30 October 2021
2QFY22 Results Update | Sector: Consumer
Emami
Buy
Estimate change
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
HMN IN
454
235.2 / 3.1
621 / 344
-9/-15/-4
388
Margin to come under pressure, but sales traction to
continue
CMP: INR529
TP: INR650 (+23% )
Financials & Valuations (INR b)
Y/E March
2021 2022E 2023E
Sales
28.8 32.4 36.0
Sales Gr. (%)
8.5 12.4 11.2
EBITDA
8.8
9.8 11.0
EBIT Margin (%)
30.7 30.3 30.6
Adj. PAT
7.2
7.9
8.3
Adj. EPS (INR)
16.3 17.8 18.7
EPS Gr. (%)
31.1
9.6
5.1
BV/Sh.(INR)
39.7 45.7 46.5
Ratios
RoE (%)
40.3 41.7 40.6
RoCE (%)
40.0 44.6 47.0
Payout (%)
49.2 64.6 69.5
Valuation
P/E (x)
32.7 29.8 28.4
P/BV (x)
13.4 11.6 11.4
EV/EBITDA (x)
26.1 23.2 20.5
Div. Yield (%)
1.5
2.2
2.4
Shareholding pattern (%)
As On
Sep-21 Jun-21
Promoter
53.9
53.9
DII
24.2
24.5
FII
12.7
12.5
Others
9.3
9.2
FII Includes depository receipts
HMN’s 2QFY22 sales were in line with our expectations. Domestic sales/
volumes grew 9%/6.2% YoY. With a pickup in the pace of vaccination and
diminishing fears of a severe third COVID wave, Healthcare grew only 5%
YoY. Nevertheless, the segment was still up 26% on a two-year CAGR basis.
On a positive note, revival in mobility led to double-digit growth in
discretionary categories – BoroPlus, Kesh King, and Male Grooming.
While there has been some recent moderation in rural demand, its
fundamentals are intact. The outlook for winter demand is positive.
The International business (~15% of sales) declined by 6% YoY owing to the
second COVID wave and a higher base of Personal Hygiene.
Margin performance in 2QFY22 was better than expected due to price
hikes, cost savings, and lower A&P spends. However, the management
expects gross margin compression in 2HFY22, led by continued RM
pressure. A&P spends are also expected to pick up, leading to a pressure on
EBITDA margin in 2HFY22.
The key to a further re-rating would be whether sales growth, after a period
of extremely weak performance (3.7% CAGR over FY16-20), can revive to
double-digit levels on a sustainable basis. We maintain our
Buy
rating.
Sales in line; margin outperforms
Sep-20
53.9
28.6
9.0
8.6
Consolidated net sales grew 7.4% YoY to INR7.9b
(in line). EBITDA/PBT/
adjusted PAT before amortization grew 7.8%/20.1%/18.7% YoY to INR2.8b/
INR2.9b/INR2.5b (est. INR2.5b/INR2.3b/INR1.9b).
Domestic volumes grew 6.2% YoY in 2QFY22.
Gross margin fell 150bp YoY to 68.8% (est. 67.3%).
EBITDA margin expanded by 20bp YoY to 35.1%
(est. 32%) due to lower
employee costs (-30bp), ad-spends (-140bp), and flat other expenses as a
percentage of sales.
Absolute ad-spends declined by 2.6% YoY to INR1.1b.
Sales/EBITDA/adjusted PAT before amortization grew 19.2%/17.6%/26.7%
YoY in 1HFY22.
The domestic business
grew 9% YoY, with a two-year CAGR of 11%.
International sales
declined by 6% YoY, but clocked a two-year CAGR of 2%.
Institutional business
(3% of sales) grew 29% YoY, with a two-year CAGR of
12%.
Within domestic,
HMN reported a YoY sales growth in all categories –
Healthcare (+5%), BoroPlus (+29%), Kesh King (+15%), Pain Management
(+6%), and Male Grooming (+15%), except Navratna (-9%), in 2QFY22.
Krishnan Sambamoorthy – Research Analyst
(Krishnan.Sambamoorthy@MotilalOswal.com)
Research Analyst: Dhairya Dhruv
(Dhairya.Dhruv@MotilalOswal.com)/Kaiwan
Jal Olia
(kaiwan.o@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.
6 November 2020
1
 Motilal Oswal Financial Services
Emami
Highlights from the management commentary
Kesh King is doing well and has a lot of headroom to grow. HMN is gaining share
from Patanjali and Indulekha. Shampoo currently contributes 27% to Kesh King’s
sales from 20% earlier. With the launch of an Anti-Dandruff Shampoo, the
management expects this proportion to be ~32% over the next 6-8 quarters.
Price increases and cost savings have protected margin in 2QFY22. Emami has
taken a 3.5% price increase in 1HFY22.
Over the last 3-4 weeks, there has been a slight slowdown in rural demand. The
management said there is no fundamental reason for the slowdown, and is
hopeful about good sales during this winter season.
Valuation and view
There is no material change to our FY22E/FY23E EPS forecasts.
HMN’s mid-single digit sales growth was in line with our expectation due to a
high base and slowdown in immunity boosting categories, amid diminishing
fears of the COVID-19 pandemic. With a revival of discretionary consumption,
we believe HMN can go back to high single-digit/low double-digit sales growth
on an annual basis going forward. This is far better than the 3.7% sales CAGR
over FY16-20. If the path towards sustainable and strong double-digit sales
growth continues, a further re-rating is possible.
We maintain our
Buy
rating, encouraged by the following factors: a) inexpensive
valuations at 28.4x FY23E EPS, and b) steep reduction in pledged shares (now at
30% levels).
We arrive at our TP of INR650/share (valuing the company at 32x Dec’23E EPS, a
40% discount to its peers).
(INR m)
FY21
4QE
6.0
7,697
5.3
2,612
5,086
66.1
1,849
24.0
13.6
272
9
137
1,706
363
21.3
1,295
-13.3
8.5
28,805
8.5
9,292
19,513
67.7
8,831
30.7
27.9
991
133
703
8,410
1,142
13.6
7,309
25.3
FY22E
14.6
32,371
12.4
10,642
21,730
67.1
9,822
30.3
11.2
998
31
745
9,538
1,621
17.0
7,917
8.3
FY22
2QE
6.0
7,789
6.0
2,550
5,240
67.3
2,491
32.0
-3.1
259
10
107
2,329
396
17.0
1,933
-9.4
Var.
(%)
1.3%
Consol. Quarterly performance
Y/E MARCH
Domestic volume growth (%)
Net Sales
YoY change (%)
COGS
Gross Profit
Gross margin (%)
EBITDA
Margins (%)
YoY change
Depreciation
Interest
Other Income
PBT
Tax
Rate (%)
PAT before Amortization
YoY change (%)
E: MOFSL Estimates
1Q
-28.0
4,813
-25.8
1,613
3,200
66.5
1,230
25.5
-8.3
194
47
67
1,056
95
9.0
973
-6.4
FY21
2Q
10.0
7,348
11.3
2,185
5,163
70.3
2,571
35.0
33.2
216
25
79
2,409
284
11.8
2,133
31.6
3Q
13.0
9,336
14.9
2,766
6,570
70.4
3,402
36.4
28.9
341
14
92
3,139
438
13.9
2,710
26.3
4Q
39.0
7,308
37.2
2,728
4,580
62.7
1,628
22.3
65.2
240
47
465
1,806
326
18.0
1,493
52.4
1Q
38.0
6,610
37.3
2,246
4,363
66.0
1,697
25.7
38.0
234
6
107
1,564
175
11.2
1,404
44.4
FY22
2Q
6.2
7,888
7.4
2,464
5,425
68.8
2,772
35.1
7.8
236
8
376
2,904
410
14.1
2,532
18.7
3QE
8.0
10,176
9.0
3,320
6,856
67.4
3,505
34.4
3.0
256
8
124
3,365
673
20.0
2,686
-0.9
11.3%
24.7%
31.0%
30 October 2021
2
 Motilal Oswal Financial Services
Emami
Key Performance Indicators
Y/E March
2Y average growth %
Volumes
Sales
EBITDA
PAT
% sales
COGS
A&P
Other expenditure
Employee cost
Depriciation
YoY change %
COGS
Other expenditure
Other income
EBIT
1Q
-14.0
-10.1
1.5
5.9
33.5
12.4
40.9
16.2
4.0
-30.6
-30.2
-41.7
-8.9
FY21
2Q
5.5
8.2
18.1
22.1
29.7
14.7
35.3
10.7
2.9
9.3
-3.0
-51.8
34.4
3Q
5.5
7.5
14.5
14.6
29.6
16.6
33.9
8.2
3.7
7.1
9.1
-41.1
26.2
4Q
9.5
10.2
14.3
16.2
37.3
18.5
40.4
10.4
3.3
47.0
18.7
220.9
81.2
FY22
1Q
5.0
5.8
14.8
19.0
34.0
16.6
40.3
12.8
3.5
39.2
35.3
60.0
41.2
2Q
8.1
9.3
20.5
25.1
31.2
13.4
33.6
10.4
3.0
12.8
2.3
376.7
7.7
Highlights from the management commentary
Environment and outlook
Relevance of immunity boosting products has gone down relatively due to
higher vaccination and lower fear of Covid compared to the preceding quarters.
Healthcare sales are still up by with a 2 year CAGR of 26%. Pancharishta and
Nityam doing well even as Chyawanprash has slowed down.
Over the last 3-4 weeks there has been slight slowdown in rural demand. There
is no fundamental reason for the slowdown. Management is still hopeful of
good winter season sales.
Excluding CSD, volume growth is 5.5% (6.2% overall reported domestic volume
growth).
MENA and SAARC market declined due to second wave impact. International
business outlook is expected to perform better going forward.
Categories and brands
Kesh King is doing well. It has a lot of headroom to grow. HMN is gaining share
from Patanjali and Indulekha. Shampoo contributes 27% to Kesh King sales, up
from 20% earlier. With the launch of anti-dandruff shampoo, management
expects this proportion to be around 32% in the next 6-8 quarters.
HMN will leverage Crème 21 brand in India.
Among the new products launched last year, Aloe Vera gel and Boro Plus soap
have attained some traction. On the other hand, Emasol hasn’t done well and
will be phased out from GT.
New products contribute 2.5% of sales. Their performance for the full year is
likely to be at similar levels as well.
Fair and Handsome and Boro Plus will see new launches in the near term.
Fair and Handsome national relaunch did not meet with expected success on
account of slowdown in discretionary consumption.
Cost and margins
Price increases and cost savings have protected margins in 2QFY22. HMN has
taken 3.5% price increase in 1HFY22.
30 October 2021
3
 Motilal Oswal Financial Services
Emami
A&P spends were lower YoY in 1HFY22. These will be higher in 2HFY22 v/s
2HFY21. Annual adspends will be around 16.5% of sales.
Gross margins will be lower in 3QFY22. On a yearly basis, management expects
gross margins to compress by 80-100bp YoY.
Other points
One off mark-to-market gains of INR230-INR240m was the key reason for
higher other income.
Rural expansion project Khoj is doing well. The program planned for three years
looks set to be completed in two years. HMN will expand its distribution
network by adding around 8,000 towns and villages in India in FY22. This will
add 45,000-50,000 stores.
By the end of Jun’22, HMN will have almost fully amortized Kesh King goodwill.
Crème 21 will be the only component after that.
30 October 2021
4
 Motilal Oswal Financial Services
Emami
Key exhibits
Exhibit 1: Domestic volume growth stood at 6.2% YoY in 2QFY22
Domestic volume growth (%)
Source: Company, MOFSL
Exhibit 2: Consolidated net sales grew 7.4% YoY to INR7.9b
Sales (INR b)
16
0
Sales growth (%)
37 37
10 6
7
7
4
6
5
0
(17)
(26)
11 15
7
Exhibit 3: Gross margin contracts 150bp YoY to 68.8%
Gross margins (%)
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 4: EBITDA margin expands 20bp YoY to 35.1%
EBITDA margin (%)
Exhibit 5: EBITDA rose 7.8% YoY to INR2.8b in 2QFY22
EBITDA (INR b)
50
15
2
(3)
(7) (0) (10)
11 3
0
(37)
EBITDA growth (%)
65
33 29
(8)
38
8
Source: Company, MOFSL
Source: Company, MOFSL
30 October 2021
5
 Motilal Oswal Financial Services
Emami
Domestic business (82% of sales) grew 9% YoY; 11% on 2 year CAGR basis
Domestic segmental performance stood as follows:
Exhibit 6: All segments reported growth during 2QFY22, except for Navratna
(% growth)
Healthcare
Pain Management
Navratna
Kesh King
BoroPlus
Male Grooming
YoY
5
6
-9
15
29
15
2 year CAGR
1HFY22
26
25
18
29
2
8
29
28
-
22
-
38
Source: Company, MOFSL
International sales (15% of total sales) declined 6% YoY but grew 2% on a 2
year CAGR basis.
Sales declined in 2Q due to the impact of the 2
nd
wave of
Covid-19 as well as high base of personal hygiene sales in the previous year.
The Institutional business contributed 3% to sales in 2QFY22.
It grew 29% YoY
and 12% on 2 year CAGR basis.
Exhibit 7: In domestic business, all categories (except Navratna) registered a growth in 2QFY22
2Q21
9%
-25%
29%
31%
6%
2Q22
15%
-9%
-24%
15%
53%
5%
10%
14%
45%
11%
-6%
Source: Company, MOFSL
Exhibit 8: On a three-year basis, BoroPlus, Healthcare, and Pain Management show strong performance
3yr average revenue growth
14%
7%
14%
1%
-14%
16%
19%
8%
Source: Company, MOFSL
30 October 2021
6
 Motilal Oswal Financial Services
Emami
Valuation and view
What has happened in the last 10 years?
The company delivered ~17% sales and EBITDA CAGR and ~22% PAT CAGR in the
first half of the decade gone by. However, in the past five years ending FY20, it
reported a massive slowdown in key financial metrics (~4%/~5%/3%
sales/EBITDA/PAT CAGR). This is attributable to the absence of sales growth in
most key categories.
The lack of significant traction in products launched in recent years and failed
acquisitions, such as ‘She’, have contributed to the weak sales growth in recent
years. Kesh King’s scale-up so far has certainly not lived up to our expectations.
The overseas business has also underperformed.
Compared with peers, HMN has the largest exposure to rural and, even more
crucially, to the wholesale trade. While the management has expanded its direct
reach in recent years, wholesale and rural dependence remains high – albeit still
lower than that seen in the past.
There is no material change to our FY22/FY23E EPS forecasts.
HMN’s mid-single digit sales growth was in-lin e with our expectations due to a
high base and slowdown in immunity boosting categories amid diminishing fear
of Covid. With the revival of discretionary consumption, we believe HMN can go
back to high single digit/low double-digit sales growth on an annual basis going
forward. This is far better than the 3.7% sales CAGR between FY16-20. If the
path towards sustainable and strong double-digit sales growth continues,
further re-rating is possible.
We maintain our
Buy
rating, encouraged by the following factors: a) inexpensive
valuations at 28.4x FY23E EPS, and b) steep reduction in pledged shares (now at
30% levels).
We arrive at our TP of INR650/share (valuing the company at 32x Dec’23E EPS, a
40% discount to its peers).
New
Old
Change (%)
FY22E
FY23E
0.0
0.0
-0.3
0.0
3.9
-0.5
Source: Company, MOFSL
Max (x)
-1SD
44.2
Key challenges
Our view on the stock
Exhibit 9: Change our FY22E/FY23E EPS estimate by 3.9%/-0.5%
(INR m)
Sales
EBITDA
PAT
FY22E
32,371
9,822
7,917
FY23E
35,992
11,028
8,320
FY22E
32,371
9,855
7,622
FY23E
35,992
11,028
8,364
Exhibit 10:
HMN’s P/E (x)
65.0
53.0
41.0
29.0
17.0
5.0
P/E (x)
Min (x)
Avg (x)
+1SD
41.9
20.6
10.5
54.0
31.3
Max (x)
-1SD
Exhibit 11:
Consumer sector P/E (x)
51.0
41.0
31.0
21.0
P/E (x)
Min (x)
Avg (x)
+1SD
47.1
42.6
37.4
24.7
30.0
32.1
Source: Company, MOFSL
30 October 2021
Source: Company, MOFSL
7
 Motilal Oswal Financial Services
Emami
Financials and valuations
Income Statement
Y/E March
Net Sales
Change (%)
COGS
Gross Profit
Gross Margin (%)
Operating expenses
EBITDA
Change (%)
Margin (%)
Depreciation
Int. and Fin. Charges
Financial Other Income
Profit before Taxes
Change (%)
Margin (%)
Tax
Deferred Tax
Tax Rate (%)
Adjusted PAT
Change (%)
Margin (%)
Amortization
Reported PAT
2017
24,882
5.5
7,910
16,972
68.2
9,380
7,591
10.5
30.5
469
580
311
6,853
7.9
27.5
836
130
14.1
6,021
4.5
24.2
2,617
3,404
2018
25,305
1.7
8,098
17,207
68.0
10,013
7,194
-5.2
28.4
673
343
195
6,374
-7.0
25.2
863
-5
13.5
5,507
-8.5
21.8
2,436
3,071
2019
26,946
6.5
9,230
17,716
65.7
10,444
7,272
1.1
27.0
768
214
349
6,639
4.2
24.6
1,024
37
16.0
5,517
0.2
20.5
2,485
3,032
2020
26,549
-1.5
8,761
17,788
67.0
10,882
6,906
-5.0
26.0
774
210
571
6,492
-2.2
24.5
713
-86
9.7
5,618
1.8
21.2
2,589
3,029
2021
28,805
8.5
9,292
19,513
67.7
10,682
8,831
27.9
30.7
991
133
703
8,410
29.5
29.2
1,142
-5
13.5
7,226
28.6
25.1
2,679
4,547
2022E
32,371
12.4
10,642
21,730
67.1
11,907
9,822
11.2
30.3
998
31
745
9,538
13.4
29.5
1,621
0
17.0
7,917
9.6
24.5
2,500
5,417
(INR m)
2023E
35,992
11.2
11,708
24,284
67.5
13,257
11,028
12.3
30.6
1,252
8
504
10,272
7.7
28.5
1,952
0
19.0
8,320
5.1
23.1
1,000
7,320
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Minority Interest
Loans
Deferred Liability
Capital Employed
Goodwill on consolidation
Gross Block
Less: Accum. Depn.
Net Fixed Assets
Capital WIP
Investments
Curr. Assets, L&A
Inventory
Account Receivables
Cash and cash equivalents
Others
Curr. Liab. and Prov.
Account Payables
Other Liabilities
Provisions
Net Current Assets
Application of Funds
E: MOFSL Estimates
2017
454
17,093
17,547
14
4,846
282
22,689
41
25,600
5,616
19,983
129
1,277
4,602
1,792
970
501
1,340
3,343
1,847
622
873
1,259
22,689
2018
454
19,682
20,136
6
3,343
118
23,602
41
26,825
8,767
18,058
226
3,136
6,517
1,940
1,559
795
2,224
4,376
2,420
1,077
879
2,141
23,602
2019
454
20,307
20,761
-2
1,168
122
22,048
41
28,738
11,967
16,771
352
1,870
9,151
2,217
2,164
2,034
2,737
6,137
2,914
1,808
1,416
3,014
22,048
2020
453
17,784
18,238
-9
2,257
35
20,520
0
29,933
15,329
14,604
69
1,564
10,548
2,446
3,080
1,191
3,831
6,265
3,245
1,222
1,798
4,284
20,520
2021
445
17,182
17,627
-9
1,028
42
18,687
0
27,108
16,320
10,788
64
3,084
11,261
3,005
2,318
3,604
2,335
6,510
3,507
1,147
1,856
4,751
18,687
2022E
445
19,886
20,330
-9
528
42
20,891
0
28,108
17,318
10,790
64
3,084
13,973
2,451
2,661
5,636
3,226
7,021
3,579
1,345
2,097
6,953
20,891
(INR m)
2023E
445
20,240
20,684
-9
0
42
20,717
0
29,108
18,570
10,538
64
3,084
14,811
2,699
2,860
7,204
2,048
7,780
3,931
1,480
2,369
7,030
20,717
30 October 2021
8
 Motilal Oswal Financial Services
Emami
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)
Asset Turnover (x)
Leverage Ratio
Debt/Equity (x)
2017
13.3
14.3
38.7
4.4
33.0
40.0
37.1
9.8
32.1
13.7
0.8
35.8
31.1
28.2
14
1.1
0.2
2018
12.1
13.6
44.4
3.5
28.8
43.7
39.0
9.5
33.4
12.0
0.7
29.2
28.2
25.3
23
1.1
0.1
2019
12.2
13.8
45.7
4.0
32.9
43.7
38.3
8.8
32.8
11.6
0.8
27.0
28.5
25.9
30
1.2
0.0
2020
12.4
14.1
40.2
8.0
64.6
42.8
37.6
9.0
34.8
13.2
1.5
28.8
28.8
28.5
34
1.2
0.1
2021
16.3
18.5
39.7
8.0
49.2
32.7
28.7
8.0
26.1
13.4
1.5
40.3
40.0
39.6
32
1.5
-0.1
2022E
17.8
20.1
45.7
11.5
64.6
29.8
26.5
7.0
23.2
11.6
2.2
41.7
44.6
48.5
30
1.6
-0.3
2023E
18.7
21.5
46.5
13.0
69.5
28.4
24.6
6.3
20.5
11.4
2.4
40.6
47.0
55.3
29
1.7
-0.3
Cash Flow Statement
Y/E March
OP/(loss) before Tax
Depreciation
Other non operating income
Interest Paid
Direct Taxes Paid
(Incr)/Decr in WC
CF from Operations
(Incr)/Decr in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Invest.
Change in Equity
(Incr)/Decr in Debt
Dividend Paid
Others
CF from Fin. Activity
Incr/Decr of Cash
Add: Opening Balance
Closing Balance
E: MOFSL Estimates
2017
4,236
3,086
-102
558
-707
226
7,296
-2,814
4,482
-763
655
-2,922
0
7,099
-1,985
-10,072
-4,958
-584
1,084
500
2018
3,926
3,109
-51
316
-809
-612
5,878
-1,232
4,646
-1,863
750
-2,346
0
4,847
-1,194
-6,891
-3,237
295
501
795
2019
4,034
3,253
-125
42
-927
-739
5,537
-1,329
4,208
1,178
129
-22
0
803
-1,589
-3,491
-4,277
1,239
795
2,034
2020
3,736
3,363
-192
-73
-760
-800
5,274
-1,481
3,793
-568
-15
-2,064
-125
1,004
-3,632
-1,301
-4,054
-844
2,034
1,191
2021
5,689
3,670
-329
-38
-865
1,088
9,215
-320
8,895
-2,934
3,334
80
-2,256
-1,183
-3,556
114
-6,882
2,413
1,191
3,604
2022E
7,038
3,498
-745
31
-1,621
-169
8,032
-1,000
7,032
0
1,448
448
0
-500
-6,162
215
-6,447
2,032
3,604
5,636
(INR m)
2023E
9,272
2,252
-504
8
-1,952
1,491
10,567
-1,000
9,567
0
-742
-1,742
0
-528
-6,966
238
-7,256
1,568
5,636
7,204
30 October 2021
9
 Motilal Oswal Financial Services
Emami
NOTES
30 October 2021
10
 Motilal Oswal Financial Services
Emami
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial
products. MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are
available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a
registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and
National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National
Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance
Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate entities of Motilal Oswal Financial Services Limited are
available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report
should be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific
merchant banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the
website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated
from MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability
or use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong
Kong Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers
Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any
brokerage and investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is
intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as
"major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which
this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration
provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange
Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-
dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this
chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public
appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL
in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”,
of which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
30 October 2021
11
 Motilal Oswal Financial Services
Emami
********************************************************************************************************************************
The associates of MOFSL may have:
-
financial interest in the subject company
-
actual/beneficial ownership of 1% or more securities in the subject company
-
received compensation/other benefits from the subject company in the past 12 months
-
other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on
the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL
even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
-
acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
-
be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
-
received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent
of MOFSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in
nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty,
representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The
report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as
customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or
distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for
informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing
in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances.
The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this
document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this
document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views
expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade
securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of
the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and
should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make
modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from
time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to
perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a
separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of
information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or
may not subscribe to all the views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on,
directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or
entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law,
regulation or which would subject MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in
all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.
Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost
revenue or lost profits that may arise from or in connection with the use of the information.
The person accessing this information specifically agrees to exempt MOFSL or any of its
affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such
misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages,
expenses that may be suffered by the person
accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263;
Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth
Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is
a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt.
Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL.
Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no
assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance
Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.
30 October 2021
12