Strategic Reset, Scale-driven Upside; Assuming Coverage at Buy

研报英文原文证据摘录

Strategic Reset, Scale-driven Upside; Assuming Coverage at Buy

ed

valuation

Edible Oils—CF generator (80%/65% of rev/profit): AWL is the market leader in edible oil Industry9%Essentials JVs2%

(~18% MS), operating in a fragmented category with continued formalisation tailwinds. LT,

AWL has exhibited vol-led growth (8% CAGR over F20-26) with industry-leading profitability Edible Oil

due to better risk mgmt. We expect mid to high teens ROCE to continue, backed by high asset Food & FMCG 50%

turns, low capex, and stable margins. Strong FCF to fund Foods invts without B/S stress. We 39%

expect 7%/8% rev/EBITDA CAGR over F26-29e. .

Source: Jefferies estimates

Industry essentials (11%/22% of rev/profit): Provides diversification into oleochemicals &

Exhibit 2 - AWL is at lowest valuation among

castor oil with stable profitability. Increasing focus on speciality, high-margin products to FMCG peers

support profitability improvement over LT. 80

Nestle

MaricoUmbrella brand & alternate channels: Fortune umbrella brand strategy enables portfolio 60 TCPL VBL

PE

Honasa 40 HUL Britannia

GCPLexpansion with faster consumer adoption across categories. Growing exposure to QC, MT, and FY28 ColgateDabur

HoReCa is structurally margin-accretive and enhances growth visibility (~25% of vol), where 20 AWL Agri Patanjali

Fortune has higher MS vs. general trade (GT). Additionally, GT will benefit by leveraging its - Emami

edible oil distribution, expanding rural reach. M&A remains a key lever—evident from Kohinoor 5 10 15EPS CAGR over20 FY26-28e25 30 35

(premium basmati) and GD Foods (high-margin, VAP)—to accelerate category diversification .Source: Jefferies estimates

& profitability.

BUY: Cut EPS est. by 15-17% due to RM volatility and reset of Foods business. AWL