Result Update

April 30, 2018

Rating matrix
Rating : Hold Essel Propack (ESSPRO) | 272
Target : | 300
Target Period : 12 months Performance remains weak…
Potential Upside : 10%
 Essel Propack’s Q4FY18 performance marred by lower-than-
What’s Changed? expected volume offtake by key customers in the AMESA (due to
Target Unchanged change in GST rate in November’17) and European regions,
EPS FY19E Changed from | 15.3 to | 14.2
respectively. As a result, consolidated sales (net of GST) recorded
EPS FY20E Changed from | 18.0 to | 16.6
muted growth of 2.6% YoY. Addition to this, America and EAP
Rating Unchanged
regions too grew at muted rate of ~4% and ~2% YoY, respectively.
Quarterly Performance Lower than expected volume off-take resulting non oral care
Q4FY18 Q4FY17 YoY (%) Q3FY18 QoQ (%) segment revenue contribution to decline by 120 bps YoY at 58.6%
Revenue 628.4 612.6 2.6 595.1 5.6 during FY18. According to the management, revenue growth in the
EBITDA 116.2 119.9 -3.0 114.3 1.7 Amesa and European regions would come back on track with an
EBITDA (%) 18.5 19.6 -107bps 19.2 -72bps increase in plant utilisation in the India and Europe
PAT 45.5 46.1 -1.3 40.8 11.6  Lower operating leverage coupled with marginal decline in gross
margin translated into ~ 107 bps YoY contractions in EBITDA
Key Financials
margin. Despite saving in interest outgo and higher other income
| Crore FY17 FY18 FY19E FY20E
Net Sales 2,302 2,424 2,731 3,093
PAT remained flat on a YoY basis, due to lower sales growth and
EBITDA 421.3 464.7 542.8 618.6 decline in EBITDA margin. We believe increase in plant utilisation
Net Profit 195.6 174.2 222.6 260.6 level (in Europe, AMESA) would help drive revenue, earning at CAGR
EPS (|) 12.5 11.1 14.2 16.6 of ~13%, 22%, respectively, in FY18-20E
w
Focus on improving non-oral care category contribution in topline
Valuation summary
Non-oral care categories, dominated by toiletries, skin care and shampoo,
FY17 FY18E FY19E FY20E
use laminated tubes as packing material. The non oral care tube market is
P/E 21.8 24.5 19.2 16.4
Target P/E 24.1 27.1 21.2 18.1
more than 3x in value compared to oral care tube. Hence, the company is
EV / EBITDA 11.5 10.1 8.4 7.2 aiming to increase the revenue contribution from non-oral category from
P/BV 4.1 3.4 3.0 2.6 40.4% in FY17 to 50% in the next three years. Emerging markets would
RoNW (%) 17.8 14.2 15.6 15.9 be the key driver for oral and non-oral care categories due to lower
RoCE (%) 17.7 17.2 19.6 20.5 product penetration. Essel Propack (EPL) is focusing on emerging markets
of Asia, Africa and Latin America to drive revenue from the non-oral care
Stock data category. In FY18, revenue contribution of the non-oral care segment
Particular Amount declined by ~120 bps YoY to 58.9%.
Market Capitalization (| Crore) 4,036.6
Total Debt (FY18) (| Crore) 594.3
Stabilisation of European business to aid revenues
Cash and Investments (FY18) (| Crore) 115.7 The European region contributes ~21% to the consolidated topline
EV (| Crore) 4,515.1 largely due to ongoing expansion in that region. However, EBIT remained
52 week H/L 316/ 235 under pressure on a YoY basis due to implementation of different cost
Equity capital (| Crore) 31.4 effective programmes, stabilisation of the Poland unit and lower offtake
Face value (|) 2.0
from new clients in various geographies. The Polish unit is a hub for
Price performance (%) extruded plastic tubes. It is also expanding into a major supplier of
1M 3M 6M 12M laminated tubes. The Polish unit turned positive from FY15 onwards with
Essel Propack 12.8 -8.8 -0.2 6.8 an improvement in utilisation rate and addition of new clients.
Time Technoplast 0.7 -17.1 -14.2 45.1 Stabilisation of the unit and new long term contracts are expected to
Ess Dee Aluminum 12.3 -37.2 27.1 -5.8 translate to higher operating leverage and reducing fixed cost. The
Huhtamaki PPL 11.6 7.6 40.4 31.6 company’s recent acquisition of EDG will help EPL unlock synergies such
as enhanced cross-selling opportunity in the German market, sourcing
flexibility and better capacity utilisation at all of its Europe plants.
Recovery in overseas business to be key driver for further re-rating
Research Analyst We model revenue, earning CAGR of ~13%, 22% in FY18-20E led by
Sanjay Manyal Amesa and European regions (owing to EDG acquisition and increase
sanjay.manyal@icicisecurities.com customer offtake). We believe Amesa region growth would largely be
Hitesh Taunk driven by recovery in demand from India post GST implementation.
hitesh.taunk@icicisecurities.com Further, focus to increase contribution of non-oral care segment
(relatively higher margin) to 50% would help in further margin expansion.
We believe business development in Europe will be key triggers for future
growth. We value the stock at FY20E 8x EV/EBITDA and maintain HOLD
rating.

ICICI Securities Ltd | Retail Equity Research

Variance analysis
Q4FY18 Q4FY18E Q4FY17 YoY (%) Q3FY18 QoQ (%) Comments

Lower than expected growth in topline was largely due to to poor

Revenue 628.4 676.6 612.6 2.6 595.1 5.6
performance in the AMESA and Europe regions.
Other Income 8.9 4.6 5.6 58.8 6.7 31.8
Raw Material Exp 274.2 297.7 269.0 2.0 250.9 9.3

Employee Exp 108.7 115.0 101.8 6.8 109.5 -0.7

Manufacturing & Other exp 129.3 135.3 122.0 5.9 120.3 7.4
EBITDA 116.2 128.6 119.9 -3.0 114.3 1.7
Lower operating leverage coupled with marginal decilne in gross margin led
EBITDA Margin (%) 18.5 19.0 19.6 -107 bps 19.2 -72 bps
~100 bps YoY contraction in EBITDA margin
Depreciation 43.0 42.6 37.9 13.4 41.4 3.8
Debt repayment coupled with lower average interest cost translated into
Interest 13.6 14.9 15.1 -10.3 14.0 -3.5
lower interest outgo
PBT 68.6 75.6 64.2 6.8 60.6 13.1
Total Tax 21.1 22.7 18.6 13.4 20.2 4.6

PAT 45.5 53.0 46.1 -1.3 40.8 11.6 Lower sales coupled with decline in EBITDA margin resulted decline in PAT

Key Metrics

Adjusted with GST, AMESA region sales recorded a muted growth of 3.4%
YoY on a like-for-like basis (against reported decline of ~6% YoY). Lower
AMESA 232.9 273.2 247.2 -5.8 223.7 4.1
sales growth was led by lower than expected offtake by Indian consumers
owing to transition of GST (change in rates during Nov'17)

Revenue growth mainly driven by ~13% YoY growh in non oral category,
EAP 142.6 148.9 140.2 1.7 140.4 1.5 however oral care revenue stabilized after prolonged de-growth due to
customer losing market share
Stabilisation of Columbian unit coupled with improved offtake by existing
Americas 127.5 126.6 122.7 4.0 126.2 1.1
customers helped in driving revenue during Q4FY18
Europe 141.2 142.6 138.2 2.1 118.8 18.8 Lower offtake by key customers in European regions hurt performance

Source: Company, ICICI Direct Research

Change in estimates

(| Crore) FY19E FY20E Comments

Old New % Change Old New % Change
We tweaked our revenue estimate for FY18-19E considering impact of GST into AMESA regions
Revenue 2,798.7 2731.3 (2.4) 3,153.8 3092.7 (1.9) and lower-than-expected utilisation at the Europe region. We model revenue CAGR of ~13% in
FY18-20E
EBITDA 558.1 542.8 (2.7) 629.7 618.6 (1.8)
We believe EBITDA margin would show some improvement owing to recovey in the EDG
EBITDA Margin % 19.9 19.9 -3bps 20.0 20.0 3bps business. In addition, higher operating leverage from America and AMESA regions would aid
overall performance
We model PAT CAGR of ~22% for FY18-20E led by higher operating margin and lower interest
PAT 240.8 222.6 (7.5) 278.5 260.6 (6.4)
incidence, going forward
EPS (|) 15.3 14.2 (7.5) 17.7 16.6 (6.4)
Source: Company, ICICI Direct Research
Assumptions
Current Earlier Comments
FY17E FY18E FY19E FY20E FY19E FY20E
With ease in GST related issue in India and stabilisation of currency in Egypt regions we
AMESA Growth (%) 1.9 -4.7 17.4 15.7 17.4 15.7
believe AMESA region to record revenue CAGR of 16.5% in FY18-20E
Change in product mix coupled with a recovery in demand from China would drive the
EAP Growth (%) 1.3 3.9 13.5 14.6 13.5 14.6
performance of EAP regions
Sales growth would largely be driven by stabilisation of new units (Columbian and Maxican
Americas Growth (%) 2.3 1.2 8.2 9.7 8.2 9.7
plants) and increase offtake from clients in US
Post consolidation of EDG business in Europe, the key trigger for growth would, increase in
Europe Growth (%) 25.3 17.1 11.3 10.3 11.3 10.3
volume offtake by existing clients
Source: Company, ICICI Direct Research

ICICI Securities Ltd | Retail Equity Research Page 2

 Exhibit 1: Region wise performance
On the geographic front, net sales growth from Europe and CAGR CAGR
EAP, Amesa are expected to be higher supported by FY14 FY15 FY16 FY17 FY18 FY19E FY20E FY14-18 FY18-20E
healthy volume growth. Revenue growth is expected to be Revenue (| crore) (%) (%)
largely driven by volumes from Amesa and Europe backed Amesa# 980.7 1097.4 962.3 980.8 934.8 1097.7 1269.7 -1.2 16.5
by demand from emerging markets remaining intact EAP 498.4 533.8 545.9 552.9 574.4 652.0 746.9 3.6 14.0
(dominated by domestic business), stabilisation of plant Americas 456.9 478.2 471.9 482.8 488.5 528.3 579.6 1.7 8.9
and new contract wins from Europe, respectively Europe 310.8 358.5 347.4 435.3 509.6 567.2 625.3 13.2 10.8
Total* 2126.6 2323.0 2205.6 2302.3 2423.9 2731.3 3092.7 3.3 13.0
* adjusting with eliminations, FY14-16 not adjusted with Ind-AS
Source: Company, ICICI Direct Research
Regional performance
Revenue (| crore) Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18
Amesa 247.2 241.9 236.4 223.7 232.9
Exhibit 2: EBITDA margin to inch up, going forward
EAP 140.2 132.9 158.4 140.4 142.6
Americas 122.7 105.7 129.0 126.2 127.5
700 618.6 25.0
Europe 138.2 117.3 132.3 118.8 141.2
Total 612.6 560.7 639.7 595.1 628.4 600 542.8
464.7 20.0
500 403.8 421.3
396.2
15.0
(| crore)

400

(%)
300 10.0
200 132.4
100.989.7 99.598.4 97.6110.799.8119.9 101.9 114.3116.2
5.0
We believe the EBITDA margin would improve from FY19 100
onwards considering stabilisation of overseas business - -

FY17E

FY18E
FY19E
FY20E
FY15

FY16
Q1FY16
Q2FY16
Q3FY16
Q4FY16

Q1FY17
Q2FY17
Q3FY17
Q4FY17

Q1FY18
Q2FY18
Q3FY18
Q4FY18
(Europe, EAP) and demand recovery in the domestic
business

EBITDA (| crore) EBITDA Margin (%)

Source: Company, ICICI Direct Research

Exhibit 3: Recovery in Europe, saving in interest cost aid PAT growth

A recovery in margin from FY19 onwards coupled with
improved cash flow on account of stabilisation of European 300 260.6 14.0
operations would help drive the bottomline, going forward. 250 222.6 12.0
We expect increasing operational efficiency in the EAP and 195.6 10.0
200 171.8 174.2
European region to help drive overall profitability 140.6 8.0
(| crore)

150
(%)
6.0
100 71.4
53.0 40.8 45.5 4.0
35.535.8 41.1 38.7 38.3 39.8 46.1 35.0
50 2.0
- -
FY17E

FY18E
FY19E
FY20E
FY15

FY16
Q1FY16
Q2FY16
Q3FY16
Q4FY16

Q1FY17
Q2FY17
Q3FY17
Q4FY17

Q1FY18
Q2FY18
Q3FY18
Q4FY18

PAT (| crore) PAT Margin

Source: Company, ICICI Direct Research

ICICI Securities Ltd | Retail Equity Research Page 3

 Outlook and valuation
We model revenue, earning CAGR of ~13%, 22% in FY18-20E led by
Amesa and European regions (owing to EDG acquisition and increase
customer offtake). We believe Amesa region growth would largely be
driven by recovery in demand from India post GST implementation.
Further, focus to increase contribution of non-oral care segment
(relatively higher margin) to 50% would help in further margin expansion.
We believe business development in Europe will be key triggers for future
growth. We value the stock at FY20E 8x EV/EBITDA and maintain HOLD
rating.

Exhibit 4: Valuation
Sales Growth EPS Growth PE EV/EBITDA RoNW RoCE
(| cr) (%) (|) (%) (x) (x) (%) (%)
FY17 2302.3 12.5 21.8 11.5 17.8 17.7
FY18E 2423.9 5.3 11.1 -10.9 24.5 10.1 14.2 17.2
FY19E 2731.3 12.7 14.2 27.8 19.2 8.4 15.6 19.6
FY20E 3092.7 13.2 16.6 17.1 16.4 7.2 15.9 20.5
Source: Company, ICICI Direct Research

ICICI Securities Ltd | Retail Equity Research Page 4

Recommendation history vs. consensus
350 100.0

300 90.0
80.0
250
70.0
200 60.0
(|)

(%)
150 50.0
40.0
100
30.0
50 20.0
0 10.0
Apr-16 Jul-16 Sep-16 Dec-16 Feb-17 Apr-17 Jul-17 Sep-17 Dec-17 Feb-18 Apr-18

Price Idirect target Consensus Target Mean % Consensus with BUY

Source: Bloomberg, Company, ICICI Direct Research

Key events
Date Event
May-09 Stock jumps sharply on rumours EPL is planning to acquire UK based tube manufacturer Betts
Aug-09 Company decides to exit non-core activities namely medical devices business which is located in US and Singapore
Sep-09 EPL's Chinese subsidiary, EP China, renews long term contract with a leading FMCG player in China. The total volume involved in these contracts is ~600 million
tubes per year
Jan-10 EPL starts new production unit in Tianjin city of North East China
Mar-11 EPL plans to close down two of its plants each in the US and Egypt and consolidate its operations in Europe to rationalize costs and streamline its global operations in
line with its clients
Mar-11 The company starts new manufacturing plant in Mexico
Jun-11 EPL signs long-term agreement with Colgate-Palmolive India to supply the tubes. Company has also planned to set up a manufacturing plant in Goa with the
investment of | 40 crore.
Feb-13 Essel Propack's subsidiary in Poland bags long term contract from a leading multinational FMCG player for supply of tubes in Europe
Apr-13 Essel Propack's manufacturing plant at Danville VA in US reports minor fire
Jan-14 Company records profit at EBIT level from European region during Q3FY14, first time since shift of its manufacturing base from UK to Poland
Dec-14 As part of a modified family arrangement Subhash Chandra (Chairman of Essel group), his immediate family members and entities controlled by him and his
immediate family members cease to be part of promoter group of the company
Jul-15 Essel Propack sells wholly-owned subsidiary Packaging India Pvt Ltd (entire 100% stake) at an enterprise value of | 165 crore to Amcor Flexible India
Sep-16 Lamitube Technologies (LTL), a wholly owned subsidiary of Essel Propack in Mauritius, agrees to acquire remaining 75.1% share in Essel Deutschland Gmbh & Co.
KG, Germany (EDG)
Source: Company, ICICI Direct Research
Top 10 Shareholders Shareholding Pattern
Rank Name Latest Filing Date % O/S Position
Position
(m) Change (m) (in %) Mar-18 Jun-18 Sep-18 Dec-18 Mar-18
1 Ashok Goel Trust 31-Mar-18 56.8 89.3 0.0 Promoter 57.1 57.1 57.2 57.2 57.2
2 NTAsset (Cayman) Ltd. 31-Dec-17 3.4 5.3 0.0 FII 14.4 14.5 14.5 15.5 15.4
3 Clareville Capital Partners L.L.P. 31-Dec-17 3.0 4.8 0.0 DII 4.9 4.9 4.9 4.7 4.6
4 Essel Group 31-Mar-18 2.4 3.7 -0.1 Others 23.7 23.5 23.4 22.6 22.8
5 Gagandeep Credit Capital Pvt. Ltd. 31-Mar-18 2.2 3.5 0.0
6 FIL Investment Management (Singapore) Ltd. 31-Dec-17 1.5 2.4 0.9
7 Norges Bank Investment Management (NBIM) 31-Dec-17 1.4 2.1 0.0
8 DSP BlackRock Investment Managers Pvt. Ltd. 31-Mar-18 1.3 2.1 0.0
9 Shamyak Investment Pvt. Ltd. 31-Mar-18 1.3 2.1 0.0
10 UTI Asset Management Co. Ltd. 30-Jun-17 1.2 1.9 0.0
Source: Reuters, ICICI Direct Research
Recent Activity
Buys Sells
Investor name Value(m) Shares(m) Investor name Value(m) Shares(m)
Fidelity International Asset Management Company (Korea) 6.9 1.5 Essel Group -0.3 -0.1
FIL Investment Management (Singapore) Ltd. 4.2 0.9 Dimensional Fund Advisors, L.P. -0.3 -0.1
Fidelity International 1.6 0.3 FIL Investment Management (Hong Kong) Limited -0.2 -0.1
Goel (Laxmi Narain) 0.0 0.0 Baroda Pioneer Asset Management Company Limited -0.1 0.0
Indiabulls Asset Management Company Limited -0.1 0.0
Source: Reuters, ICICI Direct Research

ICICI Securities Ltd | Retail Equity Research Page 5

Financial summary
Profit and loss statement | Crore Cash flow statement | Crore
(Year-end March) FY17 FY18 FY19E FY20E (Year-end March) FY17 FY18E FY19E FY20E
Net Sales 2302.3 2423.9 2731.3 3092.7 Profit after Tax 195.6 174.2 222.6 260.6
Growth (%) 4.4 5.3 12.7 13.2 Depreciation 141.5 167.1 188.5 213.4
Expenses CF bef working capital chag 394.6 396.2 463.3 521.9
Raw Material Expenses 1007.9 1036.6 1185.4 1338.3 Net Increase in Current Assets -24.9 -88.4 -121.7 -145.0
Employee Expenses 405.8 433.9 470.6 532.7 Net Increase in Current Liabilities 86.2 88.4 69.0 84.5
Manufacturing & Other Exp 467.3 488.6 532.6 603.1 Net CF from operating act 455.9 396.2 410.7 461.5
Total Operating Expenditure 1881.0 1959.1 2188.6 2474.1 (Purchase)/Sale of Fixed Assets -345.1 -193.8 -170.0 -200.0
EBITDA 421.3 464.7 542.8 618.6 Minority Interest 5.7 -1.4 0.0 0.0
Growth (%) 4.3 10.3 16.8 14.0 Others 17.3 -15.0 -20.0 -20.0
Interest 57.5 54.9 52.2 47.9 Net CF from Investing act -322.1 -210.2 -190.0 -220.0
Other Income 35.3 26.4 30.8 34.4 Equity Capital 0.0 0.0 0.0 0.0
Depreciation 141.5 167.1 188.5 213.4 Loan 71.6 -97.6 -100.0 -30.0
PBT before Exceptional Items 257.6 269.1 332.8 391.7 Total Outflow on account of dividend -54.4 -56.7 -63.5 -61.2
Less: Exceptional Items -15.7 5.0 0.0 0.0 Others -132.5 39.0 -33.3 -37.9
PBT 273.2 264.2 332.8 391.7 Net CF from Financing Act -115.4 -115.3 -196.9 -129.2
Total Tax 78.7 88.9 109.2 130.0 Net Cash flow 13.3 33.8 -26.2 62.3
Profit from Associates 1.1 -1.0 -1.0 -1.0 Cash and Cash Equ at the beg 68.7 82.0 115.7 89.6
PAT 195.6 174.2 222.6 260.6
Growth (%) 13.9 -10.9 27.8 17.1 Cash 82.0 115.7 89.6 151.8
EPS 12.5 11.1 14.2 16.6 Source: Company, ICICI Direct Research
Source: Company, ICICI Direct Research

Balance sheet | Crore Key ratios

Equity Capital 31.4 31.4 31.4 31.4 (Year-end March) FY17 FY18E FY19E FY20E
Reserve and Surplus 1007.7 1219.1 1397.1 1606.5 Per Share Data
Total Shareholders funds 1039.1 1250.5 1428.5 1637.9 EPS 12.5 11.1 14.2 16.6
Total Debt 691.8 594.3 494.3 464.3 Cash EPS 21.5 21.7 26.2 30.2
Total Liabilities 1777.4 1884.7 1962.7 2142.1 BV 66.2 79.6 91.0 104.3
Assets DPS 3.5 3.6 4.0 3.9
Total Gross Block 3114.0 3287.2 3439.2 3639.2 Operating Ratios
Less Total Accumulated Depreciation 1940.5 2107.6 2296.1 2509.5 EBITDA Margin 18.3 19.2 19.9 20.0
Net Block 1173.5 1179.6 1143.1 1129.7 PAT Margin 8.0 7.3 8.2 8.4
Total CWIP 11.4 32.1 50.0 50.0 Return Ratios
Total Fixed Assets 1184.9 1211.6 1193.1 1179.7 RoE 17.8 14.2 15.6 15.9
RoCE 17.7 17.2 19.6 20.5
Other Investments 15.3 13.1 33.1 53.1 RoIC 14.7 15.3 17.5 18.9
Inventory 246.0 286.4 321.8 364.3 Valuation Ratios
Debtors 376.6 459.0 516.3 584.6 EV / EBITDA 11.5 10.1 8.4 7.2
Loans and Advances 136.8 126.6 142.6 161.5 P/E 21.8 24.5 19.2 16.4
Cash 82.0 115.7 89.6 151.8 EV / Net Sales 2.1 1.9 1.7 1.4
Other Current Assets 126.4 102.2 115.2 130.4 Market Cap / Sales 1.9 1.8 1.6 1.4
Total Current Assets 967.8 1089.9 1185.4 1392.7 Price to Book Value 4.1 3.4 3.0 2.6
Creditors 147.3 188.4 209.5 237.2
Turnover Ratios
Provisions 29.7 29.5 32.8 37.2
Asset turnover 1.3 1.3 1.4 1.4
Total Current Liabilities 481.4 569.8 638.8 723.3
Debtor Days 59.7 69.1 69.0 69.0
Net Current Assets 486.4 520.1 546.6 669.4
Creditor Days 23.4 28.4 28.0 28.0
Total Assets 1777.4 1884.7 1962.7 2142.1
Solvency Ratios
Source: Company, ICICI Direct Research Debt / Equity 0.7 0.5 0.3 0.3
Current Ratio 5.0 4.5 4.5 4.5
Quick Ratio 3.6 3.2 3.2 3.2
Source: Company, ICICI Direct Research

ICICI Securities Ltd | Retail Equity Research Page 6

ICICI Direct coverage universe (Consumer Discretionery)

Sector / Company CMP M Cap EPS (|) P/E (x) EV/EBITDA (x) RoCE (%) RoE (%)
(|) TP(|) Rating (| Cr) FY18 FY19E FY20E FY18 FY19E FY20E FY18 FY19E FY20E FY18 FY19E FY20E FY18 FY19E FY20E
Asian Paints (ASIPAI) 1,189 1,240 Hold 109,637 22.9 26.9 31.0 49.9 42.6 36.9 32.2 28.4 24.0 31.8 30.8 31.2 25.4 25.8 25.8
Astral Polytecnik (ASTPOL) 917 885 Buy 9,149 15.8 20.4 25.4 48.4 37.5 30.1 27.9 22.5 18.3 22.0 23.5 24.3 17.2 18.4 18.8
Bajaj Electricals (BAJELE) 654 720 Buy 6,301 12.0 16.9 21.5 51.7 36.8 28.9 27.3 20.4 16.0 17.2 19.7 21.7 13.2 16.2 17.6
Havells India (HAVIND) 549 645 Hold 36,810 11.6 15.3 15.0 50.9 38.6 33.7 34.2 25.2 21.7 26.8 29.5 25.8 20.1 22.2 19.2
Kansai Nerolac (KANNER) 482 590 Buy 28,401 10.7 11.7 13.1 49.2 44.9 37.3 33.3 29.4 24.0 27.8 27.3 26.7 19.4 18.8 18.4
Pidilite Industries (PIDIND) 1,083 900 Hold 45,420 17.3 19.3 22.6 51.3 45.8 39.1 32.9 29.3 24.8 32.5 32.6 33.5 23.6 23.5 23.9
Essel Propack (ESSPRO) 272 300 Hold 4,272 11.1 14.2 16.6 24.5 19.2 16.4 10.1 8.4 7.2 17.2 19.6 20.5 14.2 15.6 15.9
Supreme Indus (SUPIND) 1,255 1,540 Buy 16,895 33.9 39.0 47.5 39.2 34.1 28.0 21.7 18.8 15.5 27.9 30.3 31.7 22.7 23.8 24.2
Symphony (SYMLIM) 1,798 2,110 Buy 13,166 28.7 35.4 43.6 65.6 53.2 43.2 53.0 42.6 34.3 45.9 53.1 60.2 34.8 40.2 45.4
V-Guard Ind (VGUARD) 239 235 Hold 9,852 4.4 5.0 5.9 52.7 46.1 39.5 37.5 32.4 27.6 33.3 31.1 30.4 25.8 24.1 23.5
Voltas Ltd (VOLTAS) 632 675 Buy 19,315 18.0 22.5 26.2 32.4 25.9 22.3 27.1 21.8 17.9 24.1 25.9 26.0 18.4 19.7 19.7
Time Techno (TIMETEC) 162 230 Buy 5,191 8.1 10.5 12.4 23.2 17.8 15.1 10.5 8.7 7.5 15.2 17.0 17.7 12.6 14.2 14.5
Source: Company, ICICI Direct Research

ICICI Securities Ltd | Retail Equity Research Page 7

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

Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction;
Buy: >10%/15% for large caps/midcaps, respectively;
Hold: Up to +/-10%;
Sell: -10% or more;

Pankaj Pandey Head – Research pankaj.pandey@icicisecurities.com

ICICI Direct Research Desk,

ICICI Securities Limited,
1st Floor, Akruti Trade Centre,
Road No 7, MIDC,
Andheri (East)
Mumbai – 400 093
research@icicidirect.com

ICICI Securities Ltd | Retail Equity Research Page 8

ANALYST CERTIFICATION
We /I, Sanjay Manyal, MBA (Finance) and Hitesh Taunk, MBA (Finance) Research Analysts, 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.

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It is confirmed that Sanjay Manyal, MBA (Finance) and Hitesh Taunk, MBA (Finance) Research Analysts of this report have not received any compensation from the companies mentioned in the report in
the preceding twelve months.

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

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

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