Britannia Industries. Change in Estimates: Chg (%) FY17E Chg (%)

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1 2016 Equirus All rights reserved Rating Information Price (Rs) 2,634 Target Price (Rs) 3,546 Target Date 31 st Mar'17 Target Set On 11th Feb'16 Implied yrs of growth (DCF) 20 Fair Value (DCF) 2,292 Fair Value (DDM) 1,761 Ind Benchmark BSETMCG Model Portfolio Position LONG Stock Information Market Cap (Rs Mn) 316,016 Free Float (%) % 52 Wk H/L (Rs) 3435/1900 Avg Daily Volume (1yr) 218,260 Avg Daily Value (Rs Mn) 595 Equity Cap (Rs Mn) 240 Face Value (Rs) 2 Bloomberg Code BRIT IN Ownership Recent 3M 12M Promoters 50.7 % 0.0 % 0.0 % DII 27.8 % 19.0 % 18.6 % FII 0.0 % % % Public 21.4 % -0.8 % 0.5 % Price % 1M 3M 12M Absolute % % 33.9 % Vs Industry 0.6 % 88.7 % -0.6 % GSK Con -6.2 % -2.7 % 1.3 % Nestle India -4.1 % % % Standalone Quarterly EPS forecast Rs/Share 1Q 2Q 3Q 4Q EPS (15A) EPS (16E) Britannia Industries Absolute : LONG Relative : Overweight 3QFY16 Result: Estimate( ), TP( ),Rating ( ) Regular Coverage 31% ATR in 14 Months Strong volume growth momentum continues, Price hikes to protect margins, Maintain LONG Britannia Industries (BIL) reported consolidated revenue growth of 10% which was 2% below Equirus estimates (EE). Our channel checks indicate that volume growth during the quarter would have been in the range of ~11%-12%. Gross margins for the company improved by ~226bps on a yoy basis mainly driven by lower raw material prices. EBIDTAM for the quarter stood at 14.4%, 10bps lower than EE. We continue to remain positive on BIL and believe that the company would remain one of the preferred plays in the FMCG space given the strong volume growth momentum and improving margins. We broadly maintain our EPS estimates for FY17E/18E and retain our LONG rating on the stock with a Mar 17 TP of Rs. 3,546 (40x FY17 EEPS of Rs. 88.6). Standalone sales in-line with estimates, EBIDTAM higher than estimates by 20bps due to lower raw material costs: BIL reported standalone sales growth of 11% during 3QFY16 in-line with EE with revenues of Rs. 20.5bn (volume growth is ~11%). Sales growth is likely to have been affected by ~100bps on account of phasing out of excise duty benefits. Excise duty benefits moving out also led to margins lower by ~60bps asduring the quarter. EBIDTAM for 3QFY16 stood at 14.7% higher by 18bps against EE with standalone EBIDTA increasing by 55% on a yoy basis and stood at Rs. 3.02bn. Profit for the quarter stood at Rs. 2.04bn vs. our expectation of Rs. 2.02bn and was in-line with EE. BIL plans to maintain ad-spends in the range of 7.5-8% for FY16E. Subsidiary sales growth was disappointing; EBIDTAM at 10.6% due to operating leverage not coming in: Sales from the 3 major subsidiaries for the company were higher by 5.3% with international business growing at a healthy pace while dairy business declined as compared to the previous year. EBIDTAM for the quarter stood at 10.6% lower by ~340bps as compared to the previous year on account of operating leverage not coming in. Gross margins declined on a qoq basis by ~53bps. Ad-spend stood at 17% of sales for the subsidiaries and were higher by 20% on a yoy basis. Recent increase in commodity prices to be offset by price hikes during FY17 resulting in stable gross margins while new facilities should help in achieving operating efficiencies: Wheat, Sugar and Cashew prices which are some of the key raw materials has seen a sharp increase in prices over the last 3-4 months (blended impact currently at 3-3.5%). We believe that the recent increase in commodity basket would be dealt by taking selective price hikes either (we mentioned the same in our previous update note) by way of reducing promotions or price hikes in select SKU s thereby protecting gross margins for FY17. We also believe that the commissioning of two new manufacturing plants along with new plants coming in FY17/18 would lead to cost savings at EBIDTA level thereby further improving margins. Change in Estimates: Rs. Mn FY16E Packaged Food Chg (%) FY17E Chg (%) Sales 87,807-2% 100,343-2% EBITDA 12,778-2% 15,321-1% EPS % % Consolidated Financials Rs. Mn YE Mar FY15A FY16E FY17E FY18E Sales 78,584 87, , ,140 EBITDA 8,639 12,778 15,321 18,316 Depreciation 1,445 1,126 1,300 1,400 Interest Expense Other Income 880 1,065 1,119 1,464 Reported PAT 6,886 8,576 10,630 12,911 Recurring PAT 5,426 8,679 10,630 12,911 Total Equity 12,451 17,949 24,518 31,784 Gross Debt 1,402 1, Cash 6,672 8,115 11,381 19,118 Rs Per Share FY15A FY16E FY17E FY18E Earnings Book Value Dividends FCFF P/E (x) P/B (x) EV/EBITDA (x) ROE (%) 53 % 57 % 50 % 46 % Core ROIC (%) 57 % 73 % 67 % 73 % EBITDA Margin (%) 11 % 15 % 15 % 16 % Net Margin (%) 7 % 10 % 11 % 11 % February 12, 2016Analyst:DhavalDama dhaval.dama@equirus.com ( / ) Page 1 of 10 Before reading this report, you must refer to the disclaimer on the last page.

2 Key Highlights of conference call: 1. The company has reported healthy volume growth of around 11% during the quarter, given the sluggish business environment. The industry growth should be around %. 2. BIL has put a lot of efforts to increase its distribution network. During 9MFY2015, the company added 0.19mn outlets to its dealer network. The current reach of BIL is 3.6mn outlets far behind than Parle with 6.7mn outlets, leaving ample scope for the company to grow. 3. Further on dealer network, BIL has applied its split route model in 105 towns, where two salesmen visits a store and book orders for two split section of portfolio and had yielded good return for the company 4. In rural areas, BIL has about 8,000 distributors in villages with population of more than 5,000 and sales grew by around 35% for 9MFY BIL has increased its focus on the Hindi belt of the country and on the continuous efforts the company has registered double digit growth in these weaker states. In specific, BIL has been able to grow by 20% in most of the states. Gujarat, MP, Rajasthan and UP; in these states BIL has witnessed good movement in revenues and market shares. 6. On marketing perspective, BIL is taking lot of efforts which are yielding very encouraging results; some of the initiatives are promotions in FilmFare, Title name of Bahubali movie under BIL, actor Surya for Milk Bikis, etc. 7. Innovation: BIL continues to remain on track with constant innovation in its product portfolio. One of the recent launches have been in Pure Magic brand where BIL has come up with DEUCE product which is a very unique product. The test marketing is being done in Bangalore and received warm responses for the product Mega Brands: BIL continues to focus highly on the five big brands, which results in optimum utilization of funds which has benefitted a lot to the company. 9. Relaunches in Good Day portfolio has actually boosted the growth rates of the brand by around 40%. Further relaunch of Tiger in the weaker states has resulted in strong growth for the company. 10. Based on all the above efforts, the company has gained market share and currently is the market leader in the industry (by narrow margin of around 100bps). 11. Continued efforts on efficiency has resulted decline in trade discount for the dealers and distributors by around 25%-30% in the last three years. 12. BIL indicated that the raw materials like flour; cashews; and sugar constitute around 45% of the total COGS and the prices have started increasing of these key components. To mitigate the increase in raw material prices, management indicated that the company plans to offset the increase by higher efficiencies and also pricing action. On pricing action, it could be either by lowering promotional offers; reducing gramage or by increasing prices directly. 13. The company expects inflation in the raw material prices (current year) to be around % and BIL has already started to deal with it. 14. On improving the supply chain management, the company has taken a lot of efforts. A new factory in TN has been started recently and has started producing goods for the company. A factory and a R&D facility at Bangalore are under process and are expected to commence operation in a months time. BIL has also finalized a plot in AP & Guwahati and are looking for opportunities in the regions like Kandla and Maharashtra. 15. The company has set an ambitious target to achieve a turnover of Rs 200bn in next 5 years. The growth will be from the existing portfolio and further fueled by entry in adjacent portfolios. 16. Management has guided a capex to be around Rs bn without the dairy business for FY16E and FY17E. 17. International business has been doing well for the company during the 9MFY2016. February 12, 2016 Analyst:DhavalDama dhaval.dama@equirus.com ( / ) Page 2 of 10

3 Quarterly Result Table (Consolidated) Q3FY16 Q3FY16E Q2FY16 Q3FY15 % Change Q3FY16E Q2FY16 Q3FY15 Comments Net Sales 22,402 22,791 22,087 20,333-2% 1% 10% In-line with EE Raw materials including packaging materials consumed 11,053 10,834 10,899 10,327 2% 1% 7% Purchase of stock-in-trade 1,871 2,137 1,773 1,864-12% 6% 0% Conversion and other related charges 1,275 1,365 1,209 1,302-7% 5% -2% Employee benefits expense % 4% 20% Other expenses 2,285 2,456 2,286 2,259-7% 0% 1% Advertisement and sales promotion 1,839 1,813 1,847 1,669 1% 0% 10% Total Expenditures % 2% 6% 42.6% 40.0% EBITDA % -1% 47% In-line with EE Depreciation % 3% -14% EBIT 2,939 2,998 2,978 1,870-2% -1% 57% Interest % -21% 19% Other Income % -9% 40% PBT 3,202 3,154 3,265 2,056 2% -2% 56% Tax 1, , % -5% 82% PAT before MI & Associates % 0% 46% Minority Interest % Profit from Assoc % Recurring PAT 2,178 2,198 2,186 1,494-1% 0% 46% In-line with EE Extraordinaries % Bonus provision made for 9MFY15 Reported PAT 2,075 2,198 2,186 1,373-6% -5% 51% EPS (Rs) % 0% 46% EBITDA Margin 14.4% 14.5% 14.7% 10.8% -10 bps -34 bps 357 bps EBIT Margin 13.1% 13.2% 13% 9% -4 bps -36 bps 392 bps PBT Margin 14.3% 13.8% 15% 10% 45 bps -49 bps 418 bps PAT Margin 9.3% 9.6% 10% 7% -39 bps -64 bps 251 bps Tax Rate 32.0% 30.3% 33% 27% 167 bps -106 bps 460 bps Marginally lower than EE largely due to lower than expected gross margins which was offset by lower than expected other operating expenditures February 12, 2016 Analyst:DhavalDama dhaval.dama@equirus.com ( / ) Page 3 of 10

4 Company Snapshot How we differ from Consensus EPS Sales PAT Key Estimates: - Equirus Consensus % Diff Comment FY16E % Our estimates are higher than consensus FY17E FY16E FY17E , , , ,435 5 % -1 % -2 % as we believe that the company will be able to improve its EBIDTA margins unless there is a significant reduction in prices by competitors FY16E 8,576 8,321 3 % FY17E 10,630 10,113 5 % In RsMn FY11 FY12 FY13 FY14 FY15 FY16E FY17E FY18E Biscuits 36,041 41,924 46,758 53,145 59,248 68,298 77,923 88,552 Breads 4,081 4,952 6,018 6,774 7,638 8,737 10,075 11,506 Cakes & Rusk 1,936 2,713 3,108 3,043 3,408 3,897 4,418 4,964 Others Dairy 2,188 2,935 3,095 2,993 3,293 3,622 3,984 4,382 EBIDTA 2,367 3,109 4,206 6,272 8,639 12,778 15,321 18,316 PAT 1,344 1,995 2,595 3,954 5,426 8,679 10,630 12,911 Risk to Our View: Volatility of commodity prices could lead fluctuations in raw material cast. Increasing competitive intensity could lead to price wars thereby reduce margins going forward. Economic slowdown & high inflation Key Triggers Stable raw material prices. Increasing demand for premium products. Sensitivity to Key Variables % Change % Impact on EPS Raw Material -1 % 10 % DCF Valuations & Assumptions Rf Beta Ke Term. Growth Debt/IC in Term. Yr 7.5 % % 3.0 % 4.1 % - FY16E FY17E FY18-20E FY21-25E FY26-35E Sales Growth 12 % 14 % 13 % 11 % 9 % NOPAT Margin 9 % 10 % 10 % 9 % 9 % IC Turnover RoIC 72.9 % 66.7 % 89.5 % 98.5 % 97.5 % Years of strong growth Valuation as on date (Rs) 890 1,036 1,234 1,575 2,046 Valuation as of Mar, ,161 1,383 1,764 2,292 Based on DCF, assuming 20 years of 13% CAGR growth and 62% average ROIC, we derive current fair value of Rs. 2,046 and 31 s t March 2017 fair value of Rs. 2,292. Company Description: Headquartered in Kolkata, Britannia industries Ltd is India s biggest & most pre-eminent brand in the country. The Company's principal activity is to manufacture and sale of biscuits, bread, rusk, cakes and dairy products. Britannia s offering includes no. of products ranging from economical & healthy categories to life style oriented categories. The company is well recognized for its innovative approach in the development & marketing of products. Comparable valuation Mkt Cap Price Target EPS P/E BPS P/B RoE Div Yield Company Reco. CMP Rs. Mn. Target Date FY15A FY16E FY17E FY15A FY16E FY17E FY15A FY16E FY15A FY16E FY17E FY15A FY16E Britannia Industries LONG 2, ,016 3,546 31st Mar' % 57 % 50 % 0.6 % 0.8 % GSK Con NR 5, ,882 NR NR % 39 % 0.9 % 1.0 % Nestle India NR 5, ,006 NR NR % 59 % 47 % 1.2 % 1.2 % February 12, 2016 Analyst:DhavalDama dhaval.dama@equirus.com ( / ) Page 4 of 10

5 Standalone Quarterly Earnings Forecast and Key Drivers Rs in Mn 1Q15A 2Q15A 3Q15A 4Q15A 1Q16A 2Q16A 3Q16A 4Q16E 1Q17E 2Q17E 3Q17E 4Q17E FY15A FY16E FY17E FY18E Revenue 16, ,174 18,523 18,720 18,471 20,329 20,497 20,967 20,826 22,936 23,487 24,496 71,760 80,264 91, ,338 Raw materials including packaging materials consumed 8,236 8,939 8,955 9,545 8,831 9,617 9,657 9,854 9,892 10,895 11,109 11,587 35,675 37,959 43,483 49,143 Purchase of stock-in-trade 1,797 2,088 2,231 1,378 1,911 2,128 2,251 2,264 2,187 2,408 2,466 2,572 7,493 8,553 9,633 10,955 Conversion and other related charges 1,342 1,586 1,620 1,470 1,458 1,515 1,606 1,552 1,541 1,697 1,715 1,788 6,018 6,131 6,741 7,512 Employee benefits expense ,768 2,086 2,477 2,661 Other expenses 1,773 1,932 1,929 1,951 1,810 1,952 1,919 1,992 1,916 2,110 2,161 2,254 7,584 7,673 8,441 9,390 EBITDA 1,578 1,965 1,942 2,212 2,595 3,024 3,018 3,103 3,166 3,486 3,640 3,797 7,715 11,740 14,089 16,851 Depreciation , ,000 1,080 EBIT 1,332 1,714 1,687 1,791 2,386 2,818 2,805 2,873 2,916 3,236 3,390 3,547 6,542 10,881 13,089 15,771 Interest Other Income ,051 1,119 1,464 PBT 1,525 1,895 1,889 2,079 2,566 3,115 3,062 3,177 3,147 3,504 3,670 3,870 7,406 11,919 14,192 17,218 Tax ,078 1, ,086 1,138 1,200 2,602 3,975 4,399 5,338 Recurring PAT 1, ,326 1,450 1,678 2,037 2,038 2,192 2,172 2,418 2,532 2,670 4,804 7,944 9,792 11,880 Extraordinary 0-1, , Reported PAT 1,078 2,530 1,205 1,410 1,678 2,037 1,935 2,192 2,172 2,418 2,532 2,670 6,224 7,841 9,792 11,880 EPS (Rs) Key Drivers Sequential Growth (%) Revenue -1 % 11 % 2 % 1 % -1 % 10 % 1 % 2 % -1 % 10 % 2 % 4 % Raw materials including packaging materials consumed -3 % 9 % 0 % 7 % -7 % 9 % 0 % 2 % 0 % 10 % 2 % 4 % EBITDA -4 % 25 % -1 % 14 % 17 % 17 % 0 % 3 % 2 % 10 % 4 % 4 % EBIT -10 % 29 % -2 % 6 % 33 % 18 % 0 % 2 % 1 % 11 % 5 % 5 % Recurring PAT -3 % -14 % 42 % 9 % 16 % 21 % 0 % 8 % -1 % 11 % 5 % 5 % EPS -3 % -14 % 42 % 9 % 16 % 21 % 0 % 8 % -1 % 11 % 5 % 5 % Yearly Growth (%) Revenue 15 % 13 % 14 % 13 % 13 % 12 % 11 % 12 % 13 % 13 % 15 % 17 % 70 % 12 % 14 % 14 % EBITDA 22 % 28 % 31 % 34 % 64 % 54 % 55 % 40 % 22 % 15 % 21 % 22 % 233 % 52 % 20 % 20 % EBIT 17 % 25 % 27 % 21 % 79 % 64 % 66 % 60 % 22 % 15 % 21 % 23 % 250 % 66 % 20 % 20 % Recurring PAT 25 % -3 % 38 % 30 % 56 % 119 % 54 % 51 % 29 % 19 % 24 % 22 % 231 % 65 % 23 % 21 % EPS 24 % -3 % 37 % 30 % 56 % 119 % 54 % 51 % 29 % 19 % 24 % 22 % 229 % 65 % 23 % 21 % Margin (%) EBITDA 10 % 11 % 10 % 12 % 14 % 15 % 15 % 15 % 15 % 15 % 16 % 16 % 11 % 15 % 15 % 16 % EBIT 8 % 9 % 9 % 10 % 13 % 14 % 14 % 14 % 14 % 14 % 14 % 14 % 9 % 14 % 14 % 15 % PBT 9 % 10 % 10 % 11 % 14 % 15 % 15 % 15 % 15 % 15 % 16 % 16 % 10 % 15 % 15 % 17 % PAT 7 % 5 % 7 % 8 % 9 % 10 % 10 % 10 % 10 % 11 % 11 % 11 % 7 % 10 % 11 % 11 % February 12, 2016 Analyst:DhavalDama dhaval.dama@equirus.com ( / ) Page 5 of 10

6 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 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 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 Consolidated Financials P&L (Rs Mn) FY15A FY16E FY17E FY18E Balance Sheet (Rs Mn) FY15A FY16E FY17E FY18E Cash Flow (Rs Mn) FY15A FY16E FY17E FY18E Revenue 78,584 87, , ,140 Equity Capital PBT 8,035 12,679 15,123 18,364 Op. Expenditure 69,945 75,028 85,023 95,824 Reserve 12,211 17,709 24,279 31,544 Depreciation 1,445 1,126 1,300 1,400 EBITDA 8,639 12,778 15,321 18,316 Networth 12,451 17,949 24,518 31,784 Others -2, Depreciation 1,445 1,126 1,300 1,400 Long Term Debt 1,402 1, Taxes Paid 3,015 4,001 4,493 5,452 EBIT 7,194 11,653 14,021 16,916 Def Tax Liability Change in WC 1, Interest Expense Minority Interest Operating C/F 5,845 10,147 12,627 14,983 Other Income 880 1,065 1,119 1,464 Account Payables 7,034 7,423 8,035 9,089 Capex 463-5,898-4,800-1,600 PBT 8,035 12,679 15,123 18,364 Other Curr Liabi 6,766 7,635 8,725 9,512 Change in Invest -5, Tax 2,611 4,001 4,493 5,452 Total Liabilities & Equity 27,933 34,192 41,964 51,069 Others PAT bef. MI & Assoc. 5,424 8,679 10,630 12,911 Net Fixed Assets 8,441 11,815 15,015 14,915 Investing C/F -4,503-5,128-4,800-1,600 Minority Interest Capital WIP Change in Debt Profit from Assoc Others 2,279 3,391 3,691 3,991 Change in Equity Recurring PAT 5,426 8,679 10,630 12,911 Inventory 4,040 4,520 5,166 6,041 Others -1,714-3,334-4,061-5,646 Extraordinaires -1, Account Receivables 1,358 1,540 1,759 2,001 Financing C/F -1,814-3,575-4,561-5,646 Reported PAT 6,886 8,576 10,630 12,911 Other Current Assets 4,659 4,811 4,952 5,003 Net change in cash ,444 3,266 7,737 FDEPS (Rs) Cash 6,672 8,115 11,381 19,118 RoE (%) 53 % 57 % 50 % 46 % DPS (Rs) Total Assets 27,934 34,192 41,963 51,069 RoIC (%) 46 % 52 % 48 % 45 % CEPS (Rs) Non-cash Working Capital -3,742-4,187-4,884-5,555 Core RoIC (%) 57 % 73 % 67 % 73 % FCFPS (Rs) Cash Conv Cycle Div Payout (%) 36 % 36 % 38 % 44 % BVPS (Rs) WC Turnover P/E EBITDAM (%) 11 % 15 % 15 % 16 % FA Turnover P/B PATM (%) 7 % 10 % 11 % 11 % Net D/E P/FCFF Tax Rate (%) 32 % 32 % 30 % 30 % Revenue/Capital Employed EV/EBITDA Sales Growth (%) 14 % 12 % 14 % 14 % Capital Employed/Equity EV/Sales FDEPS Growth (%) 37 % 60 % 22 % 21 % Dividend Yield (%) 0.6 % 0.8 % 1.1 % 1.5 % TTM P/E vs. 2 yr forward EPS growth TTM EV/EBITDA vs. 2 yr forward EBITDA growth TTM P/B vs. 2 yr forward RoE EPS Growth 60% 40x 48% 36% 32x 24% 24x 12% 16x 0% -12% 8x -24% EBITDA Growth 50% 25x 40% 20x 30% 15x 20% 10x 10% 0% 5x RoE 70% 60% 50% 40% 30% 18x 15x 12x 9x 6x February 12, 2016 Analyst:DhavalDama dhaval.dama@equirus.com ( / ) Page 6 of 10

7 Historical Consolidated Financials P&L (Rs Mn) FY12A FY13A FY14A FY15A Balance Sheet (Rs Mn) FY12A FY13A FY14A FY15A Cash Flow (Rs Mn) FY12A FY13A FY14A FY15A Revenue 34,212 37,729 46,094 78,584 Equity Capital PBT 1,782 1,394 1,872 2,666 Op. Expenditure 31,832 36,101 43,727 69,945 Reserve 6,975 2,589 3,021 12,211 Depreciation EBITDA 2,380 1,629 2,367 8,639 Networth 7,214 2,828 3,260 12,451 Others Depreciation ,445 Long Term Debt 2,748 6,570 6,179 1,402 Taxes Paid EBIT 1,721 1,046 1,718 7,194 Def Tax Liability , Change in WC Interest Expense Minority Interest Operating C/F 2,503 2,377 2,965 2,461 Other Income Account Payables 1,276 1,615 2,718 7,034 Capex -1, ,431 PBT 1,782 1,394 1,872 8,035 Other Curr Liabi 3,544 4,100 2,533 6,766 Change in Invest ,492 Tax ,611 Total Liabilities & Equity 14,919 15,133 16,188 27,933 Others PAT bef. MI & Assoc. 1,252 1,338 1,342 5,424 Net Fixed Assets 4,705 4,993 5,049 8,441 Investing C/F ,180-1,269 Minority Interest Capital WIP Change in Debt Profit from Assoc Others 1,070 1,050 2,774 2,279 Change in Equity Recurring PAT 1,335 1,339 1,344 5,426 Inventory 2,887 3,042 3,470 4,040 Others ,965-1,126-1,313 Extraordinaires Account Receivables ,358 Financing C/F -1,127-2,229-1,658-1,684 Reported PAT 1,515 1,032 1,344 6,886 Other Current Assets 1,792 2, ,659 Net change in cash 1, EPS (Rs) Cash 3,662 3,103 3,230 6,672 RoE (%) 19 % 27 % 44 % 54 % DPS (Rs) Total Assets 14,919 15,133 16,188 27,934 RoIC (%) 16 % 16 % 16 % 20 % CEPS (Rs) Non-cash Working Capital ,742 Core RoIC (%) 18 % 16 % 18 % 22 % FCFPS (Rs) Cash Conv Cycle Div Payout (%) 63 % 58 % 58 % 51 % BVPS (Rs) WC Turnover P/E EBITDAM (%) 7 % 4 % 5 % 6 % FA Turnover P/B PATM (%) 4 % 4 % 3 % 4 % Net D/E P/FCFF Tax Rate (%) 30 % 4 % 28 % 25 % Revenue/Capital Employed EV/EBITDA Sales growth (%) 23 % 10 % 22 % 19 % Capital Employed/Equity EV/Sales FDEPS growth (%) -21 % 0 % 0 % 49 % Dividend Yield (%) 1.5 % 0.9 % 0.2 % 0.3 % February 12, 2016 Analyst:DhavalDama dhaval.dama@equirus.com ( / ) Page 7 of 10

8 Equirus Securities Pankaj Sharma Executive Director /41 Research Analysts Sector/Industry Equity Sales AnirvanSarkar Banking & Financial Services VishadTurakhia Ashutosh Tiwari Auto, Metals & Mining VibhorRastogi DevamModi Power & Infrastructure Sweta Sheth DhavalDama FMCG, Mid-Caps Dealing Room Maulik Patel Oil and Gas Ashish Shah Nimish Mehta Pharma IIleshSavla UmeshRaut Industrials JigarChokshi Associates NiravPrajapati Manoj Gori SandipAmrutiya Meet Chande Compliance Officer Pranav Mehta Smita Sharma Rahil Shah Raj Kantawala Ram Varun Vikas Jain Rating & Coverage Definitions: Absolute Rating LONG : Over the investment horizon, ATR >= Ke for companies with Free Float market cap >Rs 5 billion and ATR >= 20% for rest of the companies SHORT: ATR <= negative 5% over investment horizon TRADE: Stocks that do not meet the criteria for either LONG or SHORT Relative Rating OVERWEIGHT: Likely to outperform the benchmark by at least 5% over investment horizon BENCHMARK: likely to perform in line with the benchmark UNDERWEIGHT: likely to under-perform the benchmark by at least 5% over investment horizon Target Price and Investment Horizon Target Price is a point value for stocks with Absolute rating of LONG or SHORT and a range value for stocks rated TRADE. Investment Horizon is set at a minimum 3 months to maximum 15 months with target date falling on last day of a calendar quarter. Lite vs. Regular Coverage vs. Spot Coverage We aim to keep our rating and estimates updated at least once a quarter for Regular Coverage stocks. Generally, we would have access to the company and we would maintain detailed financial model for Regular coverage companies. We intend to publish updates on Lite coverage stocks only an opportunistic basis and subject to our ability to contact the management. Our rating and estimates for Lite coverage stocks may not be current. Spot coverage is meant for one-off coverage of a specific company and in such cases, earnings forecast and target price are optional. Spot coverage is meant to stimulate discussion rather than provide a research opinion. Registered Office: Equirus Securities Private Limited Unit No. 1201, 12th Floor, C Wing, Marathon Futurex, N M Joshi Marg, Lower Parel, Mumbai Tel. No: +91 (0) Fax No: +91- (0) Corporate Office: 3rd floor, House No. 9, Magnet Corporate Park, Near Zydus Hospital, B/H Intas Sola Bridge, S.G. Highway Ahmedabad Gujarat Tel. No: +91 (0) Fax No: +91 (0) February 12, 2016 Analyst:DhavalDama dhaval.dama@equirus.com ( / ) Page 8 of 10

9 2016 Equirus Securities Private Limited. All rights reserved. For Private Circulation only. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Equirus Securities Private Limited Analyst Certification I, DhavalDama, author to this report, hereby certify that all of the views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Disclaimers Equirus Securities Private Limited (ESPL) having Corporate Identification Number U65993MH2007PTC is registered in India with Securities and Exchange Board of India (SEBI) as a trading member on the Capital Market (Reg. No. INB ), Futures & Options Segment (Reg. No.INF ) of the National Stock Exchange of India Ltd. (NSE) and on Cash Segment (Reg. No.INB ) of Bombay Stock Exchange Limited (BSE).ESPL is also registered with SEBI as Research Analyst under SEBI (Research Analyst) Regulations, 2014 (Reg. No. INH ). There are no disciplinary actions that have been taken by any regulatory authority. ESPL is a subsidiary of Equirus Capital Pvt. Ltd. (ECPL) which is registered with SEBI as Category I Merchant Banker. ESPL/its affiliates provide investment banking services including but not limited to Private Equity, Mergers & Acquisitions, Structured Finance and Institutional Equities. ESPL/its affiliates might have, managed or co-managed public offering of securities of the subject company or have received a mandate from the subject company or might have received compensation from the subject company for investment banking or brokerage services in the past twelve months. 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Thus, investors should be aware that the firm may have conflict of interest. Additional Disclaimer for U.S. Persons ESPL/its affiliates are not a registered broker dealer under the U.S. Securities Exchange Act of 1934, as amended (the 1934 act ) and under applicable state laws in the United States. In addition Equirus is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by Equirus, including the products and services described herein are not available to or intended for U.S. persons. The information contained in this Report is not intended for any person who is a resident of the United States of America or a resident of any jurisdiction, the laws of which imposes prohibition on soliciting the securities business in that jurisdiction without going through the registration requirements and/or prohibit the use of any information contained in this website. This Report and its respective contents does not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services and/or shall not be considered as an advertisement tool. "U.S. Persons" are generally defined as a natural person, residing in the United States or any entity organized or incorporated under the laws of the United States. US Citizens living abroad may also be deemed "US Persons" under certain rules. February 12, 2016 Analyst:DhavalDama dhaval.dama@equirus.com ( / ) Page 9 of 10

10 Disclosures Disclosure of Interest statement for the subject Company Yes/No If Yes, nature of such interest Analyst/ESPL/Associate/Relatives financial interest No Analyst/ESPL/Associate/Relatives actual/beneficial ownership of 1% or more No Analyst/ESPL/Associate/Relatives material conflict of interest No Whether ECPL managed any public offering in past 12 months No * Associate means individual who assist Analyst February 12, 2016 Analyst:DhavalDama dhaval.dama@equirus.com ( / ) Page 10 of 10