Sie sind auf Seite 1von 10
2QCY2011 Result Update | FMCG August 3, 2011 GSK Consumer Performance Highlights ( ` cr)
2QCY2011 Result Update | FMCG August 3, 2011 GSK Consumer Performance Highlights ( ` cr)

2QCY2011 Result Update | FMCG

August 3, 2011

GSK Consumer

Performance Highlights

(` cr)

2QCY11

2QCY11

% yoy

Angel Est

% Diff

Revenue

653.4

537.4

21.6

664.5

(1.7)

EBITDA

98.5

89.4

10.2

109.6

(10.1)

OPM (%)

15.1

16.6

(155bp)

16.5

(142bp)

PAT

82.5

71.8

14.9

85.3

(3.3)

Source: Company, Angel Research

NEUTRAL

CMP

`2,411

Target Price

-

Investment Period

-

Stock Info

Sector

FMCG

Market Cap (` cr)

10,142

Beta

0.4

52 Week High / Low

2,525/1,760

For 2QCY2011, GSK Consumer reported a strong performance, which was

Avg. Daily Volume

in-line with our estimates. The company’s top line grew by 21.6% yoy to `653cr

Face Value (`)

(`537cr). On the operating front, the company recorded a 155bp yoy decline in

BSE Sensex

its operating margin to 15.1%. Earnings for the quarter grew by 15% yoy to `83cr

Nifty

(`72cr). We recommend Neutral on the stock.

Reuters Code

Key highlights of the quarter: The company reported impressive top-line growth, which was driven by robust volume growth and pricing. Top-line growth stood at 21.6% yoy, of which volume growth comprised ~16% yoy and pricing contributed ~5% yoy growth. Horlicks reported robust volume growth of 16% yoy and volumes of Boost grew by 11% yoy. The biscuits segment reported ~45% yoy growth. Foodles grew by 13% yoy and maintained a market share of 2.8%.

Bloomberg Code

Outlook and valuation: We maintain our revenue and earnings estimates for the company. At the CMP of `2,411, the stock is trading at 24.5x CY2012E EPS of `98.3 (in-line with its historical valuations). Due to the run-up in the stock price, we do not see any further upside in the stock and, hence, recommend Neutral with a fair value of `2,295 (`2,163).

5,006

10

17,941

5,405

SMTH.BO

SKB@IN

Shareholding Pattern (%)

Promoters

43.2

MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others

 

28.4

12.9

15.5

Abs. (%)

3m

1yr

3yr

Sensex

(3.2)

(1.0)

22.4

GSKCHL

6.0

34.2

279.7

Key financials

Y/E Dec. (` cr)

CY2009

CY2010

CY2011E

CY2012E

Net sales

1,922

2,306

2,723

3,174

%

chg

24.6

20.0

18.1

16.5

Net profit

230

300

348

413

%

chg

21.2

30.1

16.1

18.9

OPM (%)

16.2

16.3

16.4

16.9

EPS (`)

54.7

71.2

82.7

98.3

P/E (x)

44.1

33.9

29.2

24.5

P/BV (x)

11.2

10.6

8.6

7.1

RoE (%)

27.9

32.2

32.6

31.8

RoCE (%)

32.3

36.9

39.1

38.3

EV/Sales (x)

4.9

4.0

3.4

2.8

EV/EBITDA (x)

30.0

24.3

20.5

16.8

Source: Company, Angel Research

Sreekanth P.V.S

022 – 3935 7800 Ext: 6841

sreekanth.s@angelbroking.com

GSK Consumer | 2QCY2011 Result Update Exhibit 1: Quarterly performance Y/E Dec. ( ` cr)

GSK Consumer | 2QCY2011 Result Update

Exhibit 1: Quarterly performance

Y/E Dec. (` cr)

2QCY11

2CY10

% yoy

1HCY11

1HCY10

% chg

Net Sales

653.4

537.4

21.6

1,363.4

1,185.8

15.0

Consumption of RM (% of Sales) Staff Costs (% of Sales) Advertising (% of Sales) Other Expenses (% of Sales) Total Expenditure

265.5

202.5

31.1

535.7

458.6

16.8

40.6

37.7

39.3

38.7

68.0

58.9

15.4

130.4

110.5

18.0

10.4

11.0

9.6

9.3

100.0

74.9

33.6

203.6

173.1

17.6

15.3

13.9

14.9

14.6

121.3

111.7

8.6

249.9

221.1

13.0

18.6

20.8

18.3

18.6

554.8

448.0

23.9

1,119.6

963.3

16.2

Operating Profit

98.5

89.4

10.2

243.8

222.4

9.6

OPM (%) Interest Depreciation Other Income PBT (excl. Extr. Items) Extr. Income/(Expense)

15.1

16.6

17.9

18.8

0.9

0.6

45.2

1.6

1.2

31.1

11.3

9.3

21.9

22.2

18.9

18.0

36.0

28.1

28.2

70.0

51.6

35.5

122.3

107.6

13.7

290.0

254.0

14.2

-

-

-

-

PBT (incl. Extr. Items)

122.3

107.6

13.7

290.0

254.0

14.2

(% of Sales) Provision for Taxation (% of PBT)

18.7

20.0

21.3

21.4

39.8

35.8

11.3

96.9

86.1

12.5

32.6

33.3

33.4

33.9

Reported PAT

82.5

71.8

14.9

193.1

167.9

15.0

PATM Equity shares (cr)

12.6

13.4

14.2

14.2

4.2

4.2

4.2

4.2

Reported EPS (`)

19.6

17.1

14.9

45.9

39.9

15.0

Source: Company, Angel Research

Impressive volume growth from its core brands: GSK Consumer posted impressive top-line growth of 21.6% yoy to `653cr (`537cr), led by 16% volume growth and 5% value growth. The company’s domestic sales for the quarter grew by 14% yoy.

During the quarter, the MFD category reported robust growth, with volumes of Horlicks and Boost growing by double digits. Horlicks grew by 16% yoy in volumes and Boost grew by 11% yoy in volumes.

The biscuits category grew by ~45% yoy. Management indicated that it has scaled down the sales of Nutribar – it is now available in modern trade outlets only. Foodles grew by robust 13% yoy during the quarter and has maintained its market share of 2.8%.

1Q10

2Q10

3Q10

4Q10

2Q09

3Q09

4Q09

1Q11

2Q11

1Q10 2Q10 3Q10 4Q10 2Q09 3Q09 4Q09 1Q11 2Q11 GSK Consumer | 2QCY2011 Result Update Exhibit

GSK Consumer | 2QCY2011 Result Update

Exhibit 2: Robust top-line growth marked by strong volume growth

 

800

30.0

700

600

500

400

300

200

100

700 600 500 400 300 200 100

25.0

20.0

(` cr)

15.0

(yoy %)

10.0

5.0

-

-

 

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

 

Top-line (LHS)

  Top-line (LHS) yoy growth (RHS)

yoy growth (RHS)

Source: Company, Angel Research

 

Exhibit 3: Double-digit volume growth

 
 

25

12.0

20

15

10

5

-

20 15 10 5 -

10.0

8.0

 

(yoy %)

(%)

6.0

4.0

2.0

-

Volume (LHS)

(yoy %) (%) 6.0 4.0 2.0 - Volume (LHS) Value (RHS) Source: Company, Angel Research A

Value (RHS)

Source: Company, Angel Research

(%)

1Q10

2Q10

3Q10

4Q10

2Q09

3Q09

4Q09

2Q11

1Q11

(%) 1Q10 2Q10 3Q10 4Q10 2Q09 3Q09 4Q09 2Q11 1Q11 GSK Consumer | 2QCY2011 Result Update

GSK Consumer | 2QCY2011 Result Update

High ad spends and raw-material prices pull down OPM: GSK Consumer registered gross margin expansion of 295bp yoy during the quarter. On the operating front, the company reported a 155bp yoy contraction due to high raw-material prices and high ad spends (up by 138bp yoy). Further fall in operating margin was arrested by controlling staff costs (down by 56bp yoy) and other expenses (down by 222bp yoy) during the quarter.

Earnings growth marked by top-line growth and reduction in tax rate: Earnings for the quarter registered 15% yoy growth to `82.5cr (`71.8cr) on account of robust top-line growth, a 28% yoy increase in other income to `36cr (`28cr) and a 71bp yoy decline in the tax rate.

Exhibit 4: PAT growth driven by top line

130 70.0 60.0 110 50.0 90 40.0 70 30.0 50 20.0 30 10.0 10 -
130
70.0
60.0
110
50.0
90
40.0
70
30.0
50
20.0
30
10.0
10
-
PAT (LHS)
yoy growth (RHS)
(` cr)
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
(yoy %)

Source: Company, Angel Research

Exhibit 5: Gross margin and OPM contract yoy

80.0

70.0

60.0

50.0

40.0

30.0

20.0

10.0

-

63.3

62.3

67.0

62.3

62.8

64.9

61.9

59.4
59.4

59.4

15.9

15.9

15.1

16.6

15.5

20.5

15.1

11.5 8.8
11.5
8.8
6 . 6 1 5 . 5 20.5 1 5 . 1 11.5 8.8 OPM Gross

OPM

6 1 5 . 5 20.5 1 5 . 1 11.5 8.8 OPM Gross margin Source:

Gross margin

Source: Company, Angel Research

Investment rationale

Anchor brands to perform well coupled with new launches: We expect GSK Consumer to perform well with its anchor brands Horlicks and Boost. Also, with the launch of innovative and premium products, the company tends to maintain its margins and market share. In the MFD category, we expect Horlicks to witness double-digit volume growth by CY2012E. Similarly, Boost is also expected to post double-digit volume growth. Though the company has pricing power, innovative launches such as small pack sizes will help the company garner a market share in rural markets and penetrate in new areas.

Earnings growth and margins to remain stable at ~17%: During CY2011–12, we expect GSK Consumer’s margin to remain at ~17% due to intensive completion in the business environment, leading to a considerable expenditure in advertisements and the surmounting high raw-material inflation. We expect the company’s earnings to witness a 17% CAGR over CY2010–12E.

GSK Consumer | 2QCY2011 Result Update Exhibit 6: Key Assumptions Sales ( ` cr) CY2008

GSK Consumer | 2QCY2011 Result Update

Exhibit 6: Key Assumptions

Sales (` cr)

CY2008

CY2009

CY2010E

CY2011E

CY2012E

Malted Foods Volume growth (%) Value growth (%) Biscuits Volume growth (%) Value growth (%) Others

1,633

1,924

2,284

2,673

3,100

16.2

10.0

13.3

12.0

11.0

5

7

5

5

5

60

77

105

135

166

22

32

30

25

20

2

(3)

5

3

3

7

24

42

63

92

Total Gross Revenue

1,700

2,025

2,431

2,871

3,358

YoY % Growth

Malted Foods

21.9

17.8

18.7

17.0

16.0

Biscuits

24.2

28.0

36.1

28.8

23.0

Others

(15.0)

229.1

72.9

50.0

45.5

Total Gross Revenue

21.8

19.1

20.0

18.1

17.0

Source: Company, Angel Research

Outlook and valuation

We maintain our revenue and earnings estimates for the company. At the CMP of `2,411, the stock is trading at 24.5x CY2012E EPS of `98.3 (in-line with its historical valuations). Due to the run-up in the stock price, we do not see any further upside in the stock and, hence, recommend Neutral with a fair value of `2,295 (`2,163).

Exhibit 7: Peer valuation GSK Consumer | 2QCY2011 Result Update Company Reco Mcap CMP TP

Exhibit 7: Peer valuation

GSK Consumer | 2QCY2011 Result Update

Company

Reco

Mcap

CMP

TP

Upside

P/E (x)

EV/Sales (x)

RoE (%)

CAGR #

 

(` cr)

(`)

(`)

(%)

FY11E

FY12E

FY11E

FY12E

FY11E

FY12E

Sales

PAT

Asian Paints

Neutral

29,033

3,027

-

-

29.5

24.0

3.1

2.6

39.6

38.3

17.3

19.8

Britannia

Neutral

5,686

476

-

-

30.9

21.2

1.1

1.0

37.8

46.1

17.3

36.0

Colgate

Reduce

13,305

978

869

(11)

30.3

25.9

5.0

4.3

111.7

108.0

14.9

12.9

Dabur

Accumulate

18,382

106

115

9

26.2

22.9

3.6

3.2

44.9

41.6

20.5

18.8

GSKCHL ^

Reduce

10,142

2,411

2,163

(10)

29.2

24.5

3.4

2.8

32.6

31.8

17.3

17.5

GCPL

Accumulate

13,905

430

478

11

23.8

20.7

3.6

3.2

38.7

28.0

13.4

18.2

HUL

Neutral

70,382

323

-

-

27.6

24.1

3.0

2.7

74.9

74.7

12.7

17.2

ITC

Neutral

159,830

207

-

-

27.6

23.2

6.2

5.2

32.7

31.5

17.6

17.4

Marico

Neutral

9,821

160

-

-

30.2

24.2

2.8

2.5

31.5

29.5

15.7

30.8

Nestle ^

Sell

40,784

4,230

3,483

(18)

41.9

35.2

5.6

4.8

91.1

72.9

16.1

18.9

Source: Company, Angel Research, Note: # denotes CAGR for FY2011-13E, ^ CY ending co.

Exhibit 8: Angel vs. Consensus estimates

Top line (` cr)

CY2011E

CY2012E

EPS (`)

CY2011E

CY2012E

Angel estimates

2,723

3,174

Angel estimates

82.7

98.3

Consensus

2,731

3,195

Consensus

84.3

99.5

Diff (%)

(0.3)

(0.7)

Diff (%)

(1.9)

(1.2)

Source: Bloomberg, Angel Research

Exhibit 9: Absolute returns of GSKCHL vs. Sensex Exhibit 10: One-year forward P/E 160% 3,500
Exhibit 9: Absolute returns of GSKCHL vs. Sensex
Exhibit 10: One-year forward P/E
160%
3,500
10x
15x
20x
25x
Sensex
GSKCH
3,000
140%
2,500
120%
2,000
1,500
100%
1,000
80%
500
-
60%
Source: Company, Angel Research
Source: Company, Angel Research
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Share Price (`)
Apr-05
Dec-05
Aug-06
Apr-07
Dec-07
Aug-08
Apr-09
Dec-09
Aug-10
Apr-11
Exhibit 11: One-year forward P/E 35.0 30.0 25.0 20.0 15.0 10.0 5.0 - Jul-05 Nov-05
Exhibit 11: One-year forward P/E
35.0
30.0
25.0
20.0
15.0
10.0
5.0
-
Jul-05
Nov-05
Mar-06
Jul-06
Nov-06
Mar-07
Jul-07
Nov-07
Mar-08
Jul-08
Nov-08
Mar-09
Jul-09
Nov-09
Mar-10
Jul-10
Nov-10
Mar-11
Jul-11

Source: Company, Angel Research, Note: Blue-line indicates 5-year average

Exhibit 12: One-year forward Premium vs. Sensex 120% 100% 80% 60% 40% 20% 0% -20%
Exhibit 12: One-year forward Premium vs. Sensex
120%
100%
80%
60%
40%
20%
0%
-20%
-40%
-60%
Apr-02
Oct-02
Apr-03
Oct-03
Apr-04
Oct-04
Apr-05
Oct-05
Apr-06
Oct-06
Apr-07
Oct-07
Apr-08
Oct-08
Apr-09
Oct-09
Apr-10
Oct-10
Apr-11

Source: Company, Angel Research, Note: Blue-line indicates 5-year average

GSK Consumer | 2QCY2011 Result Update Profit & Loss Statement Y/E Dec ( ` cr)

GSK Consumer | 2QCY2011 Result Update

Profit & Loss Statement

Y/E Dec (` cr)

CY07

CY08

CY08 CY10E

CY11E CY12E

Gross sales Less: Excise duty Net Sales

1,396

1,700

2,025

2,431

2,871

3,358

118

159

104

125

148

185

1,278

1,542

1,922

2,306

2,723

3,174

Total operating income

1,278

1,542

1,922

2,306

2,723

3,174

%

chg

15.4

20.6

24.6

20.0

18.1

16.5

Total Expenditure Cost of Materials Advertising Exp Personnel Others

1,054

1,304

1,611

1,818

2,276

2,637

448

586

714

865

1,026

1,171

164

194

302

371

449

540

155

172

201

230

259

289

287

352

394

352

542

638

EBITDA

225

238

311

489

447

537

%

chg

21.7

5.7

30.8

57.3

(8.5)

72.8

(% of Net Sales) Depreciation & Amortisation

17.6

15.4

16.2

21.2

16.4

16.9

43

42

42

40

40

49

EBIT

181

196

269

449

407

488

%

chg

27.7

7.9

37.3

67.1

(9.4)

20.0

(% of Net Sales) Interest & other Charges Other Income (% of PBT) Share in profit of Associates

14.2

12.7

14.0

19.5

14.9

15.4

5

5

4

3

3

3

68

95

89

0

119

136

27.9

33.4

25.2

0.0

22.7

21.9

 

-

-

-

-

-

-

Recurring PBT

245

286

354

446

523

622

%

chg

28.6

16.6

23.9

26.1

17.2

18.9

Prior Period & Extra. Exp./(Inc.)

-

1.63

(2.61)

(0.29)

-

-

PBT (reported)

245

284

356

447

523

622

Tax (% of PBT)

82

96

124

152

175

208

33.6

33.5

35.0

34.1

33.5

33.5

PAT (reported)

163

188

233

294

348

413

Add: Share of earnings of associate Less: Minority interest (MI)

-

-

-

-

-

-

-

-

-

-

-

-

PAT after MI (reported) ADJ. PAT

163

188

233

294

348

413

163

190

230

294

348

413

%

chg

28.2

16.8

21.2

27.7

18.3

18.9

(% of Net Sales)

12.7

12.3

12.0

12.7

12.8

13.0

Basic EPS (`) Fully Diluted EPS (`)

38.7

45.2

54.7

71.2

82.7

98.3

38.7

45.2

54.7

71.2

82.7

98.3

%

chg

28.2

16.8

21.2

30.2

16.1

18.9

GSK Consumer | 2QCY2011 Result Update Balance Sheet Y/E Dec ( ` cr) CY07 CY08

GSK Consumer | 2QCY2011 Result Update

Balance Sheet

Y/E Dec (` cr)

CY07

CY08

CY09

CY10E

CY11E

CY12E

SOURCES OF FUNDS

Equity Share Capital

42

42

42

42

42

42

Preference Capital

-

-

-

-

-

-

Reserves& Surplus

604

719

863

918

1,133

1,384

Shareholders’ Funds

646

761

905

960

1,175

1,426

Minority Interest

-

-

-

-

-

-

Total Loans

-

-

-

-

-

-

Deferred Tax Liability

17

7

(11)

(27)

(27)

(27)

Total Liabilities

664

767

894

933

1,148

1,399

APPLICATION OF FUNDS

Gross Block

457

473

492

533

707

858

Less: Acc. Depreciation

298

329

364

397

437

486

Net Block

160

144

128

136

270

372

Capital Work-in-Progress

17

16

38

108

57

69

Goodwill

66

66

66

66

66

66

Investments

298

-

-

-

-

-

Current Assets

371

853

1,173

1,423

1,508

1,753

Cash

94

471

820

976

985

1,147

Loans & Advances

55

62

56

84

103

121

Other

222

320

297

363

420

486

Current liabilities

249

312

511

800

753

861

Net Current Assets

122

541

662

623

755

892

Misc Exp

-

-

-

-

-

-

Total Assets

664

767

894

933

1,148

1,399

Cash Flow Statement

Y/E Dec (`cr)

CY07

CY08

CY09

CY10E

CY11E

CY12E

Profit before tax Depreciation Change in Working Capital Interest/ Dividend(Net) Direct taxes paid Others

245

286

354

334

523

622

43

42

42

40

40

49

(24)

(58)

211

169

(122)

23

(20)

(31)

(20)

(41)

(32)

(39)

82

96

124

152

175

208

27

(10)

(5)

4

(2)

3

Cash Flow from Operations

188

133

458

354

232

449

Inc./ (Dec.) in Fixed Assets Inc./ (Dec.) in Investments

25

29

41

111

123

162

(78)

298

0

0

0

0

Cash Flow from Investing

(103)

269

(41)

(111)

(123)

(162)

Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Interest / Dividend (Net)

-

-

-

(0.00)

-

-

-

-

-

-

-

-

41

31

89

245

133

162

(2)

(7)

(20)

(41)

(32)

(39)

Cash Flow from Financing

(39)

(24)

(68)

(204)

(101)

(124)

Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances

46

377

349

39

8

163

48

94

471

820

976

985

94

471

820

859

985

1,147

GSK Consumer | 2QCY2011 Result Update Key Ratios Y/E Dec CY07 CY08 CY09 CY10E CY11E

GSK Consumer | 2QCY2011 Result Update

Key Ratios

Y/E Dec

CY07

CY08

CY09

CY10E

CY11E

CY12E

Valuation Ratio (x)

P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets

62.3

53.4

44.1

33.9

29.2

24.5

49.2

43.7

36.9

29.9

26.1

21.9

15.7

13.3

11.2

10.6

8.6

7.1

0.5

0.6

0.7

2.1

1.1

1.4

7.9

6.3

4.9

4.0

3.4

2.8

44.7

40.7

30.0

24.3

20.5

16.8

15.1

12.6

10.4

9.8

8.0

6.4

Per Share Data (`)

EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value

38.7

45.2

54.7

71.2

82.7

98.3

38.7

45.2

54.7

71.2

82.7

98.3

49.0

55.1

65.3

80.7

92.3

109.9

12.0

15.0

18.0

50.0

27.0

33.0

153.7

180.9

215.2

228.3

279.4

339.1

Returns (%)

RoCE Angel RoIC (Pre-tax) RoE

29.5

27.3

32.3

36.9

39.1

38.3

42.1

45.7

94.2

1,418.7

447.4

156.1

27.4

27.0

27.9

32.2

32.6

31.8

Turnover ratios (x)

Asset Turnover Inventory / Sales (days) Receivables (days) Payables (days) Net working capital (days)

2.8

3.3

4.3

3.9

3.9

3.7

56

66

51

49

49

49

8

10

6

8

8

7

62

59

71

74

74

72

8

17

(30)

(56)

(31)

(29)

Research Team Tel: 022 - 3935 3800 Disclaimer GSK Consumer | 2QCY2011 Result Update E-mail:

Research Team Tel: 022 - 3935 3800

Disclaimer

GSK Consumer | 2QCY2011 Result Update

E-mail: research@angelbroking.com

Website: www.angelbroking.com

This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment.

Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals.

The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.

Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so.

This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly.

Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past.

Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information.

Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement

GSKCHL

1. Analyst ownership of the stock

No

2. Angel and its Group companies ownership of the stock

No

3. Angel and its Group companies' Directors ownership of the stock

No

4. Broking relationship with company covered

No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors.

Ratings (Returns) :

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)