Britannia Industries
BSE SENSEX
31,798
S&P CNX
9,908
9 August 2017
1QFY18 Results Update | Sector: Consumer
CMP: INR4,061 TP: INR4,660(+15%)
Buy
Motilal Oswal values your support in
the Asiamoney Brokers Poll 2017 for
India Research, Sales and Trading
team. We
request your ballot.
Best-of-breed earnings growth visibility commands premium multiples
BRIT’s consolidated sales grew 6% YoY
(est. of +4%) in 1QFY18. Standalone
(S/A) sales increased 6.6% YoY, but subsidiary sales were down 5.9% YoY. We
expect base business volume growth to have come in at ~2%, as against our
estimate of flat volumes. This is on a base of 10% volume growth in 1QFY17.
Consol. gross margin contracted 120bp YoY
(est. of -100bp) to 37.6% due to
commodity cost inflation (at 6% in 1QFY18). EBITDA margin shrunk 40bp YoY to
13% (est. of 12.4%) in 1QFY18. EBITDA grew 2.8% YoY (est. of -3.8%) to
INR2.9b. Higher tax rate at 34.4% (est. 32%) led to adj. PAT decline of 1.5% YoY
(est. of - 2.4%) to INR2.2b.
Concall highlights:
(1)
Cost-efficiency program target is 60% higher than FY17
levels (earlier target: 40%) – 1QFY18 performance was in line toward achieving
this target. Savings were INR1.5m in FY17; INR2.5b of savings in FY18E would
be 2.4% of consol. sales for the year.
(2)
BRIT gained market share in a difficult
quarter from national players and small players. Due to stringent compliance
under GST regime, it expects more market share gain from small players.
(3)
Direct reach is likely to see addition of 0.2-0.25m every year (stood at 1.56m at
end-FY17), which is impressive, especially when compared to peers.
Valuation and view:
We are enthused with the consistent healthy performance
in a difficult operating environment. Rapidly expanding distribution, continuing
R&D investment and significant expansion of its own manufacturing indicate
management’s immense confidence on the growth prospects. Opportunity
beyond biscuits is also substantially high. Continuing premiumization,
significant incremental cost savings and favorable commodity cost outlook
mean that 15% EBITDA margins should be achievable. We maintain
Buy
with a
TP of INR4,660 (42x June 2019E EPS, 15% premium to three-year average due
to improving visibility on volume recovery and margin growth).
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, INRm/ Vol m
Free float (%)
BRIT IN
120.0
487.1 / 7.6
4215 / 2776
9/13/17
568
49.3
Financials & Valuations (INR b)
2017 2018E
Y/E Mar
89.6 101.5
Net Sales
11.9
14.2
EBITDA
8.8
10.2
PAT
73.7
85.3
EPS (INR)
7.3
15.8
Gr. (%)
224.7 272.4
BV/Sh (INR)
36.9
34.3
RoE (%)
31.1
29.3
RoCE (%)
55.1
47.6
P/E (x)
40.7
33.5
EV/EBITDA (x)
2019E
119.0
17.5
12.6
104.6
22.6
334.4
34.5
29.7
38.8
27.0
Estimate change
TP change
Rating change
Krishnan Sambamoorthy – Research Analyst
(Krishnan.Sambamoorthy@MotilalOswal.com); +91 22 3982 5428
Vishal Punmiya – Research Analyst
(Vishal.Punmiya@MotilalOswal.com); +91 22 3980 4261
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.

Britannia Industries
Standalone
sales and EBITDA increased 6.6% and 2.9%, respectively, while adj.
PAT fell 0.8% YoY. Gross margin (37.4%) contracted by 130bp YoY and operating
margin (13%) by 50bp YoY.
Exhibit 1: BRIT’s base business volumes grew ~2% in 1QFY18
BRIT's base business volume growth (%)
11
8
3
4
4
7
7
11
13
10
10
10
9
2
2
2
Source: Company, MOSL
Exhibit 2: Company witnessed 6% commodity cost inflation in 1QFY18
Source: Nielsen data, BRIT presentation
Conference call highlights
1QFY18 performance
Grew market share in a difficult quarter from national players and small players.
Due to stringent compliance under GST regime, management expects more
market share gain from small players.
Rural growth continues to be in double-digits.
MP, Gujarat and Rajasthan are doing very well. Even UP is 1.3x that of national
level growth. Would want UP to grow 2x national average.
Bread is back to double-digit growth.
Will be focusing only on double-digit profitability part of the dairy business.
June month destocking was ~10% and ~5% for the quarter.
9 August 2017
2

Britannia Industries
New products, price increases
R&D Centre is churning out good products. Good Day Wonderfulls is doing very
well. Treat Vanilla and Choco variants just launched.
Nutrichoice Oats Cookies (launched last year) is doing very well.
Pressure on material costs likely to be lower YoY from 2QFY18.
3-4% price increases likely in 2-3 months. Could not take required price increase
in 1QFY18 ahead of GST implementation.
Company is evaluating the right products to enter in the snacking category.
Distribution and expansion
Branded and low-price regional players are 35% of the INR260b market. Local
bakery biscuits sales will be another 50% of the current biscuits market.
Distribution reach for Britannia is 4.7m outlets as of now.
Direct reach likely to see addition of 200,000-250,000 every year. It was 1.56m
at the end of FY17. This aggressive expansion is also heartening and far more
than most peers.
Gujarat SEZ and Guwahati plants should be ready by end of FY18.
60,000 tons of capacity will be added by these two plants, which is around 6% of
total capacity at the end of year.
New potential JVs could also be part of Ranjangaon plant that is being set up.
Maharashtra plant will be 10% of total capacity after first stage of expansion.
Will enter one new country every year. Looking to set up a plant in Nepal
instead of exports. They believe they have a right to win in areas near India and
Africa.
7-10% of sales will be from international business in 3-4 years.
Cost efficiency
Cost-efficiency program target 60% higher than FY17. 1QFY18 was on target.
Savings were INR1.55m in FY17, and INR2.5b of savings in FY18 would be 2.4%
of consol. sales for the year.
Management bandwidth
80% of leadership team from within Britannia.
Formed committees of young managers below age 30 to give opinions on
product developed and marketing efforts.
Other businesses
Chipita products likely to be rolled out by August 2018.
In Dairy, company will be able to give more clarity by another month.
Financials
Pulled back a little on advertising in 1QFY18. Spent around INR800m in 1QFY18
(~18% decline YoY and ~90bp lower as percentage to sales YoY).
Capex will be INR4b in FY18. Will remain at those levels on regular capex going
forward. This capex is excluding dairy expansion.
34% tax rate likely for full year.
9 August 2017
3

Britannia Industries
Valuation and view
We are enthused with the consistent healthy performance in a difficult
operating environment. Rapidly expanding distribution, continuing investment
in R&D and significant expansion of its own manufacturing indicate the immense
confidence that the management has on growth prospects.
Opportunity beyond biscuits is also substantially high. Continuing
premiumization, significant incremental cost savings and favorable commodity
cost outlook means that 15% EBITDA margins are now well within achievable
realms.
We retain
Buy
with a target price of INR 4,660 (42x June 2019 EPS, 15%
premium to 3 year average due to improving visibility on both volume recovery
and margin growth).
Exhibit 3: We change FY18/FY19 EPS marginally
Change in Estimates
Net Sales
EBITDA
Adjusted PAT
New
FY18E
101,522
14,212
10,239
FY19E
119,046
17,545
12,550
FY18E
101,522
13,766
10,254
Old
FY19E
118,726
17,162
12,660
Change
FY18E
FY19E
0.0%
0.3%
3.2%
2.2%
-0.1%
-0.9%
Source: Company, MOSL
Exhibit 4:
Britannia
P/E (x)
50.0
38.0
26.0
14.0
2.0
15.0
PE (x)
Peak(x)
Avg(x)
45.1
27.5
Min(x)
42.5
Exhibit 5: Britannia P/E premium vs. Sensex
150
100
50
0
-50
Britannia PE Relative to Sensex PE (%)
LPA (%)
127.9
59.7
Source: Company, MOSL
Source: Company, MOSL
9 August 2017
4

Britannia Industries
Exhibit 6: Valuation Matrix
Reco
Company
(INR)
Consumer
Asian Paints
Britannia Inds.
Colgate-Palm.
Dabur India
Emami
Godrej Cons.
GlaxoSmith C H L
Hind. Unilever
ITC
Jyothy Lab.
Marico
Nestle India
P & G Hygiene
Page Industries
Parag Milk
Pidilite Inds.
United Breweries
United Spirits
Retail
Jubilant Food.
Titan Company
Neutral
Buy
Buy
Neutral
Buy
Neutral
Sell
Buy
Neutral
Neutral
Neutral
Sell
Buy
Buy
Neutral
Neutral
Neutral
Neutral
Sell
Neutral
1,155
4,061
1,056
310
1,125
922
5,400
1,184
273
375
326
6,730
1,200
4,660
1,285
315
1,310
995
4,500
1,285
280
395
355
5,740
4
15
22
1
16
8
-17
9
3
5
9
-15
12
15
-1
2
2
-1
-34
-9
1,099
488
290
555
260
644
232
2,567
3,331
69
430
645
262
181
21
415
218
370
88
541
17.2
7.6
4.5
8.7
4.1
10.1
3.6
40.2
52.2
1.1
6.7
10.1
4.1
2.8
0.3
6.5
3.4
5.8
1.4
8.5
8.7
7.3
-5.7
1.9
4.5
12.4
0.9
1.9
9.4
175.7
12.1
-1.6
11.5
15.0
-46.4
6.7
-23.0
87.1
-32.1
18.5
5.6
15.8
15.2
6.7
1.4
14.0
6.5
16.8
10.4
-20.6
8.5
-2.5
7.5
32.8
106.4
7.9
11.6
29.1
48.0
17.6
19.5
22.6
21.7
18.3
23.1
14.6
9.3
19.2
11.4
23.8
20.9
16.2
16.6
26.2
64.7
14.0
51.9
49.3
40.0
18.2
55.0
55.1
49.7
42.8
42.4
48.8
34.6
60.3
32.5
33.4
51.8
57.0
56.1
69.9
67.1
47.5
95.9
94.9
129.7
68.5
52.1
47.6
43.2
40.1
41.8
42.8
32.5
51.6
29.4
42.1
47.7
58.5
52.1
52.6
32.5
44.1
86.0
73.6
87.6
58.3
43.6
38.8
35.5
33.9
34.0
37.4
29.7
43.3
26.4
34.0
39.5
50.4
44.7
41.7
19.7
38.6
56.6
49.3
62.6
49.3
28.5
36.9
50.4
28.4
35.8
24.6
22.2
65.6
23.5
21.1
36.7
39.0
45.3
40.0
5.9
28.2
10.4
21.3
8.2
20.6
0.8
0.0
0.9
0.8
0.8
0.6
1.0
1.4
2.0
1.6
0.9
0.9
4.5
0.5
0.0
0.6
0.1
0.0
0.2
0.4
CMP
Target
Price
(INR)
Mkt Cap
Upside
(INR B) (USD B)
(%)
EPS Growth YoY (%)
FY17
FY18E
FY19E FY17
P/E (x)
FY18E
FY19E
RoE
(%)
FY17
Div.
(%)
FY17
8,124 9,082
16,679 19,125
242
240
796
810
834
850
2,538 2,525
1,297
619
850
565
Source: Company, MOSL
9 August 2017
5

Britannia Industries
Financials and Valuations
Income Statement
Y/E March
Net Revenues
Change (%)
Raw Material Cost
Gross Profit
Margin (%)
Advertising
% of Sales
Other Expenditure
EBITDA
Change (%)
Margin (%)
Depreciation
Int. and Fin. Charges
Financial Other Income
Operating Other Income
PBT
Tax
Deferred Tax
Tax Rate (%)
PAT
Change (%)
Margin (%)
Reported PAT
Balance Sheet
Y/E March
Share Capital
Reserves
Networth
Loans
Capital Employed
Gross Block
Less: Accum. Depn.
Net Fixed Assets
Goodwill on consolidation
Capital WIP
Investments
Deferred Liability
Currents Assets
Inventory
Account Receivables
Cash and Bank Balance
Others
Curr. Liab. & Prov.
Account Payables
Other Liabilities
Net Current Assets
Net Assets
E: MOSL Estimates
2015
77,751
13.8
46,918
30,833
39.7
6,517
8.4
16,510
7,806
43.5
10.0
1,445
39
880
833
8,035
2,553
-260
28.5
5,743
45.1
7.4
6,886
2016
83,254
7.1
50,127
33,127
39.8
4,461
5.4
17,240
11,426
46.4
13.7
1,134
49
1,244
718
12,205
3,967
-6
32.5
8,244
43.6
9.9
8,246
2017
89,623
7.6
55,887
33,736
37.6
3,850
4.3
18,022
11,864
3.8
13.2
1,193
55
1,505
918
13,040
4,019
178
32.2
8,843
7.3
9.9
8,846
2018E
101,522
13.3
62,562
38,960
38.4
4,569
4.5
20,180
14,212
19.8
14.0
1,399
55
1,806
949
15,514
5,275
0
34.0
10,239
15.8
10.1
10,239
2019E
119,046
17.3
72,392
46,654
39.2
5,952
5.0
23,157
17,545
23.5
14.7
1,639
55
2,168
996
19,016
6,465
0
34.0
12,550
22.6
10.5
12,550
(INR Million)
2020E
141,358
18.7
84,770
56,587
40.0
7,775
5.5
26,887
21,926
25.0
15.5
1,879
55
2,601
1,060
23,654
8,042
0
34.0
15,611
24.4
11.0
15,611
(INR Million)
2020E
240
49,152
49,392
1,017
50,409
33,313
-15,908
17,405
1,278
301
4,751
-231
44,838
8,481
2,906
17,917
15,534
18,395
11,955
6,440
26,443
50,410
2015
240
12,176
12,415
1,451
13,926
16,065
-8,731
7,334
1,107
484
5,179
-234
13,596
4,040
1,358
2,263
5,934
14,007
7,034
4,273
-411
13,926
2016
240
20,677
20,917
1,311
22,252
18,142
-9,799
8,343
1,159
901
7,884
-444
16,208
4,407
1,706
877
9,219
12,687
7,691
4,996
3,521
22,252
2017
240
26,724
26,964
1,246
28,236
21,313
-10,991
10,322
1,278
301
4,869
-231
24,088
6,615
1,792
1,208
14,474
12,852
7,573
5,279
11,236
28,236
2018E
240
32,444
32,684
1,161
33,845
25,313
-12,390
12,923
1,278
301
4,751
-231
29,042
5,076
2,151
7,013
14,802
14,680
9,044
5,636
14,362
33,846
2019E
240
39,890
40,130
1,085
41,215
29,313
-14,029
15,284
1,278
301
4,751
-231
35,366
7,143
2,487
10,598
15,138
15,996
9,974
6,022
19,370
41,215
9 August 2017
6

Britannia Industries
Financials and Valuations
Ratios
Y/E March
Basic (INR)
EPS
BV/Share
DPS
Payout (%)
Valuation (x)
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)
Cash Flow Statement
Y/E March
OP Profit
Dep
Financial Other Income
Interest Paid
Direct Taxes Paid
Inc in WC
CF from Operations
(Inc)/Dec in FA
(Pur.)/Sale of Investments
Other Non Rec Exp
CF from Investments
Inc in Debt
Dividend Paid
Other Item
CF from Fin. Activity
Inc/Dec of Cash
Add: Beginning Balance
Closing Balance
E: MOSL Estimates
1.45111
2015
47.9
103.5
16.0
33.4
84.8
6.2
61.6
39.2
0.4
56.4
43.9
80.0
6
5.6
0.1
2016
68.7
174.3
0.0
0.0
59.1
5.8
42.0
23.3
0.0
49.5
41.1
74.8
7
3.7
0.1
2017
73.7
224.7
0.0
0.0
55.1
5.4
40.7
18.1
0.0
36.9
31.1
42.0
7
3.2
0.0
2018E
85.3
272.4
29.9
35.0
47.6
4.7
33.5
14.9
0.7
34.3
29.3
38.8
8
3.0
0.0
2019E
104.6
334.4
36.6
35.0
38.8
4.0
27.0
12.1
0.9
34.5
29.7
44.3
8
2.9
0.0
2020E
130.1
411.6
45.5
35.0
31.2
3.3
21.2
9.9
1.1
34.9
30.4
49.9
8
2.8
0.0
(INR Million)
2020E
23,654
1,879
-2,601
-55
8,042
-245
15,188
-4,000
0
0
-4,000
-68
0
3,802
-3,870
7,318
10,598
17,916
2015
8,035
1,445
-880
-39
2,553
350
5,736
-548
-3,201
-1,142
-4,891
-47
1,684
-2,058
327
1,172
1,091
2,263
2016
12,205
1,134
-1,244
-49
3,967
5,319
2,858
-2,494
-2,704
0
-5,199
-140
2,309
-3,403
954
-1,387
2,263
876
2017
13,040
1,193
-1,505
-55
4,019
7,384
1,380
-2,571
3,015
0
444
-65
0
1,428
-1,493
331
877
1,208
2018E
15,514
1,399
-1,806
-55
5,275
-2,680
12,566
-4,000
117
0
-3,883
-84
0
2,793
-2,877
5,806
1,208
7,013
2019E
19,016
1,639
-2,168
-55
6,465
1,423
10,653
-4,000
0
0
-4,000
-76
0
2,992
-3,068
3,585
7,013
10,598
9 August 2017
7

Britannia Industries
Corporate profile
Company description
Exhibit 1: Sensex rebased
Britannia is the market leader in the biscuits category
(value market share of ~33%). Biscuits contribute over
85% of Company’s consolidated revenue. Over the
years, the company has forayed into other bakery
items and dairy products (constituting ~15% of
consolidated revenues). The company enjoys strong
brand equity and has been consistently ranked
amongst the top food brand in India. Britannia is
promoted by Wadia group that has diversified
interests ranging from real estate, textiles, chemicals
and airlines business.
Exhibit 2: Shareholding pattern (%)
Jun-17
Promoter
DII
FII
Others
50.7
11.3
17.4
20.6
Mar-17
50.7
11.7
16.0
21.6
Jun-16
50.7
9.5
18.1
21.7
Source: Capitaline
Source: MOSL/Bloomberg
Exhibit 3: Top holders
Holder Name
LIFE INSURANCE CORPORATION OF INDIA
ARISAIG PARTNERS (ASIA) PTE LTD. A/C
ARISAIG INDIAFUND LIMITED
ICICI PRUDENTIAL VALUE FUND - SERIES 4
GENERAL INSURANCE CORPORATION OF
INDIA
% Holding
3.3
2.9
1.8
1.0
Note: FII Includes depository receipts
Source: Capitaline
Exhibit 4: Top management
Name
Nusli N Wadia
Varun Berry
Rajesh Arora
Designation
Chairman
Managing Director
Company Secretary
Exhibit 5: Directors
Name
A K Hirjee
Avijit Deb
Keki Dadiseth
Ness N Wadia
Ranjana Kumar
Vijay L Kelkar
Name
Ajai Puri
Jeh N Wadia
Nasser Munjee
Nimesh N Kampani
S S Kelkar
Source: Capitaline
*Independent
Exhibit 6: Auditors
Name
BSR & Co LLP
N I Mehta & Co
Type
Statutory
Cost Auditor
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY18
FY19
FY20
MOSL
forecast
85.3
104.6
130.1
Consensus
forecast
85.4
101.7
120.6
Variation (%)
-0.1
2.8
7.9
Source: Bloomberg
Source: Capitaline
9 August 2017
8

Britannia Industries
NOTES
9 August 2017
9

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 Securities Ltd. (MOSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOSL, 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. MOSL is a subsidiary company of Motilal Oswal Financial Service Ltd. (MOFSL). MOFSL is a listed
public company, the details in respect of which are available on
www.motilaloswal.com.
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), Metropolitan Stock Exchange Of India Ltd. (MSE) for its stock broking activities & is Depository participant with Central Depository Services Limited
(CDSL) & National Securities Depository Limited (NSDL) and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products. Details of associate entities of Motilal Oswal Securities Limited are
available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/Associate%20Details.pdf
Pending Regulatory Enquiries against Motilal Oswal Securities Limited by SEBI:
SEBI pursuant to a complaint from client Shri C.R. Mohanraj alleging unauthorized trading, issued a letter dated 29th April 2014 to MOSL notifying appointment of an Adjudicating Officer as per SEBI regulations to hold
inquiry and adjudge violation of SEBI Regulations; MOSL requested SEBI to provide all documents, records, investigation report relied upon by SEBI which were referred in Show Cause Notice and also sought personal
hearing. The matter is currently pending.
MOSL, it’s associates, Research Analyst or their relative may have any financial interest in the subject company. MOSL and/or its associates and/or Research Analyst may have beneficial ownership of 1% or more securities in
the subject company at the end of the month immediately preceding the date of publication of the Research Report.
MOSL 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 MOSL even though there might exist an inherent conflict of interest in some of the stocks mentioned in the
research report.
Research Analyst may have served as director/officer, etc. in the subject company in the last 12 month period. MOSL and/or its associates may have received any compensation from the subject company in
the past 12 months.
In the last 12 months period ending on the last day of the month immediately preceding the date of publication of this research report, MOSL or any of its associates may have:
a)
managed or co-managed public offering of securities from subject company of this research report,
b)
received compensation for investment banking or merchant banking or brokerage services from subject company of this research report,
c)
received compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company of this research report.
d)
Subject Company may have been a client of MOSL or its associates during twelve months preceding the date of distribution of the research report.
MOSL and it’s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report. To enhance transparency, MOSL has incorporated a Disclosure
of Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the report. MOSL 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 MOSL 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.
Terms & Conditions:
This report has been prepared by MOSL 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 MOSL. 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. MOSL will not treat recipients as customers by virtue of their receiving this report.
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.
Britannia Industries
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 MOSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from MOSL 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 MOSL & 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 Securities Limited (MOSL) 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 MOSL 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 MOSL, 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., MOSL 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
Motilal Oswal Capital Markets Singapore Pte Limited is acting as an exempt financial advisor under section 23(1)(f) of the Financial Advisers Act(FAA) read with regulation 17(1)(d) of the Financial Advisors Regulations and is a
subsidiary of Motilal Oswal Securities Limited in India. This research is distributed in Singapore by Motilal Oswal Capital Markets Singapore Pte Limited and it is only directed in Singapore to accredited investors, as defined in
the Financial Advisers Regulations and the Securities and Futures Act (Chapter 289), as amended from time to time. In respect of any matter arising from or in connection with the research you could contact the following
representatives of Motilal Oswal Capital Markets Singapore Pte Limited:
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. MOSL, 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 MOSL. 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 MOSL 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 MOSL or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOSL or any of its affiliates or
employees responsible for any such misuse and further agrees to hold MOSL 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.: 022-3980 4263; www.motilaloswal.com. Correspondence Address: Palm Spring
Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 3080 1000. Compliance Officer: Neeraj Agarwal, Email Id:
na@motilaloswal.com,
Contact No.:022-30801085.
Registration details of group entities.: MOSL: NSE (Cash): INB231041238; NSE (F&O): INF231041238; NSE (CD): INE231041238; BSE (Cash): INB011041257; BSE(F&O): INF011041257; BSE(CD); MSE(Cash): INB261041231;
MSE(F&O): INF261041231; MSE(CD): INE261041231; CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412. AMFI: ARN 17397. Investment Adviser: INA000007100. Motilal Oswal Asset
Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670) offers PMS and Mutual Funds products. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) offers wealth
management solutions. *Motilal Oswal Securities Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs, Insurance and IPO products. * Motilal Oswal Commodities Broker Pvt. Ltd. offers Commodities
Products. * Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. offers Real Estate products. * Motilal Oswal Private Equity Investment Advisors Pvt. Ltd. offers Private Equity products
Disclosure of Interest Statement
Analyst ownership of the stock
Britannia Industries
No
9 August 2017
10