3 June 2020
4QFY20 Results Update | Sector: Consumer
Britannia Industries
Estimate change
TP change
Rating change
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CMP: INR3,510
TP: INR3,470 (-1% )
Neutral
Earnings outlook seems promising, but valuations
fully capture upside
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
BRIT IN
240
844.1 / 11
3705 / 2101
10/31/33
1724
Financials & Valuations (INR b)
Y/E March
2020 2021E 2022E
Sales
116.0 132.3 147.0
Sales Gr. (%)
4.9 14.0 11.1
EBITDA
18.4 22.6 25.2
Margins (%)
15.9 17.1 17.1
Adj. PAT
14.1 16.7 18.6
Adj. EPS (INR)
58.6 69.5 77.1
EPS Gr. (%)
21.8 18.5 11.0
BV/Sh.(INR)
183.1 188.0 193.4
Ratios
RoE (%)
32.6 37.5 40.5
RoCE (%)
24.2 25.5 28.3
Payout (%)
60.9 80.0 80.0
Valuations
P/E (x)
59.9 50.5 45.5
P/BV (x)
19.2 18.7 18.2
EV/EBITDA (x)
45.0 36.5 32.7
Div. Yield (%)
1.0
1.6
1.8
Shareholding pattern (%)
As On
Mar-20 Dec-19
Promoter
50.6
50.6
DII
13.4
13.6
FII
14.7
15.8
Others
21.3
20.0
FII Includes depository receipts
BRIT declared an in-line set of results, but we are pleasantly surprised with
the commentary on ~24% avg. sales growth in Apr–May’20. The
management attributed this growth to high in-home consumption in the
lockdown period and BRIT being quicker off the block than peers after the
initial COVID-19-led disruption.
Two factors highlighted in the post-results call could keep multiple re-rating
in check. (a) The management going back on its stated commitment of Inter
Corporate Deposits (ICDs) not exceeding INR5b. (b) The company following
the policy of not repaying debt while letting the investment book to build
up despite a sharp inventory reduction in the past six months. This would
lead to consequent concerns over ROCE.
While we have revised our FY21 and FY22 EPS by 19.8% and 15.4%,
respectively, but valuations fully capture upside at 45.5x FY22 EPS.
Maintain
Neutral.
BRIT’s consol. sales increased 2.5% YoY to INR28.7b
(in-line) in 4QFY20.
Standalone sales were flat YoY at INR26.9b. We believe base business
volume growth would be flat YoY (in line with our estimate). Consol.
EBITDA grew 4.1% YoY to INR4.5b (in-line), consol. PBT 1.6% YoY to INR4.6b
(est.: INR4.4b), and consol. adj. PAT 26.5% YoY to INR3.7b (est.: INR3.4b).
Consol. gross margin contracted by 150bp YoY to 39.7%
due to moderate
inflation in the price of key raw materials for the bakery business. As a
percentage of sales, higher staff cost (40bp YoY) and lower other expenses
(-210bp YoY) implied the EBITDA margin expanded 20bp YoY to 15.8% (in-
line).
FY20 consol.
sales / EBITDA / adj. PAT grew 4.9%/6.3%/21.9% YoY.
BRIT witnessed a segmental uptick over Jan–Feb’20 (unlike FMCG peers)
and its rural initiatives have also enabled growth.
BRIT reported an average 24% increase in the first two months of 1QFY21
owing to: (a) high in home consumption and (b) the company’s nimbleness
in ensuring faster availability of products compared to peers. The
management believes the trust in brands also plays a big role in times when
safety is a concern.
In 1QFY21, the outlook on all commodities is weak, including palm oil and
milk, which were up 18% YoY and 50% YoY, respectively, in 4QFY20.
ICD is at the same level as a year ago, i.e., at around INR6b, but higher than
the earlier commitment of not exceeding INR5b levels.
Sales/EBITDA in-line; PAT beat on lower taxes and higher other income
Highlights from management commentary
Mar-19
50.7
12.4
15.8
21.2
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.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
Britannia Industries
Valuation and view
Consol. Quarterly Performance
Y/E March
Base business volume growth (%)
Net Sales
YoY change (%)
Gross Profit
Margins (%)
EBITDA
Margins (%)
YoY growth (%)
Depreciation
Interest
Other Income
PBT
Tax
Rate (%)
Adjusted PAT
YoY change (%)
E: MOFSL Estimates
1Q
11.0
25,438
12.4
10,175
40.0
3,894
15.3
18.5
356
24
420
3,933
1,352
34.4
2,581
19.5
We have increased our FY21/FY22 EPS estimate by 19.8%/15.4% on account of:
(a) significantly stronger than expected topline growth over Apr–May’20, (b)
recovery in category growth after a long time over Jan–Feb (pre COVID-19), (c)
the expectation of in-home consumption continuing to be reasonably strong for
the large part of the year, and (d) a benign outlook on all raw materials.
While the structural story is attractive, the increase in ICD beyond earlier-guided
threshold levels, problems with group-level companies, and the fact that the
company seems to have chosen to have both debt and cash on the books,
thereby leading to consequent concerns over ROCE, would keep the target
multiple in check.
Valuing the company at 45x FY22 EPS, we arrive at a target price of INR3,470,
leading to 1% downside to CMP. Maintain
Neutral.
FY19
2Q
3Q
4Q
11.0
7.0
7.0
28,696 28,424 27,990
12.7
10.7
10.3
11,491 11,737 11,531
40.0
41.3
41.2
4,544 4,518 4,366
15.8
15.9
15.6
20.3
13.4
9.9
369
424
469
24
30
13
440
600
618
4,590 4,664 4,502
1,559 1,658 1,557
34.0
35.5
34.6
3,031 3,007 2,946
16.2
14.1
11.7
FY20
FY19
FY20
2Q
3Q
4Q
3.0
3.0
0.0
9.0
2.3
30,488 29,827 28,677 110,547 115,996
6.2
4.9
2.5
11.5
4.9
12,247 12,185 11,377 44,932 46,721
40.2
40.9
39.7
40.6
40.3
4,922 5,020 4,543 17,334 18,432
16.1
16.8
15.8
15.7
15.9
8.3
11.1
4.1
15.4
6.3
449
467
485
1,619
1,848
161
237
270
91
769
682
652
786
2,065
2,794
4,994 4,969 4,574 17,689 18,609
955 1,273
849
6,125
4,507
19.1
25.6
18.6
34.6
24.2
4,038 3,696 3,725 11,564 14,102
33.2
22.9
26.5
15.2
21.9
(INR m)
FY20 Variance
4QE
(%)
0.0
28,609
0.2
2.2
11,519
40.3
4,543
(0.0)
15.9
4.1
517
253
637
4,409
3.8
984
22.3
3,425
8.8
16.3
1Q
3.0
27,004
6.2
10,912
40.4
3,947
14.6
1.4
448
101
675
4,072
1,430
35.1
2,642
2.4
Key Performance Indicators
Y/E March
1Q
2Y average growth %
Volumes
Sales
EBITDA
PAT
% sales
COGS
Staff cost
Others
Depreciation
YoY change %
COGS
Staff cost
Others
Other income
EBIT
E: MOFSL Estimates
6.5
9.1
11.2
9.0
60.0
4.3
20.4
1.4
10.0
17.3
14.1
19.3
19.8
FY19
2Q
8.0
9.7
15.9
13.8
60.0
3.8
20.4
1.3
8.6
1.0
23.1
-13.5
21.3
3Q
9.0
11.6
20.1
16.8
58.7
4.1
21.3
1.5
6.0
25.0
20.7
66.9
12.0
4Q
9.0
11.7
19.4
18.4
58.8
3.9
21.7
1.7
5.4
-0.2
29.2
39.1
9.8
1Q
7.0
9.3
9.9
10.9
59.6
4.5
21.3
1.7
5.4
11.0
10.9
60.6
-1.1
FY20
2Q
7.0
9.5
14.3
24.7
59.8
4.1
20.0
1.5
6.0
14.4
3.8
55.0
7.2
FY19
3Q
5.0
7.8
12.3
18.5
59.1
4.1
19.9
1.6
5.7
3.9
-1.7
8.6
11.2
4Q
3.5
6.4
7.0
19.1
60.3
4.2
19.6
1.7
5.1
11.7
-7.5
27.2
4.1
8.1
10.5
16.5
14.4
59.4
4.0
21.0
1.5
7.4
10.0
21.8
24.1
15.6
5.6
8.2
10.9
18.6
59.7
4.2
20.2
1.6
5.6
10.2
1.0
35.3
5.5
FY20
3 June 2020
2
 Motilal Oswal Financial Services
Britannia Industries
Key Exhibits
Exhibit 1: BRIT’s base business volumes were likely flat YoY in 4QFY20
BRIT's base business volume growth (%)
10
10
10
5
2
2
2
11
11
11
11
7
7
3
3
3
0
Source: Company, MOFSL
Standalone performance
In 4QFY20, sales, EBITDA and adj. PAT grew 0.9%, 1.9%, and 31.6% YoY,
respectively. The EBITDA margin was up 20bp to 16%.
Imputed subsidiary performance
Sales and EBITDA grew sharply by 34.3% YoY and 67.2% YoY, respectively. On
the other hand, adj. PAT registered loss of INR88m, against profit of INR46m in
the base quarter. Subsidiary EBITDA margin expanded 270bp YoY to 13.7%
during the quarter.
Exhibit 2: Accelerated market share gains in 4QFY20
Source: Company, MOFSL
3 June 2020
3
 Motilal Oswal Financial Services
Britannia Industries
Exhibit 3: Overall commodity inflation was moderate at ~4% in 4QFY20
Source: Company presentation
Exhibit 4: Driving rural distribution and gaining market share in the Hindi belt
Source: Company presentation
Exhibit 5: Sustainability is a key focus area for BRIT; it launched multiple initiatives for the underprivileged sections affected
by the lockdown
Source: Company presentation
3 June 2020
4
 Motilal Oswal Financial Services
Britannia Industries
Conference call highlights
Key highlights
4QFY20 has witnessed strong growth over Jan–Feb compared with 9MFY20.
Sales and profits for the quarter are estimated to have been impacted by 7–10%
due to the COVID-19-led disruption.
BRIT witnessed a segmental uptick over Jan–Feb’20 (unlike FMCG peers) and its
rural initiatives have also enabled growth.
Direct reach stood at 2.22m outlets as of the end of Feb’20, against 2.1m as of
Mar’19.
Modest inflation of 2% YoY was witnessed on flour and 5% YoY on sugar in
4QFY20. In 1QFY21, the outlook on all commodities is weak, including palm oil
and milk, which were up 18% YoY and 50% YoY, respectively, in 4QFY20.
BRIT reported an average 24% increase in the first two months of 1QFY21 owing
to: (a) high in-home consumption and (b) the company’s nimbleness in ensuring
faster availability of products compared to peers. The management believes the
trust in brands also plays a big role in times when safety is a concern.
Importantly, secondary sales over Apr–May’20 are likely to be just 2–3% lower
than primary sales growth.
BRIT focused on producing more premium biscuits given the production
constraints. Contract manufacturing was also utilized as much as possible.
Until May’20, BRIT was manufacturing largely high-velocity SKUs given the
supply chain constraints. June onward, it would manufacture other SKUs as well,
as customers now seek variety.
There is currently a lack of clarity on how demand would be for the rest of the
year, but the management is reviewing and reacting on a daily basis.
By now, peers have also got their acts together, but the management still
expects BRIT to do better.
Response to newer products and product pipeline
Cream wafers and milk drinks are doing well.
The test marketing of croissants was affected by the lockdown as the
Ranjangaon facility was in the middle of the COVID-19 territory.
The product test marketing of snacks in Andhra was disrupted by COVID-19, but
the company expects it to be back to normal soon.
Winkin Cow Yogurt was launched in East India and has received a good initial
response.
Complete normalcy may not be witnessed for another year or so. BRIT would
gradually resume the innovation funnel.
Initial response to COVID-19
BRIT ensured quick approval from authorities by coordinating consistently with
the center, states, and districts. This enabled them to resume operations
quickly.
All factories, depots, and distribution centers are now operational, with safety
compliance and social distancing in place.
The distribution reach was 100% in the first fortnight of the lockdown.
3 June 2020
5
 Motilal Oswal Financial Services
Britannia Industries
Performances of adjacencies
Adjacencies such as bread did well in FY20, with high single-digit sales growth
and profitability; dairy profitability was maintained and international business,
apart from the Middle East, grew in the double digits.
Other points
ICDs are at the same level as a year ago, i.e., at around INR6b.
Incremental investments are in non-group entities.
Loans are also to non-group companies.
Capex was INR 2.25b in FY20. It is likely to be similar in FY21 depending on
demand, but it is currently too early for the management to give a concrete
projection.
The rate of debt on working capital is attractive, enough to retain debt on the
books.
BRIT plans to set up greenfield capacities in Bihar and Tamil Nadu.
The Ranjangaon facility has resumed normal operations.
Valuation and view
What happened in the last decade?
The past decade ending FY20 was a phenomenal one for BRIT on account of: (a)
huge market share gains, (b) strengthening distribution reach (particularly direct
reach), and (c) better product development v/s peers.
The distribution advantage is particularly important for food players such as
Britannia as the velocity of food consumption is much higher than personal care
products. With the stated goal of being a total foods player, the company’s
utilization of this reach would play a crucial role in expanding to other food sub-
categories.
Financial performance over the last decade has been splendid, with the
company reporting sales CAGR of ~12% and EBITDA and PAT CAGR of ~27%
each. This is easily among the best of breed for the decade v/s other Consumer
peers.
Financial performance in the past five years has also been healthy, with ~8%
sales growth CAGR, ~16% EBITDA growth CAGR, and ~20% PAT CAGR.
Our view on the stock
We have increased our FY21/FY22 EPS estimate by 19.8%/15.4% on account of:
(a) significantly stronger than expected topline growth over Apr-May’20, (b)
recovery in category growth after a long time over Jan–Feb (per COVID-19), (c)
the expectation of in-home consumption continuing to be reasonably strong for
the large part of the year, and (d) a benign outlook on all raw materials.
While the structural story is attractive, the increase in ICD beyond earlier-guided
threshold levels, problems with group-level companies, and the fact that the
company seems to have chosen to have both debt and cash on the books,
thereby leading to consequent concerns over ROCE, would keep the target
multiple in check.
Valuing the company at 45x FY22 EPS, we arrive at a target price of INR3,470,
leading to 1% downside to CMP. Maintain
Neutral.
3 June 2020
6
 Motilal Oswal Financial Services
Britannia Industries
Exhibit 6: There is an increase of 19.8%/15.4% in our PAT forecasts for FY21/FY22
INR m
Net Sales
EBITDA
Adj. PAT
New
FY21E
FY22E
132,271
147,007
22,599
25,172
16,709
18,550
Old
FY21E
FY22E
121,045
135,921
19,111
22,129
13,944
16,069
% Change
FY21E
FY22E
9.3%
8.2%
18.2%
13.8%
19.8%
15.4%
Source: Company, MOFSL
Exhibit 7: BRIT P/E (x)
70.0
50.0
30.0
15.0
10.0
P/E (x)
Min (x)
49.2
35.2
21.3
64.7
Avg (x)
+1SD
Max (x)
-1SD
56.8
Exhibit 8: Consumer sector P/E (x)
51.0
41.0
31.0
23.9
21.0
P/E (x)
Min (x)
46.1
40.5
34.8
40.9
Avg (x)
+1SD
Max (x)
-1SD
29.1
Source: Company, MOFSL
Source: Company, MOFSL
3 June 2020
7
 Motilal Oswal Financial Services
Britannia Industries
Financials and Valuations
Income statement
Y/E March
Net Revenues
Change (%)
Raw Material Cost
Gross Profit
Margin (%)
EBITDA
Change (%)
Margin (%)
Depreciation
Int. and Fin. Charges
Financial Other Income
PBT
Tax
Deferred Tax
Tax Rate (%)
PAT
Change (%)
Margin (%)
Non-rec. (Exp.)/Income
Reported PAT
Balance sheet
Y/E March
Share Capital
Reserves
Networth
Minority Interest
Loans
Capital Employed
Gross Block
Less: Accum. Depn.
Net Fixed Assets
Goodwill on consolidation
Capital WIP
Investments
Deferred Liability
Currents Assets
Inventory
Account Receivables
Cash and Bank Balance
Others
Curr. Liab. & Prov.
Account Payables
Other Liabilities
Net Current Assets
Net Assets
E: MOFSL Estimates
2016
83,972
6.9
50,127
33,845
40.3
12,144
40.6
14.5
1,134
49
1,244
12,205
3,967
-6
32.5
8,244
43.6
9.8
0
8,246
2017
90,541
7.8
55,888
34,653
38.3
12,781
5.2
14.1
1,193
55
1,505
13,039
4,019
178
32.2
8,842
7.3
9.8
0
8,845
2018
99,140
9.5
61,071
38,069
38.4
15,017
17.5
15.1
1,421
76
1,664
15,184
5,137
5
33.9
10,041
13.6
10.1
0
10,040
2019
110,547
11.5
65,615
44,932
40.6
17,334
15.4
15.7
1,619
91
2,065
17,689
5,998
127
34.6
11,564
15.2
10.5
0
11,555
2020
115,996
4.9
69,275
46,721
40.3
18,432
6.3
15.9
1,848
769
2,794
18,609
4,477
30
24.2
14,102
21.9
12.2
-170
13,936
2021E
132,271
14.0
77,764
54,507
41.2
22,599
22.6
17.1
2,275
1,034
3,040
22,330
5,620
0
25.2
16,709
18.5
12.6
0
16,709
(INR m)
2022E
147,007
11.1
86,494
60,512
41.2
25,172
11.4
17.1
2,477
1,195
3,290
24,790
6,240
0
25.2
18,550
11.0
12.6
0
18,550
(INR m)
2022E
241
46,270
46,511
0
13,719
60,230
28,776
-11,636
17,140
1,390
396
30,701
-69
34,289
10,156
4,470
3,223
16,441
23,754
14,650
9,104
10,535
60,230
2016
240
20,677
20,917
25
1,311
22,252
18,142
-9,799
8,343
1,159
901
7,884
-444
16,208
4,407
1,706
877
9,219
12,687
7,691
4,996
3,521
22,252
2017
240
26,724
26,964
26
1,246
28,236
12,309
-1,988
10,322
1,278
301
4,869
-231
24,088
6,615
1,792
1,208
14,474
12,852
7,573
5,279
11,236
28,236
2018
240
33,822
34,062
131
2,007
36,201
15,554
-3,380
12,174
1,282
2,028
10,793
-226
25,377
6,528
3,046
1,864
13,938
15,679
9,941
5,738
9,698
36,201
2019
240
42,292
42,533
327
1,560
44,420
20,615
-5,035
15,579
1,304
1,012
14,763
-99
29,623
7,814
3,942
1,098
16,768
17,960
11,405
6,555
11,663
44,420
2020
241
43,788
44,028
357
15,141
59,525
24,276
-6,884
17,392
1,390
396
28,932
-69
30,117
7,410
3,204
1,229
18,275
18,770
11,163
7,607
11,347
59,525
2021E
241
44,964
45,205
0
14,393
59,597
26,276
-9,158
17,117
1,390
396
29,817
-69
32,373
8,879
4,039
3,376
16,079
21,564
13,243
8,320
10,809
59,597
3 June 2020
8
 Motilal Oswal Financial Services
Britannia Industries
Financials and Valuations
Ratios
Y/E March
Basic (INR)
EPS
BV/Share
DPS
Payout (%)
Valuation (x)
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)
Cash flow statement
Y/E March
OP Profit
Dep
Financial Other Income
Net Interest Paid
Direct Taxes Paid
Inc in WC
CF from Operations
(Inc)/Dec in FA
Free Cash Flow
(Pur.)/Sale of Investments
Other Non Rec Exp
CF from Investments
Issue of Shares
Inc in Debt
Dividend Paid
Other Item
CF from Fin. Activity
Inc/Dec of Cash
Add: Beginning Balance
Closing Balance
E: MOFSL Estimates
2016
34.3
87.2
10.0
29.1
102.2
9.9
68.8
40.3
0.3
49.5
41.1
80.0
7
3.8
0.1
2017
36.8
112.4
11.0
29.9
95.3
9.3
65.5
31.2
0.3
36.9
31.1
45.6
7
3.2
0.0
2018
41.8
141.9
12.5
29.9
83.9
8.4
55.4
24.7
0.4
32.9
27.9
41.5
11
2.7
0.1
2019
48.1
177.0
15.6
32.3
72.9
7.5
47.8
19.8
0.4
30.2
25.5
41.9
13
2.5
0.0
2020
58.6
183.1
35.7
60.9
59.9
7.1
45.0
19.2
1.0
32.6
24.2
44.5
10
1.9
0.3
2021E
69.5
188.0
55.6
80.0
50.5
6.2
36.5
18.7
1.6
37.5
25.5
55.3
11
2.2
0.3
2022E
77.1
193.4
61.7
80.0
45.5
5.6
32.7
18.2
1.8
40.5
28.3
65.4
11
2.4
0.3
(INR m)
2022E
24,790
2,477
-3,290
-1,195
6,240
-121
19,053
-2,500
16,553
-884
3,291
-93
0
-673
17,244
1,195
-19,112
-152
3,376
3,223
2016
12,205
1,134
-368
675
4,032
-1,329
9,592
-2,494
7,098
-2,109
-3,914
-8,517
43
0
2,308
197
-2,462
-1,387
2,263
877
2017
13,040
1,193
-497
843
3,966
4,514
4,413
-3,518
895
3,593
-1,206
-1,131
58
0
2,884
125
-2,951
331
877
1,208
2018
15,184
1,421
-470
964
4,965
-2,283
12,488
-4,212
8,276
-5,374
72
-9,514
151
0
3,174
-706
-2,318
657
1,208
1,864
2019
17,689
1,619
-487
1,277
5,961
25
11,558
-3,994
7,564
-3,341
-1,462
-8,797
298
-419
3,544
-138
-3,527
-766
1,864
1,098
2020
18,439
1,848
-684
999
5,033
-1,274
14,845
-2,434
12,411
-13,266
406
-15,294
7,449
-2,305
4,325
240
579
130
1,098
1,229
2021E
22,330
2,275
-3,040
-1,034
5,620
-2,685
19,663
-2,000
17,663
-884
2,683
-201
0
-748
15,533
1,034
-17,315
2,147
1,229
3,376
3 June 2020
9
 Motilal Oswal Financial Services
Britannia Industries
NOTES
3 June 2020
10
 Motilal Oswal Financial Services
Britannia Industries
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
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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.
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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
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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
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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
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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
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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
********************************************************************************************************************************
3 June 2020
11
 Motilal Oswal Financial Services
Britannia Industries
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
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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,
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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.
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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,
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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
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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
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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
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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.
3 June 2020
12