4 August 2017
1QFY18 Results Update | Sector: Consumer
Dabur
Neutral
BSE SENSEX
32,325
S&P CNX
10,066
CMP: INR308
TP: INR315(+2%)
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In-line revenue performance; International remains under pressure
Dabur’s (DABUR) 1QFY18 consol. sales declined 8.3% YoY to INR17.9b
(est. of
-6.0%). EBITDA fell by 11.4% YoY to INR 3.1b (est. -13.9%) and adj. PAT by 4.8%
YoY to INR2.8b (est. -12.3%).
Domestic FMCG business’ primary sales declined 5% YoY
(secondary sales
+2%), led by volumes decline of 4.4% YoY (est. of -5%). Hair care, Foods and
Health supplements declined 11.1%, 8.3% and 7.2% YoY, respectively, while
Oral care, Digestives, Home care and Skin care grew 1.4%, 3.8%, 6.1% and 4%
YoY, respectively. In Oral care, Toothpaste grew 10.4% YoY, but Toothpowder
dragged the performance. International sales fell 14.9% YoY (-2% on CC basis)
due to continued economic slowdown in MENA and currency devaluation.
Consol. EBITDA margin shrunk 60bp YoY to 17.3%,
mainly on lower gross
margin (-180bp YoY to 48.9%) and higher staff cost (+50bp to 11.4%), partially
offset by lower adspend (-170bp to 8.4%) and other expenses (-10bp).
Concall highlights:
a) Maintained full-year volume growth target. b) May not
see reduction in full-year margins if competitors are not too disruptive on
promotions. Expect promotions in beverages, though. c) Price hikes likely in 2H.
Valuation and view:
New launches in the science-based Ayurveda space in
FY18, potential recovery in rural consumption and recent investments behind
distribution expansion should aid medium-term growth. The stock is fairly
valued at 33.6x FY19E EPS. Maintain
Neutral
with a target price of INR315
(valued at 33x June’19 EPS, 10% discount to three-year average P/E).
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, INRm
Free float (%)
DABUR IN
1756.5
540.3 / 8.5
313 / 259
1/0/-13
464
32.0
Financials & Valuations (INR b)
2017 2018E
Y/E Mar
77.0
82.6
Net Sales
15.1
15.7
EBITDA
12.8
13.6
NP
7.2
7.7
EPS (INR)
1.9
6.7
EPS Gr. (%)
27.5
32.1
BV/Sh. (INR)
28.4
26.0
RoE (%)
24.6
22.6
RoCE (%)
42.4
39.8
P/E (x)
11.2
9.6
P/BV (x)
2019E
93.5
18.3
16.1
9.1
18.3
37.5
26.3
23.3
33.6
8.2
Estimate change
TP change
Rating change
Krishnan Sambamoorthy – Research Analyst
(Krishnan.Sambamoorthy@MotilalOswal.com); +91 22 3982 5428
Vishal Punmiya – Research Analyst
(Vishal.Punmiya@MotilalOswal.com); +91 22 3980 4261
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Dabur
Key Quarterly Charts
Exhibit 1: Domestic FMCG business volumes declined 4.4% YoY%
9.0
10.7
Volume growth (%)
9.0
9.2
8.3
8.7
7.4
8.1
8.1
5.5
7.0
4.1
4.5
2.4
(4.4)
(5.0)
(2.5)
Source: Company, MOSL
Exhibit 2: Category-wise performance
Category Growth (%)
Hair Care
Health Supplements
Oral Care
Foods
Digestives
Skin care
Home Care
OTC & Ethicals
IBD (organic)
1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18
8.5
21.6
7.9
20.5
11.3
4.4
14.8
4.3
12.4
13.9
10.2
8.1
29.0
12.4
9.7
10.2
7.5
17.5
12.1
13.5
11.3
11.8
11.6
4.0
16.2
8.8
16.0
7.4
13.0
11.6
19.6
11.0
16.6
12.1
7.7
16.5
12.7
1.2
17.5
15.5
1.7
5.2
12.0
16.7
10.3
9.4
9.0
18.7
2.4
1.5
2.2
12.4
10.7
9.5
-0.6
-7.1
10.5
-23.6
-2.4
9.6
8.4
7.5
10.7
5.9
1.8
18.4
11.7
6.5
-2.2
19.3
7.0
15.7
-3.3
-1.1
11.6
4.3
-5.6
-3.2
2.2
-10.1
5.9
-4.6
-5.6
0.8
15.2
-3.4
6.6
19.9
-0.7
-2.3
-22.8
-14.4
-5.1
52.2
-10.7
-11.4
-5.2
-11.7
-6.2
-4.2
5.0
3.6
7.9
-5.1
-0.6
-6.4
-4.0
-18.0
-11.1
-7.2
1.4
-8.3
3.8
4.0
6.1
-6.6
-14.9
Source: Company, MOSL
Exhibit 3: Consol. EBITDA margin contracted 60bp YoY to
17.3%, mainly due to gross margin contraction of 180bp YoY
to 48.9%...
Gross Margin (%)
EBITDA Margins (%)
Exhibit 4: …while 170bp decline in adspend to sales partially
offset gross margin contraction
A&P to sales (%)
15.4 15.2
15.4
15.4
13.6
13.2
13.0
12.9
11.8
8.5
11.4
7.8
10.1
7.6
9.6
6.4
8.4
Source: Company, MOSL
Source: Company, MOSL
4 August 2017
2

Dabur
Key takeaways from concall
Domestic sales declined 5% in value. International business declined faster.
Wholesale channel still recovering. Nowhere near normal yet. Full compliance
will lead to “emergence of skeletons from their cupboards”.
July still saw effect on CSD. Amla and honey have high salience in CSD. Juice and
Chyawanprash are next in line in terms of salience. Overall 5-6% CSD
proportion.
Modern trade was up 5.8% YoY. Modern trade as % of sales is now at 15%.
Excise benefits no longer available under GST are ~INR600m, but are offset by
input credit.
Direct reach 950,000 now. Will end the year at 1m outlets. Will keep increasing
gradually until cost of increase is prohibitive.
Toothpaste did very well posting 10% growth. Market share now at 18%. In
process of launching White Ayurvedic paste, perhaps in 3QY18. Will also re-
launch Babool as they believe that there is a lot of hidden development.
Toothpowder category declined 30-35% being entirely wholesale dependent.
Usually flat to 10% decline in sales.
Hair Care saw adverse impact of destocking.
Juices were affected by heavy rains in North and Central India. Category is also
witnessing a lot of promotion.
Coconut water had supply constraint, which has been resolved.
Odomos can grow at a healthy pace. Was among the best performers in 1QFY18.
Namaste North America will continue to decline, but Sub Saharan Africa and
South Africa should do well. Believe Africa will be as large as America in 2-3
years.
Buy one get one may not work as input credit may not be available on the free
part.
Gross margins were down because of higher promotion and currency
headwinds.
Exceptional item of INR145m was on account of GST transition impact
(reimbursement of losses to dealers).
6% shrinkage in India revenue because of higher GST rates. VAT of 6% will also
be deducted along with excise of 9% earlier.
International advertisement declined because of Ramadan in June. Domestic
A&P actually grew by 8%.
Brands/ categories
Financials
Guidance
4 August 2017
Maintained full-year volume growth target.
May not see reduction in full-year margins if competition is not too disruptive
on promotions. Expect promotions in beverages, though.
Price increase likely in second half.
Gross margins may increase by 200bp for the rest of year owing to subdued RM
costs, but adspend and salaries are expected to go up.
Capex guidance at INR3.5b.
18 days inventory at distributor level likely by end of the year.
3

Dabur
Valuation and view
New launches in the science-based Ayurveda space in FY18, potential recovery
in rural consumption and recent investments behind distribution expansion
should aid medium term growth.
Stock is fairly valued at 33.6x FY19E EPS. Maintain
Neutral
with a target price of
INR315 (valued at 33x June’19 EPS, 10% discount to three-year average P/E).
Exhibit 6:
Dabur P/E premium v/s Sensex
Exhibit 5:
Dabur P/E (x)
48.0
40.0
32.0
24.0
16.0
8.0
27.7
28.5
15.2
PE (x)
Median(x)
Peak(x)
Min(x)
Avg(x)
41.8
36.1
170
120
70
20
-30
Dabur PE Relative to Sensex PE (%)
LPA (%)
65.0
93.6
Source: Company, MOSL
Source: Company, MOSL
Exhibit 7: Valuation Matrix
Company
Reco
CMP
(INR)
1,157
3,913
1,074
308
1,151
961
5,447
1,192
281
383
325
6,697
8,133
16,368
253
808
814
2,592
1,279
610
Target Price
(INR)
1,200
4,450
1,285
315
1,310
995
4,500
1,285
280
405
355
5,740
9,082
19,125
240
810
850
2,525
850
565
Mkt Cap
EPS Growth YoY (%)
FY18E
5.6
16.0
15.2
6.7
1.4
14.0
6.5
FY19E
19.5
23.5
21.7
18.3
23.1
14.6
9.3
19.2
11.4
22.4
20.9
16.2
16.6
26.2
64.7
14.0
51.9
49.3
40.0
18.2
FY17
55.0
53.1
50.6
42.4
43.4
50.8
34.9
60.7
33.4
34.1
51.7
56.8
56.1
68.6
70.3
48.3
93.6
97.0
127.8
67.6
P/E (x)
FY18E
52.1
45.8
43.9
39.8
42.8
44.6
32.7
51.9
30.3
42.8
47.7
58.2
52.2
51.6
34.1
44.8
83.9
75.1
86.4
57.5
FY19E
43.6
37.1
36.1
33.6
34.8
38.9
29.9
43.6
27.2
35.0
39.5
50.1
44.8
40.9
20.7
39.3
55.2
50.3
61.7
48.6
Upside
(INR B) (USD B) FY17
(%)
4
14
20
2
14
4
-17
8
0
6
9
-14
12
17
-5
0
4
-3
-34
-7
1,100
464
295
538
258
660
227
2,531
3,418
71
423
649
260
183
21
413
212
380
83
495
17.3
7.3
4.6
8.5
4.0
10.4
3.6
39.8
53.7
1.1
6.6
10.2
4.1
2.9
0.3
6.5
3.3
6.0
1.3
7.8
8.7
7.3
-5.7
1.9
4.5
12.4
0.9
RoE
(%)
FY17
28.5
36.9
50.4
28.4
35.8
24.6
22.2
65.6
23.5
21.1
36.7
39.0
45.3
40.0
5.9
28.2
10.4
21.3
8.2
20.6
Div.
(%)
FY17
0.8
0.0
0.9
0.8
0.8
0.6
1.0
1.4
2.0
1.6
0.9
0.9
4.5
0.5
0.0
0.6
0.1
0.0
0.2
0.4
Consumer
Asian Paints
Neutral
Britannia Inds.
Buy
Colgate-Palm.
Buy
Dabur India
Neutral
Emami
Buy
Godrej Cons.
Neutral
GlaxoSmith C H L
Sell
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
Buy
Neutral
Neutral
Neutral
Sell
Buy
Buy
Neutral
Neutral
Neutral
Neutral
Sell
Neutral
1.9
16.8
9.4
10.4
175.7 -20.4
12.1
8.5
-1.6
-2.5
11.5
7.5
15.0
32.8
-46.4 106.4
6.7
7.9
-23.0 11.6
87.1
29.1
-32.1
18.5
48.0
17.6
Source: Company, MOSL
4 August 2017
4

Dabur
Financials and Valuations
Income Statement
Y/E March
Net Sales
Change (%)
Total Expenditure
EBITDA
Change (%)
Margin (%)
Depreciation
Int. and Fin. Charges
Other Income - Recurring
Profit before Taxes
Change (%)
Margin (%)
Tax
Tax Rate (%)
Profit after Taxes
Change (%)
Margin (%)
Minority Interest
Adjusted PAT
Reported PAT
2015
78,065
10.7
65,108
12,957
13.8
16.6
1,150
401
1,788
13,194
16.1
16.9
2,347
19.0
10,685
16.5
13.7
26
10,658
10,658
2016
78,688
0.8
63,505
15,183
17.2
19.3
1,332
485
2,172
15,538
17.8
19.7
2,840
19.3
12,539
17.4
15.9
28
12,512
12,512
2017
77,014
-2.1
61,925
15,089
-0.6
19.6
1,429
540
2,984
16,104
3.6
20.9
3,110
20.5
12,801
2.1
16.6
31
12,769
12,769
2018E
82,608
7.3
66,950
15,658
3.8
19.0
1,539
526
3,431
17,024
5.7
20.6
3,269
19.8
13,653
6.7
16.5
30
13,623
13,623
2019E
93,543
13.2
75,245
18,298
16.9
19.6
1,590
523
3,946
20,131
18.2
21.5
3,865
19.8
16,145
18.2
17.3
35
16,110
16,110
(INR Million)
2020E
106,008
13.3
84,791
21,217
16.0
20.0
1,641
495
4,538
23,619
17.3
22.3
4,535
19.8
18,942
17.3
17.9
41
18,901
18,901
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Minority Interest
Loans
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.
Current Libilities
Provisions
Net Current Assets
Deferred Tax Liability
Application of Funds
E: MOSL Estimates
2015
1,757
31,785
33,541
182
9,608
43,331
25,409
-6,638
18,771
503
18,134
18,120
13
23,655
9,733
7,108
2,760
4,053
17,144
14,122
3,022
6,511
-587
43,331
2016
1,759
39,842
41,601
217
8,043
49,860
27,802
-8,304
19,499
448
25,239
25,225
13
26,020
10,965
8,097
2,204
4,754
20,579
16,739
3,841
5,440
-765
49,860
2017
1,762
46,712
48,473
248
9,115
57,837
29,802
-9,732
20,070
421
32,402
32,402
0
25,886
11,071
6,510
3,009
5,296
20,177
16,313
3,864
5,709
-765
57,837
2018E
1,762
54,756
56,518
278
10,000
66,796
30,802
-11,271
19,531
421
35,642
35,642
0
32,250
11,711
8,801
5,835
5,903
20,283
16,176
4,107
11,967
-765
66,796
2019E
1,762
64,269
66,030
313
9,000
75,344
31,802
-12,862
18,941
421
39,206
39,206
0
40,696
13,299
10,089
10,706
6,602
23,155
18,412
4,742
17,542
-765
75,344
(INR Million)
2020E
1,762
75,430
77,191
355
9,000
86,546
32,802
-14,503
18,300
421
43,127
43,127
0
51,893
15,114
11,576
17,808
7,394
26,429
20,976
5,453
25,464
-765
86,546
4 August 2017
5

Dabur
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
6.1
6.7
19.1
2.2
37.0
2016
7.1
7.9
23.6
2.0
28.0
2017
7.2
8.1
27.5
2.5
35.0
2018E
7.7
8.6
32.1
2.7
35.0
2019E
9.1
10.0
37.5
3.2
35.0
2020E
10.7
11.7
43.8
3.8
35.0
50.7
45.8
6.8
40.8
16.1
0.7
43.2
39.1
6.6
34.4
13.0
0.6
42.4
38.2
6.7
34.2
11.2
0.8
39.8
35.7
6.2
32.6
9.6
0.9
33.6
30.6
5.4
27.4
8.2
1.0
28.7
26.4
4.6
23.1
7.0
1.2
35.5
27.7
45.5
33
1.8
33.3
27.7
50.9
38
1.6
28.4
24.6
49.4
31
1.3
26.0
22.6
48.3
39
1.2
26.3
23.3
53.7
39
1.2
26.4
23.9
62.5
40
1.2
0.3
0.2
0.2
0.2
0.1
0.1
Cash Flow Statement
Y/E March
OP/(loss) before Tax
Int./Div. Received
Depreciation & Amort.
Interest Paid
Direct Taxes Paid
(Incr)/Decr in WC
CF from Oper.
Extraordinary Items
(Incr)/Decr in FA
Free Cash Flow
(Pur)/Sale of Invt.
CF from Invest.
Issue of Shares
(Incr)/Decr in Debt
Dividend Paid
Others
CF from Fin. Act.
Incr/Decr of Cash
Add: Opening Bal.
Closing Balance
E: MOSL Estimates
2015
13,194
-1,788
1,150
401
-2,347
-917
9,694
0
-1,567
8,127
-7,369
-8,936
2
97
-3,948
658
-3,191
-2,433
5,194
2,761
2016
15,538
-2,172
1,332
485
-2,840
514
12,857
0
-2,338
10,519
-7,105
-9,443
2
-1,566
-3,506
1,100
-3,970
-556
2,760
2,204
2017
16,104
-2,984
1,429
540
-3,110
536
12,515
0
-1,973
10,542
-7,163
-9,136
2
1,073
-4,469
821
-2,573
806
2,204
3,010
2018E
17,024
-3,431
1,539
526
-3,269
-3,432
8,957
0
-1,000
7,957
-3,240
-4,240
2
885
-4,768
1,990
-1,892
2,826
3,009
5,835
2019E
20,131
-3,946
1,590
523
-3,865
-704
13,729
0
-1,000
12,729
-3,564
-4,564
2
-1,000
-5,638
2,342
-4,294
4,870
5,835
10,705
(INR Million)
2020E
23,619
-4,538
1,641
495
-4,535
-820
15,862
0
-1,000
14,862
-3,921
-4,921
2
0
-6,615
2,774
-3,839
7,102
10,706
17,808
4 August 2017
6

Dabur
Corporate profile
Company description
Dabur India is the second largest FMCG company in
India, in terms of Product portfolio. Dabur is a
market leader in Chyawanprash category and is
increasing its presence in other traditional categories
like Hair Care, oral care, household care and foods.
Dabur's acquisition of Fem Care given it a strategic
presence in the high potential skin care segment.
Source: MOSL/Bloomberg
Exhibit 1: Sensex rebased
Exhibit 2: Shareholding pattern (%)
Promoter
DII
FII
Others
Jun-17
68.1
8.2
17.7
6.1
Mar-17
68.0
5.8
20.0
6.2
Jun-16
68.0
5.5
19.9
6.7
Exhibit 3: Top holders
Holder Name
LIFE INSURANCE CORPORATION OF INDIA
FIRST STATE INVESTMENTS ICVC-STEWART
INVESTORS ASIA PACIFIC LEADERS FUND
BARCLAYS MERCHANT BANK(SINGAPORE)
LTD.
MATTHEWS PACIFIC TIGER FUND
Birla sun Life Trustee company Private
Limited AC Birla Sun Life Balanced 95 Fund
% Holding
4.1
1.2
1.2
1.2
1.0
Source: Capitaline
Note: FII Includes depository receipts
Source: Capitaline
Exhibit 4: Top management
Name
Anand Burman
Amit Burman
Sunil Duggal
A K Jain
Designation
Chairman
Vice Chairman
Executive Director
Company Secretary
Exhibit 5: Directors
Name
Ajay Dua*
P N Vijay*
S Narayan*
Sanjay K Bhattacharrya*
Falguni Nayar*
Name
Mohit Burman
R C Bhargava*
Saket Burman
P D Narang
Source: Capitaline
*Independent
Exhibit 6: Auditors
Name
G Basu & Co
Price Waterhouse & Co Bangalore
LLP
Ramanath Iyer & Co
Walker Chandiok & Co LLP
Type
Statutory
Internal
Cost Auditor
Statutory
Source: Capitaline
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY18
FY19
FY20
MOSL
forecast
7.7
9.1
10.7
Consensus
forecast
6.7
7.5
-
Variation (%)
14.9
21.3
-
Source: Bloomberg
4 August 2017
7

Disclosures:
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Securities Ltd. (MOSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOSL, the Research Entity (RE) as defined in the Regulations, is engaged in the business of providing Stock
broking services, Investment Advisory Services, Depository participant services & distribution of various financial products. MOSL is a subsidiary company of Motilal Oswal Financial Service Ltd. (MOFSL). MOFSL is a listed
public company, the details in respect of which are available on
www.motilaloswal.com.
MOSL is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National Stock
Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Metropolitan Stock Exchange Of India Ltd. (MSE) for its stock broking activities & is Depository participant with Central Depository Services Limited
(CDSL) & National Securities Depository Limited (NSDL) and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products. Details of associate entities of Motilal Oswal Securities Limited are
available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/Associate%20Details.pdf
Pending Regulatory Enquiries against Motilal Oswal Securities Limited by SEBI:
SEBI pursuant to a complaint from client Shri C.R. Mohanraj alleging unauthorized trading, issued a letter dated 29th April 2014 to MOSL notifying appointment of an Adjudicating Officer as per SEBI regulations to hold
inquiry and adjudge violation of SEBI Regulations; MOSL requested SEBI to provide all documents, records, investigation report relied upon by SEBI which were referred in Show Cause Notice and also sought personal
hearing. The matter is currently pending.
MOSL, it’s associates, Research Analyst or their relative may have any financial interest in the subject company. MOSL and/or its associates and/or Research Analyst may have beneficial ownership of 1% or more securities in
the subject company at the end of the month immediately preceding the date of publication of the Research Report.
MOSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a)
from time to time, have a long or short position in, act as principal in, and buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and
earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other
potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s),
as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOSL even though there might exist an inherent conflict of interest in some of the stocks mentioned in the
research report.
Research Analyst may have served as director/officer, etc. in the subject company in the last 12 month period. MOSL and/or its associates may have received any compensation from the subject company in
the past 12 months.
In the last 12 months period ending on the last day of the month immediately preceding the date of publication of this research report, MOSL or any of its associates may have:
a)
managed or co-managed public offering of securities from subject company of this research report,
b)
received compensation for investment banking or merchant banking or brokerage services from subject company of this research report,
c)
received compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company of this research report.
d)
Subject Company may have been a client of MOSL or its associates during twelve months preceding the date of distribution of the research report.
MOSL and it’s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report. To enhance transparency, MOSL has incorporated a Disclosure
of Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the report. MOSL and / or its affiliates do and seek to do business including investment banking with
companies covered in its research reports. As a result, the recipients of this report should be aware that MOSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research
Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.
Terms & Conditions:
This report has been prepared by MOSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and may not be altered in any way, transmitted to,
copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of MOSL. The report is based on the facts, figures and information that are considered
true, correct, reliable and accurate. The intent of this report is not recommendatory in nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not
been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice.
The report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments for the clients. Though
disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOSL will not treat recipients as customers by virtue of their receiving this report.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or
indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Dabur
Disclosure of Interest Statement
Analyst ownership of the stock
Dabur
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
trading desk of MOSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from MOSL research activity and therefore it can have an independent view with regards to
subject company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary to law,
regulation or which would subject MOSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities and Futures Commission (SFC)
pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with
Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any
investment or investment activity to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these securities,
products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research
Analysis in Hong Kong.
For U.S.
Motilal Oswal Securities Limited (MOSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition MOSL is
not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States.
Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by MOSL, including the products and services described herein are not available to or intended for U.S.
persons. This report is intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional
investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document relates is only available to major institutional
investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and
interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOSL has entered into a chaperoning agreement with a U.S.
registered broker-dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer, MOSIPL, and
therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research analyst account.
For Singapore
Motilal Oswal Capital Markets Singapore Pte Limited is acting as an exempt financial advisor under section 23(1)(f) of the Financial Advisers Act(FAA) read with regulation 17(1)(d) of the Financial Advisors Regulations and is a
subsidiary of Motilal Oswal Securities Limited in India. This research is distributed in Singapore by Motilal Oswal Capital Markets Singapore Pte Limited and it is only directed in Singapore to accredited investors, as defined in
the Financial Advisers Regulations and the Securities and Futures Act (Chapter 289), as amended from time to time. In respect of any matter arising from or in connection with the research you could contact the following
representatives of Motilal Oswal Capital Markets Singapore Pte Limited:
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person
or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose and may not be used or considered as an offer document or solicitation of
offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or
appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this document should make such investigations
as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult its own advisors to
determine the merits and risks of such an investment. The investment discussed or views expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative
products as well as non-investment grade securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of
the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as endorsement of the
views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make modifications and alternations to this statement as may be required from time to time
without any prior approval. MOSL, its associates, their directors and the employees may from time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities
mentioned in this document. They may perform or seek to perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities
functions as a separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already
available in publicly accessible media or developed through analysis of MOSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the views expressed therein. This document is
being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. This report is not
directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would
be contrary to law, regulation or which would subject MOSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to
certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. Neither the Firm, not its directors, employees, agents or
representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information.
The
person accessing this information specifically agrees to exempt MOSL or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOSL or any of its affiliates or
employees responsible for any such misuse and further agrees to hold MOSL or any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this
information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022-3980 4263; www.motilaloswal.com. Correspondence Address: Palm Spring
Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 3080 1000. Compliance Officer: Neeraj Agarwal, Email Id:
na@motilaloswal.com,
Contact No.:022-30801085.
Registration details of group entities.: MOSL: NSE (Cash): INB231041238; NSE (F&O): INF231041238; NSE (CD): INE231041238; BSE (Cash): INB011041257; BSE(F&O): INF011041257; BSE(CD); MSE(Cash): INB261041231;
MSE(F&O): INF261041231; MSE(CD): INE261041231; CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412. AMFI: ARN 17397. Investment Adviser: INA000007100. Motilal Oswal Asset
Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670) offers PMS and Mutual Funds products. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) offers wealth
management solutions. *Motilal Oswal Securities Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs, Insurance and IPO products. * Motilal Oswal Commodities Broker Pvt. Ltd. offers Commodities
Products. * Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. offers Real Estate products. * Motilal Oswal Private Equity Investment Advisors Pvt. Ltd. offers Private Equity products
4 August 2017
8