Dabur India (DIL) Witnessed Splendid Domestic Volume Growth of 16.8% Led by Immunity Boosting, Ayurveda & Naturals Product Portfolio

DaburTAT India (DABIND)

CMP: | 514 Target: | 595 (16%) Target Period: 12 months BUY

November 4, 2020 Strong tailwinds for health, ayurveda products… Dabur India (DIL) witnessed splendid domestic volume growth of 16.8% led by immunity boosting, ayurveda & naturals product portfolio. Consolidated

revenue grew 13.7% led by strong 17.9% growth in India business. International business saw muted growth on account of sluggish sales in Particulars MENA region. DIL is one of the biggest beneficiary of increased health awareness in a post-Covid world. Chyawanprash, Honey, OTC & Ethical Particular (| crore) Amount products, oral care witnessed robust growth during the quarter. It was also Market Capitalization 90,319.2 Total Debt (FY20) 471.8 able to leverage the e-commerce channel with 200% growth. E-commerce

Cash and Investments (FY20) 3,611.6 Update Result contributed 6% to sales. Given mixed trends in commodity prices, gross EV 87,179.4 margins stayed flat. However, cost rationalisation initiatives led to savings in 52 week H/L (|) 535 / 386 overhead & employee spends to sales by 163 bps & 30 bps, respectively. Equity capital 176.6 Contrary to the trend of low advertisement spend by other consumer Face value (|) 1.0 companies, the company increased ad spends by 40.2% (152 bps higher) to

support growth for newly launched products. Led by higher operating profit, Key Highlights net profit grew 19.6% to | 482.9 crore.  Health supplement growth of 70% & Robust demand in health, immunity products oral care growth of 24% pushed During the quarter, sales of health supplements, OTC, ethical saw 70.8%, overall domestic FMCG business 56.1% & 26.4% growth, respectively. Further, oral care & shampoo also growth of 19.8% witnessed 24.2% & 17.8% growth, respectively. The company continues to  The company increased its ad-spends strengthen its market share in Chyawanprash (190 bps increase), toothpaste by ~150 bps to drive growth of newly (90 bps increase) and shampoo (80 bps increase). We believe growth in launched products health & immunity products is far more structural compared to hygiene or instant food products. The penetration levels of Chyawanprash & honey is  Maintain BUY with revised target price ~4% & ~25%, respectively, which poses immense growth opportunity in of | 595/share

both these categories. We believe its entire ayurveda, health & immunity portfolio would drive growth for the company in the next two to three years. Price Chart

We expect 10.1% CAGR revenue growth for FY20-23E. Research Equity 600 14000 New products to get marketing support 500 12000 10000 DIL has launched many new products, variants in the last six months across 400 Retail 8000 categories. Savings from cost rationalisation measures would be pumped in 300 – 6000 for higher ad-spends to drive growth for new products. The company is 200 4000 looking to increase marketing spend from current 8% to 12% of sales in 100 2000 medium term. It is also utilising e-commerce channel effectively to launch 0 0

new products for test marketing. We believe despite rising ad-spends,

Sep-17 Sep-18 Sep-20 Sep-19

Mar-19 Mar-20 benign raw material cost (largely packaging cost) & cost rationalisation Mar-18 measures would be sufficient for uptick in operating margins in future. We

expect 100 bps operating margin expansion in FY20-23E to 21.6% Dabur NIFTY Securities ICICI

Valuation & Outlook Research Analyst

With strong tailwind from health and immunity products, DIL got the new Sanjay Manyal structural growth levers. We believe the company would continue to witness [email protected] strong growth in the medium term from these trends. Moreover, benign

commodity cost & savings programme leaves enough scope to increase margins over the long term. We expect the company to witness earnings CAGR of 12.8% over FY20-23E. We value the stock at 50x FY23 earnings for the target price of | 595/share and maintain BUY recommendation. Key Financial Summary

Key Financials FY19 FY20 FY21E FY22E FY23E CAGR (FY20-23E) Net Sales 8533.1 8703.6 9547.8 10617.5 11603.7 10.1% EBITDA 1739.6 1792.4 2016.9 2277.7 2505.0 11.8% EBITDA Margin % 20.4 20.6 21.1 21.5 21.6 Net Profit 1446.3 1447.9 1691.2 1893.4 2079.2 12.8% EPS (|) 8.19 8.19 9.57 10.71 11.77 P/E 62.8 62.8 53.7 48.0 43.7 RoNW % 25.7 21.9 22.3 22.7 22.9 RoCE (%) 29.6 26.1 25.9 26.7 27.1 s Source: Company, ICICI Direct Research

Result Update | Dabur India ICICI Direct Research

Exhibit 1: Variance Analysis EESes Q2FY21 Q2FY21E Q2FY20 YoY (%) Q1FY21 QoQ (%) Comments Net sales grew 13.7% led by robust growth in India Net Sales 2,516.0 2,344.7 2,212.0 13.7 1,980.0 27.1 busiess. Immunity boosting, ayurveda, oral care categories witnessed significant demand tailwinds Gross margins remained flat given RM price Raw Material Expenses 1,235.9 1,115.6 1,088.5 13.5 1,001.6 23.4 movement was mixed Employee Expenses 267.3 242.7 241.5 10.7 223.8 19.4 The company increased its marketing spends during SG&A Expenses 202.2 164.9 144.2 40.2 145.6 38.8 the quarter to suppport new product & variant launches Other operating Expenses 241.3 259.2 248.2 -2.8 192.4 25.4

Operating profit grew by 16.3% led by strong sales EBITDA 569.4 573.7 489.5 16.3 416.6 36.7 growth EBITDA Margin (%) 22.6 24.4 22.1 50 bps 21.0 159 bps Operating margins expanded by 50 bps Depreciation 59.6 59.0 54.5 9.5 56.7 5.1 Interest 7.5 11.7 15.2 -50.9 7.8 -4.3 Other Income 87.6 62.3 81.8 7.1 71.8 22.0 Exceptional items 0.0 0.0 40.0 N.A. 0.0 N.A. PBT 589.9 553.9 461.6 27.8 423.8 39.2 Tax Outgo 106.7 110.8 58.2 83.4 82.5 29.3

The company witnessed splendid earnings growth PAT 482.9 443.1 403.6 19.6 341.3 41.5 during the quarter

Key Metrics YoY growth (%) Strong volume growth on high base led by health & Domestiic Volume Growth 8.1 -9.7 16.5 immunity products Standalone sales growth 17.9 8.5 -8.4 MENA region sluggish sales impacted international Subsidiary's sales growth 8.3 -24.2 2.6 sales

Source: Company, ICICI Direct Research

Exhibit 2: Change in estimates FY19E FY21E FY22E FY23E (| Crore) Old Old New % change Old New % change New Comments We increase our sales estimates after the strong Q2 Sales 8,789.5 9,547.8 8.6 10,189.2 10,617.5 4.2 11604 results. We introduce FY23E numbers EBITDA 1830.5 2016.9 10.2 2137.8 2277.7 6.5 2505 EBITDA Margin-23 (%) bps 20.8 21.1 30 bps 21.0 21.5 47 bps 21.59 PAT 1557.2 1691.2 8.6 1812.1 1893.4 4.5 2079 EPS (|) 8.8 9.6 8.6 10.3 10.7 4.5 11.8

Source: Company, ICICI Direct Research

Exhibit 3: Assumptions Current Earlier Comments FY18 FY19 FY20 FY21E FY22E FY23E FY21E FY22E Std. Sales (| crore) 5,609.1 6,273.2 6,309.8 7,073.5 7,895.7 8,609.7 6,389.4 7,549.1 We change our estimates after robust Q2 results Subs. Sales (| crore) 2,139.3 2,259.9 2,393.8 2,474.3 2,721.8 2,993.9 2,400.1 2,640.1 RM exp. To sales % 49.6 50.5 50.1 50.0 49.9 50.1 49.8 49.7 We increase ad-spend estimates as guided by Adex to sales % 7.8 7.1 8.0 8.2 8.5 9.3 8.0 7.8 company Interest Cost (| crore) 53.1 59.6 49.5 38.9 40.2 40.2 38.9 40.2

Source: Company, ICICI Direct Research

ICICI Securities | Retail Research 2 Result Update | Dabur India ICICI Direct Research

Conference Call Highlights

 DIL reported robust sales growth of 13.7% led by 19.8% growth in domestic FMCG business with 16.8% volume growth. International business grew 5.5% negatively impacted by 15% sales decline in MENA region

 Domestic sales were supported by splendid growth in healthcare portfolio. Health-supplements (Chyawanprash, honey and Dabur Glucose) witnessed 70.8% sales growth whereas OTC & ethical portfolio grew 39.8%. Digestive (Hajmola) saw muted growth given reduced out of home activity

 Within home & personal care segment (HPC), oral care sales grew 24.2%. The high growth was led by increasing conversion from white toothpaste to Ayurveda/Natural products. Ayurveda & Naturals constitute 27% of the toothpaste category. Skin & Saloon (including new Sanitisers products) grew 38.1% largely led by Dabur Sanitize & other personal & home hygiene products. Hair Care (Dabur Vatika) category declined 2.4% mainly due to 6.3% decline in hair oils but shampoo sales grew 17.8%. The decline in hair oil is mainly due to significant decline in CSD channels sales. Home care segment (Odonil) witnessed de-growth of 10.2%

 Foods products segment saw 3.8% decline mainly due to 4.8% decline in beverage category but culinary saw 12.1% growth. Beverage category was impacted by non-functioning of hotels, restaurants & café (HORECA) sales. Homemade brand saw strong growth due to increasing in-home consumption trend

 The company launched many new products & variants during the quarter. In healthcare, it launched Vedic Suraksha Tea (Green & Herbal tea), two variants in Dabur honey, Apple Cider Vinegar, Dabur Ayurvedic Nasal drops. In Home & Personal care segment, it launched Dabur baby product range & variants in toothpaste & hair oil. In foods, it launched Dabur cold pressed Mustard Oil, Homemade Pickles, and Chutneys

 E-commerce segment grew 200% and is now contributing 6% of the company’s sales. Urban & rural general trade channel sales grew 18% & 25%, respectively. However, CSD, HORECA, Beauty Parlour (Skin care products) channel continue to see sales decline during the quarter

 In hygiene categories, sales have tapered down from the peak. In Q1, the hygiene products sales was | 80 crore, which dropped to | 20 crore during the quarter. This is mainly due to several new brands in the category were launched in six months which led to pricing & margin destruction

 Household penetration of Chyawanprash is ~4% whereas the same is 20-25% for honey. This gives enough opportunity to grow both these brands with by increasing penetration levels. The company is expanding Chyawanprash capacity by putting up a mega project in Madhya Pradesh (MP), which would be commissioned within three months

 The management indicated that it would be increasing its ad-spends from current 8% to 12% of the sales in medium term. The company’s marketing spend is far lower than other FMCG companies currently (~12%)

 According to Nielsen number, oral care category grew 5% & Dabur grew by 10%. However, the company’s sales witnessed a primary sales of 24% & secondary sales of 25%

 The company has cut down the trade inventory pipeline by nine days. The company has not pre-loaded inventory in Q2 before festive season

ICICI Securities | Retail Research 3 Result Update | Dabur India ICICI Direct Research

Key Metrics

Exhibit 4: Category wise revenue growth in percentage (YoY) Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Hair Care 2.3* 16.7* 8.8* 18.8* 11.1* 24* 3* 12.1* 2.6* 0.4* -20.2 -22.9 -2.4 Oral Care 22.8 23.0 11.0 17.3 3.9 10.0 8.2 11.4 4.4 8.5 -15.8 1.4 24.2 Health Supp. 3.0 19.5 14.0 27.5 12.3 13.8 10.2 19.6 14.4 12.2 -9.5 52.6 70.8 Digestives 11.7 19.3 7.2 21.6 10.8 22.5 11.9 18.2 10.2 15.9 -9.5 -11.5 2.5 Skin Care 15.8 14.5 8.5 27.1 11.9 19.3 11.2 12.1 1.0 -0.3 -24.2 -12.5 38.1 Home Care 10.1 36.0 N.A. 17.4 10.9 8.9 16.2 10.9 7.0 2.5 -20.6 -30.5 -10.2 Foods 11.7 0.0 -1.5 N.A. 2.3 11.1 -6.5 1.5 -5.0 -1.7 -18.4 -34.4 -3.8 OTC NA NA 7.8 13.3 10.0 17.7 16.6 13.1 4.2 5.5 -20.6 34.4 56.1 Ethicals NA NA 10.3 23.4 6.1 17.4 9.7 15.9 7.2 2.7 -20.6 10.7 26.4 Source: Company, ICICI Direct Research * Hair care included Shampoo

Exhibit 5: Strong revenue growth momentum to continue Exhibit 6: EBITDA margin to remain stable

14000.0 10.1 12.0 3000.0 20.9 21.5 21.6 22.0 11603.7 21.1 12000.0 10617.5 10.0 2500.0 21.5 9547.8 11.2 20.6 8703.6 9.3 8.0 19.6 20.4 21.0 10000.0 8533.1 2000.0 7701.4 7748.3 9.7 6.0 20.5 8000.0 0.6 2.0 4.0 1500.0 20.0 6000.0 2.0 1000.0 19.5 4000.0 0.0 19.0

500.0 18.5

1617.4 1739.6 1792.4 2016.9 2277.7 2505.0 2000.0 -2.0 1508.9 0.0 -4.0 0.0 18.0 FY17-2.1 FY18 FY19 FY20 FY21E FY22E FY23E FY17 FY18 FY19 FY20 FY21E FY22E FY23E

Sales (| crore) Sales growth (%) EBITDA (| crore) EBITDA Margins

Source: ICICI Direct Research, Company Source: ICICI Direct Research, Company

Exhibit 7: Raw material and adex trend over years Exhibit 8: PAT growth trend

20.9 21.6 60.0 49.9 49.6 50.5 50.1 50.0 49.9 50.1 3000.0 21.5 22.0 21.1 21.5 50.0 2500.0 20.6 19.6 20.4 21.0 40.0 2000.0 20.5 30.0 1500.0 20.0 20.0 1000.0 19.5 8.4 7.8 7.1 8.0 8.2 8.5 9.3 19.0

10.0 500.0 18.5

1508.9 1617.4 1739.6 1792.4 2016.9 2277.7 2505.0 0.0 0.0 18.0 FY17 FY18 FY19 FY20 FY21E FY22E FY23E FY17 FY18 FY19 FY20 FY21E FY22E FY23E

RM Cost to Sales Adex to Sales EBITDA (| crore) EBITDA Margins

Source: Company, ICICI Direct Research Source: Company, ICICI Direct Research

Exhibit 9: Valuation Sales Growth EPS Growth PE EV/EBITDA RoNW RoCE (| cr) (%) (|) (%) (x) (x) (%) (%) FY20 8703.6 2.0 8.2 0.1 62.8 50.1 21.9 26.1 FY21E 9547.8 9.7 9.6 16.8 53.7 44.4 22.3 25.9 FY22E 10617.5 11.2 10.7 12.0 48.0 39.3 22.7 26.7 FY23E 11603.7 9.3 11.8 9.8 43.7 35.7 22.9 27.1

Source: Company, ICICI Direct Research

ICICI Securities | Retail Research 4 Result Update | Dabur India ICICI Direct Research

Financial summary

Exhibit 10: Profit and loss statement | crore Exhibit 11: Cash flow statement | crore (Year-end March) FY20 FY21E FY22E FY23E (Year-end March) FY20 FY21E FY22E FY23E Net Sales 8,703.6 9,547.8 10,617.5 11,603.7 Profit before Tax 1,727.6 2,062.5 2,323.1 2,566.9 Growth (%) 2.0 9.7 11.2 9.3 Add: Depreciation 220.5 226.9 241.3 241.3 Raw Material Expenses 4,360.2 4,771.6 5,303.2 5,813.7 (Inc)/dec in Current Assets -157.2 -509.7 -632.8 -612.3 Employee Expenses 947.7 983.4 1,083.0 1,183.6 Inc/(dec) in CL and Provisions 99.3 215.7 261.2 247.1 Marketing Expenses 650.0 782.9 902.5 987.4 Others -276.5 -332.4 -389.6 -447.5 Administrative Expenses 0.0 658.8 711.4 765.8 CF from operating activities 1,613.6 1,663.0 1,803.2 1,995.4 Other expenses 953.3 334.2 339.8 348.1 (Inc)/dec in Investments -364.6 -350.0 -350.0 -350.0 Total Operating Expenditure 6,911.2 7,531.0 8,339.8 9,098.6 (Inc)/dec in Fixed Assets -400.5 -270.0 -270.0 -270.0 EBITDA 1,792.4 2,016.9 2,277.7 2,505.0 Others 248.2 0.0 0.0 0.0 Growth (%) 3.0 12.5 12.9 10.0 CF from investing activities -516.8 -620.0 -620.0 -620.0 Depreciation 220.5 226.9 241.3 241.3 Issue/(Buy back) of Equity 0.1 0.0 0.0 0.0 Interest 49.5 38.9 40.2 40.2 Inc/(dec) in loan funds -396.8 -150.0 -50.0 -50.0 Other Income 305.3 311.4 327.0 343.3 Dividend paid & dividend tax -512.5 -706.8 -1,148.6 -1,325.3 PBT 1,727.7 2,062.5 2,323.1 2,566.9 Others -133.8 -38.9 -40.2 -40.2 Others 100.0 0.0 0.0 0.0 CF from financing activities -1,043.0 -895.7 -1,238.8 -1,415.5 Total Tax 279.7 371.2 429.8 487.7 Net Cash flow 53.8 147.3 -55.6 -40.1 PAT 1,447.9 1,691.2 1,893.4 2,079.2 Opening Cash 37.7 91.5 238.8 183.2 Growth (%) 0.1 16.8 12.0 9.8 Miscellaneous adjustments 719.8 719.8 719.8 719.8 Adjusted EPS (|) 8.2 9.6 10.7 11.8 Closing Cash 811.4 958.6 903.1 863.0

Source: Company, ICICI Direct Research *calculated, Source: Company, ICICI Direct Research

Exhibit 12: Balance sheet | crore Exhibit 13: Key ratios | crore (Year-end March) FY20 FY21E FY22E FY23E (Year-end March) FY20 FY21E FY22E FY23E Liabilities Per share data (|) Equity Capital 176.7 176.7 176.7 176.7 Adjusted EPS 8.2 9.6 10.7 11.8 Reserve and Surplus 6,429.0 7,413.4 8,158.2 8,912.0 Cash EPS 9.4 10.9 12.1 13.1 Total Shareholders funds 6,605.8 7,590.1 8,334.9 9,088.7 BV 37.4 43.0 47.2 51.4 Long Term Loans 167.6 67.6 67.6 67.6 DPS 2.9 4.0 6.5 7.5 Long Term Provisions 17.4 17.4 17.4 17.4 Cash Per Share 4.6 5.4 5.1 4.9 Minority Interest / Others 99.4 99.4 99.4 99.4 Operating Ratios (%) Total Liabilities 6,890.1 7,774.5 8,519.3 9,273.1 PBITDA Margin 20.6 21.1 21.5 21.6 Assets PBT / Total Operating income 17.5 18.3 18.8 19.2 Gross Block 3,696.5 3,946.5 4,196.5 4,446.5 PAT Margin 16.6 17.7 17.8 17.9 Less: Acc Depreciation 1,443.8 1,670.8 1,912.1 2,153.4 Inventory days 54 54 54 54 Net Block 2,252.7 2,275.8 2,284.5 2,293.2 Debtor days 34 34 34 34 Capital WIP 146.6 166.6 186.6 206.6 Creditor days 62 61 61 61 Non- Current Investments 1,409.2 1,709.2 2,009.2 2,309.2 Return Ratios (%) LT loans & advances 24.6 74.6 124.6 174.6 RoE 21.9 22.3 22.7 22.9 Other Non-current Assets 640.6 690.6 740.6 790.6 RoCE 26.1 25.9 26.7 27.1 Current Assets RoIC 28.2 28.8 29.5 29.8 Inventory 1,379.6 1,432.2 1,592.6 1,740.5 Debtors 813.9 901.7 1,002.8 1,095.9 Valuation Ratios (x) Cash & Bank 811.4 958.6 903.1 863.0 P/E 62.8 53.7 48.0 43.7 ST Loans & Advances 13.1 12.4 13.7 15.0 EV / EBITDA 50.1 44.4 39.3 35.7 Other Current Assets 1,862.4 2,232.4 2,602.4 2,972.4 EV / Net Sales 10.3 9.4 8.4 7.7 Current Liabilities Market Cap / Sales 10.4 9.5 8.6 7.8 Creditors 1,482.2 1,617.8 1,799.1 1,966.2 Price to Book Value 13.8 12.0 10.9 10.0 ST Borrowings 304.2 324.2 344.2 364.2 Solvency Ratios Other CL 677.5 737.5 797.5 857.5 Debt/EBITDA 0.3 0.2 0.2 0.2 Net Current Assets 2,416.4 2,857.7 3,173.8 3,498.9 Debt / Equity 0.1 0.1 0.0 0.0 Miscellaneous Expenditure 0.0 0.0 0.0 0.0 Current Ratio 1.9 1.9 2.0 2.1 Total Assets 6,890.1 7,774.5 8,519.3 9,273.1 Quick Ratio 1.2 1.3 1.4 1.4

Source: Company, ICICI Direct Research Source: Company, ICICI Direct Research

ICICI Securities | Retail Research 5 Result Update | Dabur India ICICI Direct Research

Exhibit 14: ICICI Direct coverage universe (FMCG) CMP TP M Cap EPS (|) P/E (x) Price/Sales (x) RoCE (%) RoE (%) (|) (|) Rating (| Cr) FY20 FY21E FY22E FY20 FY21E FY22E FY20 FY21E FY22E FY20 FY21E FY22E FY20 FY21E FY22E Colgate (COLPAL) 1,489 1,700 Buy 38,812 30.0 33.4 35.4 49.6 44.6 42.1 8.6 8.4 7.7 60.7 83.5 100.8 51.2 64.2 78.0 Dabur India (DABIND) 514 595 Buy 90,864 8.2 9.6 10.7 62.8 53.7 48.0 10.4 9.5 8.6 26.1 25.9 26.7 21.9 22.3 22.7 Hindustan Unilever (HINLEV) 2,054 2,500 Buy 510,548 31.2 32.4 38.8 65.8 63.4 52.9 13.3 12.0 10.4 89.5 24.5 28.5 85.7 18.6 21.9 ITC Limited (ITC) 170 250 Buy 218,801 12.5 11.7 13.0 13.6 14.5 13.0 4.7 4.6 4.1 29.4 28.3 36.1 23.8 21.7 27.7 Jyothy Lab (JYOLAB) 131 150 Hold 5,141 4.3 5.3 5.8 30.5 24.7 22.5 3.1 2.9 2.6 24.3 29.7 29.9 21.7 24.2 24.1 Marico (MARLIM) 369 440 Buy 46,834 8.1 8.8 9.5 45.6 41.9 38.7 6.4 6.2 5.6 41.0 42.3 45.1 34.5 36.3 38.5 Nestle (NESIND) 16,898 18,000 Hold 152,970 204.3 223.4 253.4 82.7 75.6 66.7 12.4 11.5 10.4 56.9 59.9 66.6 101.9 119.1 139.2 Tata Consumer Products (TATGLO) 489 525 Buy 49,578 5.0 9.8 11.7 97.9 50.0 41.9 5.1 4.6 4.3 6.9 8.8 9.4 4.6 6.6 7.5 VST Industries (VSTIND) 3,413 3,850 Hold 5,307 196.9 206.0 211.9 17.3 16.6 16.1 4.3 4.5 4.2 52.1 45.3 46.1 38.6 33.6 34.2 Varun Beverage (VARBEV) 672 700 Hold 19,948 16.4 9.7 17.8 41.1 69.0 37.7 2.8 3.3 2.7 15.5 11.3 16.3 14.2 8.8 14.2 Zydus Wellness (ZYDWEL) 1,765 2,300 Buy 11,475 24.6 27.8 65.7 71.8 63.5 26.9 6.5 6.2 5.5 5.9 6.9 8.3 5.4 5.9 8.6

Source: Company, ICICI Direct Research

ICICI Securities | Retail Research 6 Result Update | Dabur India ICICI Direct Research

RATING RATIONALE ICICI Direct endeavours to provide objective opinions and recommendations. ICICI Direct assigns ratings to its stocks according to their notional target price vs. current market price and then categorizes them as Buy, Hold, Reduce and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts' valuation for a stock

Buy: >15% Hold: -5% to 15%; Reduce: -15% to -5%; Sell: <-15%

Pankaj Pandey Head – Research [email protected]

ICICI Direct Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No 7, MIDC, Andheri (East) Mumbai – 400 093 [email protected]

ICICI Securities | Retail Research 7 Result Update | Dabur India ICICI Direct Research

ANALYST CERTIFICATION

I/We, Sanjay Manyal, MBA (Finance) Research Analyst, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. It is also confirmed that above mentioned Analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months and do not serve as an officer, director or employee of the companies mentioned in the report.

Terms & conditions and other disclosures:

ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock brokering and distribution of financial products. ICICI Securities Limited is a SEBI registered Research Analyst with SEBI Registration Number – INH000000990. ICICI Securities Limited SEBI Registration is INZ000183631 for stock broker. ICICI Securities is a subsidiary of ICICI Bank which is India’s largest private sector bank and has its various subsidiaries engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capital fund management, etc. (“associates”), the details in respect of which are available on www.icicibank.com

ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in India. We and our associates might have investment banking and other business relationship with a significant percentage of companies covered by our Investment Research Department. ICICI Securities generally prohibits its analysts, persons reporting to analysts and their relatives from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover.

Recommendation in reports based on technical and derivative analysis centre on studying charts of a stock's price movement, outstanding positions, trading volume etc as opposed to focusing on a company's fundamentals and, as such, may not match with the recommendation in fundamental reports. Investors may visit icicidirect.com to view the Fundamental and Technical Research Reports.

Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein.

ICICI Securities Limited has two independent equity research groups: Institutional Research and Retail Research. This report has been prepared by the Retail Research. The views and opinions expressed in this document may or may not match or may be contrary with the views, estimates, rating, target price of the Institutional Research.

The information and opinions in this report have been prepared by ICICI Securities and are subject to change without any notice. 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 of ICICI Securities. While we would endeavour to update the information herein on a reasonable basis, ICICI Securities is under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent ICICI Securities from doing so. Non-rated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable regulations and/or ICICI Securities policies, in circumstances where ICICI Securities might be acting in an advisory capacity to this company, or in certain other circumstances.

This report is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This report and information herein is solely for informational purpose and shall 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. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. ICICI Securities will not treat recipients as customers by virtue of their receiving this report. 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. The recipient should independently evaluate the investment risks. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. ICICI Securities accepts no liabilities whatsoever for any loss or damage of any kind arising out of the use of this report. Past performance is not necessarily a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the risks associated before investing in the securities markets. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to change without notice.

ICICI Securities or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any other assignment in the past twelve months.

ICICI Securities or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for services in respect of managing or co- managing public offerings, corporate finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or specific transaction.

ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. ICICI Securities or its associates or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither ICICI Securities nor Research Analysts and their relatives have any material conflict of interest at the time of publication of this report.

Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.

ICICI Securities or its subsidiaries collectively or Research Analysts or their relatives do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the publication of the research report.

Since associates of ICICI Securities are engaged in various financial service businesses, they might have financial interests or beneficial ownership in various companies including the subject company/companies mentioned in this report.

ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.

Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies mentioned in the report.

We submit that no material disciplinary action has been taken on ICICI Securities by any Regulatory Authority impacting Equity Research Analysis activities.

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 ICICI Securities and affiliates 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.

ICICI Securities | Retail Research 8