(MRCO IN)

Rating: ACCUMULATE | CMP: Rs410 | TP: Rs452

April 30, 2021 Ideal mix of growth and Value; Accumulate

Q4FY21 Result Update Quick Pointers:

☑ Change in Estimates | ☑ Target |  Reco . Volumes up 25%, ex-base effect 18-20% volume growth

Change in Estimates . RM inflation led margin pressure to ease only by 3Q/4Q22

Current Previous FY22E FY23E FY22E FY23E MRCO reported robust volume growth across categories while gross margins Rating ACCU MUL ATE ACCUMULATE disappointed due to inflation in key RM prices. Although we expect volume Target Price 452 441 growth to trend lower and margin pressure to sustain for next 2/3 quarters, Sales (Rs. m) 97,246 101,360 88,151 98,995 % Chng. 10.3 2.4 outlook remains positive on account of 1) strategy to push volumes working EBITDA (Rs. m) 17,386 20,765 17,796 20,830 in high inflationary environment in Parachute and VAHO 2) Improved % Chng. (2.3) (0.3) EPS (Rs.) 10.0 11.9 9.8 11.6 competitive positioning of Saffola with double digit growth from 6 quarters, % Chng. 2.0 2.6 3) Opportunity in Foods business with target of Rs 8.5bn revenue by FY24 and 4) Focus to increase rural reach by 25% in next 2 years. We believe near Key Financials - Consolidated term pressure to sustain despite 15% correction in copra prices and likely Y/ e Mar FY20 FY21 FY22E FY23E correction in edible oils in another 2-3 months. We are increasing FY22/23 Sales (Rs. m) 73,150 80,480 97,246 101,360 EPS estimates by 1.9%/2.3% on back of robust demand scenario, price hike EBITDA (Rs. m) 14,690 15,910 17,386 20,765 in core portfolio and rationalization of fixed costs. We estimate 13.7% PAT Margin (%) 20.1 19.8 17.9 20.5 CAGR over FY21-23. We believe MRCO offers value at 34.5xFY23 EPS given PAT (Rs. m) 10,720 11,860 12,877 15,312 ROE and ROCE of 39.5% and 45.9%. Retain Accumulate with target price of EPS (Rs.) 8.3 9.2 10.0 11.9 Gr. (%) 13.6 10.6 8.6 18.9 Rs452 (38xFY23 EPS, earlier Rs. 441). DPS (Rs.) (6.9) (7.0) (7.5) (8.5) Yield (%) (1.7) (1.7) (1.8) (2.1) RoE (%) 35.7 37.9 37.3 39.5 Sales up 34.5%, adj PAT up 17.7%: Net Sales increased 34.5% YoY to Rs RoCE (%) 39.8 41.8 41.8 45.9 20.12bn (Est Rs 17.93bn). Gross margins declined 510bps to 44.1% YoY (Est EV/Sales (x) 7.2 6.4 5.3 5.1 48.1%) due to severe input cost pressure. EBITDA increased 13.1% YoY to Rs EV/EBITDA (x) 35.6 32.5 29.7 24.7 3.19bn (Est Rs 3.57bn). EBITDA Margins contracted by 300bps to 15.9% (Est PE (x) 49.3 44.6 41.1 34.5 19.9%) as higher RM costs were set of by better fixed cost absorption. Adj. PAT P/BV (x) 17.5 16.3 14.5 12.9 increased 17.7% YoY to Rs 2.46bn (Est Rs 2.33bn). Exceptional loss of Rs 190mn for impairment of goodwill arising out of investment in South Africa. Standalone Key Data MRCO.BO | MRCO IN sales increased 35.0% at Rs16.04bn, EBIDTA up 7.3% at Rs 2.34bn, margins were 52-W High / Low Rs.439 / Rs.277 down 380bps, Adj PAT increased 19.4% to Rs2.71bn. sales grew 37.3% to Sensex / Nifty 48,782 / 14,631 Market Cap Rs.530bn/ $ 7,149m Rs15.74bn and EBIT grew 6.7% while contracted 500bps. IBD reported increase of Shares Outstanding 1,291m 25.1% in sales to Rs4.38bn while EBIT grew 45.6% to Rs830m n. 3M Av g. Daily Value Rs.1702.8m

Volumes grew 25% led by all categories: Domestic volume up 25% (Est 14%). Shareholding Pattern (%) Parachute volumes up 29% (Est 10%), VAHO up 22% (Est 20%) while Saffola Promoter’s 59.61 volumes grew by 17% (Est 12%). Male Grooming and Premium Hair Nourishment Foreign 24.04 Domestic Institution 10.06 witnessed modest dip in 4Q. IBD sales grew 23% in cc terms led by 20% growth in Public & Others 6.29 Bangladesh, 48% in South Africa, 62% in MENA and 13% in SE Asia. Promoter Pledge (Rs bn) -

Concall takeaways: 1) Ex-base effect, volume growth at 18-20%. 2) Rural GT Stock Performance (%) growing at 1.8x of urban. Target to increase rural stockists by 25% in coming 2 1M 6M 12M years. 3) Ecom contribution at 8% and likely to go up to 12% by FY24. 4) Copra Absolute (0.3) 15.0 42.9 Relativ e 1.2 (6.6) (1.2) prices corrected by 13-15% in April-21 and likely to correct a little on back of good copra season. Price hike of ~9% taken in Parachute portfolio in 4Q. 5) Edible oil

prices likely to peak out by Jun-July. Price hike to the tune of 30% taken in 2H21 Amnish Aggarwal and 15-20% in April 21 in Saffola portfolio. 6) No down-trading expected in Saffola [email protected] | 91-22-66322233 portfolio in spite of huge price hike due to customer stickiness. 7) Robust trend for Charmi Mehta Soffola and VAHO in 1Q. 8) Food portfolio to reach Rs 4.5-5bn revenues in FY22 [email protected] | 91-22-66322256 and reach Rs 8.5bn by FY24. 9) Inventory days lower at 97days vs 140 days in Heet Vora FY20 due to 26% reduction in SKUs, reduction in stock at depots and higher RM [email protected] | 91-22-66322381 prices. 10) Bangladesh: non-coconut oil portfolio at 40% of total revenues, likely to reach 50% in few years.

April 30, 2021 1 Marico

Exhibit 1: 4QFY21 Results: Sales grew 34.5%, EBITDA margins decline 300bps, PAT increased by 17.7% Consolidated Q4FY21 Q4FY20 YoY gr. (%) Q3FY21 FY21 FY20 YoY gr. (%) Net Sales 20,120 14,960 34.5 21,220 80,480 73,150 10.0 COGS 11,240 7,590 48.1 11,270 42,740 37,450 14.1 % of Net Sales 55.9 50.7 5.1 53.1 53.1 51.2 1.9 Gross Profit 8,880 7,370 20.5 9,950 37,740 35,700 5.7 % of NS 44.1 49.3 -5.1 46.9 46.9 48.8 -1.9 Advt. & Prom. 1,730 1,260 37.3 1,930 6,920 7,270 (4.8) % of NS 8.6 8.4 0.2 9.1 8.6 9.9 -1.3 Total Expenses 16,930 12,140 39.5 17,090 64,600 58,460 10.5 EBITDA 3,190 2,820 13.1 4,130 15,880 14,690 8.1 Margins (%) 15.9 18.9 -3.0 19.5 19.7 20.1 -0.4 Depreciation 360 380 (5.3) 360 1,390 1,400 (0.7) EBIT 2,830 2,440 16.0 3,770 14,490 13,290 9.0 Interest 100 130 (23.1) 70 340 500 (32.0) Other Income 290 320 (9.4) 240 990 1,240 (20.2) PBT 3,020 2,630 14.8 3,940 15,140 14,030 7.9 Tax 560 530 5.7 820 3,240 3,310 (2.1) Effective tax rate (%) 18.5 20.2 -1.6 20.8 21.4 23.6 -2.2 Adjusted PAT 2,460 2,090 17.7 3,120 11,880 10,720 10.8 Source: Company, PL

Exhibit 2: Consolidated Segmental: Domestic sales grew 37.3%, IBD sales grew 25.1% (Rs m) 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 4QFY21 Net Sales 16,090 21,660 18,290 18,240 14,960 19,250 19,890 21,220 20,120 Domestic 12,400 17,310 13,980 13,800 11,460 14,800 15,080 16,270 15,740 International 3,690 4,350 4,310 4,440 3,500 4,450 4,810 4,950 4,380 Sales Grow th % 8.7 6.9 -0.4 -2.0 -7.0 -11.1 8.7 16.3 34.5 Domestic 7.2 6.4 -2.8 -4.8 -7.6 -14.5 7.9 17.9 37.3 International 14.2 9.0 8.3 7.9 -5.1 2.3 11.6 11.5 25.1 EBIT 3,000 4,710 3,570 3,830 2,950 4,830 3,960 4,210 3,370 Domestic 2,400 3,650 2,690 2,980 2,380 3,580 2,920 3,250 2,540 International 600 1,060 880 850 570 1,250 1,040 960 830 EBIT Grow th % 9.6 25.0 12.9 5.3 -1.7 2.5 10.9 9.9 14.2 Domestic 0.1 22.7 9.5 4.5 -0.8 -1.9 8.6 9.1 6.7 International 76.7 33.6 24.8 8.1 -5.0 17.9 18.2 12.9 45.6 EBIT Margins % 18.6 21.7 19.5 21.0 19.7 25.1 19.9 19.8 16.7 Domestic 19.4 21.1 19.2 21.6 20.8 24.2 19.4 20.0 16.1 International 16.3 24.4 20.4 19.1 16.3 28.1 21.6 19.4 18.9 Capital Employed 20,850 18,930 19,610 19,910 21,650 24,320 21,650 18,730 16,560 Domestic 13,920 11,910 12,740 12,380 14,320 16,080 14,320 11,340 8,950 International 6,930 7,020 6,870 7,530 7,330 8,240 7,330 7,390 7,610 International Sales Grow th % Bangladesh (46%) 12.0 11.0 15.0 15.0 6.0 10.0 16.0 15.0 20.0 MENA (15%) 5.0 -20.0 -3.0 -4.0 -50.0 -27.0 -6.0 -1.0 62.0 South Africa (8%) 0.0 6.0 -2.0 3.0 -26.0 -25.0 16.0 7.0 48.0 SE Asia (26%) 4.0 8.0 1.0 3.0 5.0 -17.0 -4.0 3.0 13.0 Source: Company, PL

April 30, 2021 2 Marico

Exhibit 3: Parachute volumes grew 29% Exhibit 4: Saffola: Volumes grew 17%

Parachute Volumes 30 35 Saffola Volume growth25 29 25 20 18 30 20 16 17 17 25 15 10 11 20 15 15 12 10 6 6 5 15 10 3 3 9 8 9 9 8 (%) 5 2 1 10 6 0 -1 (%) 0 5 -1 -1 -2 -5 -9 0 -6 -5 -5 -9 -8 -10 -10 -15

-15 -11

Jun-18 Jun-19 Jun-20

Mar-17 Mar-18 Mar-19 Mar-21 Mar-20

Jun-19 Jun-20 Jun-18

Dec-16 Sep-17 Dec-17 Sep-18 Dec-18 Sep-19 Sep-20 Dec-20 Dec-19

Mar-17 Mar-18 Mar-19 Mar-21 Mar-20

Dec-16 Sep-17 Dec-17 Sep-18 Dec-18 Sep-19 Dec-19 Sep-20 Dec-20 Sep-16 June-17 June-17 Source: Company, PL Source: Company, PL

Exhibit 5: VAHO volumes grew 22% Exhibit 6: Domestic FMCG Volume grew 25%

30 Marico Volume growth Hair Oil Volume Growth 21 22 20 15 30 25 11 10 12 11 25 8 7 7 20 10 5 4 15 15 12.4 11 1 0 10 8 9.4 8 0 10 6 5 6 -8 -7 5 1 3

-11 (%) -1 (%) -12 -10 0 -4 -3 -5 -9 -20 -10 -14

-15

Jun-18

Jun-19

Jun-20

Mar-17

Mar-18

Mar-19

Mar-20

Mar-21

Sep-16

Dec-16

Sep-17

Dec-17

Sep-18

Dec-18

Sep-19

Dec-19 Sep-20 -30 Dec-20 -20

June-17 -30

Jun-18

Jun-19

Jun-20

Mar-17

Mar-18

Mar-19

Mar-20

Mar-21

Dec-16

Dec-17

Dec-18

Dec-19

Dec-20

Sep-17

Sep-18 Sep-19 -40 Sep-20 June-17 Source: Company, PL Source: Company, PL

Exhibit 7: Marico has maintained its market share in various products Market Share (%) Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Coconut Oil 59 60 60 61 62 62 62 62 61 Saffola 73 73 75 76 76 77 77 76 81 Hair Oil VAHO 34 34 35 35 35 36 36 35 37 Livon & Silk and Shine 75 63 64 65 65 65 65 65 63 Hair Creams/Gel 60 60 60 59 59 59 59 59 57 Saffola Oats 29 30 31 32 33 34 34 33 38 Shanti Amla 42 44 45 47 47 NA NA NA NA Parachute Bangladesh 86 84 84 84 82 82 82 82 82 Hair Oils Bangladesh 23 22 22 22 23 23 23 23 23 X Men Shampoo Vietnam 39 38 37 37 37 37 37 37 38 x Men Deodorant Vietnam 31 31 31 31 31 31 31 31 31 Source: Company, PL

April 30, 2021 3 Marico

Exhibit 8: Price increase to the tune of 3% Exhibit 9: No price change in 4Q

Saffola Tasty Blend Saffola Kardi Parachute Advance Parachute Jasmine Saffola Gold 105 98 210 100 200 95 190 90 170 165 160 85 79 150 80 130 75 (Rs / Liter) / (Rs 70 110 65

90

Jun-18 Jun-19 Jun-20

Mar-19 Mar-20 Mar-21

Sep-18 Dec-18 Sep-19 Dec-19 Sep-20 Dec-20

Jun-19

Jun-20

Mar-19

Mar-20

Mar-21

Dec-18

Dec-19

Dec-20 Sep-19 Sep-20 Source: Company, PL Source: Company, PL

Exhibit 10: Cochin/Calicut Copra Prices up 31.2%/24.6% YoY Exhibit 11: Sunflower Oil price up 83.6%/30.7% YoY / QoQ

Cochin Coconut Oil Rs/1000kg Sunflower Oil Kardi Oil Rice Bran Oil Copra Calicut Rs/1000kg 25200 20036 2200 20200 1700 1700 15200 1600 13819 1200 10200 891

5200 Kg) 10 / (Rs 700

200

200

4Q12

2Q13

4Q13

2Q14

4Q14

2Q15

4Q15

2Q16

4Q16

2Q17

4Q17

2Q18

4Q18

2Q19

4Q19

2Q20

4Q20

2Q21

4Q21

2Q17

3Q17

4Q17

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

3Q20

4Q20

1Q21

2Q21 3Q21 4Q21 Source: Company, PL Source: Company, PL

April 30, 2021 4 Marico

Financials

Income Statement (Rs m) Balance Sheet Abstract (Rs m) Y/e Mar FY20 FY21 FY22E FY23E Y/e Mar FY20 FY21 FY22E FY23E

Net Revenues 73,150 80,480 97,246 101,360 Non-Current Assets YoY gr. (%) (0.3) 10.0 20.8 4.2 Cost of Goods Sold 37,450 42,700 53,799 53,430 Gross Block 15,363 17,407 18,457 19,507 Gross Prof it 35,700 37,780 43,448 47,929 Tangibles 14,071 14,150 15,200 16,250 Margin (%) 48.8 46.9 44.7 47.3 Intangibles 1,293 3,257 3,257 3,257 Employ ee Cost 4,780 5,700 6,516 6,690 Other Expenses 8,960 - - - Acc: Dep / Amortization 8,243 9,217 10,366 11,590 Tangibles 7,361 8,260 9,340 10,496 EBITDA 14,690 15,910 17,386 20,765 Intangibles 882 957 1,026 1,094 YoY gr. (%) 10.8 8.3 9.3 19.4 Margin (%) 20.1 19.8 17.9 20.5 Net fixed assets 7,120 8,190 8,091 7,917

Tangibles 6,710 5,890 5,859 5,754 Depreciation and Amortization 1,400 1,390 1,620 1,740 Intangibles 410 2,300 2,232 2,163

EBIT 13,290 14,520 15,765 19,025 Capital Work In Progress 580 240 250 250 Margin (%) 18.2 18.0 16.2 18.8 Goodwill 5,380 6,130 6,130 6,130 Non-Current Inv estments 1,360 2,710 1,079 1,110 Net Interest 500 340 363 362 Net Def erred tax assets 1,530 1,020 708 396 Other Income 1,240 940 1,218 1,226 Other Non-Current Assets 2,170 2,611 3,037 3,276

Profit Before Tax 14,030 15,120 16,621 19,889 Current Assets Margin (%) 19.2 18.8 17.1 19.6 Inv estments 6,280 6,280 8,752 9,122 Inv entories 13,800 11,260 16,021 15,504 Total Tax 3,310 3,240 3,723 4,555 Trade receiv ables 5,390 3,880 4,796 4,999 Effective tax rate (%) 23.6 21.4 22.4 22.9 Cash & Bank Balance 2,790 9,449 6,323 9,467 Other Current Assets 3,400 2,240 3,890 4,054 Profit after tax 10,720 11,880 12,898 15,334 Total Assets 50,020 55,100 60,154 63,450 Minority interest - 20 21 22 Share Prof it f rom Associate - - - - Equity

Equity Share Capital 1,290 1,290 1,290 1,290 Adjusted PAT 10,720 11,860 12,877 15,312 Other Equity 28,940 31,110 35,298 39,657 YoY gr. (%) 13.6 10.6 8.6 18.9 Total Networth 30,230 32,400 36,588 40,947 Margin (%) 14.7 14.7 13.2 15.1 Extra Ord. Income / (Exp) (290) 130 - - Non-Current Liabilities Long Term borrowings 100 80 17 - Reported PAT 10,430 11,990 12,877 15,312 Prov isions - - - - YoY gr. (%) (7.9) 15.0 7.4 18.9 Other non current liabilities 210 250 275 303 Margin (%) 14.3 14.9 13.2 15.1

Current Liabilities Other Comprehensiv e Income 430 50 - - ST Debt / Current of LT Debt 3,250 3,400 2,900 2,400 Total Comprehensiv e Income 10,860 12,040 12,877 15,312 Trade pay ables 9,780 11,340 12,207 11,074

Equity Shares O/s (m) 1,290 1,290 1,290 1,290 Other current liabilities 4,820 5,390 5,225 5,536 EPS (Rs) 8.3 9.2 10.0 11.9 Total Equity & Liabilities 50,020 55,100 60,154 63,450 Source: Company Data, PL Research Source: Company Data, PL Research

April 30, 2021 5 Marico

Cash Flow (Rs m) Key Financial Metrics

Y/e Mar FY20 FY21 FY22E FY23E YearY/e Mar FY20 FY21 FY22E FY23E

PBT 14,030 15,120 16,621 19,889 Per Share(Rs) Add. Depreciation 1,400 1,390 1,620 1,740 EPS 8.3 9.2 10.0 11.9 Add. Interest 500 340 363 362 CEPS 9.4 10.3 11.2 13.2 Less Financial Other Income 1,240 940 1,218 1,226 BVPS 23.4 25.1 28.4 31.7 Add. Other 310 90 735 311 FCF 6.6 14.0 3.9 11.6 Op. prof it bef ore WC changes 16,240 16,940 19,339 22,302 DPS (6.9) (7.0) (7.5) (8.5) Net Changes-WC (1,840) 7,240 (8,958) (1,046) Return Ratio(%) Direct tax (3,310) (3,240) (3,723) (4,555) RoCE 39.8 41.8 41.8 45.9 Net cash from Op. activities 11,090 20,940 6,658 16,702 ROIC 32.5 36.9 35.0 42.4 Capital expenditures (2,530) (2,921) (1,676) (1,724) RoE 35.7 37.9 37.3 39.5 Interest / Div idend Income - - - - Balance Sheet Others (420) (1,500) 1,510 - Net Debt : Equity (x) (0.2) (0.4) (0.3) (0.4) Net Cash from Invt. activities (2,950) (4,421) (166) (1,724) Net Working Capital (Day s) 47 17 32 34 Issue of share cap. / premium 40 (623) 990 18 Valuation(x) Debt changes (140) 130 (563) (517) PER 49.3 44.6 41.1 34.5 Div idend paid (10,270) (9,037) (9,683) (10,974) P/B 17.5 16.3 14.5 12.9 Interest paid (500) (340) (363) (362) P/CEPS 43.6 39.9 36.5 31.0 Others - - - - EV/EBITDA 35.6 32.5 29.7 24.7 Net cash from Fin. activities (10,870) (9,870) (9,618) (11,834) EV/Sales 7.2 6.4 5.3 5.1 Net change in cash (2,730) 6,649 (3,126) 3,144 Div idend Yield (%) (1.7) (1.7) (1.8) (2.1) Free Cash Flow 8,560 18,019 4,982 14,978 Source: Company Data, PL Research Source: Company Data, PL Research

Quarterly Financials (Rs m) Y/e Mar Q1FY21 Q2FY21 Q3FY21 Q4FY21 Net Revenue 19,250 19,890 21,220 20,120 YoY gr. (%) (11.1) 8.7 16.3 34.5 Raw Material Expenses 9,890 10,340 11,270 11,240 Gross Prof it 9,360 9,550 9,950 8,880 Margin (%) 48.6 48.0 46.9 44.1 EBITDA 4,670 3,890 4,130 3,190 YoY gr. (%) 1.3 10.2 10.7 13.1 Margin (%) 24.3 19.6 19.5 15.9 Depreciation / Depletion 340 330 360 360 EBIT 4,330 3,560 3,770 2,830 Margin (%) 22.5 17.9 17.8 14.1 Net Interest 90 80 70 100 Other Income 190 270 240 290

Profit before Tax 4,430 3,750 3,940 3,020 Margin (%) 23.0 18.9 18.6 15.0 Total Tax 1,170 690 820 560 Effective tax rate (%) 26.4 18.4 20.8 18.5 Profit after Tax 3,260 3,060 3,120 2,460 Minority interest 20 - - - Share Prof it f rom Associates - - - - Adjusted PAT 3,240 3,060 3,120 2,460 YoY gr. (%) (3.0) 20.9 13.0 17.7 Margin (%) 16.8 15.4 14.7 12.2 Extra Ord. Income / (Exp) 640 (330) - (190) Reported PAT 3,880 2,730 3,120 2,270 YoY gr. (%) 23.2 7.9 13.0 14.1 Margin (%) 20.2 13.7 14.7 11.3 Other Comprehensiv e Income (20) 50 40 (20) Total Comprehensive Income 3,860 2,780 3,160 2,250 Av g. Shares O/s (m) 1,291 1,291 1,291 1,291 EPS (Rs) 2.5 2.4 2.4 1.9 Source: Company Data, PL Research

April 30, 2021 6 Marico

Price Chart Recommendation History

(Rs) No. Date Rating TP (Rs.) Share Price (Rs.)

450 1 07-Apr-21 Accumulate 441 407

398 2 28-Jan-21 Accumulate 440 411 3 07-Jan-21 Hold 410 419 345 4 28-Oct-20 Hold 378 363

293 5 08-Oct-20 Hold 359 372 6 27-Jul-20 Hold 355 350 240

7 08-Jul-20 Hold 337 352

Oct Oct - 18 Oct - 19 Oct - 20

Apr Apr - 19 Apr - 20 Apr - 21

May -18 May 8 04-May-20 Hold 318 284

Analyst Coverage Universe Sr. No. Company Name Rating TP (Rs) Share Price (Rs) 1 Hold 2,829 2,622 2 Avenue Supermarts BUY 3,195 2,880 3 Bajaj Electricals BUY 1,033 991 4 Accumulate 3,755 3,541 5 Burger King India BUY 221 145 6 Colgate Palmolive Hold 1,685 1,551 7 Crompton Greaves Consumer Electricals BUY 447 374 8 India Accumulate 550 552 9 BUY 568 507 10 GlaxoSmithKline Consumer Healthcare Hold 9,377 9,247 11 India Hold 1,128 1,026 12 BUY 2,562 2,408 13 ITC BUY 248 214 14 Jubilant FoodWorks Accumulate 3,279 2,862 15 Kansai Nerolac Paints BUY 653 596 16 Marico Accumulate 441 407 17 Nestle India Accumulate 18,450 17,096 18 Pidilite Industries Hold 1,739 1,886 19 Polycab India BUY 1,480 1,376 20 Accumulate 1,663 1,507 21 Hold 1,000 977 22 Westlife Development BUY 618 496

PL’s Recommendation Nomenclature (Absolute Performance) Buy : > 15% Accumulate : 5% to 15% Hold : +5% to -5% Reduce : -5% to -15% Sell : < -15% Not Rated (NR) : No specific call on the stock Under Review (UR) : Rating likely to change shortly

April 30, 2021 7 Marico

ANALYST CERTIFICATION (Indian Clients)

We/I, Mr. Amnish Aggarwal- MBA, CFA, Ms. Charmi Mehta- CA, Mr. Heet Vora- CA Research Analysts, authors and the names subscribed to this report, hereby certify that all of the v iews 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. (US Clients)

The research analy sts, with respect to each issuer and its securities covered by them in this research report, certify that: All of the views expressed in this research report accurately ref lect his or her or their personal views about all of the issuers and their securities; and No part of his or her or their compensation was, is or will be directly related to the specific recommendation or views expressed in this research report. DISCLAIMER Indian Clients Prabhudas Lilladher Pvt. Ltd, , India (hereinafter referred to as “PL”) is engaged in the business of Stock Broking, Portfolio Manager, Depository Participant and distribution for third party financial products. PL is a subsidiary of Prabhudas Lilladher Advisory Services Pvt Ltd. which has its various subsidiaries engaged in business of commodity broking, inv estment banking, financial services (margin funding) and distribution of third party financial/other products, details in respect of which are available at www.plindia.com. 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PL or its research analysts or its associates or his relatives do not have any financial interest in the subject company. PL or its research analysts or its associates or his relatives do not have actual/beneficial ownership of one per cent or more securities of the subject company at the end of the month immediately preceding the date of publication of the research report. PL or its research analysts or its associates or his relatives do not have any material conflict of interest at the time of publication of the research report. PL or its associates might have received compensation from the subject company in the past twelve months. PL or its associates might have managed or co-managed public offering of securities for the subject company in the past twelve months or mandated by the subject company for any other assignment in the past twelve months. PL or its associates might have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months. PL or its associates might have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months PL or its associates might have received any compensation or other benefits from the subject company or third party in connection with the research report. PL encourages independence in research report preparation and strives to minimize conflict in preparation of research report. PL or its analysts did not receive any compensation or other benef its from the subject Company or third party in connection with the preparation of the research report. PL or its Research Analysts do not have any material conflict of interest at the time of publication of this report. 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