HMN recently announced the acquisition of the Dermicool brand from Reckitt Benckiser India for INR4.32b. We estimate ~INR1.4b in FY23 sales for Dermicool, with an EBITDA of INR475m, translating in an acquisition cost of ~3x sales and ~9x EBITDA. COVID-led restrictions affected summer season sales in the last two years, impacting overall category growth. Hence, its CY21 sales of INR1.13b are not representative. We believe CY19 sales of INR1.33b are a better representation. The deal will be funded through internal accruals....