1 Company approves plan to acquire Patanjali Ayurveda’s HPC business for Rs 1,100 crore

2 Believe that the acquisition is a positive move and should add to the company’s growth levers

3 The acquisition is expected to improve the profitability of the overall business

#4 acquisition is at a very attractive valuation of 0.4x FY24 sales/ 2.2x FY24 EBITDA.

5 In our view, HPC business profitability is steady and stable compared to oil and food business

6 After the acquisition, FMCG revenue contribution will increase from 30 percent to 36 percent

7 Post-acquisition, profit contribution to rise to over 94 per cent on FY24 basis

8 Incorporating HPC acquisition, increase EPS by 4 per cent/17 per cent/24 per cent for FY25/FY26/FY27