P&G Hygiene and Healthcare
Estimate change
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
PG IN
32
334.6 / 4.4
12700 / 8500
-6/-4/-6
74
25 August 2020
4QFY20 Results Update | Sector: Consumer
CMP: INR10,309
recent years
TP: INR10,450 (+1%)
Neutral
Sales better than expected; margins buck weak 4Q trend of
Financials & Valuations (INR b)
Y/E March
2020 2021E 2022E
Sales
30.0 32.7 37.6
Sales Gr. (%)
1.9
9.0 14.9
EBITDA
6.2
7.4
8.8
Margins (%)
20.6 22.7 23.4
Adj. PAT
4.4
5.4
6.5
Adj. EPS (INR)
136.5 167.0 199.0
EPS Gr. (%)
8.0 22.4 19.1
BV/Sh.(INR)
356.7 390.2 430.0
Ratios
RoE (%)
42.9 44.8 48.6
RoCE (%)
44.5 46.3 50.1
Valuations
P/E (x)
75.5 61.7 51.8
P/BV (x)
28.9 26.4 24.0
EV/EBITDA (x)
52.7 43.1 36.1
Div. Yield (%)
1.0
1.3
1.5
Shareholding pattern (%)
As On
Jun-20 Mar-20
Promoter
70.6
70.6
DII
13.2
12.9
FII
2.6
2.8
Others
13.6
13.7
FII Includes depository receipts
Performance significantly better than expected
P&G Hygiene and Healthcare (PGHH) reported flat sales in 4QFY20 (June
year-end), which came as a pleasant surprise given the lockdown-related
disruptions seen during the quarter. Operating margins also bucked the
trend of very steep decline in margins in 4Q v/s the preceding three
quarters, something that was witnessed in FY18 and FY19. Accordingly,
significant EBITDA and PAT beat was reported v/s expectations.
While the structural opportunity remains attractive in both the Feminine
Hygiene and Healthcare segments, valuations are fair at 51.8x June FY22
EPS. Maintain
Neutral.
PGHH’s sales for 4QFY20 were flat YoY at INR6.3b
(est.: INR5.6b), with
EBITDA growing 70.2% YoY to INR1.1b (est.: INR759m) and PBT rising 83.2%
YoY to INR1.1b (est.: INR695m).
Adj. PAT grew 13.9% YoY to INR692m (est.: INR493m) on higher tax in
4QFY20.
Ad spends declined 41.5% YoY to INR411m, employee expenses grew 43.6%
YoY to INR381m, whereas other expenses were flat YoY at INR2.1b.
Gross margins expanded 430bp YoY to 63.2%.
As a percentage of sales, ad
spends declined by 450bp YoY to 6.5%, employee costs rose by 180bp YoY
to 6%, and other expenses were down by 30bp YoY to 33.4%. This led to a
720bp expansion in EBITDA margins to 17.4% (est.: 13.5%) in 4QFY20.
FY20 sales/EBITDA/PAT grew by +1.9%/+1.4%/+8% YoY.
On an average basis, receivables/inventory/creditors increased by 1/5/7
days, resulting in the cash conversion cycle improving to -20 days in FY20
from -18 days in FY19.
Short-term loans and advances declined 93% YoY, while long-term loans
and advances increased marginally. This possibly indicates a further
reduction in inter-group lending to the unlisted entity, which has been
significantly curtailed in recent years.
Cash flow from operations increased by 14.8% YoY to INR4.7b in FY20.
The company has declared dividend of INR105 per share on reported EPS
of INR133, leading to a payout of 79%.
Amid this unprecedented crisis, PGHH is prioritizing the health and safety of
its employees and maximizing the availability of its products, which play an
essential role in meeting the daily health and hygiene needs of its
consumers across the country.
FY20 performance
Jun-19
70.6
11.2
3.4
14.8
Highlights from management commentary
Krishnan Sambamoorthy – Research analyst
(Krishnan.Sambamoorthy@MotilalOswal.com)
Research analyst: Dhairya Dhruv
(Dhairya.Dhruv@motilaloswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
P&G Hygiene and Healthcare
While unheard-of market challenges and uncertainties persist in the near term,
PGHH would continue to focus on its strategy to drive superiority and improve
productivity, and aim to drive balanced growth.
As a part of the COVID-19 relief program ‘P&G Suraksha India’, Whisper
supported the government and relief organizations with more than 2.2m
sanitary pads for female healthcare workers, women, and girls in
underprivileged containment areas and migrant communities. Vicks donated
more than 33,000 protective hygiene and ration kits to elderly people in need.
Valuation and view
While the near-term sales growth trajectory is unclear, PGHH has a more
resilient portfolio than peers to withstand the COVID-19-related disruption in
the post-lockdown phase. Changes to the model have led to a 4.8%/4% increase
in FY21/FY22 EPS.
Although valuations are expensive at 51.8x FY22E EPS, implying near-term
upside is limited, two factors make PGHH an attractive long-term core holding:
(a) huge category growth potential in the Feminine Hygiene segment (~70% of
sales) and potential for market share gains due to considerable moats, and (b)
huge potential margin gains from premiumization in Feminine Hygiene over the
long term. Maintain Neutral, with TP of INR10,450 (50x Sep’22 EPS).
FY19
2Q
3Q
4Q
8,181 6,993 6,376
16.2
22.9
21.5
4,542 4,032 3,761
55.5
57.7
59.0
1,912 1,437
648
-9.0
-1.9 -22.8
23.4
20.5
10.2
123
126
128
5
5
40
117
84
97
1,901 1,390
577
660
489
-31
34.7
35.2
-5.4
1,241
901
608
-5.4
-1.4
36.5
15.2
12.9
9.5
FY20
2Q
3Q
8,593 6,561
5.0
-6.2
5,381 4,371
62.6
66.6
1,867 1,384
-2.4
-3.6
21.7
21.1
115
118
22
24
90
145
1,820 1,388
461
371
25.3
29.0
1,359 1,016
9.5
12.8
15.8
15.5
FY19
4Q
6,345
-0.5
4,013
63.2
1,103
70.2
17.4
132
10
96
1,056
364
34.5
692
13.9
10.9
29,469
20.0
17,101
58.0
6,093
-3.0
20.7
498
55
402
5,942
1,836
30.5
4,106
7.3
13.9
FY20
30,020
1.9
18,912
63.0
6,176
1.4
20.6
479
61
441
6,078
1,642
27.5
4,436
8.0
14.8
(INR m)
FY20 Var.
4QE (%)
5,633 12.6%
-11.6
3,418.4
60.7
759 45.2%
17.2
13.5
145
20
100
695 51.9%
202
29.1
493 40.4%
-18.9
8.8
Standalone – Quarterly Earnings
Y/E June
Net Sales
YoY Change (%)
Gross profit
Margin (%)
EBITDA
Growth
Margins (%)
Depreciation
Interest
Other Income
PBT
Tax
Rate (%)
Adj PAT
YoY Change (%)
Margins (%)
E: MOFSL Estimates
1Q
7,918
20.4
4,766
60.2
2,096
11.8
26.5
121
4
104
2,075
719
33.3
1,356
17.3
18.2
1Q
8,521
7.6
5,146
60.4
1,822
-13.1
21.4
115
4
110
1,814
445
24.6
1,368
0.9
16.1
25 August 2020
2
 Motilal Oswal Financial Services
P&G Hygiene and Healthcare
Quarterly Earnings
Y/E June
1Q
2Y average growth (%)
Sales
EBITDA
PAT
% of Sales
COGS
Employee Expenses
A&P Expenses
Other Expenses
Depreciation
YoY change (%)
COGS
Employee Expenses
A&P Expenses
Other Expenses
Other Income
EBIT
15.0
17.9
14.0
39.8
4.5
10.5
18.7
1.5
13.7
22.8
57.7
33.4
194.9
13.1
FY19
2Q
12.8
-8.5
-9.1
44.5
4.5
11.0
16.7
1.5
29.7
27.2
32.9
16.8
64.5
-9.1
3Q
11.0
-3.3
-4.8
42.3
4.9
10.0
22.1
1.8
44.6
5.9
-3.2
37.6
27.5
-1.2
4Q
12.9
-29.4
-3.2
41.0
4.2
11.0
33.6
2.0
40.7
8.8
3.6
31.9
41.9
-27.4
1Q
14.0
-0.6
9.1
39.6
4.9
12.3
21.8
1.3
7.1
17.5
25.6
25.6
5.6
-13.6
FY20
2Q
10.6
-5.7
2.0
37.4
5.0
12.6
23.3
1.3
-11.7
16.3
20.4
47.0
-22.6
-2.1
3Q
8.4
-2.8
5.7
33.4
7.7
11.4
26.5
1.8
-26.1
45.2
6.4
12.3
72.2
-3.4
(INR m)
4Q
10.5
23.7
25.2
36.8
6.0
6.5
33.4
2.1
-10.9
43.6
-41.5
-1.3
-1.4
86.7
25 August 2020
3
 Motilal Oswal Financial Services
P&G Hygiene and Healthcare
Key exhibits
Exhibit 1: Reported net sales were flat YoY at INR6.3b
Sales (INR b)
20.4
9.5 9.5
(0.9)
4.3
16.2
Sales growth (%)
22.9 21.5
7.6 5.0
(6.2)
24.0
(0.5)
(8.0) (4.8)
(36.0)
11.8
(9.0) (1.9)
(2.4) (3.6)
Exhibit 2: Reported EBITDA grew 70.2% YoY to INR1.1b
EBITDA (INR b)
EBITDA growth (%)
70.2
(22.8)(13.1)
6.6 7.0 5.7 5.2 7.9 8.2 7.0 6.4 8.5 8.6 6.6 6.3
1.9 2.1 1.5 0.8 2.1 1.9 1.4 0.6 1.8 1.9 1.4 1.1
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 3: Gross margins expanded by 430bp YoY to 63.2%
Gross margin (%)
Exhibit 4: EBITDA margins expanded by 720bp YoY to 17.4%
EBITDA margin (%)
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 5: As a % of sales, staff costs grew 180bp YoY, ad spends declined 450bp YoY, and
other expenses declined 30bp YoY
A&P spends as % of sales
Staff costs as % of sales
Other expenses as % of sales
16.9
4.4
8.0
16.6
4.1
9.6
19.8
5.7
12.8
31.0
18.7
4.6
12.9
4.5
10.5
16.7
4.5
11.0
22.1
4.9
10.0
33.6
4.2
11.0
21.8
4.9
12.3
23.3
5.0
12.6
26.5
7.7
11.4
33.4
6.0
6.5
Source: Company, MOFSL
25 August 2020
4
 Motilal Oswal Financial Services
P&G Hygiene and Healthcare
Valuation and view
What has happened over the last 10 years?
The company grew sales/EBITDA/PAT by a ~20%/~14%/~12% CAGR in the first
half of the decade ended FY20. However, growth was much slower at a ~5%
CAGR on all these fronts in the second half of the decade, dragging down
decadal sales/EBITDA/PAT to ~13%/~10%/~8%.
Price cuts taken at the start of the decade, category development efforts, and
increase in distribution led to EBITDA margin decline during FY10–FY14, but
sales and EBITDA grew at a healthy pace.
To revitalize sales growth, the company has embarked on a second round of
investments in ad spends, distribution expansion, new launches, and price cuts
over the past seven or eight quarters. While this yielded strong topline growth
in FY19 (20% sales growth), sales were tepid at 1.9% growth YoY in FY20,
weighed by slowdown in personal care categories.
Our view on the stock
While the near-term sales growth trajectory is unclear, PGHH has a more
resilient portfolio than peers to withstand the COVID-19-related disruption in
the post-lockdown phase. Changes to the model have led to a 4.8%/4% increase
in FY21/FY22 EPS.
Although valuations are expensive at 51.8x FY22E EPS, implying near-term
upside is limited, two factors make PGHH an attractive long-term core holding:
(a) huge category growth potential in the Feminine Hygiene segment (~70% of
sales) and potential for market share gains due to its considerable moats, and
(b) huge potential margin gains from premiumization in Feminine Hygiene over
the long term. Maintain
Neutral,
with TP of INR 10,450 (50x Sep’22 EPS).
Exhibit 6: There is an increase of 4.8%/4% in our PAT forecasts for FY21/FY22
Change in Estimates
Net Sales
EBITDA
Adjusted PAT
New
FY21E
32,733
7,430
5,429
FY22E
37,614
8,802
6,466
Old
FY21E
31,956
7,030
5,181
FY22E
36,714
8,408
6,217
Change
FY21E
2.4%
5.7%
4.8%
FY22E
2.5%
4.7%
4.0%
Source: Company, MOFSL
Exhibit 7: PGHH P/E (x)
90.0
70.0
50.0
30.0
10.0
P/E (x)
Min (x)
Avg (x)
+1SD
Exhibit 8: Consumer sector P/E (x)
83.4
68.7
50.6
32.4
26.0
Max (x)
-1SD
51.0
41.0
31.0
21.0
P/E (x)
Min (x)
Avg (x)
+1SD
47.8
42.5
36.5
25.1
30.4
Max (x)
-1SD
59.7
43.2
Source: Company, MOFSL
Source: Company, MOFSL
25 August 2020
5
 Motilal Oswal Financial Services
P&G Hygiene and Healthcare
Financials and valuations
Standalone – Income Statement
Y/E June
Total Income from Operations
Change (%)
Raw Materials
% of Sales
Employees Cost
% of Sales
Other Expenses
% of Sales
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY16
22,754
-2.5
8,848
38.9
1,174
5.2
6,674
29.3
16,696
73.4
6,059
26.6
517
5,542
63
876
6,355
0
6,355
2,130
33.5
4,225
4,225
22.1
18.6
FY17
23,204
2.0
9,150
39.4
1,141
4.9
6,267
27.0
16,558
71.4
6,646
28.6
597
6,049
104
773
6,718
0
6,718
2,390
35.6
4,327
4,327
2.4
18.6
FY18
24,553
5.8
9,487
38.6
1,152
4.7
7,634
31.1
18,273
74.4
6,280
25.6
524
5,756
53
241
5,944
-82
5,862
2,116
36.1
3,746
3,828
-11.5
15.6
FY19
29,469
20.0
12,368
42.0
1,338
4.5
9,670
32.8
23,376
79.3
6,093
20.7
498
5,595
55
402
5,942
85
6,027
1,836
30.5
4,191
4,106
7.3
13.9
FY20
30,020
1.9
11,108
37.0
1,733
5.8
11,003
36.7
23,844
79.4
6,176
20.6
479
5,697
61
441
6,078
-105
5,973
1,642
27.5
4,331
4,436
8.0
14.8
FY21E
32,733
9.0
12,439
38.0
1,637
5.0
11,228
34.3
25,303
77.3
7,430
22.7
571
6,859
55
451
7,255
0
7,255
1,826
25.2
5,429
5,429
22.4
16.6
(INR m)
FY22E
37,614
14.9
14,293
38.0
1,730
4.6
12,789
34.0
28,812
76.6
8,802
23.4
631
8,171
55
526
8,641
0
8,641
2,175
25.2
6,466
6,466
19.1
17.2
Standalone – Balance Sheet
Y/E June
Equity Share Capital
Total Reserves
Net Worth
Deferred Tax Liabilities
Total Loans
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Goodwill on Consolidation
Capital WIP
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Appl. of Funds
E: MOFSL Estimates
FY16
325
16,193
16,518
-89
0
16,428
5,819
2,645
3,174
0
347
0
18,053
1,275
1,496
10,732
4,550
5,146
3,241
1,838
67
12,907
16,428
0
FY17
325
4,937
5,261
-263
0
4,999
4,024
1,167
2,857
0
408
0
8,073
1,774
1,328
1,168
3,803
6,340
3,632
2,150
558
1,733
4,999
0
FY18
325
7,730
8,055
-230
0
7,825
3,975
1,474
2,501
0
215
0
11,308
1,236
1,485
3,996
4,591
6,199
4,062
1,606
530
5,109
7,825
0
FY19
325
8,766
9,091
-368
0
8,723
4,145
1,803
2,342
0
146
0
13,464
2,034
1,807
5,405
4,219
7,229
5,477
1,043
709
6,235
8,723
0
FY20
325
11,254
11,579
-296
15
11,298
4,042
1,977
2,065
0
222
0
15,702
2,051
1,663
9,025
2,963
6,691
5,313
587
790
9,011
11,298
0
FY21E
325
12,340
12,664
-325
15
12,354
4,910
2,549
2,361
0
200
0
21,039
1,973
1,973
14,111
2,982
11,246
5,443
646
5,157
9,793
12,354
0
(INR m)
FY22E
325
13,633
13,958
-358
15
13,614
5,430
3,180
2,250
0
200
0
24,189
2,267
2,267
16,652
3,002
13,024
6,245
711
6,069
11,165
13,615
0
25 August 2020
6
 Motilal Oswal Financial Services
P&G Hygiene and Healthcare
Financials and valuations
Ratios
Y/E June
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
Working Capital Ratios
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Debt/Equity
FY16
130.0
146.1
508.9
36.0
27.7
79.3
70.6
20.3
14.2
53.5
0.3
92.5
28.2
28.6
1.4
18
19
51
0.0
FY17
133.1
151.7
162.1
389.0
292.2
77.4
67.9
63.6
14.4
50.2
3.8
123.7
39.7
41.0
4.6
24
22
54
0.0
FY18
117.8
134.1
248.2
40.0
34.0
87.5
76.9
41.5
13.5
52.7
0.4
116.3
57.5
59.8
3.1
22
21
57
0.0
FY19
126.3
141.8
280.1
101.3
80.2
81.6
72.7
36.8
11.2
54.0
1.0
126.4
47.9
50.4
3.4
20
20
59
0.0
FY20
136.5
151.4
356.7
105.0
78.7
75.5
68.1
28.9
10.8
52.7
1.0
130.5
42.9
44.5
2.7
22
22
60
0.0
FY21E
167.0
184.9
390.2
133.8
80.0
61.7
55.8
26.4
9.8
43.1
1.3
279.2
44.8
46.3
2.6
22
22
60
0.0
FY22E
199.0
218.7
430.0
159.4
80.0
51.8
47.1
24.0
8.5
36.1
1.5
224.1
48.6
50.1
2.8
22
22
60
0.0
Standalone – Cash Flow Statement
Y/E June
PBT
Depreciation
Net interest expense
Others
(Inc)/Dec in WC
Taxes
CF from Operations
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
Dividend Paid
Interest Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
E: MOFSL Estimates
FY16
6,355
517
-785
66
-615
-2,013
3,525
-523
3,002
0
2,770
2,247
0
0
-1,182
-35
0
-1,217
4,554
6,178
10,732
FY17
6,718
597
-644
146
135
-2,500
4,453
-438
4,015
0
2,009
1,571
0
0
-15,550
-37
0
-15,587
-9,564
10,732
1,168
FY18
5,818
524
-147
225
466
-2,731
4,155
-381
3,774
0
115
-266
0
0
-1,055
-6
0
-1,061
2,828
1,168
3,996
FY19
6,073
498
-317
54
172
-2,350
4,130
-28
4,102
-7
451
416
0
0
-3,131
-7
0
-3,137
1,409
3,996
5,405
FY20
5,939
479
-266
203
-179
-1,435
4,741
-503
4,237
22
1,268
786
0
0
-1,878
-12
-16
-1,906
3,620
5,405
9,025
FY21E
7,255
571
-396
0
4,304
-1,826
9,909
-846
9,063
0
411
-435
0
0
-4,343
-55
11
-4,387
5,086
9,025
14,111
(INR m)
FY22E
8,641
631
-471
0
1,169
-2,175
7,796
-520
7,276
0
481
-39
0
0
-5,173
-55
12
-5,216
2,541
14,111
16,652
25 August 2020
7
 Motilal Oswal Financial Services
P&G Hygiene and Healthcare
NOTES
25 August 2020
8
 Motilal Oswal Financial Services
P&G Hygiene and Healthcare
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial products.
MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are available on
www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading
Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and National Commodity
& Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National Securities Depository
Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance Regulatory &
Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate entities of Motilal Oswal Financial Services Limited are available on the
website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should
be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant
banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from
MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
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 MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong
Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act"
and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and
investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is intended for
distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional
investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document
relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule
15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order
to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities
International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public
appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL in
respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”, of
which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
********************************************************************************************************************************
25 August 2020
9
 Motilal Oswal Financial Services
P&G Hygiene and Healthcare
The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies)
discussed herein or act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject 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.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of
MOFSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature.
The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty,
representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The
report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as
customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed,
in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose
and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report
constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities
discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives,
financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this document
should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including
the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be
suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade securities - involve substantial
risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions
contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as
endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make modifications and
alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from time to time, effect
or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to perform investment
banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a separate, distinct and
independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already
available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the
views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other
person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of
or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject
MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category
of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. Neither the Firm, not its directors,
employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may
arise from or in connection with the use of the information.
The person accessing this information specifically agrees to exempt MOFSL or any of its affiliates or employees from, any
and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold
MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages,
expenses that may be suffered by the person accessing this information due to any
errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263; Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth Management
Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is a distributor of
Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. which is a
group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL. Research & Advisory
services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no assurance or guarantee
of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance Officer: Name: Neeraj
Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.
25 August 2020
10