22ND ANNUAL WEALTH CREATION STUDY (2012 …

1 2 Thematic STUDY | December 201722ND ANNUAL WEALTH CREATION STUDY (20 12-20 17)HIGHLIGHTS Longevated profit growth companies are few. Understanding of Competitive Advantage Period (CAP) and Growth Advantage Period (GAP) improves the chances of finding them. Moat without growth will underperform; growth without moat will end soon. Longevity and speed of growth are inversely correlated. Three characteristics of CAP-cum-GAP companies are Clear strategy, High growth mindset, and High-growth industry situations. "The strategy is to find a good business and one that I can understand why it's good witha durable competitive advantage, run by able and honest people, and available at a pricethat makes sense.

2 Because we are not going to sell the business, we don't need somethingwith earnings that go up the next month or the next quarter; we need something that willearn more money 10 and 20 and 30 years from now." Warren Buffett, in Forbes Magazine's 100th Anniversary IssuePower of longevity in WEALTH CreationRaamdeo Agrawal / Shrinath Mithanthaya thank Mr Dhruv Mehta Investment Consultant, for his invaluable contribution to this are advised to refer through important disclosures made at the end of the Research & GAPTHE BIGGESTTHE FASTESTTHE MOST CONSISTENTW ealth5-YearAppeared10-YearRank CompanyCreatedCompanyPriceCompanyin WCPrice(INR b)CAGR (%) STUDY (x)CAGR (%)

3 1 TCS2,499 Ajanta Pharma96 Asian Paints10302 HDFC Bank2,315 KRBL88 Titan Company10273 Reliance Industries1,888 Bajaj Finance71 HDFC Bank10224 ITC1,594 Dalmia Bharat69 Kotak Mahindra Bank10225 Maruti Suzuki1,413 Symphony68 Bosch10216H D F C1,350 Alembic Pharma67 Sun Pharma10217I O C L1,219 Eicher Motors67 Dabur India10198 Hindustan Unilever1,081 Natco Pharma64 ITC10199 Kotak Mahindra Bank1,050 Vakrangee64 Cummins India101710 HCL Technologies884 Aurobindo Pharma63 Axis Bank1017 TOP 10 WEALTH CREATORS ( 2012 -2017) 22nd ANNUAL WEALTH CREATION STUDY ( 2012 -2017) Motilal Oswal 22nd ANNUAL WEALTH CREATION STUDY Page WEALTH CREATION STUDY : Objective, Concept & Methodology.

4 1 WEALTH CREATION 2012 -17: Findings Summary .. 2-3 Theme 2018: CAP & GAP Power of longevity in WEALTH CREATION .. 4-37 WEALTH CREATION 2012 -17: Detailed Findings .. 38-51 Appendix 1: MOSL 100 Biggest WEALTH Creators .. 52-53 Appendix 2: MOSL 100 Fastest WEALTH Creators .. 54-55 Appendix 3: MOSL 100 WEALTH Creators (alphabetical) .. 56 Abbreviations and Terms used in this report Abbreviation / Term Description 2007, 2012 , 2017, etc Reference to years for India are financial year ending March, unless otherwise stated Avg Average CAGR Compound ANNUAL Growth Rate L to P / P to L Loss to Profit / Profit to Loss.

5 In such cases, calculation of PAT CAGR is not possible INR b Indian Rupees in billion Price CAGR In the case of aggregates, Price CAGR refers to Market Cap CAGR WC WEALTH Created WEALTH Created Increase in Market Capitalization over the last 5 years, duly adjusted for corporate events such as fresh equity issuance, mergers, demergers, share buybacks, etc. Note: Capitaline database has been used for this STUDY . Source of all exhibits is MOSL analysis, unless otherwise stated 8 December 2017 1 22nd ANNUAL WEALTH CREATION STUDY ( 2012 -2017) WEALTH CREATION STUDY Objective, Concept & Methodology Objective The foundation of WEALTH CREATION is to buy businesses at a price substantially lower than their "intrinsic value" or "expected value".

6 The lower the market value compared to the intrinsic value, the higher is the margin of safety. Every year, as in the past 22 years, we endeavor to cull out the characteristics of businesses that create value for their shareholders. As Phil Fisher says, "It seems logical that even before thinking of buying any common stock, the first step is to see how money has been most successfully made in the past." Our WEALTH CREATION studies are attempts to STUDY the past as a guide to the future, and gain insights into the various dynamics of stock market investing. Concept & Methodology WEALTH CREATION is the process by which a company enhances the market value of the capital entrusted to it by its shareholders.

7 It is a basic measure of success for any commercial venture. For listed companies, we define WEALTH Created as the difference in market capitalization over a period of last five years, after adjusting for equity dilution. We rank the top 100 companies in descending order of absolute WEALTH Created, subject to the company's stock price at least outperforming the benchmark index (BSE Sensex in our case). These top 100 WEALTH Creators are also ranked according to speed ( price CAGR during the period under STUDY ). Report structure We present the 2012 -2017 WEALTH CREATION STUDY highlights in pages 2-3. The detailed findings are presented in pages 38-51.

8 Appendix 1 (pages 52-53) ranks the top 100 WEALTH Creators by size, and Appendix 2 (pages 54-55) ranks the same 100 WEALTH Creators by speed. This year s theme STUDY titled CAP & GAP Power of longevity in WEALTH CREATION is featured in pages 4-37. 8 December 2017 2 22nd ANNUAL WEALTH CREATION STUDY ( 2012 -2017) WEALTH CREATION 2012 -2017 Highlights TCS is the Biggest WEALTH creator for the fifth time in a row TCS has emerged as the biggest WEALTH creator for the period 2012 -17, retaining the top spot it held in the previous four STUDY periods (2011-16, 2010-15, 2009-14 and 2008-13). Reliance Industries has muscled its way to after not featuring in the WEALTH Creators list in the previous STUDY .

9 Exhibit 1 Top 10 Biggest WEALTH Creators ( 2012 -17) Rank Company WEALTH Created CAGR (%) P/E (x) RoE (%) INR b % share Price PAT 2017 2012 2017 2012 1 TCS 2,499 16 20 19 22 30 35 2 HDFC Bank 2,315 23 24 24 23 17 17 3 Reliance Inds 1,888 12 10 14 13 11 11 4 ITC 1,594 13 11 33 29 22 32 5 Maruti Suzuki 1,413 35 32 31 26 16 10 6 H D F C 1,350 17 15 22 18 18 23 7 Indian Oil 1,219 24 13 9 6 20 18 8 Hind. Unilever 1,081 17 11 45 34 64 71 9 Kotak Mahindra 1,050 26 22 33 22 13 14 10 HCL Tech 884 29 29 15 14 26 25 Total of Top 10 15,292 19 16 20 18 18 17 Total of Top 100 38,927 100 22 15 22 16 17 18 Ajanta Pharma is the Fastest WEALTH creator for the third time in a row Ajanta Pharma has emerged as the Fastest WEALTH creator for the third time in a row, with 2012 -17 stock price multiplier of 29x (96% CAGR).

10 Eicher Motors is among the top 10 Fastest WEALTH Creators for the last 6 studies, and Bajaj Finance in the last 4. 5 of the 10 stocks were trading at single-digit P/E in 2012 . Exhibit 2 Top 10 Fastest WEALTH Creators ( 2012 -17) Rank Company Price Appn. CAGR (%) Mkt Cap (INR b) P/E (x) (x) Price PAT 2017 2012 2017 2012 1 Ajanta Pharma 29 96 45 155 5 31 7 2 KRBL 23 88 34 97 4 24 5 3 Bajaj Finance 15 71 35 646 34 35 8 4 Dalmia Bharat 14 69 13 175 12 62 8 5 Symphony 13 68 23 107 8 70 15 6 Alembic Pharma 13 67 25 118 9 29 7 7 Eicher Motors 13 67 42 695 54 42 19 8 Natco Pharma 12 64 52 148 11 30 19 9 Vakrangee 12 64 50 174 14 34 20 10 Aurobindo Pharma 11 63 65 396 35 17 19 Asian Paints is the Most Consistent WEALTH creator again Asian Paints is the Most Consistent WEALTH creator for the second time in succession by 1.