Hindustan Unilever - Business...

Hindustan Unilever

Geared up to ride demand recovery

June 29, 2015

Prabhudas Lilladher Pvt. Ltd. and/or its associates (the 'Firm') does and/or seeks to do business with companies covered in its research reports. As a result investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of the report. Investors should consider this report as only a single factor in making their investment decision.

Please refer to important disclosures and disclaimers at the end of the report

Analyst Meet Update

Amnish Aggarwal [email protected] +91‐22‐66322233

Gaurav Jogani [email protected] +91‐22‐66322238

Rating Accumulate

Price Rs888

Target Price Rs859

Implied Upside ‐3.3%

Sensex 27,812

Nifty 8,381

(Prices as on June 26, 2015)

Trading data

Market Cap. (Rs bn) 1,920.2

Shares o/s (m) 2,162.5

3M Avg. Daily value (Rs m) 2730

Major shareholders

Promoters 67.24%

Foreign 15.11%

Domestic Inst. 3.85%

Public & Other 13.80%

Stock Performance

(%) 1M 6M 12M

Absolute 3.8 18.3 43.5

Relative 2.8 16.2 32.6

How we differ from Consensus

EPS (Rs) PL Cons. % Diff.

2016 20.6 21.6 ‐4.8

2017 24.5 24.8 ‐1.1

Price Performance (RIC: HLL.BO, BB: HUVR IN)

Source: Bloomberg

0

200

400

600

800

1,000

1,200

Jun‐14

Aug‐14

Oct‐14

Dec‐14

Feb‐15

Apr‐15

Jun‐15

(Rs)

HUVR’s management seems confident on its capability to sustain above market

growth in a competitive and sustainable manner. HUVR seems focused on

accelerating the pace of innovations and renovations on one hand and seeding

emerging categories for long term growth sustainability. We believe that sustained

efforts in 1) product innovations 2) category creation 3) distribution expansion 4)

go to market initiatives have increased its competitive edge. We believe HUVR is

well placed to capture pickup in consumer demand in coming quarters. Rising

possibility of good monsoons and benign input costs are a near term positive. We

estimate 18.3% PAT CAGR over FY16‐17 and expect premium valuations to sustain

given long term growth opportunity. We maintain “Accumulate”.

Long‐term growth opportunity looks attractive given that Unilever has grown

sales by 9% CAGR in emerging markets since last 20 years.

Distribution: HUVR is looking at increasing the throughput from huge

distribution expansion of past few years. It is looking at emerging channels like

Drug Stores, Modern trade and Ecommerce and new central India cluster to

accelerate growth in coming years.

Advertising: Non TV advertising is 30% of adspend; Digital is 10% of ad spends.

HUVR is planning major initiative in Wheel in order to strengthen its market

position. HUVR is re‐launching “LIRIL” on freshness platform, we note that LIRIL

in its old avatar was one of the leading brands, but change in positioning diluted

the plank and stunted its growth.

HUVR is gaining share in Deo’s and is looking at entering antiperspirants

segment to regain market leadership. HUVR expects improved performance in

oral care in coming periods.

Key financials (Y/e March) 2014 2015 2016E 2017E

Revenues (Rs m) 280,191 307,341 342,649 392,506

Growth (%) 8.6 9.7 11.5 14.6

EBITDA (Rs m) 44,753 51,043 62,347 73,022

PAT (Rs m) 35,553 37,946 44,523 53,109

EPS (Rs) 16.4 17.5 20.6 24.5

Growth (%) 7.3 6.7 17.3 19.3

Net DPS (Rs) 13.0 15.0 15.5 17.5

Profitability & Valuation 2014 2015 2016E 2017E

EBITDA margin (%) 16.0 16.6 18.2 18.6

RoE (%) 119.5 108.4 113.3 117.7

RoCE (%) 87.1 92.2 97.4 93.4

EV / sales (x) 6.7 6.2 5.4 4.7

EV / EBITDA (x) 41.9 37.1 29.9 25.4

PE (x) 54.0 50.6 43.1 36.2

P / BV (x) 58.6 51.6 46.4 39.3

Net dividend yield (%) 1.5 1.7 1.7 2.0

Source: Company Data; PL Research

June 29, 2015 2

Hindustan Unilever

Key takeaways from the Investor meet:

Long‐term growth opportunity attractive: HUVR mgt seems positive on long

term growth opportunity. Unilever has grown at 9% sales CAGR in emerging

markets in last 20 years, which makes the mgt positive on growth potential in

the long term. The mgt seems unperturbed by near term fluctuations and is

investing for propelling sustainable and profitable growth.

Distribution focus shifts to efficiency and throughput: HUVR has increased its

direct distribution reach from 0.9m in 2009 to 3.2m in 2013. The mgt focus in

now to increase the throughput, assortment of its products and reduce the cost

of distribution in this channel. HUVR is now operating with 14 consumer clusters

and 5 branches. The new created central India branch covers states like UP,

Bihar, MP, Rajasthan and Chhattisgarh which have much lower penetration and

offer scope to increase sales growth. HUVR is looking at specific product

innovations targeting specific regions under “WIMI” initiative. HUVR plans to

use emerging channels like Drug Stores, Modern trade and Ecommerce to

capitalise on growth opportunity.

Non TV ad‐spends are 30% of total, Digital 10%: HUVR is concentrating on using

alternate modes of communication to reach consumers. The means include

radio, Digital, Mobile, Social Media etc. the share of non TV advertising has

increased to 30% of the total spends while that of Digital media is 10% of total

spends. HUVR plans to change the media spends in line with the change in

consumer behaviour to remain relevant for the consumers.

Premiumisation drive to continue: HUVR has embarked a strategy of upgrading

the existing customers to the upper end of the pyramid, which is basically

premiumising the product offering. HUVR’s has been successfully upgrading

consumers in laundry (Surf Excel and Rin), Dish wash (Vim Liquid), Shampoo

(Dove and Tresemme), Tea (Taj Mahal Darajleeng and Brooke Bond Nature

Care), Hand wash (Liquids), Skin creams (Ponds, FAL BB, Lakme Absolute etc).

HUVR plans to capitalise on its ability to launch premium products by Unliever

technology to propel growth.

New category creation and innovation to remain high: Most of HUVR brands

have seen innovation and renovation in past 2 years, consequently 90% of the

portfolio has gained share in FY15. HUVR will continue to focus on new category

creation which will create future growth drivers for the company. HUVR is

investing in categories like Green Tea, Fabric Conditioner, and Packaged Foods

etc to drive long term growth.

HUL driving cost control to boost profitability: HUVR is undertaking relentless

cost control across various heads. Material cost savings have increased by 36%,

supply chain cost savings by 48% in the past three years while overheads have

seen a reduction of 10%. Sustained cost control and favourable input costs will

enable 200bps margin expansion over FY15‐17.

June 29, 2015 3

Hindustan Unilever

Processed Foods: Kissan and Knorr grow at 4x category growth

Foods business has grown at 12% CAGR in sales in the past three years. Key

brands like Knorr and Kissan are both gaining share in respective categories.

Knorr and Kissan have grown at 4x growth rate than the category growth.

Processed foods offers immense growth potential as penetration of soups is

5.7%, Jams 12.9% and ketchup 20.2% in India.

HUVR has increased the pace of innovation in the category. It includes Twist

chilli tomato and Sweet and Spicy in ketchup, Mango variant in Jams, Rs10 pack

of single serve Instant soups and Magnum launch in Ice creams.

HUVR is looking at effective communication for the consumer to increase the

consumption avenues. It is also increasing the product availability, affordability

and distribution by increasing the outlet coverage; low unit packs and on shelve

availability. These initiatives have doubled business in ketchup and jam and

increased penetration in soups. HUVR seems confident of sustaining strong

double digit growth in processed foods.

Beverages: aiming for market leadership in green tea and coffee

HUVR has grown tea business at 1.5x category growth and coffee business at 3x

category growth.

HUVR has leadership in Tea and is aiming at leadership in coffee business as it is

gaining share.

HUVR is focusing on innovation in tea business. Brooke Bond has seen strong

growth in nature care, which is 2.5 xs more profitable. It has also launched

regional variants in Tazza, 3 roses and Brooke Bond red label to adjust to tastes

and pricing expectation in various states.

Green tea is fast growth segment for HUVR. Green tea is growing at 2 times

market growth and 6 times growth of HUVR’s tea business. HUVR is aiming for

market leadership in green tea business in current year.

Coffee business has seen significant pickup in growth rate; it has enabled

doubling of market share outside south India. HUVR is aiming for market

leadership in this category in coming years.

Home care; focus on premiumisation and category creation

Home care business focuses on Laundry, utensil care, surface cleaners and water

purification. HUVR is confident of growing ahead of the market due to a

portfolio across price segments, new product initiatives and dynamic pricing.

Premiumisation: Premium laundry is growing at 2x the category growth rate.

HUVR is able to offer options to consumers to straddle across pyramid; this is

boosting the sales in premium segment. HUVR is focusing on premiumisation in

June 29, 2015 4

Hindustan Unilever

this segment. Going by consumption of Rin in Tamilnadu the sales of this brand

on an all India basis can be 7.5 times current sales, similarly surf excel can be 3.5

times the current size.

Wheel has shown slow growth in the past year, HUVR is devising new marketing

strategy which is expected to boost growth rates in the coming periods.

New category creation: HUVR is investing in Surf excel Matic, Comfort fabric

Conditioners, Surf Excel Liquid Detergents, Vim Liquid Dishwash, Pure IT water

purifiers, Domex and Cif surface cleaners as categories of the future. These

products have grown sales by 20% in FY15. These products are at nascent stage

and offer huge growth potential over the coming few years.

Profitability: HUVR is aiming at improving profitability in these segments by

improving the sales mix, adopting low cost manufacturing and distribution

models and dynamic pricing keeping in view the competitive intensity.

Agility and speed of execution: HUVR has significantly increased the speed of

execution and agility. It has been at the forefront to pass on reduced input costs

by price reduction in Wheel, Rin, Surf excel bars and introducing promotions.

Personal care: Innovations to enable above market growth

HUVR has market leadership in segments like Soaps, Skin creams, Color

Cosmetics, Body lotions, face wash and shampoos and is No2 in Oral care and

No3 in Deo’s.

HUVR is aiming for faster and bigger innovations to drive growth in this market

and to capitalise on rising consumer aspirations.

HUVR is leading market development in categories like body wash, hand wash,

hair conditioners, body lotions etc to create long term growth drivers.

HUVR has undertaken product extensions across existing brands to propel

growth in this segment. Ponds has launched Mens face wash, Axe has launched

Signature perfumed Deo, FAL has launched “BB” and Lux has seen a premium

Body wash.

Axe has seen launch of axe signature deo which has resulted in increase in

market share. HUVR is looking at entering the antiperspirants in order to regain

market leadership in the category.

HUVR has lost market share in oral care, it has launched Close Up diamond

attraction and Pepsodent Clove and salt (south India) which have been well

received. It expects improved performance in this business in FY16.

HUVR is re‐launching its flagship brand “Liril” on the freshness plank with a

tagline “freshness is back”. We believe the success of this brand can significantly

enhance growth rates in toilet soaps business for the company.

June 29, 2015 5

Hindustan Unilever

Exhibit 1: FMCG sales grow by 9%

13.1

7.1

9.9 10.0 9.0

13.4

10.4

8.0 9.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

Q4FY13

Q1FY14

Q2FY14

Q3FY14

Q4FY14

Q1FY15

Q2FY15

Q3FY15

Q4FY15

(%)

Source: Company Data, PL Research

Exhibit 2: Volume growth up 6% led by promotions and price cuts

6.3

4.0

3.0

4.0

3.0

6.0

5.0

3.0

6.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Q4FY13

Q1FY14

Q2FY14

Q3FY14

Q4FY14

Q1FY15

Q2FY15

Q3FY15

Q4FY15

(%)


Exhibit 3: Ad spend up 22.3%, up 160bps YoY

12.7 13.1

13.8

12.9

11.8 12.2 12.1

12.6

13.5

10.0 10.5 11.0 11.5 12.0 12.5 13.0 13.5 14.0 14.5

Q4FY13

Q1FY14

Q2FY14

Q3FY14

Q4FY14

Q1FY15

Q2FY15

Q3FY15

Q4FY15

(%)


Exhibit 4: Gross margins up 230bps; EBITDA margins expands 120bps

46.9 47.4

49.7

15.0

15.2

16.4

12.0

13.0

14.0

15.0

16.0

17.0

18.0

42.0

44.0

46.0

48.0

50.0

52.0

Q4FY13

Q1FY14

Q2FY14

Q3FY14

Q4FY14

Q1FY15

Q2FY15

Q3FY15

Q4FY15

Gross Margins (%) EBITDA Margins (%) (RHS)


Exhibit 5: Brent Crude Oil has seen rebound from lows

112 103

110 109 109 108 108

76

57.0 68.0

0

20

40

60

80

100

120

4QFY13

1QFY14

2QFY14

3QFY14

4QFY14

1QFY15

2QFY15

3QFY15

4QFY15

Current

(US$ / bbl)


Exhibit 6: PFAD: prices up 18.1% YoY, down 13.6% QoQ

0.9

‐5.6

56.2

22.1

‐13.5

‐27.5

‐35.0

‐9.4

19.4

54.3

38.0

18.2

‐2.9

26.6

‐16.0

‐16.3

‐18.5

13.3

17.2

10.3

5.3

1.4

‐40.0

‐20.0

0.0

20.0

40.0

60.0

80.0

Dec‐11

Mar‐12

Jun‐12

Sep‐12

Dec‐12

Mar‐13

Jun‐13

Sep‐13

Dec‐13

Mar‐14

Jun‐14

(%)

YoY QoQ


June 29, 2015 6

Hindustan Unilever

HUL has more than 11 brands above Rs10b and 6 brands above Rs20b

Fabric Conditioners, Green Tea and Soups are emerging businesses

HUL is undertaking 360 degree activations – Brooke Bond Red label

June 29, 2015 7

Hindustan Unilever

90% of portfolio has seen innovation/ renovation in past 2 years

Non TV mediums are 30% of ad‐spends, Digital is 10%

June 29, 2015 8

Hindustan Unilever

Central India branch to focus on low penetration UP, MP, Bihar, Rajasthan and Chhattisgarh

HUL is customizing products to “Win in Many India’s”

June 29, 2015 9

Hindustan Unilever

HUL is investing in distribution channels of future

Cost Focus‐ Reduction in Material, supply chain and overhead costs is boosting margins

June 29, 2015 10

Hindustan Unilever

Exhibit 7: Segmental Performance; Personal care disappointment continues, Process foods EBIT grows 64% as margins expands 170bps YoY

Quarterly Segmental 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 2QFY14 3QFY14 4QFY14

Net Sales (Rs m)

Soaps and Detergents 67,854 68,694 72,011 70,649 76,904 76,101 77,478 76,711

Personal Products 34,077 33,808 33,979 34,971 38,476 37,551 36,002 36,737

Beverages 18,834 19,503 23,039 19,833 21,596 21,427 24,546 22,497

Processed Foods 7,574 8,354 8,500 8,690 8,366 8,991 9,197 9,762

Others 4,579 3,980 3,728 4,197 5,438 4,513 4,199 4,768

2,791 3,049 2,766 2,958 3,029 3,618 3,535 2,947

Sales Growth %

Soaps and Detergents

Personal Products 7.7 6.4 7.1 9.6 12.9 11.1 6.0 5.0

Beverages 2.0 11.8 12.4 8.3 14.7 9.9 6.5 13.4

Processed Foods 15.8 16.1 7.2 7.5 10.5 7.6 8.2 12.3

Others 4.8 8.7 12.9 12.7 18.8 13.4 12.6 13.6

5.7 5.7 (4.7) 18.2 8.5 18.7 27.8 (0.4)

EBIT (Rs m)

Soaps and Detergents 10,815 10,784 12,205 10,785 13,083 12,207 12,993 13,120

Personal Products 4,393 4,739 4,509 4,217 5,318 5,112 5,024 4,883

Beverages 4,682 4,449 6,592 4,958 5,967 5,223 6,809 6,245

Processed Foods 1,387 1,417 1,373 1,630 1,363 1,557 1,410 1,816

Others 384 133 (134) 230 591 200 (213) 254

(31) 46 (135) (251) (155) 116 (38) (78)

EBIT Growth %

Soaps and Detergents


Beverages (1.6) 5.3 13.9 5.1 27.4 17.4 3.3 26.0

Processed Foods 46.1 37.5 (2.2) 19.7 (1.8) 9.9 2.7 11.4

Others 54.9 1,378.9 (409.5) 64.4 53.8 50.1 58.7 10.6

(28.9) 125.4 27.6 (38.6) (401.6) 150.4 (72.1) (68.7)

EBIT Margin %

Soaps and Detergents 12.9 14.0 13.3 12.1 13.8 13.6 14.0 13.3


Beverages 18.3 17.0 16.2 18.8 16.3 17.3 15.3 18.6

Processed Foods 8.4 3.3 (3.6) 5.5 10.9 4.4 (5.1) 5.3


June 29, 2015 11

Hindustan Unilever

Exhibit 8: Sales growth expected to pick up from 2HFY16 and increased competitive edge due to various initiatives taken by HUVR

Annual Segmental FY11 FY12 FY13 FY14 FY15 FY16E FY17E

Net Sales (Rs m)

Soaps and Detergents 87,916 106,363 127,018 136,834 148,766 162,050 182,138

Personal Products 58,441 68,459 74,717 81,209 90,065 102,122 120,440

Beverages 23,440 26,174 29,747 33,119 36,315 40,066 44,765

Processed Foods 14,517 13,595 15,057 16,483 18,918 22,210 25,698

Others 4,380 6,364 10,928 11,563 13,129 15,098 17,363

Sales Growth (%)

Soaps and Detergents 6.4 21.0 19.4 7.7 8.7 8.9 12.4

Personal Products 15.8 17.1 9.1 8.7 10.9 13.4 17.9

Beverages 9.4 11.7 13.6 11.3 9.7 10.3 11.7

Processed Foods 13.3 21.7 (6.4) 10.8 9.5 14.8 17.4

Others 26.3 45.3 71.7 5.8 13.5 15.0 15.0

EBIT (Rs M)

Soaps and Detergents 8,341 12,333 16,155 17,858 20,337 23,821 26,956

Personal Products 14,948 17,446 19,489 20,681 24,243 27,982 33,482

Beverages 3,578 3,667 4,746 5,807 6,146 7,092 8,058

Processed Foods 323 242 370 613 832 1,277 1,593

Others (750) (249) (390) (370) (155) 100 350

EBIT Margin (%)

Soaps and Detergents 9.5 11.6 12.7 13.1 13.7 14.7 14.8


Beverages 15.3 14.0 16.0 17.5 16.9 17.7 18.0

Processed Foods 2.2 1.8 2.5 3.7 4.4 5.8 6.2

Others (17.1) (3.9) (3.6) (3.2) (1.2) 0.7 2.0

EBIT Growth (%)

Soaps and Detergents (29.6) 47.9 31.0 10.5 13.9 17.1 13.2


Beverages 11.9 2.5 29.4 22.4 5.8 15.4 13.6

Processed Foods 88.7 (25.2) 53.2 65.5 35.8 53.6 24.8

Others (17.1) (3.9) (3.6) (3.2) (1.2) 0.7 2.0


June 29, 2015 12

Hindustan Unilever

Income Statement (Rs m)

Y/e March 2014 2015 2016E 2017E

Net Revenue 280,191 307,341 342,649 392,506

Raw Material Expenses 143,436 156,236 169,331 195,933

Gross Profit 136,755 151,106 173,318 196,573

Employee Cost 14,360 16,113 17,366 19,350

Other Expenses 77,643 83,949 93,605 104,201

EBITDA 44,753 51,043 62,347 73,022

Depr. & Amortization 2,606 2,867 3,060 3,295

Net Interest 360 168 168 168

Other Income 6,210 6,184 5,784 6,310

Profit before Tax 47,997 54,192 64,902 75,870

Total Tax 12,444 16,246 20,379 22,761

Profit after Tax 35,553 37,946 44,523 53,109

Ex‐Od items / Min. Int. 6,243 10,413 — —

Adj. PAT 35,553 37,946 44,523 53,109

Avg. Shares O/S (m) 2,162.7 2,163.5 2,163.5 2,163.5

EPS (Rs.) 16.4 17.5 20.6 24.5

Cash Flow Abstract (Rs m)

Y/e March 2014 2015 2016E 2017E

C/F from Operations 53,971 55,852 54,291 65,407

C/F from Investing (10,848) (8,283) (9,298) (10,542)

C/F from Financing (40,995) (44,525) (47,163) (52,827)

Inc. / Dec. in Cash 2,128 3,043 (2,170) 2,039

Opening Cash 3,963 7,047 8,143 8,013

Closing Cash 7,047 8,143 8,013 9,686

FCFF 41,763 48,289 36,633 53,855

FCFE 41,763 48,289 36,633 53,855

Key Financial Metrics

Y/e March 2014 2015 2016E 2017E

Growth

Revenue (%) 8.6 9.7 11.5 14.6

EBITDA (%) 11.8 14.1 22.1 17.1

PAT (%) 7.3 6.7 17.3 19.3

EPS (%) 7.3 6.7 17.3 19.3

Profitability

EBITDA Margin (%) 16.0 16.6 18.2 18.6

PAT Margin (%) 12.7 12.3 13.0 13.5

RoCE (%) 87.1 92.2 97.4 93.4

RoE (%) 119.5 108.4 113.3 117.7

Balance Sheet

Net Debt : Equity (1.4) (0.7) (1.4) (1.3)

Net Wrkng Cap. (days) (63) (53) (46) (41)

Valuation

PER (x) 54.0 50.6 43.1 36.2

P / B (x) 58.6 51.6 46.4 39.3

EV / EBITDA (x) 41.9 37.1 29.9 25.4

EV / Sales (x) 6.7 6.2 5.4 4.7

Earnings Quality

Eff. Tax Rate 25.9 30.0 31.4 30.0

Other Inc / PBT 12.9 11.4 8.9 8.3

Eff. Depr. Rate (%) 5.9 5.9 6.0 6.0

FCFE / PAT 117.5 127.3 82.3 101.4

Source: Company Data, PL Research.

Balance Sheet Abstract (Rs m)

Y/e March 2014 2015 2016E 2017E

Shareholder's Funds 32,771 37,248 41,362 48,848

Total Debt — — — —

Other Liabilities 10,811 1,701 11,340 12,357

Total Liabilities 43,581 38,949 52,701 61,205

Net Fixed Assets 27,418 31,023 30,015 30,220

Goodwill — — — —

Investments 6,362 32,779 6,541 6,541

Net Current Assets 8,184 (25,155) 15,654 22,918

Cash & Equivalents 46,796 25,376 57,077 65,792

Other Current Assets 47,791 46,861 53,222 61,330

Current Liabilities 86,403 97,392 94,645 104,204

Other Assets 1,617 1,960 1,992 2,026

Total Assets 43,581 40,607 54,201 61,705

Quarterly Financials (Rs m)

Y/e March Q2FY15 Q3FY15 Q4FY15 Q3FY15E

Net Revenue 76,393 77,743 76,041 80,902

EBITDA 12,420 13,315 12,467 14,562

% of revenue 16.3 17.1 16.4 18.0

Depr. & Amortization 764 731 705 775

Net Interest 63 42 — 68

Other Income 1,978 1,201 984 1,550

Profit before Tax 13,571 13,743 12,746 15,269

Total Tax 4,001 4,189 4,119 4,504

Profit after Tax 9,882 12,522 10,181 10,765

Adj. PAT 9,570 9,553 8,626 10,765

Key Operating Metrics

Y/e March 2014 2015 2016E 2017E

Volume Growth % 3.8 3.4 5.8 8.1

Ad spends% 13.2 12.8 13.1 12.8

Tax Rate % 25.9 30.7 31.4 30.0

Source: Company Data, PL Research.

June 29, 2015 13

Hindustan Unilever

Prabhudas Lilladher Pvt. Ltd.

3rd Floor, Sadhana House, 570, P. B. Marg, Worli, Mumbai‐400 018, India

Tel: (91 22) 6632 2222 Fax: (91 22) 6632 2209

Rating Distribution of Research Coverage PL’s Recommendation Nomenclature

43.3%39.2%

17.5%

0.0%0%

10%

20%

30%

40%

50%

BUY Accumulate Reduce Sell

% of Total Coverage

BUY : Over 15% Outperformance to Sensex over 12‐months

Accumulate : Outperformance to Sensex over 12‐months

Reduce : Underperformance to Sensex over 12‐months

Sell : Over 15% underperformance to Sensex over 12‐months

Trading Buy : Over 10% absolute upside in 1‐month

Trading Sell : Over 10% absolute decline in 1‐month

Not Rated (NR) : No specific call on the stock

Under Review (UR) : Rating likely to change shortly

DISCLAIMER/DISCLOSURES

ANALYST CERTIFICATION

We/I, Mr. Amnish Aggarwal (MBA, CFA), Mr. Gaurav Jogani (MBA, Bcom), Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report.

Terms & conditions and other disclosures:

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