Mo Gop II Aif Q1fy23

Motilal Oswal Growth Opportunities Fund Series II
Portfolio and Sector Allocation as on 30 June 2022

%
COMPANIES
ALLOCATION Banks 30.6%
MARUTI SUZUKI INDIA LIMITED 7.4
ICICI BANK LIMITED 7.3 IT - Software 12.8%
HDFC BANK LIMITED 7.2
AXIS BANK LIMITED 7.0 Automobiles 9.7%
INFOSYS LIMITED 6.9
Construction 6.6%
STATE BANK OF INDIA LIMITED 6.8
LARSEN AND TOUBRO LIMITED 4.8 Insurance 5.7%
MAX FINANCIAL SERVICES LIMITED 4.6
PHOENIX MILLS LTD. 3.9 Power 5.0%
L AND T TECHNOLOGY SERVICES LIMITED 3.3
Pharmaceuticals &
LARSEN AND TOUBRO INFOTECH LIMITED 3.3 4.4%
Biotechnology
GLAND PHARMA LIMITED 3.1
Consumer Durables 4.1%
NTPC LIMITED 3.0
VOLTAS LIMITED 2.7 Realty 3.9%
TATA CONSULTANCY SERVICES LIMITED 2.7
EICHER MOTORS LTD. 2.3 IT - Services 3.3%
ULTRATECH CEMENT LIMITED 2.3
POWER GRID CORPORATION OF INDIA 1.9 Finance 2.6%
CHOLAMANDALAM INVESTMENT & FIN CO 1.9 Cement & Cement
2.3%
G R INFRAPROJECTS LTD 1.8 Products
DCB BANK LIMITED 1.8 Entertainment 1.7%
INOX LEISURE LTD. 1.7
MINDA CORPORATION LIMITED 1.5 Cash 1.5%
DEEPAK FERTILIZERS 1.5
Auto Components 1.5%
GUJARAT GAS LIMITED 1.2
HDFC LIFE INSURANCE COMPANY LTD 1.1 Chemicals &
1.5%
JUBILANT FOODWORKS LIMITED 0.9 Petrochemicals
JINDAL STAINLESS LIMITED 0.8 Gas 1.2%
DIVIS LABORATORIES LIMITED 0.8
MUTHOOT FINANCE LIMITED 0.7 Leisure Services 0.9%
KAJARIA CERAMICS LTD 0.7
Ferrous Metals 0.8%
SAFARI INDUSTRIES INDIA LIMITED 0.6
NATCO PHARMA LIMITED 0.5 Textiles & Apparels 0.1%
KOTAK MAHINDRA BANK LIMITED 0.5
TCNS CLOTHING CO LTD. 0.1
NAV and Performance as on 30 June 2022
Particulars NAV (Rs.) Particulars Returns %
Class B1 10.5447 Class B1 -2.6
The returns are cash flow based on an annualized return and pre tax, post fees and expenses. Past performance may or may not be sustained in future. Returns are for clients who have
adhered to the timelines. Disclaimer: The given stocks are part of portfolio of the Motilal Oswal Growth Opportunities Fund Series II as on 30 June 2022. The Stocks mentioned above
are used to explain the concept and are for illustration purpose only and should not be used for development or implementation of an investment strategy. It shall not be constitute as
an advice, an offer to sell/purchase or as an invitation or solicitation to do so for any securities. The statements made herein may include statements of future expectations and other
forward-looking statements that are based on our current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance
or events to differ materially from those expressed or implied in such statements. Returns for other classes may differ to the extent of fees.
Maruti Suzuki PORTFOLIO
WEIGHT:
7.4%
Investment Rationale
ROE FY24:
Thesis 15.9%
∙ Maruti Suzuki is one of the largest passenger car companies in the world and has
approximately 43.65 % market share in India.
∙ The company exports to 90+ countries. QoQ EPS
Growth:
Company Description 100% YoY
∙ The company’s market share is currently at an 8-year low and now plans to regain
lost market share by launching new products. TTM EPS
∙ In financial year 21-22, 8 of the top 10 bestselling passenger vehicles were from the Growth:
Maruti Suzuki’s stable. -13.3% YoY
∙ The current order book stands at 320k+ units and approximately out of which 40%
are CNG units.
PE FY24:
24.5
Key Triggers
∙ The company has recently signed an MoU for an investment of Rs 104bn through
Suzuki MotorGujarat (SMG), in Gujarat, towards BEV and battery manufacturing
capabilities.
∙ Maruti Suzuki exported 2,38,376 vehicles in FY21-22. It is the highest ever exports
in any year by the company.
ICICI Bank PORTFOLIO

WEIGHT:
7.3%
ROE FY24:
Thesis: 15.2%
• ICICI Bank has transformed itself from a corporate-focused bank to a retail bank in
the last 5 years.
• Sandeep Bakshi, the MD & CEO had laid down the clear focus mainly on achieving
QoQ EPS
superior RoEs through strong core operating performance. Growth:
54.8% YoY
Company Description:
• They are showcasing their strength as a best-in-class bank which is hard to disagree
with, even by its harshest critics who have seen this bank’s journey for the past two TTM EPS
decades. Growth:
• Building a financial super app – iMobile: 74% of the bank’s customers are digitally 26.8% YoY
active, and the bank is working towards building a financial super app.
PE FY24:
Key triggers:
14.9
• The management is identifying customer segments, offering fair and superior
propositions (partnering with FinTechs), decongesting processes, and Customer 360
are the building blocks for a superior digital banking journey.
• The bank is working with over 130 FinTechs. Banks need to understand the
importance of working in an integrated and collaborative manner
PORTFOLIO
HDFC Bank WEIGHT:
7.2%
ROE FY24:
Thesis: 16.1%
• HDFC Bank is the largest private sector bank with a loan book of ~Rs. 12 lakh
crore
• Consistent performance with +4% NIM and +15% RoE in past many years QoQ EPS
Growth:
Company Description: 20.1% YoY
• HDFC Bank is a leading private sector bank with consistent growth and operational
performance over various cycles.
TTM EPS
• The bank has maintained superior return ratios compared to its peers resulting in Growth:
premium valuations 20.1% YoY
Key triggers:
• The key driver to improve NII would be a rise in Retail disbursements. Retail PE FY24:
growth has picked up in both the Unsecured and Secured segments. 14.5
• Among segments, Auto loans, LAP, and Mortgage disbursements are showing a
healthy recovery.
PORTFOLIO
Axis Bank WEIGHT:
7.0%
ROE FY24:
Thesis: 14.1%
• Axis Bank is the third-largest private sector bank in India with a balance sheet size
of Rs. 10.5 lakh crore as of September 2021
• AXSB has spent the last few years altering the characteristics of its lending profile QoQ EPS
to capture the benefits of the lending cycle upturn and mitigate risks. Growth:
85.6% YoY
• The bank has a large footprint across India with 4679 branches. Retail and SMEs
TTM EPS
comprise ~66% of total loans Growth:
• The bank has healthy growth in SA deposits led by a deepening and premiumization 89% YoY
strategy
Key triggers:
PE FY24:
• AXSB’s margin is likely to improve in the near term on the back of an improvement 9.6
in its product mix which is expected to change in favor of retail segments and
granular liability franchise
Infosys PORTFOLIO
WEIGHT:
6.9%
ROE FY24:
31.2%
Thesis
∙ Infosys is one of the leading IT players in India catering to BFSI, retail,
communication, manufacturing, and hi-tech verticals. QoQ EPS
∙ The company provides business consulting, application development and Growth:
5.3% YoY
maintenance, and engineering services to 1,738 active clients across Banking,
Financial Services, Insurance, Retail, Manufacturing, Hi-tech, Communication, and
Energy & Utilities verticals in 50 countries. TTM EPS
Growth:
Company Description 14.9% YoY
∙ Infosys targets businesses specializing in the insurance, banking, telecom, and
manufacturing sectors.
∙ Management highlighted that the demand environment remains robust, and they are PE FY24:
21.3
witnessing a significant pipeline of large deals.
Key Triggers
∙ Infosys has been able to crack great business deals that include 6 new $100 million
clients & 5 new $200 million clients during the year.
∙ The company has its own proprietary core banking software – Finacle – that is used
by several leading banks in India, the Middle East,Africa, and Europe.
State Bank Of India PORTFOLIO

WEIGHT:
6.8%
ROE FY24:
Thesis: 14.9%
• SBI is almost immune to any liability-side risks at this juncture, given its expansive,
granular deposit base and government’s majority holding.
• SBI is in better place to curtail asset quality worries than many other large banks QoQ EPS
because of its quality of loan book. Growth:
-0.7% YoY
• The SBI group offers a wide range of banking and non-banking products and
services to its corporate and retail customers. It had over 22,000 branches and TTM EPS
58,555 automated teller machines (ATMs) Growth:
• Through its non-banking subsidiaries and joint venture (JV) companies, it offers a 41.2% YoY
wide range of financial services, such as investment banking, credit cards, insurance,
asset management, primary dealership, broking, and factoring.
PE FY24:
8.3
Key triggers:
• The bank has been able to maintain a strong control on restructured assets at 1.2%
of loans, while the special mention account (SMA) pool has declined sharply.
• With a strong retail franchise and recovery in the asset quality, particularly the
corporate book, the bank is well-positioned than its peers to deliver strong
advances and PAT growth.
Larsen & Toubro Ltd PORTFOLIO
WEIGHT:
4.8%
ROE FY24:
Thesis:
13.6%
• L&T is well-placed to benefit from a pickup in economic activity and private capex
given its financial, technical & managerial capability for sustaining and gaining market
share
QoQ EPS
Growth:
• Larsen & Toubro is an Indian multinational engaged in EPC Projects, Hi-Tech
Manufacturing, and Services. It operates in over 50 countries worldwide
• A strong, customer-focused approach and the constant quest for top-class quality TTM EPS
have enabled L&T to attain and sustain leadership in its major lines of business for Growth:
over eight decades. -26.2% YoY
Key triggers:
• L&T has indicated that the bid pipeline remains strong, with the overall pipeline for PE FY24:
16.3
the remainder of the year standing at INR6.8t (+12% YoY). The Infrastructure
sector’s prospects stood atINR5.3t, while the Hydrocarbon segment’s prospects
improved to INR1.2t
• The company has some more asset monetization opportunities to capitalize on,
including the sale of Nabha Power, a stake sale in L&T IDPL, and monetization of the
Hyderabad Metro.
Max Financial Services PORTFOLIO

WEIGHT:
4.6%
Thesis: ROE FY24:

• A strategic partnership with Axis Bank provides long-term distribution capability, 37.8%
ending uncertainty and market anxiety over the future of Max Life (MAXL) and Axis
Bank’s distribution arrangement.
• The management aims to cater to the savings, mortality, morbidity, and longevity QoQ EPS
needs of customers, thus covering the entire customer lifecycle. Growth:
100% YoY
• A diversified product portfolio and strong distribution reach have made MAXL the TTM EPS
fourth largest private life insurance player in India. Growth:
• Given the strong brand, leadership, and tailwinds on the back of financialization of -17.1% YoY
savings
Key triggers: PE FY24:

• The proprietary channel accounted for ~30% of the total APE, which, along with a 65.7
strong Bancassurance channel, continues to aid premium growth.
• Axis Bank remains a strong medium-term growth driver even as a balanced product
mix and continued focus on protection will sustain high margins.
PORTFOLIO
Phoenix Mills WEIGHT:
3.9%
ROE FY24:
Thesis: 9.8%
• Phoenix Mills (PML) is a leading retail mall developer and operator in India.
• It is into retail-led, mixed-use properties and has developed 17.5+ mn sq ft of retail,
commercial, hospitality, and residential asset class. QoQ EPS
Growth:
Company Description: L to P
• PML has an operational retail area of ~7 mn sq ft spread over nine operational malls
and developing another five malls with ~6 mn sq ft of retail space. TTM EPS
• It has a gross leasable area (GLA) of 1.6 mn sq ft in the commercial segment. It Growth:
plans to add 4.6 mn sq ft of commercial office space 100% YoY
Key triggers:
• Gradual re-opening of economies to fully operationalize its mall and hospitality PE FY24:
asset; rentals and ARR to improve 28.6
• Healthy balance sheet and strategic expansion plans to add 1 MSF of retail area
annually
• PHNX has entered into an agreement with Canada Pension Plan Investment Board
(CPPIB) in Nov’21 wherein CPPIB will cumulatively infuse Rs13.5bn for a 49%
equity stake in The Rise project at Lower Parel, Mumbai comprising of 1.0msf of
offices and 0.2msf of retail.
L & T Technology Services PORTFOLIO

WEIGHT:
Investment Rationale 3.3%
ROE FY24:
Thesis:
22.9%
• As one of the largest pure-play R&D outsourcing vendors out of India, L&T
Technology Services (LTTS) can be seen as a key beneficiary of growing tech
adoption across R&D and new product development. QoQ EPS
• More importantly, with a Digital revenue share of ~50%, it is expected to benefit Growth:
from high double-digit growth in global Digital ER&D spending. 26.3% YoY
• LTTS has one of the most diversified business mixes within its peer group, with low TTM EPS
Growth:
client concentration and five large verticals with over 10% revenue contribution.
32.6% YoY
• LTTS has consistently delivered strong growth in Digital offerings, which now
contribute ~50% of its total revenue.
• The company has developed solutions in all five key verticals, which has helped PE FY24:
position itself well in front of clients. 24.1
Key triggers:
• Digitization is driving accelerated spending in ER&D and LTTS should benefit from it
due to:
1) its strong capabilities 2) multi-vertical presence 3) solid wallet share
L & T Infotech PORTFOLIO
WEIGHT:
3.3%
Thesis: ROE FY24:

• LTI’s marquee client connects along with strong expertise in BFSI, provides good 25.4%
visibility of sustainable margins and business growth.
• LTI is likely to maintain a healthy and efficient business profile over the medium
term which is mainly led by steady revenue growth and sound operating efficiency. QoQ EPS
Growth:
• LTI is engaged in computer programming, consultancy, and related activities.
• Its self-service capabilities for AI and advanced analytics could bring the next wave
TTM EPS
of growth in the marketplace. Growth:
• The company has an established market position in key verticals and sound 20.3% YoY
operating efficiency.

• The company has made disproportionate investments in capabilities and made seven 21.9
acquisitions to date (each one to boost its capabilities).
• Ability to win large deals, presence in niche verticals, effectively my clients, add
Fortune 500 clients, and digital prowess other key drivers
PORTFOLIO
Gland Pharma WEIGHT:
3.1%
ROE FY24:
17.1%
Thesis:
• Gland Pharma (Gland) is one of the fastest-growing generic injectable-focused
companies by revenue. QoQ EPS
• The company has consistently maintained compliance with the Good Manufacturing Growth:
Practice (GMP) norms across markets. This makes it a preferred supplier for most -34.9% YoY
generic companies.
TTM EPS
Company Description: Growth:
• Gland primarily operates on a B2B model, with revenue distributed over 60 2.8% YoY
countries.
• A B2B business model together with a sharp focus on manufacturing of sterile
dosage forms (injectable and ophthalmic) allows the company to operate on a very PE FY24:
lean cost structure 25.4
Key triggers:
• The benefits of complex product launches in the US and biologics CDMO (contract
development and manufacturing organization) will provide a further upside
• Gland expects to commercialize all these pending products in the US market over
the next 3-4 years, which could drive ~16% Cagr in Gland’s US revenue over FY21-
25ii;
NTPC Limited PORTFOLIO
WEIGHT:
3.0%
ROE FY24:
12.4%
Thesis:
• With strong focus on alternate energy spectrum, we believe NTPC may be able
to break the underperformance of the last decade and may witness a rerating
QoQ EPS
coupled with monetization of the renewable energy arm in FY23E Growth:
Company Description: 15.3%
• NTPC is India’s largest power generation company with a total installed
capacity of 69134 MW at the group level.
• NTPC has 17% of total installed capacity in India with 24% generation share. TTM EPS
Growth:
• The company’s vision is to become a 130 GW+ company by 2032 of which 60
14.6%
GW would be contributed by renewable energy

• NTPC is an idiosyncratic play on thermal power demand and transitioning towards 7.4
renewables, aided by its size and profitability
(renewables capex mix at 40% plus by FY25E).
• Unique advantage to leverage its thermal plants to blend-in renewables;
• Ready access to human and financial capital (at low cost); and
• Risk framework which protects against downside.
Voltas PORTFOLIO
WEIGHT:
ACS: Most promising consumer category for the next 1-2 decades ROE FY24:
• India sells 7m ACs annually vs 90 million in China despite the fact that i) the 13.5%
weather in India is warmer ii) affordability has improved driven by higher financing
& rising incomes iii) running cost of ACs has come down due to better
technology. QoQ EPS
Growth:
• We see a potential J-curve in this category.
-10.6% YoY
Voltas: the market leader
• Market leader having ~25% share with strong brand & distribution moats. TTM EPS
• Consistently gained share despite competition from MNCs Growth:
-13.2% YoY
Voltas Beko JV an option value
• Addressable market significantly expanded to the full range of consumer durables
• Other white goods are more penetrated but less competitive vs ACs. PE FY24:
36.1
Risk Factors
• Rising competitive intensity in the AC segment with players resorting to
aggressive price cuts
• Higher commodity costs and INR depreciation
Tata Consultancy Services PORTFOLIO
WEIGHT:
2.7%
ROE FY24:
43%
Thesis:
• Platforms to deliver high quality, high impact solutions leveraging the latest
technologies to customers across the world
QoQ EPS
Growth:
6.4%
• Tata Consultancy Services (TCS) is one of the leading IT service providers with
a presence in BFSI, communication, manufacturing, retail & hi tech
TTM EPS
Key triggers: Growth:
13.8%
• Unprecedented demand for services in FY22
• Robust order book and deal wins
PE FY24:
• Impressive financial performance
24.6
• Boistering client base
• To benefit from the digital revolution
• Deep domain expertise in multiple industry verticals
Eicher Motors PORTFOLIO

WEIGHT:
2.3%
ROE FY24:
20.2%
Thesis
∙ Eicher Motors Limited is an Indian multinational automotive company that
manufactures motorcycles and commercial vehicles. QoQ EPS
∙ Royal Enfield is the world’s oldest motorcycle brand in continuous production. Growth:
It is the parent company of Royal Enfield & it has 2,056 stores in India. 100% YoY
Company Description TTM EPS

∙ Eicher Motors Limited is a manufacturing firm that has been in operation for Growth:
over 40 years now. 2.2% YoY
∙ It is the market leader in the >250 cc premium motorcycle segment (FY 21
market share at 93.5%) through its aspirational models under the Royal Enfield
(RE) brand such as bullet, classic & interceptor, etc. PE FY24:
22.9
Key Triggers
∙ Eicher Motors exports to over 60 countries, which contribute to about 10% of
the total sales.
∙ A new, enhanced distribution model for its RE product range; called Studio
stores have been introduced. As distribution grows, market share will go hand in
hand.
Ultratech Cement PORTFOLIO
WEIGHT:
Thesis: ROE FY24:

• Infrastructure growth has been one of the key pillars of growth for cement in the 13.4%
country, as part of the budget government has planned to complete a further
25,000 kilometers of roads.
QoQ EPS
Growth:
Company Description: -6.9% YoY
• UltraTech Cement Limited is the cement flagship company of the Aditya Birla
Group. A $ 5.9 billion building solutions powerhouse,
• UltraTech is one of the largest manufacturers of white cement in India and the third TTM EPS
Growth:
largest cement producer in the world, excluding China.
13.4% YoY
• UltraTech is the only cement company globally (outside of China) to have 100+
MTPA of cement manufacturing capacity in a single country.
PE FY24:
Key triggers: 19.7
• Government spending on infrastructure projects and affordable housing schemes
such as the Pradhan Mantri Awas Yojana with enhanced budgetary allocations
remain the primary drivers of growth for the cement industry which will be
beneficial for Ultratech Cement.
PORTFOLIO
Powergrid Corporation of India WEIGHT:
1.9%
ROE FY24:
17.7%
Thesis:
• Power Grid Corporation of India Limited is an Indian public sector
undertaking engaged mainly in transmission of bulk power across different states of
India. QoQ EPS
Growth:
-30.7%
• Grid is India’s largest power transmission utility.
• Power Grid transmits about 50% of total power generated in India on its
transmission network TTM EPS
Growth:
• It also undertakes transmission related consultancy to more than 150 domestic
5.3%
clients and owns & operates 71673 km of telecom network

9.7
• Diversification into smart metering and Transmission & Distribution infrastructure
business.
• PGCIL has signed a transmission agreement with Reliance Industries (RIL) to build a
dedicated transmission line from ISTS Jam Khambaliya pooling station to RIL’s
Jamnagar facilities. First such tie-up.
Cholamandalam Investment and Finance Company Limited PORTFOLIO
WEIGHT:
1.9%
ROE FY24:
18.7%
Thesis
∙ Cholamandalam Investment and Finance Company Limited (Chola), was
incorporated in 1978 as the financial services arm of the Murugappa Group. QoQ EPS
∙ It commenced business as an equipment financing company and has today emerged Growth:
as a comprehensive financial services provider offering vehicle finance, home loans, 70.6% YoY
loan against property, SME loans, insurance agencies, mutual fund distribution, and a
variety of other financial services to customers. TTM EPS
Growth:
Company Description 68% YoY
∙ Chola operates from 1,137 branches across India with Assets Under Management
above INR 76,518 Crores.
∙ The subsidiaries of Chola are Cholamandalam Securities Limited (CSEC) and PE FY24:
Cholamandalam Home Finance Limited (CHFL). 16.8
∙ It has more than 16 lakhs+ customers.
Chola enjoys a significant presence in Tier II, III, and IV towns and cities.
Key trigger
∙ It has been offering vehicle finance for more than three decades.
∙ CHOLA has been a strong player in the market, deep-rooted in semi-urban & rural
markets in addition to urban markets.
∙ Since, they have been in business from 1978 they have long-standing relationships
with dealers & manufacturers.
PORTFOLIO
GR Infraprojects WEIGHT:
1.8%
ROE FY24:
Thesis: 15.4%
• It is the largest and the fastest-growing player in the road construction space. It is
largely a single segment company with over 90% of revenue coming in from road QoQ EPS
space. Growth:
• From being a sub-contractor for the NHAI projects to bidding for the NHAI 25% YoY
projects, GRIL has grown at a revenue CAGR of 47% with OP growth of 70% to
20% Operating Margin
TTM EPS
-22% YoY
• Its business is divided into:
1) Civil construction activities EPC
2) Development of roads and highways BOT and HAM
PE FY24:
3) Manufacturing processes – processes bitumen, manufactures thermoplastic road 11.3
marking paint, electric poles, and road signage, and fabricates and galvanizes metal
crash barriers.
Key Triggers:
• The Company has rich experience in the design and construction of various
road/highway projects across 15 states in India and has recently diversified into
projects in the railway sector.
DCB Bank PORTFOLIO
WEIGHT:
Steps Being Taken for Growth ROE FY24:

• By curtailing growth, increasing more of retail deposits, and controlling costs, the 12.2%
bank is making all the steps in the right direction. Given the weakness in the
economy, there can be some weakness in growth and margins in the short term.
• The management has proactively exited high ticket exposure of more than Rs.5 cr QoQ EPS
Growth:
due to the risk environment in the economy. This has caused the growth to be
100% YoY
slower.
Focus on Low-risk Products TTM EPS

• The slowdown witnessed in loan book growth is a reflection of being cautious, given Growth:
the sharp decelerating trends in the economy. The Bank is likely to remain cautious 20.7% YoY
for the next two quarters and largely focus on low-risk products.
Steady Margins and Healthy Moratorium PE FY24:

4.3
• Steady margins and a probable drop in operating expenses may drive a better RoA
(Return on Assets) and RoE (Return on Equity).
The sharp decline in moratorium to 26% & ~80 bps of contingent provision provide
comfort.
PORTFOLIO
Inox Leisure WEIGHT:
1.7%
ROE FY24:
20.5%
Thesis:
• One of leading multiplex chains – entertainment destination of India.
Company Description: QoQ EPS

Growth:
• Inox Leisure is an India movie theatre chain with 163 multiplexes including 692
L to P YoY
screens across 73 Indian cities.
Key triggers:
• The company has pioneered sustainable developments among the Indian movie TTM EPS
Growth:
theatre companies with its INOX in Mumbai to be the first ever solar powered
L to L YoY
theatre in 2018.
• Merger with PVR – NOC received, shall lead to synergy in business.
• Demand recovery seems to back to pre-covid levels. PE FY24:
25.7
Minda Corporation Limited PORTFOLIO
WEIGHT:
ROE FY24:
Thesis 16.7%
∙ Minda Corporation is one of the leading automotive component manufacturing
companies in India with a pan-India presence and a significant international
footprint. QoQ EPS
∙ It is the flagship company of Spark Minda, which was part of the erstwhile Minda Growth:
Group. 100% YoY
Company Description TTM EPS

∙ The Company has a diversified product portfolio that encompasses Growth:
Mechatronics, Information and Connected Systems, Interior Plastic, and 96.7% YoY
electronics for auto OEMs.
∙ These products cater to 2/3 wheelers, passenger vehicles, commercial vehicles,
PE FY24:
off-roaders, and after-market. 15.5
Key triggers
∙ It has 33 manufacturing plants & offices, it has a geographical spread providing
support to its Original Equipment Manufacturers (OEMs) customers across
India, Europe, Southeast Asia, and North America.
∙ It has a robust all-India network of 450 business partners, and the Company has
access to over 10,000 retail networks in the country.
Deepak Fertilizers PORTFOLIO

WEIGHT:
Thesis: ROE FY24:

• Deepak Fertilisers And Petrochemicals Corporation Limited (DFPCL) is one of the 15.2%
largest manufacturers of chemicals in India.
• DFPCL has market leadership in all key product segments and strong demand
outlook should further support business growth profitability. QoQ EPS
Growth:
100% YoY
• It manufactures Technical Ammonium Nitrate (mining chemicals), Industrial
Chemicals and Crop Nutrition. TTM EPS
• The products of the company have uses in Explosives, Mining, Infrastructure and Growth:
Healthcare. 100% YoY
Key triggers:
• It is the 2nd largest manufacturer of Nitric Acid in South East Asia and the largest in PE FY24:
9.1
India.
• It is one of the leading manufacturer and marketer of IsoPropyl Alcohol (IPA) with
more than 50% market share
• Only producer of the merchant IsoPropyl Alcohol (IPA) in India and of NP prill
24:24:0 fertiliser and TAN solids in India.
Gujarat Gas PORTFOLIO
WEIGHT:
Thesis: ROE FY24:

19.7%
• Gujarat Gas is one of India’s largest city gas distribution companies with highest
sales volume among listed peers.
• Sales volume grew at 15% CAGR in FY17-22 driven by industrial PNG
QoQ EPS
• The company benefitted from NGT order for Morbi industrial area Growth:
-19.8% YoY
• GGL is engaged in the business of Natural gas in India. The business of natural gas
involves distribution of gas from sources of supply to centers of demand and to end TTM EPS
customers. Growth:
-29.5% YoY
• GGL caters to its customers by providing CNG and PNG connections in domestic,
Industrial, Commercial and Non commercial segments in the areas of South &
Central Gujarat and Saurashtra
PE FY24:
18.1
Key triggers:
• It has better pricing power and regulatory tailwinds over long term
• In the near term, price hikes/global LNG costs trend will be key monitorable
• The company’s volume growth prospects remain robust with the addition of new
industrial units, existing units undergoing expansions, and the emergence of a new
ceramic cluster
HDFC Life Insurance PORTFOLIO

WEIGHT:
ROE FY24:
Thesis: 12%
• HDFC Life focuses on a superior product mix with a greater focus on high margin
business, diversified distribution mix, and high technology focus puts the company
ahead of the curve. QoQ EPS
• Share of low margin ULIP business (as a % to total APE) has been consistently Growth:
contracting from 46% in FY17 to 23% in FY20. 4.4% YoY
• HDFC Life Insurance Co. Ltd, a joint venture between HDFC Ltd. and Standard Life TTM EPS
Aberdeen. It offers protection for life, health, properties, and automobile, amongst Growth:
11.9% YoY
others
• Focused on developing multiple channels and new product propositions to cope
with customer changing behavior, the company is expected to see an uptrend in
PE FY24:
market share. 56.2
Key triggers:
• New Banca partners such as ICICI Securities, IDFC First Bank, Bandhan Bank, and
Yes Bank are showing robust traction in new business premium.
• Agency channel is bouncing back well, with agent productivity up 25% YoY.
Jubilant Food Works PORTFOLIO
WEIGHT:
0.9%
ROE FY24:
25.9%
Thesis
∙ Jubilant FoodWorks Limited (JFL/Company) is part of the Jubilant Bhartia Group
and is one of India’s largest foodservice companies. QoQ EPS
∙ The Company holds the master franchise rights for two international brands, Growth:
Domino’s Pizza, and Dunkin' Donuts addressing two different food market 62.2% YoY
segments.
TTM EPS
Company Description Growth:
∙ It also runs Hong’s Kitchen, a homegrown brand, specializing in Chinese cuisine. 23.7% YoY
∙ It recently added Indian cuisines like biryani, kebabs, Indian bread, and much more
to the portfolio by launching Ekdum!
∙ It has a presence in 293 cities in India. PE FY24:
46.1
Key Trigger
∙ Jubilant Foodworks opened 134 Domino’s Pizza restaurants with 50 restaurants
opening each in Q3 and QoQ FY 2021 – the highest restaurant addition in a
quarter.
∙ Invested ₹92 crores in Barbeque-Nation Hospitality Limited (BNHL) for an equity
stake of 10.76%.
Jindal Stainless Ltd PORTFOLIO

WEIGHT:
Thesis: ROE FY24:

• Jindal Stainless Ltd is one of the largest manufacturers of Stainless Steel flat 19.6%
products, in Austenitic, Ferritic, Martensitic and Duplex grades in India used in a
variety of industries like automobile, railways, construction, consumer goods etc
QoQ EPS
Growth:
-1.6% YoY
• The Co is the largest manufacturer of stainless steel in 200, 300, 400 and
duplex stainless steel series. The product range includes Ferro Alloys, Steel Slabs,
Hot Rolled Coils, Cold Rolled Coils, Steel Plates etc. TTM EPS
Growth:
Key triggers: 100% YoY
• JSL is augmenting is stainless steel melt capacity from 1.1 million tonnes per annum
(MTPA) to 2.1 MTPA
• India which is the second largest consumer of stainless steel has a long way to go as PE FY24:
3.1
the per capital consumption of stainless steel is still low at 2.5kgs as compared to
the World average rate at 5.7kgs
• It is also expanding backward integration with 1.4x expansion of ferro chrome from
0.25 MTPA to 0.35 MTPA.
Divi’s Laboratories PORTFOLIO
WEIGHT:
Thesis: ROE FY24:

19.6%
• It has a market presence in 95 countries and ~14,000 employees and is one of the
leading pharmaceutical companies in the world.
QoQ EPS
• Divis Laboratories Ltd is engaged in manufacturing of Advanced Pharmaceutical 60.6% YoY
Ingredients (APIs), Intermediates and Nutraceutical ingredients with predominance
in exports.
• The company derives ~47% of total revenues from top 5 products. TTM EPS
Growth:
44.5% YoY
Key triggers:
• DIVI continues to: 1) work on contract research and manufacturing services
(CRAMs) projects, 2) develop its Generics API pipeline, and 3) subsequently build
PE FY24:
capacity to meet sustainable as well as situational opportunities. 31.3
• The management said profitability will sustain going forward.
Muthoot Finance PORTFOLIO

WEIGHT:
0.7%
ROE FY24:
Thesis: 19%
• Muthoot Finance Ltd (MFL) will continue to benefit from its long-standing presence
and deep knowledge of the gold loan segment.
• Also, the same infrastructure would be utilized to cross-sell products leading to a QoQ EPS
lower cost-income ratio. Growth:
2% YoY
• Strong promoter pedigree with a legacy of more than 100 years along with healthy
TTM EPS
capital adequacy of 25%+ with Tier-1 at 24.6% provides comfort. Growth:
• The company has a comfortable liquidity position with ~Rs 10000cr as cash and 2.2% YoY
investments which it can utilize for its growth and should enable it to earn higher
NIMs and return ratios.
PE FY24:
Key triggers: 8.3
• It has a large footprint across India with 4619 gold lending branches. The company
also has a presence in other lending segments like housing, microfinance, and vehicle
finance via its subsidiaries
• Strong asset quality, low leverage, positive ALMs, and sticky customer base levers to
aid strong operating performance
PORTFOLIO
Kajaria Ceramics WEIGHT:
0.7%
ROE FY24:
Thesis: 22.4%
• Kajaria Ceramics is the largest manufacturer of ceramic/vitrified tiles in India with a
current annual capacity of 70.4 mn. square meter distributed across eight plants
• Kajaria with a net cash balance sheet and superior brand, is a quasi-play on an QoQ EPS
improved economic scenario. Growth:
100% YoY
• Kajaria Ceramics manufactures glazed and unglazed ceramic tiles. The company sells TTM EPS
its products in India and it also exports them to other countries. Growth:
• Kajaria Ceramics has increased its capacity from 1 mn. sq. mtrs to 70.40 mn. sq. 12.5% YoY
mtrs. in last 33 years and offers more than 2800 options in ceramic wall & floor
tiles, vitrified tiles, designer tiles, and much more.
PE FY24:
Key triggers for future price-performance: 24.8
• 19.4% CAGR expected in tiles volume and realizations CAGR of ~5%, resulting in
tiles revenues CAGR of 25.2% over FY21-23 to Rs. 3952 crore
• Kajaria enjoys superior realizations (~10-15% premium to other listed peers) owing
to better brand recall, has a strong balance sheet (net cash of ~473 crores), and
commands superior margins (~18-20% vs. 12-14% for peers)
Safari Industries PORTFOLIO

WEIGHT:
A positive outlook on the sector ROE FY24:

22.5%
• The long-term outlook for the sector looks promising given multiple drivers like an
accelerated shift in consumer preferences away from unorganized labels to brands,
rising leisure travel, shortening of replacement cycle for luggage as well as
QoQ EPS
backpacks, increased focus on strengthening the Safari brand Growth:
-1.8% YoY
The focus will be on sustaining growth and controlling costs
• Competitive intensity has increased in the near term given demand uncertainty. The
focus will be on sustaining growth and controlling costs across the supply chain TTM EPS
amid these challenging times. Growth:
100% YoY
• Although, the near term might remain clouded as travel restrictions and movement
of people continue to be disrupted, we think short-haul trips and marriage-led
demand could support growth.
PE FY24:
22.6
Risk Factors
• Spike in RM prices
PORTFOLIO
Natco Pharma WEIGHT:
0.5%
ROE FY24:
Thesis: P to L
• Natco has, over the years, developed a knack of manufacturing complex generic
products with few competitors, especially for the US market.
QoQ EPS
• Natco is a leading player in the domestic oncology segment with a product basket 23.7% YoY
of ~33 products.
• Natco has carved out its own identity via tie-ups to tap limited but niche products
TTM EPS
pipeline including 20 Para IVs filings
Growth:
-56.8% YoY
Key triggers:
• The company is well prepared for its major launch of Lenalidomide in the US during
QoQ of this financial year
PE FY24:
• Natco is a leading player in the domestic oncology segment with 33 products &
8.4
new launches in the cardio/diabetology segment are expected to support growth
• The management plans to expand in other geographies & agrochemicals with India,
Brazil, Canada, China, agrochemical segment, together with likely to contribute 70-
80% of revenues in the medium to long term
Kotak Mahindra Bank PORTFOLIO

PORTFOLIO
WEIGHT:
WEIGHT:
0.5%
%
ROE FY24:
Thesis: 12.4%
• CASA forms 60.6% of total deposits aiding lower costs
• Strong RoA of 1.8%and RoE of 12-13% make it a good profitable bank
QoQ EPS
• Kotak Mahindra Bank (KMB) is a powerful banking franchise, with promoter stake at 52.4% YoY
26% and strong promoter led management. It has a presence across the financial
services value chain. TTM EPS
• KMB was the first NBFC to receive a commercial banking licence from the RBI in Growth:
2003. 31% YoY
Key triggers:
• Long term focus on maintaining risk adjusted returns to drive return ratios PE FY24:
• Steady stressed assets coupled with provision buffer provides comfort 29.2
• Consistent performance over a period of time, healthy return ratios ~1.8- 2% RoA
& 12-13% RoE with strong management justify valuations
• Subsidiaries like Kotak Prime, life insurance, AMC & securities continue healthy
performance
TCNS Clothing PORTFOLIO
WEIGHT:
Revenue and Cash Flow Trajectory ROE FY24:

• Revenue recovery rate is on an upward trajectory with sales reaching 45% of pre- 17.6%
Covid levels in Q2FY21 and ~70% in October. Online sales continue to grow swiftly
with October registering the highest ever sales. Around 95% of the stores are
operational at on end of Q2FY21. QoQ EPS
Growth:
• Emphasis on minimizing cash burns is on track with TCNS securing full-year rental
L to L YoY
savings of ~30% YoY, and potential annualized savings of 15-20% for employee
expenses in FY21E.
TTM EPS
Working Capital and Cash Reserves Position Growth:
• It continues to have healthy cash reserves worth INR 110 crore (INR 170 crore in L to L YoY
FY20) and additional unutilized bank limits as of H1FY21. Furthermore, it is looking
to optimize working capital and free up cash by significantly reducing fresh buys and
reverting to utilizing full credit periods. PE FY24:
21.8
• TCNS has secured significant fixed cost reduction for the year through rationalizing
unviable stores (shut 21 stores in H1FY21), rental waivers, rationalizing staff
overheads, and curbing discretionary spending (ad-spends).
Risk Factors
1. Concentration risk at fund level;

The Fund Portfolio shall comprise of high conviction stock ideas from across market-
capitalization levels and sectors. The Fund will generally maintain a concentrated portfolio of
securities, through its investments in India, and accordingly, the Fund may be subject to
higher risk than funds which have a more diversified portfolio. In accordance with the SEBI
regulations, not more than 10% of the Scheme’s investible funds will be invested in any
investee company.
Kindly refer the table below for details of concentration of holdings of the portfolio of the
Scheme as on 30 June, 2022.
(% to Net Assets of the Scheme)

Holding
Long Only
Highest holding 7.4%
Top 10 59.2%
2. Foreign exchange risk at fund level;

The capital provided by investors is in Indian Rupees and all the investments made by the
Scheme are in Indian Rupees denominated securities and hence there is no Foreign Exchange
Risk on account of portfolio investments. However, the investee companies may have their
businesses impacted by foreign currency risk.
3. Leverage risk at fund levels;
The Scheme does not use leverage as part of its investment strategy and hence there is no
leverage risk.
4. Leverage risk at investee company levels;
The Scheme identifies and invests in listed equities and equity related securities of companies
and does not participate in decisions on leverage or capital structure at the investee company
level. The Scheme aims to invest in companies which have strong managements, solid
fundamentals and high growth potential in the mid/small/micro cap space which could generate
significant alpha over a medium to long term.
5. Realization risk (i.e. change in exit environment) at fund and investee company levels;
The Scheme has not witnessed any realization risk for the quarter under reporting.
The Scheme is a close ended scheme. After the receipt of the entire Capital Commitment, at the
discretion of Investment Manager, the Fund may open for redemption of units on the specified
transaction period which will be the last Business Day of every calendar monthly or the last day,
if that day is a non-Business Day (“STP”). Class B1, B2 and C1 Unitholder’s Capital Contribution
shall be locked-in for the period of 6 months and 2 years for Class D1,D2,D3,D4,D5,D6,E1,E2,
E3,E4,E5,E6,F1,F2,F3,F4 units from the final closing date (“Lock-In Period”). The Unitholder will
have the option of redeeming its Units (“Redemption Option”) upon the expiry of the Lock-In
Period. The Unitholder shall give a written notice at least 5 (five) Business Days prior to the
relevant Redemption Date.
Though the Scheme’s investments are in listed securities, there may be a price impact on account
of portfolio rebalancing and/or liquidity demands on account of redemptions. Shares of smaller
capitalisation companies may, from time to time, and especially in falling markets, become
illiquid and experience short-term price volatility and wide spreads between bid and offer prices
Stocks mentioned above are used to explain the concept and is for illustration purpose only and should not used for development or implementation of an investment strategy. It should not be construed as
investment advice to any party. For detailed Company-specific Risk Factors, please refer to the end of this document.
6. Strategy risk (i.e. change in or divergence from business strategy) at investee company
level;
The Fund shall follow an active investment style using bottom-up stock picking based on the
‘Buy Right : Sit Tight’ investment philosophy. The Fund managers shall identify and invest in
shares of businesses run by high quality management & having sustainable and scalable
business models thus using QGLP (Quality, Growth, Longevity & Price) as the key evaluation
parameters. The businesses should have strong earnings growth prospects and be available
at reasonable valuations.
If the Manager believes that changes in business strategy are not in investor’s interest, the
Scheme can exit such investments.
7. Reputation risk at investee company level;
The Scheme endeavours to invest based on fundamental analysis. This includes analysis of
management/promoter quality as well.
8. Extra-financial risks, including environmental, social and corporate governance risks, at
fund and investee company level.
The Scheme endeavours to invest in companies based on fundamental analysis. If the Manager
expects risks due to environmental, social and corporate governance issues, the Scheme can exit
such investments.
9. Fees ascribed to the Investment Manager or Sponsor; and any fees charged to the
Alternative Investment Fund or any investee company by an associate of the Manager
or Sponsor shall be disclosed periodically to the investors
The Investment Manager charges Investment Management fees and Performance Fees in terms
of the PPM and the Contribution Agreement signed with the investors. There are no other fees
ascribed to the Investment Manager or Sponsor.
No fees are charged to the Scheme or any investee company by an associate of the Investment
Manager or Sponsor.
10. Transactional and Operational information regarding fund investments
The Scheme has transacted in listed equity securities and units of mutual fund units.
11. Risk management information regarding fund investments
The Investment Manager seeks to adopt corporate governance and risk management best
practices for the Fund, which will be implemented in accordance with benchmarked business
practices in India. The Investment Manager will attempt to mitigate the Fund’s risks through its
robust investment process and a combination of due diligence and post-investment active
engagement process. In particular, the Investment Manager shall adopt the following steps to
evaluate, mitigate and manage risks that may arise from time to time:
Investment Evaluation
• Research and analysis
• Management meetings
• Commercial diligence
• Post-Investment engagement
• Research and analysis
• Management meetings
• Commercial diligence
• Post-Investment engagement
12. Enquiries & Legal Action, Liabilities, Conflict of Interest and other disclosures
i. The actions taken by legal or regulatory bodies against Investment Manager has been
updated in the Private Placement Memorandum of the Fund sent to the investors.
ii. There are no material liabilities against the Fund.
iii. The sources of conflicts of interests are disclosed in the PPM.
iv. There was no breach of provision of the PPM during the quarter ended 30 June, 2022.
v. No change in the structure.
13. Other Disclosures:
 Unitholders may note that in accordance with the enabling provisions mentioned in the
PPM of the Scheme, the Investment Manager has charged differential management fees
to different investors based on their amount of contribution and mode of contributing
towards the corpus of the Scheme.
 Investors are further advised to refer to the PPM and Contribution Agreement for various
details about the Scheme including the Valuation Policy, Fees and Expenses, Conflict of
Interest Policy, investment restrictions etc. Investors may send communication to the
Investment Manager at the registered office or may write to
aifservice@motilaloswal.com.
 Investors are hereby informed that, SEBI in its Circular CIR/CFD/CMD1/168/2019 dated
December 24, 2019 released Stewardship Code for all Mutual Funds and all categories of
AIFs, in relation to their investment in listed equities, wherein SEBI has provided six
principles for AIFs to comply. Further, Securities and Exchange Board of India (Alternative
Investment Funds) Regulations, 2012 [Regulations n 20(1) and 20(9)] has come up with
Code of Conduct (‘CoC’) as mentioned in Fourth Schedule of the Regulations. In that
context, we hereby confirm that, both, Motilal Oswal Alternative Investment Trust
(MOAIT) and Motilal Oswal Alternative Investment Trust – I (MOAIT – I) are adhering to
the Stewardship Code and Code of Conduct for AIF.
Disclaimers
Source for stock write ups: MOAMC Internal Research and External Research
This document has been prepared and issued on the basis of internal data, publicly available information and other
sources believed to be reliable. The information contained in this document is for general purposes only and not a
complete disclosure of every material fact and terms and conditions. The information / data herein alone is not
sufficient and shouldn’t be used for the development or implementation of an investment scheme. It should not be
construed as investment advice to any party. All opinions, figures, charts/graphs, estimates and data included in
this document are as on date and are subject to change without notice. While utmost care has been exercised
while preparing this document, Motilal Oswal Asset Management Company Limited (MOAMC) does not warrant
the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the
use of this information. MOAMC does not take the responsibility for the authenticity of the above
information/news/data. The statements contained herein may include statements of future expectations and other
forward-looking statements that are based on our current views and assumptions and involve known and
unknown risks and uncertainties that could cause actual results, performance or events to differ materially from
those expressed or implied in such statements. Readers shall be fully responsible / liable for any decision taken on
the basis of this document. No part of this document may be duplicated in whole or in part in any form and/or
redistributed without prior written consent of MOAMC. Readers should before investing in the Scheme make
their own investigation and seek appropriate professional advice. Investments in Securities are subject to market
and other risks and there is no assurance or guarantee that the objectives of any of the scheme of the Alternative
Investment Funds will be achieved. MOAMC does not offer any guaranteed/assured returns. Past performance of
the Investment Manager does not indicate the future performance of any of the schemes. The investments may
not be suited to all categories of investors. Neither MOAMC, nor any person connected with it, accepts any
liability arising from the use of this material. The recipient of this material should rely on their investigations and
take their own professional advice. Opinions, if any, expressed are our opinions as of the date of appearing on this
material only. While we endeavor to update on a reasonable basis the information discussed in this material, there
may be regulatory, compliance, or other reasons that prevent us from doing so. Recipient shall understand that
the aforementioned statements cannot disclose all the risks and characteristics. The recipient is requested to take
into consideration all the risk factors including their financial condition, suitability to risk return, etc. and take
professional advice before investing. As with any investment in securities, the Value of the portfolio under
management may go up or down depending on the various factors and forces affecting the capital market. This
document is not for public distribution and has been furnished solely for information and must not be reproduced
or redistributed to any other person. Persons into whose possession this document may come are required to
observe these restrictions. No part of this material may be duplicated in any form and/or redistributed without’
MOAMCs prior written consent. Distribution Restrictions – This material should not be circulated in countries
where restrictions exist on soliciting business from potential clients residing in such countries. Recipients of this
material should inform themselves about and observe any such restrictions. Recipients shall be solely liable for any
liability incurred by them in this regard and will indemnify MOAMC for any liability it may incur in this respect.

Mo Gop II Aif Q1fy23

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Mo Gop II Aif Q1fy23

Uploaded by

Copyright:

Available Formats

Motilal Oswal Growth Opportunities Fund Series II

Portfolio and Sector Allocation as on 30 June 2022

NAV and Performance as on 30 June 2022

Particulars NAV (Rs.) Particulars Returns %

Class B1 10.5447 Class B1 -2.6

ICICI Bank PORTFOLIO

State Bank Of India PORTFOLIO

Max Financial Services PORTFOLIO

Thesis: ROE FY24:

Key triggers: PE FY24:

L & T Technology Services PORTFOLIO

Thesis: ROE FY24:

Key triggers: PE FY24:

Key triggers: PE FY24:

Eicher Motors PORTFOLIO

Company Description TTM EPS

Thesis: ROE FY24:

Key triggers: PE FY24:

Steps Being Taken for Growth ROE FY24:

Focus on Low-risk Products TTM EPS

Steady Margins and Healthy Moratorium PE FY24:

Company Description: QoQ EPS

Company Description TTM EPS

Deepak Fertilizers PORTFOLIO

Thesis: ROE FY24:

Thesis: ROE FY24:

HDFC Life Insurance PORTFOLIO

Jindal Stainless Ltd PORTFOLIO

Thesis: ROE FY24:

Thesis: ROE FY24:

Muthoot Finance PORTFOLIO

Safari Industries PORTFOLIO

A positive outlook on the sector ROE FY24:

Kotak Mahindra Bank PORTFOLIO

Revenue and Cash Flow Trajectory ROE FY24:

1. Concentration risk at fund level;

(% to Net Assets of the Scheme)

2. Foreign exchange risk at fund level;

You might also like