Story of seven “D”s

India equity strategy

Vikash Kumar Jain

India strategist
[email protected]

9-12 September 2024

For important disclosure information please refer to the last page of this presentation. 31 ST INVESTORS’ FORUM
      
 epth
evelopment
emographics
iversity
iscipline
omestics
ependability

2
      
Seven “D”s driving sustainable Indian economic growth
 Depth: The highest GDP growth among the top equity markets
 Development: Ranks among the most improved on GDP growth versus pre-Covid
and is set to become the third biggest economy soon, even as fastest rate of change
in GDP per capita creates large opportunities
 Demographics & Diversity: Among the top-3 nations on the rise in share of working
age population and their diversity
 Discipline: Rise in government debt has been among the lowest across large markets.
 Domestic investors: Rise in household leverage has been among the lowest across
large markets.
 Dependability: Bond yields haven’t risen. A focused approach to raise forex reserves
has pulled down volatility in the currency to record lows

3
      
Depth: Big Mcap, large GDP with leading GDP growth
12 GDP growth rate
(nominal USD, %YoY)

India
10
Mexico
Indonesia
8 Philippines
Malaysia

Brazil Taiwan
6 China
Canada
Thailand UK
Saudi Arabia
4 South Korea
Australia USA
Germany
France
2
Japan
South Africa
0
0 1 2 3 4 5 6 7 8 9 10 60
Market Cap (in US$tn)

Note: Bubble area indicates the size of GDP. Source: International monetary fund, Bloomberg, CLSA

4
      
Development: India has the highest GDP growth
Real GDP growth (%YoY) Change Pre-Covid (2019) Post-Covid (2023)
Mexico 3.5 (0.3) 3.2
India 3.2 4.6 7.8
Japan 2.3 (0.4) 1.9
Brazil 1.7 1.2 2.9
Australia 0.3 1.8 2.1
South Africa 0.3 0.3 0.6
Indonesia 0.0 5.0 5.0
US 0.0 2.5 2.5
Thailand (0.2) 2.1 1.9
Philippines (0.5) 6.1 5.6
Malaysia (0.7) 4.4 3.7
Canada (0.8) 1.9 1.1
China (0.8) 6.0 5.2
South Korea (0.8) 2.2 1.4
France (0.9) 1.8 0.9
Germany (1.4) 1.1 (0.3)
UK (1.5) 1.6 0.1
Taiwan (1.7) 3.1 1.4
Saudi Arabia (1.9) 1.1 (0.8)

Source: International monetary fund, Bloomberg, CLSA. Note: The top-21 markets by market capitalisation are taken into consideration throughout this presentation

5
      
Development: India set to become the third-largest economy
8,000 (US$bn) India Nominal GDP

7,000 6,683

6,000
India

5,000
Japan

4,000 Germany

3,000

United Kingdom
2,000 1,342 France

Brazil
Canada Italy
1,000

FY25CL

FY26CL

FY27CL

FY28CL

FY29CL

FY30CL
FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY24
Source: International monetary fund, Bloomberg, CLSA

6
      
Development: Leader in rate of change in per capita GDP
180 India Phillipines Indonesia China Thailand
Brazil UK Mexico Malaysia Taiwan
170 South Korea US Japan Canada Germany

160

150

140

130

120

110

100

90
2023 2024 2025 2026 2027 2028 2029

Note: GDP per capita has been rebased to 100 for the year 2023 for the top 15 countries by market capitalisation. Source: International monetary fund, Bloomberg, CLSA

7
      
India’s GDP per capita versus other large markets
GDP per capita, 2023 2024 2025 2026 2027 2028 2029
current prices (in US$)
India 2,500 2,731 2,984 3,265 3,573 3,911 4,281
Philippines 3,868 4,130 4,415 4,730 5,066 5,463 5,896
South Africa 6,138 5,975 6,067 6,182 6,319 6,444 6,573
Indonesia 4,942 5,271 5,714 6,131 6,565 7,030 7,519
Thailand 7,337 7,812 8,153 8,608 9,147 9,640 10,091
Brazil 10,642 11,352 11,809 12,510 13,230 13,847 14,507
Malaysia 12,570 13,315 14,115 14,870 15,556 16,318 17,075
China 12,514 13,136 14,037 14,929 15,834 16,782 17,705
Mexico 13,642 15,249 15,956 16,600 17,221 17,883 18,542
Saudi Arabia 32,530 33,040 34,295 35,286 36,303 37,238 38,672
Japan 33,806 33,138 34,922 36,643 38,065 39,820 40,949
South Korea 33,192 34,165 35,785 37,409 39,012 40,655 42,326
Taiwan 32,444 34,432 36,650 38,602 40,453 41,837 43,104
France 46,001 47,359 48,631 50,143 51,571 53,040 54,388
Germany 52,727 54,291 56,439 58,472 60,264 61,965 63,551
Canada 53,548 54,866 57,021 58,907 60,729 62,636 64,653
UK 49,099 51,075 53,627 56,759 59,870 63,279 66,911
Australia 65,434 66,589 68,614 70,751 72,808 75,320 78,151
US 81,632 85,373 87,978 90,903 94,012 97,231 100,580
Source: International monetary fund, Bloomberg, CLSA

8
      
Demographics: Among top countries on increase in workforce
Increase/(Decrease) in working population as a % of total population (in ppts)

4 (ppts)

1.7
2
1.0 0.8
0.5

0
(0.0)
(0.6) (0.8)
(2) (1.5)
(1.8) (1.8) (2.0)
(2.4) (2.5) (2.6)
(4) (3.3)

(6) (5.4)
(6.1)

(8)
(8.5)

(10)
Indonesia

Thailand
South Africa

Mexico
Philippines

Canada
Malaysia

Saudi Arabia
India

UK

Brazil

Japan

France

US

Germany
Australia

South korea
China
Source: International monetary fund, World Bank, Bloomberg, CLSA

9
      
Discipline: Government borrowing has been kept under check
Change in general govt. borrowing/(lending) pre and post Covid period (in ppt)

8 (ppt)

7 6.8

6 5.6

4 3.4 3.5 3.5 3.6

3.2
3 2.4 2.4
2.3
2.0 2.1
2 1.6
1.3 1.3
1.0 1.0
1

0
(0.0)
(1)

(2)
(1.9)
(3)

Indonesia

Thailand
Mexico

Canada

Philippines

South Africa
Malaysia
Taiwan

Germany

Saudi Arabia
Japan

India

Brazil

France

UK

US
South Korea

Australia

China
Source: International monetary fund, Bloomberg, CLSA

10
      
Discipline: Household leverage remains low in India
Household debt (as a % of GDP)

120

111.8
as of 2012 as of 2022

105.1
102.4
100

86.9
83.2
74.4
80

68.2
66.9
66.1
61.5
55.1
60

35.6
34.6
34.2

40
16.6
16.2

20
12.8

0
Indonesia

Thailand
Mexico

South Africa

Canada
Malaysia
Saudi Arabia

Brazil

India

Germany

France

Japan

US

UK
China

South Korea

Australia
Source: International monetary fund, Bloomberg, CLSA

11
      
Dependability: Unlike peers, Indian cost of debt hasn’t risen
10-year yields Change Pre-covid (2019) Now (2024-TD)
China (1.06) 3.20 2.15
Indonesia (0.87) 7.49 6.62
India 0.05 6.92 6.97
Malaysia 0.16 3.62 3.78
Thailand 0.57 1.99 2.56
South Africa 0.58 8.43 9.01
Taiwan 0.80 0.73 1.53
Philippines 0.87 5.22 6.09
Japan 0.96 (0.11) 0.85
South Korea 1.35 1.67 3.03
Canada 1.42 1.56 2.97
US 1.65 2.08 3.73
Mexico 1.98 7.53 9.50
Germany 2.47 (0.24) 2.22
Australia 2.49 1.44 3.93
France 2.82 0.09 2.91
UK 3.09 0.85 3.94
Brazil 4.39 7.80 12.19
Source: International monetary fund, Bloomberg, CLSA

12
      
Dependability: Most material rise in size of forex reserves
4 (no. of months) Increase in import cover in last 5 years Increase in import cover in the last 10 years
1.9

1.1
1.1

1.0
0.8

0.8
0.5

0.5

0.4

0.4

0.3
0.3

0.3
0.2

0.1

0.1

0.1
0.1

0.0
0.0
0

(0.0)
(0.1)

(0.2)

(0.3)

(0.3)

(0.8)

(1.1)
(1.1)

(1.4)

(1.4)
(2)

(1.8)
(4)

(3.8)
(3.9)

(4.9)
(6)

(7.8)

(6.7)
(8)

Indonesia

Thailand
Phillipines

South Africa

Canada

Mexico

Malaysia
Taiwan
India

US

Germany

France

UK

Japan

Brazil
Australia

South Korea

China
Source: International monetary fund, Bloomberg, CLSA

13
      
Dependability: Volatility of USD-INR at historic lows
1.0 (in %) Thirty-day volatility of daily USD-INR movement

0.9

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0.0
Jan 04

Jan 05

Jan 06

Jan 07

Jan 08

Jan 09

Jan 10

Jan 11

Jan 12

Jan 13

Jan 14

Jan 15

Jan 16

Jan 17

Jan 18

Jan 19

Jan 20

Jan 21

Jan 22

Jan 23

Jan 24
Source: Bloomberg, CLSA

14
      
Seven “D”s that make the Indian market attractive
 Discipline: Decline in balance sheet leverage of Indian companies is one of the highest in
the world and this has taken the leverage of Nifty at multi-year lows
 Development: Notable improvement in ROEs has made India the second best market on
ROE even as we see room for further increases. India remains among the top market on
EPS growth projections.
 Dependability: EPS growth has been stable and consistent post-Covid while beta of
Indian market continues to fall versus the EM benchmark
 Depth: Fourth biggest market by size, and by number of large and liquid stocks
 Diversity: Nearly the lowest stock and sector concentration risk among EMs
 Domestic investors & Demographics: Steady inflow from domestic investors will provide
stability even as FIIs may pump more money and reverse the decline in their ownership,
while keeping the household leverage low.
15
      
Discipline: Corporate balance sheet at the healthiest level
Net Debt to Ebitda
3.5

3.0
3.0
2.8
2.7
2.6 2.6
2.5
2.5
2.3
2.3
2.1
2.0
2.0
1.8

1.5
1.3

1.1

1.0
Jan 13 Jan 14 Jan 15 Jan 16 Jan 17 Jan 18 Jan 19 Jan 20 Jan 21 Jan 22 Jan 23 Jan 24 Jan 25
Source: Bloomberg, CLSA

16
      
 17
0
1
2
3
4
5
6

(2)
(1)
3.5
Korea
1.7

Source: Bloomberg, CLSA

0.3
Japan (1.3)

2.6
India
1.1

2.8
Brazil
1.3

1.2
Taiwan
(0.2)

2.4
Mexico
1.4

 
1.7

 
UK
1.0

1.7
USA
1.1
31 Dec 2019

1.3
SouthAfrica
0.8

   1.5

Germany
1.1

2.2
31 Dec 2025

Philippines
2.2

2.2
Thailand
2.4

1.8
France
2.4

0.4

HK 1.3

1.3

China
2.4
Discipline: India’s cut in leverage vs other global markets

1.9
Malaysia
3.1

1.2
Singapore
5.0
 18
0
5
10
15
20
25
USA 19.5

ROE - 2025F

Source: Bloomberg, CLSA

India 16.0

Mexico 15.9

Taiwan 15.8

Brazil 15.3

UK 14.2

 
Indonesia 13.9

 
France 13.0

Philippines 12.8

  
Germany 11.6

China 11.2

Korea 11.0

SouthAfrica 11.0

Singapore 10.8

HK 10.7

9.6
Development: Impressive ROE vs other global markets

Malaysia

Thailand 9.5

Japan 9.0
 19
0
5
10
15
20
25
4.2
Korea
11.0

Source: Bloomberg, CLSA

9.1
Taiwan
15.8

8.1
UK
14.2

9.8
India
16.0

8.0
France
13.0

11.2
Brazil 15.3

15.7

 
USA
19.5

 
10.1
Indonesia
13.9
31 Dec 2019

12.9
Mexico 15.9

9.4

  
Germany
11.6

8.8
Singapore
10.8
31 Dec 2025

7.4
Japan
9.0

11.6
Philippines
12.8

8.8
Malaysia
9.6

10.1
HK
10.7

9.4
Thailand
9.5

12.1
SouthAfrica
11.0

12.8
China
11.2
Discipline: India’s ROE improved significantly in last five years
 20
10
12
14
16
18
20
22
24

8
Jan 07

Jan 08

Jan 09

Source: Bloomberg, CLSA

Jan 10

Jan 11

Jan 12

Jan 13

Jan 14

Jan 15
India’s ROE is improving since 2019

Jan 16

Jan 17

Jan 18

Jan 19

Jan 20

 
Jan 21

 
Jan 22

Jan 23

Jan 24

Jan 25
10
12
14
16
18
20
22

  
Jan 09

Jan 10

Jan 11

Jan 12

Jan 13
India has more room for ROE improvement

Jan 14

Jan 15

Jan 16
USA ROE inching towards its peak

Jan 17

Jan 18

Jan 19

Jan 20

Jan 21

Jan 22

Jan 23

Jan 24

Jan 25
 21
12
16
20
24
28

4
8
Jan 07

Jan 08

Jan 09

Source: Bloomberg, CLSA

Jan 10

Jan 11

Jan 12

Jan 13
Mexico ROE nearing its peak

Jan 14

Jan 15

Jan 16

Jan 17

Jan 18

Jan 19

Jan 20

 
Jan 21

 
Jan 22

Jan 23

Jan 24

Jan 25
10
12
14
16
18

4
6
8

  
Jan 07
Markets that are nearing peak ROE

Jan 08

Jan 09

Jan 10

Jan 11

Jan 12

Jan 13

Jan 14

Jan 15

Jan 16

Jan 17

Jan 18
ROEs in Taiwan also nearing multi-year highs

Jan 19

Jan 20

Jan 21

Jan 22

Jan 23

Jan 24

Jan 25
Operating leverage may support further margin expansion
Capacity utilisation of key industries in India Capacity utilisation on the rise with room for further improvement
100 (%) FY24 FY25CL FY26CL 90 (%) Capacity utilisation 15 yr average
93
89 90 90
90 87 87

80 80
75 74 73
70 71
70
70

60 70

50

40 60

30

50
20

10

40
0

Dec 10

Dec 11

Dec 12

Dec 13

Dec 14

Dec 15

Dec 16

Dec 17

Dec 18

Dec 19

Dec 20

Dec 21

Dec 22

Dec 23
Cement Steel Refineries based on Coal based thermal
Indian demand power

Source: Bloomberg, RBI, CLSA

22
      
Development: India earnings growth is strong
2y EPS Cagr

45
42.0

40

35

30 28.6

25
22.0

20

14.3
15 13.1
12.0 11.4 10.8 10.3 9.8 9.1
10 8.3 8.0
6.9 6.8

5 3.0 2.3
0.7
0
Indonesia

Thailand
Korea

Singapore
South Africa

Mexico

Philippines

Malaysia

HK
Taiwan

USA
India

Brazil

Japan

Germany

UK

France
China
Source: Bloomberg, CLSA

23
      
Dependability: Stable earnings growth for India
80 (%) 2021 2022 2023 2024F 2025F
67.2

59.5
60
50.5
45.1

40 36.0 37.0
30.7
26.4
20.7
20 16.9 15.6
13.8 13.0
9.3
5.5

(8.7)
(14.6)
(20)
(24.2) (22.7)

(31.2)
(40)
Korea South Africa Taiwan India

Source: Bloomberg, CLSA

24
      
 25
0.60
0.65
0.70
0.75
0.80
0.85
0.90
0.95
1.00
1.05
1.10
Jan 08
May 08
Sep 08
Jan 09

Source: CLSA, Bloomberg

May 09
Sep 09
Jan 10
Beta of Nifty wrt to EM

May 10
Sep 10
Jan 11
May 11
Sep 11
Jan 12
May 12
Sep 12
Jan 13
May 13
Sep 13

 
Jan 14

 
May 14
Sep 14
Jan 15
May 15
Sep 15
Jan 16
May 16

  
Sep 16
Jan 17
May 17
Sep 17
Jan 18
May 18
Sep 18
Jan 19
May 19
Sep 19
Jan 20
May 20
Sep 20
Jan 21
May 21
Sep 21
Jan 22
May 22
Sep 22
Jan 23
May 23
Sep 23
Dependability: Beta of Nifty vs EM continues to come down

Jan 24
May 24
Sep 24
Depth: Indian equity market is fourth biggest in the world
Mcap

70 (US$tn)

58.8
60

50

40

30

20

10 8.2
6.8
5.0 5.0
3.4 3.3 3.2 2.7 2.5 2.4 1.8 1.7 0.8 0.8 0.5 0.4 0.4 0.4 0.3 0.2
0

Indonesia

Thailand
Korea

Singapore
Canada

Mexico

South Africa

Philippines
Malaysia
USA

HK

Saudi Arabia
Japan

India

UK

France

Germany

Taiwan

Brazil
China

Australia
Source: Bloomberg, CLSA

26
      
Depth provides plethora of large and liquid opportunities
Indian market is fairly liquid among global peers India fourth highest market by no. of stocks >US$5bn
5,000 No. of stocks with 3m ADTV > US$5m 1,400 No. of stocks with Mcap > US$5bn
4,656
1,257
4,500
1,200
4,000

3,500 1,000

3,029
3,000
800

2,500

600
2,000
427
1,500 400

1,000 220
650 193
547 501 200
424 108 106
500 74
255 73 71 67 66
169 166 135 54
97 83 80 33

0 0

USA

Taiwan

Korea
Japan

France

Australia
UK
Canada
India

Germany
China

HK

Saudi Arabia
USA

Korea

Taiwan
Japan

Australia

France
UK
Canada
India
China

HK

Germany
Saudi Arabia

Source: Bloomberg, CLSA

27
      
Diversity: Most sectors have relevant presence in India
Concentration of each sector across emerging market economies

South South Saudi

Indonesia Malaysia Thailand Philippinese Russia Mexico
Sector EM China Taiwan India Korea Brazil Africa Arabia
Financials 22.1 17.0 12.1 25.2 10.7 27.8 35.8 46.3 62.8 40.3 8.9 27.3 38.6 17.7
Information Technology 23.3 5.9 77.1 11.0 48.2 0.8 NA 2.5 NA 2.0 5.8 NA NA NA
Consumer Discretionary 13.0 29.2 1.5 12.9 9.3 2.7 20.0 0.7 2.7 5.0 8.2 4.4 1.3 NA
Communication Services 9.0 21.4 2.0 3.3 5.1 1.9 5.1 10.0 8.9 8.0 9.7 4.0 10.1 10.2
Materials 7.1 3.5 3.1 8.4 5.7 16.6 23.1 19.5 7.7 7.8 9.1 NA 47.1 19.4
Industrials 7.0 5.1 2.5 9.4 12.5 8.3 1.9 NA 4.9 7.9 9.7 35.6 NA 13.7
Consumer Staples 5.5 4.7 1.3 7.7 2.0 8.3 8.7 2.9 8.0 11.7 11.4 3.6 3.0 35.0
Energy 5.3 4.1 0.2 11.0 1.0 21.2 1.2 8.2 3.5 1.4 15.7 NA NA NA
Health Care 3.2 3.9 0.2 2.1 5.1 2.4 2.3 3.9 1.5 2.9 11.3 NA NA NA
Utilities 2.9 2.8 NA 4.9 0.4 10.0 NA 5.5 NA 13.3 5.6 3.9 NA NA
Real Estate 1.6 2.4 0.2 1.2 NA NA 1.9 0.6 NA NA 4.7 21.3 NA 4.0

Note: MSCI country index is used as proxy for each market. Source: CLSA, Bloomberg

28
      
Diversity: Sector & stock concentration is the lowest in EMs
India’s sector concentration is lowest vs other EMs Indian index is not highly skewed toward a particular sector
100 (%) Weight of top 2 sectors 12 No. of sectors with more than 5% weight
89.1
90 85.6
10.0
10
80
71.7
70 65.7 8.0
62.8 8
60.7
58.9 7.0 7.0
60
52.7 53.6
50.6 6.0 6.0
49.0
50 45.4
6
5.0 5.0 5.0 5.0
40 38.0
4.0
4
30 27.1
3.0 3.0

20 2.0
2

10

0 0

Philippinese

Taiwan
Taiwan

Philippinese

Malaysia
Malaysia

EM

South Africa

Russia
Mexico
Russia

India

Indonesia
South Africa

China
Indonesia

Mexico

EM

India

Thailand

South Korea
China

Saudi Arabia
Saudi Arabia

South Korea

Thailand

Brazil
Brazil

Source: Bloomberg, CLSA

29
      
 30
4
6
8
10
12
14
16
18
20
22
Dec 10

(%)
Apr 11
Aug 11

Source: Bloomberg, CLSA

Dec 11
Apr 12
Aug 12
Dec 12
Apr 13
Aug 13
Dec 13
Apr 14
Aug 14
Dec 14
Apr 15
Aug 15

 
Dec 15

 
Apr 16
Aug 16
Dec 16
Apr 17
Weight of India in EM benchmark

Aug 17
Dec 17

  
Apr 18
Aug 18
Dec 18
Apr 19
Aug 19
Dec 19
Apr 20
FPI ownership in BSE 500

Aug 20
Dec 20
Apr 21
FII ownership in Indian market is at a record low

Aug 21
Dec 21
Apr 22
Aug 22
Dec 22
Apr 23
Aug 23
Dec 23
Apr 24
Aug 24
A major share of active FII funds are not O-WT India
Only about 40% of the FII funds are O-WT India Non-India dedicated funds dominate the FII flows into India
India dedicated Non-India dedicated funds
100

90

80

Neutral
21% 70

60

93.1 92.5 90.8

93.9 94.2
O-WT
50
43%

40

30
U-WT
36%
20

10

0
Dec 20 Dec 21 Dec 22 Dec 23 Jul 24

Source: Bloomberg, CLSA

31
      
 32
10

3
4
5
6
7
8
9
Mar 08
Sep 08

(%)
Mar 09
Sep 09
Mar 10
Sep 10

Source: Bloomberg, CLSA

Mar 11
Sep 11
Mar 12
Sep 12
Mar 13
Sep 13
Mar 14
Sep 14
DMF ownership at lifetime high

Mar 15
Sep 15
Mar 16
Sep 16
Mar 17
Sep 17
Mar 18
DMF ownership in BSE 500

Sep 18
Mar 19
Sep 19
Mar 20
Sep 20

 
Mar 21

 
Sep 21
Mar 22
Sep 22
Mar 23
Sep 23
Mar 24
9.5

  
10.0

7.0
7.5
8.0
8.5
9.0
9.5

Mar 08
Sep 08
(%)

Mar 09
Sep 09
Domestic investors: From boys to men

Mar 10
Sep 10
Mar 11
Sep 11
Mar 12
Sep 12
Mar 13
Sep 13
Mar 14
Sep 14
Mar 15
Sep 15
Mar 16
Sep 16
Mar 17
Individual ownership is also at record high

Sep 17
Mar 18
Sep 18
Individual ownership in BSE 500

Mar 19
Sep 19
Mar 20
Sep 20
Mar 21
Sep 21
Mar 22
Sep 22
Mar 23
Sep 23
Mar 24
8.6
Domestic investors: Could further gain muscle in the long run
Number of demat accounts in India touched new high Indian household wealth in equities is low vs other countries
160 (No.) 45 (%) % of household wealth invested in equities (incl ETFs)
123

140 40

35
120
110

30
100
90
25
80
20

60 55
15
41
40 36
32 10
28
25
22 23
20 21
17 19
20 5

0 0
United UK South France Canada Japan Australia Germany India
FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY24

States Africa

Source: NSDL, CSDL, CLSA

33
      
Near term view

For important disclosure information please refer to the last page of this presentation.

      

Near term view: Extreme valuation + Extended sentiment
 India is the most expensive market in the world on absolute valuation plus relative to
history on PE multiples

 Equity valuation versus bonds also at levels which have historically led to depressed
1-2 year absolute returns on equity

 Proprietary India bull-bear index is at an extended bullish reading: This has

historically led to some kind of a pull back and/or a period of low return

 Narrative in 2HCY2024 will be very different versus the first half - leadership has
changed materially as Modi stocks have become laggards from leaders

 Defensive sectors have dominated after the underwhelming election results

 Upcoming state elections, potential US rate cuts are the key near-term events
35
      
India’s 12-month forward PE is way above +1sd
23 (x) One-year forward PE 19 yr average +1sd -1sd

21

19

17

15

13

11

7
Jun 06

Jun 07

Jun 08

Jun 09

Jun 10

Jun 11

Jun 12

Jun 13

Jun 14

Jun 15

Jun 16

Jun 17

Jun 18

Jun 19

Jun 20

Jun 21

Jun 22

Jun 23

Jun 24
Source: Bloomberg, CLSA

36
      
India is the most expensive market
35 Min Max Current 12-month forward PE 19Y avg

30

25

20

15

10

0
Thailand

Indonesia

Singapore

Korea
South Africa

Mexico
Philippines
Malaysia
USA

Russia

HK
Taiwan
India

Germany

France

UK

Japan

Brazil

China
Source: Bloomberg, CLSA

37
      
Bond yield - Earning yield is above the danger zone
3 (%) 10yr Gsec bond yld - Nifty 12M forward earnings yld 19Y average +2level

(1)

(2)

(3)

(4)

(5)

(6)
Jun 05

Jun 06

Jun 07

Jun 08

Jun 09

Jun 10

Jun 11

Jun 12

Jun 13

Jun 14

Jun 15

Jun 16

Jun 17

Jun 18

Jun 19

Jun 20

Jun 21

Jun 22

Jun 23

Jun 24
Source: Bloomberg, CLSA

38
      
India equities vs bond is one of the most extended globally
Country Current percentile BY-EY current reading Does the BY-EY relationship work ?
Countries for which BY-EY is a good indicator of equity returns
USA 94.4 (1.1) Yes
Mexico 94.2 1.3 Yes
UK 90.9 (4.6) Yes
France 90.7 (4.9) Yes
India 90.6 2.1 Yes
Germany 86.8 (5.7) Yes
Japan 82.1 (5.9) Yes
South Africa 57.9 1.2 Yes
Thailand 41.7 (4.5) Yes
Phillippines 13.3 (2.9) Yes
China 4.9 (11.5) Yes
Countries for which BY-EY is not a good indicator of equity returns
Taiwan 95.5 (4.4) No
Korea 76.2 (5.9) No
Singapore 15.6 (6.4) No
Indonesia 15.4 (1.0) No
Malaysia 13.2 (3.5) No
Brazil 6.3 (1.9) No
HK 3.9 (9.8) No
Source: Bloomberg, CLSA

39
      
CLSA India Bull-Bear Index: Extreme bullish sentiment
India Bull-Bear Index at various market tops and bottoms
India Bull-Bear Index 100 Bull-Bear Index Nifty Top Nifty Bottom 90% bullish 90% bearish
90
80

Bearish Bullish 70

sentiment
60
sentiment 50
40
30
20
10

0 100 0

Jan 07

Jan 08

Jan 09

Jan 10

Jan 11

Jan 12

Jan 13

Jan 14

Jan 15

Jan 16

Jan 17

Jan 18

Jan 19

Jan 20

Jan 21

Jan 22

Jan 23

Jan 24
Extreme Extreme
Bearish Bullish
India Bull-Bear Index is in extreme bullish zone

Bearish 50 Bullish 88.1 100

90
Bull-Bear Index Nifty Top Nifty Bottom 90% bullish 90% bearish

80
Neutral 70
60
50
40
30
20
10
0

Mar 20

Jul 20

Mar 21

Mar 22

Mar 23

Mar 24
Nov 20

Jul 21

Nov 21

Jul 22

Nov 22

Jul 23

Nov 23

Jul 24
Jan 20

May 20

Sep 20

Jan 21

May 21

Sep 21

Jan 22

May 22

Sep 22

Jan 23

May 23

Sep 23

Jan 24

May 24

Sep 24
Source: CLSA, Bloomberg

40
      
 41
13,000
14,000
15,000
16,000
17,000
18,000
19,000
20,000
21,000
22,000
23,000
24,000
25,000
26,000
Dec 20

Feb 21

Source: Bloomberg, CLSA

Mar 21

Apr 21

May 21

Jun 21

Aug 21

Sep 21

Oct 21

Nov 21

Dec 21

Jan 22

Feb 22

Apr 22

 
 
May 22

Jun 22

Jul 22

Aug 22

Sep 22

Nov 22

  
Dec 22

Jan 23

Feb 23

Mar 23

May 23

Jun 23

Jul 23

Aug 23

Sep 23

Oct 23

Nov 23

Jan 24

Feb 24

Mar 24

Apr 24

May 24

Jun 24

Aug 24
Bullish & bearish sentiment across different levels of the Nifty

Sep 24
Modi stocks have not fallen while other stocks joined the rally
Modi basket outperformed Nifty before election . . . . . . and now the non-Modi stocks have joined the rally
160 Nifty TR Modi Stocks Other stocks 120 Nifty TR Modi Stocks Other stocks

150 115

110
140

105
130

100
120

95

110

90

100
85

1 Jul 24

8 Jul 24

2 Sep 24
3 Jun 24

15 Jul 24

22 Jul 24

29 Jul 24

5 Aug 24
10 Jun 24

17 Jun 24

24 Jun 24

12 Aug 24

19 Aug 24

26 Aug 24
90
Nov 23 Dec 23 Jan 24 Feb 24 Mar 24 Apr 24 May 24

Source: Bloomberg, CLSA

42
      
IT, healthcare & FMCG outperformed Nifty post election
Performance since election result

35

30 28.6

24.4
25

20
17.1

15 12.7
10.2 9.7
10
6.8
6.0
5 3.1

0
(1.7)
(5) (3.5) (3.6)
(4.5)
(6.1) (7.2)
(10)

Nifty

Realty
IT

Midcap index

PSU
Healthcare

Metal
Smallcap index

Power
Auto
FMCG

Telecom

Oil & Gas

Banks

Cap goods
Source: Bloomberg, CLSA

43
      
Bottom-up opportunities - GARP
M&M APOLLO HS: Tata Cons:
PWGR
Low profit (cagr: +12%), (cagr: +49%), High profit (cagr:
(cagr: +6%),
growth/ High (10y: +83% ) (10y: +26% ) growth/ High +30%),
(10y: +71% )
Valuation Valuation
65 premium premium TechM:
BJAUT (cagr: +56%),
TAMO ICICIBC
(10y: +65% )
(cagr: -3%), 55
(10y: +54% ) SUNP ADSEZ Bharti:
NTPC (cagr: +99 %),
HMCL
45 SBIN (10y: +43% )
Tata Steel:
HCLT
35 LT (cagr: +68%),
(10y: +33% )
WPRO TTAN
GRASIM: 25 UTCEM
(cagr: -5%), Net profit cagr (FY26 NEST LTIM
over FY24) INFO BRIT Nifty
(10y: +16%) SHFL
15
TCS CIPLA
APNT COAL AXSB Reliance
5 EIM
DRRD ITC HUVR
SBILIFE BAF
HNDL
(5) BJFIN
MSIL
ONGC
(15)
BPCL:
(cagr: -26%), Valuation HDFCB
(10y: -4% ) (25) KMB HDFCLIFE
premium/(discou
nt) to 10y avg
(35)
- 5.0 10.0 15.0 20.0 25.0 30.0
IndusInd Bank:
Low profit growth/ (cagr: +14%), High profit growth/
Low Valuation prem (10y: -42% ) Low Valuation prem
or (disc) or (disc)

Source: Bloomberg, CLSA

44
      
CLSA’s India focus portfolio

For important disclosure information please refer to the last page of this presentation.

      

3.5 years of CLSA’s India portfolio
 Started in Jan’21 with 10-15 large and liquid stocks that marry top-down views with
bottom-up stock calls.

 The portfolio is up 219% versus Nifty at 86% in 3.5 years.

 Our portfolio has outperformed Nifty in 14 of 15 quarters since inception.

 Average holding period is 13 months with a strike rate of 72%.

 YTD outperformance stands at 7.3ppt.

 Our key O-WT sectors are financials, energy and IT while industrials and consumer
discretionary sectors remain our key U-WT.

 Given extended sentiment, we have kept portfolio beta low at this time.
46
      
 47
50
100
150
200
250
300
350
Dec 20
Jan 21
Feb 21

Source: Bloomberg, CLSA

Mar 21
Apr 21
May 21
Jun 21
Jul 21
Aug 21
Sep 21
Oct 21
Nov 21
Dec 21
Jan 22
Feb 22
Mar 22

 
Apr 22

 
May 22
Jun 22
Jul 22
Aug 22
CLSA India focus portfolio

Sep 22
Oct 22
Nov 22

  
Dec 22
Jan 23
Feb 23
Mar 23
Nifty Index

Apr 23
May 23
Jun 23
Jul 23
Aug 23
Sep 23
Oct 23
Nov 23
Dec 23
Jan 24
Feb 24
Mar 24
Apr 24
May 24
Jun 24
Performance of CLSA India portfolio vs Nifty since inception

Jul 24
Aug 24
86%
219%
 48
0
20
40
60
80
100
120
140
160

(40)
(20)
CLSA India portfolio 133.1

(ppt)
ONGC 121.2

ICICI Bank 42.6

Hindalco 22.8

HCL Tech 20.4

SBI life 11.4

Infosys 11.3

ITC 6.0

¹ Former constituents of the portfolio. Source: Bloomberg, CLSA

Reliance (6.1)

IndusInd (9.7)

Axis Bank (14.0)

CLSA India Focus Portfolio O-PF/(U-PF) to Nifty

HDFC Bank (22.4)

 
 
Tata Motors¹ 137.4

L&T¹ 107.1

NTPC¹ 70.2

SBI¹ 70.1

GAIL¹ 48.8

Hindalco¹ 47.0

  
Tata Steel¹ 45.5

DLF¹ 40.3

Sun Pharma¹ 36.9

Sun Pharma1¹ 31.7

M&M¹ 29.8
CLSA India portfolio picks since inception

UltraTech1¹ 25.0

DLF1¹ 21.8

Reliance¹ 19.0

Ultratech2¹ 17.2

Torrent Pharma¹ 11.6

Dr Reddy¹ 10.5

HCL Tech¹ 8.3

ICICI Pru Life¹ 4.2

BPCL¹ 0.3

HDFC Life¹ (5.4)

HCL Tech1¹ (7.2)

Eicher motors¹ (7.6)

Infosys¹ (9.8)

Bharti Airtel¹ (10.2)

Our portfolio has outperformed 7.3ppts YTD in 2024 . . .
CLSA India Focus Portfolio O-PF/(U-PF) to Nifty YTD
(ppts)
40
35.1

30
24.4 24.0

20 16.8
12.1
10 7.7 7.3 6.0 5.7
3.3
1.0
0
(2.2)
(10) (7.0) (7.7)
(10.4)

(20)
(19.8)

(30) (27.4)

(40)
ONGC HCL SBI Life Infosys CLSA ITC ICICI Reliance Hindalco Axis HDFC IndusInd Sun ICICI BPCL¹ GAIL¹ L&T¹
Tech India Bank Bank Bank Pharma¹ Pru¹
focus
portolfio
¹ Removed from the portfolio in CY2024-TD. Source: Bloomberg, CLSA.

49
      
. . . and 3.4ppts in 3QCY24-to-date
CLSA India Focus Portfolio 3QCY24-TD O-PF/(U-PF) to Nifty

30 (ppts)

25 23.3

20
17.6
16.5
14.3
15

10 8.8

5 3.4

(5) (3.1)

(6.6)
(7.6) (7.6)
(10)
(10.2)
(12.2)
(15)
SBI Life Infosys HCL Tech ITC ONGC CLSA India ICICI Bank HDFC Bank IndusInd Bank Hindalco Reliance Axis Bank
focus Industries
portolfio
Source: Bloomberg, CLSA

50
      
CLSA India focus portfolio has been a consistent performer
CLSA India Focus Portfolio O-PF/(U-PF) vs the Nifty index on a quarterly basis
(ppt)
16
14.8

14

12

10

8
6.1
6
4.7 4.9
4.5 4.8
4.1
3.7
4 3.4
2.5 2.7
2.0
2
0.2 0.1
0
(0.6)
(2)

(4)
Q1CY21 Q2CY21 Q3CY21 Q4CY21 Q1CY22 Q2CY22 Q3CY22 Q4CY22 Q1CY23 Q2CY23 Q3CY23 Q4CY23 Q1CY24 Q2CY24 Q3CY24-
TD

Source: Bloomberg, CLSA

51
      
Our current portfolio holdings and their valuation matrix
Current portfolio constituents
Stock Ticker 3M Market cap PE(x) PB(x) ROE Current Target Upside
ADTO (US$bn) price (Rs) (%)
(US$m) FY25 FY26 FY25 FY26 FY25 FY26 (Rs)

Reliance Industries RELIANCE IB 242 242 27.1 23.3 2.3 2.1 8.8 9.5 2,929.9 3,300 12.6

HDFC Bank HDFCB IB 495 150 18.5 15.9 2.5 2.2 14.4 14.9 1,637.0 1,725 5.4

ICICI Bank ICICIBC IB 244 104 19.8 17.4 3.1 2.7 16.8 16.7 1,208.5 1,500 24.1

Infosys INFO IB 165 96 30.4 27.5 9.6 9.1 30.5 34.0 1,902.2 1,747 (8.2)

ITC ITC IB 94 77 27.9 24.7 8.5 8.6 30.8 34.6 501.7 524 4.5

HCL Tech HCLT IB 66 58 28.3 25.6 7.1 6.9 24.8 27.3 1,754.2 1,556 (11.3)

Axis Bank AXSB IB 154 44 14.3 12.4 2.0 1.8 15.3 15.2 1,159.2 1,400 20.8

Oil & Natural Gas ONGC IB 96 47 8.5 7.8 1.1 1.0 13.0 13.1 308.9 330 6.8

Hindalco HNDL IB 59 18 11.0 10.4 1.3 1.1 12.1 11.4 667.2 760 13.9

SBI Life SBILIFE IN 30 23 81.2 68.4 11.2 9.8 14.7 15.3 1,896.3 1,885 (0.9)

IndusInd Bank IIB IS 76 13 11.5 9.9 1.6 1.4 14.3 14.7 1,409.35 1,800 27.4

Priced as of 6 September. Source: Bloomberg, CLSA

52
      
Low churn : Avg holding period - 13 months
Historic portfolio constituents
Stock name Entry date Exit date Holding Price on date of Exit price Dividend TSR Nifty return for same Outperformance/
Period addition to period (Underperformance)
portfolio (in ppts)
Larsen & Toubro 31-Dec-20 4-Jun-24 42 1,288 3,409 70 170.2 63.1 107.1
Sun Pharma 28-Apr-23 5-Apr-24 11 988 1,609 - 62.9 26.0 36.9
ICICI Pru Life 13-Oct-23 5-Apr-24 6 523 620 - 18.6 14.4 4.2
Gail 22-Feb-23 3-Jan-24 11 96 162 4 73.9 25.1 48.8
BPCL 3-May-22 3-Jan-24 20 183 231 27 40.6 32.9 7.7
Eicher Motors 22-Feb-23 9-Aug-23 6 3,250 3,413 - 5.0 12.6 (7.6)
DLF 20-Jun-22 11-Jul-23 13 299 500 3 68.4 28.1 40.3
HCL Tech 7-Oct-22 11-Jul-23 9 958 1,115 48 21.4 13.1 8.3
Ultratech 7-Oct-22 27-Apr-23 7 6,204 7,501 - 20.9 3.7 17.2
HDFC Life 7-Oct-22 27-Apr-23 7 527 518 - (1.7) 3.7 (5.4)
Infosys 31-Dec-20 21-Mar-23 27 1,256 1,391 63 15.7 25.5 (9.8)
NTPC 31-Dec-20 21-Mar-23 27 99 177 17 95.8 25.5 70.2
State Bank of India 31-Dec-20 7-Oct-22 22 275 530 11 96.9 26.8 70.1
Hindalco 31-Dec-20 7-Oct-22 22 241 411 7 73.8 26.8 47.0
Mahindra & Mahindra 23-Mar-21 7-Oct-22 19 845 1,239 20 49.1 19.4 29.8
Tata Steel 31-Dec-20 7-Oct-22 22 64 103 8 72.3 26.8 45.5
Dr. Reddy's labs 28-Jan-22 6-Jul-22 5 4,219 4,390 30 4.8 (5.8) 10.5
Reliance Industries 28-Jan-22 3-May-22 3 2,336 2,780 0 19.0 0.0 19.0
Sun Pharma 31-Dec-20 7-Apr-22 15 592 931 15 59.6 27.9 31.7
Torrent Pharma 23-Mar-21 4-Jan-22 10 1,230 1,595 40 32.9 21.3 11.6
Tata Motors 31-Dec-20 4-Jan-22 12 184 490 0 166.3 28.9 137.4
Bharti Airtel 31-Dec-20 2-Jul-21 6 500 515 0 3.0 13.2 (10.2)
HCL Tech 31-Dec-20 24-May-21 5 936 933 20 1.8 9.0 (7.2)
Ultratech 31-Dec-20 23-Mar-21 3 5,288 6,939 0 31.2 6.2 25.0
DLF 31-Dec-20 23-Mar-21 3 233 298 0 28.0 6.2 21.8
Average 13

Source: Bloomberg, CLSA

53
      
Banks, IT and energy have highest weightings in our portfolio
35 (%)
32.9

30

25

20.9
20
18.2

15

10.9
10 9.3
7.9

- - - - - - -
0
IT NBFC Energy Banks Materials Staples Auto Utilities Health care Industrials Comm. Discretionary Real estate
services ex auto

Source: Bloomberg, CLSA

54
      
Industrials and consumer discretionary are the key U-WTs
20 (ppts)

16.1

15

9.9
10
7.2

5
2.5 2.3

0
(0.5)
(1.2)
(3.3)
(5)
(4.9) (5.1) (5.4)

(10) (8.7) (8.9)

(15)
IT NBFC Energy Banks Materials Staples Auto Utilities Health care Industrials Comm. Discretionary Real estate
services ex auto

Source: Bloomberg, CLSA

55
      
Join us in Mumbai for our India Forum in November

56
      
Companies mentioned
Axis Bank (AXSB IB - RS1,159.2 - O-PF) ITC (ITC IB - RS501.6 - O-PF)
Bharat Petro (BPCL IB - RS352.2 - U-PF) L and T Tech (N-R)
Bharti Airtel (BHARTI IS - RS1,539.2 - O-PF) Larsen & Toubro (LT IB - RS3,574.2 - O-PF)
DLF (DLFU IB - RS814.5 - HLD) Mahindra (MM IB - RS2,697.1 - HLD)
Dr Reddy's (DRRD IB - RS6,669.8 - U-PF) NTPC (NTPC IS - RS394.8 - O-PF)
Eicher Motors (EIM IS - RS4,748.0 - U-PF) Oil & Natural Gas (ONGC IB - RS308.9 - O-PF)
Gail (GAIL IB - RS222.9 - U-PF) Reliance Industries (RELIANCE IB - RS2,929.8 - O-PF)
HCL Tech (HCLT IB - RS1,754.2 - HLD) SBI Life (SBILIFE IN - RS1,903.0 - O-PF)
HDFC Bank (HDFCB IB - RS1,637.0 - HLD) Shriram Finance (SHFL IN - RS3,235.7 - O-PF)
HDFC Life Insurance (HDFCLIFE IN - RS739.9 - O-PF) State Bank of India (SBIN IB - RS782.6 - O-PF)
Hindalco (HNDL IB - RS667.1 - O-PF) Sun Pharma (SUNP IB - RS1,823.3 - HLD)
ICICI Bank (ICICIBC IB - RS1,208.5 - O-PF) Tata Motors (TTMT IB - RS1,048.7 - O-PF)
ICICI Prudential Life (IPRU IN - RS750.5 - HLD) Tata Steel (TATA IB - RS151.2 - U-PF)
Indusind (N-R) Torrent Pharma (TRP IB - RS3,417.0 - HLD)
Infosys (INFO IB - RS1,902.2 - HLD) UltraTech (UTCEM IS - RS11,415.0 - HLD)

57
      
Important notices
Analyst certification
The analyst(s) of this report hereby certify that the views expressed in this research report accurately reflect my/our own personal views about the securities and/or the issuers and that no part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendation or views contained in this
research report.

Important disclosures
CLSA (“CLSA”) in this report refers to CLSA Limited, CLSA Americas, LLC, CLSA Australia Pty Ltd, CLSA India Private Limited, PT CLSA Sekuritas Indonesia, CLSA Securities Japan Co., Ltd., CLSA Securities Korea Ltd., CLSA Securities Malaysia Sdn. Bhd., CLSA Philippines, Inc, CLSA Singapore Pte Ltd, CLSA Securities (Thailand)
Limited, CLSA (UK), CLSA Europe B.V. and/or their respective affiliates. CLST (“CLST”) in this report refers to CL Securities Taiwan Co., Ltd.
The policies of CLSA and CLST are to only publish research that is impartial, independent, clear, fair, and not misleading. Regulations or market practice of some jurisdictions/markets prescribe certain disclosures to be made for certain actual, potential or perceived conflicts of interests relating to a research report as below. This
research disclosure should be read in conjunction with the research disclaimer as set out hereof and at www.clsa.com/disclaimer.html, the Terms and Conditions of Use as set out at https://www.clsa.com/terms-and-conditions-of-use/ and the applicable regulation of the concerned market where the analyst is stationed and
hence subject to. Investors are strongly encouraged to review this disclaimer before investing.
Neither analysts nor their household members or associates may have a financial interest in, or be an officer, director or advisory board member of companies covered by the analyst unless disclosed herein. In circumstances where an analyst has a pre-existing holding in any securities under coverage, those holdings are
grandfathered and the analyst is prohibited from trading such securities.
The analysts included herein hereby confirm that they have not been placed under any undue influence, intervention or pressure by any person/s in compiling this research report. In addition, the analysts attest that they were not in possession of any material, non-public information regarding the subject company that has
securities listed in the relevant jurisdiction(s) at the time of publication of this report. (For full disclosure of interest for all companies covered by CLSA in this report, please refer to http://www.clsa.com/member/research_disclosures/ for details.)
As analyst(s) of this report, I/we hereby certify that the views expressed in this research report accurately reflect my/our own personal views about the securities and/or the issuers and that no part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendation or views contained in this
report or to any investment banking relationship with the subject company covered in this report (for the past one year) or otherwise any other relationship with such company which leads to receipt of fees from the company except in ordinary course of business of the company. The analyst/s also state/s and confirm/s that
he/she/they has/have not been placed under any undue influence, intervention or pressure by any person/s in compiling this research report. In addition, the analysts included herein attest that they were not in possession of any material, non-public information regarding the subject company that has securities listed in the
relevant jurisdiction(s) at the time of publication of this report. The analysts further confirm that none of the information used in this report was received from CLSA's Corporate Finance department or CLSA's and/or CLST's Sales and Trading business. Save from the disclosure below (if any), the analyst(s) is/are not aware of any
material conflict of interest.
Key to CLSA/CLST investment rankings: From 6pm (HK time) on 28 June 2024: Outperform (O-PF): Total stock return (TSR) expected to exceed or be equal to 10%; Hold (HLD): Total stock return expected to be below 10% but more than or equal to negative 10%; Underperform (U-PF): Total stock return expected to be
below negative 10%. TSR is up/downside to 12-month target price plus dividend. Up to 6pm (HK time) on 28 June 2024: BUY: Total stock return (including dividends) expected to exceed 20%; O-PF (aka ACCUMULATE): Total expected return below 20% but exceeding market return; U-PF (aka REDUCE): Total expected return
positive but below market return; SELL: Total return expected to be negative. For relative performance, we benchmark the 12-month total forecast return (including dividends) for the stock against the 12-month forecast return (including dividends) for the market on which the stock trades.
"High Conviction" Ideas are not necessarily stocks with the most upside/downside, but those where the Research Head/Strategist believes there is the highest likelihood of positive/negative returns. The list for each market is monitored weekly.
According to the key to CLSA/CLST investment rankings effective from 6pm (HK time) on 28 June 2024: Overall rating distribution for CLSA (exclude CLST) only Universe: Outperform - CLSA: 72.61%, Hold - CLSA: 18.39%, Underperform - CLSA: 9.00%, Restricted - CLSA: 0.39%; Data as of 28 June 2024. Investment banking
clients as a % of rating category: Outperform - CLSA: 14.60%, Hold - CLSA: 1.03%, Underperform - CLSA: 1.03%; Restricted - CLSA: 0.39%. Data for 12-month period ending 28 June 2024. Overall rating distribution for CLST only Universe: Outperform - CLST: 79.66%, Hold - CLST: 8.47 %, Underperform - CLST: 11.86%,
Restricted - CLST: 0.00%. Data as of 28 June 2024. Investment banking clients as a % of rating category: Outperform - CLST: 0.00%, Hold - CLST: 0.00%, Underperform - CLST: 0.00%, Restricted - CLST: 0.00%. Data for 12-month period ending 28 June 2024. For purposes of regulatory disclosure only, our Outperform rating
falls into a buy rating category; our Hold rating falls into a hold rating category; and our Underperform rating falls into a sell rating category.
According to the key to CLSA/CLST investment rankings effective up to 6pm (HK time) on 28 June 2024: Overall rating distribution for CLSA (exclude CLST) only Universe: BUY / Outperform - CLSA: 72.61%, Underperform / SELL - CLSA: 27.39%, Restricted - CLSA: 0.39%; Data as of 28 June 2024. Investment banking clients
as a % of rating category: BUY / Outperform - CLSA: 14.60%, Underperform / SELL - CLSA: 2.05%; Restricted - CLSA: 0.39%. Data for 12-month period ending 28 June 2024. Overall rating distribution for CLST only Universe: BUY / Outperform - CLST: 79.66%, Underperform / SELL - CLST: 20.34%, Restricted - CLST: 0.00%.
Data as of 28 June 2024. Investment banking clients as a % of rating category: BUY / Outperform - CLST: 0.00%, Underperform / SELL - CLST: 0.00%, Restricted - CLST: 0.00%. Data for 12-month period ending 28 June 2024. There are no numbers for Hold/Neutral as CLSA/CLST do not have such investment rankings.
For a history of the recommendation, price targets and disclosure information for companies mentioned in this report please write to: CLSA Group Compliance, 18/F, One Pacific Place, 88 Queensway, Hong Kong and/or; CLST Compliance (27/F, 95, Section 2 Dun Hua South Road, Taipei 10682, Taiwan, telephone (886) 2
2326 8188). EVA® is a registered trademark of Stern, Stewart & Co. "CL" in charts and tables stands for CLSA estimates, “CT” stands for CLST estimates, "CRR" stands for CRR Research estimates and “CS” for CITIC Securities estimates unless otherwise noted in the source.
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or IBES. Additional information on data sources for specific charts or tables can be obtained by contacting the publishing analysts.
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Investment in securities market are subject to market risks. Read all the related documents carefully before investing. 08/09/2024

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