A fine balance 4
The pros and cons 4
Gross margins expand… 5
…but quantum of expansion to reduce 5
Government spending positive… 5
…but monsoons are weak 6
Expenses being cut… 7
…but ad-spend is higher 7
Higher volume growth… 7
…but valuations factor that in 7
Change in estimates 8
Our forecasts 8
Top line 8
Gross margins 8
EBIT margin 9
Valuation 9
12-month forward PE band charts 12
Trend analysis 13
Top-line dynamics 13
Commodities – gradual uptrend 15
Gross profit growth and margin 16
Commodity cost trends 17
Operating expenses 19
Profits – back on track 20
Financials & valuation: Nestle India 26
Financials & valuation: Dabur India 27
Financials & valuation: Hindustan Unilever Ltd 28
Financials & valuation: ITC 29
Financials & valuation: Marico Industries 30
Financials & valuation: Colgate - Palmolive 31
Disclosure appendix 33
Disclaimer 36