Dabur India Ltd. Q3FY18 Result Update Strong Volume led Domestic growth; IBD remains weak. Sector: FMCG CMP: ` 356. Recommendation: BUY

Similar documents
Symphony. Q3FY18 Result Update Strong performance; valuations expensive. Sector: Consumer Durable CMP: ` 1,970. Recommendation: HOLD

Colgate-Palmolive. Q2FY18 Result Update Volume pressure continues; Soft A&P aids Margin. Sector: FMCG CMP: ` 1,063. Recommendation: HOLD

HUL. Q4FY17 Result Update Healthy performance, rich valuations. Sector: FMCG CMP: ` Recommendation: Hold

Hindustan Unilever. Q4FY18 Result Update Strong volume growth on weak base and uptick in rural. Sector: FMCG CMP: ` 1,516. Recommendation: HOLD

Colgate-Palmolive. Q1FY18 Result Update Volume pressure continues; Soft A&P aids Margin. Sector: FMCG CMP: ` 1,083. Recommendation: HOLD

TTK Prestige. Q2FY18 Result Update Healthy Sales growth; Margins expands. Sector: Consumer Durable CMP: ` 6,145. Recommendation: HOLD

Havells India. Q1FY18 Result Update Strong Sales growth; Margins decline. Sector: Consumer Durable CMP: ` 467. Recommendation: BUY

Nestlé India. Q2CY17 Result Update. Positives priced in; Downgrade to Hold. Sector: FMCG CMP: ` 6,786. Recommendation: HOLD

ITC. 1QFY18 Result Update Higher Excise duty impacts sales; healthy EBITDA margin. Sector: FMCG CMP: ` 289. Recommendation: BUY

Hindustan Unilever. Q1FY19 Result Update Maintaining strong volume trajectory on high base is the key. Sector: FMCG CMP: ` 1,644. Recommendation: HOLD

Havells India. Q4FY17 Result Update Strong Sales growth; Margins stable. Sector: Consumer Durable CMP: ` 515. Recommendation: BUY

Bajaj Corp Q2FY18 Result Update ADHO volume picks up; Nomarks to perform in coming qtrs

Mphasis. 1QFY18 Result Update. Margins dip; valuations not supportive. Sector: Technology CMP: ` 614. Recommendation: Sell

NIIT Technologies. 3QFY19 Result Update. Robust revenue visibility, Outlook robust

Colgate-Palmolive. Q3FY17 Result Update Steep decline in Sales; EBITDA margin contraction continues. Sector: FMCG CMP: ` 879. Recommendation: HOLD

Havells India. Q3FY17 Result Update Positive surprise; Maintain Buy. Sector: Consumer Durable CMP: ` 376. Recommendation: BUY.

NIIT Technologies. 2QFY19 Result Update. Robust revenue visibility, Outlook robust

Consumer. 3QFY19 Results Preview Expect stable volume led revenue growth in festive quarter

Tech Mahindra. 4QFY17 Result Update. Short term blip, compelling valuation. Sector: Technology CMP: ` 429. Recommendation: Buy

KPIT. 1QFY18 Result Update. Profitability does it again, looking for sustenance. Sector: Technology CMP: ` 130. Recommendation: Hold

Hexaware. 4QCY18 Result Update. Margin miss, rich valuations. Sector: Technology CMP: ` 322. Recommendation: Hold

NIIT Technologies. 4QFY17 Result Update. Robust revenue visibility, Margin expansion story intact. Sector: Technology CMP: `471. Recommendation: Buy

Consumer. 4QFY19 Results Preview Stronger earnings growth but moderating volumes

Havells India. Q4FY16 Result Update In-line result; Consistent improvement in performance. Sector: Consumer Durable CMP: ` 342. Recommendation: BUY

Nestlé India. Q4CY16 Result Update. Healthy Sales growth; higher provisions & CSR impacts bottom-line. Sector: FMCG CMP: ` 6,169. Recommendation: BUY

Hexaware. 2QCY17 Result Update. Margin pressure ahead, rich valuations. Sector: Technology CMP: ` 262. Recommendation: Hold

ITC. Q1FY17 Result Update Healthy Operational Performance; Maintain BUY. Sector: FMCG CMP: ` 251. Recommendation: BUY

Persistent Systems. Analyst Meet Update. Futuristic technologies, short term hazy, Hold. Sector: Technology CMP: ` 655. Recommendation: Hold

Wipro. 3QFY18 Result Update. Still not of the woods, maintain Hold. Sector: Technology CMP: ` 328. Recommendation: Hold

Bajaj Corp. Sales inline; soft A&P & higher other income aids PAT. Q3FY17 Result Update. Sector: FMCG. CMP: ` 385 Recommendation: BUY

NIIT Technologies. Analyst Meet Update. Non-linearity to boost revenues, margins. Sector: Technology CMP: `496. Recommendation: Buy

Bajaj Corp. Q1FY17 Result Update Weak Sales growth, Margin Expansion continues. Sector: FMCG CMP: ` 404. Recommendation: BUY

Technology. Sector Update Traditional sourcing growth forecast at 4.5% for CY19. Nifty vs CNX IT

Wipro. 4QFY18 Result Update. Still not of the woods, maintain Hold. Sector: Technology CMP: ` 287. Recommendation: Hold

Tech Mahindra. 1QFY18 Result Update. Steps in the right direction, compelling valuation. Sector: Technology CMP: ` 385. Recommendation: Buy

Mphasis. 1QFY17 Result Update. Muted quarter, Direct business still weak. Sector: Technology CMP: ` 540. Recommendation: Sell

Amber Enterprises India Ltd

Music Broadcast BUY. Performance Update. CMP Target Price `329 `475. 2QFY2019 Result Update Media. Historical share price chart.

Wipro. 3QFY17 Result Update. Guidance subdued, maintain Hold. Sector: Technology CMP: ` 474. Recommendation: Hold

Dabur India. Institutional Equities. 1QFY19 Result Update

Infosys. 3QFY19 Result Update. Decent quarter; Strong deal wins. Sector: Technology CMP: ` 684. Recommendation: Buy

ITC ACCUMULATE. Performance Highlights CMP. `257 Target Price `284. 3QFY2017 Result Update FMCG. Investment Period 12 Months

Hindustan Media Ventures

Mahindra & Mahindra Ltd.

Mahindra & Mahindra Ltd.

Maruti Suzuki India BUY. Performance Update. CMP `6,705 Target Price `8,552. 2QFY2019 Result Update Automobile. Historical share price chart

Dabur India. Steady recovery in place; Accumulate. Source: Company Data; PL Research

Symphony Ltd. RESULT UPDATE 31st October 2017

Garware Wall Ropes ACCUMULATE. Performance Highlights CMP. `550 Target Price `618. 2QFY2017 Result Update Textile. Investment Period 12 months

Blue Star Ltd BUY. Performance Update. CMP Target Price `703 `867. 1QFY2019 Result Update Cons. Durable. 3-year price chart.

Larsen & Toubro Ltd.

GMM Pfaudler Limited BUY. Performance Update CMP. `945 Target Price ` QFY2019 Result Update Industrial Machinery. Investment Period 12 Months

Parag Milk Foods BUY. Performance Update CMP. `256 Target Price `330. 2QFY2019 Result Update Dairy Products. Investment Period 12 Months

Rallis India NEUTRAL. Performance Highlights CMP. `237 Target Price - 1QFY2018 Result Update Agrichemical. Investment Period - 3-year price chart

Maruti Suzuki India BUY. Performance Update. CMP `9,315 Target Price `10,820. 1QFY2019 Result Update Automobile. Historical share price chart

Amara Raja Batteries BUY. Performance Highlights. CMP `1,010 Target Price `1,167. 2QFY2017 Result Update Auto Ancillary. 3-year price chart

Music Broadcast BUY. Performance Update. CMP Target Price `293 `475. 3QFY2019 Result Update Media. Stock Info Sector Market Cap (Rs cr) Media

ITC Ltd. RESULT UPDATE 27th October, 2017

TV Today Network BUY. Performance Update CMP. `323 Target Price `498. 3QFY2019 Result Update Media. Investment Period 12 Months

Bata India BUY. Performance Update. CMP Target Price `842. 1QFY2019 Result Update Footwear. Historical share price chart.

Parag Milk Foods BUY. Performance Update CMP. `324 Target Price `410. 1QFY2019 Result Update Dairy Products. Investment Period 12 Months

Recovery to be gradual; Maintain HOLD

Dabur India. Share gains power growth, Accumulate. Source: Company Data; PL Research

Colgate-Palmolive (India)

Religare Investment Call

TV Today Network BUY. Performance Update. CMP Target Price `315 `385. 2QFY2017 Result Update Media. Historical share price chart.

Religare Investment Call

Coal India ACCUMULATE. Performance Highlights CMP. `338 Target Price `380. Outlook and valuation. 2QFY2016 Result Update Mining

Bata India BUY. Performance Update. CMP `1,008 Target Price `1,243. 2QFY2019 Result Update Footwear. Historical share price chart.

Procter & Gamble Hygiene & Health Care

ITC Ltd. BUY CMP (Rs.) 304 Target (Rs.) 336 Potential Upside(%) 11% Valuation: Investment Rationale. For private circulation only

Asian Granito BUY. Performance Highlights CMP. `270 Target Price `351. Outlook and valuation. 3QFY2017 Result Update Ceramics

Dabur India. CMP: INR130 TP: INR135 Neutral

Goodyear India BUY. Company Update. CMP Target Price `515 `631. Company Update Tyres. 3-year Daily Price Chart. Key Financials

Maruti Suzuki India Ltd.

Gillette India. Institutional Equities. 1QFY18 Result Update

Power Mech Projects. Institutional Equities. 2QFY18 Result Update BUY. Strong Business Scalability Likely; Retain Buy

Dabur India. CMP: INR106 TP: INR94 Neutral

Rallis India NEUTRAL. Performance Highlights CMP. `242 Target Price - 4QFY2017 Result Update Agrichemical. Investment Period - 3-year price chart

Apollo Hospitals Enterprise Ltd.

Hindustan Unilever Ltd.

KPR Mills Ltd 1QFY18 Result Update Target: Rs 944. Textile revenue impacted by slowdown due to GST, recovery from 2QFY18 onwards

Gillette India. Institutional Equities. 2QFY19 Result Update BUY. Marketing Investments Mask Improved Top-line Performance

Rallis India NEUTRAL. Performance Highlights CMP. `215 Target Price - 3QFY2017 Result Update Agrichemical. Investment Period - 3-year price chart

FLASH NOTE Welspun India 31 Jan 17

Institutional Equities

Institutional Equities

Hero MotoCorp ACCUMULATE. Performance Highlights. CMP `3,226 Target Price `3,466. 3QFY2017 Result Update Automobile. 3-year price chart

SHRIRAM TRANSPORT FINANCE COMPANY LTD

Inox Wind BUY. Performance Highlights. CMP Target Price `242 `286. 4QFY2016 Result Update Capital Goods. 3 year price chart

Axis Bank BUY. CMP Target Price `620 `750. Update Bank. Earnings to normalize with stabilizing credit costs. 3-year price chart.

Q4 EARNINGS REPORT Welspun India 25 Apr 17

Zee Entertainment. 1QFY19 Result Update Domestic advertisement to surpass initial estimates

Prabhat Dairy Ltd. RESULT UPDATE 8th June, 2018

Hero MotoCorp ACCUMULATE. Performance Highlights. CMP `3,718 Target Price `4,130. 1QFY2018 Result Update Automobile. 3-year price chart

HOLD. Coal India Ltd Coal RETAIL EQUITY RESEARCH. Uncertainty remains. GEOJIT BNP PARIBAS Research

Dabur India Limited. Investor Communication. Quarter ended 30 th June August 4, 2017

Quick take. Ruchira Papers Ltd. BUY. Creating value through paper. Target Price. Investment Period 12 Months. 3 year daily price chart.

Colgate-Palmolive India Ltd.

Inox Wind BUY. Performance Highlights. CMP Target Price `390 `505. 2QFY2016 Result Update Capital Goods. 3 year price chart

Transcription:

Dabur India Ltd. Q3FY18 Result Update Strong Volume led Domestic growth; IBD remains weak Sector: FMCG CMP: ` 356 Recommendation: BUY Market statistics Current stock price (`) 356 Shares O/S (cr.) 176.2 Mcap (` cr) 62,640 52W H/L (`) 369/263 6m avg. volume 1,193,715 Bloomberg Shareholding pattern (%) DABUR IN Promoters 68.05 Domestic Institution 8.47 Foreign Institution 17.74 Non-institution 5.74 of which more than 1% LIC Ltd. 4.25 First state investments 1.24 Dabur vs. Nifty 140 120 100 DABUR Capital efficiency & valuations Nifty 80 Jan-17 May-17 Sep-17 Jan-18 Particulars FY17 FY18E FY19E ROE (%) 23.2 22.9 23.6 ROCE (%) 28.8 26.8 28.0 P/B(x) 10.4 11.1 9.2 P/E (x) 44.9 48.3 39.1 EPS (`) 6.4 7.4 9.1 EV/OCF (x) 40.2 38.0 35.1 Associate Ritu Chaudhary +91-22 4224 5183 ritu.chaudhary@trustgroup.in Dabur reported 6.1% growth in consolidated net sales to `19,664mn. However, adjusting to GST rates, sales growth was 12.9%. India FMCG business (70% of total sales) on like to like basis grew by 17% YoY led by 13% in volumes while the reported growth was 13% YoY. Strong growth in distributor, modern trade & super stockiest channel & rural demand pick up, fueled this growth during the quarter. Hair Care, Oral Care, health supplements, OTC& ethical, Digestives, homecare & skin care on like to like basis showed 16.7%, ~23%, 19.5%, 8.7%, 19.3%, 36% & 14.5% growth YoY. International Biz(27% of total sales) showed 5% CC basis due to adverse currency devaluation in Egypt, Naira & Lira leading to Rs660mn loss. Gross Margin expanded by 221bps YoY to 51.6%. A&P spend contracted by 14bps and grew by 4.5% YoY. Employee and other expenses moved by 20bps & -36bps YoY. Hence, EBITDA Margin expanded by 250bps YoY to 20.5%. EBITDA grew by 20.8% to ` 4,035mn. EBIT Margin for Consumer Care Biz (87% of total sales) & Food Biz (11% of sales) expanded by 13ps & 450bps YoY. Other income de-grew by 20%, hence PAT grew by 13% to `3,329mn. Other comprehensive income was at `-275mn vs `-1,328mn (Q3FY17) that translated into APAT growth of 88.6% to ` 3,057mn. Strong Performance across categories on like to like basis (adjusted to GST rates): Dabur s domestic showed strong growth of 17% led by 13% growth in volumes. This is led by initiative taken to improve sales in rural region and broad based growth categories. Rural has shown double digit growth during Q3FY18.Hair care category (18% of domestic sales) showed 16.7% growth led by strong performance both in coconut & perfumed oils category. They have launched coconut oil product by re-activating Anmol brand and aggressive pricing of 30-35% discount to parachute in Q2FY18. Oral Care (16% of sales) showed robust growth of 23% led by 26% growth in toothpaste & 6.2% growth in toothpowder. Health supplements (24% of sales) picked up & showed 19.5% growth due to strong growth in honey. Otc & Ethicals posted 8.7% led by good growth in Lal Tail, Honitus, Ashokarishta & Dashmularishta. Homecare category showed robust 36% growth led by strong performance of Odonil & Sanifresh. Digestives posted growth of 19.3% led by Hajmola tablets & Pudin Hara. Skin Care posted growth of 14.5% led by double digit growth in brands. Foods remained flat amid high base of last quarter while shifting of festive season & proliferation of value players also impacted sales in the quarter International showed growth of 5% on CC basis: International business was muted on reported numbers while on CC basis it grew by 5%. On local currency basis, Egypt, Nigeria, GCC, Pakistan, SAA & Turkey grew by 45.5%, 18%, 20%, 18.0%, 26% & 2.8% respectively. Namaste biz declined severely by 16%YoY. Severe currency de-flation impacted the overall IBD performance. We expect IBD to reflect this CC basis growth from Q4FY18 and expects 10% growth in FY19. Outlook & Valuation- Healthy Volume Recovery; Expect Rural to lead the growth : Dabur s performance suffered & witnessed volume pressure during Q1FY16 to Q1FY18 amid Patanjali growing presence in Ayurveda space during that time. However volume pick from Q2FY18 is highly encouraging. Dabur s several initiatives to revive rural growth is fruitful and supporting the volumes. We believe, company s new launches & product s rejuvenation strategy is working well & helping them to regain the market share. We expect Dabur would be able to garner 13% growth in FY19E on back of low base on FY18, new launches and demand improvement particularly coming from rural. The stock trades at 48x & 39.0x P/E of FY18E & FY19E EPS, respectively. We upgrade to BUY

Exhibit 1: Quarterly Performance Particulars (`mn) Q3FY17 Q2FY18 Q3FY18 YoY Chg (%) Total Income 18,529 19,589 19,664 6.1% Total RM 9,383 9,771 9,524 1.5% Gross Profit 9,146 9,818 10,141 10.9% Gross Margin (%) 49.4% 50.1% 51.6% 221bps Employee Expenses 1,892 2,037 2,048 8.3% % of sales 10.2% 10.4% 10.4% 20bps Advertising & Publicity 1,772 1,457 1,853 4.6% % of sales 9.6% 7.4% 9.4% -14bps Other Expenses 2,143 2,125 2,205 2.9% % of sales 11.6% 10.8% 11.2% -36bps Total Expenditures 15,190 15,390 15,630 2.9% EBITDA 3,339 4,199 4,035 20.8% EBITDA Margin % 18.0% 21.4% 20.5% 250bps Other Income 831 843 663-20.1% Depreciation 333 401 405 21.6% EBIT 3,837 4,641 4,294 11.9% EBIT Margin % 20.7% 23.7% 21.8% 113bps Interest 139 133 132-5.2% PBT 3,697 4,508 4,162 12.6% Total Tax 753 880 833 10.7% Effective tax rate % 20.4% 19.5% 20.0% -35bps PAT before minority 2,945 3,629 3,329 13.0% Minority Interest After NP (2) 2 - -100.0% Reported PAT 2,947 3,627 3,329 13.0% Other Comprehensive Income (1,328) (36) (275) Adjusted PAT 1,619 3,590 3,054 88.6% NPM % 8.7% 18.3% 15.5% 679bps Exhibit 2: Consolidated Sales Break up others, 2.8 Exhibit 3: Domestic FMCG business break up Health Supplemen ts', 24 Digestives, 5 OTC & Ethicals, 10 Internation al, 27 Domestic, 70 Foods, 14 Skin & Salon, 6 Home Care, 7 Oral Care, 16 Hair Care, 18 2

Exhibit 4: Segmental Performance Segmental Consolidated (`mn) Q3FY17 Q2FY18 Q3FY18 YoY Chg (%) Revenues (`mn) Consumer Care Business 15,625 16,147 16,969 8.6% Foods 2,191 2,828 2,107-3.8% Retails 355 265 321-9.7% Others 305 309 205-32.8% Net Revenues 18,477 19,589 19,601 6.1% EBIT (` mn) Consumer Care Business 3,835 4,285 4,187 9.2% Foods 187 428 275 46.8% Retails 2 6 16 912.5% Others 3 10 16 367.6% Total EBIT 4,027 4,729 4,494 11.6% Sales Mix (%) Consumer Care Business 84.6% 82.4% 86.6% 200bps Foods 11.9% 14.4% 10.7% -111bps Retails 1.9% 1.4% 1.6% -29bps Others 1.7% 1.6% 1.0% -61bps Total 100% 100% 100% EBIT Margin (%) Consumer Care Business 24.5% 26.5% 24.7% 13bps Foods 8.5% 15.1% 13.1% 450bps Retails 0.5% 2.4% 5.0% 460bps Others 1.1% 3.1% 7.8% 665bps Total 21.8% 24.1% 22.9% 113bps EBIT Margin Mix (%) Consumer Care Business 95.2% 90.6% 93.2% -206bps Foods 4.7% 9.0% 6.1% 147bps Retails 0.0% 0.1% 0.4% 32bps Others 0.1% 0.2% 0.4% 27bps Total 100% 100% 100% 3

Financials Consolidated P&L Statement Y/E Mar (`mn) FY15 FY16 FY17 FY18E FY19E Net Revenues 78,272 78,687 77,014 77,779 88,540 % Growth 10.6 0.5 (2.1) 1.0 13.8 Raw Material 37,201 38,496 38,432 38,959 43,367 Staff 6,227 7,698 7,657 7,865 8,341 Other Expenses 21,680 17,312 15,836 15,261 17,847 Total Expenditures 65,108 63,505 61,925 62,085 69,555 EBITDA 13,164 15,182 15,090 15,693 18,985 % Growth 13.6 15.3 (0.6) 4.0 21.0 EBITDA Margins (%) 16.8 19.3 19.6 20.2 21.4 Other Income 1,581 2,172 2,984 3,369 4,069 Interest 401 485 540 566 546 Depreciation 1,150 1,332 1,429 1,556 1,674 Profit Before Tax 13,194 15,537 16,104 16,940 20,834 Provision for tax 2,509 2,999 3,303 3,388 4,167 Effective tax rate (%) 19.0 19.3 20.5 20.0 20.0 Reported PAT 10,658 12,511 12,770 13,553 16,640 % Growth 16.7 17.4 2.1 6.1 22.8 Adjusted Net Profit 10,658 11,999 11,267 12,990 16,018 % Growth 16.6 12.6 (6.1) 15.3 23.3 Balance Sheet Y/E Mar (` mn) FY15 FY16 FY17 FY18E FY19E Equity capital 1,757 1,759 1,762 1,762 1,762 Reserves & surplus 31,458 39,947 46,712 54,933 66,181 Shareholders' funds 33,215 41,706 48,474 56,694 67,942 Minorities interests 182 217 248 246 273 Total Debt 7,395 7,971 9,153 8,447 8,147 Capital Employed 40,791 49,894 57,874 65,387 76,361 Net fixed assets 17,111 17,728 20,005 20,748 21,474 Cash & Cash Eq. 3,097 2,489 3,389 5,207 7,321 Net other Current Assets 1,635 3,629 2,012 964 2,099 Investments 19,286 26,433 32,525 38,525 45,525 Net Deferred Tax Assets (749) (882) (1,080) (1,080) (1,080) Total assets 40,791 49,894 57,874 65,387 76,361 4

Cash Flow Cash Flow Statement (`mn) FY15 FY16 FY17 FY18E FY19E Pre-tax profit 13,194 15,538 16,104 16,940 20,834 Depreciation 1,150 1,332 1,429 1,556 1,674 Total tax paid (2,295) (2,805) (3,221) (3,388) (4,167) Chg in working capital (1,168) (752) 872 1,048 (1,134) Other operating activities (408) (1,841) (3,266) (563) (622) Cash flow from oper. (a) 10,472 11,472 11,918 15,593 16,584 Capital expenditure (2,511) (1,892) (4,858) (2,300) (2,400) Chg in investments (7,211) (6,883) (5,111) (6,000) (7,000) Other investing activities 960 1,471 1,800 - - Cash flow from inv. (b) (8,762) (7,303) (8,169) (8,300) (9,400) Free cash flow (a+b) 1,710 4,169 3,749 7,293 7,184 Equity raised/(repaid) 455 172 149 (0) 0 Debt raised/(repaid) 254 715 1,682 (706) (300) Chg in Minorities int. - - - - - Dividend (incl. tax) (3,948) (4,233) (4,770) (4,770) (4,770) Other financing activities (929) - - - - Cash flow from fin. (c) (4,168) (3,346) (2,940) (5,476) (5,070) Net chg in cash (a+b+c) (2,458) 823 809 1,817 2,114 Key Ratios Y/E Mar FY15 FY16 FY17 FY18E FY19E Raw Material Cost/Sales (%) 47.6 49.0 49.9 50.1 49.0 Manpower Cost/Sales (%) 8.0 9.8 9.9 10.1 9.4 Operating & Other Cost/Sales (%) 27.7 22.0 20.5 19.6 20.2 Revenue Growth (%) 10.6 0.5 (2.1) 1.0 13.8 EBITDA Margins (%) 16.8 19.3 19.6 20.2 21.4 Net Income Margins (%) 13.6 15.2 14.6 16.7 18.1 ROCE (%) 33.3 32.1 28.8 26.8 28.0 ROE (%) 32.1 28.8 23.2 22.9 23.6 Valuation Parameters Y/E Mar FY15 FY16 FY17 FY18E FY19E EPS (`.) 6.1 6.8 6.4 7.4 9.1 P/E (x) 41.2 35.6 44.9 48.3 39.1 BV (`) 18.9 23.7 27.5 32.2 38.6 P/BV (x) 13.2 10.2 10.4 11.1 9.2 EV/EBITDA (x) 32.2 26.8 31.7 37.7 30.7 Fixed assets turnover ratio (x) 7.2 5.8 4.8 4.7 5.1 Net Debt/Equity (x) 0.1 0.1 0.1 0.1 0.0 EV/Sales (x) 5.4 5.2 6.2 7.6 6.6 5

Institutional Equity Team Names Designation Sectors Email ID's Desk-Number Naren Shah Head Of Equity naren.shah@trustgroup.in +91-22-4084-5074 Sales Trading & Dealing Rajesh Ashar Sales Trader rajesh.ashar@trustgroup.in +91-22-4224-5123 Dealing Desk trustfin@bloomberg.net +91-22-4084-5089 Sales Mayur Joshi Sales mayur.joshi@trustgroup.in +91-22-4424-5028 Research Team Binyam Taddese Analyst Rates & Credit Research binyam.taddese@trustgroup.in +91-22-4224-5037 Naushil Shah Analyst Technology, Media & Telecom naushil.shah@trustgroup.in +91-22-4224-5125 Tushar Chaudhari Analyst Commodities, Auto & Mid-caps tushar.chaudhari@trustgroup.in +91-22-4224-5119 Ritu Chaudhary Associate FMCG & Consumer Durable ritu.chaudhary@trustgroup.in +91-22-4224-5183 6

DISCLAIMER This document has been prepared by Trust Financial Consultancy Services Private Limited (hereinafter referred to as TFCSPL) to provide information about the company (ies) and/sector(s), if any, covered in the report. This report is for personal information of the selected recipient/s and does not construe to be any investment, legal or taxation advice to you. This research report does not constitute an offer, invitation or inducement to invest in securities or other investments and TFCSPL is not soliciting any action based upon it. This report is not for public distribution and has been furnished to you solely for your general information and should not be reproduced or redistributed to any other person in any form. This report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Before acting on any advice or recommendation in this material, investors should consider whether it is suitable for their particular circumstances and, if necessary, seek professional advice. Information and opinions presented in this report were obtained or derived from sources that TFCSPL believes to be reliable, but TFCSPL makes no representations or warranty, express or implied, as to their accuracy or completeness or correctness. TFCSPL accepts no liability for loss arising from the use of the material presented in this report, except that this exclusion of liability does not apply to the extent that liability arises under specific statutes or regulations applicable to TFCSPL. Information, opinions and estimates contained in this report reflect a judgment of its original date of publication by TFCSPL and are subject to change without notice. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. Other Disclosures by Trust Financial Consultancy Services Private Limited (hereinafter referred to as TFCSPL) under SEBI (Res earch Analysts) Regulations, 2014 with reference to the subject companies(s) covered in this report: TFCSPL is engaged in the business of Retail & Institutional Stock Broking. TFCSPL is a member of the National Stock Exchange of India Limited, BSE Limited and Metropolitan Stock Exchange of India Limited. The associate/subsidiary companies of TFCSPL are engaged in the businesses of Merchant Banking, portfolio management, lending, wealth management etc. TFCSPL s activities were neither suspended nor has it defaulted with any stock exchange authority with whom it has been registered in the last five years. TFCSPL has not been debarred from doing business by any Stock Exchange / SEBI or any other authority. No disciplinary action has been taken by any regulatory authority against TFCSPL impacting its equity research analysis activities. TFCSPL and it s associate/subsidiary companies may have managed or co-managed public offering of securities, may have received compensation for merchant banking or brokerage services, may have received any compensation for products or services other than merchant banking or brokerage services from the subject company in the past 12 months. TFCSPL and it s associate/subsidiary companies have not received any compensation or other benefits from the subject company or third party in connection with the research report. Subject Company may have been a client of TFCSPL or its associate/subsidiary companies during twelve months preceding the da te of distribution of the research report. TFCSPL and/or its associate/subsidiary companies and/or employees may have interests/positions, financial or otherwise of over 1 % at the end of the month immediately preceding the date of publication of the research in the securities mentioned in this report. TFCSPL is registered as a Research Analyst under SEBI (Research Analyst) Regulations, 2014. SEBI Reg. No. INH000001543. Analyst Certification: The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject company securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report. The research analysts, strategists, or research associates principally responsible for preparation of TFCSPL research receive compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors and firm revenues Disclosure of Interest Statement Analyst Ownership of Stock Served as Director or Employee Name of Company No No Stock Ratings are defined as follows :-Recommendation Interpretation Recommendation Expected absolute returns (%) over 12 months Buy More than 15% Hold 15% to -15% Sell Less than -15% Regional Disclosures (outside India): This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject TFCSPL or its associate/ subsidiaries 7