hindustan unilever -...

Hindustan Unilever

“ In the Pink of Health”; Accumulate

May 14, 2018

Prabhudas Lilladher Pvt. Ltd. and/or its associates (the 'Firm') does and/or seeks to do business with companies covered in its research reports. As a result investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of the report. Investors should consider this report as only a single factor in making their investment decision.

Please refer to important disclosures and disclaimers at the end of the report

Q4FY18 REsult Update

Amnish Aggarwal [email protected] +91‐22‐66322233

Nishita Doshi [email protected] +91‐22‐66322381

Rating Accumulate

Price Rs1,505

Target Price Rs1,555

Implied Upside 3.3%

Sensex 35,557

Nifty 10,807

(Prices as on May 14, 2018)

Trading data

Market Cap. (Rs bn) 3,250.7

Shares o/s (m) 2,160.0

3M Avg. Daily value (Rs m) 1466.3

Major shareholders

Promoters 67.19%

Foreign 12.56%

Domestic Inst. 6.85%

Public & Other 13.39%

Stock Performance

(%) 1M 6M 12M

Absolute 6.8 17.3 53.6

Relative 2.8 9.3 35.8

How we differ from Consensus

EPS (Rs) PL Cons. % Diff.

2019 28.0 28.3 ‐1.0

2020 33.4 33.5 ‐0.1

Price Performance (RIC: HLL.BO, BB: HUVR IN)

Source: Bloomberg

0200400600800

1,0001,2001,4001,600

May‐17

Jul‐17

Sep‐17

Nov‐17

Jan‐18

Mar‐18

(Rs)

HUVR has reported a robust 11% volume growth and 240bps margin expansion as benefits of cost efficiency programs and improved product mix have boosted profitability. Medium term outlook looks encouraging given 1) gradual pick up in

rural demand 2) sustained benefits from GST 3) normalisation of trade channels 4) low base for 1Q and 2Q19 and 5) success of new launches in naturals segment. Although HUL expects increase in competitive activity and higher input costs,

sustained benefits of Premiumisation in Home Care, success in naturals with Lever Ayush, Citra, Indulekha etc. and strong growth in emerging categories (premium laundry, hand wash, Liquid dish wash, Hair conditioner, Face‐wash and Green tea)

will enable steady margin expansion. We slightly tweak our numbers and increase EPS estimates by 2% for FY19 and 1% for FY20. We remain positive on the long term structural story; however, expect back ended returns post 53% returns in past

1 year. We retain Accumulate with a target price of Rs1555 at 43xSept20 EPS (Rs1387, 42xMarch 20EPS earlier).

Concall Takeaways:1) Trade Channels have normalised, however No GST led

transition from unorganised sector to organised sector is visible so far 2) E‐way bill implementation can led to some trade disruption in the short term 3)

Demand has seen improvement in both urban and rural India, however rural has grown faster in certain pockets. 4) Input costs pressures would remain on rising crude oil prices which has increased ~20% 1Q19 5) There will be continued

pressure from currency as it has already declined 6% in 1Q19. However, strong savings program led by control on the COGS would help ease pressure 6) HUL has launched Pure Derm Shampoo in the anti‐dandruff segment, however it is

retaining CLEAR brand as of now 7) Innovations and activations shall increase adspends in FY19 8) HUL has made provision of Rs640mn for variable payable for Indulekha acquisition as the performance has been far better than

expectations 9) The Categories of future and the naturals portfolio are growing at an 2x and 2.5x of the HUL average 10) HUL has seen higher growth in popular and the premium segments, economy segment has been tepid.

Key financials (Y/e March) 2017 2018 2019E 2020E

Revenues (Rs m) 344,870 352,180 386,876 431,531

Growth (%) 3.0 2.1 9.9 11.5

EBITDA (Rs m) 60,470 72,760 86,036 102,409

PAT (Rs m) 42,490 51,359 60,706 72,542

EPS (Rs) 19.7 23.8 28.0 33.4

Growth (%) 1.9 20.9 17.7 19.5

Net DPS (Rs) 16.5 18.0 22.0 24.0

Profitability & Valuation 2017 2018 2019E 2020E

EBITDA margin (%) 17.5 20.7 22.2 23.7

RoE (%) 66.6 75.7 83.1 89.5

RoCE (%) 62.1 69.6 76.0 82.0

EV / sales (x) 9.4 9.1 8.4 7.5

EV / EBITDA (x) 53.6 44.2 37.6 31.5

PE (x) 76.5 63.3 53.8 45.0

P / BV (x) 50.1 45.9 43.3 37.7

Net dividend yield (%) 1.1 1.2 1.5 1.6

Source: Company Data; PL Research

May 14, 2018 2

Hindustan Unilever

Exhibit 1: Q4FY18 Results (Rs m): Volumes up 11%, Adj. margins up 240bps, Adj. PAT up 19%

Y/e March Q4FY18 Q4FY17 YoY gr. (%) Q3FY18 FY18 FY17 YoY gr. (%)

Net Sales 90,970 82,130 10.8 85,900 3,45,250 3,18,899 8.3

Gross Profit 47,830 41,910 14.1 46,850 1,82,930 1,62,057 12.9

% of NS 52.6 51.0 54.5 53.0 50.8

Advertising & Prom Exp. 10,700 8,530 25.4 11,070 41,050 34,693 18.3

% of NS 11.8 10.4 12.9 11.9 10.9

Total Expenses 70,490 65,620 7.4 69,100 2,72,490 2,58,429 5.4

EBITDA 20,480 16,510 24.0 16,800 72,760 60,470 20.3

Margins (%) 22.5 20.1 2.4 19.6 21.1 19.0

Depreciation 1,280 1,080 18.5 1,210 4,780 3,960 20.7

EBIT 19,200 15,430 24.4 15,590 67,980 56,510 20.3

Interest 40 60 (33.3) 50 200 215 (6.8)

Other Income 1,000 830 20.5 1,520 5,690 5,259 8.2

PBT 20,160 16,200 24.4 17,060 73,470 61,554 19.4

Tax 6,070 4,360 39.2 5,080 22,110 18,419 20.0

Effective tax rate (%) 30.1 26.9 29.8 30.1 29.9

Adjusted PAT 14,090 11,840 19.0 11,980 51,360 43,134 19.1

Extraordinary (100) (190) 1,280 (1,010) (1,766)

Reported Profit 13,990 11,650 20.1 13,260 50,350 41,369 21.7

Source: Company Data, PL Research

Net Sales up 10.8% to Rs90.97bn, volumes up 11%, consumer sales up 16%

Gross margin up 150bps and EBIDTA margin up 240bps as staff costs and other

expenses declined by 30bps and 190bps, ad spend increased by 25.4% (140bps)

Adj. EBIDTA at Rs20.48b up 24% YoY

Adj Pat Rs14.1b up 19% as other income increased 20% and tax rate also

increased by 320bps.

Home Care had double digit volume growth with sales up 3.5% and EBIT up

30.8% on 350bps margin expansion

Personal care sales up 0.5%, EBIT up 8.3% on 180bps margin expansion and

strong growth in FAL, hair Care and Colour Cosmetics

Refreshments sales up 8.4%, EBIT up 16.9% on 130bps higher margins. Tea had

double digit growth, Ice cream had double digit growth led by geographical

expansion.

Packaged food sales were up 1.4% and EBIT was up 10.7% to Rs.310mn on

90bps expansion.

Rural demand is picking up and has grown at a rate faster than urban demand in

pockets. Lower prices post GST rate reduction has also boosted demand.

May 14, 2018 3

Hindustan Unilever

Exhibit 2: Exhibit 2: Adjusted consumer sales up 16%, reported sales impacted by GST led adjustments

Source: Company Data

Exhibit 3: HUVR’s innovation focus continues in core categories


May 14, 2018 4

Hindustan Unilever

Exhibit 4: HUVR is progressively building the naturals portfolio


Exhibit 5: HUVR’s strong savings program aids margins


May 14, 2018 5

Hindustan Unilever

Exhibit 6: Comparable FMCG sales up 16%

4.0 4.0 2.0

0.0

8.0 6.0

10.0

17.0 16.0

0.02.04.06.08.0

10.012.014.016.018.0

Q4FY16

Q1FY17

Q2FY17

Q3FY17

Q4FY17

Q1FY18

Q2FY18

Q3FY18

Q4FY18

(%)


Exhibit 7: Volumes up 11% on a low base

4.0 4.0

(1.0)

(4.0)

4.0

0.0

4.0

11.0 11.0

(6.0)

(4.0)

(2.0)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Q4FY16

Q1FY17

Q2FY17

Q3FY17

Q4FY17

Q1FY18

Q2FY18

Q3FY18

Q4FY18

(%)


Exhibit 8: Ad spend up 140bps on increased brand building

11.2 10.8 10.9

11.5

10.4 10.6

12.3

12.9

11.8

9.0

9.5

10.0

10.5

11.0

11.5

12.0

12.5

13.0

13.5

Q4FY1

6

Q1FY1

7

Q2FY1

7

Q3FY1

7

Q4FY1

7

Q1FY1

8

Q2FY1

8

Q3FY1

8

Q4FY1

8

(%)


Exhibit 9: GM up 150bps; EBITDA margins up 240bps

51.2

51.0

52.6

19.1 20.1 22.5

12.0

14.0

16.0

18.0

20.0

22.0

24.0

42.044.046.048.050.052.054.056.0

Q4FY16

Q1FY17

Q2FY17

Q3FY17

Q4FY17

Q1FY18

Q2FY18

Q3FY18

Q4FY18

Gross Margins (%) EBITDA Margins (%) (RHS)


Exhibit 10: PFAD prices down 15.3% YoY and 2.2% QoQ

‐18.9‐21.9‐27.8‐28.9

‐4.4

6.7

28.7

69.7

30.3

3.1 2.7

‐6.9‐15.3

‐40.0

‐20.0

0.0

20.0

40.0

60.0

80.0

Mar‐15

Jun‐15

Sep

‐15

Dec‐15

Mar‐16

Jun‐16

Sep

‐16

Dec‐16

Mar‐17

Jun‐17

Sep

‐17

Dec‐17

Mar‐18

(%)

YoY QoQ


Exhibit 11: LAB prices are up 3.9% QoQ and up 7% YoY

125.1

103.189.1

104

106

60

70

80

90

100

110

120

130

140

Dec‐12

Mar‐13

Jun‐13

Sep

‐13

Dec‐13

Mar‐14

Jun‐14

Sep

‐14

Dec‐14

Mar‐15

Jun‐15

Sep

‐15

Dec‐15

Mar‐16

Jun‐16

Sep

‐16

Dec‐16

Mar‐17

Jun‐17

Sep

‐17

Dec‐17

Mar‐18

(Rs/Kg)

Source :PL Research

May 14, 2018 6

Hindustan Unilever

Exhibit 12: Sales not comparable due to GST, Home care, Personal care and Refreshments see margin expansion

Quarterly Segmental 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 1QFY18 2QFY18 3QFY18 4QFY18

Net Sales (Rs m) 83,210 87,886 84,700 83,073 88,750 92,130 83,030 85,900 90,970

Home Care 27,980 28,760 27,770 26,891 30,040 30,470 27,390 27,410 31,020

Personal Care 37,700 42,216 40,280 39,802 40,750 43,680 39,100 40,900 40,960

Foods 2,880 2,722 2,778 2,785 2,950 2,840 2,820 3,000 2,990

Refreshments 11,760 12,149 11,692 11,641 13,000 13,460 12,220 12,480 14,090

Others 2,890 2,038 2,181 1,954 2,010 1,680 1,500 2,110 1,910

Sales Growth % 4.4 1.6 (0.8) 6.7 4.8 (2.0) 3.4 2.5

Home Care 8.0 3.2 1.0 7.4 5.9 (1.4) 1.9 3.3

Personal Care 2.7 (0.3) (2.7) 8.1 3.5 (2.9) 2.8 0.5

Foods 5.0 2.4 0.5 2.4 4.3 1.5 7.7 1.4

Refreshments 5.6 8.4 8.1 10.5 10.8 4.5 7.2 8.4

Others (14.3) (15.2) (27.3) (30.4) (17.6) (31.2) 8.0 (5.0)

EBIT (Rs m) 14,514 15,768 13,981 13,359 16,160 18,170 15,560 15,300 18,640

Home Care 3,023 3,559 2,800 2,342 3,890 4,480 3,830 3,540 5,090

Personal Care 9,027 10,214 9,226 9,208 9,840 10,790 9,480 10,070 10,660

Foods 381 170 137 261 280 410 170 110 310

Refreshments 1,943 1,921 1,726 1,713 2,190 2,550 2,140 1,690 2,560

Others 140 ‐95 91 ‐166 ‐40 ‐60 ‐60 ‐110 20

EBIT Growth % 4.7 9.0 (5.5) 11.3 15.2 11.3 14.5 15.3

Home Care 22.7 24.7 (0.6) 28.7 25.9 36.8 51.1 30.8

Personal Care 0.3 3.6 (7.1) 9.0 5.6 2.8 9.4 8.3

Foods (20.7) (16.2) (25.1) (26.5) 141.6 24.0 (57.9) 10.7

Refreshments 7.5 17.5 7.4 12.7 32.8 24.0 (1.3) 16.9

Others 340.5 112.1 159.0 (128.6) (36.6) (165.6) (33.5) (150.0)

EBIT Margin %

Home Care 10.8 12.4 10.1 8.7 12.9 14.7 14.0 12.9 16.4

Personal Care 23.9 24.2 22.9 23.1 24.1 24.7 24.2 24.6 26.0

Foods 13.2 6.2 4.9 9.4 9.5 14.4 6.0 3.7 10.4

Refreshments 16.5 15.8 14.8 14.7 16.8 18.9 17.5 13.5 18.2


May 14, 2018 7

Hindustan Unilever

Income Statement (Rs m)

Y/e March 2017 2018 2019E 2020E

Net Revenue 344,870 352,180 386,876 431,531

Raw Material Expenses 182,820 169,250 181,167 200,453

Gross Profit 162,050 182,930 205,709 231,078

Employee Cost 16,200 17,450 19,893 22,027

Other Expenses 85,380 92,720 99,780 106,642

EBITDA 60,470 72,760 86,036 102,409

Depr. & Amortization 3,960 4,781 5,095 5,440

Net Interest 220 200 220 220

Other Income 5,260 5,690 6,002 6,882

Profit before Tax 61,550 73,469 86,722 103,631

Total Tax 19,060 22,110 26,017 31,089

Profit after Tax 42,490 51,359 60,706 72,542

Ex‐Od items / Min. Int. 4,820 2,023 1,000 1,000

Adj. PAT 42,490 51,359 60,706 72,542

Avg. Shares O/S (m) 2,160.0 2,160.0 2,170.0 2,170.0

EPS (Rs.) 19.7 23.8 28.0 33.4

Cash Flow Abstract (Rs m)

Y/e March 2017 2018 2019E 2020E

C/F from Operations 54,340 65,260 61,233 82,929

C/F from Investing (13,460) (14,440) (4,231) (20,733)

C/F from Financing (42,630) (45,739) (56,166) (61,271)

Inc. / Dec. in Cash (1,750) 5,081 836 924

Opening Cash 2,400 650 5,730 6,566

Closing Cash 650 5,730 6,566 7,490

FCFF 36,680 57,230 55,517 77,252

FCFE 36,680 57,230 55,517 77,252

Key Financial Metrics

Y/e March 2017 2018 2019E 2020E

Growth

Revenue (%) 3.0 2.1 9.9 11.5

EBITDA (%) 5.2 20.3 18.2 19.0

PAT (%) 1.9 20.9 18.2 19.5

EPS (%) 1.9 20.9 17.7 19.5

Profitability

EBITDA Margin (%) 17.5 20.7 22.2 23.7

PAT Margin (%) 12.3 14.6 15.7 16.8

RoCE (%) 62.1 69.6 76.0 82.0

RoE (%) 66.6 75.7 83.1 89.5

Balance Sheet

Net Debt : Equity (0.2) (0.5) (0.4) (0.5)

Net Wrkng Cap. (days) (63) (88) (83) (83)

Valuation

PER (x) 76.5 63.3 53.8 45.0

P / B (x) 50.1 45.9 43.3 37.7

EV / EBITDA (x) 53.6 44.2 37.6 31.5

EV / Sales (x) 9.4 9.1 8.4 7.5

Earnings Quality

Eff. Tax Rate 31.0 30.1 30.0 30.0

Other Inc / PBT 8.5 7.7 6.9 6.6

Eff. Depr. Rate (%) 5.8 6.5 6.5 6.5

FCFE / PAT 86.3 111.4 91.5 106.5

Source: Company Data, PL Research.

Balance Sheet Abstract (Rs m)

Y/e March 2017 2018 2019E 2020E

Shareholder's Funds 64,900 70,751 75,418 86,734

Total Debt — — — —

Other Liabilities 5,740 6,660 7,248 7,880

Total Liabilities 70,640 77,411 82,666 94,613

Net Fixed Assets 42,270 45,720 43,675 43,384

Goodwill — — — —

Investments 42,860 31,110 33,210 43,510

Net Current Assets (14,490) 580 5,781 7,719

Cash & Equivalents 11,640 33,730 33,647 39,855

Other Current Assets 50,740 60,930 64,573 70,861

Current Liabilities 76,870 94,080 92,439 102,997

Other Assets — — — —

Total Assets 70,640 77,410 82,665 94,613

Quarterly Financials (Rs m)

Y/e March Q1FY18 Q2FY18 Q3FY18 Q4FY18

Net Revenue 85,290 83,090 85,900 90,970

EBITDA 18,660 16,820 16,800 20,480

% of revenue 21.9 20.2 19.6 22.5

Depr. & Amortization 1,140 1,150 1,210 1,280

Net Interest 60 60 50 40

Other Income 1,130 2,040 1,520 1,000

Profit before Tax 18,590 17,650 17,060 20,160

Total Tax 5,670 5,290 5,080 6,070

Profit after Tax 12,920 12,360 11,970 13,990

Adj. PAT 12,920 12,360 11,980 14,090

Key Operating Metrics

Y/e March 2017 2018 2019E 2020E

Volume Growth % (1.5) 4.0 7.3 7.1

Source: Company Data, PL Research.

May 14, 2018 8

Hindustan Unilever

Prabhudas Lilladher Pvt. Ltd.

3rd Floor, Sadhana House, 570, P. B. Marg, Worli, Mumbai‐400 018, India

Tel: (91 22) 6632 2222 Fax: (91 22) 6632 2209

Rating Distribution of Research Coverage PL’s Recommendation Nomenclature

43.4% 44.2%

12.4%

0.0%0%

10%

20%

30%

40%

50%

BUY Accumulate Reduce Sell

% of Total Coverage

BUY : Over 15% Outperformance to Sensex over 12‐months

Accumulate : Outperformance to Sensex over 12‐months

Reduce : Underperformance to Sensex over 12‐months

Sell : Over 15% underperformance to Sensex over 12‐months

Trading Buy : Over 10% absolute upside in 1‐month

Trading Sell : Over 10% absolute decline in 1‐month

Not Rated (NR) : No specific call on the stock

Under Review (UR) : Rating likely to change shortly

DISCLAIMER/DISCLOSURES

ANALYST CERTIFICATION

We/I, Mr. Amnish Aggarwal (MBA, CFA), Ms. Nishita Doshi (CA, CFA Level 1, B.Com), Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report.

Terms & conditions and other disclosures:

Prabhudas Lilladher Pvt. Ltd, Mumbai, India (hereinafter referred to as “PL”) is engaged in the business of Stock Broking, Portfolio Manager, Depository Participant and distribution for third party financial products. PL is a subsidiary of Prabhudas Lilladher Advisory Services Pvt Ltd. which has its various subsidiaries engaged in business of commodity broking, investment banking, financial services (margin funding) and distribution of third party financial/other products, details in respect of which are available at www.plindia.com

This document has been prepared by the Research Division of PL and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of PL. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security.

The information contained in this report has been obtained from sources that are considered to be reliable. However, PL has not independently verified the accuracy or completeness of the same. Neither PL nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein.

Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient's particular circumstances and, in case of doubt, advice should be sought from an independent expert/advisor.

Either PL or its affiliates or its directors or its employees or its representatives or its clients or their relatives may have position(s), make market, act as principal or engage in transactions of securities of companies referred to in this report and they may have used the research material prior to publication.

PL may from time to time solicit or perform investment banking or other services for any company mentioned in this document.

PL is in the process of applying for certificate of registration as Research Analyst under Securities and Exchange Board of India (Research Analysts) Regulations, 2014

PL submits that no material disciplinary action has been taken on us by any Regulatory Authority impacting Equity Research Analysis activities.

PL or its research analysts or its associates or his relatives do not have any financial interest in the subject company.

PL or its research analysts or its associates or his relatives do not have actual/beneficial ownership of one per cent or more securities of the subject company at the end of the month immediately preceding the date of publication of the research report.

PL or its research analysts or its associates or his relatives do not have any material conflict of interest at the time of publication of the research report.

PL or its associates might have received compensation from the subject company in the past twelve months.

PL or its associates might have managed or co‐managed public offering of securities for the subject company in the past twelve months or mandated by the subject company for any other assignment in the past twelve months.

PL or its associates might have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months.

PL or its associates might have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months

PL or its associates might have received any compensation or other benefits from the subject company or third party in connection with the research report.

PL encourages independence in research report preparation and strives to minimize conflict in preparation of research report. PL or its analysts did not receive any compensation or other benefits from the subject Company or third party in connection with the preparation of the research report. PL or its Research Analysts do not have any material conflict of interest at the time of publication of this report.

It is confirmed that Mr. Amnish Aggarwal (MBA, CFA), Ms. Nishita Doshi (CA, CFA Level 1, B.Com), Research Analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months

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

The Research analysts for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report.

The research analysts for this report has not served as an officer, director or employee of the subject company PL or its research analysts have not engaged in market making activity for the subject company

Our sales people, traders, and other professionals or affiliates 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. In reviewing these materials, you should be aware that any or all o the foregoing, among other things, may give rise to real or potential conflicts of interest.

PL and its associates, their directors and employees may (a) from time to time, have a long or short position in, and buy or sell the securities of the subject company or (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 subject company or act as an advisor or lender/borrower to the subject company or may have any other potential conflict of interests with respect to any recommendation and other related information and opinions.

DISCLAIMER/DISCLOSURES (FOR US CLIENTS)

ANALYST CERTIFICATION

The research analysts, with respect to each issuer and its securities covered by them in this research report, certify that: All of the views expressed in this research report accurately reflect his or her or their personal views about all of the issuers and their securities; and No part of his or her or their compensation was, is or will be directly related to the specific recommendation or views expressed in this research report

Terms & conditions and other disclosures:

This research report is a product of Prabhudas Lilladher Pvt. Ltd., which is the employer of the research analyst(s) who has prepared the research report. The research analyst(s) preparing the research report is/are resident outside the United States (U.S.) and are not associated persons of any U.S. regulated broker‐dealer and therefore the analyst(s) is/are not subject to supervision by a U.S. broker‐dealer, and is/are not required to satisfy the regulatory licensing requirements of FINRA or required to otherwise comply with U.S. rules or regulations regarding, among other things, communications with a subject company, public appearances and trading securities held by a research analyst account.

This report is intended for distribution by Prabhudas Lilladher Pvt. Ltd. only to "Major Institutional Investors" as defined by Rule 15a‐6(b)(4) of the U.S. Securities and Exchange Act, 1934 (the Exchange Act) and interpretations thereof by U.S. Securities and Exchange Commission (SEC) in reliance on Rule 15a 6(a)(2). If the recipient of this report is not a Major Institutional Investor as specified above, then it should not act upon this report and return the same to the sender. Further, this report may not be copied, duplicated and/or transmitted onward to any U.S. person, which is not the Major Institutional Investor.

In reliance on the exemption from registration provided by Rule 15a‐6 of the Exchange Act and interpretations thereof by the SEC in order to conduct certain business with Major Institutional Investors, Prabhudas Lilladher Pvt. Ltd. has entered into an agreement with a U.S. registered broker‐dealer, Marco Polo Securities Inc. ("Marco Polo").

Transactions in securities discussed in this research report should be effected through Marco Polo or another U.S. registered broker dealer.

hindustan unilever -...

Documents