India Consumer Tracking Institutional Ownership - Jun'13 Qtr :: JPMorgan

In this report, we take stock of ownership trends in our India Consumer Staples
and Retail coverage. Over the past 12 months, we continue to see a trend where
FIIs have increased their ownership across most of our coverage universe while
DIIs have reduced.
 FII ownership trends. Over the Jun’13 qtr, FII ownership continued to
increase across our coverage universe. Stocks which saw a prominent increase
in FIIs ownership include Jubilant Foodworks (+240bps q/q), Titan Industries
(+100bps q/q), Nestle India (+60bps q/q) and GSK Consumer (+60bps q/q).
However, FIIs reduced ownership in Future Retail (-100bps q/q) and Colgate (-
30bps q/q). Over the past 12 months, stocks which saw a prominent increase in
FII ownership include Jubilant Foodworks (+590bps y/y), Titan Industries
(+400bps y/y), Dabur (+270bps y/y), Future Retail (+250bps y/y), ITC
(+190bps y/y) and Nestle India (+160bpsy/y). FII stake in % terms reduced in
United Spirits q/q as Diageo acquired 10% stake via preferential allotment
during the qtr.
 DII ownership trends. DIIs continued to reduce their ownership in consumer
stocks with prominent decline seen in Future Retail (-230bps q/q) and Nestle
India (-50bps q/q). Insurance companies’ ownership increased in ITC, Dabur
and marginally in Titan while the rest of the stocks saw ownership being
reduced or maintained at the same level. Except for GCPL and Jubilant
Foodworks, which saw a marginal increase, DII ownership has reduced for
stocks in our coverage universe over the past 12 months.
 FII:DII Ratio increases for most of consumer stocks. The FII/DII ratio has
gone up for most of our coverage universe over the past 12 months except for
United Spirits, GCPL and Jubilant Foodworks.
 Promoter Shareholding Changes: Jubilant Foodworks witnessed -270bps q/q
decline in promoter holding. Over the past 12 months promoter shareholding has
declined ~500bps in the company. Promoter shareholding decreased marginally
for GCPL (-20bps q/q) while it increased for Future Retail (+40bps q/q). HUL
saw parent (Unilever) stake rising from 52.5% to 67.3% post recently concluded
open offer in early July’13. Diageo now owns controlling stake of 25% in
United Spirits.
 Retail ownership trends: Non-institutional ownership increased significantly
for Future Retail (+290bps q/q), while for Titan it decreased (-100bps q/q).

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