27 October 2017
2QFY18 Results Update | Sector: Consumer
ITC
BSE SENSEX
33,157
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, INRm
Free float (%)
S&P CNX
10,323
ITC IN
12,147.4
3,617.6 / 56.1
353/222
-2/-14/-8
3546.0
100.0
CMP: INR269
TP: INR280 (+3%)
Neutral
Cigarette volume decline higher than expected; outlook muted
ITC’s 2QFY18 net revenue grew 1.1% YoY
(est. of +2.5%) to INR97.6b. EBITDA
margin expanded 90bp YoY (est. of +160bp). EBITDA thus grew 3.6% YoY to
INR37.6b (est. of +6.6%). Adj. PAT grew 5.6% YoY (est. of +9.5%) to INR26.4b.
Cigarette volume is likely to have declined ~6% YoY,
higher than our
expectation of a 2% fall. We reckon the proportion of sub-65mm cigarette
sales to have increased further. For cigarette, revenue declined 2.3% YoY, while
EBIT grew 2.3% YoY (320bp expansion of EBIT margin on gross sales). Cigarette
EBIT growth was the second weakest in 10 quarters, following a 1.7% increase
in 3QFY17. Outlook appears tough for the near term.
‘FMCG – Others’ sales were up 5.3% YoY to INR28b
(est. of +4%), with EBIT
profit of INR205m compared to INR33m loss in 2QFY17. The accompanying
result press release stated that a) comparable sales growth for ‘FMCG - Others’
was ~10% and b) it gained market share in major FMCG categories, particularly
in atta, potato chips, premium cream biscuits and deodorants.
Hotels, Agri and Paper revenues grew 1.0%, 4.6% and 4.7% YoY, respectively.
Margin in the paper business expanded 240bp YoY to 20.9%, the highest in 13
quarters. Hotel business reported a 120bp margin improvement, while agri
business witnessed a 280bp EBIT margin contraction.
Valuation view:
Results were below our estimates, leading to a 2-3% cut in our
FY18/FY19 EPS. Cigarette volumes are likely to be under pressure following the
12% price increase between February and July. Valuations of 26.8x FY19E EPS
are fair for a business facing earnings risks from higher GST rates. While
eventual diversification away from cigarette (86% of total EBIT in FY17) to
other businesses is possible, as of now, the fate of the business is contingent
on regulations governing the cigarette business
.
We maintain
Neutral
with a
TP of INR280 (26x September FY19E EPS, 10% discount to three-year average).
(INR Million)
FY18
2Q
3QE
-6.0
-3.0
97,639 96,183
1.1
4.0
60,024 58,339
37,615 37,844
3.6
6.7
38.5
39.3
2,824
3,065
290
136
4,942
7,567
39,443 42,210
13,045 13,929
33.1
33.0
26,398 28,281
5.6
6.9
Financials & Valuations (INR b)
Y/E Mar
2017 2018E 2019E
Net Sales
396.4 410.7 456.2
EBITDA
145.8 155.6 171.7
NP
102.0 110.6 121.9
EPS (INR)
8.4
9.1
10.0
EPS Gr. (%)
9.4
8.5
10.2
BV/Sh. (INR)
37.2
37.5
40.9
RoE (%)
23.5
24.4
25.6
RoCE (%)
22.6
23.5
24.7
P/E (x)
32.0
29.5
26.8
P/BV (x)
7.2
7.2
6.6
EV/EBITDA (x)
21.0
19.6
17.6
Div. Yield
2.1
2.4
2.6
Estimate change
TP change
Rating change
Quarterly Performance
Y/E March
Cigarette Vol Gr (%)
Net Sales
YoY Change (%)
Total Exp
EBITDA
Growth (%)
Margins (%)
Depreciation
Interes t
Other Income
PBT
Tax
Rate (%)
Adj PAT
YoY Change (%)
E: MOSL Estimates
1Q
3.0
100,540
9.8
65,278
35,262
8.4
35.1
2,613
101
4,205
36,754
12,907
35.1
23,847
10.1
FY17
2Q
3Q
4.0
-1.0
96,607 92,484
9.8
4.3
60,307 57,020
36,300 35,464
7.3
2.1
37.6
38.3
2,684
2,665
107
136
4,754
6,879
38,262 39,542
13,262 13,075
34.7
33.1
25,000 26,467
10.5
5.7
FY17
4QE
3.0
122,253
9.9
79,584
42,669
10.1
34.9
3,135
159
4,645
44,020
13,675
31.1
30,345
13.7
1.5
400,887
9.6
255,106
145,780
6.3
36.4
10,380
230
19,859
155,030
53,021
34.2
102,009
9.5
FY18E
-1.3
415,622
3.7
260,030
155,592
6.7
37.4
11,707
689
21,923
165,119
54,489
33.0
110,630
8.5
4Q
0.0
111,255
14.0
72,502
38,754
7.5
34.8
2,418
-115
4,021
40,471
13,777
34.0
26,695
12.1
1Q
1.0
99,547
-1.0
62,083
37,464
6.2
37.6
2,682
104
4,768
39,446
13,841
35.1
25,605
7.4
FY18
2QE
-2.0
99,022
2.5
60,329
38,693
6.6
39.1
2,953
107
5,229
40,862
13,484
33.0
27,378
9.5
Var.
-1.4%
-2.8%
-3.5%
-3.6%
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.
Krishnan Sambamoorthy
– Research Analyst
(Krishnan.Sambamoorthy@MotilalOswal.com); +91 22 6129 1545
Vishal Punmiya
– Research Analyst
(Vishal.Punmiya@MotilalOswal.com); +91 22 6129 1547

ITC
Exhibit 1:
Segmental performance
2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18
Sales (INR m)
Cigarettes
FMCG - Others
Hotels
Agri business
Paper and packaging
Sales growth (YoY)
Cigarettes
FMCG - Others
Hotels
Agri business
Paper and packaging
Vol. growth (YoY)
Cigarettes
EBIT (INR m)
Cigarettes
FMCG - Others
Hotels
Agri business
Paper and packaging
EBIT growth (YoY)
Cigarettes
FMCG - Others
Hotels
Agri business
Paper and packaging
EBIT Margin (%)
Cigarettes
FMCG - Others
Hotels
Agri business
Paper and packaging
67.8
-0.5
-3.7
14.5
18.9
69.7
0.5
8.7
14.9
17.8
64.3
1.9
12.1
11.5
15.8
58.8
-0.4
-2.5
10.1
19.8
70.1
-0.5
-1.9
15.9
16.7
72.7
0.8
7.5
15.9
19.2
70.9
2.9
11.7
9.4
16.5
58.9
-0.2
0.4
8.5
19.7
69.0
-0.1
0.2
15.8
18.5
74.7
-0.8
11.4
14.2
19.7
63.2
1.9
17.3
7.0
18.6
65.3
0.2
1.7
8.5
20.1
72.3
0.7
1.4
13.0
20.9
19.5
-18.8
-209.9
4.8
9.7
8.8
10.7
-53.8
16.3
-7.7
6.0
12.6
-29.8
13.0
1.1
2.2
-48.9
-40.0
15.5
-7.4
3.0
7.7
-42.2
-1.5
-13.6
3.4
63.6
-10.0
-1.6
12.7
11.5
62.0
1.5
3.6
6.5
8.0
-43.3
-116.8
1.5
-2.7
8.4
-70.6
-111.7
1.0
10.8
1.7
-204.9
63.2
0.7
2.1
8.0
-29.3
56.9
-20.8
18.6
9.0
-220.1
335.2
-0.9
3.9
2.3
-728.5
552.3
-13.7
18.2
28,821 28,863 27,062 27,811 29,689 29,838 30,186 30,046 32,169 30,337 32,588 32,741 32,917
-103
115
485
-80
-111
188
786
-45
-33
-197
556
54
205
-96
287
420
-73
-55
258
427
12
7
422
669
53
42
2,983 2,388 1,644 2,339 2,939 2,349 1,703 2,373 2,970 2,366 1,349 2,351 2,562
2,421 2,139 1,906 2,544 2,093 2,410 2,030 2,477 2,320 2,460 2,408 2,573 2,742
-4.0
-13.0
-12.0
-17.0
-14.0
-5.0
0.0
3.0
4.0
-1.0
0.0
1.0
-3.0
14.2
11.9
5.9
16.1
8.9
0.6
11.4
4.7
-10.6
-4.7
3.2
10.9
8.1
-28.8
-4.6
12.6
12.2
15.7
-29.5
-0.5
-0.4
7.0
10.9
-10.4
-2.3
-1.0
7.0
4.6
-7.3
4.8
1.2
5.3
4.8
26.5
2.1
7.9
9.6
-0.2
20.2
-1.8
10.0
13.3
2.5
2.0
-0.2
-1.0
3.4
7.3
12.9
-0.5
21.1
6.5
6.5
6.2
5.5
-1.7
9.0
6.1
-1.2
1.9
-2.3
5.3
1.0
4.7
4.6
42,509
21,960
2,616
20,587
12,841
41,419
23,141
3,303
15,979
11,988
42,107
25,665
3,464
14,279
12,026
47,284
21,714
2,878
23,254
12,826
42,346
23,504
2,901
18,437
12,547
41,016
24,767
3,453
14,810
12,558
42,598
27,020
3,630
18,068
12,274
51,020
23,788
2,874
27,941
12,589
46,596
26,637
2,973
18,801
12,523
40,615
25,606
3,705
16,719
12,494
51,571
28,780
3,865
19,185
12,951
50,130
25,932
3,049
27,605
12,829
45,542
28,041
3,002
19,680
13,094
Note: Segmental net sales are calculated figures from1QFY17 to 1QFY18
Source: Company, MOSL
Exhibit 2: Cigarette volumes declined ~6% in 2QFY18
Cig volume growth (%)
Source: Company, MOSL
27 October 2017
2

ITC
Cigarette volumes declined ~6%; Cig. EBIT margin grew 320bp YoY
Cigarette volumes came in below estimate at ~6%. Legal industry volumes
remain under pressure in 2QFY18 due to higher tax burden under the GST
regime and GST transition costs. Outlook appears tough for the near term. There
have been no more price increases in cigarettes after July, so the impact of 12%
price increases over Feb-July 2017 will abate gradually.
Net cigarette revenue declined ~2.3% YoY. Cig. EBIT grew 2.3% (320bp
expansion of EBIT margin on net sales). We reckon proportion of sub-65mm
cigarette sales to have increased further to around mid-30s level.
FMCG - Others: Good performance in challenging environment
‘FMCG – Others’ net sales were up 5.3% YoY to INR28b. On a comparable basis,
the segment has registered 10% growth, despite a muted demand environment
and disruption due to GST transition. Retail offtake has been improving through
the quarter; wholesale channel is yet to recover to normalcy. FMCG - Others has
been less affected compared to peers because of lower rural and wholesale
dependence.
The company has gained market share in major FMCG categories, particularly in
atta, potato chips, premium cream biscuits and deodorants.
Segment EBIT posted a profit of INR205m v/s EBIT loss of INR33m in 2QFY17, led
by scale benefits, increased realization and mix benefits.
Agri business: Subdued sales; EBIT declined YoY
Revenues were up 4.7% YoY, led by the adverse impact of the Andhra leaf
tobacco crop and lower trading in other agri-commodities. Agri business could
be under pressure in terms of growth for the next couple of quarters due to
shortage of leaf tobacco.
Segment reported EBIT decline of 13.7% YoY to INR2.4b, with EBIT margin down
280bp YoY. The performance was impacted by high leaf costs, adverse crop
quality and strengthening of rupee.
Hotels: Segment EBIT grew YoY, but impacted by gestation and renovation cost
Hotel segment revenues grew by just 1% YoY, impacted by the highway liquor
ban and the renovation work at two hotels. Impact of highway alcohol ban on
hotel business is now behind.
Segment EBIT stood at INR42m compared to INR7m YoY. The performance
would have been better if not for the gestation cost of ITC Grand Bharat,
Gurgaon and the renovation cost of two hotels.
Paper: Sales impacted by slowdown in FMCG and cigarette industry
Paper and paperboard business’ net sales grew 4.6% YoY to INR13b, as it
continued to be affected by subdued demand in FMCG and legal cigarette
industry, cheap imports from China, and zero duty imports under free trade
agreement with ASEAN countries.
Segment EBIT grew 18.2% YoY to INR2.7b, as EBIT margins on net sales
expanded 240bp YoY to 18.2%.
27 October 2017
3

ITC
Valuation and view
Results were below estimates, leading to a 2-3% cut in our FY18/FY19E EPS.
Cigarette volumes are likely to be under pressure, following a 12% price increase
between February and July.
Valuations of 26.8x FY19E EPS are fair for a business facing earnings risks from
higher GST rates. While eventual diversification away from cigarettes (86% of
total EBIT in FY17) to other businesses is possible, as of now, the fate of the
business is contingent on regulations governing the cigarettes business.
We maintain
Neutral
with a target price of INR280 (26x September FY19E EPS,
10% discount to three-year average).
Exhibit 4: Consumer sector P/E (x)
Max (x)
-1SD
47.0
29.3
34.0
39.0
31.0
27.0
21.1
15.7
23.0
15.0
36.9
P/E (x)
Min (x)
Avg (x)
+1SD
Max (x)
-1SD
41.2
30.1
23.2
17.1
39.0
Exhibit 3: ITC P/E (x)
P/E (x)
Min (x)
39.0
34.0
29.0
24.0
19.0
14.0
25.2
Avg (x)
+1SD
Source: Bloomberg, Company, MOSL
Source: Bloomberg, Company, MOSL
27 October 2017
4

ITC
Exhibit 5: 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
Neutral
Buy
Neutral
Neutral
Neutral
Neutral
Neutral
Buy
Neutral
Neutral
Buy
Neutral
Sell
Neutral
1,187
4,589
1,057
322
1,243
925
4,927
1,257
269
375
311
7,166
1,280
5,165
1,328
330
1,435
1,005
4,630
1,440
280
410
350
6,160
8
13
26
2
15
9
-6
15
4
9
13
-14
7
7
6
10
-1
-2
-22
0
1,142
553
287
567
274
629
207
2,751
3,262
67
405
688
279
222
23
405
249
374
108
520
17.6
8.5
4.4
8.7
4.2
9.7
3.2
42.3
50.2
1.0
6.2
10.6
4.3
3.4
0.3
6.2
3.8
5.8
1.7
8.0
8.7
7.3
-5.7
1.9
4.5
12.4
0.9
1.9
9.4
175.7
12.1
-1.6
2.3
15.0
-46.4
6.7
-23.0
87.1
-32.1
18.5
2.6
15.8
10.2
6.7
0.2
14.0
1.3
16.2
8.5
-12.6
8.5
-2.5
14.0
23.4
152.6
7.9
13.9
30.6
114.2
15.8
19.8
22.6
22.1
18.3
25.0
14.6
15.2
21.0
10.2
13.2
20.9
16.1
16.1
35.2
37.0
14.0
41.5
53.8
28.0
20.0
56.5
62.3
49.8
44.5
46.8
48.9
31.6
64.0
32.0
33.4
49.5
60.7
64.9
83.5
73.5
47.0
113.8
113.3
162.0
65.3
55.0
53.8
45.2
41.7
46.7
42.9
31.2
55.1
29.5
38.2
45.6
62.3
56.9
67.6
29.1
43.6
99.9
86.7
75.6
56.4
45.9
43.9
37.0
35.3
37.4
37.5
27.1
45.6
26.8
33.7
37.7
53.6
49.0
50.0
21.2
38.2
70.6
56.4
59.1
47.0
28.5
36.9
50.4
28.4
35.8
24.6
22.2
66.5
23.5
21.1
36.7
39.0
39.3
40.0
6.0
28.2
10.2
21.3
8.2
20.6
0.8
0.0
0.9
0.8
0.7
0.6
1.1
1.3
2.1
1.6
1.0
0.9
3.8
0.4
0.0
0.6
0.1
0.0
0.2
0.5
CMP
Target
Mkt Cap
Price
Upside
(INR)
(INR B) (USD B)
(%)
EPS Growth YoY (%)
FY17 FY18E
FY19E FY17
P/E (x)
FY18E
FY19E
RoE
(%)
FY17
Div.
(%)
FY17
8,623 9,200
19,932 21,310
265
280
787
865
988
980
3,029 2,970
1,621
590
1,270
590
*For Nestle FY17 = CY16
Source: Company, MOSL
27 October 2017
5

ITC
Financials and Valuations
Income Statement
Y/E March
Net Sales
Operational Income
Total Revenue
Change (%)
Total Expenditure
EBITDA
Change (%)
Margin (%)
Depreciation
Int. and Fin. Charges
Other Inc. - Recurring
Profit before Taxes
Change (%)
Margin (%)
Tax
Deferred Tax
Tax Rate (%)
Profit after Taxes
Change (%)
Margin (%)
Reported PAT
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Loans
Deferred Liability
Capital Employed
Gross Block
Less: Accum. Depn.
Net Fixed Assets
Capital WIP
Investments
Current
Non-current
Curr. Assets, L&A
Inventory
Account Receivables
Cash and Bank Balance
Others
Curr. Liab. and Prov.
Account Payables
Other Liabilities
Provisions
Net Current Assets
Application of Funds
E: MOSL Estimates
(INR Million)
2020E
511,243
5,947
517,189
12.0
322,407
194,782
13.5
38.1
13,507
689
25,670
206,256
13.3
40.3
61,877
6,188
33.0
138,192
13.3
27.0
138,192
(INR Million)
2020E
12,147
531,281
543,429
180
12,822
556,430
300,156
128,717
171,438
34,913
242,134
129,192
112,942
206,335
113,987
28,013
21,494
42,841
98,391
81,599
15,554
1,238
107,944
556,430
2015
360,832
4,242
365,074
9.8
230,128
134,946
8.2
37.4
9,617
785
15,431
139,975
10.6
38.8
40,210
3,688
31.4
96,077
9.4
26.6
96,077
2016
362,206
3,621
365,827
0.2
228,681
137,146
1.6
37.9
10,007
491
17,693
144,341
3.1
39.9
48,961
2,096
35.4
93,284
-2.9
25.8
93,284
2017
396,419
4,468
400,887
9.6
255,106
145,780
6.3
36.8
10,380
230
19,859
155,030
7.4
39.1
52,857
164
34.2
102,009
9.4
25.7
102,009
2018E
410,707
4,914
415,622
3.7
260,030
155,592
6.7
37.9
11,707
689
21,923
165,119
6.5
40.2
49,536
4,954
33.0
110,630
8.5
26.9
110,630
2019E
456,226
5,406
461,632
11.1
289,957
171,675
10.3
37.6
12,607
689
23,626
182,005
10.2
39.9
54,602
5,460
33.0
121,943
10.2
26.7
121,943
2015
12,100
295,257
307,357
143
16,316
323,816
209,908
72,136
137,771
25,155
84,055
59,638
24,416
194,976
78,368
17,224
75,886
23,498
118,140
53,817
14,226
50,097
76,835
323,816
2016
12,147
404,417
416,564
165
18,674
435,403
220,933
80,516
140,417
23,884
133,245
64,713
68,532
202,636
85,198
16,864
56,392
44,182
64,780
56,700
7,796
284
137,856
435,403
2017
12,147
439,352
451,500
180
18,717
470,397
240,156
90,896
149,259
34,913
185,723
100,868
84,855
170,354
78,640
22,075
27,473
42,166
69,853
59,024
9,818
1,011
100,501
470,397
2018E
12,147
443,761
455,908
180
18,889
474,977
260,156
102,603
157,552
34,913
190,030
102,690
87,341
172,037
91,123
22,505
22,742
35,667
79,555
65,710
12,855
991
92,482
474,978
2019E
12,147
485,100
497,247
180
19,439
516,866
280,156
115,210
164,945
34,913
218,866
116,192
102,675
186,575
101,745
24,999
20,911
38,921
88,434
73,202
14,140
1,092
98,141
516,866
27 October 2017
6

ITC
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)
Cash Flow Statement
Y/E March
OP/(loss) before Tax
Int./Div. Received
Depreciation and Amort.
Interest Paid
Direct Taxes Paid
Incr in WC
CF from Operations
Incr Decr in FA
Free Cash Flow
Pur of Investments
CF from Invest.
Issue of shares
Incr in Debt
Interest Income
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Incr of Cash
Add: Opening Balance
Closing Balance
E: MOSL Estimates
2015
7.9
8.7
25.4
5.0
62.8
2016
7.7
8.5
34.3
6.8
88.3
2017
8.4
9.3
37.2
5.6
66.2
2018E
9.1
10.1
37.5
6.4
70.2
2019E
10.0
11.1
40.9
7.0
70.2
2020E
11.4
12.5
44.7
8.0
70.2
32.0
29.1
7.7
21.0
7.2
2.1
29.5
26.7
7.4
19.6
7.2
2.4
26.8
24.3
6.6
17.6
6.6
2.6
23.6
21.5
5.9
15.4
6.0
3.0
33.7
32.2
63.8
20
1.1
25.8
24.7
45.6
17
0.8
23.5
22.6
40.1
18
0.8
24.4
23.5
42.9
20
0.9
25.6
24.7
45.4
19
0.9
26.6
25.8
48.6
19
0.9
0.0
0.0
0.0
0.0
0.0
0.0
(INR Million)
2020E
206,256
25,670
13,507
689
68,065
9,220
117,497
20,000
97,497
23,267
-43,267
5,000
0
25,670
689
73,166
-30,462
-73,647
583
20,911
21,494
2015
139,975
15,431
9,617
785
43,898
-10,583
101,381
29,709
71,673
-4,180
-25,529
9,726
-12
15,431
785
47,719
-9,501
-32,860
42,992
32,894
75,886
2016
144,341
17,693
10,007
491
51,057
80,515
7,202
9,755
-2,553
49,191
-58,945
5,285
21
17,693
491
50,097
59,839
32,250
-19,494
75,886
56,392
2017
155,030
19,859
10,380
230
53,021
-8,436
101,196
30,252
70,944
52,478
-82,729
5,000
15
19,859
230
68,401
-3,630
-47,386
-28,920
56,392
27,472
2018E
165,119
21,923
11,707
689
54,489
-3,289
104,392
20,000
84,392
4,308
-24,308
5,000
0
21,923
689
57,737
-53,312
-84,815
-4,731
27,473
22,742
2019E
182,005
23,626
12,607
689
60,062
7,491
104,122
20,000
84,122
28,836
-48,836
5,000
0
23,626
689
66,378
-18,677
-57,118
-1,832
22,742
20,911
27 October 2017
7

ITC
Financials and Valuations
Corporate profile
Company description
ITC is an associate of BAT (British American
Tobacco) controls more than 2/3rd of the cigarette
market in India. ITC has emerged as a diversified
conglomerate with leading presence in
Paperboards, Hotels and Processed foods. E-
Choupal, the agri rural initiative of the company has
been widely appreciated for its foresight in
harnessing the potential in the rural market.
Source: MOSL/Bloomberg
Exhibit 1: Sensex rebased
Exhibit 2: Shareholding pattern (%)
Sep-17
Promoter
DII
FII
Others
0.0
36.4
19.3
44.4
Jun-17
0.0
35.9
20.2
44.0
Sep-16
0.0
34.9
21.1
44.0
Source: Capitaline
Exhibit 3: Top holders
Holder Name
Tobacco Manufacturers (India) Limited
LIC of India
Specified Undertaking of the Unit Trust of
India
Myddleton Investment Company Limited
GIC of India
% Holding
24.5
16.2
9.1
4.0
1.8
Source: Capitaline
Note: FII Includes depository receipts
Exhibit 4: Top management
Name
Yogesh Chander Deveshwar
Biswa Behari Chatterjee
Sanjiv Puri
Designation
Chairman
Executive VP & CS
Whole Time Director & COO
Exhibit 5: Directors
Name
Anil Baijal
Meera Shankar
S B Mainak
Sahibzada Syed
Rehman
Nirupama Rao
Rajiv Tandon
Habib
ur
Name
Arun Duggal
P B Ramanujam
S Banerjee
Sunil Behari Mathur
Nakul Anand
Source: Capitaline
*Independent
Exhibit 6: Auditors
Name
Deloitte Haskins & Sells
Shome & Banerjee
Type
Statutory
Cost Auditor
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY18
FY19
FY20
MOSL
forecast
9.1
10.0
11.4
Consensus
forecast
9.3
10.6
11.9
Variation
(%)
-2.1
-5.6
-4.4
Source: Bloomberg
Source: Capitaline
27 October 2017
8

ITC
NOTES
27 October 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).
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indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
ITC
Disclosure of Interest Statement
Analyst ownership of the stock
ITC
No
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
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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
27 October 2017
10