29 October 2021
2QFY22 Results Update | Sector: Consumer
Marico
Buy
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)
CMP: INR564
MRCO IN
1,290
728.3 / 9.7
606 / 350
2/17/5
1301
TP: INR655 (+16% )
Result broadly in line; gross margin said to improve
Sales in 2QFY22 came in line with our estimate, while margin was slightly
below our expectation. With copra prices under control and the recent
price hikes, the management is confident of gross margin expanding in
2HFY22.
MRCO maintained its positive trajectory in the Foods business. The
management reiterated its sales target at INR5b by the end of FY22. Honey,
Oodles, and Soya Chunks continue to do well, with strong market share and
leadership position within their categories.
With a sales target of INR4.5-5b by FY24 from digital first brands, there is a
much required diversification in the portfolio, boosting its medium-to-long-
term topline growth prospects.
With sustained healthy topline momentum in its core brands now allied
with newer revenue streams, higher P/E multiples compared to the past are
justified. We maintain our
Buy
rating on the stock.
Financials & Valuations (INR b)
Y/E March
2021 2022E 2023E
Sales
80.5
92.5 103.3
Sales Gr. (%)
10.0
15.0
11.7
EBITDA
15.9
17.0
20.6
EBITDA Margin. %
19.8
18.4
19.9
Adj. PAT
11.6
12.4
15.2
Adj. EPS (INR)
9.0
9.6
11.8
EPS Gr. (%)
10.4
7.2
22.2
BV/Sh.(INR)
25.1
35.0
37.1
Ratios
RoE (%)
37.0
32.1
32.7
RoCE (%)
34.2
29.5
30.1
Payout (%)
84.4
86.2
82.0
Valuations
P/E (x)
62.8
58.5
47.9
P/BV (x)
22.5
16.1
15.2
EV/EBITDA (x)
44.9
41.8
34.5
Div. Yield (%)
1.4
1.5
1.7
Shareholding pattern (%)
As On
Sep-21 Jun-21
Promoter
59.5
59.6
DII
8.6
9.7
FII
26.0
25.1
Others
5.9
5.7
FII Includes depository receipts
Sales in line, margin lower than expected
Sep-20
59.6
10.4
23.7
Highlights from the management commentary
6.2
The management views the slightly slower growth in rural India as
Consolidated net sales grew 21.6% YoY to INR24.2b (in line with our
estimate) in 2QFY22.
The domestic business grew 23.6% YoY. Consolidated
EBITDA grew 8.7% YoY to INR4.2b (est. INR4.4b). PBT grew 8% YoY to
INR4.1b (est. INR4.3b). Adjusted PAT grew 4% YoY to INR3.1b (est. INR3.2b).
Consolidated gross margin contracted by 560bp YoY to 42.5%
(est. 43%).
As a percentage of sales, lower staff (-60bp to 6.3%), other expenditure (-
140bp to 10.6%), and A&P expenses (-150bp to 8%) resulted in a 210bp
contraction in EBITDA margin to 17.5% in 2QFY22.
Business segments:
Sales for Parachute/VAHO/Saffola grew 18%/16%/46%
YoY in 2QFY22. Parachute volumes grew 7% YoY.
The board of directors declared an interim dividend of INR3/share.
temporary as fundamentals remain intact.
It has guided at double-digit revenue growth, with mid-to-single digit
volume growth YoY in 2HFY22.
Copra prices are under control (down 11% sequentially) and are likely to
remain range bound.
Vegetable oil prices remained at elevated levels, with the impact of import
duty reduction not yet visible.
Gross margin will expand in 3Q and 4Q, though EBITDA margin is likely to
improve significantly in 4QFY22 as advertising spends are on a sequentially
increasing trend.
Capex is pegged at INR1.5b in FY22.
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
Marico
Valuation and view
Changes to our model have led to a -3.3%/-0.6% change in our FY22E/FY23E EPS
estimate.
a) Ongoing topline growth momentum in each of MRCO’s core segments, b)
significantly higher growth rates as well as targets in the Foods portfolio, and c)
INR4.5-5b targeted from its ‘digital first’ range of products is a highly
encouraging development for a business that had achieved ~6% sales CAGR over
FY15-20, before reporting double-digit growth in FY21.
The much needed diversification could lead to higher multiples compared to the
past. Valuations at 47.9x FY23E EPS appear inexpensive, given the promise of
strong earnings growth compared to the past. We target 50x Dec’23E EPS to
arrive at our TP of INR655/share, implying a 16% upside. We maintain our
Buy
rating.
FY22
FY21 FY22E
2Q
3QE
4QE
8.0
5.0
0.0
9.3
8.5
24,190 23,342 19,747 80,480 92,529
21.6
10.0
-1.9
10.0
15.0
10,270 10,385
9,304 37,780 40,318
42.5
44.5
47.1
46.9
43.6
4,230 4,193
3,780 15,910 17,012
17.5
18.0
19.1
19.8
18.4
8.7
1.5
18.5
8.3
6.9
330
353
389 1,390 1,402
100
78
82
340
340
250
271
319
920 1,111
4,050 4,034
3,627 15,100 16,381
890
908
868 3,240 3,686
22.0
22.5
23.9
21.5
22.5
70
50
60
270
270
3,090 3,076
2,699 11,590 12,425
4.0
0.2
13.4
10.4
7.2
(INR m)
FY22 Var.
2QE (%)
9.0
23,868
1.3%
20.0
10,267
43.0
4,405
-4.0%
18.5
13.3
353
81
292
4,263
-5.0%
959
22.5
70
3,234
-4.5%
8.9
Quarterly performance
Y/E March
Domestic volume growth (%)
Net Sales
YoY Change (%)
Gross Profit
Gross margin (%)
EBITDA
Margins (%)
YoY Change (%)
Depreciation
Interest
Other Income
PBT
Tax
Rate (%)
Minority Interest
Adjusted PAT
YoY Change (%)
E: MOFSL estimates
1Q
-14.0
19,250
-11.1
9,360
48.6
4,670
24.3
1.3
340
90
190
4,430
1,030
23.3
90
3,310
3.4
FY21
2Q
3Q
4Q
11.0
15.0
25.0
19,890 21,220 20,120
8.7
16.3
34.5
9,550 9,950
8,880
48.0
46.9
44.1
3,890 4,130
3,190
19.6
19.5
15.9
10.2
10.7
13.1
330
360
360
80
70
100
270
240
290
3,750 3,940
3,020
690
820
560
18.4
20.8
18.5
90
50
80
2,970 3,070
2,380
20.2
12.9
16.1
1Q
21.0
25,250
31.2
10,360
41.0
4,810
19.0
3.0
330
80
270
4,670
1,020
21.8
90
3,560
7.6
Key performance indicators
Y/E March
Volume growth (%)
Parachute rigid
Saffola (Refined Edible Oil)
VAHO
Domestic
International
Overall
Value growth (%)
Parachute rigid
Saffola (Refined Edible Oil)
VAHO
Domestic
International
International cc
Overall
2Y average growth (%)
Volume
29 October 2021
1Q
-11.0
16.0
-30.0
-14.0
-8.0
-12.6
-12.0
16.0
-32.0
-15.0
2.0
-4.0
-11.1
-4.0
FY21
2Q
10.0
20.0
4.0
11.0
-8.0
6.6
8.0
16.0
-1.0
8.0
12.0
7.0
8.9
6.0
3Q
8.0
17.0
21.0
15.0
10.0
13.9
9.0
26.0
21.0
18.0
11.0
8.0
16.5
7.0
4Q
29.0
17.0
22.0
25.0
20.0
23.9
38.0
43.0
22.0
27.3
25.0
23.0
26.8
11.0
FY22
1Q
12.0
24.0
34.0
21.0
20.0
20.8
20.0
60.0
35.0
26.6
20.0
21.0
25.1
3.5
2Q
7.0
NA
NA
8.0
13.0
9.2
18.0
46.0
16.0
18.7
14.0
13.0
17.6
9.5
2
 Motilal Oswal Financial Services
Marico
Key performance indicators
Y/E March
Sales
EBITDA
PAT
% of Sales
COGS
Operating Expenses
Depreciation
YoY change (%)
COGS
Operating Expenses
Other Income
EBIT
E: MOFSL Estimates
1Q
-2.1
13.6
14.5
51.4
24.4
1.8
-13.0
-17.4
-32.1
1.6
FY21
2Q
4.2
13.0
18.4
52.0
28.5
1.7
12.3
2.0
-22.9
11.9
3Q
7.2
7.3
11.7
53.1
27.4
1.7
21.4
11.3
-17.2
10.6
4Q
13.7
4.5
6.6
55.9
28.3
1.8
48.3
24.8
-9.4
16.0
FY22
1Q
10.0
2.1
5.5
59.0
22.0
1.3
50.6
18.3
42.1
3.5
2Q
15.2
9.5
12.1
57.5
25.0
1.4
34.6
6.7
-7.4
9.6
Exhibit 1: India business volume up 8% in 2QFY22
2QFY21
Segment growth (%)
Parachute rigid
Saffola (Refined Edible Oil)
Value Added Hair Oils
Domestic business
Volume
10.0
20.0
4.0
11.0
Value
8.0
16.0
(1.0)
8.0
3QFY21
Volume
8.0
17.0
21.0
15.0
Value
9.0
26.0
21.0
18.0
4QFY21
Volume
29.0
17.0
22.0
25.0
Value
38.0
43.0
22.0
37.0
1QFY22
Volume
12.0
24.0
34.0
21.0
Value
20.0
60.0
35.0
35.0
2QFY22
Volume
7.0
NA
NA
8.0
Value
18.0
46.0
16.0
24.0
Source: Company, MOFSL
Exhibit 2: Domestic volumes up 8% in 2QFY22
Domestic volume growth (%)
Exhibit 3: Parachute rigid volumes up 7%
Parachute rigid volume growth (%)
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 4: Consolidated segmental details
Sales growth (%)
Domestic
International
Total
EBIT margin (%)
Domestic EBIT margin
International EBIT margin
Total
2QFY20
(2.8)
8.3
(0.4)
19.2
20.4
19.5
3QFY20
(4.8)
7.9
(2.0)
21.6
19.1
21.0
4QFY20
(7.6)
(5.1)
(7.0)
20.8
16.3
19.7
1QFY21
(14.5)
2.3
(11.1)
24.2
28.1
25.1
2QFY21
7.9
11.6
8.7
19.4
21.6
19.9
3QFY21
17.9
4.7
14.7
20.0
20.6
20.1
4QFY21
37.3
25.1
34.5
16.1
18.9
16.7
1QFY22
34.6
19.8
31.2
17.8
26.1
19.5
2QFY22
24.0
14.1
21.6
16.7
22.4
18.0
Source: Company, MOFSL
29 October 2021
3
 Motilal Oswal Financial Services
Marico
Highlights from the management commentary
Business environment and outlook
Management estimates that there may be some near term slowdown within
some Staple categories as the wallet share of out-of-home picks up.
It believes that slightly slower growth in rural is temporary as fundamentals are
intact.
For 2HFY22, the management guides for double-digit revenue growth with mid-
single-digit volume growth YoY.
Input cost Inflation and margins
High inflation and disruptions to the global supply chain need to be watched out
for.
Copra prices are under control (down 11% sequentially) and are likely to remain
range bound.
Vegetable oil prices remained at elevated levels with the impact of import duty
reduction not yet visible. The global vegetable oil crop has been good but
because crude prices are up, some of this crop gets diverted to fuel – a
phenomenon that is common as crude prices go over USD60 levels.
Even so, gross margin will still expand in both, 3QFY22 and 4QFY22 though
EBITDA margin is only likely to improve significantly in 4QFY22 as advertising
spends are on a sequentially increasing trend.
Blended gross margin will inch up in the medium-term as the salience of
Parachute and VAHO come down.
Growth in Foods on track
Saffola Honey is doing very well.
Modern Trade (MT) now accounts for 20% of Saffola meal maker soya chunks.
Soya chunks can be a significant General Trade (GT) product too.
Saffola Oodles are scaling up well and are amongst the top-5 in their category
on Amazon. The GT play can be significant here as well.
INR5b of sales in Foods this year is likely in line with management’s guidance.
Other points
Volume growth and value growth in VAHO were similar in the quarter.
Saffola saw 2-3% volume growth.
Chyawan Amrut was re-launched after an underwhelming initial response.
Capex for the year is expected to be INR1.5b.
29 October 2021
4
 Motilal Oswal Financial Services
Marico
Valuation and view
What has happened in the last 10 years?
In key categories such as Coconut Oil and VAHO, MRCO reported healthy sales
growth, with volume growth in Parachute actually improving in recent years.
In Saffola Foods (oats), the company was able to strengthen its market share. It
grew significantly in the Masala Oats category.
Growth in Saffola (Edible Oil brand) has tapered off in recent years as a result of
strategic mistakes in terms of pricing and due to the company being unable to
cater to the recently emerged Super Premium market segment.
Similarly, the brands acquired from Paras/Reckitt – Livon, Set Wet, and Zatak –
have not scaled up as expected, despite a higher growth potential.
Topline and earnings growth have been healthy over the past 10 years, with
~11%/15%/16% topline/EBITDA/PAT CAGR. Over the past five years, growth has
been healthy, but has tapered off v/s the past (sales/EBITDA/PAT growth of
~5%/11%/~13%).
Our view on the stock
Changes to our model have led to a -3.3%/-0.6% change in our FY22E/FY23E EPS
estimates.
a) Ongoing topline growth momentum in each of MRCO’s core segments, b)
significantly higher growth rates as well as targets in the Foods portfolio, and c)
INR4.5-5b targeted from its ‘Digital-first’ range of products are highly
encouraging developments for a business that had ~6% sales CAGR over FY15-
20, before reporting double-digit growth in FY21.
The much needed diversification could lead to higher multiples compared to the
past. Valuations at 47.9x FY23E EPS appear inexpensive, given the promise of
strong earnings growth compared to the past. We target 50x Dec’23E EPS to
arrive at our TP of INR655/share, implying a 16% upside. We maintain our Buy
rating.
Exhibit 5: Revise our FY22E/FY23E EPS estimate by -3.3%/-0.6%
INR m
Sales
EBITDA
PAT
FY22E
92,529
17,549
12,855
Old estimate
FY23E
1,01,030
20,676
15,265
FY22E
92,529
17,012
12,425
New estimate
FY23E
1,03,328
20,579
15,178
FY22E
0.0%
-3.1%
-3.3%
FY23E
2.3%
-0.5%
-0.6%
Source: Company, MOFSL
Change
29 October 2021
5
 Motilal Oswal Financial Services
Marico
Exhibit 6: MRCO’s P/E (x)
P/E (x)
Min (x)
65.0
50.0
35.0
20.0
5.0
Avg (x)
+1SD
Max (x)
-1SD
Exhibit 7: Consumer sector P/E (x)
P/E (x)
Min (x)
Avg (x)
+1SD
Max (x)
-1SD
51.6
45.5
37.4
29.4
50.9
52.0
44.0
36.0
28.0
20.0
47.1
42.6
37.4
24.7
32.1
44.2
22.4
Source: Company, MOFSL
Source: Company, MOFSL
29 October 2021
6
 Motilal Oswal Financial Services
Marico
Financials and valuations
Income Statement
Y/E March
Net Sales
Change (%)
COGS
Gross Profit
Margin (%)
Operating Expenses
EBITDA
Change (%)
Margin (%)
Depreciation
Int. and Fin. Charges
Other Income - Recurring
Profit before Taxes
Change (%)
Margin (%)
Current Tax (excl MAT Ent)
Deferred Tax
Tax Rate (%)
Minority Interest
Profit after Taxes
Change (%)
Margin (%)
Extraordinary items
Reported PAT
2017
59,178
-1.7
28,472
30,706
51.9
19,113
11,593
10.3
19.6
903
166
973
11,497
11.7
19.4
2,922
455
29.4
-10
8,110
12.1
13.7
0
8,110
2018
63,220
6.8
33,720
29,500
46.7
18,130
11,370
-1.9
18.0
890
160
850
11,170
-2.8
17.7
2,840
60
26.0
-130
8,140
0.4
12.9
0
8,140
2019
73,340
16.0
40,170
33,170
45.2
19,920
13,250
16.5
18.1
1,310
400
1,030
12,570
12.5
17.1
3,310
-180
24.9
-180
9,260
13.8
12.6
1,880
11,140
2020
73,150
-0.3
37,680
35,470
48.5
20,780
14,690
10.9
20.1
1,400
500
1,240
14,030
11.6
19.2
3,470
-160
23.6
-220
10,500
13.4
14.4
-290
10,210
2021
80,480
10.0
42,700
37,780
46.9
21,870
15,910
8.3
19.8
1,390
340
920
15,100
7.6
18.8
3,350
-110
21.5
-270
11,590
10.4
14.4
130
11,720
2022E
92,529
15.0
52,211
40,318
43.6
23,306
17,012
6.9
18.4
1,402
340
1,111
16,381
8.5
17.7
3,604
82
22.5
-270
12,425
7.2
13.4
0
12,425
2023E
1,03,328
11.7
56,458
46,870
45.4
26,291
20,579
21.0
19.9
1,604
296
1,382
20,062
22.5
19.4
4,514
100
23.0
-270
15,178
22.2
14.7
0
15,178
(INR m)
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Minority Interest
Loans
Capital Employed
Gross Fixed Assets
Intangibles
Less: Accum. Depn.
Net Fixed Assets
Capital WIP
Goodwill
Investments
Curr. Assets, L&A
Inventory
Account Receivables
Cash and Bank Balance
Others
Curr. Liab. and Prov.
Current Liabilities
Accounts Payable
Provisions
Net Current Assets
Deferred Tax Liability
Application of Funds
E: MOFSL Estimates
2017
1,291
21,966
23,257
133
2,388
25,778
7,440
361
-1,749
6,053
112
4,795
6,082
19,191
12,534
2,470
2,360
1,828
10,329
9,040
6,966
1,289
8,862
-125
25,778
2018
1,290
24,140
25,430
120
3,090
28,640
8,120
600
-2,480
6,240
270
4,860
5,430
23,920
15,110
3,400
2,010
3,400
11,880
10,560
8,220
1,320
12,040
-200
28,640
2019
1,290
28,700
29,990
110
3,490
33,590
9,140
550
-3,250
6,440
450
5,030
4,500
29,120
14,110
5,170
5,520
4,320
13,710
12,260
9,440
1,450
15,410
1,760
33,590
2020
1,290
28,940
30,230
130
3,350
33,710
13,440
410
-5,270
8,580
580
5,380
7,330
26,560
13,800
5,390
2,790
4,580
16,250
14,920
9,780
1,330
10,310
1,530
33,710
2021
1,290
31,110
32,400
180
4,700
37,280
14,180
2,300
-6,660
9,820
240
6,130
8,710
28,340
11,260
3,880
9,440
3,760
16,980
15,750
11,340
1,230
11,360
1,020
37,280
2022E
1,290
43,819
45,109
180
5,150
50,439
15,240
2,300
-8,062
9,478
240
6,230
13,000
40,618
17,766
7,402
8,956
6,494
19,127
17,785
12,998
1,342
21,491
0
50,439
(INR m)
2023E
1,290
46,545
47,835
180
5,600
53,615
16,540
2,300
-9,666
9,174
240
6,330
13,000
45,830
19,839
8,266
9,986
7,738
20,958
19,437
14,269
1,521
24,872
0
53,615
29 October 2021
7
 Motilal Oswal Financial Services
Marico
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
Leverage Ratio
Debt/Equity (x)
2017
6.3
6.8
18.0
4.3
67.6
2018
6.3
7.0
19.7
4.6
72.4
2019
7.2
9.7
23.2
6.6
76.3
2020
8.1
9.0
23.4
7.8
98.1
2021
9.0
10.2
25.1
7.7
84.4
2022E
9.6
10.7
35.0
8.3
86.2
2023E
11.8
13.0
37.1
9.7
82.0
89.7
82.4
12.2
62.3
31.3
0.8
89.4
80.6
11.4
63.6
28.6
0.8
78.6
58.4
9.8
54.4
24.3
1.2
69.3
62.7
9.9
49.1
24.1
1.4
62.8
55.5
8.9
44.9
22.5
1.4
58.5
52.6
7.7
41.8
16.1
1.5
47.9
43.3
6.9
34.5
15.2
1.7
37.3
33.3
47.4
33.4
30.8
40.7
33.4
31.3
40.7
34.9
33.0
44.0
37.0
34.2
54.4
32.1
29.5
51.3
32.7
30.1
49.8
0.1
0.1
0.1
0.1
0.1
0.1
0.1
Cash Flow Statement
Y/E March
OP/(loss) before Tax
Int./Div. Received
Depreciation
Interest Paid
Direct Taxes Paid
(Incr)/Decr in WC
CF from Operations
2017
11,487
-43
903
-197
-2,964
-2,698
6,487
-815
5,673
15
-760
-1,560
0
0
-5,088
-652
-5,740
-812
3,171
2,360
2018
11,170
-280
890
-180
-2,950
-3,490
5,160
-1,280
3,880
700
740
160
0
0
-6,360
690
-5,670
-350
2,360
2,010
2019
12,570
-130
1,310
-140
-3,200
210
10,620
-1,430
9,190
1,030
270
-130
0
110
-6,820
-270
-6,980
3,510
2,010
5,520
2020
13,740
-270
1,500
-220
-2,900
330
12,180
-1,860
10,320
280
-1,870
-3,450
0
-530
-10,250
-680
-11,460
-2,730
5,520
2,790
2021
15,230
-140
1,390
-250
-2,850
7,300
20,680
-2,690
17,990
-4,270
4,120
-2,840
60
-310
-10,290
-650
-11,190
6,650
2,790
9,440
2022E
16,381
-1,111
1,402
340
-3,604
-10,615
2,793
-1,060
1,733
-4,290
12,159
6,809
0
450
-9,886
-650
-10,086
-484
9,440
8,956
(INR m)
2023E
20,062
-1,382
1,604
296
-4,514
-2,350
13,715
-1,300
12,415
0
-514
-1,814
(Incr)/Decr in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Invest.
Issue of Shares
(Incr)/Decr in Debt
Dividend Paid
Others
CF from Fin. Activity
Incr/Decr of Cash
Add: Opening Balance
Closing Balance
E: MOFSL Estimates
0
450
-10,716
-606
-10,872
1,030
8,956
9,986
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8
 Motilal Oswal Financial Services
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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
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https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
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Research Analyst views on Subject Company may vary based on Fundamental research and
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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 or use
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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 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
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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
29 October 2021
9
 Motilal Oswal Financial Services
Marico
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
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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.
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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
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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
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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.
-
29 October 2021
10