8 January 2019

Update | Sector: Consumer

P&G Hygiene and Healthcare

BSE SENSEX S&P CNX
35,981 10,802 CMP: INR9,927 TP: INR10,520 (+6%) Neutral
Signs of revival after a couple of muted years
Distribution, new product launches and ad spends show encouraging
trends

Stock Info PGHH’s recent results, its management comments in the AGM and the annual report
Bloomberg PG IN offer an encouraging outlook pointing towards a revival in sales and earnings
Equity Shares (m) 32 momentum, in our view. Of particular interest are some key points:
M.Cap.(INRb)/(USDb) 322.2 / 4.6  The aggression demonstrated by the PGHH management in recent quarters on
52-Week Range (INR) 11000 / 8714 increase in ad spends, new launches and price cuts, wherever required.
1, 6, 12 Rel. Per (%) 3/-3/2
 Arresting the dip in Whisper’s market share and achieving growth in share
12M Avg Val (INR M) 72
over the past six months.
Free float (%) 29.4
 Increase in distribution of Vicks and Whisper to 3.5m outlets and 2m outlets,
Financials Snapshot (INR b) respectively, from 2m and 1.4m outlets four years ago.
Y/E June 2018 2019E 2020E  Continued market share gain in Vicks. New product - Vicks Baby Rub, launched
Sales 24.6 29.1 33.6 in FY18 is reportedly doing very well.
EBITDA 6.3 8.1 9.6
 Recent change at the CEO level has made PGHH more dynamic than in the
Adj. PAT 3.7 5.2 6.2
Adj. EPS (INR)
recent past.
117.8 157.0 191.6
EPS Gr. (%) -11.5 33.3 22.0
 PGHH intends to launch their sanitary napkin recycling program in 10 major
BV/Sh. (INR) 248.2 298.1 357.5 cities across the world by 2030; India will be one of the priority countries with
RoE (%) 56.3 59.0 58.5 launch in 2019. The company also aims to use 100% renewable or recyclable
RoCE (%) 60.2 60.4 60.2 materials for its products and packaging; cut greenhouse gas emissions by
P/E (x) 84.4 63.3 51.9 half, power their plants with 100% renewable energy and source at least 5b
P/BV (x) 40.1 33.3 27.8 liters of water from circular sources and design products.
Shareholding pattern (%)
 While we wait to see if 20% sales growth witnessed in 1QFY19 (June year-end)
As On Sep-18 Jun-18 Sep-17 is sustainable, there seems little doubt that revenue and earnings growth
Promoter 70.6 70.6 70.6 prospects of the company are seeing a revival after a couple of tepid years.
DII 10.1 10.1 9.6 While valuations of 51.7x FY20 EPS implies that near-term upside is limited,
3.7 3.6 3.9
two factors make PGHH an attractive long-term core holding: (1) Huge
FII
15.6 15.6 15.8
category growth potential in the Feminine Hygiene segment (~67% of sales)
Others
and potential for market share growth because of its considerable moats, and
FII Includes depository receipts
(2) Potentially huge margin gains from premiumization in Feminine Hygiene
Stock Performance (1-year) over the longer term. Increasing pace of distribution expansion, continuing
P & G Hygiene strong pace of category development efforts in schools to boost awareness
Sensex - Rebased
and growth, rising ad spends after a lull in preceding years, healthy pipeline of
10,900
new products and willingness to take price cuts whenever required to boost
10,300
growth are all encouraging developments that should aid rapid growth for the
9,700
company over the long term.
9,100
8,500
Jul-18
Apr-18
Jan-18

Jan-19
Oct-18

Krishnan Sambamoorthy – Research Analyst ([email protected]); +91 22 6129 1545

Vishal Punmiya – Research Analyst ([email protected]); +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.
 P&G Hygiene and Healthcare

Feminine Hygiene Business (67% of FY18 sales) - Key points

discussed in the Annual report and AGM

New initiatives
 During FY18, the annual report stated that PGHH strengthened value
proposition on their longer length offerings in choice line-up as consumers are
shifting towards longer length pads for a better protection experience.
 Three launches/ initiatives in this segment by PGHH in FY18.
1. Whisper Choice Ultra (price reduced by 10%).
2. Launched Ultra Soft (similar to cotton top sheet).
3. Launched panty liners (an adjacency) for non- period wear.
 The company launched Whisper Choice Aloe Vera in 1HFY19, its first product in
the naturals segment.
 PGHH built on the success of its Whisper portfolio expansion by extending it
from ‘Period protection’ to overall ‘Feminine Wellness’ via the launch of
Whisper Daily Liners in top channels.

Distribution and category development

 Category development effort ‘Parivartan’ reached around 40,000 schools and
4.5m school-going girls last year.
 The company continued to drive depth and breadth of their portfolio via sharply
defined go-to-market plans taking the category to more stores. Whisper now
reaches around 2m outlets, up from 1.4m around four years ago.
 During FY18, P&G continued to make strong progress in growing more users for
sanitary napkins, particularly among non-users in their early teen years via
clutter-breaking ‘Check Check’ campaign and continued focus on the ‘Point of
Market’ entry consumers via school programs. This was reflected in acceleration
of Whisper’s penetration among teens, which was significantly ahead of
category penetration growth. We believe this will be a very strong long-term
driver of Whisper’s sales growth, going forward.

Stability and subsequent gain in market share

 P&G remains the dominant player in the feminine hygiene category with over
50% market share. While we reckon that there was a small blip in FY16-17 in
terms of minor market share loss, management clarified at the AGM that P&G
did not lose market share in Whisper in FY18; in fact the company grew market
share in Whisper over the past six months.
 Revenue growth for the feminine hygiene category slowed over the past two
years due to (a) IND-AS accounting and GST accounting, and (b) demonetization
and GST related disruptions that affected categories dependent mainly on
customer conversion for growth. There was also a blip in market share in the
preceding years but is now in the past.
 The company reported 20% overall sales growth in 1QFY19 (with likely strong
growth in feminine hygiene since it forms over two thirds of its sales (67% in
FY18).

8 January 2019 2
 P&G Hygiene and Healthcare

Exhibit 1: Feminine Hygiene saw a slight decline of 0.7% in FY18 to INR16.5b

Feminine Hygiene sales (INR b) Growth (%)

34.0
30.3
25.9 24.4 23.7
17.1
13.8
5.9
2.3
-0.7

4.3 5.3 6.2 8.1 10.9 13.5 15.3 16.2 16.6 16.5

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Source: Company, MOSL

Impact of GST reduction announced after the end of the financial year
 GST in sanitary napkins is now exempt from the earlier levy of 12%. The
company has also taken price reduction whenever required. However, since the
definition now says that the category is exempt and not zero GST, the input tax
credit availed earlier is not available.

Exhibit 2: Feminine Hygiene continues to form the bulk of overall sales

Feminine Hygiene sales (%) Healthcare sales (%) Old spice (%)

2.1 3.9 3.5 2.1 1.2 0.8

33.8 30.8 31.5 28.8 30.1 32.0

64.1 65.2 65.0 69.1 68.7 67.2

FY13 FY14 FY15 FY16 FY17 FY18

Source: Company, MOSL

Health Care business (32% of sales in FY18) - Key points discussed in the
Annual report and AGM
 PGHH continued to grow share in double-digits in the Cough & Cold category
(excluding Cough Syrup) with a strong off take on the strength of its equity and
portfolio, which includes Vicks VapoRub, Vicks Cough Drops, Vicks Action 500
Advanced, Vicks Inhaler, and Vicks BabyRub – its new launch in FY17-18.
 Across the three sub segments - VapoRub, Cough Drops and tablets - the
company reportedly gained 0.5-4% market share in FY18.
 Vicks BabyRub is doing extremely well; the company even launched a smaller
pack two months ago.
 Management revealed that Vicks now reaches 3.5m outlets, up from our
estimate of ~2m four years ago.
 Growth was driven by a combination of plans to win consumers, winning versus
competition and winning in whitespaces with the launch of Vicks BabyRub.
 Vicks Rubs grew penetration beyond the company’s category Development
Index program for the second year in a row, continuing to grow share in the

8 January 2019 3
 P&G Hygiene and Healthcare

Financial Year 2017-18. Vicks Cough Drops’ off take growth was strong with
share gain in the cough lozenges category in a year of competitive launches.
 Adjusted for Ind-AS and GST accounting impact (which is not visible in the
reported data below) sales have been fairly healthy in healthcare segment (32%
of sales in FY18) with Vicks Vaporub, in particular, driving share growth strongly.
 Share of Vicks Vaporub to healthcare segment is 58% of sales in FY18, from 52%
in FY13. Share of tablets has come down as a proportion of segmental sales.
Exhibit 3: Vicks Vaporub forms the majority of the healthcare business, contributing to
58% of sales

Ointments and Creams (%) Cough Drops (%) Tablets (%)

10.4 11.2 9.8 6.9 6.6

12.8

38.1 35.9 35.9 36.4 35.4

35.6

51.6 51.5 52.9 54.3 56.6 58.0

FY13 FY14 FY15 FY16 FY17 FY18

Source: Company, MOSL

Exhibit 4: The healthcare segment saw a growth of 8%YoY in Exhibit 5: Ointments and creams saw a strong growth of
FY18 to INR7.9b 10.6% YoY in FY18

Healthcare sales (INR b) Growth (%) Ointments and Creams (INR b) Growth (%)

18.1 17.3 25.5 25.6

16.2 16.8 22.0 20.0
10.3 10.9
7.5 8.0 12.2 10.6
3.2 9.5 10.6
-8.8 3.6
-6.6

3.5 4.0 4.1 4.9 5.7 6.4 7.4 6.8 7.3 7.9 1.5 1.8 1.9 2.4 3.0 3.3 3.9 3.7 4.1 4.6

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Source: Company, MOSL Source: Company, MOSL

Exhibit 6: Cough drops contributed 35.4% to sales in FY18 and Exhibit 7: Tablets saw growth of 2.6% YoY in FY18 despite the
saw a growth of 5% YoY low base of a 24% decline in FY17

Cough Drops (INR b) Growth (%) Tablets (INR b) Growth (%)

25.3
14.6
17.5 18.4 15.6 18.5 1.4 2.3 4.6 0.4 2.6
13.2 10.1 -9.2
7.9 9.0
5.0 -20.0
-24.0
-8.7

1.1 1.3 1.6 1.8 2.0 2.4 2.7 2.4 2.6 2.8 0.7 0.7 0.7 0.7 0.7 0.7 0.8 0.7 0.5 0.5

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Source: Company, MOSL Source: Company, MOSL

8 January 2019 4
 P&G Hygiene and Healthcare

Old Spice (1% of sales in FY18)

 Old Spice continued to have a challenging 2017-18 driven by sales decline.
Management stated in the annual report that it is a conscious business choice to
hold back investments in Old Spice, until a winning proposition emerges in the
category, which is highly dynamic and competitive.
Overall pace of sales growth remained moderate
 While sales growth at 6% YoY for FY18 was better than the preceding year, it
was well below the average growth of the past decade.
 Adjusted for GST accounting, sales growth was up 10% YoY.
 As we have seen, moderation in sales growth was primarily led by the largest
segment - Feminine Hygiene, which forms around two thirds of sales.
 There has been a revival in the past few quarters in the feminine hygiene
segment. In fact, overall sales growth at 20% in 1QFY19 demonstrates initial
signs of a broad-based revival.

Exhibit 8: Overall sales growth stood at 5.8% YoY to INR24.6b in FY18

Sales (INR b) Sales growth (%)

29.3 30.0

20.0 19.4 21.6

22.8
13.8
8.5
5.8
2.0
-2.5
7.7 9.2 10.0 13.0 16.9 20.5 23.3 23.2 24.6

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Source: Company, MOSL

Comments on key cost items

 Over the past five years, material costs to sales have declined by 320bp (30bp
down over the past two years).
 Employee costs have declined by 120bp over the past five years, including 50bp
over the past two years.
 Ad spends to sales has declined by 630bp over the past five years, primarily due
to netting off of promotion spends against sales as part of IND-AS. But, there
was also some reduction in the ad spend intensity, which was addressed over
the past three quarters (3QFY18, 4QFY18 and 1QFY19). Ad spend to sales in
FY18 was up 180bp YoY.
 Royalty to sales has increased marginally by 20bp over the past five years.
 Other expense to sales has declined by 30bp over the past five years. Note that
it had dipped sharply to unusually low levels in FY17, which then normalized in
FY18.

8 January 2019 5
 P&G Hygiene and Healthcare

Exhibit 9: Breakdown of key operating expenses

Raw material (%) Employee cost (%) Ad spends (%) Royalty (%) Other expenses (%)

16.5 16.5 15.9

15.7 15.7
16.3 15.4 4.9 4.7 4.7 15.1 13.7 15.6
4.8 5.0
6.3 5.2 18.4 18.0 16.9 5.4 4.5 4.9
14.8 14.3 8.8 8.8 10.6
16.0 17.5 5.0 5.0 5.9 4.6 4.9 5.2 4.9 4.7
4.5 4.7
38.8 40.4 41.8 39.6 39.5 38.9 39.4 38.6
30.0 30.2

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Source: Company, MOSL

 Further breakdown of key other operating expenses to sales reveals that

processing charges are increasing over the past few years (management
attributed it to increase in contract manufacturing, which we believe is on the
Vicks business). Freight costs on the other hand are steadily declining as
proportion of sales. Outsourcing charges to sales has also increased sharply by
60bp YoY in FY18.
Exhibit 10: Breakdown of key other operating expenses
Other operating expenses (%) Rent (%) Processing charges (%)
Freight (%) Outsourcing expenses (%)

1.3 1.3 1.2 1.9 1.3 1.3

1.4 1.3 1.7
5.4 5.7 3.6 1.1 2.6
4.5 6.7 4.8 5.2 3.7 3.1
1.3 2.5 2.5 3.3
0.1 2.7 3.2 3.0 2.4 0.3 2.9
0.2 2.7 0.1 0.1 1.6 1.8
0.2 0.2 1.1
8.1 6.6 6.2 6.7 8.0 6.2
5.6 6.0 5.9 5.5

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Source: Company, MOSL

Comments on employee costs

 Increase in the median remuneration of employees in FY18 was 8%.
 There were 359 permanent employees on the rolls of company at end-FY18.
 The average percentage increase made in the salaries of employees other than
the managerial personnel in FY18 was 6.94%, whereas increase in salaries paid
to managerial personnel was 14%. The average increase every year is an
outcome of the company’s market competitiveness against peer group
companies.

Personnel changes- Director and Key Managerial personnel

 During the Financial Year, Mr. Al Rajwani ceased to be the Director and
Managing Director of the Company effective 30 June 2018, consequent to his
retirement after 37 years of service with the P&G group. Subsequently, Mr.
Madhusudan Gopalan was appointed as Director and Managing Director of the
Company effective 1 July 2018.
 Mr. Madhusudan Gopalan is an alumnus of IIM Calcutta who joined P&G in
1999. He has more than 18 years of experience working across business units
and diverse geographies like India, the US and ASEAN countries. Prior to this

8 January 2019 6
 P&G Hygiene and Healthcare

role, he was leading the P&G business in Indonesia where he led strong sales
growth, share turnaround, strong value creation and cash productivity.
 Mr. Ishan Sonthalia ceased to be the Company Secretary and Compliance Officer
of the company effective 31 March 2018. Ms. Flavia Machado has been
appointed as the Company Secretary and Compliance Officer effective 18
September 2018.

Exhibit 11: Remuneration of key personnel

Mr. AI Rajwani* Prashant Bhatnagar Mr. R.A Shah
Remuneration (INR m)
(Managing Director) (CFO) (Independent Director)
FY17 FY18 FY17 FY18 FY17 FY18
Salary 110.5 81.6 4.6 4.8 0.0 0.0
Commission 0.0 0.0 1.1 1.1
Sitting fees 0.0 0.0 0.3 0.3
Others 32.5 0.0 0.0 0.0
Total 110.5 81.6 4.6 4.8 1.4 1.4
YoY change (%) -26.2 5.0 -0.7
As a % of Sales 0.5 0.3 0.0 0.0 0.0 0.0
As a % of EBITDA 1.7 1.3 0.1 0.1 0.0 0.0
As a % of PAT 2.6 2.2 0.1 0.1 0.0 0.0
*Ceased to be the Managing Director of the company effective June 30, 2018 Source: Company, MOSL

 Mainly due to the sharp increase YoY in other expenses and increase in ad
spends off a low base, there was an EBITDA margin decline in FY18 leading to
the first year of EBITDA decline since the massive price cut led impact in FY11.

Exhibit 12: EBITDA declined 5.5% YoY to INR6.3b in FY18

EBITDA (INR b) EBITDA growth (%)
67.9

19.7 22.2 25.1 25.1

17.3 15.1 9.7
-5.5
1.6
-34.4
2.1 2.5 2.0 2.5 4.2 4.8 6.1 6.6 6.3

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Source: Company, MOSL

Reduction in salience of other income

 The massive payout of the entire cash balance meant that other income as a
proportion of PBT declined significantly from 11% in FY17 to 4% in FY18.

8 January 2019 7
 P&G Hygiene and Healthcare

Exhibit 13: Other income as a % of PBT has declined significantly in FY18 to 4%

Other income as a % of PBT
22.8 23.4
20.0
17.4
16.1 14.9 13.8
11.3 11.5

4.0

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Source: Company, MOSL

 Sharp reduction in other income, along with the absolute 5.5% EBITDA decline
meant that PAT declined in double-digits YoY in FY18.

Exhibit 14: Adj. PAT declined sharply by 13.4% YoY in FY18 to INR3.7b

Adj PAT (INR b) Adj PAT growth (%)

35.7 48.6
19.9 22.1
11.6 12.1 14.6
2.4
-13.4
-24.2
1.8 2.0 1.5 1.8 2.0 3.0 3.5 4.2 4.3 3.7

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Source: Company, MOSL

 With revival in sales momentum leading to better fixed costs absorption,

eventual moderation in ad spends to sales YoY, and premiumization, we expect
EBITDA margins to grow, going forward. Severe impact of low cash and
equivalents witnessed after the payout in May 2017 is also unlikely to be
repeated in later years, which should boost other income.

Balance Sheet-Working capital improves YoY, cash payout also boosts ROCE
 Negative Net Working Capital days declined to 14 days in FY18 from eight days
in FY17.
 Reduction in inventory days and higher creditor days led to the improvement.
 From a longer-term perspective, FY18 goes back to the trend of double-digit
negative NWC days witnessed by the company before FY17.

8 January 2019 8
 P&G Hygiene and Healthcare

Exhibit 15: Sharp improvement in working capital, with cash conversion cycle down to
negative 14 days in FY18
Inventory days Debtor days Creditor days Cash conversion cycle

57 62 58 57
52 56 54
50 47
39
24 21 22 22 23 21 20 21 24 22 22 21
14 15 19 16
8 10 11 11
(3)
(13) (13) (15)
(19) (24)
(26) (29)
(8)
(14)

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Source: Company, MOSL

 Massive special dividend payout in May 2017 means that return ratios were
significantly higher in FY18 compared to the preceding years, despite tepid P&L
performance.

Exhibit 16: Return ratio’s saw significant improvement in FY18

RoE (%) RoCE (%)

60.2

44.9
40.6 41.0 56.3
34.0
45.5 27.9 27.1 30.0 28.6
41.0 26.5
39.7
33.4
26.6 27.9 27.1 29.5 28.2

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Source: Company, MOSL

Exhibit 17: Fixed asset turns inched up further in FY18

Gross fixed asset turnover (x) Net fixed asset turnover (x)
8.6
7.9 7.5
7.1 7.2 7.0 7.1
6.5
5.9
5.3
4.5 4.8 4.5
3.5 3.8 3.8 3.9 3.6 3.7
3.2

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Source: Company, MOSL

8 January 2019 9
 P&G Hygiene and Healthcare

Exhibit 18: Other assets grew 20.7% YoY in FY18 after a couple of preceding years of
decline

63.9 Growth in other assets & loans (%)

44.1

20.6 20.7
14.2 10.4 8.1
-4.8

-39.0
-16.4

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Source: Company, MOSL

 Increase in other assets YoY was not on account of loans to related parties,
which declined from INR 1.5b in FY17 to INR 1b in FY18 but was on account of
higher advance tax paid.

Exhibit 19: Breakdown of other assets & loans over the past five years
Particulars (INR m) FY13 FY14 FY15 FY16 FY17 FY18
Loans & Advances
Loan to related party 4,300 4,832 4,632 2,417 1,469 1,009
Other deposits 936 1,050 1,026 775 723 900
Balances with custom & excise 88 96 21 72 120 583
Advance tax paid 864 847 1,739 1,070 1,436 1,958
Total loans & advances 6,188 6,826 7,418 4,334 3,748 4,450
Other assets
Interest accrued on Loan to fellow subsidiary 53 62 9 163 52 135
Interest accrued on bank deposits 1 0 1 1 2 2
Others 2 7 26 53 2 5
Total other assets 56 69 36 217 56 142
Total other assets & loans 6,245 6,894 7,454 4,550 3,803 4,591
Source: Company, MOSL

Other comments
 Forex income declined sharply YoY in FY18, whereas forex expenses, already a
high number at 20.2% of sales in FY17 increased further to 22.8% of sales in
FY18.

Exhibit 20: Breakdown of net forex earnings

Particulars (INR m) FY17 FY18
Foreign Exchange earnings 554 264
Change (%) -52.4
Foreign Exchange outgo 4,678 5,600
Change (%) 19.7
Net Foreign Exchange earnings (4,124) (5,336)
Change (%) 29.4
Source: Company, MOSL

8 January 2019 10
 P&G Hygiene and Healthcare

Exhibit 21: Forex expense to sales increased to 22.8% while Forex income to sales declined
to 1.1%

Forex income to sales (%) Forex expense to sales (%) 22.8

20.2
16.1 17.1
14.5 15.1 14.5
12.5 12.4 2.4
8.1
1.2 1.3 1.1 1.3
1.1
0.6 0.7
0.4 0.4

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Source: Company, MOSL

 The company managed to fulfil its CSR obligation of INR 122m for FY18.

Exhibit 22: PGHH left no amount of its prescribed CSR expenditure unspent
Year FY18
Average net profit for last 3 years 6,101
Prescribed CSR expenditure for FY18 (2% of average net profit) 122.0
Total amount actually spent on CSR activities 122.0
Amount unspent Nil
Source: Company, MOSL

Dividend
 The Directors recommended a final dividend of` INR40/- for each Equity Share
for the Financial Year ended 30 June 2018. Payout at 35% was lower-than-
expected and harks back to the period before the special dividend was paid.

Environmental sustainability front:

 On the environmental sustainability front, PGHH is making good progress as its
already on the way to achieve several goals set for 2020.
 Looking ahead, they have established broad-reaching Ambition 2030 goals
aimed at enabling positive impact on the environment while creating value for
consumers and shareholders.

Safety & Sustainability in supply chain:

 Manufacturing: Between the procurement of raw materials and the creation of
a product, the company has strived to reduce waste, water, energy, and CO2
through systemic conservation efforts. PGHH applies smart eco-design through
innovative construction process improvements, and it re-uses when feasible,
giving new life to what was once waste.
 Finished Product Logistics: In the logistics stage, the company reduces waste in
customization by applying more sustainable designs. The company has also
optimized its transportation efficiency by making changes to the rate, route,
mode and method of transportation. PGHH has focused on eliminating
inefficiencies such as loading and unloading delays, rush transport upcharges,
dead legs (empty trucks) and P&G production line stoppage.
 Supplier Engagement: The company has collaborated closely with suppliers
across the entire supply chain. It has implemented a supplier sustainability

8 January 2019 11
 P&G Hygiene and Healthcare

scorecard, which assesses the environmental footprint of its suppliers, enabling

P&G to partner and help reduce the environmental impact along the supply
chain.

Environmental Protection:
 As the company is on its way to achieve many of its 2020 environmental
sustainability goals, during the last year, the company announced its broad-
reaching global environmental sustainability goals for 2030 titled - Ambition
2030. As a responsible corporate citizen, environmental sustainability is one of
PGHH’s focus areas and it continues to positively impact communities that it
operates in.
 P&G’s Ambition 2030 environmental sustainability goals aim to enable and
inspire positive impact while creating value for the company, its partners, and
consumers.
 The framework for PGHH’s goals span across four areas – brands, supply chain,
society and employees. It seeks to address two of the world’s most pressing
environmental challenges – finite resources and growing consumption.
 The company’s vision is to bring about a positive difference by aiming to use
100% renewable or recyclable materials for its products and packaging; cut
greenhouse gas emissions by half, power its plants with 100% renewable
energy, and source at least 5b liters of water from circular sources and design
products that delight consumers while maximizing conservation of resources.
 The new Managing Director, Mr. Madhusudan Gopalan announced the
company’s broad-reaching environmental sustainability goals designed to
enable responsible consumption and sustainable manufacturing:
a) All of P&G’s brands will enable responsible consumption through packaging
that is 100% recyclable or reusable by 2030.
b) As a company, it will launch sanitary napkin recycling programs in 10 major
cities across the world by 2030; with India as one of the priority countries
where PGHH will launch in 2019.
c) By 2030, 100% of P&G’s manufacturing sites across the globe will cut
greenhouse gas emissions in half as compared to their 2010 baseline.
Globally, the company will source at least 5b liters of water by re-using
water it uses in existing operations.
 Company’s Head Office in Mumbai reduced its annual energy consumption by
over 23.5% over the last 15 years. The company’s Goa plant is a ‘zero waste to
landfill’ site, which means there is no manufacturing discharge into the
environment.
 In the last five years, the Goa plant has reduced its carbon emission by 17.5%.
During this period, the plant also improved its energy and water consumption at
78.9%.
 The plant is also leveraging technology, experts, employees and renewable
sources of energy to reduce overall footprint and make its operations more
sustainable.

8 January 2019 12
 P&G Hygiene and Healthcare

Financials and Valuations

Standalone - Income Statement (INR M)
Y/E June FY15 FY16 FY17 FY18 FY19E FY20E FY21E
Total Income from Operations 23,338 22,754 23,204 24,553 29,119 33,580 39,885
Change (%) 13.8 -2.5 2.0 5.8 18.6 15.3 18.8
Raw Materials 9,209 8,848 9,150 9,487 11,269 12,895 15,156
% of Sales 39.5 38.9 39.4 38.6 38.7 38.4 38.0
Employees Cost 1,133 1,174 1,141 1,152 1,427 1,645 1,875
% of Sales 4.9 5.2 4.9 4.7 4.9 4.9 4.7
Other Expenses 8,152 6,674 6,267 7,634 8,353 9,485 11,367
% of Sales 34.9 29.3 27.0 31.1 28.7 28.2 28.5
Total Expenditure 18,494 16,696 16,558 18,273 21,049 24,024 28,398
% of Sales 79.2 73.4 71.4 74.4 72.3 71.5 71.2
EBITDA 4,844 6,059 6,646 6,280 8,070 9,555 11,487
Margin (%) 20.8 26.6 28.6 25.6 27.7 28.5 28.8
Depreciation 525 517 597 524 562 658 748
EBIT 4,319 5,542 6,049 5,756 7,508 8,897 10,739
Int. and Finance Charges 57 63 104 53 35 35 36
Other Income 746 876 773 241 448 572 587
PBT bef. EO Exp. 5,008 6,355 6,718 5,944 7,921 9,433 11,289
EO Items 0 0 0 0 -126 0 0
PBT after EO Exp. 5,008 6,355 6,718 5,944 7,795 9,433 11,289
Total Tax 1,547 2,130 2,390 2,116 2,693 3,207 3,838
Tax Rate (%) 30.9 33.5 35.6 35.6 34.5 34.0 34.0
Reported PAT 3,461 4,225 4,327 3,828 5,102 6,226 7,451
Adjusted PAT 3,461 4,225 4,327 3,746 5,228 6,226 7,451
Change (%) 14.6 22.1 2.4 -13.4 39.6 19.1 19.7
Margin (%) 14.8 18.6 18.6 15.3 18.0 18.5 18.7

Standalone - Balance Sheet (INR M)

Y/E June FY15 FY16 FY17 FY18 FY19E FY20E FY21E
Equity Share Capital 325 325 325 325 325 325 325
Total Reserves 13,133 16,193 4,937 7,730 9,351 11,281 13,591
Net Worth 13,457 16,518 5,261 8,055 9,676 11,606 13,915
Deferred Tax Liabilities -40 -89 -263 -230 -253 -278 -306
Total Loans 0 0 0 0 0 0 0
Capital Employed 13,418 16,428 4,999 7,825 9,423 11,328 13,610
Gross Block 5,222 5,819 6,505 6,612 7,504 8,604 9,748
Less: Accum. Deprn. 2,128 2,645 3,173 3,169 3,731 4,389 5,138
Net Fixed Assets 3,093 3,174 3,332 3,443 3,773 4,215 4,611
Capital WIP 390 347 408 215 422 422 420
Total Investments 0 0 0 0 0 0 1
Curr. Assets, Loans&Adv. 15,962 18,053 8,073 11,308 16,744 19,926 24,011
Inventory 1,191 1,275 1,774 1,236 1,755 2,024 2,404
Account Receivables 1,139 1,496 1,328 1,485 1,675 1,932 2,295
Cash and Bank Balance 6,178 10,732 1,168 3,996 8,708 11,350 14,674
Loans and Advances 7,454 4,550 3,803 4,591 4,605 4,621 4,638
Curr. Liability & Prov. 6,027 5,146 6,815 7,140 11,517 13,236 15,433
Account Payables 3,723 3,241 3,632 4,062 4,570 5,267 6,252
Other Current Liabilities 2,234 1,838 2,625 2,548 2,803 3,083 3,391
Provisions 70 67 558 530 4,143 4,886 5,790
Net Current Assets 9,934 12,907 1,258 4,168 5,227 6,691 8,578
Appl. of Funds 13,418 16,428 4,999 7,825 9,423 11,328 13,610
E: MOSL Estimates 0 0 0 0 0 0 0

8 January 2019 13
 P&G Hygiene and Healthcare

Financials and Valuations

Ratios
Y/E June FY15 FY16 FY17 FY18 FY19E FY20E FY21E
Basic (INR)
EPS 106.5 130.0 133.1 117.8 157.0 191.6 229.3
Cash EPS 122.8 146.1 151.7 131.5 178.4 212.1 252.6
BV/Share 414.6 508.9 162.1 248.2 298.1 357.5 428.7
DPS 0.0 36.0 389.0 40.0 111.1 132.3 158.4
Payout (%) 0.0 27.7 292.2 34.0 70.8 69.0 69.0
Valuation (x)
P/E 93.3 76.5 74.7 84.4 63.3 51.9 43.4
Cash P/E 80.9 68.0 65.5 75.6 55.7 46.9 39.4
P/BV 24.0 19.5 61.3 40.1 33.3 27.8 23.2
EV/Sales 13.6 13.7 13.9 13.0 10.8 9.3 7.7
EV/EBITDA 65.3 51.5 48.4 50.7 38.9 32.6 26.8
Dividend Yield (%) 0.0 0.4 3.9 0.4 1.1 1.3 1.6
FCF per share 131.4 92.5 123.7 116.3 240.4 198.0 244.7
Return Ratios (%)
RoE 29.5 28.2 39.7 56.3 59.0 58.5 58.4
RoCE 30.0 28.6 41.0 60.2 60.4 60.2 59.9
Working Capital Ratios
Asset Turnover (x) 1.7 1.4 4.6 3.1 3.1 3.0 2.9
Inventory (Days) 19 18 24 22 22 22 22
Debtor (Days) 16 19 22 21 21 21 21
Creditor (Days) 47 51 54 57 57 57 57
Leverage Ratio (x)
Debt/Equity 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Standalone - Cash Flow Statement (INR

Y/E June FY15 FY16 FY17 FY18 FY19E FY20E FY21E
PBT 5,008 6,355 6,718 5,818 7,795 9,433 11,289
Depreciation 525 517 597 524 562 658 748
Net interest expense -658 -785 -644 -147 -413 -537 -551
Others 212 66 146 225 0 0 0
(Inc)/Dec in WC 1,225 -615 135 466 3,653 1,178 1,437
Taxes -2,056 -2,013 -2,500 -2,731 -2,693 -3,207 -3,838
CF from Operations 4,256 3,525 4,453 4,155 8,904 7,526 9,086
(Inc)/Dec in FA 10 -523 -438 -381 -1,100 -1,100 -1,142
Free Cash Flow 4,266 3,002 4,015 3,774 7,804 6,426 7,944
(Pur)/Sale of Investments 0 0 0 0 0 0 -1
Others 274 2,770 2,009 115 551 547 559
CF from Investments 284 2,247 1,571 -266 -549 -553 -584
Issue of Shares 0 0 0 0 0 0 0
Inc/(Dec) in Debt 0 0 0 0 0 0 0
Dividend Paid -893 -1,182 -15,550 -1,055 -3,607 -4,296 -5,141
Interest Paid -9 -35 -37 -6 -35 -35 -36
Others -152 0 0 0 0 0 0
CF from Fin. Activity -1,053 -1,217 -15,587 -1,061 -3,642 -4,331 -5,177
Inc/Dec of Cash 3,487 4,554 -9,564 2,828 4,712 2,642 3,324
Opening Balance 2,691 6,178 10,732 1,168 3,996 8,708 11,350
Closing Balance 6,178 10,732 1,168 3,996 8,708 11,350 14,674
E: MOSL Estimates

8 January 2019 14
 P&G Hygiene and Healthcare

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 becomes inconsistent with the investment rating legend, the Research Analyst shall within 28 days of the
inconsistency, 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 Securities Ltd. (MOSL)* is a SEBI Registered Research Analyst having registration no. INH000000412. MOSL, 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. MOSL is a subsidiary company of Motilal Oswal Financial Service Ltd. (MOFSL). MOFSL is a listed public company, the details in respect of which are available on
www.motilaloswal.com. 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 (MCX) & National Commodity & Derivatives Exchange Ltd. (NCDEX) for its stock broking
activities & is Depository participant with Central Depository Services Limited (CDSL) & National Securities Depository Limited (NSDL) and is member of Association of Mutual
Funds of India (AMFI) for distribution of financial products. Details of associate entities of Motilal Oswal Securities Limited are available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOSL 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 MOSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOSL 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
be aware that MOSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant
banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Securities Limited are available on the website at
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 MOSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from
MOSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
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 use would be contrary to law, regulation or which would subject MOSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
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 Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
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
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Securities Limited (MOSL) 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 MOSL 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 MOSL , 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., MOSL 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
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL
in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”,
of which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOSL, 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 MOSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOSL, 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 MOSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOSL has not received any compensation or other benefits from third party in connection with the research report
10 MOSL has not engaged in market making activity for the subject company

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 P&G Hygiene and Healthcare

****************************************************************
****************************************************************
The associates of MOSL 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 MOSL
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 MOSL 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 MOSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOSL 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 MOSL 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 MOSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature.
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,
representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The
report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOSL will not treat recipients as
customers by virtue of their receiving this report.
Disclaimer:
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, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for
informational purpose 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 discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this
document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this
document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views
expressed may not be 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. MOSL, 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 MOSL. 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 person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or
entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law,
regulation or which would subject MOSL 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 of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. Neither
the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue
or lost profits that may arise from or in connection with the use of the information. The person accessing this information specifically agrees to exempt MOSL or any of its affiliates
or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOSL or any of its affiliates or employees responsible for any such misuse
and further agrees to hold MOSL 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.: 022-3980
4263; www.motilaloswal.com. Correspondence Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 3080
1000. Compliance Officer: Neeraj Agarwal, Email Id: [email protected], Contact No.:022-38281085.
Registration details: MOSL: SEBI Registration: INZ000158836 (BSE/NSE/MCX/NCDEX); CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412.
AMFI: ARN 17397. Investment Adviser: INA000007100. Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670) offers PMS and Mutual
Funds products. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) offers wealth management solutions. *Motilal Oswal Securities Ltd.
is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs, Insurance and IPO products. *Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. offers Real Estate
products. * Motilal Oswal Private Equity Investment Advisors Pvt. Ltd. offers Private Equity products.
* 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. The existing registration no(s) of MOSL would be used until receipt of new MOFSL registration numbers.

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