DABUR Going from strength to strength

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1 RESULT UPDATE DABUR Going from strength to strength India Equity Research Consumer Goods Dabur s Q1FY13 numbers were marginally ahead of our estimates, led by strong volume growth (domestic volume up 11.6% YoY against 5.0%, 8.0% and 9.5% in Q2FY12, Q3FY12 and Q4FY12). Key positives were: (i) strong volume growth in domestic business (despite impact of CSD sales); (ii) market share expansion in glucose, Amla hair oil, juices and Fem range; (iii) gross margin expansion after eight quarters of pressure; (iv) revival in shampoo growth; and (v) strong performance in foods portfolio. Key negatives were subdued growth in international business, muted growth in Babool and slowdown in Vatika (due to competitive pressure from coconut hair oils). We like Dabur s renewed aggression in ad spends, product innovation and packaging. Rural sales (though strong in Q1FY13) may get impacted by monsoon deficiency; however, we believe the company will benefit from its rural distribution ramp up. Maintain BUY. Robust growth; ad spends drive volume Dabur s consolidated Q1FY13 revenue surged 21.4% YoY to INR14.6bn; domestic business posted 16.1% YoY growth, led by a strong 11.6% volume growth. Gross margin expanded 222bps YoY to 50.3%. EBITDA margin remained flat (down 56bps) as gross margin benefit was passed to ad spends (up 307bps). PAT grew 17% YoY; profit margin declined 40bps YoY to 10.2%. Extraordinary loss of INR49mn occurred due to sale of 38.4% stake in Weikfield International (UAE), a loss making subsidiary (non core asset). Strong growth across categories The Consumer Care Division (CCD) posted robust performance with strong surge across categories hair care registering 10.4% YoY growth (shampoos revived with 23% YoY growth), oral care 8.1% YoY, health supplements 18% YoY, skin care 13.3% YoY, home care 14.4% YoY, digestives 9.8% YoY and OTC & ethicals 12.7% YoY. Foods posted strong growth of 34.5% YoY (led by 37.6% YoY growth in juices). International Business (IB) grew 24% YoY; key growth categories were shampoos, hair cream and toothpaste. EDELWEISS 4D RATINGS Absolute Rating Rating Relative to Sector Risk Rating Relative to Sector Sector Relative to Market BUY Outperformer Medium Equalweight MARKET DATA (R: DABU.BO, B: DABUR IN) CMP : INR 118 Target Price : INR week range (INR) : 120 / 92 Share in issue (mn) : 1,742.8 M cap (INR bn/usd mn) : 206/ 3,675 Avg. Daily Vol.BSE/NSE( 000) : 1,372.7 SHARE HOLDING PATTERN (%) Current Q4FY12 Q3FY12 Promoters % MF's, FI's & BK s FII's others * Promoters pledged share (% of share in issue) PRICE PERFORMANCE (%) Stock : Nil Nifty EW Consumer Goods Index 1 month months 4.2 (1.6) months 2.4 (6.3) 23.8 Outlook and valuations: Growing strong; maintain BUY At CMP, the stock is trading at 27.3x and 22.6x FY13E and FY14E, respectively. We maintain BUY recommendation with Sector Outperformer rating on the stock. Financials (INR mn) Year to March Q1FY13 Q1FY12 % change Q4FY12 % change FY12 FY13E FY14E Net sales 14,620 12, , ,832 62,382 74,058 EBITDA 2,158 1, ,244 (3.8) 8,902 10,669 12,677 Net profit 1,494 1, ,705 (12.4) 6,449 7,604 9,170 Dil. EPS (INR) (12.4) Diluted P/E (x) EV/EBITDA (x) ROAE (%) Edelweiss Research is also available on Bloomberg EDEL <GO>, Thomson First Call, Reuters and Factset. Abneesh Roy abneesh.roy@edelcap.com Hemang Gandhi hemang.gandhi@edelcap.com Pooja Lath pooja.lath@edelcap.com July 24, 2012 Edelweiss Securities Limited

2 Consumer Goods Table 1: Segment wise snapshot Growth Segment Y o Y(%) Key takeaways Q1FY13 Domestic business Hair Care 10.4 Hair oil saw moderated growth of 8.4% mainly due to slowdown in Vatika Hair oil Dabur Amla Hair oil grew at double digit and posted market share gain; Almond Hair Oil is doing well Health supplement 18.0 Vatika Hair oil performance was muted owing to high price differential with coconut oils; Company adopted a constant price strategy refusing to take margin hit Shampoos saw revival clocking growth of 23% YoY; Henna variant, its flagship product, was the best performer growing at 27.2% despite stiff competition Dabur Honey saw a strong growth across channels, regions and SKUs Dabur Glucose witnessed double digit growth and posted market share gains Food 34.5 Oral Care 8.1 Juices gained market share and grew at 37.6% with both Real and Active growing strong driven by new variants, Plum, Pomegranate and Super Berries; launched in the past quarter More variants and extension to flow in future; it is also enhancing third party capacity and focusing on Sri Lanka plant to meet growing demand Premium toothpastes, Meswak and Dabur Red toothpaste, grew in double digit despite higher pricing The discount brand (Babool) was an overhang on the segment due to intense competition; Dabur to improve margin broke the popular INR10 price point (major contributor of Babool sales) Dabur managed to maintain its market share in toothpastes Dabur Red toothpowder witnessed strong double digit growth Digestive 9.8 Skin Care 13.3 Hajmola tablets saw double digit growth backed by new flavors Pudin Hara which was backed by packaging and media initiatives saw robust growth Dabur Gulabari witnessed good performance owing to re launch and extensive marketing initiatives Dabur plans to focus on Uveda going ahead; will launch new products and develop newer channels Fem portfolio grew handsomely by 13.4%; gained market share in both bleach and hair removal Home Care 14.4 Odonil witnessed muted single digit growth across impacted by CSD issue Odomos reported good growth driven by activations and enhanced brand visibility Sanifresh saw robust growth due to restage OTC & Ethicals 12.7 OTC portfolio grew by 13.5% YoY; Lal Tail saw good growth Ethicals portfolio grew by 11.3% International division 24.0 International business (IB) posted 24% YoY growth with 12% constant currency growth Extraordinary loss of INR49mn occurred due to sale of 38.4% stake in (non core asset) Weikfield International (UAE) loss making subsidiary Key growth markets were GCC (grew 22% YoY), Nigeria (grew 21% YoY) and Egypt (grew 18% YoY) with shampoos, hair cream and toothpaste driving growth Namaste is facing slowdown (witnessed flattish growth) owing to (1) US market seeing slowdown in consumption and (2) re launch of brand from organic route stimulator to ORS Key conference call takeaways Source: Company, Edelweiss research Growth: Domestic business grew 16.1% led by 11.6% YoY spurt in volume. Step up in ad spends helped fuel growth. Dabur expects to clock 10% plus volume growth in FY13E. LUPs (INR10 Babool, INR1 Vatika sachet) contribute INR bn to overall sales. Rural sales continue to be ahead of urban, with the former contributing 46% to total revenue. Gross margin: Gross margin expanded 222bps YoY to 50.3% due to softening in raw material prices. 2 Edelweiss Securities Limited

3 Dabur Domestic performance: Domestic business contributed 68% to overall sales, up 16.1% YoY, led by strong 11.6% volume growth (rest pricing led). CCD and foods contribution to domestic revenue is 76% and 18%, respectively. CCD posted a healthy 12% YoY growth (8.5% volume led); however, volumes were impacted due to CSD issue (contributing 7% to CCD revenues). The CSD issue is likely to extend to the next quarter as well. CSD contributes 6% to overall domestic business with major exposure in hair oil (Amla), air fresheners, Chawanprash and little exposure in oral care and foods. Health supplements: Health supplements contributed 16% to CCD revenue, growing 18% YoY led by strong growth in Dabur Honey and Glucose. Dabur Honey posted strong growth across channels, regions and SKUs. Glucose posted double digit growth and has gained market share. Digestives: This business contributed 8% to CCD revenue; grew 9.8% YoY led by double digit growth in Hajmola backed by new flavours. Pudin Hara and Isapgol, which were earlier classified under OTC category, have been shifted to Digesties; Lal Tail has been reclassified into OTC from Digestives. Pudin Hara, which was backed by packaging and media initiatives, saw robust growth. OTC and Ethicals: This business contributed 11% to CCB revenue; grew 12.7%. OTC portfolio (63%) posted 13.5% growth with Lal Tail posting modest growth. Ethicals (37%) grew 11.3%. Hair oils: The category growth at 8.4% YoY moderated primarily due to slowdown in Vatika Hair oil owing to high price differential with coconut oils (benefitted from significant decline in coconut oil prices). The company adopted a constant price strategy refusing to take margin hit, which we believe may have some short term pain, but will benefit in the long term. Differentiated offerings like Dabur Amla Hair oil (grew in double digit and posted market share gain) and Almond hair oil posted robust growth. Perfumed oils grew 14% YoY predominantly due to structural shift in hair oils with consumers preferring lighter hair oils. This structural shift will also aid margin improvement as price increase in this segment does not impact volume growth. Shampoos: Shampoos revived, clocking growth of 23% YoY. Henna variant, its flagship product, was the best performer, growing at 27.2% despite high competitive environment. The segment is witnessing hardening in prices which has led to margin erosion (however better YoY). The company has increased prices significantly in bottles, though value pack (INR1) remains untouched as it is a major factor driving growth. Home care: This segment contributing 7% to CCD revenue posted 14.4% YoY growth, driven by Odomos reporting good growth driven by activations and enhanced brand visibility. Sanifresh posted robust growth due to restage. Odonil registered muted single digit growth across impacted by the CSD issue. Skin care: Skin Care grew 13.3% YoY. Dabur Gulabari witnessed good performance owing to relaunch and extensive marketing initiatives. Fem portfolio grew handsomely by 13.4% and gained market share in both bleach and hair removal segments; this growth is sustainable. Dabur plans to focus on Uveda going ahead; will launch new products and develop newer channels (currently only on ground support); it has a long gestation period before mass launch. Oral care: Oral Care grew 8.1% YoY with premium toothpastes, Meswak and Dabur Red toothpaste, growing in double digits despite higher pricing compared to Colgate. The discount brand (Babool) was an overhang on the segment due to intense competitive 3 Edelweiss Securities Limited

4 Consumer Goods pressure in this segment; Dabur, to improve margin, broke the popular INR10 price point (major contributor to Babool sales) for Babool which impacted growth. Dabur plans to add value to Babool by offering specialized offerings. The company managed to maintain market share in toothpastes. Management believes low teens growth is satisfactory for this category as it is well penetrated even in rural areas. Dabur Red toothpowder posted strong double digit growth. Foods: Foods business posted strong growth of 34.5% led by robust volume growth. Juices gained market share and grew at 37.6% with both Real and Active growing strong driven by new variants, Plum, Pomegranate and Super Berries, launched in the previous quarter. Dabur plans to launch more juice extensions and variants to add fresh taste to this category; it is also enhancing third party capacity and focusing on Sri Lanka plant to meet growing demand. Urban consumption contributes 90 95% to total sales in this low margin juice business. Margin pressure in foods business is likely to continue owing to rupee depreciation (70% of contents in juices are imported); volumes will continue to drive growth. Debt: Dabur has debt of USD135mn on its books. The cost of debt is % with 4 5 year repayment cycle. Forex loss of INR46mn owing to MTM losses were booked in the current quarter. International business: International business (IB) posted 24% YoY growth with 12% constant currency growth. Extraordinary loss of INR49mn occurred due to sale of 38.4% stake in (non core asset) Weikfield International (UAE), a loss making subsidiary. IB performance was impacted due to one off upfront expenses in Middle East; A&P spends are likely to cool off from current level, but will be maintained at high level. Key growth markets were GCC (grew 22% YoY), Nigeria (grew 21% YoY) and Egypt (grew 18% YoY). Shampoos, hair cream and toothpaste were key growth categories. Margin profile of existing business is better than newly acquired businesses. IB margin to see faster revival compared with domestic business. Namaste is facing slowdown (flattish growth) owing to: (a) slowdown in US market consumption; and (b) relaunch of brand from organic route stimulator to ORS leading to pipeline issues company drying up old stock before new products enter the market (reason being organic word registered in other countries which will pose problem to enter these geographies, mainly South Africa). The company is contemplating setting up a manufacturing plant in South Africa to benefit supply chain. 4 Edelweiss Securities Limited

5 Dabur Table 2: Consolidated segmental performance Year to March Revenues (INR mn) Q1FY13 Q1FY12 % growth Y o Y Q4FY12 % growth Q o Q Consumer care business 11,748 10, , Foods business 2,115 1, , Retail business Others Gross income (Excl other income) 14,620 12, , Year to March PBIT (INR mn) Consumer care business 2,397 2, ,595 (7.6) Foods business Retail business (24) (26) 8.7 (29) (18.1) Others , PBIT 2,751 2, ,882 (4.6) Year to March Margin Consumer care business Foods business Retail business (18.1) (31.3) (23.9) Others Margin Source: Company, Edelweiss research 5 Edelweiss Securities Limited

6 Consumer Goods Chart 1: Sales contribution Internatio nal 32% Chart 2: YoY sales growth rates (%) Domestic 68% Domestic International Chart 3: Domestic sales split others 6% foods 18% Chart 4: Consumer care Category contribution Skin Care 7% Home Care 7% OTC & Ethicals, 11 Hair Care 33% consumer care 76% Digestives 8% Health Suppleme nts 16% Oral Care 18% Chart 5: Consumer care Category growth rate Chart 6: International business growth rate (%) (13.0) (26.0) Hair Care Oral Care Health supplements Digestives Skin Care Home Care Foods OTC Ethicals Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 (%) GCC Egypt Nigeria Source: Company, Edelweiss research 6 Edelweiss Securities Limited

7 Dabur Financial snapshot (INR mn) Year to March Q1FY13 Q1FY12 % Change Q4FY12 % Change FY12 FY13E FY14E Net revenues 14,620 12, , ,832 62,382 74,058 Other operating income Total operating income 14,717 12, , ,054 62,637 74,352 Staff costs 1, ,874 4,554 5,391 Cost of goods sold 7,316 6, , ,852 31,569 37,325 Gross profit 7,401 5, , ,202 31,068 37,027 Advt. sales & promotions 2,292 1, , ,595 7,922 9,553 Other expenses 1,888 1, , ,831 7,922 9,405 Total exp. (excl. cogs) 5,242 3, , ,301 20,399 24,350 EBITDA 2,158 1, ,244 (3.8) 8,902 10,669 12,677 Depreciation & amortization (9.0) 1,032 1,186 1,396 EBIT 1,891 1, ,950 (3.0) 7,869 9,483 11,281 Other income EBIT including other income 2,136 1, ,140 (0.2) 8,443 10,088 12,039 Interest Profit before tax 1,923 1, ,083 (7.7) 7,905 9,470 11,449 Provision for taxes ,464 1,875 2,290 Core profit 1,546 1, ,706 (9.4) 6,441 7,595 9,159 PAT 1,496 1, ,706 (12.3) 6,441 7,595 9,159 Minority interest (2) (2) NA NA Reported net profit 1,494 1, ,705 (12.4) 6,449 7,604 9,170 No. of shares (mn) 1,743 1,741 1,741 1,742 1,743 1,743 Diluted EPS (INR) (12.3) As % of sales COGS Employee cost Other expenses Adv. & sales promotions EBITDA EBIT PBT Reported net profit Tax rate Edelweiss Securities Limited

8 Consumer Goods Company Description Dabur has two divisions in India (post integration of consumer care division and consumer health division) apart from its international operations. Consumer care division (CCD) offers a wide range of products in hair care, oral care, health supplements, digestives and candies, baby and skin care products, based on ayurveda, over the counter (OTC) products, Asavs, and branded ethical, and classic products. CHD division has been merged with CCD to leverage distribution. The second division, Dabur Foods Ltd produces fruit juices, cooking pastes, sauces, and items for institutional food purchases. Dabur is unique among its Consumer Goods peers because of its positioning as an Indian company whose products are derived from exotic sources such as ancient ayurvedic texts and natural ingredients such as herbs. The company has various brand leaders in different market segments Dabur Chyawanprash, a health tonic, and Hajmola a digestive tablet. Real, launched during , has also successfully carved its niche in the market. Investment Theme Dabur s broad product portfolio provides a good play on Indian FMCG spend by virtue of its strong presence in less penetrated and high growth categories. Dabur s positioning on the health and wellness platform, backed by its ANH (ayurvedic/natural/herbal) image is very progressive. This, combined with its demonstrated ability to create new categories and subcategories, makes it well placed to capture lifestyle changes led growth in the FMCG space. Dabur has also demonstrated its ability to make and integrate smart acquisitions (Balsara) that complement its product portfolio and thereby drive inorganic growth. Improvement in margins of foods and international businesses are expected to result in improvement in margins for the consolidated operations. Key Risks A slowdown in rural demand due to lower government spending or a monsoon failure could impact Dabur s revenues significantly. The company s products such as Dabur Chyawanprash and Dabur Lal Tail are prominently sold in the rural areas, and hence, depend on growth in rural demand. Further rise in competitive intensity in categories like Shampoo, Oral care, OTC and ethical may further put pressure on volumes. Management bandwidth post acquisition in various international geographies is a concern. 8 Edelweiss Securities Limited

9 Dabur Financial Statements Key Assumptions Year to March FY10 FY11 FY12 FY13E FY14E Macro GDP(Y o Y %) Inflation (Avg) Repo rate (exit rate) USD/INR (Avg) Company Volume growth (Domestic) Pricing change (Domestic) International business growth COGS as % of sales Income statement (INR mn) Year to March FY10 FY11 FY12 FY13E FY14E Net revenue 33,905 40,774 52,832 62,382 74,058 Other Operating Income Total operating income 34,143 41,045 53,054 62,637 74,352 Materials costs 15,507 19,375 26,852 31,569 37,325 Employee costs 2,847 3,087 3,874 4,554 5,391 Other Expenses 4,383 5,237 6,831 7,922 9,405 Advertisement & sales costs 4,935 5,346 6,595 7,922 9,553 EBITDA 6,470 8,000 8,902 10,669 12,677 Depreciation & Amortization ,032 1,186 1,396 EBIT 5,968 7,048 7,869 9,483 11,281 Other income Interest expenses Profit before tax 6,009 7,079 7,905 9,470 11,449 Provision for tax 985 1,390 1,464 1,875 2,290 Net profit before minority 5,024 5,689 6,441 7,595 9,159 Minority interest 8 (3) Profit after minority interest 5,032 5,686 6,449 7,604 9,170 Basic shares outstanding (mn) 1,734 1,740 1,742 1,743 1,743 Diluted EPS (INR) Dividend per share (INR) Dividend payout (%) Common size metrics as % of net revenues Year to March FY10 FY11 FY12 FY13E FY14E Materials costs Advertising & sales costs Interest expenditure EBITDA margins Net profit margins Growth ratios (%) Year to March FY10 FY11 FY12 FY13E FY14E Rev. growth (%) EBITDA Net profit EPS growth (%) Edelweiss Securities Limited

10 Consumer Goods Balance sheet (INR mn) As on 31st March FY10 FY11 FY12E FY13E FY14E Equity capital 869 1,741 1,742 1,742 1,742 Reserves & surplus 8,485 12,170 15,427 19,928 25,355 Shareholders funds 9,354 13,911 17,169 21,670 27,097 Minority interest (BS) Secured loans 702 4,455 4,226 4,831 4,606 Unsecured loans 1,091 6,055 7,009 5,904 5,629 Borrowings 1,793 10,510 11,235 10,735 10,235 Deferred tax liability Sources of funds 11,291 24,651 28,711 32,702 37,618 Gross block 9,857 19,338 21,445 23,745 25,245 Depreciation 3,391 4,351 5,033 6,219 7,615 Net block 6,466 14,987 16,412 17,526 17,630 Capital work in progress Investments 2,641 4,197 4,825 4,825 4,825 Inventories 4,262 7,085 8,239 9,030 10,700 Sundry debtors 1,198 3,555 4,617 4,807 5,687 Cash and equivalents 1,923 2,805 4,484 6,838 11,005 Loans and advances 3,674 4,666 5,869 5,869 5,869 Total current assets 11,058 18,712 23,999 27,334 34,051 Sundry creditors and others 4,669 7,394 9,298 9,838 11,692 Provisions 4,533 7,184 8,214 8,214 8,214 Total current liabilities & provisions 9,202 14,578 17,512 18,052 19,906 Net current assets 1,855 4,134 6,487 9,282 14,144 Miscellaneous expenditure 27 1, Uses of funds 11,291 24,651 28,711 32,702 37,618 Book value per share (INR) Free cash flow (INR mn) Year to March FY10 FY11 FY12E FY13E FY14E Net profit 5,032 5,686 6,449 7,604 9,170 Add : Non cash charge 697 1,247 1,563 1,795 1,976 Depreciation ,032 1,186 1,396 Others Gross cash flow 5,729 6,932 8,012 9,399 11,146 Less: Changes in WC (127) 2, Operating cash flow 5,857 4,478 7,700 8,958 10,451 Less: Capex 1,865 9,480 2,108 2,382 1,450 Free cash flow 3,991 (5,003) 5,592 6,575 9,001 Cash flow metrics Year to March FY10 FY11 FY12E FY13E FY14E Operating cash flow 5,857 4,478 7,700 8,958 10,451 Investing cash flow (1,037) (11,036) (2,736) (2,382) (1,450) Financing cash flow (2,740) 6,098 (2,446) (4,222) (4,833) Net cash flow 2,080 (460) 2,518 2,354 4,167 Capex (1,865) (9,480) (2,108) (2,382) (1,450) Dividends paid (2,031) (2,328) (2,632) (3,104) (3,743) Share issuance/(buyback) Edelweiss Securities Limited

11 Dabur Profitability & efficiency ratios Year to March FY10 FY11 FY12E FY13E FY14E ROAE (%) ROACE (%) Inventory day Debtors days Payable days Cash conversion cycle (days) (2) Current ratio Debt/EBITDA Debt/Equity Adjusted debt/equity Interest coverage Operating ratios Year to March FY10 FY11 FY12E FY13E FY14E Total asset turnover Fixed asset turnover Equity turnover Valuation parameters Year to March FY10 FY11 FY12E FY13E FY14E Diluted EPS (INR) Y o Y growth (%) CEPS (INR) Diluted PE (x) Price/BV (x) EV/Sales (x) EV/EBITDA (x) Dividend yield (%) Peer comparison valuation Company Market Mcap P/E( x) EV/EBITDA(x) ROE (%) Price (INR) (INR bn) FY13E FY14E FY13E FY14E FY13E FY14E Consumer Goods Asian Paints 3, Colgate 1, Dabur Emami GSK Consumer* 2, Godrej Consumer Hindustan Unilever ITC Marico Nestle* 4, United Spirits Consumer Goods Mean Consumer Goods Mean (market cap wtd average) Consumer Goods Mean (ex Nestle) 28.8x 23.9x 19.7x 16.4x * CY numbers Source: Edelweiss research 11 Edelweiss Securities Limited

12 RATING & INTERPRETATION Company Absolute reco Relative reco Relative risk Company Absolute reco Relative reco Relative Risk Asian Paints BUY SP M Colgate HOLD SP M Dabur BUY SO M Emami BUY SP H GlaxoSmithKline Consumer Healthcare BUY SP M Godrej Consumer BUY SO H Hindustan Unilever BUY SO L ITC BUY SO L Marico BUY SO M Nestle Ltd HOLD SP L United Spirits HOLD SU H ABSOLUTE RATING Ratings Expected absolute returns over 12 months Buy More than 15% Hold Between 15% and - 5% Reduce Less than -5% RELATIVE RETURNS RATING Ratings Sector Outperformer (SO) Sector Performer (SP) Criteria Stock return > 1.25 x Sector return Stock return > 0.75 x Sector return Stock return < 1.25 x Sector return Sector Underperformer (SU) Stock return < 0.75 x Sector return Sector return is market cap weighted average return for the coverage universe within the sector RELATIVE RISK RATING Ratings Low (L) Medium (M) High (H) Criteria Bottom 1/3rd percentile in the sector Middle 1/3rd percentile in the sector Top 1/3rd percentile in the sector Risk ratings are based on Edelweiss risk model SECTOR RATING Ratings Overweight (OW) Equalweight (EW) Criteria Sector return > 1.25 x Nifty return Sector return > 0.75 x Nifty return Sector return < 1.25 x Nifty return Underweight (UW) Sector return < 0.75 x Nifty return 12 Edelweiss Securities Limited

13 Dabur Edelweiss Securities Limited, Edelweiss House, off C.S.T. Road, Kalina, Mumbai Board: (91 22) , Vikas Khemani Head Institutional Equities Nischal Maheshwari Co Head Institutional Equities & Head Research Nirav Sheth Head Sales Coverage group(s) of stocks by primary analyst(s): Consumer Goods Asian Paints, Colgate, Dabur, Godrej Consumer, Emami, Hindustan Unilever, ITC, Marico, Nestle Ltd, GlaxoSmithKline Consumer Healthcare, United Spirits Recent Research Date Company Title Price (INR) Recos 23 Jul 12 Colgate Palmolive Brush with outperformance continues; Result Update 23 Jul 12 Asian Paints Margins deliver, volumes disappoint; Result Update 10 Jul 12 GCPL A breath of fresh aer ; EdelFlash 1,171 Hold 3,603 Buy 570 Buy Distribution of Ratings / Market Cap Edelweiss Research Coverage Universe Buy Hold Reduce Total Rating Interpretation Rating Expected to Rating Distribution* * 1 stocks under review > 50bn Between 10bn and 50 bn < 10bn Market Cap (INR) Buy Hold Reduce appreciate more than 15% over a 12 month period appreciate up to 15% over a 12 month period depreciate more than 5% over a 12 month period 13 Edelweiss Securities Limited

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