Pidilite Industries

Company Analysis
Regards

Kashiv Chawla
- CFA Level 2 Candidate
- Passed CFP
- NISM Certified Derivates Adviser
- NISM Certified Mutual Fund Adviser
 Drivers

Company
Currency
Domestic Country
10 Year G-Sec
Market Risk Premium India
Company Beta 2018-2019 (Balance Sheet)
Pidilite Today Share Price
Expected Inflation
Expected Growth
Corporate Rate Tax
Forecasted Value

Notes
Sr. No. Head
1 Capital Work In Progress
2 Provisions
3 Investments
4 Non Current Loans
5 Current Loans
6 Non Current Other Financial Assets
7 Current Other Financial Assets
8 Other Non Current Assets
* Days Receivables=
*** Days Payable=
** Days Inventory=
Expexted Growth
Depriciation
Revenue Assumption
Other Income Assumption
Cost Of Goods Sold Assumptions
Operating Expenses Assumptions
Depriciation Assumptions
Taxes Assumption
Tax Rate in %
WACC =
Pidilite Industries
INR
India
6.75%
5.27%
0.87
1348
6%
10%
25.17
1786.30

Explainations
Properties Under Construction to expand production
Employee Benefits
Mutual Fund Investments done by company or increase in Own company Holding
Advances to Employees
Advances to Related Parties
Bank's FD
Short Term FD's, Dervatives Contracts
Prepaid Expenses, Capital Expenses
(Receivables/ Revenues)*365
(payables/ COGS)*365
(inventories/ COGS)*365
Based on Last 5 Year Average Revenue Growth
Straight Line Depriciation Method
Grow on Average historical Returns
Grow on Average historical Returns
Forecast as %age of Revenue
Forecast as %age of Revenue
Forecast as %age of Revenue
%age of EBT
Corporate Tax Rate has reduced to 25.17%
(Cost of equity x average shareholder funds) + (cost of debt x average debt).
DATA SOURCE SHEET
Sr. no. Statement
1 P&L Account Statement
2 Balance Sheet
SHEET
Source Link
http://www.capitalmarket.com/Company-Information/Financials/Profit-and-Loss/Pidilite-Industries-Ltd/3219
Annual Report of Pidilite
Input -->
Profit & Loss
Rs. in Crores FY14 FY15 FY16 FY17 FY18

Net Sales 3878.2 4398.1 4731.0 4865.4 5354.4

Other Income 42.9 42.8 70.6 110.1 136.5
Stock Adjustments 42.3 6.8 (18.0) 7.9 8.5
Total Revenues (A) 3963.4 4447.6 4783.6 4983.4 5499.4
Raw Materials (2182.3) (1937.2) (2264.2) (2270.0) (2546.4)
Power & Fuel Cost (43.4) (50.7) (44.5) (49.4) (55.6)
Employee Cost (364.8) (414.3) (457.2) (507.5) (570.9)
Other Manufacturing Expenses (250.3) (799.3) (322.3) (50.7) (104.1)
COGS (B) (2840.8) (3201.4) (3088.2) (2877.6) (3277.0)
Gross Profit (A)--(B)=C 1122.6 1246.2 1695.5 2105.8 2222.4
Selling and Administration Expenses (308.1) (335.4) (361.3) (636.5) (672.3)
Miscellaneous Expenses (105.2) (125.0) (171.0) (228.6) (121.3)
EBITDA 709.3 785.8 1163.2 1240.6 1428.8
Depreciation (68.6) (107.7) (87.8) (90.2) (91.5)
EBIT 640.7 678.1 1075.3 1150.4 1337.3
Interest (9.7) (9.5) (5.8) (5.7) (6.1)
PBT 631.0 668.5 1069.5 1144.7 1331.3
Tax (159.9) (156.1) (298.8) (362.7) (356.9)
Deferred Tax (2.5) (10.6) (24.0) (8.3) (19.2)
PAT 468.6 501.9 746.7 773.8 955.2
Extraordinary Items (4.8) 2.3 1.6 65.1 0.5
Adjuated Net Profit 463.8 504.2 748.3 838.9 955.7
 VAR % VAR % VAR % VAR % VAR %
FY19
FY14-15 FY15-16 FY16-17 FY17-18 FY18-19
6094.7 13.40% 7.57% 2.84% 10.05% 13.83%
191.5 -0.40% 65.12% 55.90% 23.97% 40.31%
73.8 -83.96% -366.08% -143.79% 7.34% 770.40%
6360.0 12.22% 7.55% 4.18% 10.35% 15.65%
(3138.2) -11.23% 16.88% 0.26% 12.17% 23.24%
(61.7) 16.67% -12.17% 10.94% 12.60% 11.03%
(663.5) 13.58% 10.35% 11.00% 12.50% 16.24%
(113.5) 219.30% -59.67% -84.26% 105.28% 9.00%
(3977.0) 12.69% -3.54% -6.82% 13.88% 21.36%
2383.0 11.01% 36.05% 24.20% 5.54% 7.23%
(746.6) 8.87% 7.71% 76.18% 5.61% 11.06%
(153.0) 18.82% 36.81% 33.69% -46.95% 26.11%
1483.4 10.78% 48.03% 6.66% 15.17% 3.82%
(99.8) 56.96% -18.47% 2.76% 1.37% 9.13%
1383.6 5.83% 58.59% 6.98% 16.25% 3.46%
(7.1) -1.86% -38.59% -2.74% 6.69% 17.82%
1376.5 5.95% 59.98% 7.03% 16.30% 3.39%
(385.6) -2.39% 91.40% 21.38% -1.59% 8.03%
(11.5) 330.08% 126.94% -65.56% 132.16% -40.36%
979.4 7.10% 48.79% 3.63% 23.44% 2.54%
(22.2) -148.33% -31.17% 3996.86% -99.20% -4373.08%
957.2 8.70% 48.42% 12.11% 13.92% 0.16%
Balance Sheet
Rs. in Crores FY 15 FY 16 FY 17 FY 18 FY 19
Equity and Liabilities
Equity 1
a Equity Share Capital 51.27 51.27 51.27 50.78 50.8 a
b Other Equity 2253.31 2599.32 3348.08 3513.15 4135.92 b
Total Equity 2304.58 2650.59 3399.35 3563.93 4186.72 c
d
Liabilities e
1 Non Current Liabilities i
a Financial Liabilities ii
i Other Financial Liabilities 2.85 2.25 1.68 43.01 46.01 iii
b Provisions 18.68 21.86 24.97 29.57 34.55 f
c Deferred tax liabilities 51.35 75.36 83.63 102.9 112.97 g
Total Non-current liabilities 72.88 99.47 110.28 175.48 193.53

2 Current Liabilities 2
a Financial Liabilities a
i Trade Payables 293.33 316.33 328.47 428.16 449.15 b
ii Other Financial Liabilities 284.59 310.82 365.66 394.36 440.85 i
iii Borrowings 5.78 1.12 0 0 0 ii
b Other Current Liabilities 54.05 66.36 63.08 49.46 57.42 1 iii
c Provisions 11.63 9.24 12.81 9.78 14.6 1 iv
d Current Tax Liabilities 13.08 13.08 15.93 6.78 7.74 1 v
Total Current Liabilities 662.46 716.95 785.95 888.54 969.76 vi
c
Total Liabilities 735.34 816.42 896.23 1064.02 1163.29 d

Total Equities and Liabilities 3039.92 3467.01 4295.58 4627.95 5350.01

Rs. in Crores FY 15 FY 16 FY 17 FY 18 FY 19
Asssets
Non-Current Assets
Property, Plant & Equipmet 526.03 643.04 668.66 656.6 667.6
Capital Work in Progress 218.28 151.68 126.57 164.1 229.1
Goodwill 86.1 86.1 86.1 86.1 86.1
Other Intangible Assets 192.11 187.41 184.8 197.3 196.9
Financial Assets
Investments 429.5 533.89 440.23 713.7 1,038.5
Loans 7.59 7.09 4.4 3.3 2.9
Other Financial Assets 13.69 10.98 12.28 11.7 18.5
Income Tax Assets 33.62 35.41 36.47 62.3 98.5
Other Non Current Assets 74.45 48.42 70.34 69.3 82.5
Total Non-current Assets 1,581.38 1,704.03 1,629.86 1,964.41 2,420.66

Current Assets
Inventories 534.72 494.2 556.25 630.94 734.3
Financial Assets
Investments 297.05 568.87 1353.18 1072.01 1151.39
Trade Receivables 506.01 550.71 607.65 689.59 774.98
Cash and Cash Equivalents 43.96 66.15 45.8 66.12 60.24
Bank Balance other than iii 5 6.1 4.67 11.64 56.94
Loans 14.94 15.53 18.48 13.22 15.38
Other Financial Assets 3.5 4.14 5 8.59 9.25
Current Tax Assets 23.66
Other Current Assets 53.36 57.28 74.69 147.77 126.87
Total Current Assets 1458.54 1762.98 2665.72 2663.54 2929.35

Total Assets 3,039.92 3,467.01 4,295.58 4,627.95 5,350.01

1

1
1
Assumption -->
P&L assumptions

Selected Case 2

Rs. in Crores FY14 FY15 FY16 FY17 FY18 FY19

Revenues 3,878 4,398 4,731 4,865 5,354 6,095

y-o-y growth % 13% 8% 3% 10% 14%
Case 1:
Case 2:
Case 3:

Other Income 42.9 42.8 70.6 110.1 136.5 191.5

y-o-y growth % 0% 65% 56% 24% 40%
Case 1:
Case 2:
Case 3:

Stock Adjustments 42.3 6.8 (18.0) 7.9 8.5 73.8

y-o-y growth % -84% -366% -144% 7% 770%
Case 1:
Case 2:
Case 3:

COGS (2,840.8) (3,201.4) (3,088.2) (2,877.6) (3,277.0) (3,977.0)

% of Revenues -73% -73% -65% -59% -61% -65%
Case 1:
Case 2:
Case 3:

Operating Expenses (413.3) (460.4) (532.3) (865.1) (793.5) (899.6)

% of Revenues -11% -10% -11% -18% -15% -15%
Case 1:
Case 2:
Case 3:

Depriciation (68.6) (107.7) (87.8) (90.2) (91.5) (99.8)

% of Revenues -1.8% -2.4% -1.9% -1.9% -1.7% -1.6%
Case 1:
Case 2:
Case 3:

Interest (9.7) (9.5) (5.8) (5.7) (6.1) (7.1)

y-o-y growth %
Case 1:
Case 2:
Case 3:

Taxes (162.4) (166.7) (322.8) (370.9) (376.1) (397.0)

% of EBT -26% -25% -30% -32% -28% -29%
Case 1:
Case 2:
Case 3:
Extraordinary Items (4.8) 2.3 1.6 65.1 0.5 (22.2)
% of Revenues -0.1% 0.1% 0.0% 1.3% 0.0% -0.4%
Case 1:
Case 2:
Case 3:
Scenario Analysis
Case 1: Optimistic Case
Case 2: Base Case
Case 3: Worst Case

FY20 FY21 FY22 FY23 FY24

Forecast Forecast Forecast Forecast Forecast
6,704 7,375 8,112 8,923 9,816
10% 10% 10% 10% 10%
13% 13% 13% 13% 13%
10% 10% 10% 10% 10%
7% 7% 7% 7% 7%

262 359 492 675 924

37% 37% 37% 37% 37%
37% 37% 37% 37% 37%
37% 37% 37% 37% 37%
37% 37% 37% 37% 37%

74 74 74 74 74
0% 0% 0% 0% 0%
0% 0% 0% 0% 0%
0% 0% 0% 0% 0%
0% 0% 0% 0% 0%

(4,492) (4,941) (5,435) (5,979) (6,576)

-67% -67% -67% -67% -67%
-60% -60% -60% -60% -60%
-67% -67% -67% -67% -67%
-75% -75% -75% -75% -75%

(872) (959) (1,055) (1,160) (1,276)

-13% -13% -13% -13% -13%
-10% -10% -10% -10% -10%
-13% -13% -13% -13% -13%
-16% -16% -16% -16% -16%

(134) (147) (162) (178) (196)

-2.0% -2.0% -2.0% -2.0% -2.0%
-1.5% -1.5% -1.5% -1.5% -1.5%
-2.0% -2.0% -2.0% -2.0% -2.0%
-2.5% -2.5% -2.5% -2.5% -2.5%

(7) (7) (7) (7) (7)

0% 0% 0% 0% 0%
0% 0% 0% 0% 0%
0% 0% 0% 0% 0%
0% 0% 0% 0% 0%

(387) (441) (508) (591) (694)

-25% -25% -25% -25% -25%
-22% -22% -22% -22% -22%
-25% -25% -25% -25% -25%
-30% -30% -30% -30% -30%
- - - - -
0% 0% 0% 0% 0%
0% 0% 0% 0% 0%
0% 0% 0% 0% 0%
0% 0% 0% 0% 0%
Balance Sheet Assumptions

Rs. in Crores FY 15 FY 16 FY 17 FY 18 FY 19
Trade Receivables 506.01 550.71 607.65 689.59 774.98
* Days Receivables 41.99 42.49 45.59 47.01 46.41

Inventories 534.72 494.20 556.25 630.94 734.30

** Days Inventory 60.96 58.41 70.56 70.28 67.39

Trade Payables 293.33 316.33 328.47 428.16 449.15

*** Days Payables 33.44 37.39 41.66 47.69 41.22

Property, Plant & Equipmet 526.03 643.04 668.66 656.62 667.62

as a % of Revenues 12% 14% 14% 12% 11%

Capital Work in Progress 218.28 151.68 126.57 164.13 229.08

as a % of Revenues 5% 3% 3% 3% 4%

Other assets 53.36 57.28 74.69 171.43 126.87

as a % of Revenues 1% 1% 2% 3% 2%

Other Liabilities 78.76 88.68 91.82 66.02 79.76

as a % of Revenues 2% 2% 2% 1% 1%

Provisions 18.68 21.86 24.97 29.57 34.55

y-o-y growth % 17% 14% 18% 17%
 FY20 FY21 FY22 FY23 FY24
Forecast Forecast Forecast Forecast Forecast
852.48 937.73 1,031.50 1,134.65 1,248.11
46.41 46.41 46.41 46.41 46.41

829.34 912.28 1,003.50 1,103.85 1,214.24

67.39 67.39 67.39 67.39 67.39

507.28 558.01 613.81 675.20 742.72

41.22 41.22 41.22 41.22 41.22

838.19044 922.00948 1014.2104 1115.6315 1227.1946

13% 13% 13% 13% 13%

268.16504 294.98154 324.4797 356.92767 392.62044

4% 4% 4% 4% 4%

123.93 136.32 149.95 164.94 181.44

2% 2% 2% 2% 2%

108.53 119.38 131.32 144.45 158.90

2% 2% 2% 2% 2%

40.30 47.00 54.81 63.92 74.55

17% 17% 17% 17% 17%
Financing -->
WACC

Risk-free rate 6.73%

Market risk premium 5.27%
Beta (as of 27 Sep 2018) 0.87

Cost of equity 11.3%

Pidilite WACC Calculation

FY20
($ in million) FY 15 FY 16 FY 17 FY 18 FY 19 Forecast
Equity 2305 2651 3399 3564 4187 5336
Debt 0 0 0 0 0 0

Equity in %age 100% 100% 100% 100% 100% 100%

Debt in %age 0% 0% 0% 0% 0% 0%

WACC 12.2% 12.8% 9.2% 11.4% 13.1% 11.3%

WACC = (Cost of equity x average shareholder funds) + (cost of debt x average debt).
Calculation
FY21 FY22 FY23 FY24
Forecast Forecast Forecast Forecast
6648 8159 9916 11979
0 0 0 0

100% 100% 100% 100%

0% 0% 0% 0%

11.3% 11.3% 11.3% 11.3%

Output -->
P&L
FY14 FY15 FY16 FY17 FY18 FY19
Rs. in Crores
Revenues 3,878.24 4,398.08 4,731.03 4,865.37 5,354.40 6,094.66
Other Income 42.94 42.77 70.62 110.10 136.49 191.51
Stock Adjustments 42.26 6.78 (18.04) 7.90 8.48 73.81
Total Revenues 3,963.44 4,447.63 4,783.61 4,983.37 5,499.37 6,359.98

COGS (2,840.84) (3,201.43) (3,088.16) (2,877.60) (3,277.01) (3,977.01)

Gross Margin 1,122.60 1,246.20 1,695.45 2,105.77 2,222.36 2,382.97

Operating Expenses (413.29) (460.43) (532.29) (865.13) (793.54) (899.55)

EBITDA 709.31 785.77 1,163.16 1,240.64 1,428.82 1,483.42

Depriciation (68.63) (107.72) (87.82) (90.24) (91.48) (99.83)

EBIT 640.68 678.05 1,075.34 1,150.40 1,337.34 1,383.59

Interest -9.69 -9.51 -5.84 -5.68 -6.06 -7.14

PBT 630.99 668.54 1,069.50 1,144.72 1,331.28 1,376.45

Tax %age -26% -25% -30% -32% -28% -29%

Taxes (162.39) (166.68) (322.78) (370.93) (376.09) (397.01)
PAT 468.60 501.86 746.72 773.79 955.19 979.44

Extraordinary Items -4.78 2.31 1.59 65.14 0.52 -22.22

Adjusted Net Profit 463.82 504.17 748.31 838.93 955.71 957.22
 FY20 FY21 FY22 FY23 FY24 Adjusted Net Profit
Forecast Forecast Forecast Forecast Forecast 12,000.00
Revenues
6,704.13 7,374.54 8,111.99 8,923.19 9,815.51
10,000.00
262.37 359.45 492.44 674.64 924.26
8,000.00
73.81 73.81 73.81 73.81 73.81
7,040.30 7,807.79 8,678.24 9,671.64 10,813.58 6,000.00

4,000.00
(4,491.76) (4,940.94) (5,435.03) (5,978.54) (6,576.39) 2,000.00
2,548.54 2,866.85 3,243.21 3,693.11 4,237.19
-

(871.54) (958.69) (1,054.56) (1,160.01) (1,276.02)

1,677.00 1,908.16 2,188.65 2,533.09 2,961.17

(134.08) (147.49) (162.24) (178.46) (196.31)

1,542.92 1,760.67 2,026.41 2,354.63 2,764.86

(7.14) (7.14) (7.14) (7.14) (7.14)

1,535.78 1,753.53 2,019.27 2,347.49 2,757.72

-25% -25% -25% -25% -25%

(386.56) (441.36) (508.25) (590.86) (694.12)
1,149.23 1,312.17 1,511.02 1,756.62 2,063.60

- - - - -
1,149.23 1,312.17 1,511.02 1,756.62 2,063.60
djusted Net Profit
evenues
 Balance Sheet

Rs. in Crores FY 15 FY 16 FY 17 FY 18 FY 19
a Property, Plant & Equipmet 526.0 643.0 668.7 656.6 667.6
b Capital Work in Progress 218.3 151.7 126.6 164.1 229.1
c Goodwill 86.1 86.1 86.1 86.1 86.1
d Other Intangible Assets 192.1 187.4 184.8 197.3 196.9
e Financial Assets
i Investments 429.5 533.9 440.2 713.7 1,038.5
ii Loans 7.6 7.1 4.4 3.3 2.9
iii Other Financial Assets 13.7 11.0 12.3 11.7 18.5
f Income Tax Assets 33.6 35.4 36.5 62.3 98.5
g Other Non Current Assets 74.5 48.4 70.3 69.3 82.5
Total Non-current Assets 1,581.4 1,704.0 1,629.9 1,964.4 2,420.7

a Inventories 534.7 494.2 556.3 630.9 734.3

b Financial Assets
i Investments 297.1 568.9 1,353.2 1,072.0 1,151.4
ii Trade Receivables 506.0 550.7 607.7 689.6 775.0
iii Cash and Cash Equivalents 44.0 66.2 45.8 66.1 60.2
iv Bank Balance other than iii 5.0 6.1 4.7 11.6 56.9
v Loans 14.9 15.5 18.5 13.2 15.4
vi Other Financial Assets 3.5 4.1 5.0 8.6 9.3
c Other assets 53.4 57.3 74.7 171.4 126.9
Total Current Assets 1,458.5 1,763.0 2,665.7 2,663.5 2,929.4

Total Assets 3,039.9 3,467.0 4,295.6 4,628.0 5,350.0

Equity Share Capital 51.27 51.27 51.27 50.78 50.8

Other Equity 2253.31 2599.32 3348.08 3513.15 4135.92
Total Equity 2304.58 2650.59 3399.35 3563.93 4186.72

a Other Financial Liabilities 2.85 2.25 1.68 43.01 46.01

b Provisions 18.68 21.86 24.97 29.57 34.55
c Deferred tax liabilities 51.35 75.36 83.63 102.9 112.97
Total Non-current liabilities 72.88 99.47 110.28 175.48 193.53

Current Liabilities
a Financial Liabilities
i Trade Payables 293.33 316.33 328.47 428.16 449.15
ii Other Financial Liabilities 284.59 310.82 365.66 394.36 440.85
iii Borrowings 5.78 1.12 0 0 0
b Other Liabilities 78.76 88.68 91.82 66.02 79.76
Total Current Liabilities 662.46 716.95 785.95 888.54 969.76

Total Equities & Liabilities 3,039.92 3,467.01 4,295.58 4,627.95 5,350.01

Check - - - - -
 FY20 FY21 FY22 FY23 FY24
Forecast Forecast Forecast Forecast Forecast
Note
838.2 922.0 1,014.2 1,115.6 1,227.2
268.2 295.0 324.5 356.9 392.6
86.1 86.1 86.1 86.1 86.1 FLAT
196.9 196.9 196.9 196.9 196.9 FLAT

1,038.5 1,038.5 1,038.5 1,038.5 1,038.5 FLAT

2.9 2.9 2.9 2.9 2.9 FLAT
18.5 18.5 18.5 18.5 18.5 FLAT
98.5 98.5 98.5 98.5 98.5 FLAT
82.5 82.5 82.5 82.5 82.5 FLAT
2,630.3 2,741.0 2,862.7 2,996.5 3,143.8

829.3 912.3 1,003.5 1,103.9 1,214.2

1,151.4 1,151.4 1,151.4 1,151.4 1,151.4 FLAT

852.5 937.7 1,031.5 1,134.6 1,248.1
922.9 2,012.1 3,278.3 4,766.2 6,534.8
56.9 56.9 56.9 56.9 56.9 FLAT
15.4 15.4 15.4 15.4 15.4 FLAT
9.3 9.3 9.3 9.3 9.3 FLAT
123.9 136.3 149.9 164.9 181.4
3,961.6 5,231.4 6,696.3 8,402.6 10,411.6

6,591.9 7,972.3 9,558.9 11,399.2 13,555.4

50.80 50.80 50.80 50.80 50.80 Flat

5,285.15 6,597.31 8,108.33 9,864.96 11,928.56 Last Year Equity+ Net Income
5,335.95 6,648.11 8,159.13 9,915.76 11,979.36

46.01 46.01 46.01 46.01 46.01 Flat

40.30 47.00 54.81 63.92 74.55
112.97 112.97 112.97 112.97 112.97 Flat
199.28 205.98 213.79 222.90 233.53

507.28 558.01 613.81 675.20 742.72

440.85 440.85 440.85 440.85 440.85 Flat
0 0 0 0 0
 108.53 119.38 131.32 144.45 158.90
1,056.66 1,118.24 1,185.98 1,260.50 1,342.46

6,591.88 7,972.33 9,558.91 11,399.16 13,555.36

- - - - -
Cash Flows
FCFF = [EBIT × (1 − tax rate)] + Dep − FCInv − WCInv

Rs. in Crores FY 16 FY 17 FY 18
EBIT 1,075.34 1,150.40 1,337.34
Operating Taxes (324.54) (372.77) (377.80)
Operating Tax Rate -30.2% -32.4% -28.3%
NOPAT 750.80 777.63 959.54

Add back Deprication 87.82 90.24 91.48

Gross Cash Flow 838.62 867.87 1,051.02

Inventory 40.52 -62.05 -74.69

Investments -271.82 -784.31 281.17
Trade receivables -44.7 -56.94 -81.94
Bank Balances -1.1 1.43 -6.97
Loans -0.59 -2.95 5.26
Other Financial Assets -0.64 -0.86 -3.59
Trade Payables 23.00 12.14 99.69
Other Financial Liabilities 26.23 54.84 28.70
Borrowings (4.66) (1.12) -
Investment in WCInv (233.76) (839.82) 247.63
Investments in other Assets/liabilities 6.00 (14.27) (122.54)

Capex (PP&E) (204.83) (115.86) (79.44)

Capex ( Work in Capital) 66.60 25.11 (37.56)
Other Assets (72.24) 74.68 (309.03)
Extra Ordinary items 1.59 65.14 0.52
UFCF 401.98 62.85 750.60

Interest Expenses (5.84) (5.68) (6.06)

Delta Taxes Vs Operating Taxes 1.76 1.84 1.71
Delta Financial Liabilities 26.59 10.81 65.20
Delta Equity (Inc. Dividends) (402.30) (90.17) (791.13)
Net Cash Flow 22.19 (20.35) 20.32

Opening Cash 43.96 66.15 45.80

Closing Cash 66.15 45.80 66.12

Check 66.15 45.80 66.12

- (0.00)

Operating Taxes EBIT * Tax rate

Taxes EBT * Tax rate
 FY20 FY21 FY22 FY23 FY24
Forecast Forecast Forecast Forecast Forecast
Note
FY 19
1,383.59 1,542.92 1,760.67 2,026.41 2,354.63 2,764.86
(399.07) (388.35) (443.16) (510.05) (592.66) (695.92)
-28.8% -25.2% -25.2% -25.2% -25.2% -25.2%
984.52 1,154.57 1,317.51 1,516.36 1,761.97 2,068.95

99.83 134.08 147.49 162.24 178.46 196.31

1,084.35 1,288.65 1,465.00 1,678.60 1,940.43 2,265.26 1)

-103.36 -95.042298 -82.934229826 -91.227652809 -100.35041809 -110.3854599

-79.38 - - - - -
-85.39 -77.498 -85.2478 -93.77258 -103.149838 -113.4648218
-45.3 - - - - -
-2.16 - - - - -
-0.66 - - - - -
20.99 58.13 50.73 55.80 61.38 67.52
46.49 - - - - -
- - - - - -
(248.77) (114.41) (117.45) (129.20) (142.12) (156.33) 2)
58.30 31.71 (1.54) (1.69) (1.86) (2.05) 3)

(110.83) (304.65) (231.31) (254.44) (279.88) (307.87) 4)

(64.95) (39.09) (26.82) (29.50) (32.45) (35.69) 5)
(380.30) - - - - - 6)
-22.22 - - - - - 7)
315.58 862.22 1,087.88 1,263.77 1,484.12 1,763.31 1)+2)+3)+4)+5)+6)+7)

(7.14) (7.14) (7.14) (7.14) (7.14) (7.14)

2.06 1.80 1.80 1.80 1.80 1.80
18.05 5.75 6.70 7.81 9.11 10.63
(334.43) - - - - -
(5.88) 862.62 1,089.24 1,266.24 1,487.89 1,768.60

66.12 60.24 922.86 2,012.10 3,278.34 4,766.23

60.24 922.86 2,012.10 3,278.34 4,766.23 6,534.83

60.24 922.86 2,012.10 3,278.34 4,766.23 6,534.83

0.00 - - - - -
1)+2)+3)+4)+5)+6)+7)
 DCF Valuation

WACC 11.3%
g 10%

Rs. in Crores FY 16 FY 17 FY 18 FY 19
UFCF 401.98 62.85 750.60 315.58

Discount Factor
Present Value of UFCF

DCF Valuation
Present Value of Cashflows 4,567.11 5%
Continuing Value after FY 24 147,512.47
Present Value of Continuing Value 86,310.22 95%
Enterprise Value 90,877.34 100%
Less Financial Liabilities (193.53)
Add Cash 60.24 Enterprise Value
Equity Value 90,744.05
No. of Shares Outstanding 50.80
Share Price 1,786.30 g

Cost of Equity
CAPM
 1 2 3 4 5
FY20 FY21 FY22 FY23 FY24
Forecast Forecast Forecast Forecast Forecast
862.22 1,087.88 1,263.77 1,484.12 1,763.31

0.90 0.81 0.73 0.65 0.59

774.58 877.96 916.24 966.62 1,031.72

on

Scenario Analysis
Enterprise Value WACC
90,877.34 11% 12% 13% 14%
9%
10%
11%
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