P&G Hygiene and Healthcare
Estimate changes
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
448.3 / 6.1
14100 / 9700
13/17/-18
107
5 May 2021
3QFY21 Results Update | Sector: Consumer
CMP: INR13,811
TP: INR15,900 (+15%)
Buy
Topline below our expectations; increase in ad spends augurs well
Financials & valuations (INR b)
Y/E June
2020 2021E 2022E 2023E
Sales
30.0 34.9 41.1 49.6
Sales Gr. (%)
1.9 16.4 17.6 20.7
EBITDA
6.2
7.4
9.9 12.5
Margins (%)
20.6 21.1 24.0 25.2
Adj. PAT
4.4
5.4
7.3
9.4
Adj. EPS (INR)
136.5 166.8 225.8 288.3
EPS Gr. (%)
5.8 22.2 35.3 27.7
BV/Sh.(INR)
356.7 259.8 304.9 362.6
Ratios
RoE (%)
42.9 54.1 80.0 86.4
RoCE (%)
44.5 56.4 83.4 89.8
Valuations
P/E (x)
101.2 82.8 61.2 47.9
P/BV (x)
38.7 53.2 45.3 38.1
EV/EBITDA (x)
71.1 60.0 44.7 35.1
Div. Yield (%)
0.8
1.7
1.3
1.7
Shareholding pattern (%)
As On
Mar-21 Dec-20
Promoter
70.6
70.6
DII
13.5
13.5
FII
2.5
2.5
Others
13.3
13.4
FII Includes depository receipts
P&G Hygiene & Health Care’s (PGHH) 3QFY21 sales growth, while healthy at
15.8% YoY, was lower than our expectations, considering: a) the strong
momentum in recent quarters; and b) a favorable base, with a 6.2% sales
decline in 3QFY20 (June year-ending company).
There was a steep increase of 73% YoY in advertising spends, translating to
ad spends coming in at 17.1% of sales in 3QFY21, much higher than the
usual quarterly levels of 9-12% of sales. With gross margin actually above
expectations (up 20bp YoY v/s our expectation of a 160bp YoY decline), high
ad spends was the key reason for the miss on our EBITDA margin forecasts.
The increased ad spends augur well for maintaining the sales growth
momentum seen in recent quarters.
The special dividend of INR150 per share is encouraging. Along with our
forecast of 80% dividend payout in coming years, we believe special
dividends will be an intermittent feature of the business every 2-3 years,
given the healthy cash generation. This also elevates return ratios.
Valuations at 47.9x FY23E EPS are not cheap, but best-of-breed structural
earnings growth potential and improving RoEs lead us to maintain our
BUY
rating.
Sales disappoint, margin came in lower on increased ad spends
Mar-20
70.6
12.9
2.8
13.7
Sales in 3QFY21 grew 15.8% YoY to INR7.6b
(v/s our estimate of INR8.2b),
with EBITDA (adjusted) fell 1.5% to INR1.4b (v/s our expectation of INR2b),
PBT (adjusted) declined 1.4% to INR1.4b (v/s our estimate of INR1.9b), and
adjusted PAT grew 2.6% to INR1b (v/s our expectation of INR1.5b).
Reported PAT grew 7.9% to INR983m.
During 3QFY21, non-current assets held for sale were fully impaired as
PGHH was unable to dispose of these assets. Consequently, an impairment
loss of INR76.4m has been recognized.
Gross margin expanded 20bp YoY to 66.8% (v/s our estimate of 65%).
Ad spends grew sharply (73.4% YoY) to INR1.3b, employee expenses grew
13.5% to INR570m, while other expenses (adjusted) rose 6.4% to INR1.8b.
As a percentage of sales, employee costs/other expenses (adjusted) fell
20bp/210bp YoY to 7.5%/24.3%. Ad spends grew 570bp YoY to 17.1%,
leading to a 320bp contraction in EBITDA margin to 17.9% (v/s our estimate
of 24.1%) in 3QFY21. In 9MFY21, ad spends were up 14.3% YoY and stood at
11.8% of sales, which is slightly elevated when compared to the last three
years, where they have been in the 10-11% range.
Sales/EBITDA/adjusted PAT grew 17.7%/22.7%/25.8% YoY in 9MFY21.
Krishnan Sambamoorthy – Research Analyst
(Krishnan.Sambamoorthy@MotilalOswal.com)
Research Analyst: Dhairya Dhruv
(Dhairya.Dhruv@MotilalOswal.com)/Kaiwan
Jal Olia
(kaiwan.o@motilaloswal.com)
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
 Motilal Oswal Financial Services
P&G Hygiene and Healthcare
Highlights from the management commentary
Feminine Care and Healthcare businesses delivered strong double-digit growth
in 3QFY21.
The company has declared a special interim dividend of INR150/share of INR10
each. This is noteworthy as we were expecting a final dividend of INR150/share.
The management continues to focus on superior execution, improving
productivity, leading constructive disruption, and strengthening its organization
and culture.
The strategies mentioned above have enabled PGHH to deliver consistent
results, thus proving that these strategies will deliver balanced growth over the
long-term.
Valuation and view
While there has been a 7.7% reduction in our FY21E EPS estimate (June year-
ending company) due to: a) sales miss, b) much higher ad spends relative to
expectations, and c) as we exercise some caution on sales growth in 4Q due to
the ongoing lockdowns, there is no significant change to our FY22E/FY23E EPS
estimate.
Two factors make PGHH an attractive long-term core holding: a) huge category
growth potential in the Feminine Hygiene segment (~67% of sales), coupled with
potential for market share gains due to considerable moats, and b) potential for
higher margin gains from premiumization in the Feminine Hygiene segment over
the long term.
While valuations are not cheap at 47.9x FY23E EPS, strong topline and earnings
momentum, best-of-breed structural earnings growth potential, and improving
RoEs will ensure premium multiples. We maintain our
BUY
rating with a TP of
INR15,900/share (targeting 55x FY23E EPS).
5 May 2021
2
 Motilal Oswal Financial Services
P&G Hygiene and Healthcare
Standalone Quarterly Earnings
Y/E June
Net Sales
YoY change (%)
Gross profit
Margin (%)
EBITDA
Growth
Margin (%)
Depreciation
Interest
Other Income
PBT
Tax
Rate (%)
Reported PAT
Adjusted PAT
YoY Change (%)
Margin (%)
E: MOFSL estimates
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
1,368
0.9
16.1
(INR m)
3Q Var.
FY21E (%)
8,201 -7.4%
25.0
5,330
65.0
1,980 -31.2%
43.1
24.1
142
15
120
1,943 -29.6%
490
25.2
1,454
1,454 -28.3%
43.1
17.7
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
911
1,359 1,016
9.5
12.8
15.8
15.5
4Q
1Q
6,345 10,095
-0.5
18.5
4,013 6,663
63.2
66.0
1,103 2,293
70.2
25.8
17.4
22.7
132
118
10
4
96
96
1,056 2,267
364
552
34.5
19.1
692 2,341
692 1,715
13.9
25.3
10.9
17.0
FY21
2Q
3Q
10,184 7,597
18.5
15.8
7,056 5,078
69.3
66.8
2,567 1,363
37.5
-1.5
25.2
17.9
120
113
21
30
94
148
2,520 1,369
698
326
21.8
24.9
2,506
983
1,822 1,042
34.0
2.6
17.9
13.7
4QE
7,073
11.5
4,444
62.8
1,151
4.4
16.3
141
31
102
1,082
245
22.6
837
837
20.9
11.8
FY20
30,020
1.9
18,912
63.0
6,176
1.4
20.6
479
61
441
6,078
1,642
27.5
4,331
4,436
5.8
14.8
FY21E
34,948
16.4
23,240
66.5
7,374
19.4
21.1
491
85
439
7,237
1,492
25.2
4,434
5,415
22.1
15.5
Key Performance Indicators
Y/E June
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
E: MOFSL estimates
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
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
1Q
13.0
6.4
13.1
34.0
6.1
8.9
28.3
1.2
1.7
46.1
-13.7
53.5
-13.2
27.4
FY21
2Q
11.8
17.6
21.8
30.7
4.1
10.7
29.4
1.2
-2.6
-3.6
0.5
49.1
3.7
39.7
3Q
4.8
-2.6
7.7
33.2
0.4
1.8
3.1
1.5
15.0
13.5
73.4
6.4
1.6
-1.3
5 May 2021
3
 Motilal Oswal Financial Services
P&G Hygiene and Healthcare
Key exhibits
Exhibit 1: Reported net sales grew 15.8% YoY to INR7.6b
Sales (INR b)
20.4
4.3
16.2
22.9 21.5
7.6
5.0
(6.2)
Sales growth (%)
18.5 18.5
(0.5)
15.8
Exhibit 2: EBITDA declines 1.5% YoY to INR1.4b
EBITDA (INR b)
EBITDA growth (%)
70.2
11.8
(36.0)
25.8
(9.0) (1.9)
(13.1)
(22.8)
(2.4) (3.6)
37.5
(1.5)
5.2 7.9 8.2 7.0 6.4 8.5 8.6 6.6 6.3 10.1 10.2 7.6
0.8 2.1 1.9 1.4 0.6 1.8 1.9 1.4 1.1 2.3 2.6 1.4
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 3: Gross margin expands 20bp YoY to 66.8%
Gross margin (%)
Exhibit 4: EBITDA margin contracts 320bp YoY to 17.9%
EBITDA margin (%)
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 5: As a percentage of sales, ad spends grew 570bp YoY, while staff costs/other expenses fell 20bp/210bp
A&P spends as % of sales
Staff costs as % of sales
Other expenses as % of sales
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
24.3
33.4
6.0
6.5
28.3
6.1
8.9
29.4
7.5
4.1
10.7
17.1
Source: Company, MOFSL
5 May 2021
4
 Motilal Oswal Financial Services
P&G Hygiene and Healthcare
Valuation and view
Happenings over the last 10 years
While PGHH delivered sales/EBITDA/PAT of ~20%/~14%/~12% CAGR in the first
half of the decade ending FY20, growth has been much slower (by ~5% CAGR)
on all these fronts in the second half, dragging down decadal sales/EBITDA/PAT
to ~13%/~10%/~8% CAGR.
Price cuts taken at the beginning of the decade, category development efforts,
and an increase in distribution led to EBITDA margin declining over FY10-14, but
sales and EBITDA are still growing at a healthy pace.
In an effort to revitalize sales growth, the management has embarked on a
second round of investments in ad spends, distribution expansion, new
launches, and price cuts over the past 7-8 quarters. While this yielded strong
topline growth in FY19 (20% sales growth), sales growth was tepid in FY20 at
1.9%, weighed down by the slowdown in Personal Care categories.
While there has been a 7.7% reduction in our FY21E EPS estimate (June year-
ending company) due to: a) sales miss, b) much higher ad spends relative to
expectations, and c) as we exercise some caution on sales growth in 4Q due to
the ongoing lockdowns, there is no significant change to our FY22E/FY23E EPS
estimate.
Two factors make PGHH an attractive long-term core holding: a) huge category
growth potential in the Feminine Hygiene segment (~67% of sales), coupled with
potential for market share gains due to considerable moats, and b) potential for
higher margin gains from premiumization in the Feminine Hygiene segment over
the long term.
While valuations are not cheap at 47.9x FY23E EPS, strong topline and earnings
momentum, best-of-breed structural earnings growth potential, and improving
RoEs will ensure premium multiples. We maintain our
BUY
rating with a TP of
INR15,900/share (targeting 55x FY23E EPS).
Old
FY22E
41,746
10,228
7,560
Change (%)
FY21E
FY22E
FY23E
-3.0
-1.5
-0.1
-7.8
-3.6
2.3
-7.7
-3.1
2.8
Source: Company, MOFSL
Avg (x)
+1SD
Max (x)
-1SD
Our view on the stock
Exhibit 6: Revise our FY21E/FY22E/FY23E EPS forecasts by -7.7%/-3.1%/2.8%
Change in estimates
Net Sales
EBITDA
Adjusted PAT
FY21E
34,948
7,374
5,415
New
FY22E
41,101
9,864
7,329
FY23E
49,614
12,503
9,358
FY21E
36,034
7,999
5,869
FY23E
49,667
12,218
9,100
Exhibit 7: PGHH’s P/E (x)
P/E (x)
Min (x)
90.0
70.0
50.0
30.0
10.0
Avg (x)
+1SD
Max (x)
-1SD
Exhibit 8: Consumer sector P/E (x)
52.0
P/E (x)
Min (x)
66.7
50.3
78.7
46.8
41.6
36.3
24.7
31.0
57.3
33.9
44.0
36.0
28.0
20.0
40.4
26.0
Source: Bloomberg, MOFSL
Source: Bloomberg, MOFSL
5 May 2021
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
-6.4
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
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
0.0
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
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
0.0
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
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
533
6,073
0
6,073
1,882
31.0
4,191
4,191
9.5
14.2
0.0
FY19
325
8,766
9,091
-368
0
8,723
4,145
1,803
2,342
0
146
0
13,315
2,034
1,814
5,405
4,063
7,080
5,477
895
709
6,235
8,723
0
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
5,972
1,642
27.5
4,331
4,436
5.8
14.8
0.0
FY20
325
11,254
11,579
-296
15
11,298
4,674
2,609
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
34,948
16.4
11,708
33.5
2,097
6.0
13,770
39.4
27,574
78.9
7,374
21.1
491
6,883
85
439
7,237
-1,311
5,926
1,492
25.2
4,434
5,415
22.1
15.5
0.0
FY21E
325
8,107
8,432
-325
15
8,121
5,347
2,906
2,441
0
200
0
12,747
2,106
2,106
5,564
2,970
7,267
5,807
646
814
5,480
8,121
0
FY22E
41,101
17.6
13,974
34.0
2,261
5.5
15,002
36.5
31,237
76.0
9,864
24.0
541
9,323
55
526
9,794
0
9,794
2,465
25.2
7,329
7,329
35.3
17.8
0.0
FY22E
325
9,573
9,897
-358
15
9,554
5,867
3,447
2,419
0
200
0
15,359
2,477
2,477
7,425
2,979
8,424
6,818
711
896
6,935
9,554
0
(INR m)
FY23E
49,614
20.7
16,869
34.0
2,729
5.5
17,514
35.3
37,111
74.8
12,503
25.2
594
11,908
55
652
12,506
0
12,506
3,148
25.2
9,358
9,358
27.7
18.9
0.0
FY23E
325
11,444
11,769
-394
15
11,390
6,408
4,042
2,366
0
200
0
18,808
2,990
2,990
9,839
2,988
9,984
8,217
782
985
8,824
11,390
0
Standalone Balance Sheet
Y/E June
Equity Share Capital
Total Reserves
Net Worth
Deferred Tax Liabilities
Total Loans
Capital Employed
(INR m)
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Goodwill on Consolidation
Capital WIP
Total Investments
Curr. Assets, Loans and Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability and Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Appl. of Funds
E: MOFSL estimates
5 May 2021
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
106.2
94.5
27.1
19.2
72.2
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
103.7
91.0
85.2
19.3
67.3
2.8
123.7
39.7
41.0
4.6
24
22
54
0.0
FY18
117.8
134.1
248.2
40.0
34.0
117.3
103.0
55.7
18.1
70.8
0.3
116.3
57.5
59.8
3.1
22
21
57
0.0
FY19
129.0
144.5
280.1
101.3
78.6
107.1
95.6
49.3
15.0
72.7
0.7
126.4
48.9
51.1
3.4
20
20
59
0.0
FY20
136.5
151.4
356.7
105.1
78.8
101.2
91.2
38.7
14.6
71.1
0.8
130.5
42.9
44.5
2.7
25
21
66
0.0
FY21E
166.8
182.0
259.8
233.6
140.0
82.8
75.9
53.2
12.7
60.0
1.7
122.9
54.1
56.4
4.3
22
22
60
0.0
FY22E
225.8
242.4
304.9
180.6
80.0
61.2
57.0
45.3
10.7
44.7
1.3
224.5
80.0
83.4
4.3
22
22
60
0.0
FY23E
288.3
306.6
362.6
230.6
80.0
47.9
45.0
38.1
8.8
35.1
1.7
287.7
86.4
89.8
4.4
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
Dividend Paid
Interest Paid
Others
CF from Fin. Activity
Inc./Dec. in 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
-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
-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
-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
-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
-1,878
-12
-16
-1,906
3,621
5,405
9,025
FY21E
5,926
491
-354
0
69
-1,492
4,641
-652
3,989
0
216
-436
-7,581
-85
0
-7,666
-3,462
9,025
5,564
FY22E
9,794
541
-471
0
407
-2,465
7,807
-520
7,287
0
493
-27
-5,863
-55
0
-5,918
1,862
5,564
7,425
(INR m)
FY23E
12,506
594
-597
0
525
-3,148
9,880
-541
9,339
0
616
76
-7,486
-55
0
-7,541
2,414
7,425
9,839
5 May 2021
7
 Motilal Oswal Financial Services
P&G Hygiene and Healthcare
N OTES
5 May 2021
8
 Motilal Oswal Financial Services
P&G Hygiene and Healthcare
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
< - 10 % to 15%
Rating may undergo a change
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
********************************************************************************************************************************
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
5 May 2021
9
 Motilal Oswal Financial Services
P&G Hygiene and Healthcare
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.
-
5 May 2021
10