15 September 2020
Update | Sector: Consumer
Pidilite
BSE SENSEX
39,044
S&P CNX
11,522
CMP: INR1,498
TP: INR1,385 (-8%)
Neutral
Transformative changes underway
In a presentation (link) in our Annual Global Investor Conference recently, Mr Bharat
Puri – MD of Pidilite (PIDI), highlighted two factors that could drive transformational
change at the company level:
Faster growth in the ‘Growth’ and ‘Pioneer’ categories would lead to contribution
from these categories increasing from around one-third of sales combined to
around half of sales over the next three to four years. This would provide
significant impetus to the topline over the medium term, something that has been
lacking in recent years.
Technology implementation in distribution in recent years is boosting efficiency
and elevating distributor ROI, enabling the company to retain channel loyalty in
the current uncertain times.
We maintain a Neutral rating on the stock from a one-year perspective on account
of fair valuations (58.5x FY22 EPS) and uncertain near-term recovery, especially in
the B2B part of the business (~15% of sales). However, initiatives to grow the
Growth and Pioneer categories could go a long way in revitalizing medium-term
sales and earnings growth, which have dropped significantly in the past four
years. These metrics reported an 8–10% CAGR over the past four years v/s ~16%
and ~20%, respectively, in the first six years of the decade.
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
PIDI IN
513
761.1 / 10.2
1710 / 1186
6/-16/4
1223
Financials Snapshot (INR b)
Y/E Mar
2020 2021E
Sales
72.9
62.7
Sales Gr. (%)
3.0
-14.0
EBITDA
15.8
12.7
Margins (%)
21.6
20.2
Adj. PAT
11.7
8.7
EPS (INR)
23.1
17.1
EPS Gr. (%)
24.5
-26.2
BV/Sh.(INR)
87.7
95.6
Ratios
RoE (%)
27.3
18.6
RoCE (%)
25.0
17.3
Payout (%)
30.2
44.0
Valuations
P/E (x)
64.9
87.9
P/BV (x)
17.1
15.7
EV/EBITDA (x)
47.3
58.4
Div. Yield (%)
0.5
0.5
Shareholding pattern (%)
As On
Jun-20 Mar-20
Promoter
70.2
69.9
DII
8.1
8.0
FII
11.2
11.5
Others
10.5
10.6
FII Includes depository receipts
Stock Performance (1-year)
Pidilite Inds.
1,800
1,500
Sensex - Rebased
2022E
83.2
32.6
18.3
22.0
13.0
25.6
50.3
112.1
24.7
23.3
29.3
58.5
13.4
40.2
0.5
Growth and Pioneer categories to grow faster
In the past few years, the company has undertaken a series of acquisitions and
tie-ups (see Exhibit 2), many of which are likely to attain critical size in the
upcoming years. The company has also increased its stake in some of these
businesses in recent years. The share of the ‘Growth’ and ‘Pioneer’ categories
has gradually increased from ~25% of sales to ~33%, but the needle is likely to
move even more sharply for these segments in the next three to four years,
resulting in a ~50% contribution to sales from these segments. Products in the
Growth category, which we believe would drive a significant portion of this
growth, include Dr. Fixit (waterproofing), WD-40 (maintenance spray), Nina
Percept (waterproofing), ICA-Pidilite (wood coating), and the international
business. On the other hand, Pioneer brands/tie-ups comprise Roff (tile
adhesives), Jowat (industrial adhesives), Cipy (floor coating), Tenax (adhesives
and coatings for marble, granite, and stone), Grupo Puma (mortar and plasters
for flooring and walls), and Litokol (epoxy grout).
Jun-19
69.8
8.0
11.5
10.8
Distribution and penetration growth – key focus in Growth business
Rapid expansion in the Growth business is attributable to significant efforts on
category creation in recent years. This is likely to continue going forward, along
with increased distribution and penetration. Furthermore, for the international
business, the focus would be more on markets similar to India and deploying an
‘India-like’ approach in terms of strategy. The expansion of brands such as
Fevikwik to nearly 4m outlets (now among the best distributed consumer brands
in the country) is testimony to the company’s out-of-the-box thinking on
distribution expansion. On a broad basis, ‘Growth’ category brands and
segments are likely to grow at 2–4x GDP growth.
1,200
900
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
Pidilite
Category creation, leveraging PIDI’s distribution strength – key focus in
Pioneer category
The company made most of its investments in Pioneer brands very recently. This
involved significant category creation, especially as the categories are very nascent
compared with those in other countries. PIDI has synergized the business with
existing businesses in terms of distribution and end customers, i.e. contractors. The
company targets ~INR1b revenue or higher for the Pioneer categories over the next
three years.
Core business to grow at 1–2x GDP
The Core business (Fevicol and sub-brands Fevikwik, M-Seal, and Fevicryl) is likely to
grow at 1–2x GDP. Growth at the higher end of this band would be possible if
renovations and new construction activity picks up. Longer term opportunity still
remains high in the Core business, particularly on account of: (a) consistent
premiumization and (b) gains from the unorganized portion of the Adhesives
market, which stands at 30–35%. Notably, and contrary to expectations, there has
been no sharp increase in readymade furniture as customized furniture is still more
cost-effective in India v/s readymade furniture. Nevertheless, as demonstrated from
the slowing of overall revenue growth (~8% in the last four years v/s ~16% over
FY10–16) (Exhibit 1), there was perhaps a need to boost revenue growth through
additional drivers.
No material change in C&B to B2B mix
Importantly, many of the Growth and Pioneer categories are B2C. This means that
there is unlikely to be any material change in the current 85:15 mix for Consumer
and Bazaar (C&B) and B2B products over the next three to four years, by the end of
which the Growth and Pioneer categories are likely to comprise around half of sales.
A change in the C&B: B2B mix could have had implications on margins and ROCE.
Digital and analytics push leading to significant gains
The company has historically been well behind other consumer companies in terms
of distribution technology and analytics. However, it has shown significant
improvement in these aspects over the past two years, leading to greater efficiency
and better decision making. Each distributor employee has a handheld device and
auto-replenishment is fully in place. Channel inventory days have already been
reduced by 7–10 days, thereby boosting distributor RoI. Further efficiency gains are
still possible going forward. Notably, month-end and year-end dumping are a thing
of the past.
15 September 2020
2
 Motilal Oswal Financial Services
Pidilite
Exhibit 1: Performance in last four years has slowed v/s strong performance over FY10–16
Y/E March (INR b)
Sales
Gross Profit
Gross Margin (%)
EBITDA
EBITDA Margin (%)
PAT
PAT Margin (%)
CFO
FCF
FY10
22.2
10.8
48.7
4.1
18.2
2.7
12.4
3.9
3.1
FY16
53.6
27.8
51.8
11.7
21.9
8.0
15.0
9.1
7.4
FY20
72.9
38.9
53.4
15.8
21.6
11.7
16.1
12.8
8.4
FY10–16
CAGR
15.8
17.0
305 bps
19.4
366 bps
19.6
264 bps
15.0
15.4
FY16–20
FY10–20
CAGR
AGR
8.0
12.6
8.8
13.6
157 bps
462 bps
7.7
14.6
-28 bps
338 bps
9.9
15.6
110 bps
374 bps
9.0
12.6
3.0
10.3
Source: Company, MOFSL
Exhibit 2: PIDI has invested considerably in acquisitions and JVs in recent years
FY
FY20
Company
JV - Pidilite C-Techos Walling Limited
Tenax India Stone Products
Aapkapainter
Pepperfry
Home Lane
JV with Chetana Exponential Technologies
JV - Pidilite Grupo Puma Manufacturing Limited
JV - Pidilite Litokol Private Limited
JV - Pidilite East Africa Limited
CIPY Polyurethanes Pvt. Ltd.
ICA Pidilite Pvt. Ltd.
Nina Waterproofing Systems Pvt. Ltd.
Stake at acquisition Consideration
(%)
(INR m)
60
NA
70
800
25
50
2
700
5
490
NA
NA
50
NA
60
NA
55
NA
70
964
50
1,310
70
820
Source: Company, MOFSL
FY19
FY18
FY17
FY16
While Core products are likely to grow at 1–2x GDP, the trend has been closer to 1x
GDP in recent years. Particularly beyond the COVID-impacted FY21, the Growth and
Pioneer categories are likely to drive overall sales growth. Growth category products
are likely to grow at 2–4x GDP (more than twice that of Core products). The nascent
Pioneer category products are targeted to attain INR1b sales in three years.
Exhibit 3: Growth and Pioneer categories would drive growth in medium term
Source: Company, MOFSL
15 September 2020
3
 Motilal Oswal Financial Services
Pidilite
The Growth and Pioneer categories are targeted to contribute around half of sales
over the next 3–4 years, compared with one-third of sales currently. We believe the
Growth category may be the bigger driver of this incremental spurt in the
forthcoming few years, while the Pioneer category would be a huge driver of topline
growth in the medium-to-long term.
Exhibit 4: Well-placed portfolio across categories
Source: Company, MOFSL
The company has laid a strong base for rapid expansion in Growth category products
over the next few years, particularly aided by category awareness efforts as well as
increased marketing efforts.
Exhibit 5: Strategy would drive performance in Growth category…
Source: Company, MOFSL
Distribution expansion is also playing a huge role in driving expansion in Growth
category products. Fevikwik, in particular, has been a remarkable case study on
distribution expansion. Overall product reach is at over 3.2m outlets now vis-à-vis
the best FMCG company brands. The company’s clutter-breaking marketing is also
facilitating faster growth.
15 September 2020
4
 Motilal Oswal Financial Services
Pidilite
Exhibit 6: …led by growing penetration and distribution expansion
Source: Company, MOFSL
Exhibit 7: Distribution expansion is a key pillar of strategy for Growth category
Source: Company, MOFSL
Compared with the erstwhile approach of focusing on a multitude of geographies,
including the US and Brazil, in recent years, the company has decided to focus on
certain emerging markets with high growth potential and where an ‘India-like’
approach could work very well.
15 September 2020
5
 Motilal Oswal Financial Services
Pidilite
Exhibit 8: International expansion in target markets with ‘India-like’ strategy to expand
Growth category
Source: Company, MOFSL
All the Pioneer category brands are in the nascent categories; thus, the company is
trying to grow the categories using innovation and technology and by leveraging on
its relationships and distribution strength.
Exhibit 9: Key enablers for Pioneer category
Source: Company, MOFSL
R&D is gaining increasing importance, with a nearly 2.5x increase seen in R&D
spends over the past five years. There has also been significant augmentation of
manufacturing capacity at both the standalone and subsidiary levels to drive
planned future growth in the Core, Growth, and Pioneer categories.
15 September 2020
6
 Motilal Oswal Financial Services
Pidilite
Exhibit 10: Significant investment in R&D to drive innovation
Source: Company, MOFSL
Exhibit 11: Investments in manufacturing and technology for Pioneer category
Source: Company, MOFSL
Exhibit 12: Engaging with influencers would drive adoption/sales in Pioneer category
Source: Company, MOFSL
15 September 2020
7
 Motilal Oswal Financial Services
Pidilite
Exhibit 13: Technology and digital are playing a key role in terms of strategy for Pioneer
category
Source: Company, MOFSL
Exhibit 14: Consolidated segmental performance
Segmental
Consumer and Bazaar (C&B)
Net Sales (INR m)
Net Sales Growth (%)
Sales Contribution %
EBIT (INR m)
EBIT Growth %
EBIT Contribution %
EBIT margin %
Capital Employed (INR m)
Segment ROCE %
Business to Business (B2B)
Net Sales (INR m)
Net Sales Growth (%)
Sales Contribution %
EBIT (INR m)
EBIT Growth %
EBIT Contribution %
EBIT margin %
Capital Employed (INR m)
Segment ROCE %
FY15
40,180
83.4
7,673
89.9
19.1
8,227
93.3
7,573
15.7
967
11.3
12.8
2,467
39.2
FY16
48,021
19.5
84.2
11,823
54.1
88.5
24.6
13,159
89.8
8,531
12.6
15.0
1,554
60.8
11.6
18.2
2,368
65.6
FY17
51,306
6.8
84.6
12,569
6.3
88.6
24.5
16,427
76.5
8,827
3.5
14.6
1,662
6.9
11.7
18.8
2,693
61.7
FY18
52,706
2.7
84.8
13,718
9.1
89.8
26.0
19,244
71.3
8,924
1.1
14.3
1,583
-4.8
10.4
17.7
3,453
45.8
FY19
53,823
2.1
76.0
13,867
1.1
87.0
25.8
18,622
74.5
16,074
80.1
22.7
2,160
36.5
13.5
13.4
5,993
36.0
FY20
55,497
3.1
76.1
15,473
11.6
85.3
27.9
21,082
73.4
16,693
3.8
22.9
2,710
25.5
14.9
16.2
6,862
39.5
FY15-20
CAGR
6.7
15.1
878 bps
20.7
17.1
22.9
347 bps
22.7
FY19 and FY20 numbers are based on restructured segments
Source: Company, MOFSL
15 September 2020
8
 Motilal Oswal Financial Services
Pidilite
Exhibit 15: Standalone segmental performance
Segmental
Consumer and Bazaar (C&B)
Sales (INR m)
Sales Growth (%)
Sales Contribution %
EBIT (INR m)
EBIT Growth %
EBIT Contribution %
EBIT margin %
Capital Employed (INR m)
Segment ROCE %
Business to Business (B2B)
Sales (INR m)
Sales Growth (%)
Sales Contribution %
EBIT (INR m)
EBIT Growth %
EBIT Contribution %
EBIT margin %
Capital Employed (INR m)
Segment ROCE %
FY15
35,723
81.7
7,676
89.9
21.5
9,023
85.1
7,573
17.3
967
11.3
12.8
2,467
39.2
FY16
41,636
16.6
82.2
11,410
48.6
88.1
27.4
8,812
129.5
8,531
12.6
16.8
1,554
60.8
12.0
18.2
2,368
65.6
FY17
43,669
4.9
82.4
12,544
9.9
88.6
28.7
10,130
123.8
8,827
3.5
16.7
1,662
6.9
11.7
18.8
2,693
61.7
FY18
45,428
4.0
82.7
13,500
7.6
89.6
29.7
10,951
123.3
8,924
1.1
16.3
1,583
-4.8
10.5
17.7
3,453
45.8
FY19
48,116
5.9
79.0
14,169
5.0
88.8
29.4
11,465
123.6
11,941
33.8
19.6
1,863
17.7
11.7
15.6
4,308
43.2
FY20
49,928
3.8
78.8
15,314
8.1
85.8
30.7
13,502
113.4
12,643
5.9
20.0
2,574
38.2
14.4
20.4
4,971
51.8
FY15-20
CAGR
6.9
14.8
919 bps
8.4
10.8
21.6
760 bps
15.0
FY19 and FY20 numbers are based on restructured segments
Source: Company, MOFSL:
15 September 2020
9
 Motilal Oswal Financial Services
Pidilite
Financials and valuations
Income Statement
Y/E March
Net Sales
Change (%)
Raw Materials
Gross Profit
Margin (%)
Operating Expenses
EBITDA
Change (%)
Margin (%)
Depreciation
Int. and Fin. Charges
Other Income
Profit before Taxes
Change (%)
Margin (%)
Tax
Tax Rate (%)
Adj PAT
Change (%)
Margin (%)
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Loans
Deferred Liability
Minority Interest
Capital Employed
Gross Block
Less: Accum. Depn.
Net Fixed Assets
Capital WIP
Goodwill
Others
Investments
Curr. Assets, L&A
Inventory
Account Receivables
Cash and Bank Balance
Others
Curr. Liab. and Prov.
Current liabilities
Provisions
Net Current Assets
Application of Funds
E: MOFSL Estimates
FY16
53,612
9.9
25,847
27,765
51.8
16,030
11,735
45.8
21.9
1,005
133
778
11,376
66.6
21.2
3,335
29.3
8,040
56.6
15.0
FY17
56,168
4.8
26,396
29,772
53.0
17,174
12,598
7.4
22.4
1,151
139
1,123
12,430
9.3
22.1
3,851
31.0
8,579
6.7
15.3
FY18
60,784
8.2
28,877
31,908
52.5
18,495
13,412
6.5
22.1
1,199
155
1,484
13,542
8.9
22.3
3,927
29.0
9,615
12.1
15.8
FY19
70,787
16.5
35,866
34,922
49.3
21,240
13,682
2.0
19.3
1,327
261
1,466
13,560
0.1
19.2
4,132
30.5
9,428
-1.9
13.3
FY20
72,945
3.0
34,025
38,920
53.4
23,160
15,760
15.2
21.6
1,699
336
1,494
15,219
12.2
20.9
3,477
22.8
11,742
24.5
16.1
FY21E
62,746
-14.0
27,819
34,927
55.7
22,235
12,692
-19.5
20.2
1,911
337
1,135
11,579
-23.9
18.5
2,915
25.2
8,665
-26.2
13.8
(INR m)
FY22E
83,230
32.6
37,406
45,825
55.1
27,525
18,300
44.2
22.0
1,941
317
1,359
17,402
50.3
20.9
4,380
25.2
13,022
50.3
15.6
(INR m)
FY22E
508
56,437
56,945
1,173
693
2,157
60,967
31,618
16,443
15,175
2,593
1,840
728
22,146
34,445
10,605
12,420
5,947
5,473
15,960
15,051
910
18,484
60,967
FY16
513
25,867
26,380
800
753
434
28,367
17,942
7,901
10,040
1,581
1,334
517
7,055
16,611
6,274
7,016
1,318
2,003
8,772
8,223
549
7,839
28,367
FY17
513
34,196
34,709
975
877
1,273
37,835
20,329
8,915
11,414
1,477
1,338
754
14,431
18,290
7,209
7,685
999
2,397
9,870
9,231
639
8,420
37,835
FY18
508
35,233
35,740
1,226
1,048
1,750
39,764
21,624
9,976
11,648
2,277
1,774
793
12,459
23,034
8,043
9,381
1,636
3,974
12,222
11,573
649
10,812
39,764
FY19
508
40,973
41,481
1,111
1,094
2,072
45,757
23,518
10,892
12,626
2,421
1,850
889
15,477
25,775
9,345
10,560
1,904
3,966
13,281
12,534
747
12,494
45,757
FY20
508
44,048
44,556
2,806
693
2,157
50,211
28,818
12,591
16,227
2,593
1,840
728
11,862
31,977
9,295
10,885
7,033
4,765
15,016
14,194
822
16,961
50,211
FY21E
508
48,064
48,572
1,403
693
2,157
52,825
29,618
14,502
15,116
2,593
1,840
728
17,004
27,648
7,995
9,363
5,408
4,882
12,105
11,279
825
15,543
52,825
15 September 2020
10
 Motilal Oswal Financial Services
Pidilite
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout %
Valuation (x)
P/E
Cash P/E
EV/Sales
EV/EBITDA
P/BV
Dividend Yield (%)
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Debtor (Days)
Creditor (Days)
Asset Turnover (x)
Leverage Ratio
Debt/Equity (x)
Cash Flow Statement
Y/E March
PBT before Extra Ord
Add: Depreciation
Interest Paid
Less: Taxes Paid
Non operaing income
(Incr)/Decr in WC
CF from Operations
Incr in FA
Free Cash Flow
Pur of Investments
Others
CF from Invest.
Change in share capital
Incr in Debt
Dividend Paid
Interest Paid
Others
CF from Fin. Activity
Incr/Decr of Cash
Add: Opening Balance
Closing Balance
E: MOFSL Estimates
FY16
15.7
17.6
51.5
0.5
3.2
95.6
85.0
14.2
64.9
29.1
0.0
32.8
31.1
45.6
48
72
3.0
0.0
FY17
16.7
19.0
67.7
4.7
28.2
89.6
79.0
13.4
59.9
22.1
0.3
28.1
26.2
40.2
50
77
2.8
0.0
FY18
18.9
21.3
70.4
6.0
31.5
79.2
70.4
12.3
55.8
21.3
0.4
27.3
25.1
39.1
56
89
2.7
0.0
FY19
18.6
21.2
81.7
6.5
34.9
80.8
70.8
10.5
54.5
18.4
0.4
24.4
22.5
34.8
54
80
2.8
0.0
FY20
23.1
26.5
87.7
7.0
30.2
64.9
56.7
10.2
47.3
17.1
0.5
27.3
25.0
39.7
54
91
2.2
0.1
FY21E
17.1
20.8
95.6
7.5
44.0
87.9
72.0
11.8
58.4
15.7
0.5
18.6
17.3
28.5
54
82
2.0
0.0
FY22E
25.6
29.4
112.1
7.5
29.3
58.5
50.9
8.8
40.2
13.4
0.5
24.7
23.3
42.1
54
85
2.5
0.0
(INR m)
FY22E
17,402
1,941
317
0
1,359
-2,402
15,898
-2,000
13,898
-5,142
-3,021
-10,163
0
-230
-4,649
-317
0
-5,196
539
5,408
5,947
FY16
11,408
1,005
82
3,140
268
-12
9,075
-1,659
7,416
-2,577
-671
-4,907
0
116
-4,032
-133
339
-3,711
458
860
1,318
FY17
12,483
1,151
80
3,733
645
-1,399
7,938
-1,224
6,713
-6,613
-825
-8,662
0
55
-316
-139
807
407
-318
1,318
999
FY18
13,588
1,199
81
4,276
854
-1,774
7,964
-1,760
6,204
2,896
-566
570
0
-4
-2,930
-155
-4,808
-7,898
636
999
1,636
FY19
13,416
1,327
55
4,093
467
-1,791
8,448
-2,538
5,910
-2,317
281
-4,574
0
-92
-3,635
-167
287
-3,606
269
1,636
1,904
FY20
14,698
1,699
211
3,931
448
565
12,796
-4,439
8,356
4,713
551
825
28
328
-8,254
-254
-340
-8,492
5,128
1,904
7,032
FY21E
11,579
1,911
337
2,915
1,135
-207
9,571
-800
8,771
-5,142
1,135
-4,807
0
-1,403
-4,649
-337
0
-6,389
-1,625
7,033
5,408
15 September 2020
11
 Motilal Oswal Financial Services
Pidilite
NOTES
15 September 2020
12
 Motilal Oswal Financial Services
Pidilite
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
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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.
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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
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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
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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
15 September 2020
13
 Motilal Oswal Financial Services
Pidilite
********************************************************************************************************************************
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
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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
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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.
15 September 2020
14