Consumer

India I Equities
Update

06 June 2016

India FMCG Sensex: 26777

Despite slowdown, a better-than-expected Q4 Nifty: 8202

Nielsen suggests continuing weakness in the FMCG sector, with a

mere 7% growth (vs. 6.8% in Q4 CY15). Our analysis of 13 companies
suggests 8% domestic revenue growth, slightly ahead of the Nielsen
market survey result. Tailwinds continued to aid margins and profit
growth (15% growth for 10 companies). We expect margins to continue
expanding in FY17, though at a slower momentum. We are positive on
select stocks with initiatives-led growth drivers, Britannia and Emami.
Despite the slowdown, many FMCG operators outstrip Nielsens
reported market growth. Our analysis of 13 companies suggests revenue
growth at 8%, ahead of the Nielsen survey reports of mere 7%. Nevertheless,
the price-driven component for the industry, at 1.6%, has been the weakest
for past many quarters, according to Nielsen.
Margin tailwinds continue to buoy. Major inputs such as copra (down
40% yoy in Q4), LLP (down 25% yoy), LAB (down 12% yoy) and HDPE
(down 6% yoy) have been soft during the quarter, driving the margin
expansion. While we expect the helpfully soft input prices to assist in the
gross-margin expansion in H1FY17, the rise in agri-commodity prices such as
palm oil and sugar could contain the margin expansion for a few operators.
Outlook and Valuations. For the 10 FMCG companies we cover we are
building in 12% revenue growth in FY17 (adjusted; vs. 9% in FY16) and 22%
earnings growth (vs. 24%). FMCG stocks are now quoting at rich valuations.
Nevertheless, given the expectation of 22% earnings growth and the absence Ajay Thakur
of a cyclical recovery, the high valuations are likely to persist and see a time- Research Analyst
wise correction. Within our FMCG universe, consistent and predictable
stocks could still deliver decent returns from their ruling market prices.
Our preferred picks of the FMCG pack are: (a) Britannia TP: `3,400, (b)
Emami TP: `1,300.

Key Data M Cap Sh Price EPS PE RoE (FY17) Dividend Yield TP RECO
Company Name ` bn ` FY17e FY18e FY17e FY18e (%) (FY16e %) `
Dabur 537 305 8.3 9.6 37 32 32.5 1.0 315 Buy
GCPL 533 1,568 40.8 48.4 38 32 24.6 0.5 1,460 Hold
Marico 327 253 6.9 8.1 37 31 38.8 1.6 285 Buy
Britannia 332 2,763 80.4 97.1 34 28 48.9 1.2 3,400 Buy
Emami 235 1,038 31.2 37.3 33 28 45.6 0.8 1,300 Buy
Bajaj Corp 57 388 19.2 22.3 20 17 58.5 3.8 560 Buy
Jyothy Labs 53 292 10.7 11.5 27 25 23.0 2.1 340 Hold
Zydus Wellness 30 771 30.8 35.1 25 22 23.1 1.0 960 Buy
- Foods
DFM 19 1,909 31.8 42.7 60 45 38.6 0.1 1,500 Sell
AgroTech Foods 12 496 14.8 18.3 33 27 10.4 0.4 600 Buy
Source: Companies, Anand Rathi Research *Closing prices of Friday 3rd June

Anand Rathi Share and Stock Brokers Limited (hereinafter ARSSBL) is a full-service brokerage and equities-research firm and the views expressed therein are solely of
ARSSBL and not of the companies which have been covered in the Research Report. This report is intended for the sole use of the Recipient. Disclosures and analyst
certifications are present in the Appendix.

Anand Rathi Research India Equities

06 June 2016 India FMCG Despite slowdown, a better-than-expected Q4

Revenue momentum constrained;

volume growth improves
A Nielsen survey report puts the FMCG sector as having grown 7% in
Q4, a morsel better than the quarter prior. However, the price-led
component for the sector is at its weakest of the past many quarters.
Revenue momentum for 13 companies in Q4 has been restrained, with
barely half of the companies experiencing double-digit volume growth (vs.
more than three-fourths of them reporting double-digit revenue growth in
FY15).

Fig 1 FMCG market growth

(%)
12

10
3.9
2.3
8
The FMCG sector says Nielsen 4.6
grew 7% in Q4 FY16, driven by 6 4.3
5.1
1.6 1.6
5.4% volume growth, and just 4.5 5.0
1.6% price-led growth (the lowest 4
7.1 7.4
of the past many quarters) 5.2 5.1 5.4
2 3.9 4.0
2.3 2.1
0
Q1CY14

Q2CY14

Q3CY14

Q4CY14

Q1CY15

Q2CY15

Q3CY15

Q4CY15

Q1CY16
Consol vol gr Pricing gr Nominal gr
Source: Nielsen, Colgate, Anand Rathi Research.

Fig 2 Revenue-growth trend (% yoy)

Company FY13 FY14 FY15 Q1 FY16 Q2 FY6 Q3 FY6 Q4 FY6 FY16
HUL 16 9 10 5 5 3 3 4
Colgate 18 15 12 6 4 2 7 4
Asian Paints 13 16 12 8 4 14 12 10
GCPL 32 19 9 11 10 6 9 9
Marico 15 2 22 10 4 7 7 7
Dabur 16 15 10 11 9 2 11 8
Emami 17 7 22 22 17 14 21 18
Jyothy Labs 21 20 14 8 9 8 12 9
Bajaj Corp 28 11 23 14 11 4 (3) 6
Zydus Wellness 15 4 7 3 2 (3) 13 4
DFM Foods 33 17 10 9 33 47 44 35
AgroTech Foods 12 (3) (1) 1 1 4 7 3
Britannia 13 12 14 13 12 10 8 11
Source: Company, Anand Rathi Research
Note: Consolidated growth yoy for all players

Anand Rathi Research 2

06 June 2016 India FMCG Despite slowdown, a better-than-expected Q4

Volume momentum slow, but improving

Most FMCG manufacturers reported greater volume growth momentum
in Q4 than in earlier quarters. Paints and value-added hair oils did well.
However, seasonal categories (summer brands) such as soaps, fruit juices,
talcum powder, etc., have been somewhat constrained due to the
prolonged winter. Winter brands, however, such as skin creams,
chyawanprash, etc., reported better figures due to the protracted winter. The
herbal focus was visible for most manufacturers with a slew of launches on
the natural and herbal (N&H) positioning. Thus, growth in the N&H-
positioned brands was far ahead of other brands, and seen driving industry
growth. For instance, Daburs toothpaste growth came at 20% in Q4,
Emamis OTC range grew 30%, and even Colgates newly-launched
Colgate Active Salt toothpaste improved market share to 1.1% in just few
quarters of its launch. HUL volumes grew just 4%, but 6% in FY16 as the
companys efforts, promotions and discounts pulled up growth.

Fig 3 Volume-growth trend

Company FY13 FY14 FY15 Q1 FY16 Q2 FY6 Q3 FY6 Q4 FY6 FY16
HUL 7 4 5 6 7 6 4 6
Colgate (toothpastes) 11 10 6 3 3 1 4 3
Asian Paints 7 12 8 10 8 16 13 12
GCPL (soaps) * 10 3 10 13 3 2 (6) 4
GCPL (home insecticides) * 23 18 9 15 13 15 10 14
GCPL (hair colour) * 15 27 11 12 17 (1) 7 10
Marico 11 6 6 6 6 11 8 7
Parachute 10 4 6 8 11 4 6 7
Saffola 7 9 6 4 4 17 13 9
Value-added hair-oils 24 11 10 14 8 21 11 14
Dabur 10 10 8 8 5 (3) 7 4
Emami 15 1 13 15 10 9 18 12
Jyothy Labs na 15 9 6 9 9 14 9
Bajaj Corp 20 8 14 12 8 3 (5) 5
AgroTech Foods (Sundrop vol) na na na 7 7 4 5 6
AgroTech Foods (Foods val) 29 15 13 7 6 8 18 10
Britannia na 2 8 12 11 2 10 11
Source: Company, Anand Rathi Research
* GCPLs segment growth figure represents value growth

Anand Rathi Research 3

06 June 2016 India FMCG Despite slowdown, a better-than-expected Q4

EBITDA margin expansion continues

Major inputs such as copra (down 40% yoy in Q4), LLP (down 25% yoy),
LAB (down 12% yoy) and HDPE (down 6% yoy) have been soft during
the quarter. However, food products have seen a sharp rise in agri-
commodity prices such as sugar and palm oil. Thus, most non-foods
operators experienced handsome gross-margin gains during the quarter.
While we expect the helpful input prices to aid in the gross-margin
expansion in H1 FY17, the rise in agri-commodity prices could restrict
margin expansion for Britannia, Dabur, Emami and DFM Foods. A part
of these gross-margin gains has been ploughed back into brand investment
(A&P expenditure rose 15-20% for FMCG companies) and to support
new launches. Promotions still took up a large amount of the A&P spends.
We expect the EBITDA margins to continue to expand in FY17, though
at a slower pace.

Fig 4 EBITDA margin expansion trend (% yoy)

Category FY13 FY14 FY15 Q1 FY16 Q2 FY6 Q3 FY6 Q4 FY6 FY16

HUL 100 50 100 150 40 30 130 90

Colgate (100) (90) 230 (30) 600 320 160 230
Major inputs such as copra
(down 40% yoy in Q4), LLP Asian Paints (130) (30) (10) 220 170 330 190 230
(down 25% yoy), LAB (down GCPL (210) (20) 110 220 200 190 130 180
12% yoy) and HDPE (down Marico 160 230 (70) 190 180 270 260 230
6% yoy) were benign during the
Dabur (20) (20) 40 120 120 90 150 190
quarters. However, a few foods
Emami (45) 360 (10) 130 340 110 160 170
input such as palm oil (up
~20% yoy in Q4) and sugars Jyothy Labs 230 0 (90) 30 310 410 480 300
(up 25% qoq) saw costs rise Bajaj Corp 380 (70) 130 210 330 310 180 220
Zydus Wellness 50 90 (110) 70 25 (427) 730 110
DFM Foods (240) (70) 210 (260) 130 300 290 130
AgroTech Foods 50 90 (110) 60 5 (40) (260) (60)
Britannia 90 230 190 480 370 370 140 310
Source: Company, Anand Rathi Research

Anand Rathi Research 4

06 June 2016 India FMCG Despite slowdown, a better-than-expected Q4

Profit growth healthy

Despite the decelerating revenue momentum, most of the FMCG players
have reported better profitability helped by the lower input costs. We
believe profit growth of the 10 mid-cap companies we cover would
continue healthy in FY17, at 22% (vs. 24% the year prior). We expect
some tailwinds of the benign input prices in H1FY17 and cost-savings
measures to drive margin expansion for these FMCG companies.

Fig 5 Profit-growth trend (% yoy)

Category FY13 FY14 FY15 Q1 FY16 Q2 FY6 Q3 FY6 Q4 FY6 FY16

HUL 29 13 8 3 2 5 19 6
Colgate 9 (1) 13 8 21 22 14 3
Asian Paints 9 9 16 34 16 40 19 25
GCPL 12 13 18 33 24 20 17 22
Marico 14 30 21 28 27 24 17 25
Dabur 19 19 17 24 19 13 17 18
Emami 16 30 20 43 33 7 7 16

Our 10 midcap FMCG Jyothy Labs 42 33 (3) 7 96 82 53 48

companies under coverage have Bajaj Corp 38 7 24 17 21 16 (1) 18
reported 15% yoy profit growth in Zydus Wellness 44 7 5 14 7 (7) 28 8
Q4FY16.
DFM Foods (39) 51 61 (23) 99 112 70 67
Agro Tech Foods 16 2 (13) (14) (36) (32) (51) (37)
Britannia 27 54 40 67 49 46 14 51
Source: Company, Anand Rathi Research
Emamis quarterly and annual figures are on adjusted / recurring basis

Anand Rathi Research 5

06 June 2016 India FMCG Despite slowdown, a better-than-expected Q4

Company results
Fig 6 Dabur
(` m) Q4 FY16 Q4 FY15 % Chg (yoy) Comments
Net sales 21,573 19,448 10.9
The 7% volume growth was better than
Gross margin (%) 54.7 53.4 130bps expected. While H1 FY17 could see demand
EBIDTA 4,114 3,407 20.7 headwinds, especially from rural markets,
EBIDTA margin (%) 19.1 17.5 157bps management was hopeful of delivering better
volume growth in FY17 than in FY16
Adjusted PAT 3,319 2,848 16.6
Source: Company, Anand Rathi Research.

Fig 7 GCPL
(` m) Q4 FY16 Q4 FY15 % Chg (yoy) Comments
Net sales 22,661 20,826 8.8 At 6% in Q4, volume growth was a bit muted.
Margin gains were driven by low input prices,
Gross margin (%) 56.8 55.3 154bps and low-cost palm-oil inventory (palm prices
EBIDTA 4,406 3,775 16.7 have sharply risen). International business
EBIDTA margin (%) 19.4 18.1 132bps grew 18% in constant currency Q4. Going
ahead, inorganic growth (acquisition of
Adjusted PAT Strength of Nature and Canon Chem.) will aid
3,072 2,633 16.7 growth in international business
Source: Company, Anand Rathi Research.

Fig 8 Britannia
(` m) Q4 FY16 Q4 FY15 % Chg (yoy) Comments
Net sales 21,898 20,318 7.8 Volume growth was 10%. Margin gain was
largely driven by cost-saving initiatives, as an
Gross margin (%) 41.5 41.5 -1bps adverse mix and rising input costs led to flat
EBIDTA 2,697 2,211 21.9 gross margins. Expect 3-5% price rises in
EBIDTA margin (%) 12.3 10.9 143bps FY17, which should aid revenue growth
(even as volume growth eases to mid-single
Adjusted PAT 1,903 1,674 13.7 digits)
Source: Company, Anand Rathi Research..

Fig 9 Marico
(` m) Q4 FY16 Q4 FY15 % Chg (yoy) Comments
Net sales 13,028 12,230 6.5
Volumes grew ~8.5% aided by value-added
Gross margin (%) 54.1 47.8 629bps hair oils and Saffola. Management expects
EBIDTA 2,123 1,680 26.4 copra prices to start rising from H2 FY17, and
EBIDTA margin (%) 16.3 13.7 256bps drive higher revenue momentum (subdued
currently, due to a price cut in Parachute)
Adjusted PAT 1,288 1,101 16.9
Source: Company, Anand Rathi Research.

Fig 10 Emami
(` m) Q4 FY16 Q4 FY15 % Chg (yoy) Comments
Net sales 6,708 5,537 21.2 18% volume growth (incl. the Kesh King
acquisition). Organic growth was 10% while
Gross margin (%) 68.4 64.4 409bps
Kesh King contributed `600m-650m (lower
EBIDTA 1,823 1,403 29.9 than the `700m in Q3). Management
EBIDTA margin (%) 27.2 25.3 184bps expected margin expansion to hold, though at
a lower pace, aided by the better mix, price
Adjusted PAT 1,486 1,383 7.4 hikes and benign input prices
Source: Company, Anand Rathi Research.

Anand Rathi Research 6

06 June 2016 India FMCG Despite slowdown, a better-than-expected Q4

Fig 11 Bajaj Corp

(` m) Q4 FY16 Q4 FY15 % Chg (yoy) Comments
Net sales 2,278 2,354 -3.2
A high-base quarter (23% volume growth in
Gross margin (%) 65.8 67.4 -156bps Q4 FY15) and a weak demand environment
EBIDTA 750 734 2.2 led to a 5% volume decline in Q4 FY16. The
EBIDTA margin (%) 32.9 31.2 177bps company hasn't increased prices to drive
volume growth in FY17
Adjusted PAT 658 626 5.0
Source: Company, Anand Rathi Research.

Fig 12 Jyothy Labs

(` m) Q4 FY16 Q4 FY15 % Chg (yoy) Comments
Net sales 4,452 3,961 12.4 Volumes grew 14% while the EBITDA margin
expanded by more than 485bps, aided by
Gross margin (%) 50.0 48.0 195bps
gross margin expansion and lower employee
EBIDTA 626 365 71.6 expenses (front-loading of ESOPs
EBIDTA margin (%) 14.1 9.2 485bps expenses). Change in management would be
a key monitorable with respect to new
Adjusted PAT 246 161 53.1 strategies and their execution
Source: Company, Anand Rathi Research.

Fig 13 Zydus Wellness

(` m) Q4 FY16 Q4 FY15 % Chg (yoy) Comments
Net sales 1,093 972 12.5 5% growth in gross revenue. The EBITDA
Gross margin (%) 73.0 67.7 538bps margin expanded by more than 700bps,
aided by benign input costs. Management
EBIDTA 230 134 72.2
expects a V-shaped revenue recovery aided
EBIDTA margin (%) 21.0 13.7 730bps by new products, entry into the international
Adjusted PAT 263 206 27.9 market and a possible acquisition
Source: Company, Anand Rathi Research.

Fig 14 AgroTech Foods

(` m) Q4 FY16 Q4 FY15 % Chg (yoy) Comments
Net sales 1,975 1,852 6.6
Foods portfolio for Agro Tech (excl. The
Gross margin (%) 32.4 34.0 -163bps institutional portfolio) grew 18% yoy.
EBIDTA 166 205 -18.8 Higher A&P spending and the lower
EBIDTA margin (%) 8.4 11.0 -263bps gross margin in Sundrop slashed the
EBITDA margin
Adjusted PAT 72 146 -50.5
Source: Company, Anand Rathi Research.

Fig 15 DFM Foods

(` m) Q4 FY16 Q4 FY15 % Chg (yoy) Comments
Net sales 1228 850 44.5
The new unit coming on stream, the
Gross margin (%) 40.3 38.8 150bps focus on variants and attractive
EBIDTA 184 103 78.7 promotional gifts have driven strong
EBIDTA margin (%) 15.0 12.1 287bps growth in the quarter. Operating
leverage led to the better margin.
Adjusted PAT 116 69 69.6
Source: Company, Anand Rathi Research.

Anand Rathi Research 7

06 June 2016 India FMCG Despite slowdown, a better-than-expected Q4

Valuations
Rich; select stocks provide the potential
For the 10 FMCG companies we cover we are building in 15% revenue
growth in FY17 (including inorganic growth for GCP and Emami;
excluding that, growth would be 12%) vs. 9% a year earlier, and 22%
earnings growth (vs. 24% in FY16).
FMCG stocks are now quoting at rich valuations. And, given the
expectation of 22% earnings growth and the absence of a cyclical recovery,
the high valuations are likely to persist and see a time-wise correction.
Within our FMCG universe, consistent and predictable companies could
yet provide a decent upside from the present ruling market prices.
Winners of the quarter
We are positive on select stocks in Asian Paints Unrated (revenue up 14%, with domestic volumes up
the FMCG pack (such as 13%; the EBITDA margin expanded 190bps to 16.6%, PAT grew
Britannia and Emami), with 19% yoy)
initiatives-led growth drivers.
Jyothy Labs (revenue up 12%, with domestic volumes up 14%; the
EBITDA margin expanded 480bps to 14.1%, and adj. PAT shot up
53% yoy)
Marico (revenue up 7%, with domestic volumes up 8.4%; the
EBITDA margin expanded 170 bps to 13.8%, and PAT grew 17%
yoy).
Weak performer: Bajaj Corp - Revenue declined 3%, with domestic
volumes sliding 5%; the EBITDA margin expanded 170bps to 32.9%, and
PAT slipped 1% yoy

Our preferred picks of the FMCG pack are:

Britannia TP: `3,400.
Britannia has re-gained from Parle its leading position in biscuits. Its
premium focus and benign input prices have helped it to 50% earnings
CAGR over FY11-16. With high growth behind it, management is set on
leveraging its operational efficiencies amid the weaker demand
environment. However, the company leadership under Mr Berry, and a
host of distribution, product innovation and marketing initiatives should
sustain a 20% earnings CAGR over FY16-18, ahead of the industry and its
peer set. A correction in the stock offers investors the ideal entry
opportunity. We have a Buy on Britannia with a TP of `3,400.
Emami TP: `1,300
We are sanguine about Emami from a medium-term perspective.
Managements guidance of 15-16% organic growth could be driven by
greater seasonal demand (a very hot summer) and a revival in rural
demand (the forecast of a normal monsoon). Further, a better mix and
softer input prices could sustain margins, even as the company invests in
its brands (A&P expenditure to rise 100-150bps yoy) to drive volume
growth. Hence, we maintain our Buy recommendation, with a TP of
`1,300.

Anand Rathi Research 8

06 June 2016 India FMCG Despite slowdown, a better-than-expected Q4

Fig 16 Valuation table

Sh, RoE Dividend
Key Data M Cap EPS PE TP RECO
Price (FY17) Yield
Company Name ` bn ` FY17e FY18e FY17e FY18e (%) (FY16e %) `
Dabur 537 305 8.3 9.6 37 32 32.5 1.0 315 Buy
GCPL 533 1568 40.8 48.4 38 32 24.6 0.5 1460 Hold
Marico 327 253 6.9 8.1 37 31 38.8 1.6 285 Buy
Britannia 332 2763 80.4 97.1 34 28 48.9 1.2 3400 Buy
Emami 235 1038 31.2 37.3 33 28 45.6 0.8 1300 Buy
Bajaj Ccorp 57 388 19.2 22.3 20 17 58.5 3.8 560 Buy
Jyothy Labs 53 292 10.7 11.5 27 25 23.0 2.1 340 Hold
Zydus Wellness 30 771 30.8 35.1 25 22 23.1 1.0 960 Buy
DFM Foods 19 1909 31.8 42.7 60 45 38.6 0.1 1500 Sell
AgroTech Foods 12 496 14.8 18.3 33 27 10.4 0.4 600 Buy
Source: Anand Rathi Research.

Key Risks
Mounting competition (Patanjali) and a slowdown in rural demand are
key risks to growth revival in the sector, and valuations.
Further, the rise in prices of inputs such as palm oil, sugar, etc., could
put a dampener on earnings.

Fig 17 Major raw materials and changes in prices

Commodity Company and RM as percent of net sales YoY (%) QoQ (%)
Sugar Britannia (6), Nestle (2), Dabur (2-3) 21.3 15.0
Wheat Britannia (15), Nestle (4) 0.8 (0.3)
Soda ash HUL(7), Jyothy Labs (12) (3.6) 0.7
Copra Marico(20-25) (41.4) (18.8)
LAB HUL (7), Jyothy Labs (12) (12.1) (5.7)
HDPE (packaging HUL (8), Dabur (12), Colgate (8), Marico (10), Britannia (5), Emami
(5.5) (2.0)
material) (12)
Palm oil HUL (7), GCPL (7),Britannia (8-10), Nestle (4), Dabur (4) 10.1 24.4
Sunflower oil Agro Tech (20-30), Marico (4) 14.4 0.6
Safflower oil Marico (4) 4.7 (3.2)
Mentha oil Emami (4) 14.7 (2.0)
Liquid paraffin Marico (8), Emami (7), Bajaj Corp (9) (24.9) (4.6)
Source: Anand Rathi Research.

Anand Rathi Research 9

06 June 2016 India FMCG Despite slowdown, a better-than-expected Q4

Price trends Major raw materials

Sugar Liquid Paraffin Safflower oil
(`/quintal) (`/kg) (`/10kg)
4,000 78 1,600
3,500 68 1,400
3,000 58 1,200
2,500 48 1,000
2,000 38 800
1,500 28 600
May-11
Nov-11
May-12
Nov-12
May-13
Nov-13
May-14
Nov-14
May-15
Nov-15
May-16

Sep-11
Apr-11
Oct-11
Apr-12
Oct-12
Apr-13
Oct-13
Apr-14
Oct-14
Apr-15
Oct-15
Apr-16

Dec-12

Aug-14

Nov-15
Feb-12

Mar-14

Jan-15
Jun-15
Apr-11

Oct-13

Apr-16
May-13
Jul-12
Wheat Soda Ash Copra
(`/quintal) (`/50kg) (`/100kg)
1,900 1,300 12,000
1,750 1,225 11,000
10,000
1,600 1,150 9,000
1,450 8,000
1,075 7,000
1,300 1,000 6,000
1,150 5,000
925 4,000
1,000 850 3,000
Nov-11

Nov-12

Nov-13

Nov-14

Nov-15
May-11

May-12

May-13

May-14

May-15

May-16

Nov-11

Nov-12

Nov-13

Nov-14

Nov-15
May-11

May-12

May-13

May-14

May-15

May-16
May-11

May-12

May-13

May-14

May-15

May-16
Nov-11

Nov-12

Nov-13

Nov-14

Nov-15
LAB HDPE (Packing Material) Palm Oil
(`/kg) (`/kg) (`/10kg)
145 130 65,000
135 120 60,000
125 55,000
115 110 50,000
105 100 45,000
40,000
95 90 35,000
85 30,000
75 80
25,000
65 70 20,000
May-11

May-12

May-13

May-14

May-15

May-16
Nov-11

Nov-12

Nov-13

Nov-14

Nov-15
Nov-11

Nov-12

Nov-13

Nov-14

Nov-15
May-11

May-12

May-13

May-14

May-15

May-16

Nov-11

Nov-12

Nov-13

Nov-14

Nov-15
May-11

May-12

May-13

May-14

May-15

May-16
Source: Bloomberg, CMIE, RIL, Company, Anand Rathi Research

Anand Rathi Research 10

Appendix
Analyst Certification
The views expressed in this Research Report accurately reflect the personal views of the analyst(s) about the subject securities or issuers and no part of the
compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research
analyst(s) in this report. The research analysts are bound by stringent internal regulations and also legal and statutory requirements of the Securities and Exchange
Board of India (hereinafter SEBI) and the analysts compensation are completely delinked from all the other companies and/or entities of Anand Rathi, and have
no bearing whatsoever on any recommendation that they have given in the Research Report.

Anand Rathi Ratings Definitions

Analysts ratings and the corresponding expected returns take into account our definitions of Large Caps (>US$1bn) and Mid/Small Caps (<US$1bn) as described
in the Ratings Table below:
Ratings Guide
Buy Hold Sell
Large Caps (>US$1bn) >15% 5-15% <5%
Mid/Small Caps (<US$1bn) >25% 5-25% <5%

Anand Rathi Research Ratings Distribution (as of 6 June 2016)

Buy Hold Sell
Anand Rathi Research stock coverage (196) 60% 27% 13%
% who are investment banking clients 4% 0% 0%

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