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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
(%)
Source: Company Data, PL Research
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
(%)
Source: Company Data, PL Research
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)
Source: Company Data, PL Research
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)
Source: Company Data, PL Research
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
Source: Company Data, PL Research
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
Personal Products 14.0 4.5 14.5 10.1 21.1 7.9 11.4 15.8
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
Personal Products 24.9 22.8 28.6 25.0 27.6 24.4 27.7 27.8
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
Source: Company Data, PL Research
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
Personal Products 25.6 25.5 26.1 25.5 26.9 27.4 27.8
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
Personal Products 15.3 16.7 11.7 6.1 17.2 15.4 19.7
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
Source: Company Data, PL Research
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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The research analysts, with respect to each issuer and its securities covered by them in this research report, certify that: All of the views expressed in this research report accurately reflect his or her or their personal views about all of the issuers and their securities; and No part of his or her or their compensation was, is or will be directly related to the specific recommendation or views expressed in this research report
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