4 May 2020
4QFY20 Results Update | Sector: Consumer
Marico
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)
MRCO IN
1,290
367.2 / 4.9
404 / 234
-6/-1/-2
820
CMP: INR284
TP: INR350 (+23% )
Buy
Resilient portfolio; valuation comfort underpins Buy rating
Brief view on results and stock
Financials & Valuations (INR b)
Y/E March
2020 2021E 2022E
Sales
73.2 73.8 84.1
Sales Gr. (%)
-0.3
0.9 13.9
EBITDA
14.7 14.6 16.6
EBITDA Margin (%)
20.1 19.8 19.7
Adj. PAT
10.5 10.4 11.9
Adj. EPS (INR)
8.1
8.1
9.2
EPS Gr. (%)
13.4 -0.7 13.8
BV/Sh.(INR)
23.4 30.2 30.6
Ratios
RoE (%)
34.9 30.1 30.3
RoCE (%)
31.9 27.3 27.7
Payout (%)
96.0 94.8 95.4
Valuations
P/E (x)
34.9 35.1 30.9
P/BV (x)
12.1
9.4
9.3
EV/EBITDA (x)
24.7 24.1 21.3
Div. Yield (%)
2.7
2.7
3.1
Shareholding pattern (%)
As On
Dec-19 Sep-19
Promoter
59.6
59.6
DII
9.7
8.8
FII
23.9
25.0
Others
6.8
6.6
FII Includes depository receipts
Marico’s (MRCO) 4QFY20 sales were marginally below estimates on account
of the COVID-19 led lockdown headwinds. However, EBITDA and margins
were above estimates due to benign commodity costs and lower ad spends.
Further, lower-than-expected tax rate led to the PAT beat.
We believe that MRCO’s relatively resilient portfolio of products should
help it weather the impact on sales and earnings decline in FY21, unlike
several of its peers. Valuations appear attractive at 32x FY22E EPS, below
3/5/10-year average for a business that has better earnings visibility
compared to peers. Maintain
Buy.
4QFY20 consol. net sales declined 7% YoY
to INR15b (v/s est. INR15.4b).
Overall volume declined 4% YoY while EBITDA decreased 4.1% YoY to
INR2.8b (v/s est. INR2.7b). PBT declined 3% YoY to INR2.6b (in-line). Adj.
PAT declined 3.3% YoY to INR2b (v/s est. INR1.8b).
4QFY20 consol. gross margins expanded by 20bp YoY
to 49.3%. EBITDA
margin expanded 60bp YoY to 18.9% (v/s est. 17.4%) during the quarter.
4QFY20 standalone sales/EBITDA/adj. PAT declined 7.9%/4%/5.8% YoY.
EBITDA margins expanded 80bp YoY to 18.4%. Domestic volume declined
3% (in-line).
FY20 consol. sales/EBITDA/PAT growth stood at -0.3%/+10.9%/+13.4% YoY.
Domestic segmental performance:
Volume growth of Parachute Rigid/
Saffola (Refined Edible Oil)/ VAHO stood at -8%/+25%/-11% with value
growth at -12%/+25%/-18% YoY.
Primary volumes were expected in mid-single-digit if not for the COVID-19
impact.
Parachute
volumes had recovered in 4QFY20 (before the COVID-19
impact) compared to the previous two quarters.
90-95% of MRCO’s portfolio gained market share displaying resilience.
MRCO has recently attained 70-80% of normal working level (operations in
plants) after being severely impacted in the second half of Mar’20.
MRCO has a more resilient portfolio of products than its peers to withstand
the COVID-19 led sales and earnings decline in FY21. This is possible on
account of (a) recovery in
Parachute
volumes before the COVID-19 impact,
(b) successful turnaround and strong growth witnessed in
Saffola
edible oils
and foods, and (c) better outlook for the international business compared
to peers. Further, outlook on material costs is also better than the earlier
expectation of a possible inflation.
Longer-term growth trajectory and eventual rerating would be determined
by the success of its new products (an area with limited success for now).
Nevertheless, valuations appear attractive at 32x FY22E EPS, below 3/5/10-
year average of 44.9x/43x/35.5x, for a business that has better earnings
visibility compared to peers. Maintain
Buy
with TP of INR350.
Small miss on topline, EBITDA and Profits ahead of expectations
Highlights from management commentary
Dec-18
59.7
6.0
26.5
7.8
Valuation and view
Krishnan Sambamoorthy – Research analyst
(Krishnan.Sambamoorthy@MotilalOswal.com); +91 22 6129 1545
Research analyst: Pooja Doshi
(Pooja.Doshi@MotilalOswal.com); +91 22 6129 1573 |
Dhairya Dhruv
(Dhairya.Dhruv@motilaloswal.com); +91 22 6129 1547
Investors are advised to refer through important disclosures made at the last page of the Research Report.
3 September 2019
1
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
Marico
Quarterly Performance
Y/E March
Domestic volume growth (%)
Net Sales
YoY Change (%)
Gross Profit
Gross margin (%)
EBITDA
Margins (%)
YoY Change (%)
Depreciation
Interest
Other Income
PBT
Tax
Rate (%)
Adjusted PAT
YoY Change (%)
E: MOFSL Estimates
1Q
12.4
20,270
20.5
8,570
42.3
3,660
18.1
12.6
310
90
240
3,500
910
26.0
2,550
9.9
FY19
2Q
3Q
4Q
6.0
5.0
8.0
18,370 18,610 16,090
19.6
14.6
8.7
8,090 8,610 7,890
44.0
46.3
49.0
3,050 3,590 2,940
16.6
19.3
18.3
17.7
19.1
16.5
310
310
390
100
90
120
290
220
280
2,930 3,410 2,710
780
900
550
26.6
26.4
20.3
2,120 2,460 2,110
16.8
11.6
16.9
1Q
6.0
21,660
6.9
10,290
47.5
4,610
21.3
26.0
350
120
280
4,420
1,080
24.4
3,270
28.2
FY20
FY19 FY20E
2Q
3Q
4Q
1.0
-1.0
-3.0
8.0
0.8
18,290 18,240 14,960 73,340 73,150
-0.4
-2.0
-7.0
16.0
-0.3
9,080 8,960 7,370 33,170 35,700
49.6
49.1
49.3
45.2
48.8
3,530 3,730 2,820 13,250 14,690
19.3
20.4
18.9
18.1
20.1
15.7
3.9
-4.1
16.5
10.9
350
320
380 1,310 1,400
130
120
130
400
500
350
290
320 1,030 1,240
3,400 3,580 2,630 12,570 14,030
880
820
530 3,130 3,310
25.9
22.9
20.2
24.9
23.6
2,470 2,720 2,040 9,260 10,500
16.5
10.6
-3.3
13.7
13.4
(INR Million)
FY20
Var.
4QE
(%)
-3.0
15,391
-2.8%
-4.3
7,396
48.1
2,675
5.4%
17.4
-5.5
312
102
306
2,567
2.5%
735
28.7
1,751
16.5%
-17.8
Key Performance Indicators
Y/E March
Volume growth (%)
Parachute rigid
Saffola (Refined Edible Oil)
VAHO
Domestic
International
Overall
Value growth (%)
Parachute rigid
Saffola (Refined Edible Oil)
VAHO
Domestic
International
International cc
Overall
2Y average growth (%)
Sales
EBITDA
PAT
% of Sales
COGS
Operating Expenses
Depreciation
YoY change (%)
COGS
Operating Expenses
Other Income
EBIT
E: MOFSL Estimates
1Q
9.0
10.0
15.0
12.4
3.0
10.4
38.0
9.0
12.0
23.0
9.0
7.0
20.5
8.3
-0.2
-1.7
57.7
24.2
1.5
33.4
2.5
8.4
10.2
FY19
2Q
8.0
5.0
5.0
6.0
8.0
6.0
32.0
9.0
12.0
20.0
18.0
11.0
19.6
13.1
10.1
8.7
56.0
27.4
1.7
26.1
9.1
35.3
16.3
3Q
9.0
2.0
7.0
5.0
9.0
6.0
19.0
8.0
19.0
13.0
21.0
11.0
14.7
14.8
14.8
13.3
53.7
27.0
1.7
15.5
9.8
21.1
17.1
4Q
6.0
18.0
1.0
8.0
8.0
8.0
4.0
15.0
7.0
7.0
14.0
7.0
8.5
10.6
7.0
11.3
51.0
30.8
2.4
3.8
13.0
22.4
11.3
1Q
9.0
3.0
7.0
6.0
6.0
6.0
8.0
6.0
11.0
6.0
9.0
7.0
6.7
13.7
19.3
19.1
52.5
26.2
1.6
-2.8
15.7
16.7
27.2
FY20
2Q
-1.0
1.0
0.0
1.0
10.0
3.0
-4.0
5.0
-6.0
-3.0
8.0
9.0
-0.6
9.6
16.7
16.7
50.4
30.3
1.9
-10.4
10.1
20.7
16.1
3Q
-2.0
11.0
-7.0
-1.0
12.5
2.0
-5.0
13.0
-17.0
-5.0
8.0
10.0
-2.2
6.3
11.5
11.1
50.9
28.7
1.8
-7.2
4.2
31.8
4.0
4Q
-8.0
25.0
-11.0
-3.0
-7.0
-4.0
-12.0
25.0
-18.0
-8.0
-5.0
-6.0
-7.3
0.8
6.2
6.8
50.7
30.4
2.5
-7.4
-8.1
14.3
-4.3
Lower A&P expenses as a percentage of sales (down 110bp YoY to 8.4%;
absolute A&P spends down 17.6% YoY) and staff cost (down 10bp YoY to 7.2%)
were partially offset by higher other expenses (up 80bp YoY to 14.8%). This led
to EBITDA margin expansion of 60bp YoY to 18.9%.
5 May 2020
2
 Motilal Oswal Financial Services
Marico
Exhibit 1: Overall volumes declined 4% while India business volumes declined 3% in 4QFY20
Marico India
Segment growth (%)
Parachute Rigid
Saffola (Refined Edible Oil)
Value added hair oils
Domestic Business
4QFY19
Volume
Value
6
4
18
15
1
7
8
7
1QFY20
Volume Value
9
8
3
6
7
11
6
6
2QFY20
Volume Value
(1)
(4)
1
5
0
(6)
1
(3)
3QFY20
4QFY20
Volume Value Volume Value
(2)
(5)
(8)
(12)
11
13
25
25
(7)
(17)
(11)
(18)
(1)
(5)
(3)
(8)
Source: Company, MOFSL
4QFY20 S/A sales declined 7.9% YoY,
EBITDA dropped 4% YoY while adj. PAT
decreased 5.8% YoY. EBITDA margin expanded 80bp YoY to 18.4%. Domestic
revenue declined ~8% YoY with volume decreasing 3% (in line with est. -3%).
Exhibit 3: Parachute rigid volumes declined 8%
Parachute rigid volume growth (%)
Exhibit 2: Domestic volumes declined 3% in 4QFY20
Domestic volume growth (%)
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 4: Saffola (Refined Edible Oil) volumes up 25%
Saffola (Refined Edible Oil) volume growth (%)
Exhibit 5: VAHO volumes declined 11%
VAHO volume growth (%)
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 6: Consolidated segmental details
Sales growth (%)
Domestic
International
Total
EBIT margins
Domestic EBIT margins
International EBIT margins
Total
4QFY18
11.7
12.7
11.9
20.7%
10.5%
18.5%
1QFY19
22.6
9.4
19.8
18.4%
20.1%
18.7%
2QFY19
19.9
18.4
19.6
17.1%
17.7%
17.2%
3QFY19
12.8
21.2
14.6
19.7%
19.1%
19.6%
4QFY19
7.2
14.2
8.7
19.4%
16.3%
18.6%
1QFY20
6.3
9.0
6.9
21.1%
24.4%
21.7%
2QFY20
(2.8)
8.3
(0.4)
19.2%
20.4%
19.5%
3QFY20
(4.8)
7.9
(2.0)
21.6%
19.1%
21.0%
4QFY20
(7.6)
(5.1)
(7.0)
20.8%
16.3%
19.7%
Source: Company, MOFSL
FY20 consol. sales/ EBITDA/ PAT growth stood at -0.3%/ +10.9%/ +13.4% YoY.
EBITDA margin expanded 200bp YoY to 20.1%.
3
5 May 2020
 Motilal Oswal Financial Services
Marico
On the consol. balance sheet front, for FY20, OCF increased 14.7% to INR12.2b
and FCF increased 12.3% YoY to INR10.3b v/s PBT growth of 11.6%.
Key highlights of Domestic business (77% of turnover in FY20)
The India business recorded volume decline of 3%, vastly affected by disruptions
in the last fortnight of Mar’20 due to the COVID-19 led lockdowns initially
enforced in some states and eventually all over the country. If not for this
disruption, the domestic business would have delivered low-to-mid single-digit
volume growth during the quarter.
The company witnessed some encouraging signs for demand in its core
portfolios until early-Mar’20, which sharply diminished as economic activity
progressively slowed and adherence to social distancing norms became
imperative. Stress in the personal care category heightened during this period.
In contrast, foods and allied categories, which were growing healthily earlier as
well, gained disproportionately as households stocked up these items in the
days leading to the lockdown.
Challenges for the traditional channel in rural and urban areas mounted during
the quarter, while Modern Trade (MT) and Ecommerce grew healthily and
gained higher salience in the India business.
Segmental
Parachute Rigids:
The brand declined 8% in volume terms in 4QFY20 (flat in
FY20).
Parachute
posted low-single digit volume growth in the first two months
of the quarter, as impending pricing corrections and consumer promotions hit
retail shelves at the beginning of the quarter. However, volumes declined in
Mar’20 owing to disruption in supply chain operations, which led to negligible
sales in the last week. Overall, volume market share of the Coconut Oil franchise
(includes
Nihar Naturals
and
Oil of Malabar)
expanded to 62% in 4QFY20.
Value Added Hair Oils:
VAHO was down 11% in volume terms in 4QFY20 (-2% in
FY20), as primary sales plummeted in the second half of Mar’20 with cessation
of sales in the last week. However, there was a modest decline in secondary
volumes during the quarter. The mid and premium segments of the category
continued to underperform. Despite the same, the franchise gained market
share in both volume/value terms to 35%/~26%.
In the medium term, MRCO aims to revive growth in this franchise by adopting a
three-pronged strategy, which includes (a) aggressive participation at the
pyramid’s bottom on the back of its leadership position, (b) accelerating growth
in the mid segment through pricing and brand renovation, and (c) aiming to gain
market share in the premium segments (where the company is relatively under-
represented) through innovations that offer higher order sensorial/functional
benefits and brand building.
Saffola
(refined edible oil):
Saffola
refined edible oils grew 25% in volume terms
in 4QFY20 on robust base (+9% in FY20). The brand maintained its healthy
growth run, topped up by households stocking up on food and essential items in
the early stages of the COVID-19 outbreak. While the brand posted healthy
growth in the traditional channel, higher salience in the new age channels of MT
and Ecommerce enabled it to further outperform through the quarter. Growth
was backed by significant media investments and in-store promoter programs.
4
5 May 2020
 Motilal Oswal Financial Services
Marico
Premium Hair Nourishment and Male Grooming
declined 19% and 9% in
volume terms, respectively, as discretionary personal care portfolios lost favor
during the lockdown.
Premium Hair Nourishment:
Despite the decline in 4QFY20,
Livon
Serum
posted high single-digit volume growth in FY20. While growth in bottle
packs was led by new age channels (MT and Ecommerce), the 2.5ml sachet
pack (priced at INR3) played its role as the key trial pack by expanding the
brand’s reach in General Trade.
Male grooming:
This declined during the quarter mainly due to near-zero
sales in the last fortnight of Mar’20. The franchise (ex-deos) grew 5% in
volume terms in FY20.
Outlook for Domestic business:
EBITDA margins are expected at 20% plus in the
India business over the medium term.
Parachute Rigids:
Volumes should grow in the range of 5-7% over the
medium term.
VAHO:
Company aims to revive volume growth in this franchise in the near
term.
Saffola:
Company
aims to sustain high single-digit volume growth over the
medium term.
Healthy Foods:
20% plus CAGR over the medium term.
Premium Hair Nourishment, Male Grooming and Skin Care:
Value growth
of 20% plus CAGR over the medium term. Though, in the near term, its
expectations remain soft.
Key highlights of International business (23% of turnover)
International business’ reported revenues declined 6% in constant currency (CC)
terms. MENA and South Africa posted sharp drops while Bangladesh and
Vietnam still ended in the green, given the relatively limited restrictions
imposed in these regions in Mar’20.
Bangladesh (49% of International business)
revenues grew 6% in CC terms
during the quarter despite the enforcement of a lockdown in the country in the
last week of Mar’20.
South East Asia – majorly Vietnam and Myanmar (26% of International
business)
saw sales growth of 5% in CC terms in 4QFY20.
Middle East and North Africa (12% of International business)
revenues declined
50% in CC terms in 4QFY20. The business has recovered in Apr’20 and MRCO
hopes that normalcy would return by end-1QFY21.
South Africa (7% of International business)
sales declined 26% in CC terms in
4QFY20 due to continued macro headwinds coupled with social distancing and
other restrictions that were enforced to contain the COVID-19 outbreak in the
region. The macros in the region remained weak. MRCO expects some revival in
this business over the medium term on the back of a pipeline of new products.
New Country Development & Exports (6% of the International Business)
generated revenues of nearly USD14m in FY20 with expansion in adjacent
markets such as Nepal and Bhutan, exports to diaspora and other markets. The
business grew 2% in CC terms during 4QFY20 (33% in FY20).
Outlook for International business:
Organic broad-based double-digit constant
currency growth with aim to maintain operating margins at 20% over the
medium term.
5 May 2020
5
 Motilal Oswal Financial Services
Marico
Bangladesh:
Company is confident of delivering double-digit CC growth in
this geography over the medium term. In FY21, however, the macro
headwinds may indicate a higher single-digit CC growth.
South East Asia:
Expect to deliver steady CC growth in this geography over
the medium term.
MENA:
Cautious about Egypt and would be aggressive on cost management.
South Africa:
In the context of macro headwinds in the region, MRCO
remains cautious on the near term outlook for the business.
New Country Development & Exports:
The company remains positive on
the future prospects of this business as it incubates new geographies to
expand its franchise.
Outlook for Consolidated business
While the company aspires to deliver 8-10% volume growth and 13-15%
revenue growth in the medium term, the near term is currently unpredictable.
Operating margin is expected to be maintained at 19%+ over the medium term.
Capex:
For FY21, it is likely to be ~INR 1.25-1.5b.
Other expense is likely to range between 11-13% of turnover in the medium
term.
Tax rate:
MAT credit as on 31
st
Mar’20 stood at ~INR1.33b and is expected to be
utilized by the company in the coming years. The company would continue to
recognize tax expense after availing exemptions/deductions as per the existing
provisions of the Income Tax Act and would not opt for the revised rate
structure.
Update on new launches
Personal care
– Driven by the heightened awareness for personal hygiene led by
COVID-19, MRCO launched hand washes and hand sanitizers across markets. It
launched
Mediker
Hand Sanitizer in the domestic market in Apr’20. Marico
Bangladesh launched
Mediker SafeLife
Hand Sanitizer and Hand Wash whereas
X-Men Go
Hand Sanitizer was launched in South East Asia markets.
Hygiene
– Launched
Veggie Clean,
a first-of-its-kind fruit and vegetable cleaner
across MT and Ecommerce channels in two SKUs - 200ml and 400ml for INR149
and INR289, respectively.
Conference Call Highlights
Holistic view
The Jan-Feb’20 period was better than the previous two quarters before
restricted movement and the subsequent national lockdown came into force.
Mid-single-digit primary terms would have been witnessed if not for the COVID-
19 impact.
Parachute
volumes had recovered before COVID-19 v/s the previous
two quarters.
90-95% of MRCO’s portfolio gained market share.
The company has recently attained 70-80% of normal working levels.
Saffola
is doing well amid resurgence of at-home cooking and rising health
awareness. This makes the company confident of double-digit growth in FY21.
Value for money for consumers and focus on
Gold
and
Total
ranges (have higher
realizations) are under focus. No panic buying was witnessed after the second
and third week of Mar’20 and yet
Saffola
is doing well.
6
5 May 2020
 Motilal Oswal Financial Services
Marico
Other than discretionary part of its portfolio, the core part is trending well in the
current quarter.
Expect
kirana
stores and Ecommerce sales to be much higher this year as they
provide quick and safe shopping experience. Premium personal care from
chemist outlets would also be more prevalent. DIY personal care brand usage
would also pick up in the absence of salons.
Stronger brands with better distribution networks are doing better in the ‘Red’
zones declared by the government.
Other Category highlights
Parachute
is well placed to gain share from smaller players that have working
capital pressures and weak access to distribution. Low unit packs (LUP) would be
the key growth driver. The brand is trusted and untouched by hand, which are
additional factors that would enable conversion.
VAHO - There has been a decline in the premium end of the market.
VAHO Aloe Vera and Dry Fruit oil are doing well among new products.
VAHO category has not witnessed decline in growth but there has been more of
down-trading.
As VAHO is crude linked, MRCO can pass on the savings in crude cost (due to
recent correction in crude price) to regain market share from the lower end by
providing value to customers.
VAHO – Non-sticky and premium segment is getting affected more by the
current COVID-19 led disruption. MRCO has disproportionately lower share in
this segment.
Youth portfolio remained weak in April as well.
Five factors that Marico would focus on in FY21
MRCO’s focus would be to realign its portfolio more toward nutrition and
hygiene.
MRCO is proactively looking at new last-mile options including direct sales
model (through tele-calling and mobile app), retail aggregators and initiatives
like saffolastores.in. It would scale up some of these channels eventually.
The company would be selective with ad-spends on core business and would
focus more on digital media.
Cost savings would be a key focus area for the company to deal with the current
challenging situation.
New millennial way of working would be accelerated in the post COVID-19 era.
Overseas business
Bangladesh and Vietnam (70% of overseas sales) did well. Outlook on both these
markets is good from FY21 perspective as well.
Bangladesh is likely to open up soon from the lockdown, which in itself was less
stringent than India. Skin care and baby care are doing well in addition to VAHO.
Non-Parachute is 30% of the portfolio and is likely to be 40% in two years.
Other points
For 4QFY20, ad-spends seem lower YoY due to higher NPD spends in the base
quarter with ad-spends on
Kaya, True Roots
and
Crème.
7
5 May 2020
 Motilal Oswal Financial Services
Marico
Work from Home is for only 3-4% of the population and rest of the workforce
would have to go to their workplaces post-lockdown. So it is unlikely that VAHO
would get impacted after the removal of the lockdown.
MRCO is supporting channel partners through lower inventory, selective credit,
COVID insurance for third-party employees, sanitization of their facilities and
using third-party transporters to help distributors.
Copra costs may be slightly deflationary in the short term.
MRCO is exploring all means for cost reduction but its first priority would be to
protect jobs.
In FY21, ad-spends could decline by 100bp and still share of voice (SOV) would
be higher. For the next 6 months, no shooting of advertisements is likely to
happen. Similarly, field sampling is also likely to be low for the next few months.
Extension of temporary credit to trade, higher proportion of MT toward the
year-end and increase in receivables from CSD channel led to an increase in
receivable days by 3 days. Control over inventory and higher payables offset this
growth, which meant that OCF at ~14.7% and FCF growth at 12.3% was ahead of
the ~11.6% increase in PBT.
Valuation and view
What has happened in the last 10 years?
In MRCO’s key categories like Coconut Oil and Value Added Hair Oil (VAHO), the
company reported healthy sales growth with volume growth in
Parachute
actually improving in recent years.
In Saffola Foods (oats), the company was able to establish and successfully grow
the Masala oats category.
Growth in
Saffola
- the edible oil brand, has tapered off in recent years, partly
due to strategic mistakes on pricing and partly owing to the company being
unable to cater to the recently emerged super-premium segment of the market.
Similarly, brands acquired from Paras/Reckitt i.e.
Livon, Set Wet
and
Zatak
have
not scaled up to the expectations despite high category growth potential.
Top line and earnings growth have nevertheless been healthy over the past 10
years with CAGR of ~11% for top line, 15% for EBITDA and 16% for PAT. While
growth has been healthy over the past five years, it has tapered off compared to
the past with sales/EBITDA/ PAT growth at ~5%/11%/~13%.
Our view on the stock
MRCO has a more resilient portfolio of products than its peers to withstand the
COVID-19 led sales and earnings decline in FY21. This is possible due to (a)
recovery in
Parachute
volumes before the COVID-19 impact, (b) successful
turnaround and strong growth witnessed in
Saffola
edible oils and foods, and (c)
better outlook for the international business compared to peers. Further,
outlook on material costs is also better than the earlier expectation of a possible
inflation. Longer-term growth trajectory and eventual rerating would be
determined by success of new products (an area in which success has been
limited for now). Nevertheless, valuations appear attractive at 32x FY22E EPS,
below 3-year/5-year/10-year average of 44.9x/43x/35.5x for a business that has
better earnings visibility compared to peers. Maintain
Buy
with a TP of INR350.
5 May 2020
8
 Motilal Oswal Financial Services
Marico
Exhibit 7: There is 1%/1.1% upgrade in our FY21/FY22E EPS
Old
Sales
EBITDA
PAT
FY21E
76,529
14,621
10,321
FY22E
87,162
16,619
11,737
FY21E
73,824
14,624
10,425
New
FY22E
84,070
16,596
11,869
FY21E
-3.5%
0.0%
1.0%
Change
FY22E
-3.5%
-0.1%
1.1%
Source: Company, MOFSL
Exhibit 8: Marico P/E (x)
65.0
50.0
35.0
20.0
5.0
35.4
26.9
22.4
P/E (x)
Min (x)
Avg (x)
+1SD
50.5
43.9
35.5
Max (x)
-1SD
Exhibit 9: Consumer sector P/E (x)
55.0
47.0
39.0
31.0
23.0
15.0
P/E (x)
Min (x)
Avg (x)
+1SD
40.2
34.5
28.9
23.6
39.2
Max (x)
-1SD
45.9
Source: Company, MOFSL
Source: Company, MOFSL
5 May 2020
9
 Motilal Oswal Financial Services
Marico
Financials and Valuations
Income Statement
Y/E March
Net Sales
Change (%)
COGS
Gross Profit
Margin (%)
Operating Expenses
EBITDA
Change (%)
Margin (%)
Depreciation
Int. and Fin. Charges
Other Income - Recurring
Profit before Taxes
Change (%)
Margin (%)
Current Tax (excl MAT Ent)
Deferred Tax
Tax Rate (%)
Minority Interest
Profit after Taxes
Change (%)
Margin (%)
Extraordinary items
Reported PAT
2016
60,173
5.0
30,887
29,286
48.7
18,773
10,514
20.8
17.5
949
206
933
10,292
27.2
17.1
2,503
551
29.7
-5
7,233
26.1
12.0
-5
7,228
2017
59,178
-1.7
28,472
30,706
51.9
19,113
11,593
10.3
19.6
903
166
973
11,497
11.7
19.4
2,922
455
29.4
-10
8,110
12.1
13.7
0
8,110
2018
63,220
6.8
33,720
29,500
46.7
18,130
11,370
-1.9
18.0
890
160
850
11,170
-2.8
17.7
2,840
60
26.0
-130
8,140
0.4
12.9
0
8,140
2019
73,340
16.0
40,170
33,170
45.2
19,920
13,250
16.5
18.1
1,310
400
1,030
12,570
12.5
17.1
3,310
-180
24.9
-180
9,260
13.8
12.6
1,880
11,140
2020
73,150
-0.3
37,450
35,700
48.8
21,010
14,690
10.9
20.1
1,400
500
1,240
14,030
11.6
19.2
3,470
-160
23.6
-220
10,500
13.4
14.4
-290
10,210
2021E
73,824
0.9
38,159
35,665
48.3
21,041
14,624
-0.4
19.8
1,474
581
1,656
14,226
1.4
19.3
3,509
71
25.2
-220
10,425
-0.7
14.1
0
10,425
(INR Million)
2022E
84,070
13.9
43,449
40,621
48.3
24,025
16,596
13.5
19.7
1,636
719
1,915
16,155
13.6
19.2
3,985
81
25.2
-220
11,869
13.8
14.1
0
11,869
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Minority Interest
Loans
Capital Employed
Gross Fixed Assets
Intangibles
Less: Accum. Depn.
Net Fixed Assets
Capital WIP
Goodwill
Investments
Curr. Assets, L&A
Inventory
Account Receivables
Cash and Bank Balance
Others
Curr. Liab. and Prov.
Current Liabilities
Accounts Payable
Provisions
Net Current Assets
Deferred Tax Liability
Application of Funds
E: MOFSL Estimates
2016
1,290
18,884
20,174
143
3,313
23,630
6,119
328
-917
5,531
367
4,974
5,439
16,852
9,256
2,521
3,171
1,904
9,953
8,395
6,690
1,558
6,899
421
23,630
2017
1,291
21,966
23,257
133
2,388
25,778
7,440
361
-1,749
6,053
112
4,795
6,082
19,191
12,534
2,470
2,360
1,828
10,329
9,040
6,966
1,289
8,862
-125
25,778
2018
1,290
24,140
25,430
120
3,090
28,640
8,120
600
-2,480
6,240
270
4,860
5,430
23,920
15,110
3,400
2,010
3,400
11,880
10,560
8,220
1,320
12,040
-200
28,640
2019
1,290
28,700
29,990
110
3,490
33,590
9,140
550
-3,250
6,440
450
5,030
4,500
29,120
14,110
5,170
5,520
4,320
13,710
12,260
9,440
1,450
15,410
1,760
33,590
2020
1,290
28,940
30,230
130
5,580
35,940
13,110
410
-4,650
8,870
580
5,380
7,040
26,560
13,800
5,390
2,790
4,580
14,020
12,690
9,780
1,330
12,540
1,530
35,940
2021E
1,290
37,660
38,950
130
6,030
45,110
11,790
605
-6,124
6,271
580
5,480
13,000
34,620
15,503
6,275
7,163
5,678
14,841
13,342
10,176
1,499
19,779
0
45,110
(INR Million)
2022E
1,290
38,209
39,499
130
6,480
46,109
13,090
605
-7,760
5,935
580
5,580
12,000
38,395
17,318
6,726
7,768
6,583
16,382
14,752
11,334
1,630
22,014
0
46,109
5 May 2020
10
 Motilal Oswal Financial Services
Marico
Financials and Valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout %
Valuation (x)
P/E
Cash P/E
EV/Sales
EV/EBITDA
P/BV
Dividend Yield (%)
Return Ratios (%)
RoE
RoCE
RoIC
Leverage Ratio
Debt/Equity (x)
2016
5.6
6.3
15.6
3.5
62.4
50.6
44.8
6.0
34.3
18.2
1.2
37.7
31.9
41.5
0.2
2017
6.3
6.8
18.0
4.3
67.6
45.2
41.5
6.1
31.1
15.8
1.5
37.3
33.3
47.4
0.1
2018
6.3
7.0
19.7
4.6
72.4
45.0
40.6
5.7
31.8
14.4
1.6
33.4
30.8
40.7
0.1
2019
7.2
9.7
23.2
6.6
76.3
39.6
29.4
4.9
27.2
12.2
2.3
33.4
31.3
40.7
0.1
2020
8.1
9.0
23.4
7.6
96.0
34.9
31.6
5.0
24.7
12.1
2.7
34.9
31.9
41.7
0.2
2021E
8.1
9.2
30.2
7.7
94.8
35.1
30.8
4.8
24.1
9.4
2.7
30.1
27.3
39.4
0.2
2022E
9.2
10.5
30.6
8.8
95.4
30.9
27.1
4.2
21.3
9.3
3.1
30.3
27.7
44.7
0.2
Cash Flow Statement
Y/E March
OP/(loss) before Tax
Int./Div. Received
Depreciation
Interest Paid
Direct Taxes Paid
(Incr)/Decr in WC
CF from Operations
(Incr)/Decr in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Invest.
Issue of Shares
(Incr)/Decr in Debt
Dividend Paid
Others
CF from Fin. Activity
Incr/Decr of Cash
Add: Opening Balance
Closing Balance
E: MOFSL Estimates
2016
10,287
-594
949
206
-2,474
-197
8,176
-864
7,312
-1,180
1,000
-1,044
5
0
-5,023
-992
-6,010
1,122
2,049
3,171
2017
11,487
-43
903
-197
-2,964
-2,698
6,487
-815
5,673
15
-760
-1,560
0
0
-5,088
-652
-5,740
-812
3,171
2,360
2018
11,170
-280
890
-180
-2,950
-3,490
5,160
-1,280
3,880
700
740
160
0
0
-6,360
690
-5,670
-350
2,360
2,010
2019
12,630
320
960
-300
-3,200
210
10,620
-1,430
9,190
1,030
-180
-580
0
0
-6,820
290
-6,530
3,510
2,010
5,520
2020
13,740
-1,000
1,500
500
-2,890
330
12,180
-1,860
10,320
-2,540
-4,125
-8,525
0
2,090
-8,495
20
-6,385
-2,730
5,520
2,790
2021E
14,226
-1,656
1,474
581
-3,509
-2,865
8,249
1,125
9,374
-5,960
10,368
5,533
0
450
-9,799
-61
-9,409
4,373
2,790
7,163
(INR Million)
2022E
16,155
-1,915
1,636
719
-3,985
-1,630
10,980
-1,300
9,680
1,000
-439
-739
0
450
-9,886
-199
-9,635
606
7,163
7,768
5 May 2020
11
 Motilal Oswal Financial Services
Marico
NOTES
5 May 2020
12
 Motilal Oswal Financial Services
Marico
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
********************************************************************************************************************************
5 May 2020
13
 Motilal Oswal Financial Services
Marico
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.
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