23
May'16
May'17
May'18
May'19
May'20
May'21
May'22
May'23
Nov'15
Nov'16
Nov'17
Nov'18
Nov'19
Nov'20
Nov'21
Nov'22
Nov'23
May'15
May'16
May'17
May'18
May'19
May'20
May'21
May'22
May'23
Source: MOFSL, Steelmint Source: MOFSL, Steelmint
Exhibit 88: Aluminum prices (USD/t) have remained range Exhibit 89: Zinc prices (USD/t) improved most in non-ferrous
bound over the last few quarters sector over last one month
4,600 4,900
3,800 4,100
3,000 3,300
2,500
2,200
1,700
1,400
Nov'19
Nov'20
Nov'21
Nov'22
Nov'23
May'19
May'20
May'21
May'22
May'23
Nov'19
Nov'20
Nov'21
Nov'22
Nov'23
May'19
May'20
May'21
May'22
May'23
Source: MOFSL, Bloomberg Source: MOFSL, Bloomberg
Exhibit 90: Copper prices (USD/t) have remained range Exhibit 91: Lead prices (USD/t) have remained range bound;
bound in 2QFY24 lead is a recession-proof base metal
12,500 2,500
10,500 2,250
8,500 2,000
6,500 1,750
1,500
4,500
Feb'21
Feb'22
Feb'23
Nov'23
Feb'19
Feb'20
Nov'19
Nov'20
Nov'21
Nov'22
May'22
May'23
Aug'23
May'19
May'20
May'21
Aug'22
Aug'19
Aug'20
Aug'21
Feb'23
Nov'22
Nov'23
Feb'19
Feb'20
Feb'21
Feb'22
Nov'21
Nov'19
Nov'20
May'23
Aug'22
Aug'23
May'19
May'20
May'21
May'22
Aug'21
Aug'19
Aug'20
Source: MOFSL, Bloomberg Source: MOFSL, Bloomberg
Exhibit 92: EBITDA/t for steel companies under our coverage (Consolidated)
EBITDA/t 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24
JSW Steel 9,597 3,052 7,963 12,158 12,340 12,341
Tata Steel 22,584 8,382 5,661 9,279 7,186 6,037
SAIL 7,297 1,746 5,007 6,247 4,245 8,132
JSPL 17,200 7,559 12,513 10,775 14,283 11,372
November 2023 42
Exhibit 93: EBITDA margin (%) for steel, non-ferrous, and mining; in the last eight quarters, mining has commanded a better
EBITDA margin within the sector
Ferrous Non-Ferrous Mining
40
30
20
10
0
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
OIL & GAS: Strong performance continues for OMCs; margins better than expected for CGDs, except for
MAHGL
 Overall performance: Revenue was below our estimate (down 8.8% YoY), mainly driven by OMCs, AGIS, GAIL,
and MRPL. Excluding OMCs, revenue was in line with our estimate (down 4.8% YoY). EBITDA was in line with our
estimate (up 84.6% YoY), but BPCL, MAHGL, MRPL, and ONGC missed our estimates. Excluding OMCs too,
EBITDA was in line with our estimate (up 28.5% YoY). PAT was also in line with our estimate (up 2.3x YoY). PAT,
excluding OMCs, was in line with our estimate too (up 18.2% YoY).
 OMCs – GRM lower than expected, marketing gross margin robust: Implied marketing gross margin (including
inventory) for OMCs declined to INR5.9/liter (from INR8.8/liter in 1QFY24), owing to higher Brent prices and
unchanged retail fuel prices during the quarter. OMCs are estimated to be earning marketing gross margin of
INR8.6 per liter on petrol, while making a loss of INR3/lit on diesel in 3QFY24 to date. Benchmark Singapore
GRMs have declined to USD3.9/bbl in 3QFY24 till date, which may adversely impact refining performance in the
upcoming quarter.
 Sustained performance in O2C segment and better upstream realization drive RIL’s performance: Reliance
Industries (RIL)’s 2QFY24 consolidated revenue grew 1% YoY to INR2,319b (in line). EBITDA reported a strong
31% YoY growth to INR410b (8% beat), aided by sustained performance in the O2C segment, better gas price
realization, and steady EBITDA growth of 13%/32% YoY in RJio/Retail during the quarter. Standalone EBITDA
came in 14% above est. at INR192b (up 63% YoY) with EBITDA/mt at USD101.9 (up 53% YoY). The beat was
driven by a strong gasoline margin as well as a rise in gas volumes in the E&P business as production at MJ field
ramped up. The downstream chemicals margin is poised for improvement due to a reduction in supply from
China, combined with an upswing in global demand for various products. RIL is expected to outperform its peers,
given that a significant portion of its focus is directed toward the domestic market, particularly in Polymer and
Polyester products.
 CGDs – margins beat estimates (except for MAHGL), volumes in line: GUJGA’s total volumes came in line with
our estimate at 9.3mmscmd, with Morbi volumes remaining flattish at ~4mmscmd. EBITDA margin at
INR5.8/scm beat our estimate of INR4.2/scm. MAHGL reported lower-than-estimated EBITDA of INR4.8b (est.
INR5.1b), mainly led by lower-than-estimated EBITDA/scm of INR14.6 (est. INR15.5). Volumes were in line with
our estimates at 3.6mmscmd. IGL’s EBITDA of INR6.6b beat our estimate, led by higher-than-estimated
EBITDA/scm at INR8.6 (est. INR8); volumes were in line with our estimates at 8.3mmscmd.
 Ratings and earnings revisions: Our ratings remained unchanged in 2QFY24. We had raised our FY24E
EBITDA/PAT by 7%/8% for HPCL and by 11/13% for IOCL on account of an increase in our GRM estimates as we
expect global refining capacity additions to trail demand growth. We had also raised IGL’s EBITDA/PAT estimates
by 3/7% for FY24 and by 13/14% for FY25 on account of higher-than-expected EBITDA/scm in 1HFY24.
November 2023 43
 Top picks: ONCG has been our top pick for CY23. The company intends to add more than 100,000 sq. km of
exploratory area each year, while also spending INR100b each year on exploration. GAIL is our top pick in the gas
space. Domestic gas demand remains strong and GAIL expects gas transmission volumes to rise up to
124mmscmd by FY24 end (vs. 107mmscmd in FY23). It also expects volumes to grow up to 132mmscmd in FY25.
 Surprises: AGIS, CSTRL, GAIL, GUJGA, HPCL, IGL, OINL and PLNG
 Misses: MRPL
 RIL: Margin is anticipated to remain high amid a tight refining system in place with planned and unplanned
shutdowns to help refiners even in the subdued demand growth scenario. The downstream chemicals margin is
poised for improvement due to a reduction in supply from China, combined with an upswing in global demand
for various products.
 OINL: The oil production guidance for FY24 stands at 3.5-3.6mmt and management targets to increase
production by 4-5% over the next 2-3 years. Exploration efforts are ongoing, and the company is committed to
maintaining a reserve replacement ratio above one.
 HPCL: The mechanical completion of Vizag refinery expansion is expected to be completed by Jan-Feb’24. Post
expansion, the refinery will have the highest diesel yield in the country and the management expects
incremental GRM of USD3-4/bbl on the commissioning of the bottom upgrade unit.
 GUJGA: Morbi volumes stood at ~4mmscmd in 2QFY24, with a peak volume potential standing at ~8-
8.5mmscmd. The company is making aggressive investments in infrastructure with an aim of promoting the
adoption of industrial gas adoption in Thane rural, Ahmedabad rural, and recently acquired areas in Rajasthan.
 IGL: Management expects that ~15% of IGL’s volume may be hit due to the implementation of the recently
approved Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme. Although the management has
kept its volume guidance unchanged at 9mmscmd as of end-FY24, the outlook for FY25 remains uncertain due to
the implementation of the aforementioned scheme.
 MAHGL: The company expects I/C PNG segments to grow at a faster pace over the next one or two years than
historical trends. This is due to the consumer friendly steps taken by the company, such as removing take-or-pay
clause and providing a discount guarantee to new customers who will offtake high volumes of gas.
Exhibit 94: Implied gross marketing margin (INR/liter)

Implied marketing margins (INR/lit) IOCL BPCL HPCL
9.3
8.9
8.7
8.7
8.4
8.2
8.0
6.7
6.6
6.5
6.1
6.0
6.0
6.0
6.0
5.9
5.9
5.9
5.8
5.8
5.8
5.7
5.3
5.3
4.9
5.0
4.5
4.4
5.0
4.8
4.4
3.1
2.1
0.7
2.7
3.8
4.5
4.1
3.6
4.3
3.4
1.1
2.9
5.2
3.0
2.7
0.7
2.2
3.7
(0.7)
(0.6)
(7.2)
(9.1)
(9.9)
1QFY20
2QFY20
3QFY20
4QFY20
1QFY21
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
November 2023 44
Exhibit 95: Reported refining margin (USD/bbl)

IOCL reported GRM BPCL reported GRM HPCL Reported GRM Sg GRM (USD/bbl)
27.5
19.2
1.3
20.6
6.6
21.2
17.9
8.3
15.3
18.5
6.6
12.9
2.4
16.8
3.4
16.7
15.9
9.7
15.3
14.1
3.2
13.3
6.1
12.6
2.8
10.6
12.5
0.8
3.3
4.1
2.6
6.6
8.6
12.0
0.4
6.2 9.8
2.5
9.6
9.1
8.2
18.5
8.3
7.4
6.5
6.4
2.2
5.8
3.5 3.8 4.0
3.5
3.3
2.7
1.6 1.8 2.0
31.8
1.2 1.2
1.5
8.0
4.7
4.1
(0.9) 0.1 6.0 7.1
(1.0)
(0.9)
(2.0)
(9.6)
1QFY20
2QFY20
3QFY20
4QFY20
1QFY21
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
Exhibit 96: Sales volume of CGDs (mmscmd)
Volumes mmscmd GUJGA IGL MAHGL
12.1
11.4 11.4 11.4
9.9 9.8 10.0 9.9 9.8
9.2 9.3 9.3 8.9 9.2 9.3
7.7 7.6 7.3
7.2
5.3 7.9 8.1 8.1 8.3 8.2 8.3
6.7 4.1 7.7
6.3 6.6 6.2 6.8
6.3
5.5
2.7 3.6
3.0 3.0 3.1 2.8 3.1 3.3 3.2 3.4 3.5 3.4 3.4 3.4
2.8 2.9 2.4
1.1 2.1
1QFY20
2QFY20
3QFY20
4QFY20
1QFY21
2QFY21
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
Exhibit 97: EBITDA/scm trend for CGDs (INR)
EBITDA/scm
16.8
14.6
13.9
12.8
12.4
12.1
11.6
9.1
10.5
10.3
7.9
8.2
9.9
7.6
9.6
9.2
8.7 8.6 7.1 8.6 8.6

7.9
8.0 8.0 7.9 7.2 5.7

8.0 6.7 6.3
6.3 6.5 6.4 6.6
3.4
8.1
7.9
7.8
9.2
3.4
7.0
6.8
8.7
5.8
5.8
5.6
5.1
4.7
4.6
2.3
4.3
4.3
4.9
2QFY22 4.0
1QFY20
2QFY20
3QFY20
4QFY20
1QFY21
2QFY21
3QFY21
4QFY21
1QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
Real Estate: The second-best quarter for our coverage universe driven by a pickup in new launches
 On track to surpass guidance: While 2Q is generally considered to be the weakest quarter in terms of
seasonality, our coverage universe has defied the trend. The universe registered its second-best quarter ever
with cumulative sales of INR223b, up 52% YoY/50% QoQ. This encouraging performance was fueled by PEPL,
which reported a pre-sales of INR71b, up 102% YoY (on a high base). This was due to the strong response
received for a large project launch in Bengaluru, which generated INR40b of bookings. Excluding PEPL, the
cumulative sales for our coverage universe rose only 37% YoY. Volume growth stood at 39% YoY and the
companies posted a 9% YoY growth in realization driven by product mix and price hikes. On a half-yearly basis,
November 2023 45
pre-sales jumped 31% YoY. With 56% of FY23 bookings already achieved in 1HFY24, companies remain on track
to exceed their FY24 guidance.
 Collections increased 22% YoY to INR142b and the collection efficiency (collection-to-presales) dropped to 64%
v/s last eight quarters average of 77% due to higher share of sales from new launches (especially for PEPL and
GPL)
 Launches picking up as expected: As highlighted in our previous notes, new project launches by our coverage
companies are gradually picking up, as most of the players currently have ~12 months of inventory. Cumulative
launches in 2QFY24 stood at 22msf (vs. 8msf in 1Q). While PEPL had a significant contribution of 13msf to the
total launches, other companies also witnessed a healthy sequential growth. The near-term project pipeline
remains strong and the traction in business development (BD) also remains healthy for LODHA and GPL. They
have already achieved 82% and 48% of their annual BD targets in 1HFY24, respectively. We expect our coverage
universe to launch more than 60msf of projects over the next two quarters.
 Improvement in project deliveries reflects in P&L performance: The aggregate revenue for our coverage
universe rose 30% YoY to INR98b (12% below our estimate). Most of the companies within our coverage
universe showed an improvement in project deliveries, which was reflected in their revenue growth numbers.
The cumulative EBITDA stood at INR28b, up 43% YoY with an EBITDA margin of 29% (vs. 26% in 1QFY24). Lower
project completions and legacy projects continued to hurt MLIFE’s P&L performance. However, there are initial
signs of improvement in Sobha’s P&L as most of the legacy projects in contractual and manufacturing businesses
have been executed.
Valuation and picks: The operational performance of our coverage universe has exceeded our expectations. We
retain our FY24 pre-sales estimates for DLF/GPL/LODHA/PEPL, and cut our estimate for OBER by 13% given the delay
in launching the Pokhran Road project in Thane. Conversely, we raise our estimates by 10%/13% for Brigade/Sobha,
following their strong 2Q performance. Post the revision in our estimates, the implied pre-sales growth of our
coverage universe stands at 29% vs. 19% post-1QFY24. We continue to see re-rating potential in the companies
which will provide further growth visibility led by strong business development through robust cash flows. We
reiterate LODHA, PEPL and GPL as our top picks.
 Positive surprises: PEPL and GPL
Company commentary:
 LODHA: The company intends to have 7-8 new launches with a development potential of 8msf and GDV of
INR120b in 2HFY24. It is confident of achieving 20% CAGR in pre-sales over the next few years. Growth in price
has been 3% in FY24YTD, which is in line with the company’s strategy to maintain price growth below wage
growth. This is a critical factor in ensuring the longevity of the current upcycle.
 OBER: OBER has a sufficient land-bank, which allows it to navigate through multiple cycles. Therefore, it does
not intend to be overly aggressive in adding new projects. Management intends to follow a prudent capital
allocation strategy by ensuring that all projects generate the desired returns. The Kolshet Road project will be
launched immediately post-Diwali and the Pokhran Road project will follow in the next quarter.
 DLF: – Key projects such as Sector 77 and DLF V are on track for launch in 3Q and 4Q, respectively. A new project
of independent floors in Panchkula, and the SCO project in Gurugram are also expected to be launched in
3QFY24. While the disclosed pipeline shows limited visibility, DLF is working three years ahead with projects
already scheduled for launch beyond FY25. This is possible because it has a vast land bank across key locations.
 GPL: Demand for housing continues to grow led by favorable microeconomic indicators and a continued
preference for large developers. The most important priority remains to launch all the recently acquired
projects, which will accelerate its bookings and earnings growth trajectory. Given the significant progress made
on BD over the last few quarters, the focus has shifted to execution. The company is confident of achieving near-
term growth targets with projects already in its portfolio.
 PEPL: Although the company is mindful of its mounting debt, it intends to seize the potential growth
opportunities. Apart from the initial capital requirements, a residential project does not require any debt.
Borrowed money, along with surplus capital from ongoing projects, is being redeployed to acquire new projects
and sustain the increased scale of the business. Given the strong pipeline of projects across key markets,
management remains confident of achieving INR200b pre-sales in FY24E.
November 2023 46
 BEL: It is gearing up to launch ~6.5msf of projects in 2H with a GDV potential of INR65b. This includes its luxury
mixed-use project at Mount Road, Chennai. BEL added 42 acres of land to its pipeline in 2Q, with a saleable area
of 7.7msf, and a GDV potential of INR76b. The majority of the land is located in Chennai and Hyderabad,
including the recently acquired land at Kokapet, Hyderabad.
 MLIFE: At the start of the year, the company targeted nine new launches. It has already launched three new
projects and remains on track to launch the remaining projects in 2H. The total GDV of these launches is INR25-
35b. The launch of two projects (including Santa Cruz redevelopment) may spill over to FY25E, but that will be
offset by the early launches of 2-3 other projects.
 Sobha is targeting to launch 6-7msf of projects in FY24, of which 1.5msf are at an advanced stage of approvals.
Overall, the company has a healthy pipeline of 15msf with a GDV of INR150b+, which is enough to drive healthy
growth in the near term. The company’s intended pre-sales growth of 15-20% will be achieved from the existing
as well as new markets.
 PHNX: While most of the current consumption growth is led by a rise in trading occupancy, it is also important to
note that there have been many new tenant entrants, which usually take 12-18 months to ramp up
consumption. PHNX is currently evaluating the right mix, which will be finalized within the next three months. It
has a development potential of over 3msf, which allows for mixed-use development with 3-4 asset classes.
Exhibit 98: Pre-sales of our coverage universe rose 52%
YoY… Exhibit 99: …with volumes witnessing 39% YoY growth
Pre-sales (INR b) Growth YoY % Sales volumes (msf) Growth YoY %
156%
191%
77% 92%
35% 53% 31% 46% 52% 74%
23% 29% 9%
3%
35% 29% 39%
24% 30% 17%
3% 3% 0% -3%
94 125 47 112 144 161 136 146 148 234 148 223 11.3 14.2 5.3 13.9 15.3 18.3 13.5 14.3 15.3 21.3 13.2 19.9
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
Exhibit 101: Expect coverage stocks to deliver 29% YoY
Exhibit 100: Collections improved 22% YoY in 2QFY24 growth in pre-sales (INRb)
Collections (INRb) Growth YoY % FY23 FY24E
145% 31%
28% 55%
3% 23% 30% 40%
57%
70 83%
55% 63%
26% 39% 35%
19% 16% 22%
127 7%
151
155
122
150
120
154
129
200
-11% 108
52
68
32
50
41
54
17
24
86
91 64 105 116 115 152 122 142
Sobha
Brigade
Properties
Oberoi Realty
DLF
Macrotech
Prestige
Lifespaces
Mahindra
Estates
Godrej
3QFY21
4QFY21
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
November 2023 47
Exhibit 102: Estimate changes for our Coverage Universe

Revenue
Old New Change
INR b FY24E FY25E FY24E FY25E FY24E FY25E
DLF 90 72 90 94 0% 30%
Godrej Properties 22 35 22 35 -1% -1%
Macrotech 113 135 107 136 -6% 1%
Oberoi Realty 46 53 43 51 -6% -3%
Prestige Estates 96 104 96 104 0% 0%
Brigade 41 47 41 47 0% 0%
Sobha 36 41 36 42 -1% 2%
Mahindra Lifespaces 6 7 3 4 -52% -39%
EBITDA
Old New Change
DLF 32 22 32 34 -1% 53%
Godrej Properties 3 8 1 7 -68% -2%
Macrotech 29 36 26 36 -13% 1%
Oberoi Realty 19 24 22 26 14% 8%
Brigade 12 15 11 15 -13% 0%
Sobha 4 7 4 6 2% -10%
Mahindra Lifespaces -1 -1 -1 -1 16% 64%
PAT
Old New Change
DLF 36 40 36 53 -1% 32%
Godrej Properties 7 12 7 12 0% 0%
Macrotech 18 23 14 24 -22% 3%
Oberoi Realty 13 16 15 18 17% 8%
Prestige Estates 9 9 10 7 10% -16%
Brigade 5 7 4 7 -28% 6%
Sobha 2 4 2 4 -23% -2%
Pre-sales
Old New Change
DLF 161 90 155 137 -4% 53%
Macrotech 154 180 154 180 0% 0%
Oberoi Realty 58 60 50 63 -13% 6%
Brigade 49 57 54 64 10% 13%
Sobha 60 68 68 75 13% 11%
Mahindra Lifespaces 24 31 24 31 0% 0%
Collections
Old New Change
DLF 82 112 73 107 -11% -4%
Macrotech 118 129 118 129 0% 0%
Oberoi Realty 44 54 42 54 -3% 2%
Brigade 43 52 39 51 -7% -1%
Sobha 44 55 49 58 11% 5%
November 2023 48
RETAIL: Shift in festive period and subdued demand impact revenue growth
Possible recovery in 3QFY24 with onset of festive period
 Revenue growth led by footprint expansion as LFL remains weak: Aggregate revenue for our coverage
companies grew 14% YoY in 2QFY24, mainly driven by footprint additions. LFL growth was impacted by
persistent demand pressure in the discretionary category and a shift in the festive period from 2QFY24 to
3QFY24. LFL across segments likely declined in low single digits or remained flat in 2Q. In the apparel space,
TRENT remained an outlier, growing 59.4% YoY to INR28.9b, driven by strong footprint additions and healthy
10% LFL growth. DMART, too, reported 18.7% YoY revenue growth, led by improved footprints and 6%
improvement in store-level thru-put, which indicated bottoming of larger size store impact. In the QSR space,
RBA’s revenue performance improved (19% YoY), with its India business reporting SSSG of 3.5%. Industry-wide
commentary and early assessments indicate a mixed recovery for the discretionary category with the onset of
festive period. TTAN is one of the few consumer companies that has been growing revenue at a strong pace
despite the high base and discretionary nature of its product segments. This underscores the superior brand
positioning and the prowess of its franchise. TTAN is on track to achieve its existing jewelry revenue guidance of
2.5x FY22 revenue by FY27, implying an impressive CAGR of 20%. With a current market share of ~7% in a sizable
~INR5t market, TTAN has significant headroom for growth.
 Weak LFL led to operating deleverage; margin profile remains weak: Subdued demand and extended EOSS
affected profitability in 2QFY24 for apparel retailers, partially offset by low raw material prices. As a result,
overall gross margins contracted by 90bp YoY to 37% in 2QFY24. However, segments like footwear and QSR saw
improved gross margins (QoQ and YoY), mainly led by stable raw material prices in 2Q. Weak LFL growth for
retailers and continued footprint addition led to high operating expenses, which resulted in lower operating
profits for companies. EBITDA margins (aggregate) contracted by 100bp YoY to 12.3%. A demand pickup in
3QFY24 and stable RM prices should further improve the margin profile in 2HFY24. TRENT’s EBITDA margins
expanded by ~120bp YoY, despite lower gross margins, supported by strong revenue growth. ABFRL, on the
other hand, continued to report a margin contraction, attributed to losses in new brands (Tasva and TMRW). In
the QSR segment, RBA saw a margin expansion of ~250bp YoY to 14%, driven by revenue growth, improved
gross margins (led by BK Café) and strong cost control measures. In footwear space, Bata/Relaxo saw margin
improvement by 390bp/280bp YoY, driven by improved RM pricing.
 Store addition supports revenues: Muted LFL growth was compensated by healthy store additions across the
segment, which supported revenue growth. TRENT, DMART, METRO and BATA maintained healthy footprint
additions. Westside/Zudio added 2/23 net stores in 2QFY24, taking the total store count to 223/411. Store
additions for METRO remained strong at 28 stores, while DMART added 9 stores. However, retailers have
indicated a slower store addition given the weak demand scenario.
 Demand to improve in 2HFY24: Industry-wide commentary on the demand situation indicated a mixed trend,
with a moderate show in Oct’23 but signs of a demand revival in the last fortnight of the month due to the onset
of the festive season. However, retailers have indicated that demand in the mass segment may remain slow,
while the premium and wedding categories have seen a pick-up. DMART has indicated that demand may remain
soft in its non-food category, which accounts for ~30% of revenues historically.
 Top picks: TRENT, METRO
 Top picks: TRENT, METRO Brands and Titan
 Surprises: TRENT, METRO
 ABFRL: The company expects healthy demand in 3QFY24 in the wedding and premium categories, while the
mass category will continue to see pressure. It has completed the acquisition of TCNS. ABFRL expects a quarterly
revenue run rate of INR20-25b with double-digit EBITDA margins (Pre-Ind AS 116). Store addition in Lifestyle is
expected to continue.
November 2023 49
 VMART: Margin impact was mainly due to a decrease in ASP and product mix. VMART expects margins to
stabilize after 3QFY24. The company expects ASPs to moderate further in 3QFY24 as it looks to regain volume
growth. VMART opened 8 stores and closed 2 stores. The management has maintained its store addition
target of 50 stores in FY24, with 14 stores already opened in 3QFY24.
 SHOP: The company posted high-single-digit SSSG during the Pujo period and expects to sustain SSSG in mid-
single digits and EBITDA margin in high-single digits. It plans to add 15-17 departmental stores, 60+ InTune
stores and 25 Beauty stores over the next two years. In-Tune stores saw healthy traction, with sales throughput
of INR14,000 per sqft and 10%+ store EBITDA margins. SHOP expects margins to settle at a high single digit in
the next 2-3 years, with incremental marketing costs.
 Metro Brands: Gross margin guidance has been maintained at 55-57%, with CBL gross margin at ~35%. It will
continue to manage growth in the online segment without diluting the brand value and by focusing on omni-
channel growth. Currently, METRO is looking to clear old inventory under CBL by FY24 end, after which it will
focus on brand positioning and acceleration of expansion.
 Vedant Fashions: Demand was subdued mainly due to a shift in wedding dates and a slowdown in
discretionary demand. VFL expects weakness in 1HFY24 to be compensated by the festive period and a higher
number of weddings in 2HFY24. 2) VFL looks to add 4-5 more stores under Twamev and one flagship store for
Mohey (2 small stores already added). It will run these stores on the pilot basis before determining the
expansion strategy.
 Campus Activewear: The management expects 3Q to be better as most of the correction happened in 2Q and
early Oct’23 saw green shoots. The company continues to drive premiumization (via D2C offline and online
both) and strengthen execution strategies in key geographies of North & Central. Campus plans to add 5-6
stores per month. It will continue to focus on ASP range of INR1,000-2,000 and UP geography (not many
organized players in UP).
 Restaurant Brands (RBA): The company cuts SSSG guidance of FY24 by 200bp to 6%; however, the gross
margin expectation of 67% and EBITDA target remain intact. The company has 46 restaurants under
construction and is on track to achieve 450+ restaurant count by 3QFY24.
 Titan: Zoya achieved ~INR1.4b revenue last year and is targeting 50% growth this year. Zoya operates eight
standalone stores, with six or seven more in the pipeline. TTAN plans to add about 15 standalone stores before
next Diwali. Diamond jewelry might lead to margin dilution over the next seven to eight months as inventory
prices influence margins.
 Jubilant FoodWorks: JUBI expects 5-6% LFL growth for Dominos in the long term; around 10-12% growth from
retail store adds will lead to ~15% revenue growth. It expects a 150-200bp increase in EBITDA margin from 21%
in 2QFY24, resulting in long-term EBITDA margin expectations of 22.5-23%. Store opening guidance remains
unchanged at 200+ for Dominos and 30+ for Popeyes.
Exhibit 103: Revenue grew 14% YoY in 2QFY24 Exhibit 104: Gross margins witnessed a contraction YoY
Aggregate revenue (INR b, LHS) YoY growth (%. RHS) Aggregate Gross Profit (INR b, LHS)
Aggregate gross margin (%)
39.5
125.6
281.5
293.1
285.1
38.1 38.2
257.9
210.2
256.1
37.9
37.5
37.0
39.3
26.0 22.4 22.7
108.6
107.5
108.6
242.9
15.9 14.4
95.9
97.1
96.6
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
November 2023 50
Exhibit 105: EBITDA margins contracted 100bp YoY in

2QFY24 Exhibit 106: Profitability for retailers remained subdued
Aggregate EBITDA (INR b, LHS) Aggregate PAT (INR b, LHS) YoY growth (%, RHS)
Aggregate EBITDA margin (%, RHS)
46.8
44.9
-19.3
-26.6
-36.9
15.4
13.9
16.1
13.3 12.9 12.3
11.9
22.4
-392.1
15.9
15.4
11.7
37.5
34.2
39.6
30.6
36.3
36.1
10.2
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
Exhibit 107: Snapshot of Retail store additions

2QFY22 3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24
Total Store count
Madura Stores 2,754 2,488 2,522 2,585 2,561 2,601 2,650 2,643 2,660
Pantaloons 347 361 377 375 396 406 431 434 439
DMART 246 263 284 294 302 306 324 327 336
Shoppers Stop 80 83 88 90 91 96 98 98 102
Westside 191 197 200 203 208 211 214 221 223
V-Mart 368 374 380 391 405 414 423 431 437
Zudio 147 177 233 247 285 326 352 388 411
Metro N.A 629 624 644 672 745 764 789 817
Bata (Incl SIS) 1,737 1,772 1,814 1,888 1,956 2,021 2,053 2,100 2,150
Store adds
Madura EBO's 374 -266 34 63 -24 40 49 -7 17
Pantaloons 5 14 16 -2 21 10 25 3 5
DMART 8 17 21 10 8 4 18 3 9
Shoppers Stop -3 3 5 2 1 5 2 - 4
Westside 7 6 3 3 5 3 3 7 2
V-Mart 86 6 6 11 14 9 9 8 6
Zudio 10 30 56 14 38 41 26 36 23
Metro - - -5 20 28 73 19 25 28
Bata 37 35 42 74 68 65 32 47 50
TECHNOLOGY: Weak 2Q performance suppresses 2HFY24 expectations; focus shifts to FY25

 Aggregate performance: The IT Services companies (MOFSL Universe) reported weak performance (although in
line) in 2QFY24, with a median revenue growth of 1.0% QoQ in CC, in an otherwise seasonally strong quarter.
Surprisingly, the FY24 revenue guidance cut (INFO, HCLT) came on the back of multi-year mega deal signings.
This indicates a challenging 2HFY24 with elongated ramp-ups and higher furloughs in 3Q. The weakness in key
verticals and geographies continued through 2QFY24 with BFSI, Consumer, Communications, and Hi-Tech
reporting muted growth. The ongoing macroeconomic challenges had an adverse impact on discretionary
spending, resulting in slower revenue conversion and creating short-term leaks.
 Tier-2 pack outpaces Tier-1: The Tier-1 companies saw a median revenue growth of 0.6% QoQ in CC while Tier-2
companies reported growth of 1.7% QoQ CC. TECHM (-2.4% QoQ CC) and Wipro (-2.0% QoQ CC) were clear
disappointments. Tier-1 faced a broader impact of the cuts in discretionary spending than Tier-2 names, which
delivered a relatively positive performance despite the cuts. On the margins front, Tier-1 companies reported
~60bp QoQ improvement while Tier-2 saw a contraction of ~10bp QoQ. The margin improvement for Tier-1 was
November 2023 51
mainly attributed to a sharp decline in headcount (down ~18k QoQ), while Tier-2 reported flat margins despite
wage hikes in 2Q for selective names.
 Strong deal TCV for Tier-1: The multi-year mega deals supported the overall TCV for Tier-1 companies, which
rose 46.7% QoQ, while the growth was weak for Tier-2 companies (down 27.4% QoQ). INFO and HCLT have
witnessed a sharp uptick (~3x and ~2x) in deal TCV sequentially; however, the meaningful pick-up in volume
from these deals is anticipated to occur only in FY25. While TCS continues to sustain a deal TCV of more than
USD10b over the last three consecutive quarters, in 2QFY24 it reported a TCV of USD11.2b (+9.8% QoQ). TCS is
benefiting disproportionately as its clients are reprioritizing cost rationalization and efficiency-driven projects for
immediate outcomes and returns, in which TCS has a major role to play. Within Tier-2, the growth was
moderated for MPHL and Coforge from the high base in 1Q, although the 1HFY24 book-to-bill has been
attractive at 1.2x and 1.5x, respectively.
 Headcount movement: The hiring activities were weak in 2Q; the net headcount reported a sharp decline of
18.1k for Tier-1, while Tier-2 saw a modest net addition of 300. The attrition rate moderated and utilization
improved further across the board in 2QFY24.
 Top picks: Despite a few Tier-2 companies outpacing Tier-1 players over the last couple of quarters, we remain
positive on Tier-1 names due to their wider range of offerings and the disproportionate benefits in a cost-focused
environment. Moreover, the current valuations of Tier-1 companies (median ~21x one-year forward P/E) with
robust payout yields (~+4% in FY25E) provide us with a sense of reassurance. We continue to prefer TCS, Infosys,
and HCLT (in that order) for their robust business models, high return ratios, and strong management teams.
 Significant Miss: HCLT (revenue growth), and TechM (revenue growth)
 Significant Surprise: Infosys, and HCLT (revenue guidance cut)
 Significant Beat: Zensar (margin)
 Major EPS upgrades/downgrades: Wipro’s FY24E and FY25E EPS were cut by 8% and 5%, respectively. Coforge’s
FY24E and FY25E EPS were cut by 9% and 1%, respectively. TEHCM’s FY24E/FY25E EPS were reduced by 2%/10%.
Guidance highlights
 TCS: It remains cautious about near-term demand amid adverse macros, while it is quite optimistic about the
long-term secular demand. The management sees definite signs of macro recovery and improvement in client
engagements over the medium term.
 INFO: It has cut its FY24 revenue growth guidance for the second consecutive quarter to 1.0-2.5% YoY CC from
1.0-3.5% YoY CC earlier. The guidance cut was attributed to delays in ramp-ups of mega deals and reductions in
discretionary spending. Despite the steep revenue guidance cut, INFO has maintained its FY24 EBIT margin
guidance at 20-22%.
 WPRO: Due to its widespread presence in the discretionary space, the conversion has been a challenge for
WPRO, as enterprises are being cautious and have reprioritized their spending. The third quarter is a seasonally
soft quarter, and the management expects the degree of impact from furloughs to be higher than the earlier
trend. This has resulted in another quarter of weak revenue growth guidance (3Q) of -1.5% to -3.5% in CC.
 HCLT: Management indicated that the slowdown in the demand was higher than expected because of reduced
discretionary spending and a shift in spending priorities towards core operations. As a result, management has
revised down the FY24 revenue growth guidance to 5.0-6.0% YoY CC from 6.0-8.0% earlier, with +4.5-5.5% in CC
for the organic Service Business. The margin guidance has remained within the range of 18-19%.
 TECHM: Management expects that the weakness in communications will continue, particularly in relation to
investments related to 5G. It expects to realize the benefits from the current restructuring of verticals and
rationalization of low-margin accounts in the medium to long term. As a result, it anticipates a decline in
revenue growth in FY24E before it becomes positive in FY25E.
 LTIM: Despite the persistent weakness in the macro environment and cautious client sentiment, the
management expressed confidence in strong growth in 2HFY24. It continues to win disproportionately and gain
market share over its peers through cost-takeout and transformation deals. The sustained deal TCV and healthy
deal pipeline give confidence to the management to deliver better performance in FY25E.
November 2023 52
Exhibit 108: Tier-1 revenue growth continued to moderate Exhibit 109: Tier-2 revenue growth continued to moderate
Tier I Revenue Growth (USD, YoY %) Tier II Revenue Growth (USD, YoY %)
20.4% 18.9%
18.4% 24.6% 25.3%
16.5% 22.2%
13.8% 20.2% 22.0%
17.8%
10.9% 12.6%
8.9% 10.1%
6.8% 7.8% 6.7%
4.4%
2.5%
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
Exhibit 110: Tier-1 margins improved, while Tier-2 margins sustained
Tier I EBIT Margin (%) Tier II EBIT Margin (%)

21.9 21.8 21.5 20.7 19.9 20.4 20.1
19.0 19.2 19.9
14.7 14.9 14.9 15.1 14.6 15.4 14.8 14.7

13.9 14.0
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
Exhibit 111: Median utilization (%) inched up 10bp QoQ in 2Q Exhibit 112: Median attrition (%) moderated further
IT Sector - Median Utilization (incl. trainees %) IT Sector - Mediam Attrition (%)
83.7% 23.8% 23.8% 23.8%
82.9% 22.7%
82.1% 21.7%
81.5% 81.8% 81.9% 20.1% 19.8%
81.1% 80.7%
17.3%
79.9% 79.7%
14.5% 14.6%
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
1QFY22
2QFY22
3QFY22
4QFY22
1QFY23
2QFY23
3QFY23
4QFY23
1QFY24
2QFY24
Figures excl. TCS and HCLT; CYL excl. from 1QFY24; LTTS excl. from Figures exclude MPHL; Source: Company, MOFSL
1QFY23; MPHL (Offshore); Source: Company, MOFSL
Exhibit 113: Upgrades/downgrades to our EPS estimates (%)

3QFY23 4QFY23 1QFY24 2QFY24
Company
FY24E FY25E FY24E FY25E FY24E FY25E FY24E FY25E
TCS -1 -1 0 0 -1 0 -1 -2
INFO 1 1 -4 -5 -4 -1 1 -1
WPRO 4 -1 -7 -4 -4 -5 -8 -5
HCLT -1 -1 -4 -3 -2 -1 -2 -3
TECHM 2 0 -5 -5 -10 -8 -2 -10
LTIM NA NA -2 -2 -4 -4 2 2
LTTS -1 -2 3 3 -3 -0 -1 -1
MPHL -4 -7 -10 -6 -2 -2 0 1
COFORGE 0 3 1 0 -10 -3 -9 -1
PSYS 3 6 6 5 -4 -1 -1 2
CYL* 2 2 5 5 1 5 -2 0
ZENT 10 5 18 16 16 7 6 -2
* Cyient DET (Service) business Source: MOFSL, Company
November 2023 53
TELECOM: Uptick in revenue with lower capex

Soft earnings growth
The telecom sector registered a sequential revenue growth of 2.4%, led by 1.3% increase in subscribers and increase
in ARPU. This was on the back of 4G-mix led improvement coupled with higher number of days. Telecom companies
continue to witness steady 4G subscriber’s growth. Further, market share shift has also moderated from VIL. The
recent 5G ramp-up has not contributed meaningfully to revenue growth.
RJio/Bharti continue to gain share

RJio and Bharti continue to gain market share in subscriber base and revenue albeit at a slower pace. RJio/Bharti
added 11m/3m subscribers (2%/1% growth) against VIL’s 1m decline (1% QoQ decline). The rate of losing VIL’s
subscribers has declined in this quarter vs. average 5m decline per quarter in the last eight quarters. Companies
continue to witness consistent growth in 4G subscribers, with both RJio/Bharti gaining around 11m/8m 4G
subscribers during the quarter. In contrast, VIL’s 4G subscriber additions were more modest, totaling 1m for the
same period.
Margin profile remain robust

Incremental margin remained at a steady ~60%. Margins have improved, led by lower network operating cost even
in the aggressive rollout phase. Bharti (India Mobile) /VIL reported 10/100bp improvement in margin to 54.9%/40%,
while RJio reported flat margin to 52.3%.
Low capex due to seasonality

Bharti (India Mobile) lowered its capex to INR 78b (vs. INR93b in 1QFY24), owing to seasonal effect. It is expected
that the 2HFY24 will continue to see elevated capex, driven by the aggressive rollout of 5G and rural densification.
RJio’s capex has consistently remained substantial, reaching INR190b for 1HFY24 (vs. INR195b in 1HFY23). VIL’s
capex, on the other hand, was significantly lower than that of Bharti/RJio, primarily due to its inability to raise funds.
Bharti/VIL/Rjio net debt stood at INR2.0t/ INR2.1t/ INR1.6t
VIL’s provision continues to dent Indus margin: Indus booked a provision of INR1.3b for VIL’s doubtful debts,
bringing the total to INR56.5b. The negative FCF is attributed to substantial capex and a blockage of funds in trade
receivables, primarily associated with VIL. VIL continues to pay monthly payments until Oct’23, and the company is
developing a new plan to address and settle the outstanding dues from the past.
TCOM: Data segment, the key growth driver, reported a weak 2% sequential drop in EBITDA, primarily due to client
churn in its key vertical, CPAAS. WC too surged due to VIL’s high receivables.
 Top picks: Bharti
 Positive surprise: Bharti, VIL
 Bharti: a) Capex is expected to moderate in the coming years as most of the capex are expected to peak out in
FY24. However, the company may allocate funds for spectrum renewal in the next fiscal period. The elevated
radio capex is attributed to the deployment of 5G and the establishment of new 4G sites, b) the company has
disbursed a substantial portion of the 2015 spectrum charge, carrying a 10% coupon rate. The remaining
outstanding balance stands at INR100b. Incremental FCF will be utilized for spectrum repayment and dividends.
 VIL: a) The full effect of the tariff change (taken hike in Aug’23) will be reflected in 3QFY24. b) 5G capex is heavily
reliant on funding; at the moment, they are concentrating on equity investments, including the INR20b
promoter funding and will eventually contact banks. c) There is INR71.4b debt repayment coming up until
Sept’24, out of which, INR16b is toward ATC, whose timelines are under negotiation, while the remaining is
mainly bank debt.
November 2023 54
 Tata Communication: a) Management believes short-term margin and RoCE would decrease to below 20% due
to M&A, and the increase in mix of digital portfolio. However, long-term target remains within 23-25%. b) Cash
capex would be higher than accrued capex. The organic capex is likely to remain within the guidance range of
USD250-300m.
 Indus Tower: Order book is healthy and expects to remain even stronger than the current quarter in the next
couple of quarters. Hence the capex is expected to remain elevated.
Exhibit 114: Operator-wise active subscriber market share

(%) Exhibit 115: Operator-wise ARPU (INR)
RJio Bharti Vi Other players Bharti (India) Vi RJio
48%
180
36% 155
24% 130
105
12%
80
0%
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
Jul-20
Oct-20
Apr-21
Jul-21
Oct-21
Apr-22
Jul-22
Oct-22
Apr-23
Jul-23
Jan-21
Jan-22
Jan-23
FY20 FY21 FY22 FY23 FY24
Exhibit 116: Wireless KPI comparison

FY21 FY22 FY23 FY24 YoY QoQ
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q (%) (%)
EOP Wireless SUBS (m)
Bharti (India) 280 294 308 321 321 323 323 326 327 328 332 335 339 342 4.4 1.1
Idea 280 272 270 268 255 253 247 244 240 234 229 226 221 220 -6.2 -0.7
RJio 398 406 411 426 441 430 421 410 420 428 433 439 449 460 7.5 2.5
Avg. Wireless Subs (m)
Bharti (India) 282 287 301 315 321 322 323 324 327 328 330 334 337 340 3.9 1.0
Idea 285 276 271 269 262 254 250 246 242 237 232 227 224 221 -7.1 -1.4
RJio 393 402 408 419 433 435 425 416 415 424 430 436 444 454 7.2 2.3
ARPU (INR/month)
Bharti (India) 157 162 166 145 146 153 163 178 183 190 193 193 200 203 6.8 1.5
Vi 114 119 121 107 104 109 115 124 128 131 135 135 139 142 8.4 2.2
RJio 140 145 151 138 138 144 152 168 176 177 178 179 181 182 2.5 0.7
MOU/Sub (min)
Bharti (India) 994 1,005 1,027 1,053 1,044 1,053 1,061 1,081 1,104 1,082 1,094 1,122 1,138 1,123 3.8 -1.3
Idea 678 673 673 657 641 630 620 610 620 599 613 623 627 613 2.3 -2.2
RJio 756 773 796 820 815 835 901 962 1004 968 984 1001 1006 976 0.9 -3.0
Wireless traffic (B min)
Bharti (India) 820 861 925 997 1,002 1,020 1,030 1,051 1,079 1,063 1,082 1,124 1,149 1,148 8.0 -0.1
Idea 579 555 547 529 503 480 465 449 450 427 426 425 421 406 -4.9 -3.6
RJio 891 932 975 1030 1060 1090 1150 1200 1250 1230 1270 1310 1340 1330 8.1 -0.7
Data usage/Sub (Gb)
Bharti (India) 16.7 16.4 16.8 16.8 18.9 19.1 18.7 19.2 19.9 20.8 20.8 20.8 21.6 22.2 7.0 2.8
Idea 11.0 10.6 10.9 11.7 13.3 13.5 12.8 12.9 13.3 14.1 14.2 14.2 14.7 14.9 6.2 1.6
RJio 12.0 11.8 13.0 13.3 15.6 17.6 18.3 19.7 20.8 22.2 22.5 23.2 24.9 26.6 20.1 6.9
Data traffic (B Gb)
Bharti (India) 7.2 7.6 8.5 9.2 10.8 11.3 11.3 11.8 12.6 13.5 13.9 14.2 15.3 16.1 19.6 5.6
Idea 4.5 4.3 4.5 4.9 5.5 5.5 5.2 5.2 5.4 5.7 5.8 5.8 6.0 6.1 7.0 1.9
RJio 14.2 14.2 15.9 16.7 20.3 23.0 23.4 24.6 25.9 28.2 29.0 30.3 33.2 36.3 28.7 9.3
November 2023 55
ANNEXURE: MOFSL UNIVERSE (ACTUAL V/S EXPECTATIONS)

Sales (INR m) EBITDA (INR m) PAT (INR m)
Gr (%) Var. over Gr (%) Var. over Gr (%) Var. over
Sep-23 YoY QoQ Exp. (%) Sep-23 YoY QoQ Exp. (%) Sep-23 YoY QoQ Exp. (%)
Automobiles 27,59,729 21.0 5.0 0.2 3,71,484 62.6 8.7 3.9 2,04,836 112.2 14.6 13.5
Amara Raja Energy 28,108 4.1 1.5 -1.8 3,870 7.4 9.5 1.7 2,143 6.0 11.3 2.3
Apollo Tyres 62,797 5.4 0.6 -0.9 11,599 62.9 10.3 7.4 4,826 169.0 18.9 7.7
Ashok Leyland 96,380 16.6 17.7 -2.8 10,798 101.0 31.6 -1.0 5,769 197.5 0.0 0.6
Bajaj Auto 1,07,773 5.6 4.5 0.9 21,329 21.3 9.2 4.0 18,361 20.0 10.3 5.4
Balkrishna Inds 22,468 -19.9 6.2 3.9 5,480 -2.8 12.7 6.5 3,350 -17.1 7.2 11.7
Bharat Forge 22,494 20.7 5.7 -1.5 6,163 36.3 11.4 0.6 3,476 29.4 11.6 -3.6
Bosch 41,301 12.8 -0.7 -4.4 4,913 14.0 5.0 -12.6 4,023 8.0 -1.6 -10.7
CEAT 30,533 5.5 4.0 -2.3 4,561 124.5 17.8 9.3 2,080 745.0 43.8 27.3
CIE Automotive 22,794 2.2 -1.8 -7.6 3,454 17.7 -6.8 -10.2 1,867 11.4 -12.6 -17.9
Craftsman Auto 11,791 52.9 13.6 1.4 2,375 39.6 10.9 -5.1 945 56.0 26.9 -4.8
Eicher Motors 41,145 16.9 3.2 0.8 10,872 32.3 6.5 4.0 10,163 54.7 10.7 10.5
Endurance Tech. 25,450 7.8 3.9 -1.6 3,183 17.2 -0.9 -8.3 1,546 17.5 -5.5 -14.0
Escorts Kubota 20,462 8.6 -12.1 0.5 2,633 72.4 -19.5 -3.5 2,350 64.9 -16.9 2.4
Exide Inds. 41,067 10.4 0.8 0.4 4,831 17.1 11.8 5.9 2,870 16.6 18.6 6.1
Hero Motocorp 94,454 4.1 7.7 2.1 13,283 27.9 10.1 4.6 10,538 47.2 11.5 12.6
Mahindra & Mahindra 2,43,099 15.7 1.1 -2.3 30,660 22.8 -5.2 -4.2 34,519 47.6 24.4 22.7
Maruti Suzuki 3,70,621 23.8 14.6 -1.5 47,842 72.8 60.4 14.6 37,165 80.3 49.6 19.8
Motherson Wiring 21,046 14.7 13.2 1.1 2,481 37.2 27.8 -6.2 1,559 33.9 26.6 -9.1
MRF 60,876 6.4 -3.7 -5.0 11,286 141.5 1.3 0.6 5,719 361.3 -1.6 -1.0
Samvardhana Motherson 2,34,738 28.5 4.5 8.6 18,888 34.6 -1.9 0.8 4,509 43.0 -25.0 -24.0
Sona BLW Precis. 7,908 20.3 8.0 3.2 2,233 34.8 9.8 6.3 1,286 39.0 12.6 9.6
Tata Motors 10,51,282 32.1 2.8 0.6 1,37,239 121.5 1.2 5.4 38,592 LP 3.6 33.7
Tube Investments 19,696 3.3 10.6 1.1 2,514 0.1 16.4 2.9 1,814 13.2 22.9 9.0
TVS Motor 81,446 12.8 12.8 -0.3 8,998 22.2 17.8 -0.4 5,366 31.7 14.7 4.0
Cement 4,87,568 11.6 -8.1 0.5 73,051 54.8 -11.2 1.7 40,687 96.7 -1.5 14.6
ACC 44,347 11.2 -14.7 -4.7 5,484 3,456.3 -28.7 -19.1 3,843 LP -17.2 -3.2
Ambuja Cements 39,698 8.0 -16.1 -6.0 7,734 147.1 -18.5 -4.3 6,438 328.5 -0.2 22.1
Birla Corporation 22,858 14.3 -5.1 3.4 2,889 207.4 -3.0 5.5 586 LP -1.9 21.2
Dalmia Bharat 31,490 6.0 -13.1 -6.9 5,890 55.4 -3.4 1.5 1,190 325.0 -8.5 28.3
Grasim Industries 64,420 -4.5 3.3 -2.4 5,936 -37.9 -11.8 -8.5 7,947 -22.9 123.7 22.3
India Cements 12,221 -2.6 -12.3 -2.6 81 LP 61.4 -68.1 -814 Loss Loss Loss
J K Cements 27,528 23.1 -0.4 4.2 4,670 48.8 14.5 14.3 1,797 59.8 44.8 48.5
JK Lakshmi Cem. 15,745 14.6 -9.0 5.5 2,173 32.5 10.7 20.0 959 55.2 20.2 26.8
Ramco Cements 23,293 30.5 3.9 13.7 3,986 116.9 16.7 25.3 1,013 783.2 28.4 73.2
Shree Cement 45,846 21.3 -8.3 3.8 8,701 66.3 -6.7 2.8 4,913 159.1 -15.5 14.3
Ultratech Cement 1,60,121 15.3 -9.7 2.7 25,509 36.7 -16.3 5.6 12,815 69.6 -24.1 5.7
Chemicals-Specialty 62,307 -17.4 -1.7 -2.6 10,631 -19.4 -2.9 -4.1 7,041 -21.8 -3.3 -3.1
Alkyl Amines 3,522 -13.9 -14.1 -14.3 483 -40.6 -34.7 -33.3 272 -48.0 -45.3 -44.5
Atul 11,937 -19.7 1.0 16.1 1,552 -29.5 -14.9 -5.8 912 -38.4 -10.6 -9.8
Clean Science 1,811 -26.8 -3.7 -24.2 748 -23.2 -1.7 -23.2 522 -23.2 -11.5 -24.5
Deepak Nitrite 17,781 -9.4 0.5 -8.3 3,023 11.6 44.1 28.6 2,051 17.5 36.8 43.6
Fine Organic 4,717 -43.0 -11.4 4.7 1,044 -51.2 -31.3 -3.6 794 -51.6 -30.5 -6.1
Galaxy Surfactants 9,831 -20.5 4.4 -2.1 1,249 -5.2 1.4 -4.9 774 -7.7 3.0 -7.1
Navin Fluorine 4,718 12.5 -3.9 -11.0 983 4.8 -13.9 -28.9 606 4.8 -1.5 -28.1
NOCIL 3,509 -9.9 -11.5 2.9 441 -28.3 -18.9 1.4 269 -25.2 -20.0 22.2
Vinati Organics 4,481 -20.9 4.0 -0.7 1,108 -25.4 1.7 -5.8 842 -27.4 1.1 -7.1
Consumer 8,01,000 4.4 -0.1 -1.8 1,96,356 13.7 -2.3 -0.3 1,43,510 17.5 -1.0 2.3
Asian Paints 84,786 0.2 -7.7 -6.7 17,162 39.8 -19.1 -4.8 12,324 53.3 -21.7 3.0
Britannia 44,329 1.2 10.5 -4.5 8,724 22.6 26.6 5.6 5,875 19.8 29.9 4.0
Colgate 14,711 6.0 11.1 -0.9 4,821 18.2 15.3 3.9 3,401 22.3 16.0 6.2
Dabur 32,038 7.3 2.3 0.2 6,969 16.0 15.2 13.3 5,621 14.7 18.4 15.5
Emami 8,649 6.3 4.7 -2.2 2,337 19.6 23.0 -5.3 2,034 -0.1 27.2 -7.8
Godrej Consumer 36,020 6.2 4.4 -1.0 7,234 26.0 6.1 -0.1 4,453 16.7 11.2 -9.3
Hind. Unilever 1,52,760 3.6 0.8 -1.1 36,940 9.4 4.9 0.1 26,680 12.1 6.7 1.9
Indigo Paints 2,790 15.0 -3.3 -3.8 421 24.8 -14.2 -17.5 253 22.1 -18.4 -21.0
November 2023 56

ITC 1,65,501 2.6 4.6 -1.5 60,416 3.0 -3.3 -3.6 49,270 10.3 0.5 1.3
Jyothy Labs 7,323 11.1 6.6 -0.8 1,354 68.3 15.3 8.5 1,040 78.2 19.2 15.8
Marico 24,760 -0.8 0.0 2.1 4,970 14.8 -13.4 1.9 3,530 17.3 -17.3 4.8
Nestle 50,368 9.5 8.1 -3.0 12,287 21.6 16.0 2.5 8,055 20.7 14.8 1.1
P&G Hygiene 11,384 9.2 33.5 -5.9 2,849 33.1 32.6 -4.6 2,107 36.4 39.3 -3.4
Page Industries 11,251 -8.4 -8.7 -8.0 2,335 -1.8 -3.4 -2.5 1,503 -7.3 -5.1 -4.9
Pidilite Inds. 30,760 2.2 -6.1 -4.3 6,797 36.0 -3.9 -2.7 4,599 37.4 -3.1 -1.0
Tata Consumer 37,338 11.0 -0.2 0.0 5,371 23.8 -1.5 0.4 3,492 42.8 9.0 2.1
United Breweries 18,880 12.4 -16.9 8.9 1,846 -15.8 -17.1 5.4 1,076 -19.8 -20.9 10.5
United Spirits 28,647 -1.4 31.9 2.7 4,701 6.3 22.1 23.1 3,183 20.4 26.8 33.8
Varun Beverages 38,705 21.8 -31.0 1.4 8,821 26.2 -41.6 0.8 5,015 31.6 -49.5 3.5
Financials 25,59,552 18.6 10.1 0.3 13,90,599 16.3 0.7 -0.2 8,51,743 32.9 4.6 5.2
Banks-Private 8,30,932 24.2 6.3 -0.4 6,19,623 22.6 6.6 0.2 4,15,438 35.6 12.6 4.5
AU Small Finance 12,490 15.3 0.2 -4.1 6,477 29.9 18.6 9.5 4,018 17.3 3.9 -0.5
Axis Bank 1,23,146 18.9 3.0 2.8 86,319 11.9 -2.1 -1.2 58,636 10.0 1.1 -1.1
Bandhan Bank 24,434 11.4 -1.9 -2.7 15,834 2.0 1.4 -6.6 7,212 244.6 0.0 -4.1
DCB Bank 4,757 15.7 1.1 -1.0 2,105 15.3 0.9 -3.8 1,268 12.8 -0.1 -2.4
Equitas Small Fin. 7,656 25.6 3.0 -0.3 3,302 36.3 5.8 3.5 1,982 70.2 3.6 3.2
Federal Bank 20,564 16.7 7.2 1.4 13,245 9.3 1.7 0.9 9,538 35.5 11.7 13.8
HDFC Bank 2,73,852 30.3 16.0 -2.5 2,26,939 30.5 20.9 -0.4 1,59,761 50.6 33.7 8.1
ICICI Bank 1,83,079 23.8 0.4 -0.1 1,42,293 21.8 0.6 1.5 1,02,610 35.8 6.4 6.2
IDFC First Bank 39,502 31.6 5.5 0.4 15,103 29.2 0.7 -4.4 7,513 35.2 -1.8 -4.4
IndusInd Bank 50,767 18.0 4.3 0.3 39,087 10.3 2.0 -1.8 22,021 22.0 3.7 -2.0
Kotak Mahindra Bank 62,966 23.5 1.0 -0.1 46,101 29.2 -6.9 5.6 31,910 23.6 -7.6 3.9
RBL Bank 14,750 25.6 3.7 12.5 7,310 42.7 12.9 8.9 2,941 45.9 2.1 -3.7
SBI Cards 12,969 16.1 5.2 -0.1 15,510 23.9 2.4 0.2 6,030 14.7 1.6 -7.0
Banks-PSU 8,40,228 13.5 1.7 1.6 5,27,919 5.9 -9.0 -1.6 2,94,443 30.4 -4.1 8.5
Bank of Baroda 1,08,307 6.4 -1.5 -2.6 80,197 33.0 2.5 12.6 42,529 28.4 4.5 6.2
Canara Bank 89,030 19.8 2.7 1.1 76,156 10.3 0.2 0.1 36,061 42.8 2.0 2.3
Indian Bank 57,402 22.5 0.6 -0.5 43,027 18.6 4.1 1.0 19,878 62.2 16.3 2.7
Punjab National Bank 99,229 20.0 4.4 2.5 62,164 11.7 4.2 -0.9 17,561 327.0 39.9 28.2
State Bank 3,95,000 12.3 1.5 2.8 1,94,166 -8.1 -23.2 -10.0 1,43,300 8.0 -15.1 7.4
Union Bank 91,261 9.9 3.2 2.3 72,208 9.8 0.6 6.0 35,114 90.0 8.5 18.9
Insurance 5,96,789 14.3 34.4 -1.3 30,597 7.8 53.7 -3.6 17,328 14.7 -2.9 4.1
HDFC Life Insur. 1,49,403 12.5 28.0 -1.6 8,010 4.0 31.3 -3.4 3,768 15.5 -9.3 1.0
ICICI Lombard 43,061 12.2 10.8 5.1 -1,460 Loss Loss Loss 4,493 -2.9 15.1 37.4
ICICI Pru Life 1,04,259 5.4 41.4 0.3 5,770 -7.1 31.7 -8.1 2,443 22.4 18.0 -0.3
Max Financial 66,253 14.2 36.0 -1.6 4,160 11.5 68.4 -15.5 1,570 196.2 52.4 36.3
SBI Life Insurance 2,01,758 21.4 48.8 -3.1 14,900 20.2 71.3 1.7 3,802 0.9 -0.2 -9.6
Star Health 32,056 14.7 5.3 -1.3 -784 Loss PL Loss 1,253 34.6 -56.5 -31.9
NBFC - Lending 2,60,550 28.1 5.2 1.3 1,98,088 29.8 4.6 1.6 1,13,563 34.0 1.7 -1.0
AAVAS Financiers 2,223 18.4 -1.7 -5.0 1,631 17.0 11.4 6.3 1,217 13.9 10.9 4.6
Bajaj Finance 71,970 30.0 7.1 0.0 58,347 30.0 5.2 -0.9 35,507 27.7 3.3 -2.7
Can Fin Homes 3,168 26.1 11.1 7.4 2,702 25.0 9.1 6.1 1,581 11.5 -13.8 0.3
Chola. Inv & Fin. 20,153 35.4 9.4 -0.6 14,206 37.1 6.0 0.7 7,625 35.3 5.0 1.1
CreditAccess 7,635 53.3 6.0 3.2 5,626 68.1 3.5 8.3 3,470 96.6 -0.4 5.2
Fusion Micro 3,058 26.1 3.5 -2.0 2,418 29.1 2.7 1.1 1,257 32.2 4.3 0.5
Home First Fin. 1,321 30.1 6.0 3.9 1,044 40.9 6.9 5.9 743 36.9 7.5 2.6
L&T Fin.Holdings 18,436 11.9 5.2 8.2 12,974 9.1 5.1 2.4 5,942 46.5 12.0 7.1
LIC Housing Fin 21,066 81.2 -4.7 3.2 18,993 101.1 -5.5 5.0 11,881 289.6 -10.2 4.2
M & M Financial 15,870 9.6 0.2 -4.7 9,428 9.2 -5.7 -9.9 2,352 -47.5 -33.3 -43.8
MAS Financial 1,520 27.6 10.7 2.1 1,036 33.6 9.5 2.8 600 22.3 4.8 -1.4
Manappuram Finance 13,543 25.5 5.2 0.4 8,664 36.8 8.0 9.6 5,607 36.9 12.6 7.7
Muthoot Finance 18,584 18.2 -1.9 -5.6 13,422 16.9 -4.2 -6.4 9,910 14.3 1.6 -5.9
PNB Housing 6,456 1.9 4.2 1.3 5,519 -5.4 8.8 0.8 3,830 45.8 10.3 2.5
Poonawalla Fincorp 4,746 73.3 12.7 2.2 3,356 167.0 14.1 0.7 2,300 76.7 14.9 -0.2
Repco Home Fin 1,695 23.6 9.6 7.5 1,338 17.3 7.3 4.1 981 37.9 10.1 6.9
Shriram Finance 45,947 21.6 9.4 5.7 34,808 16.3 11.3 6.5 17,508 12.6 4.5 3.0
November 2023 57

Spandana Sphoorty 3,159 70.6 7.7 2.1 2,576 134.1 36.2 27.5 1,252 126.9 4.8 5.6
NBFC - Non Lending 31,053 36.7 25.1 13.2 14,371 28.0 36.8 19.1 10,972 25.8 26.3 18.4
360 ONE WAM 4,270 11.6 5.2 -0.8 2,130 4.9 8.1 -7.4 1,862 6.8 0.2 2.8
Angel One 6,747 48.0 29.8 0.9 4,072 42.5 37.2 7.8 3,037 42.1 37.5 7.2
BSE 3,144 59.0 46.0 40.6 1,429 141.9 99.6 75.3 1,191 149.7 23.9 74.3
Cams Services 2,751 13.5 5.3 -1.3 1,221 15.1 11.0 -0.2 838 16.2 10.7 -1.1
ICICI Securities 12,490 44.3 33.7 27.6 5,693 41.0 56.2 39.2 4,235 41.0 56.4 37.7
MCX 1,651 29.6 13.3 2.0 -173 PL PL Loss -191 PL PL PL
Healthcare 7,69,010 14.3 5.0 2.2 1,73,189 17.6 7.9 5.9 1,05,929 15.0 12.4 8.0
Ajanta Pharma 10,284 9.6 0.7 -1.4 2,907 40.9 3.3 5.9 1,862 13.9 -7.2 -3.7
Alembic Pharma 15,949 8.1 7.3 3.8 2,083 -10.5 4.8 -6.5 1,371 -7.1 13.6 -4.0
Alkem Lab 34,402 11.7 15.9 3.5 7,467 64.5 91.9 40.4 6,752 104.1 135.5 70.3
Apollo Hospitals 48,469 14.0 9.7 5.5 6,275 11.0 23.3 12.9 2,317 13.6 39.0 4.1
Aurobindo Pharma 72,194 25.8 5.4 4.5 14,032 33.4 21.9 17.4 7,780 17.2 31.1 22.9
Biocon 34,623 49.2 1.2 -2.0 7,413 57.4 4.0 -7.1 1,446 -16.2 44.6 -1.0
Cipla 66,782 14.6 5.5 3.6 17,338 24.8 16.1 11.1 11,740 37.7 17.9 17.6
Divis Labs 19,090 2.9 7.4 -1.3 4,990 -19.7 -1.0 -11.6 3,547 -24.4 -0.6 -17.5
Dr Reddy’ s Labs 68,802 9.1 2.1 3.1 19,971 10.7 -2.3 10.1 13,279 16.5 -2.7 13.8
ERIS Lifescience 5,053 9.7 8.3 0.7 1,811 19.6 6.7 -2.2 1,234 2.3 30.2 10.3
Gland Pharma 13,734 31.5 13.6 3.4 3,241 5.3 10.2 1.6 1,941 -22.7 0.0 -9.6
Glenmark Pharma 35,879 9.4 5.5 1.4 6,733 27.7 6.7 0.7 2,464 34.6 6.6 -2.6
Global Health 8,439 24.3 9.2 5.3 2,185 38.3 18.5 12.7 1,252 46.1 22.7 11.4
Granules India 11,895 3.4 20.7 12.0 2,130 -12.3 34.9 15.3 1,021 -29.6 61.3 14.2
GSK Pharma 9,570 4.4 25.6 -0.2 2,895 12.7 101.1 15.7 2,175 12.5 89.2 8.8
Ipca Labs. 20,340 27.0 28.1 15.5 3,606 32.4 22.6 -0.1 1,690 -9.2 9.8 -17.5
Laurus Labs 12,245 -22.3 3.6 -6.8 1,879 -58.1 12.7 -16.9 370 -84.2 37.9 -49.4
Lupin 50,385 21.5 9.3 4.3 9,232 112.6 41.8 21.0 4,940 319.9 73.0 48.6
Max Healthcare 17,190 16.8 6.0 4.3 4,840 20.8 12.8 9.2 3,530 24.5 15.5 8.9
Piramal Pharma 19,114 11.1 9.3 -0.5 2,656 53.9 100.8 19.8 50 LP LP -82.0
Solara Active Pharma 4,252 25.7 20.7 14.2 376 36.5 96.8 26.4 -120 Loss Loss Loss
Sun Pharma 1,20,031 11.0 1.8 -0.1 30,242 -1.0 -4.7 -0.1 24,048 -3.4 5.3 1.5
Torrent Pharma 26,600 16.1 2.7 0.9 8,250 21.5 4.3 0.9 3,860 23.7 2.1 -8.7
Zydus Lifesciences 43,688 9.1 -15.0 -4.7 10,639 32.6 -30.6 -7.2 7,380 45.7 -34.3 -3.2
Infrastructure 42,602 7.4 -9.7 -3.2 11,546 3.7 -8.8 -1.9 3,189 -10.7 -29.5 -11.8
G R Infraproject 15,738 -11.4 -26.9 -20.1 1,937 -25.5 -38.5 -31.7 1,233 -25.0 -40.7 -31.3
IRB Infra 17,450 29.9 6.8 13.9 7,946 19.5 2.2 8.7 958 12.2 -28.4 2.0
KNR Constructions 9,415 11.1 1.3 4.9 1,663 -12.0 -4.0 2.9 999 -7.2 -9.4 13.1
Logistics 69,025 5.9 8.2 0.1 9,640 -0.6 17.5 3.7 5,551 1.3 25.0 7.4
Blue Dart Express 13,245 -0.1 7.0 -2.7 1,305 -19.8 15.1 -8.7 713 -22.5 19.3 -12.8
Concor 21,904 11.1 14.1 5.9 5,372 7.7 37.2 22.2 3,577 18.1 46.5 30.7
Mahindra Logistics 13,648 2.9 5.5 -3.1 536 -20.7 -19.6 -25.4 -159 PL Loss PL
TCI Express 3,200 3.3 5.0 -2.9 505 -2.0 8.8 -5.2 356 -5.8 10.1 -4.6
Transport Corp. 9,935 6.6 4.6 0.6 1,004 4.6 -0.4 -7.7 870 20.3 5.7 6.3
VRL Logistics 7,093 8.4 5.2 -3.9 918 -1.3 -9.9 -18.7 194 -36.7 -42.7 -50.6
Media 54,557 40.7 18.4 11.7 14,766 70.3 44.4 30.9 8,362 79.9 42.1 35.3
PVR Inox 19,999 88.7 53.3 4.7 4,276 LP 429.2 14.2 2,074 LP LP 34.6
Sun TV 10,180 27.8 -22.8 22.9 7,162 36.5 -8.9 33.8 4,562 13.9 -21.7 27.1
Zee Entertainment 24,378 20.6 22.9 13.7 3,328 -4.3 114.8 52.3 1,726 21.0 248.1 64.3
Metals 27,72,060 -0.7 0.0 5.6 4,42,646 20.5 -3.2 16.3 1,92,703 39.5 -4.2 30.9
Coal India 3,27,764 9.8 -8.9 3.2 88,936 10.9 -20.3 54.3 67,998 12.5 -14.7 77.7
Hindalco 5,41,690 -3.6 2.2 13.4 56,120 4.7 -1.8 3.2 21,639 -1.9 -12.3 -4.6
Hindustan Zinc 67,910 -18.5 -6.7 1.0 31,390 -28.8 -6.2 -2.5 17,290 -35.5 -12.0 -2.2
JSPL 1,22,502 -9.4 -2.7 0.3 22,857 50.4 -13.0 0.2 13,878 102.2 -17.7 50.7
JSW Steel 4,45,840 6.7 5.6 5.5 78,860 350.1 11.9 20.1 30,660 LP 31.1 43.3
Nalco 30,434 -12.8 -4.2 -3.8 3,965 18.6 -33.3 -26.5 1,874 49.4 -43.9 -39.4
NMDC 40,140 20.6 -25.6 -1.3 11,904 39.9 -40.3 -4.0 10,251 15.7 -38.3 -1.0
SAIL 2,97,121 13.2 22.0 16.3 38,756 427.1 135.1 68.5 17,208 LP 709.8 143.7
Tata Steel 5,56,819 -7.0 -6.4 -1.4 42,678 -29.6 -17.5 0.6 7,027 -54.2 13.2 17.7
November 2023 58

Vedanta 3,41,840 -6.7 1.3 5.3 67,180 -12.7 4.6 4.0 4,880 -65.7 -43.3 -57.8
Oil & Gas 72,67,190 -8.8 -2.6 -10.0 11,37,253 84.6 -1.5 1.3 6,24,126 126.4 -0.9 2.3
Oil Ex OMCs 34,82,925 -4.8 7.6 -1.7 7,12,847 28.5 4.9 2.3 3,58,260 18.2 10.4 2.9
Aegis Logistics 12,349 -42.6 -41.2 -46.2 2,083 23.5 6.4 3.3 1,270 36.0 9.6 11.0
BPCL 10,29,856 -10.3 -8.8 -15.9 1,30,113 544.4 -17.7 -6.6 85,012 LP -19.4 -4.0
Castrol India 11,829 5.5 -11.3 -0.8 2,686 4.4 -13.3 7.0 1,944 3.9 -13.7 7.0
GAIL 3,18,226 -17.3 -1.3 -11.7 34,913 97.8 43.5 53.8 24,049 56.5 70.3 54.5
Gujarat Gas 38,454 -3.3 1.7 3.3 4,966 -22.7 28.0 32.9 2,978 -26.3 38.5 47.2
Gujarat State Petronet 4,533 17.7 15.1 5.4 4,103 22.9 21.9 11.5 5,320 69.3 132.0 83.2
HPCL 9,57,011 -11.7 -14.5 -20.5 81,163 LP -14.8 5.5 51,182 LP -17.5 13.5
Indraprastha Gas 34,585 -2.7 1.5 -2.9 6,569 24.5 2.3 5.1 5,348 28.5 22.0 24.4
IOC 17,97,398 -13.4 -9.0 -14.4 2,13,130 325.2 -3.8 1.7 1,29,673 LP -5.7 1.0
Mahanagar Gas 15,709 0.5 2.2 -3.2 4,789 89.4 -8.1 -6.8 3,385 106.4 -8.1 -3.2
MRPL 1,92,297 -21.9 -9.2 -27.3 22,428 LP 8.8 -48.8 10,593 LP 4.6 -63.3
Oil India 59,133 2.4 27.3 9.3 24,885 34.6 6.9 12.8 19,088 10.9 18.3 33.1
ONGC 3,51,630 -8.2 4.0 -2.3 1,83,598 -2.4 -5.6 -6.0 1,02,163 -20.3 2.0 1.6
Petronet LNG 1,25,320 -21.6 7.5 1.4 12,147 3.6 2.8 7.5 8,181 9.9 3.6 11.7
Reliance Inds. 23,18,860 0.8 11.7 2.9 4,09,680 31.2 7.5 8.2 1,73,940 27.0 8.6 4.9
Real Estate 98,947 29.9 9.5 -2.7 29,266 37.9 20.8 3.3 19,368 26.6 7.8 4.3
Brigade Enterpr. 13,666 55.4 109.0 34.9 3,248 50.0 85.8 19.7 1,335 103.0 246.4 30.0
DLF 13,477 3.5 -5.3 -11.1 4,624 5.9 16.7 4.1 6,219 30.3 18.2 1.3
Godrej Properties 3,430 107.8 -63.4 54.9 -617 Loss PL Loss 726 8.4 -67.7 -4.7
Macrotech Developers 17,496 -0.9 8.2 -31.2 4,161 -1.9 26.1 -37.6 2,100 -42.8 23.5 -48.9
Mahindra Lifespace 178 -74.5 -81.9 -86.6 -349 Loss Loss Loss -189 Loss Loss PL
Oberoi Realty 12,174 76.8 33.8 21.4 6,382 105.6 34.7 44.7 4,568 43.4 42.0 51.7
Phoenix Mills 8,750 34.4 7.9 13.7 5,138 34.9 4.4 13.7 2,604 40.1 8.3 34.9
Prestige Estates 22,364 56.6 33.0 5.8 5,925 60.7 12.5 13.5 1,856 397.2 -30.5 57.1
Sobha 7,412 11.1 -18.4 -13.2 754 -18.2 15.4 -5.8 149 -22.2 23.8 -40.2
Retail 4,18,424 20.3 4.5 4.0 49,816 6.8 4.7 0.6 20,892 -6.8 4.1 -3.1
Aditya Birla Fashion 32,264 4.9 1.0 -2.3 3,233 -18.5 10.6 -10.0 -1,999 PL Loss Loss
Avenue Supermarts 1,26,244 18.7 6.4 -0.1 10,050 12.7 -2.9 -5.0 6,234 14.4 -5.4 -4.9
Barbeque Nation 3,017 -2.8 -6.9 -7.7 444 -23.9 -5.1 -15.7 -119 PL Loss PL
Bata India 8,191 -1.3 -14.5 -7.2 1,817 12.9 -24.2 0.4 641 17.1 -40.0 0.3
Campus Activewear 2,587 -22.4 -26.9 -26.8 245 -43.7 -63.0 -60.0 3 -97.8 -99.0 -98.8
Devyani Intl. 8,195 9.6 -3.2 -10.5 1,588 -4.1 -8.5 -16.7 304 -54.8 -33.6 -43.8
Jubilant Foodworks 13,448 4.5 2.7 0.0 2,807 -10.2 1.6 -3.0 721 -39.5 -4.0 -15.1
Metro Brands 5,557 16.7 -4.6 3.6 1,554 5.6 -16.7 10.4 671 -13.9 -27.8 12.0
Raymond 22,534 3.9 27.2 2.6 3,146 -6.1 60.0 -0.1 1,751 7.6 107.9 -7.5
Relaxo Footwear 7,153 6.8 -3.2 -4.1 915 54.0 -14.9 4.9 442 97.0 -21.5 14.3
Restaurant Brands 4,535 23.2 7.4 -2.8 634 50.7 30.8 1.4 -93 Loss Loss Loss
Sapphire Foods 6,426 14.2 -1.8 -1.5 1,151 11.6 -5.2 6.9 152 -43.4 -38.8 19.0
Shoppers Stop 10,252 1.7 4.4 -6.5 1,598 -4.4 -7.3 -15.2 67 -66.8 -55.3 -73.5
Titan Company 1,25,290 36.7 5.3 17.0 14,110 13.2 25.4 13.0 9,150 9.6 21.0 7.6
Trent 28,907 59.4 14.0 9.9 4,609 72.3 26.0 23.0 2,897 55.9 95.4 67.0
Vedant Fashions 2,183 -11.6 -29.9 -8.1 928 -19.6 -37.4 -11.7 487 -29.4 -47.0 -15.8
V-Mart Retail 5,494 8.5 -19.0 0.1 7 -98.7 -98.7 -96.2 -641 Loss Loss Loss
Westlife Foodworld 6,147 7.4 0.0 -4.7 982 2.4 -5.7 -10.4 224 -29.1 -22.4 -35.3
Staffing 1,00,946 12.2 3.5 0.3 3,397 23.0 6.4 2.0 1,764 25.0 8.2 13.7
Quess Corp 47,483 11.1 3.2 -0.1 1,635 21.4 6.3 1.2 735 74.8 53.8 46.9
SIS 30,736 11.1 3.3 1.1 1,445 31.6 3.9 3.4 753 11.6 -15.9 -2.9
Team Lease Serv. 22,726 16.2 4.7 0.2 318 0.3 20.6 0.0 276 -12.7 7.2 0.0
Technology 18,30,134 6.0 0.9 -0.7 4,12,766 4.6 3.4 1.9 2,77,189 4.9 2.4 -1.6
Coforge 22,762 16.2 2.5 -1.2 3,473 0.7 4.7 -9.7 1,809 -10.3 -0.5 -27.0
Cyient 17,785 27.4 5.5 3.3 3,258 42.3 3.2 4.6 1,831 50.3 3.6 -1.6
HCL Technologies 2,66,720 8.0 1.4 -2.1 59,153 8.8 9.0 2.1 38,320 9.8 8.4 -1.0
Infosys 3,89,940 6.7 2.8 1.4 1,00,674 3.4 4.5 11.9 62,120 3.2 4.5 0.1
L&T Technology 23,865 19.6 3.7 -0.1 4,756 12.8 5.0 5.9 3,154 11.7 1.4 -0.1
LTIMindtree 89,054 8.2 2.3 0.3 16,313 -0.3 -0.3 3.2 11,623 -2.2 0.9 1.5
November 2023 59

Mphasis 32,765 -6.9 0.8 -1.9 5,956 -3.6 1.5 -0.9 3,920 -6.3 -1.0 -2.8
Persistent Systems 24,117 17.7 3.9 0.1 4,052 10.1 -4.2 -5.0 2,633 19.7 -5.1 -5.4
TCS 5,96,920 7.9 0.5 -1.2 1,57,100 8.3 4.9 -0.5 1,13,800 8.7 2.3 -2.0
Tech Mahindra 1,28,639 -2.0 -2.2 -1.6 14,067 -29.1 -12.1 -11.1 9,778 -25.3 2.3 8.3
Wipro 2,25,159 -0.1 -1.4 -1.1 41,656 2.0 -3.0 -5.1 26,463 -0.5 -7.8 -7.7
Zensar Tech 12,408 0.5 1.1 -0.1 2,308 119.0 0.3 14.8 1,738 206.0 11.3 37.1
Telecom 5,97,651 3.9 -0.3 -2.4 2,82,335 10.1 -0.1 -2.7 -42,622 Loss Loss Loss
Bharti Airtel 3,70,438 7.3 -1.1 -3.7 1,95,137 10.9 -0.4 -3.0 29,598 44.2 2.0 -0.7
Indus Towers 71,325 -10.5 0.8 -0.7 34,215 21.7 -1.7 -6.0 12,947 48.5 -3.9 -11.6
Tata Comm 48,725 10.0 2.1 -0.3 10,155 -10.1 -0.8 -3.8 2,212 -51.5 -41.7 -35.3
Vodafone Idea 1,07,163 1.0 0.6 0.4 42,828 4.5 3.0 2.2 -87,379 Loss Loss Loss
Others 6,67,958 1.1 -1.1 -1.3 91,212 29.3 -24.6 5.2 32,786 72.3 -50.9 24.8
APL Apollo Tubes 46,304 16.7 1.9 0.1 3,250 40.2 5.8 -1.8 2,029 35.1 4.8 -2.4
Coromandel International 69,881 -30.9 22.7 -9.3 10,587 0.2 49.3 3.9 7,569 2.2 53.2 5.5
EPL 10,016 5.6 10.0 -6.3 1,810 21.8 13.8 -7.0 505 9.3 -7.0 -31.4
Godrej Agrovet 25,709 5.1 2.4 0.4 2,014 34.0 4.4 3.3 1,053 46.7 -1.7 4.7
Havells India 39,003 6.3 -19.3 -4.9 3,734 30.1 -7.1 -4.4 2,491 33.3 -13.2 -5.8
Indiamart Inter. 2,947 22.5 4.5 -1.6 800 19.0 3.5 -3.9 694 1.5 -18.3 -1.4
Indian Hotels 14,332 16.3 -2.3 -0.6 3,548 20.7 -13.5 -7.9 1,669 48.6 -25.0 -2.9
Info Edge 5,930 11.5 1.5 2.3 2,411 31.0 6.4 14.7 2,187 30.1 9.4 19.4
Interglobe Aviation 1,49,439 19.6 -10.4 6.8 23,919 3,139.2 -53.7 111.2 1,879 LP -93.9 LP
Kajaria Ceramics 11,216 4.1 5.4 -0.9 1,797 38.9 6.2 -2.0 1,080 60.8 0.4 -6.4
Kaveri Seed 1,713 2.5 -76.7 -6.6 113 32.1 -95.9 8.1 137 158.7 -95.0 -22.6
Lemon Tree Hotel 2,272 15.5 2.2 -0.9 1,019 8.8 -2.5 -7.2 226 35.1 -3.5 -7.0
One 97 Comm. 25,190 31.6 7.6 -3.1 -2,310 Loss Loss Loss -2,920 Loss Loss Loss
P I Industries 21,169 19.6 10.8 -7.4 5,514 27.7 17.9 -4.9 4,805 43.5 25.5 8.4
SRF 31,774 -14.8 -4.8 -4.4 6,453 -19.9 -10.4 -0.3 3,199 -38.1 -16.5 -6.8
Tata Chemicals 39,980 -5.7 -5.2 -12.1 8,190 -11.0 -21.5 -21.7 3,515 -44.5 -32.8 -37.0
Trident 17,975 26.7 22.5 7.6 2,381 57.0 6.4 -5.8 880 82.4 2.4 -23.0
UPL 1,01,700 -18.7 13.5 -4.3 15,750 -43.1 -1.1 -21.5 1,063 -89.8 -73.5 -72.0
Voltas 22,928 29.7 -31.8 15.0 703 -30.3 -62.1 -30.5 367 -62.9 -71.6 -55.8
Zomato 28,480 71.4 17.9 6.2 -470 Loss Loss Loss 360 LP 1,700.0 LP
Investment in securities market are subject to market risks. Read all the related documents carefully before investing
November 2023 60
NOTES
November 2023 61
REPORT GALLERY India Strategy | Review 2QFY24
RECENT STRATEGY/THEMATIC REPORTS
November 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 be
within following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
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November 2023 63
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November 2023

Performance above expectations: BFSI and Auto perk up 2QFY24 earnings

Exhibit 2: Sector-wise 2QFY24 performance of MOFSL Universe companies (INR b)

Exhibit 3: Earnings at a glance for MOFSL and Nifty Universes

Earnings upgrade-to-downgrade ratio balanced for FY24E

2.4 2.3 6.5 7.0

Nifty companies, stood flat YoY

Mar-21 Mar-21 Mar-21

June-21 June-21 June-21

Dec-21 Dec-21 Dec-21

Mar-22 Mar-22 Mar-22

Jun-22 Jun-22 Jun-22

Sep-22 Sep-22 Sep-22

Dec-22 Dec-22 Dec-22

Mar-23 Mar-23 Mar-23

Mar-19 Sep-21 Mar-19 16.1 Mar-19

Dec-19 Dec-19 15.6 Dec-19

excluding Nifty companies

Dec-20 Dec-20 19.6 Dec-20

Mar-21 Sep-22 Mar-21 19.5 Mar-21

Mar-22 Mar-22 17.2 Mar-22

Exhibit 20: EBITDA growth YoY for MOFSL Universe,

Jun-23 Jun-23 17.6 Jun-23

Margin continues to recover

Exhibit 22: Several sectors recovered YoY in terms of operating margin

Sep-22 Jun-23 Sep-23

Exhibit 27: Metals’ PAT contribution to the MOFSL Universe

Performance highlights for Nifty constituents in 2QFY24

Exhibit 32: Nifty EBITDA margin (ex-Financials) expanded

Exhibit 34: Sectoral upgrades/downgrades for the MOFSL Universe

Exhibit 35: Nifty delivered 28% YoY profit growth in 2QFY24

Raise our FY24E Nifty EPS by 1.1%

FY24E earnings highlights: O&G, Banks and Auto drive

FY24E PAT (INR b)

Twelve-month earnings revision stable for MOFSL Universe for

NBFC - Non Lend.

Oil & Gas

Exhibit 41: Annual Sales/EBITDA/PAT estimates for MOFSL Universe

SECTOR-WISE: Highlights / Surprise / Guidance

Exhibit 42: Key operating indicators

Exhibit 43: Aggregate EBITDA margin improves QoQ due to

Source: MOFSL, Company Source: MOFSL, Company

Exhibit 45: Revised EPS Estimates (INR)

Source: Company, MOFSL Source: Company, MOFSL

Source: Company, MOFSL Source: Company, MOFSL

CHEMICALS – SPECIALTY: Weathering the destocking storm

Aggregate Revenue (INR b)

Aggregate Gross margin (%)

Exhibit 53: PAT margin for our coverage universe

CONSUMER: Sales muted; improved margins drive profitability

Exhibit 54: Quarterly volume growth

Consumer aggregate YoY PAT growth (%)

Exhibit 62: Snapshot of restructured book across Banks (%)

Exhibit 63: Raise aggregate earnings by ~1% each for FY24/FY25

FINANCIALS – NBFCs: Loan growth momentum sustained; margins bottoming out

PBT - YoY growth (%)

Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024

Source: MOFSL, Company, *MOFSL universe excl. PIEL and Indostar

Source: MOFSL, Company Source: MOFSL, Company

Exhibit 71: Asset quality snapshot

FINANCIALS – NON-LENDING: Strong performance by capital market-related stocks; GI players report

 Surprises: BSE, ANGELONE, ICICIGI

3.6 2.5 3.6 10.0