18 July 2019
1QFY20 Results Update | Sector: Consumer
Colgate
Buy
BSE SENSEX
38,897
S&P CNX
11,597
CMP: INR1,203
TP: INR1,400 (+16%)
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Demand moderation temporary; expect recovery soon
CLGT’s revenue increased 4.2% YoY
to INR10.8b (our estimate: INR11.2b).
EBITDA grew 6.5% YoY to INR3b (our estimate: INR2.8b). Adj. PAT was up 1.3%
YoY to INR1.7b (in-line). Domestic sales grew 6% YoY, led by 4% volume
growth (our estimate: +6%).
Gross margin shrank 10bp YoY to 65.9%
(our estimate: 64.8%). Higher staff
costs (+50bp YoY) and ad spends (+20bp YoY) were offset by lower other
expenses (-130bp YoY), leading to EBITDA margin expansion of 60bp YoY to
27.6% (our estimate: 25%). Absolute ad spends increased just 5.4% YoY.
CLGT adopted Ind-AS 116 ‘Leases’ using the modified retrospective method,
which means that comparatives for FY19 have not been retrospectively
adjusted.
Valuation and view:
We lower our growth assumption for FY20 post results,
leading to changes to our model. Consequently, there is a minor cut in our
FY20/21 EPS estimate. Although CLGT expects a demand recovery in the
coming quarters, near-term volume growth is likely to be in mid-single-digits,
despite stability attained in market share in the previous quarter.
Management’s decision to place primacy on volume-led sales growth will
likely restrict near-term margin expansion, in our view. However, a few factors
are in CLGT’s favor from the medium-term perspective – (a) the toothpaste
market share hemorrhage appears to have abated after three years, (b) there
is evident traction driven by herbal and other launches and (c) valuations are
relatively less expensive at ~35x FY21E EPS, ~7% discount to our ex-cigarette
and alcohol consumer peer valuations. With return ratios superior to peers
(barring HUL) and likely to improve further due to better utilization of
expanded capacity, such a discount is unwarranted when execution starts
improving. Valuing the company at 40x FY21 EPS, we derive a target price of
INR1,400. Maintain
Buy.
(INR Million)
FY20
2QE
3QE
5.0
6.0
12,732 12,257
9.0
11.5
8,251
7,994
64.8
65.2
3,532
3,549
27.7
29.0
7.2
12.8
438
447
86
79
3,180
3,181
1,050
1,050
33.0
33.0
2,131
2,131
8.5
10.9
FY19
4QE
7.0
13,033
13.0
8,440
64.8
3,433
26.3
10.6
366
12
3,021
927
30.7
2,094
4.7
5.0
44,624
6.6
29,038
65.1
12,360
FY20E
5.0
48,870
9.5
31,829
65.1
13,511
FY19
1QE
6.0
11,247
8.0
7,290
64.8
2,816
25.0
0.0
431
92
2,476
817
33.0
1,659
-0.6
Var.
(%)
-3.5%
-2.0%
6.5%
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
CLGT IN
272
327.2 / 4.7
1365 / 1020
6/-15/2
572
49.0
Financials & Valuations (INR b)
Y/E Mar
2019 2020E 2021E
Net Sales
44.6
48.9
54.4
EBITDA
12.4
13.5
15.5
PAT
7.5
8.0
9.3
EPS (INR)
27.4
29.6
34.1
Gr. (%)
8.8
8.0
15.3
BV/Sh (INR)
53.2
50.9
46.9
RoE (%)
50.1
56.9
69.8
RoCE (%)
47.9
53.2
64.9
P/E (x)
44.0
40.8
35.3
P/BV (x)
22.7
23.7
25.7
Estimate change
TP change
Rating change
Quarterly Performance
Y/E March
Toothpaste Volume Gr %
Net Sales (incldg. OOI)
YoY change (%)
Gross Profit
Gross margin (%)
EBITDA
Margins (%)
YoY growth (%)
Depreciation
Financial other Income
PBT
Tax
Rate (%)
Adj PAT
YoY change (%)
1Q
4.0
10,413
6.5
6,863
65.9
2,815
27.0
26.7
394
92
2,513
844
33.6
1,669
22.4
FY19
2Q
3Q
7.0
7.0
11,680 10,994
7.7
6.4
7,565
7,161
64.8
65.1
3,296
3,145
28.2
28.6
9.5
11.2
398
406
86
79
2,984
2,818
1,020
897
34.2
31.8
1,964
1,921
10.6
12.6
4Q
5.0
11,538
5.7
7,449
64.6
3,104
26.9
0.9
394
120
2,805
805
28.7
2,000
1.7
1Q
4.0
10,849
4.2
7,145
65.9
2,998
27.6
6.5
499
152
2,674
937
35.0
1,691
1.3
27.7
11.0
27.6
9.3
1,592
377
11,120
3,566
32.1
7,554
10.9
1,749
329
12,011
3,964
33.0
8,047
8.0%
6.5
1.9%
Krishnan Sambamoorthy – Research Analyst
(Krishnan.Sambamoorthy@MotilalOswal.com); +91 22 6129 1545
Vishal Punmiya – Research Analyst
(Vishal.Punmiya@MotilalOswal.com); +91 22 6129 1547
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.
 Motilal Oswal Financial Services
Colgate
Key Quarterly Charts
Exhibit 1: Toothpaste volumes up 4% in 1QFY20
Toothpaste volume growth (%)
5
7
5
5
3
3
5
4
(1)
12
4
4
7
7
5
4
2
1
(3)
(12)
(5)
Source: Company, MOFSL
Exhibit 2: Revenue up 4.2% YoY to INR10.8b
Revenue (INR b)
18.2
8.8 9.5
2.2
-8.6
2.7
-3.5
7.7 6.4 5.7
5.2 6.5
4.2
Total revenue growth (%)
Exhibit 3: Gross margin shrinks 10bp YoY to 65.9%
Gross margin (%)
10.1 10.6 8.7 10.4 9.8 10.8 10.3 10.9 10.4 11.7 11.0 11.5 10.8
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 4: EBITDA margin expands 60bp YoY to 27.6%
EBITDA margin (%)
Exhibit 5: EBITDA up 6.5% YoY to INR3b
EBITDA (INR b)
32.2
3.7
8.1
-10.3
2.1 2.7 2.1 2.4 2.2 3.0 2.8 3.1 2.8 3.3 3.1 3.1 3.0
5.2
9.5
EBITDA growth (%)
26.6 26.7
9.5 11.2
0.9
6.5
0.7
Source: Company, MOFSL
Source: Company, MOFSL
Valuation and view
We lower our growth assumption for FY20 post results, leading to changes to
our model. Consequently, there is a minor cut in our FY20/21 EPS estimate.
CLGT’s high rural and wholesale exposure means that near-term volume growth
is likely to be in mid-single-digits, despite stability attained in market share in
the previous quarter.
Management’s decision to place primacy on volume-led sales growth will likely
restrict near-term margin expansion, in our view. However, a few factors are in
2
18 July 2019
 Motilal Oswal Financial Services
Colgate
CLGT’s favor from the medium-term perspective – (a) the toothpaste market
share hemorrhage appears to have abated after three years, (b) there is evident
traction driven by herbal and other launches and (c) valuations are relatively less
expensive at ~35x FY21E EPS, ~7% discount to our ex-cigarette and alcohol
consumer peer valuations.
With return ratios superior to peers (barring HUL) and likely to improve further
due to better utilization of expanded capacity, such a discount is unwarranted
when execution starts improving. Valuing the company at 40x FY21 EPS, we
derive a target price of INR 1,400. Maintain
Buy.
Exhibit 6: Changes to model due to lower growth has resulted in ~1% EPS cut each for FY20/FY21
Old
Sales
EBITDA
PAT
FY20E
49,256
13,606
8,112
FY21E
54,789
15,563
9,355
FY20E
48,870
13,511
8,047
New
FY21E
54,359
15,454
9,281
FY20E
(0.8)
(0.7)
(0.8)
Change (%)
FY21E
(0.8)
(0.7)
(0.8)
Source: Company, MOFSL
Exhibit 7: CLGT P/E (x)
P/E (x)
Min (x)
50.0
40.0
30.0
20.0
10.0
0.0
Avg (x)
+1SD
42.4
Max (x)
-1SD
45.9
35.5
28.6
20.5
36.3
Exhibit 8: Consumer sector P/E (x)
P/E (x)
55.0
47.0
39.0
31.0
23.0
15.0
Min (x)
Avg (x)
+1SD
Max (x)
-1SD
47.5
40.0
33.6
27.2
21.4
39.4
Source: Company, MOFSL
Source: Company, MOFSL
18 July 2019
3
 Motilal Oswal Financial Services
Colgate
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
Tax Rate (%)
Adjusted PAT
Change (%)
Margin (%)
Non-rec. (Exp)/Income
Reported PAT
2015
39,887
11.0
14,677
25,210
63.2
16,920
8,290
22.2
20.8
750
0
264
7,804
17.6
19.6
2,009
28.4
5,590
13.9
14.0
0
5,590
2016
38,682
-3.0
14,763
23,919
61.8
14,534
9,385
13.2
24.3
1,114
0
395
8,666
11.1
22.4
2,541
29.3
6,125
9.6
15.8
-313
5,812
2017
39,818
2.9
14,763
25,055
62.9
15,619
9,435
0.5
23.7
1,332
0
411
8,514
-1.8
21.4
2,740
32.2
5,774
-5.7
14.5
0
5,774
2018
41,880
5.2
14,901
26,979
64.4
15,855
11,124
17.9
26.6
1,565
0
388
9,947
16.8
23.8
3,022
31.1
6,850
18.6
16.4
-117
6,734
2019
44,624
6.6
15,586
29,039
65.1
16,678
12,361
11.1
27.7
1,592
25
377
11,121
11.8
24.9
3,717
33.0
7,451
8.8
16.7
305
7,756
2020E
48,870
9.5
17,041
31,829
65.1
18,318
13,511
9.3
27.6
1,749
80
329
12,011
8.0
24.6
3,964
33.0
8,047
8.0
16.5
0
8,047
(INR M)
2021E
54,359
11.2
18,732
35,627
65.5
20,173
15,454
14.4
28.4
1,849
80
327
13,852
15.3
25.5
4,570
33.0
9,281
15.3
17.1
0
9,281
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 & Bank
Others
Curr. Liab. and Prov.
Account Payables
Other Liabilities
Provisions
Net Current Assets
Application of Funds
2015
272
7,431
7,703
0
26
7,729
12,829
-5,013
7,816
1,412
371
371
0
7,420
2,522
696
2,545
1,657
9,290
5,144
2,874
1,272
-1,870
7,729
2016
272
10,038
10,310
0
97
10,407
14,866
-4,785
10,081
784
312
0
312
8,852
2,915
1,015
2,887
2,035
9,622
5,519
3,438
664
-770
10,407
2017
272
12,466
12,738
0
275
13,013
17,188
-6,107
11,081
1,666
312
0
312
10,048
2,926
1,299
2,943
2,880
10,094
5,975
3,356
763
-46
13,013
2018
272
14,974
15,246
0
355
15,601
19,077
-7,617
11,459
1,586
312
0
312
12,282
2,267
2,010
4,562
3,443
10,037
6,145
3,098
794
2,245
15,601
2019
272
14,196
14,468
777
309
15,553
21,118
-9,209
11,909
1,987
312
0
312
12,058
2,486
2,098
3,994
3,481
10,712
6,132
3,757
823
1,346
15,553
2020E
272
13,561
13,833
777
309
14,919
22,618
-10,959
11,659
1,987
312
0
312
13,399
2,748
2,394
4,666
3,591
12,437
7,802
3,771
864
962
14,919
(INR M)
2021E
272
12,485
12,757
777
309
13,843
23,618
-12,808
10,810
1,987
312
0
312
13,227
3,010
2,367
4,139
3,711
12,493
7,750
3,836
907
734
13,843
18 July 2019
4
 Motilal Oswal Financial Services
Colgate
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)
2015
20.6
23.3
28.3
12.5
60.6
2016
22.5
26.6
37.9
11.0
48.8
2017
21.2
26.1
46.8
11.0
51.7
2018
25.2
30.9
56.1
24.0
95.3
2019
27.4
33.2
53.2
23.0
84.0
2020E
29.6
36.0
50.9
25.7
87.0
2021E
34.1
40.9
46.9
30.7
90.0
58.7
51.7
8.2
39.2
42.6
1.0
53.6
45.3
8.4
34.6
31.8
0.9
56.8
46.2
8.2
34.4
25.8
0.9
47.9
39.0
7.7
29.1
21.5
2.0
44.0
36.3
7.3
26.3
22.7
1.9
40.8
33.5
6.6
24.0
23.7
2.1
35.3
29.5
6.0
21.0
25.7
2.5
81.6
82.5
236.5
6
6.7
68.0
67.5
119.0
9
4.2
50.1
49.3
75.7
11
3.6
49.0
47.9
76.4
17
3.1
50.1
47.9
78.4
17
3.4
56.9
53.2
91.5
18
3.9
69.8
64.9
118.7
16
4.7
0.0
0.0
0.0
0.0
0.1
0.1
0.1
Cash Flow Statement
Y/E March
OP/(loss) before Tax
Depreciation
Int./Div. Received
Interest Paid
Direct Taxes Paid
(Incr)/Decr in WC
CF from Operations
2015
7,804
750
97
-264
-2,055
49
6,382
-2,994
3,388
0
135
-2,859
0
0
-3,388
-460
-3,848
-325
2,870
2,545
2016
8,666
1,114
-264
-261
-2,524
156
6,887
-2,713
4,175
70
12
-2,631
0
0
-2,987
-928
-3,915
342
2,545
2,887
2017
8,514
1,332
34
-297
-3,014
311
6,880
-3,212
3,668
0
-205
-3,418
0
0
-2,717
-689
-3,406
56
2,887
2,943
2018
9,947
1,565
81
-290
-3,474
-889
6,940
-2,087
4,853
0
564
-1,523
0
0
-2,986
-812
-3,798
1,619
2,943
4,562
2019
11,121
1,592
-377
25
-3,717
330
8,974
-2,442
6,532
0
668
-1,775
0
777
-7,757
-787
-7,767
-568
4,562
3,994
2020E
12,011
1,749
-329
80
-3,964
1,057
10,605
-1,500
9,105
0
981
-519
0
0
-8,681
-732
-9,413
672
3,994
4,666
(INR M)
2021E
13,852
1,849
-327
80
-4,570
-299
10,585
-1,000
9,585
0
978
-22
(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
0
0
-10,358
-732
-11,090
-526
4,666
4,140
18 July 2019
5
 Motilal Oswal Financial Services
Colgate
Corporate profile
Company description
Exhibit 1: Sensex rebased
Colgate-Palmolive India (CLGT) is the market leader
in the toothpaste segment, with a share of ~52.5%.
Oral Care is one of the most under-penetrated
segments of the FMCG market, with ~81% of sales
from toothpastes. CLGT has presence in
toothbrushes and mouthwash, and Personal Care
products like body wash.
Source: MOFSL/Bloomberg
Exhibit 2: Shareholding pattern (%)
Mar-19
Promoter
DII
FII
Others
51.0
10.4
15.4
23.3
Dec-18
51.0
12.1
13.9
23.0
Mar-18
51.0
14.2
12.7
22.1
Source: Capitaline
Exhibit 3: Top holders
Holder Name
Life Insurance Corporation Of India
SBI Magnum Global Fund
First State Investments Icvc- Stewart Global
emerging markets leaders fund
Nps Trust- A/C Uti Retirement Solutions
Pension Fund Scheme - State Govt
% Holding
3.5
2.1
1.2
1.1
Note: FII Includes depository receipts
Source: Capitaline
Exhibit 4: Top management
Name
R A Shah
I Bachaalani
M S Jacob
M Chandrasekar
K Randhir Singh
Designation
Vice Chairman
Managing Director
Whole Time Director & CFO
Whole-time Director
Company Secretary
Exhibit 5: Directors
Name
Indu Shahani
V S Mehta
Name
Shyamala Gopinath
Source: Capitaline
*Independent
Exhibit 6: Auditors
Name
S N Ananthasubramanian & Co
SRBC & Co LLP
Type
Secretarial Audit
Statutory
Exhibit 7: MOFSL forecast v/s consensus
EPS
(INR)
FY20
FY21
MOFSL
forecast
29.6
34.1
Consensus
forecast
30.0
34.1
Variation (%)
-1.4
0.1
Source: Bloomberg
Source: Capitaline
18 July 2019
6
 Motilal Oswal Financial Services
Colgate
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
< - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within following 30
days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the Regulations,
is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial products. MOFSL is a subsidiary
company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are available on www.motilaloswal.com. MOFSL
(erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National Stock Exchange of
India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and National Commodity & Derivatives Exchange Limited (NCDEX) for its
stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member
of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance
products.
Details of associate entities of Motilal Oswal Financial Services Limited are available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and buy or sell
the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a
market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of
interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the
analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even though there might exist an inherent conflict of interest in
some of the stocks mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should be aware
that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant banking, investment
banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental research and
Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from MOFSL research activity
and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use
would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities
and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal
Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of research report in Hong Kong. This report
is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity to which this document relates is only available to
professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these securities, products and services in any jurisdiction where their offer
or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state
laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934
Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by
MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is intended for distribution only to "Major Institutional Investors" as
defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This document must not be acted on or relied on
by persons who are not major institutional investors. Any investment or investment activity to which this document relates is only available to major institutional investors and will be engaged in
only with major institutional investors. In reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and
interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a
chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be
executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered
broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading
securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets services
license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and Paragraph 11 of First
Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL in respect of any matter arising
from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”, of which some of whom may consist of
"accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the SFA”). Accordingly, if a Singapore person is not or ceases to be
such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and inform MOCMSPL.
Specific Disclosures
1 MOSL, 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 MOSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOSL, 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 MOSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOSL has not received any compensation or other benefits from third party in connection with the research report
10 MOSL has not engaged in market making activity for the subject company
********************************************************************************************************************************
The associates of MOFSL may have:
-
financial interest in the subject company
-
actual/beneficial ownership of 1% or more securities in the subject company
-
received compensation/other benefits from the subject company in the past 12 months
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 Motilal Oswal Financial Services
Colgate
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.
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