INDIA FMCG

Colgate-Palmolive (India)
Result Update
26 October 2013
Target Price CMP* Downside Previous Target Previous Rating Price Performance (%)* 1M CLGT NIFTY 5.0 5.3 6M (8.2) 4.7 Rs1215 Key Data Rs1279 Bloomberg Code

Hold

High A&P spends impact profitability

We maintain Hold rating on the stock with further risk of high A&P spends and losing market share though lower competitive intensity could boost margins. Despite launch of P&Gs Oral-B toothpaste during the quarter, the company was able to increase its market share in competitive category with 10% volume growth in the toothpaste category. However, in order to maintain its share of voice, advertising and other expenses grew by 34% YoY and 46% YoY respectively impacting operating margins which were at a 11 quarter low while operating profits declined by 10% YoY and PAT by 25% YoY. We expect the overhang and uncertainty to continue for the next couple of quarters and impact valuations as seen in the past 3 months where the stock under-performed the FMCG index and corrected by 12%. Sales to remain robust: Despite the launch of a toothpaste by P&G during the quarter, Colgate was able to grow its volume market share to 56%, up 140bps over 9MCY13 which helped the company post healthy 10% volume growth in the toothpaste category and 9% overall volume growth. Healthy growth in flagship brands Colgate Dental cream, Colgate Total, Active Salts and recently launched Visible Whites during the quarter helped topline grow by 15.8% YoY to Rs8957mn in-line with expectations. Market share in the toothbrush category grew as well to 41.4% from 39.3% aiding growth. High A&P spends on the back of P&G launch: Advertising spends for the company increased 34% YoY while admin and other expenses which includes promotion expenses increased by 46% YoY during the quarter following the entry of P&G into the toothpaste market. Though A&P spends will remain lumpy, we expect high intensity to remain for a few quarters with Colgate maintaining its share of voice to defend its market share as seen from Q2FY14 results. Hence we have modelled A&P spends of 18% of sales in FY14 against 3-year average of ~15.8%. Profitability takes a back seat during the quarter: Despite gross margin increase of 142bps to 59.6% during the quarter, operating margins for the company declined by 453bps to 15.8%, the lowest in the past 11 quarters. High A&P spends impacted operating profit which declined by 10% YoY to Rs1413mn while PAT declined by 25% YoY to Rs1095mn. We have lowered our operating profit by 10.9%/7.8% for FY14/FY15 on the back of higher A&P spends and other expenses while PAT has been lowered by 9.3%/7.6% for the same period following lower operating profit. Maintain Hold: Colgate is currently trading at 33.7x and 28.4x FY14E and FY15E respectively and we maintain Hold rating on the stock with a revised target price of Rs1215 (25x Sept 2015). The stock has underperformed the FMCG index and corrected ~12% in last 3 months on the back of increased competition in the oral care category with significant de-rating in multiples. Key downside risk could be further increase in A&P spends and loss of market share impacting volume growth while upside could be lower competitive intensity improving margins.
Y/E Mar (Rsmn) Net Sales Employee cost COGS Admin & Other Exp EBITDA EBITDA margin (%) Depreciation Other income Exceptional Item PBT Tax PAT Adj PAT Q2FY14 8,957 535 3,621 3,388 1,413 15.8 117 181 1,477 382 1,095 1,095 Q2FY13 7,738 543 3,238 2,385 1,571 20.3 106 335 1,801 350 1,451 1,451 YoY(%) 15.8 (1.5) 11.8 42.1 (10.1) (453) bps Q1FY14 8,446 620 3,283 3,042 1,502 17.8 117 322 706 2,413 561 1,852 1,297 QoQ(%) 6.0 (13.8) 10.3 11.4 (5.9) (201) bps Q2FY14E 8,976 590 3,500 3,080 1,806 20.1 115 170 1,861 447 1,414 1,414 Var(%) (0.2) (9.4) 3.5 10.0 (21.8) (434) bps

CLGT IN 136.0 136.0 173.9/2.8 1580/1190 1580/309 154092

5% Curr Shares O/S (mn) Rs1416 Diluted Shares O/S(mn) Hold Mkt Cap (Rsbn/USDbn) 52 Wk H / L (Rs) 1Yr 5 Year H / L (Rs) 3.9 Daily Vol. (3M NSE Avg.) 8.5

*as on 25October2013; Source: Bloomberg, Centrum Research

Shareholding pattern (%)

Sep-13 Promoter FIIs Dom. Inst. Public & Others 51.0 19.8 6.7 22.5 Jun-13 51.0 21.3 5.6 22.0 Mar-13 51.0 21.6 5.2 22.2 Dec-12 51.0 21.6 5.4 22.1

Source: BSE

Colgate underperforming FMCG Index

140 130 120 110 100 90 80 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 NIFTY

COLGATE

FMCG INDEX

Source: Company, Centrum Research Estimates

Earning Revision
FY14E Particulars (Rs mn) Sales EBITDA EBITDA Margin (%) PAT New Old Chg (%) 0.0 (10.9) (9.3) New FY15E Old Chg (%) 0.0 (7.8) (7.6)

35,959 35,959 6,710 18.7 5,166 7,535 21.0 5,697

41,979 41,979 8,328 19.8 6,115 9,030 21.5 6,619

Source: Centrum Research Estimates

Centrum vs. Bloomberg Consensus*

FY14E Particulars (Rs mn) Sales EBITDA PAT Centrum 35,959 6,710 5,166 BBG 36,064 7,237 5,543 Var (%) Centrum (0.3) (7.3) (6.8) 41,979 8,328 6,115 FY15E BBG 41,651 8,495 6,328 Var (%) 0.8 (2.0) (3.4)

*as on 19 October2013;
Bloomberg Consensus BUY 10 SELL 21 HOLD 16 Target Price (Rs) 1304 Centrum Target Price (Rs) 1215 Variance (%)

(6.8)

*as on 25 October2013; Source: Bloomberg, Centrum Research

Ankit Kedia, ankit.kedia@centrum.co.in

91 22 4215 9634 (20.6)

(18.0)

(38.8) (38.8) (15.6) (15.6) Adj. PAT 4,465 4,968 5,166 6,115 7,102

(24.5)

(22.6)

Source: Company, Centrum Research Y/E Mar (Rsmn) FY12 FY13 FY14E FY15E FY16E Revenue 26,239 30,841 35,959 41,979 48,472 YoY (%) 18.2 17.5 16.6 16.7 15.5 EBITDA 5,092 5,771 6,710 8,328 9,690 EBITDA(%) 19.4 18.7 18.7 19.8 20.0

YoY (%) Adj. EPS (Rs) 10.9 32.8 11.3 36.5 4.0 38.0 18.4 45.0 16.1 52.2

RoE (%) 109 107 111 110 119

RoCE (%) 109 107 101 110 119

PE (x) 39.0 35.0 33.7 28.4 24.5

EV/EBITDA (x) 33.5 29.3 25.1 20.0 17.1

Source: Company, Centrum Research Estimates

Centrum Equity Research is available on Bloomberg, Thomson Reuters and FactSet

Exhibit 1: Sensitivity Analysis

Sensitivity to key variables (FY14E) Volume growth Gross margins Source: Company, Centrum Research Estimates % increase 1 1 % impact on EBITDA 1.56 5.30 % impact on EPS 1.47 5.09

Exhibit 2: 1 year forward EV/EBITDA chart

35.0 30.0 25.0 20.0 15.0 10.0

Exhibit 3: 1 year forward P/E chart

45 40 35 30 25 20 15 10

Dec-09

Dec-10

Dec-11

Dec-12

Aug-07

Aug-08

Aug-09

Aug-10

Aug-11

Aug-12

Aug-13

Dec-07

Dec-08

Apr-07

Apr-08

Apr-09

Apr-10

Apr-11

Apr-12

Apr-13

Dec-07

Dec-08

Dec-09

Dec-10

Dec-11

Dec-12

Aug-07

Aug-08

Aug-09

Aug-10

Aug-11

Aug-12

EV/EBITDA

Mean

Mean + Std Dev

Mean - Std Dev

P/E

Mean

Mean + Std Dev

Mean - Std Dev

Source: Bloomberg, Company, Centrum Research Estimates

Source: Bloomberg, Company, Centrum Research Estimates

Exhibit 4: Comparative Valuations

Company Colgate-Palmolive Hindustan Unilever* GSK-CH # Nestle India # ITC * Mkt Cap (Rsbn) 174 1,284 191 533 2,695 CAGR FY13-FY15E (%) Rev. EBITDA PAT 16.6 12.1 16.3 13.8 17.0 20.1 13.5 17.3 13.7 18.4 10.9 2.6 18.9 13.1 18.9 EBITDA Margin (%) FY13 FY14E FY15E 18.7 15.6 15.1 22.0 35.9 18.7 15.8 15.3 22.3 36.3 19.8 16.0 15.4 22.0 36.8 PE (x) FY13 FY14E FY15E 35.0 33.8 43.7 48.5 36.0 33.7 35.6 36.9 44.2 30.6 28.4 32.1 30.9 37.9 25.8 EV/EBITDA (x) FY13 FY14E FY15E 29.3 24.3 37.9 29.5 22.2 25.1 27.8 31.8 26.1 20.8 20.0 24.0 26.6 22.4 17.5 RoE (%) FY13 FY14E FY15E 107.4 122.7 34.9 71.6 36.1 111.5 110.1 34.8 60.3 36.2 110.0 98.4 35.2 58.6 37.7 Div Yield (%) FY13 FY14E FY15E 2.2 1.8 1.0 0.9 1.5 2.6 2.0 1.2 1.2 2.0 2.8 2.2 1.5 1.6 2.4

Source: *Bloomberg consensus, Companies; Centrum Research Estimates Note: # Y/E Dec

Colgate-Palmolive (India)

Aug-13

Apr-07

Apr-08

Apr-09

Apr-10

Apr-11

Apr-12

Apr-13

Exhibit 5: Quarterly Financials

Particulars (Rs mn) Net Sales Expenditure CoGS Employee Cost Advertising Expenses Other Expenditure EBIDTA Depreciation EBIT Interest Cost Other Income Exceptional Item PBT Tax Reported PAT Adj PAT Margins % Gross Margin EBIDTA EBIT PBT Adj PAT Growth % Net Sales EBIDTA EBIT PBT Adj PAT KPI's Volume growth % Source: Company, Centrum Research Q3FY12 6,696 2,651 534 1,075 1,145 1,291 99 1,192 6 300 0 1,485 330 1,156 1,156 Q4FY12 6,859 2,748 518 583 1,481 1,529 100 1,429 2 301 0 1,728 420 1,308 1,308 Q1FY13 7,361 2,997 624 837 1,478 1,424 105 1,319 0 312 0 1,632 457 1,174 1,174 Q2FY13 7,738 3,238 543 889 1,496 1,571 106 1,465 0 335 0 1,801 350 1,451 1,451 Q3FY13 7,626 3,044 631 999 1,664 1,288 113 1,175 0 328 0 1,504 393 1,111 1,111 Q4FY13 8,116 3,222 696 821 1,890 1,487 113 1,374 0 320 0 1,695 463 1,232 1,232 Q1FY14 8,446 3,283 620 1,014 2,028 1,502 117 1,385 0 322 706 2,413 561 1,852 1,297 Q2FY14 8,957 3,621 535 1,195 2,194 1,413 117 1,296 0 181 0 1,477 382 1,095 1,095

60.4 19.3 17.8 22.2 17.3

59.9 22.3 20.8 25.2 19.1

59.3 19.4 17.9 22.2 16.0

58.1 20.3 18.9 23.3 18.7

60.1 16.9 15.4 19.7 14.6

60.3 18.3 16.9 20.9 15.2

61.1 17.8 16.4 28.6 15.4

59.6 15.8 14.5 16.5 12.2

20.0 73.0 81.9 62.7 74.5

17.9 22.4 23.0 20.9 14.7

20.5 21.4 21.6 18.1 16.9

17.7 39.7 43.8 39.6 45.5

13.9 (0.2) (1.4) 1.2 (3.9)

18.3 (2.7) (3.8) (1.9) (5.8)

14.7 5.5 5.0 47.9 10.5

15.8 (10.1) (11.5) (18.0) (24.5)

13.0

11.0

11.0

10.0

8.0

12.0

9.0

10.0

Exhibit 6: Key Performance Indicators

Assumptions Volume growth % Source: Company, Centrum Research Estimates FY12 12.0 FY13 11.0 FY14E 12.0 FY15E 12.0 FY16E 12.0

Colgate-Palmolive (India)

Financials
Exhibit 7: Income Statement
Y/E March (Rsmn) Net Sales Growth (%) Employee Cost %of Sales Cost of Goods Sold % of sales Admin & other expenses % of sales EBIDTA EBIDTA Margins (%) Depreciation Interest expenses PBT for operations Other income Exceptional item PBT Provision for tax Effective tax rate (%) Net Profit Adj Net Profit FY12 26,239 18.2 2,156 8.2 10,502 40.0 8,489 32.4 5,092 19.4 393 15 4,683 1,201 5,884 1,419 24.1 4,465 4,465 FY13 30,841 17.5 2,494 8.1 12,502 40.5 10,074 32.7 5,771 18.7 437 5,334 1,296 6,630 1,663 25.1 4,968 4,968 FY14E 35,959 16.6 2,294 6.4 14,312 39.8 12,644 35.2 6,710 18.7 465 6,245 802 706 7,754 2,033 26.2 5,721 5,166 FY15E 41,979 16.7 2,592 6.2 16,792 40.0 14,268 34.0 8,328 19.8 491 7,837 680 8,517 2,402 28.2 6,115 6,115 FY16E 48,472 15.5 2,942 6.1 19,389 40.0 16,452 33.9 9,690 20.0 518 9,171 720 9,891 2,789 28.2 7,102 7,102

Exhibit 9: Balance Sheet

Y/E March (Rsmn) Share Capital Reserves & Surplus Total Shareholders Funds Loan Funds Total Capital Employed Fixed Asset Gross Block Less:- Accumulated Depreciation Net Block Capital WIP Total fixed assets Investments Deferred Tax Asset Inventory Debtors Loans & advances Cash & bank balances Interest Accrued on Deposits Total current assets Current liabilities & provisions Net current assets Total FY12 136 4,218 4,354 4,354 FY13 136 4,760 4,896 4,896 FY14E 136 5,230 5,366 5,366 FY15E 136 5,617 5,753 5,753 FY16E 136 6,036 6,172 6,172

6,132 3,587 2,544 694 3,238 471 121 2,177 873 1,254 3,090 64 7,458 6,934 524 4,354

6,735 3,929 2,807 1,020 3,826 471 224 1,853 812 1,560 4,288 33 8,546 8,172 374 4,896

7,135 4,393 2,742 800 3,542 471 224 2,353 985 1,618 4,912 33 9,901 8,772 1,129 5,366

7,535 4,885 2,650 800 3,450 471 224 2,760 1,150 1,889 6,644 33 12,476 10,869 1,607 5,753

7,935 5,403 2,532 800 3,332 471 224 3,187 1,328 2,181 7,691 33 14,420 12,275 2,145 6,172

Source: Company, Centrum Research Estimates

Exhibit 8: Key Ratios

Y/E March Growth ratios (%) Revenues EBIDTA Adj Net Profit Margin ratios (%) EBIDTA Margins PBIT Margins PBT Margins PAT Margins Return Ratios (%) ROCE RoNW RoIC Turnover Ratios Inventory period Collection period Payment period Working Capital Cycle Solvency Ratio (x) Debt-equity Net debt-equity Current ratio Interest coverage ratio Dividend Dividend (Rs) Dividend Yield (%) Dividend Payout (%) Per Share (Rs) Basic (end pt) EPS - Rep FDEPS (Adjusted) Basic (end pt) EPS - Adj FDEPS (Reported) CEPS Book Value Valuations (x) PER P/BV EV/EBIDTA EV/Sales M-cap/Sales FY12 18.2 13.0 10.9 19.4 17.9 22.4 17.0 109.2 109.0 3,236 26 9 66 (37) (0.8) 1.1 310.6 25.0 2.0 88.5 32.8 32.8 32.8 32.8 35.7 32.0 39.0 39.9 33.5 6.5 6.6 FY13 17.5 13.3 11.3 18.7 17.3 21.5 16.1 107.4 107.4 1,148 24 10 71 (47) (1.0) 1.0 NA 28.0 2.2 89.1 36.5 36.5 36.5 36.5 39.7 36.0 35.0 35.5 29.3 5.5 5.6 FY14E 16.6 16.3 4.0 18.7 17.4 21.6 15.9 101.3 111.5 10,445 21 9 74 (39) (1.0) 1.1 NA 33.0 2.6 91.8 42.1 38.0 38.0 42.1 45.5 39.5 33.7 32.4 25.1 4.7 4.8 FY15E 16.7 24.1 18.4 19.8 18.7 20.3 14.6 110.0 110.0 (1,136) 22 9 72 (44) (1.2) 1.1 NA 36.0 2.8 93.7 45.0 45.0 45.0 45.0 48.6 42.3 28.4 30.2 20.0 4.0 4.1 FY16E 15.5 16.4 16.1 20.0 18.9 20.4 14.7 119.1 119.1 (547) 22 9 75 (42) (1.3) 1.2 NA 42.0 3.3 94.1 52.2 52.2 52.2 52.2 56.0 45.4 24.5 28.2 17.1 3.4 3.6

Source: Company, Centrum Research Estimates

Exhibit 10: Cash Flow

Y/E March (Rsmn) CF from operations Profit before tax Depreciation & amortisation Others CF before WC changes Working capital changes Cash inflow from operations Income tax paid Cash from Operations Cash from investing Capex Investments Other Income Cash from investing Cash from financing Borrowings/ repayments Dividend paid Interest paid Cash from financing Net change in cash FY12 5,884 393 (1,182) 5,095 (787) 4,308 (1,419) 2,889 (904) (84) 1,201 212 (1) (3,951) (15) (3,967) (866) FY13 6,630 437 (1,495) 5,572 1,348 6,919 (1,663) 5,257 (930) 0 1,296 367 (4,426) (4,426) 1,198 FY14E 7,754 465 (802) 7,417 (130) 7,286 (2,033) 5,253 (180) 802 622 (5,251) (5,251) 624 FY15E 8,517 491 (680) 8,328 1,254 9,582 (2,402) 7,180 (400) 680 280 (5,728) (5,728) 1,732 FY16E 9,891 518 (720) 9,690 509 10,199 (2,789) 7,409 (400) 720 320 (6,683) (6,683) 1,046

Source: Company, Centrum Research Estimates

Source: Company, Centrum Research Estimates

Colgate-Palmolive (India)

Appendix A
Disclaimer
Centrum Broking Limited (Centrum) is a full-service, Stock Broking Company and a member of The Stock Exchange, Mumbai (BSE) and National Stock Exchange of India Ltd. (NSE). Our holding company, Centrum Capital Ltd, is an investment banker and an underwriter of securities. As a group Centrum has Investment Banking, Advisory and other business relationships with a significant percentage of the companies covered by our Research Group. Our research professionals provide important inputs into the Group's Investment Banking and other business selection processes. Recipients of this report should assume that our Group is seeking or may seek or will seek Investment Banking, advisory, project finance or other businesses and may receive commission, brokerage, fees or other compensation from the company or companies that are the subject of this material/report. Our Company and Group companies and their officers, directors and employees, including the analysts and others involved in the preparation or issuance of this material and their dependants, may on the date of this report or from, time to time have "long" or "short" positions in, act as principal in, and buy or sell the securities or derivatives thereof of companies mentioned herein. Centrum or its affiliates do not own 1% or more in the equity of this company Our sales people, dealers, traders and other professionals may provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein, and our proprietary trading and investing businesses may make investment decisions that are inconsistent with the recommendations expressed herein. We may have earlier issued or may issue in future reports on the companies covered herein with recommendations/ information inconsistent or different those made in this report. In reviewing this document, you should be aware that any or all of the foregoing, among other things, may give rise to or potential conflicts of interest. We and our Group may rely on information barriers, such as "Chinese Walls" to control the flow of information contained in one or more areas within us, or other areas, units, groups or affiliates of Centrum. Centrum or its affiliates do not make a market in the security of the company for which this report or any report was written. Further, Centrum or its affiliates did not make a market in the subject companys securities at the time that the research report was published. This report is for information purposes only and this document/material should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this document nor anything contained herein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. This document does not solicit any action based on the material contained herein. It is for the general information of the clients of Centrum. Though disseminated to clients simultaneously, not all clients may receive this report at the same time. Centrum will not treat recipients as clients by virtue of their receiving this report. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Similarly, this document does not have regard to the specific investment objectives, financial situation/circumstances and the particular needs of any specific person who may receive this document. The securities discussed in this report may not be suitable for all investors. The securities described herein may not be eligible for sale in all jurisdictions or to all categories of investors. The countries in which the companies mentioned in this report are organized may have restrictions on investments, voting rights or dealings in securities by nationals of other countries. The appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives. Persons who may receive this document should consider and independently evaluate whether it is suitable for his/ her/their particular circumstances and, if necessary, seek professional/financial advice. Any such person shall be responsible for conducting his/her/their own investigation and analysis of the information contained or referred to in this document and of evaluating the merits and risks involved in the securities forming the subject matter of this document. The projections and forecasts described in this report were based upon a number of estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections and forecasts were based will not materialize or will vary significantly from actual results, and such variances will likely increase over time. All projections and forecasts described in this report have been prepared solely by the authors of this report independently of the Company. These projections and forecasts were not prepared with a view toward compliance with published guidelines or generally accented accounting principles. No independent accountants have expressed an opinion or any other form of assurance on these projections or forecasts. You should not regard the inclusion of the projections and forecasts described herein as a representation or warranty by or on behalf of the Company, Centrum, the authors of this report or any other person that these projections or forecasts or their underlying assumptions will be achieved. For these reasons, you should only consider the projections and forecasts described in this report after carefully evaluating all of the information in this report, including the assumptions underlying such projections and forecasts. The price and value of the investments referred to in this document/material and the income from them may go down as well as up, and investors may realize losses on any investments. Past performance is not a guide for future performance. Future returns are not guaranteed and a loss of original capital may occur. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to change without notice. Centrum does not provide tax advice to its clients, and all investors are strongly advised to consult regarding any potential investment. Centrum and its affiliates accept no liabilities for any loss or damage of any kind arising out of the use of this report. Foreign currencies denominated securities are subject to fluctuations in exchange rates that could have an adverse effect on the value or price of or income derived from the investment. In addition, investors in securities such as ADRs, the value of which are influenced by foreign currencies effectively assume currency risk. Certain transactions including those involving futures, options, and other derivatives as well as non-investment-grade securities give rise to substantial risk and are not suitable for all investors. Please ensure that you have read and understood the current risk disclosure documents before entering into any derivative transactions. This report/document has been prepared by Centrum, based upon information available to the public and sources, believed to be reliable. No representation or warranty, express or implied is made that it is accurate or complete. Centrum has reviewed the report and, in so far as it includes current or historical information, it is believed to be reliable, although its accuracy and completeness cannot be guaranteed. The opinions expressed in this document/material are subject to change without notice and have no obligation to tell you when opinions or information in this report change. This report or recommendations or information contained herein do/does not constitute or purport to constitute investment advice in publicly accessible media and should not be reproduced, transmitted or published by the recipient. The report is for the use and consumption of the recipient only. This publication may not be distributed to the public used by the public media without the express written consent of Centrum. This report or any portion hereof may not be printed, sold or distributed without the written consent of Centrum.

Colgate-Palmolive (India)

The distribution of this document in other jurisdictions may be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Neither Centrum nor 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. This document does not constitute an offer or invitation to subscribe for or purchase or deal in any securities and neither this document nor anything contained herein shall form the basis of any contract or commitment whatsoever. This document is strictly confidential and is being furnished to you solely for your information, may not be distributed to the press or other media and may not be reproduced or redistributed to any other person. The distribution of this report in other jurisdictions may be restricted by law and persons into whose possession this report comes should inform themselves about, and observe any such restrictions. By accepting this report, you agree to be bound by the fore going limitations. No representation is made that this report is accurate or complete. The opinions and projections expressed herein are entirely those of the author and are given as part of the normal research activity of Centrum Broking and are given as of this date and are subject to change without notice. Any opinion estimate or projection herein constitutes a view as of the date of this report and there can be no assurance that future results or events will be consistent with any such opinions, estimate or projection. This document has not been prepared by or in conjunction with or on behalf of or at the instigation of, or by arrangement with the company or any of its directors or any other person. Information in this document must not be relied upon as having been authorized or approved by the company or its directors or any other person. Any opinions and projections contained herein are entirely those of the authors. None of the company or its directors or any other person accepts any liability whatsoever for any loss arising from any use of this document or its contents or otherwise arising in connection therewith. Centrum and its affiliates have not managed or co-managed a public offering for the subject company in the preceding twelve months. Centrum and affiliates have not received compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for service in respect of public offerings, corporate finance, debt restructuring, investment banking or other advisory services in a merger/acquisition or some other sort of specific transaction. As per the declarations given by them, Mr. Ankit Kedia, research analyst and and/or any of his family members do not serve as an officer, director or any way connected to the company/companies mentioned in this report. Further, as declared by him, he has not received any compensation from the above companies in the preceding twelve months. He does not hold any shares by him or through his relatives or in case if holds the shares then will not to do any transactions in the said scrip for 30 days from the date of release such report. Our entire research professionals are our employees and are paid a salary. They do not have any other material conflict of interest of the research analyst or member of which the research analyst knows of has reason to know at the time of publication of the research report or at the time of the public appearance. While we would endeavour to update the information herein on a reasonable basis, Centrum, its associated companies, their directors and employees are under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent Centrum from doing so. Non-rated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable regulations and/or Centrum policies, in circumstances where Centrum is acting in an advisory capacity to this company, or any certain other circumstances. Rating Criteria Buy: TP upside of >15% (>25% for stocks with market cap <Rs20bn) Hold: TP upside of between -15% and +15% (-25% to +25% for stocks with market cap <Rs20bn) Sell: TP downside of 15% or more (more than 25% for stocks with market cap of <Rs20bn)
Member (NSE, BSE, MCX-SX), Depository Participant (CDSL) and SEBI registered Portfolio Manager Registration Nos. CAPITAL MARKET SEBI REGN. NO.: BSE: INB011454239, NSE: INB231454233 DERIVATIVES SEBI REGN. NO.: NSE: INF231454233 (TRADING & SELF CLEARING MEMBER) CDSL DP ID: 12200.SEBI REGISTRATION NO.: IN-DP-CDSL-661-2012 PMS REGISTRATION NO.: INP000004383 MCX SX (Currency Derivative segment) REGN. NO.:INE261454230 Website: www.centrum.co.in Investor Grievance Email ID: investor.grievances@centrum.co.in Compliance Officer Details: Mr. Ashok Devarajan; Tel: (022) 4215 9000; Email ID: compliance@centrum.co.in

Centrum Broking Limited

Registered Office Address BombayMutualBuilding , 2nd Floor, Dr. D. N. Road, Fort, Mumbai - 400 001 Correspondence Address Centrum House 6th Floor, CST Road, Near VidyaNagariMarg, Kalina, Santacruz (E), Mumbai 400 098. Tel: (022) 4215 9000

Colgate-Palmolive (India)