Less Less

Revenue EBITDA Operating Profit (EBIT) Net interest Taxation Net Profit

Less Less Less Less Add Less

Cash flow Summary Cash flow from operations Capex Dividends Change in net debt Change in WC FCFE

Less Less +/Less

Relative Valuation data EV/ Sales EV / EBITDA EV / Invested Capital PE P/ Book Value

Sales (Revenue) Cost of Goods Sold (COGS) Gross Margin Staff, Gen & Admn Exp (SG&A) EBITDA Depreciation EBIT Interest Other Income PBT Tax PAT Minority Interest Reported PAT

This is from the Annual Report of Century Textiles and Industries Limited for the year 2008-09 Rs. In Crores 2008-09 A CASH FLOW FROM OPERATING ACTIVITIES: Profit For The Year Before Taxation : Add / (Less) : Depreciation and Amortization (Surplus) / Loss on sale / discardment of Fixed Assets (Net) Interest and Finance charges (Net) Dividend on Investments Proportionate amounts written off against Miscellaneous Expenditure Prior Period Adjustments (Net) Operating Profit Before Working Capital Changes Adjustments for : Trade and other receivables Inventories Trade Payables Cash Generated From Operations Add / (Less) : Voluntary Retirement Compensation Direct Taxes Paid Net Cash Generated From Operating Activities 346.95 206.42 -54.09 97.2 -2.74 99.99 -0.71 693.02 -4.76 -57.69 107.55 738.12 -16 -48.32 673.8

B

CASH FLOW FROM INVESTING ACTIVITIES : Purchase of Fixed Assets (Includes Borrowing Costs Capitalized) Sale of Fixed Assets Interest Received Dividend on Investments Long term Investments Acquired Current Investments Acquired Current Investments Sold Net Cash Used in Investing Activities -892.33 72.37 6.59 2.74 -18.84 -798.67 798.67 -829.47

C

CASH FLOW FROM FINANCING ACTIVITIES : Working Capital and Short Term Borrowings Repayment of Other Borrowings Other Loans taken Interest and Finance Charges paid Dividend Paid Tax on Dividend Net Cash Generated From Financing Activities NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS -37.93 -368.64 748.08 -117.89 -41.78 -7.12 174.72 19.05

Cash and Cash equivalents - Opening balance Cash and Cash equivalents - Closing balance

46.64 65.69

CALCULATION OF FCFF FOR THE CURRENT YEAR FROM THE ABOVE Net cash generated from Operating activities Add / Less Net cash used in Investing activities Free Cash Flow to Firm

CALCULATION OF FCFE FOR THE CURRENT YEAR FROM THE ABOVE Net cash generated from Operating activities Add / Less Net cash used in Investing activities Add / Less Net Cash generated / used from / in Financing activities : Net debt borrowed Interest and finance charges paid Net Preference shares issued Prefrence dividend paid including tax on dividend Equity shares issued (Equity dividend paid is delebrately not included) Free Cash Flow to Equity holders

or the year 2008-09 Rs. In Crores 2007-08

397.73 170.16 2.88 89.18 -8.1 92.6 -0.5 743.95 -30.91 -138.51 175.08 749.61 -54.35 -110.1 585.16

-694.35 2.37 3.89 8.1 -11.76 -1531.06 1531.06 -691.75 CASH FLOW FROM FINANCING ACTIVITIES : 17.94 -576.49 674.95 -100.56 0 0 15.84 -90.75 Net debt borrowed Preference shares issued Interest and Finance charges paid Preference dividend paid including tax on dividend Equity shares issued Equity dividend paid including tax on dividend

137.39 46.64

Valuation of Equity shares using FCFF Present Value of FCFF including the PV of Terminal Value Add: Opening Cash and Cash equivalents Less : Preference shares outstanding including the preference dividend payable to them Less : Debt outstanding including interest charges payable to them Value of Equity Number of Equity shares Intrinsic value of equity per share is : Value of Equity / Number of Equity shares

Assumptions

Revenue growth rates have to be projected based on business conditions Capex can be expressed as a percentage of Revenue or as a percentage of Net o Depreciation can be expressed as a percentage of Revenue or as a percentage of Working capital items like cash, BR, inventory etc can be expressed as a percenta Trademarks, intangibles, goodwill, other assets, deferred taxes and pension obliga EBIT and / or EBITDA / NOPAT margins can be expressed as a percentage of Re Tax rate is to be projected

onditions ercentage of Net or Gross Fixed assets as a percentage of Net or Gross Fixed assets sed as a percentage of Revenue or as a percentage of Net or Gross Fixed Assets and pension obligations in the balance sheet have to be projected based on estimates percentage of Revenue

Sales Cost of Goods Sold (COGS) EBITDA (Operating Income) Dep & Amortisation Other non-cash charges EBIT Interest EBT Tax EAT Sales Growth EBITDA Margin Net capex Net working capital Net debt raised Preference capital raised Equity capital raised Outstanding debt Outstanding preference shares Outstanding equity shares Outstanding number of eq sh Cost of debt Effective Tax Rate Beta of the company Risk Free Rate Market Return Cost of equity Cost of Preference shares WACC Terminal rate

Current Projected Period 3/31/2011 Year 1 Year 2 315065.6

Year 3

Year 4

Terminal Year 5

DCF VALUATION FCFF Revenue X Operating Margin (%) = Operating Profit Less Depreciation = EBIT Effective Tax Rate (%) Tax Adjusted EBIT Add Depreciation Add Other Non Cash Charges Less Increase / Decrease in WC Less Capex Free Cash Flow to the Firm

Add Add Less Less Less +/-

Discounted Free flow for the Operating period Terminal Value Discounted Firm Value Less Total Debt & Pref Capital Add Transferable Liquid Investments Total Equity Value of the Company Number of Shares in issue Intrinsic Value of per share Current Market Value per share Weighted Average Cost of Capital

Add

WACC Cost of Equity Rf + B (Rm - Rf) Rf Beta Rm Cost of Equity Cost of Debt (pre-tax) Cost of Debt (post-tax) WACC

Terminal Value (Value driver formula) Terminal Growth Rate (%) Terminal Value Discounted

VALUATION FCFE Revenue Operating Margin (%) Operating Profit Depreciation EBIT Interest Charges paid EBT Effective Tax Rate (%) EAT Depreciation Other Non Cash Charges Increase / Decrease in WC Capex Pref Dividends Paid Net change in Debt Free Cash Flow to the Equity shareholders 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Discounted Free flow for the Operating period Terminal Value Discounted Equity Value Transferable Liquid Investments Total Equity Value of the Company Number of Shares in issue Intrinsic Value of per share Current Market Value per share

Cost of Equity Rf + B (Rm - Rf) Rf Beta Rm Cost of Equity

Terminal Value (Value driver formula) Terminal Growth Rate (%) Terminal Value Discounted

GIVEN Opening Revenue (Rs) Revenue growth per year Operating Margin Depreciation (Rs) Effective Tax Rate Other non-cash charges (Rs) Inc / Dec in Working Capital (Rs) Capex Pref Div paid per year Debt raised during the year Cost of Debt Risk Free rate of Interest Market Return Beta of the Stock Terminal Growth Rate Debt outstanding Encashable liquid investments Total equity shares issued by the company Number of shares in issue Current Market Price Cash flow projection period Pref Shares outstanding 10000 25% 15% 700 30% 500 300 2000 0 700 14% 6% 16% 1.15 2.50% 2000 100 7500 750 45 5 0

per year per year per year in the third year per year at the beginning of the 4th year

years

A SIMPLE DISCOUNTED CASH FLOW (DCF) MODEL FOR VALUING A SH Revenue Growth Rate Terminal Growth Rate Operating Margin Tax Rate Capex Growth as % of gross assets Inc WC as % of revenues Cost of Debt Cost of Equity using CAPM Debt Equity Ratio Weighted Avg Cost of Capital Equity No.of Shares at Rs.10 Face Vale per Share Total Capital FCFF 22% 4% 15% 25% 2% 1% 12% 17.33% 2:03 14.00% 60 Rs 6 100 Rs Year 0 Year 1 Year 2

Revenues Operating Margin EBIT Taxes EBIT(1-t) + Depreciation - Capital Expenditures - Chg WC Free Cash Flow to the Firm (FCFF) Terminal year Present Value of FCFF Present Value of Terminal year cash flow The Valuation PV of FCFF during growth phase = PV of Terminal Value = Value of Operating Assets of the firm = Value of Excess Cash & Non-operating assets= Value of Firm = - Value of Outstanding Debt = Value of Equity = Value of Equity per share =

200.00 0.15 30.00 7.50 22.50 12.50 3.00 1.00 31.00

244.00 0.15 36.60 9.15 27.45 5.00 10.00 1.22 21.23 18.62

297.68 0.15 44.65 11.16 33.49 5.00 10.00 1.49 27.00 20.78

62.38 239.11 301.49 10 311.49 40 271.49 45.25

EL FOR VALUING A SHARE Risk Free Rate of Return Market Return Beta of the Stock 7.50% 15% 1.31

Value of Equity Per Share

45.25

Year 3

363.17 0.15 54.48 13.62 40.86 5.00 10.00 1.82 34.04 354.20 22.98 239.11

GFA DEP NFA

0 150 30 120

1 160 35 125

2 170 40 130

3 180 45 135

A SIMPLE DISCOUNTED CASH FLOW (DCF) MODEL FOR VALUING FCFF Revenues Operating Margin EBITDA Less: Dep and Amortization Taxes EBIT(1-t) + Depreciation+Other non cash charges - Capital Expenditures - Chg WC Free Cash Flow to the Firm (FCFF) Present Value of FCFF Year 0 306335.70 0.254 77809.27 6559.90 22613.17 48636.19 6559.90 11968.70 458.60 42768.79 Year 1 335284.42 0.263 88057.76 6559.90 26079.32 55418.54 6559.90 15622.54 458.60 45897.30 41432.06 Year 2 366968.80 0.272 99656.11 6559.90 29790.79 63305.42 6559.90 15622.54 458.60 53784.18 43828.16

The Valuation PV of FCFF during growth phase = PV of Terminal Value = Value of Operating Assets of the firm = Value of Excess Cash & Non-operating assets= Value of Firm = - Value of Outstanding Debt = - Value of Pref sh outstanding = Value of Equity = Value of Equity per share =

230238.82 4164224.10 4394462.92 250 4394712.92 1600 0 4393112.92 488.12

Calculation of WACC Post tax cost of debt Cost of Equity Cost of Preference shares Debt for years 1 to 5 Equity Preference shares Total Capital WACC for years 1 to 5 Debt for year 5 onwards

38.33% 10.50% 0.00% 1600 158999 0 160599 10.78% 1600

Equity Preference shares Total Capital WACC for year 5 onwards Interest on debt Interest on debt after year 5

158999 0 160599 10.78% 583.2 901.92

ODEL FOR VALUING A SHARE FCFF Year 3 401647.35 0.281 112782.12 6559.90 33991.11 72231.11 6559.90 15622.54 458.60 62709.87 46130.04 Year 4 439603.03 0.290 127636.99 6559.90 38744.67 82332.42 6559.90 15622.54 458.60 72811.18 Year 5 Terminal Year

481145.51 0.300 144448.44 6559.90 44124.33 93764.21 6559.90 15622.54 458.60 84242.97 6946843.89 Terminal period value 48349.87 50498.70 4164224.10 PV of Terminal period

A SIMPLE DISCOUNTED CASH FLOW (DCF) MODEL FOR VALU

Revenue Growth Rate Terminal Growth Rate Operating Margin Tax Rate Capex Growth as % of incremental revenues Inc WC as % of incremental revenues Cost of Debt Cost of Equity using CAPM Debt Equity Ratio Weighted Avg Cost of Capital Equity No.of Shares at Rs.10 Face Vale per Share Total Capital FCFE

25% 5% 15% 30% 5% 2% 12% 16.80% 200000 11.20% 100000 Rs 10000 100 Rs Year 0 Year 1 1

Revenues Operating Margin EBITDA Less: Interest paid Less: Depreciation & Amort EBT Taxes EAT + Depreciation and non-cash charges - Capital Expenditures - Chg WC +/- Net change in debt - Dividends to Pref shares Free Cash Flow to Equity Shareholders (FCFE) Present Value of FCFE

10000.00 0.15 1500.00 280.00 700.00 520.00 156.00 364.00 1200.00 0.00 300.00 0.00 1264.00

12500.00 0.15 1875.00 280.00 700.00 895.00 268.50 626.50 1200.00 0.00 300.00 0.00 1526.50 1306.93

The Valuation PV of FCFE during growth phase = PV of Terminal Value = Value of Operating Assets of the firm = Value of Excess Cash & Non-operating assets= Value of Equity = Value of Equity per share =

6175.88 13591.79 19767.67 100 19867.67 26.49

DCF) MODEL FOR VALUING A SHARE FCFE

Risk Free Rate of Return Market Return Beta of the Stock

6.00% 15% 1.2

Value of Equity Per Share

26.49

Year 2 2 15625.00 0.15 2343.75 280.00 700.00 1363.75 409.13 954.63 1200.00 0.00 300.00 0.00 1854.63 1359.47

Year 3 3 19531.25 0.15 2929.69 280.00 700.00 1949.69 584.91 1364.78 1200.00 2000.00 300.00 0.00 264.78 166.17

Year 4 4 24414.06 0.15 3662.11 378.00 700.00 2584.11 804.63 1779.48 1200.00 0.00 300.00 700.00 0.00 3379.48 1815.84

Year 5 5 30517.58 0.15 4577.64 378.00 700.00 3499.64 1079.29 2420.35 1200.00 0.00 300.00 0.00 3320.35 29545.46 1527.46 13591.79

Terminal Year

Inputs Earnings before interest and taxes = Expected growth for next 5 years = Expected growth after year 5 = Tax rate = Debt ratio for the firm = Cost of equity = Pre-tax cost of debt = Return on capital in high growth= Return on capital in stable growth = 0 Expected Growth rate Reinvestment rate EBIT Taxes EBIT(1-t) - Reinvestment FCFF Terminal Value Present Value Value of Firm = Value of Equity = Value of Debt = EBIT Interest Exp EBT Taxes Net Income - Reinvestment + New Debt Issued FCFE Terminal Value of Equity Present Value Value of Equity = Capital Structure Debt at end of year Cost of Equity Pre-tax Cost of Debt After-tax Cost of Debt Cost of Capital

$ 100.00

$ $ $ $ $

100 10% 5% 40% 20% 12% 7% 12% 10% 1 10% 83.33% 110.00 44.00 66.00 55.00 11.00

$ $ $ $ $

2 10% 83.33% 121.00 48.40 72.60 60.50 12.10

$ $ $ $ $

3 10% 83.33% 133.10 53.24 79.86 66.55 13.31

$ $ $ $ $

4 10% 83.33% 146.41 58.56 87.85 73.21 14.64

$ 9.96 $ 9.92 $ 617.01 $ 670.42 $ 728.31 $ 493.61 ! Equity as % of value $ 123.40 ! Debt as % of value $ 100.00 $ 110.00 $ 8.64 $ 101.36 $ 40.54 $ 60.82 $ 55.00 $ 10.68 $ 16.50 $ $ 493.61 14.73 $ 121.00 $ 9.39 $ 111.61 $ 44.65 $ 66.97 $ 60.50 $ 11.58 $ 18.05 $ 14.39

$ 9.88 $ 791.04

$ 9.84 $ 858.98

$ $ $ $ $ $ $ $

5 10% 83.33% 161.05 64.42 96.63 80.53 16.11 932.56 577.40 932.56

Terminal Year 5% 50.0% $ 169.10 $ 67.64 $ 101.46 $ 50.73 $ 50.73

! This is the present value of the c starting in each year; year 2, year

$ 133.10 $ 10.20 $ 122.90 $ 49.16 $ 73.74 $ 66.55 $ 12.55 $ 19.74 $ 14.05

$ 146.41 $ 11.07 $ 135.34 $ 54.13 $ 81.20 $ 73.21 $ 13.59 $ 21.58 $ 13.72

$ $ $ $ $ $ $ $ $ $

161.05 12.03 149.03 59.61 89.42 80.53 14.71 23.60 746.05 436.72

$ 169.10 $ 13.06 $ 156.05 $ 62.42 $ 93.63 $ 50.73 $ 9.33 $ 52.22

$ 123.40

$ 134.08 12.00% 7.00% 4.20% 10.44%

$ 145.66 12% 7% 4.20% 10.44%

$ 158.21 12.00% 7.00% 4.20% 10.44%

$ 171.80 12.00% 7.00% 4.20% 10.44%

$ 186.51 12.00% 7.00% 4.20% 10.44%

$ 195.84 12.00% 7.00% 4.20% 10.44%

Terminal Year

! This is the present value of the cash flows to the firm starting in each year; year 2, year 3…

FCFF ebit taxes ebit(1-t) reinvestment fcff terminal value present value value of firm value of debt value of equity Wtd avg cost of capital

FCFE ebit int exp ebt taxes net income reinvestment new debt issued fcfe terminal value present value value of equity cost of equity

! This is the new debt issued each year

ebit on day zero ebit growth rate during the growth period terminal growth rate tax rate debt ratio for the firm cost of equity reinvestment rate or capex and incremental working cap

! This is 30% of each year's firm value

! Computed using a 70% Equity; 30% Debt ratio.

FCFF Model DCF Analysis: WACC Method Add Less = Add Add Add Add Add Add Less Less

Net income (PAT) Interest expense Tax effect of interest expense After-tax interest expense Net operating profit after tax (NOPAT) Depreciation Amortization Deferred taxes (non cash charges) Minority interest Income from affiliates Other noncash items Changes in net working capital (NWC) Capital expenditures Other Free cash flow Terminal value (EBITDA multiple) Total free cash flows to capital providers Valuation Firm value Plus: excess cash Less: debt outstanding Less: minority interest Less: preferred stock Equity value Value per share WACC calculation Debt/market equity Relevered beta Ke WACC

Add Add Add Add Add Add Less Less +/+/-

FCFE Model

FCFF Model adjusted for leverage of the firm DCF Analysis: Adjusted Present Value (for leverage)

DCF Analysis: Equity Residual Method Net income (PAT) Depreciation Amortization Deferred Taxes Minority Interest Income from Affiliates Other Non-Cash Items Changes in Net Working Capital Equity Cash Flow from Operations Capital Expenditures Change in Debt Change in Preferred Preferred Dividends (includes convertible) Other Residual Cash Flows Terminal Value (P/E Multiple) Cash Flows to Common Equity Holders Valuation Equity Value Value per Share Plus: Debt Outstanding Plus: Minority Interest Plus: Preferred Stock Less: Excess Cash Firm Value Cost of Equity Calculation Debt/Market Equity Relevered Beta Ke

Net income (PAT) Add Interest Expense Less Tax Effect of Interest Expense = After Tax Interest Expense NOPAT Add Depreciation Add Amortization Add Deferred Taxes Add Minority Interest Add Income from Affiliates Add Other Non-Cash Items Less Changes in Net Working Capital
Less

Capital Expenditures Other Unlevered Free Cash Flow Terminal Value (EBITDA Multiple) Cash Flows to Capital Providers Valuation Unlevered Free Cash Flows Debt Tax Shield Firm Value Plus: Excess Cash Less: Debt Outstanding Less: Minority Interest Less: Preferred Stock Equity Value Value per Share

Add

age of the firm

nt Value (for leverage)

Aban Offshore - Parag Parikh CASH FLOW OPENING CASH AND BANK Profit After Tax Investment Income Interest Paid Miscellaneous Expenses W/Off Depreciation Minority Income Deferred Taxation Others Change in Working Capital CASH FLOW FROM OPERATING ACTIVITIES Change in Fixed Assets Change in Investments Investment Income CASH FLOW FROM INVESTING ACTIVITIES Increase in Equity Change in Preference Capital Change in Borrowings Change in Minority Interest Interest Paid Dividend- Equity Dividend- Preference Capital Minority Income CASH FLOW FROM FINANCING ACTIVITIES NET CHANGE IN CASH CLOSING CASH AND BANK

Less Add Add Add Add Add / Less Add / Less Add / Less

Add / Less Add / Less Add

Add Add / Less Add / Less Add / Less Less Less Less Less

Profit and Loss Account HINDUSTAN UNILEVER LIMITED Dec-04

Income
Sales Turnover Exise Duty Net Sales Other Income Stock Adjustments 10996.72 939.61 10057.11 171.12 -76.69 10151.54

Total Income Expenditure

Raw Materials 5413.77 Power & Fuel Cost 164.77 Employee Cost 574.84 Other Manufacturing Expenses 193.84 Selling and Admin Expenses 1713.73 Miscellaneous Expenses 377.93 Preoperative Expenses Capitalized 0 Total Expenses 8438.88 Operating Profit 1541.54 (Total Income-Other Income - Total Expenses) PBDIT (add back Other Income) 1712.66 Interest 129.98 PBDT 1582.68 Depreciation 120.9 Other Written Off 0 Profit Before Tax 1461.78 Extra-Ordinary items 56.29 PBT (Post Extra Ord Items) 1518.07 Tax 320.74 Reported Net Profit 1197.33

Tommy Hilfiger

Less = Less Less = Less = Less Less = Add Add Less Add Less Less =

Total Revenues Cost of Goods Sold Gross Profit SG & A expense D&A expense Operating Income (EBIT) Interest expense Taxable Income Tax expense Minority Interest and Other Net Income Interest D&A expense Capital Exp Asset Sales Acquisitions Changes in WC FCFF

Add = Less = Less Less Less Less = Add Less Add = Less =

Less = Add Less Add =

Star Bucks Corporation Income Statement Retail Sales Speciality Sales Net Sales Cost of Goods Sold Gross Margin Store Operating Expenses Other Operating Expenses Depreciation and Amortisation SG & A expenses Operating Income (EBIT) Interest and Other Income Interest and Other Expense Gain on Sale of Investment Earnings Before Tax Income Taxes Net Income Number of Shares Earnings Per Share

2000 1807704 315810 2123514 961999 1161515 671420 64292 111578 119250 194975 21255 0 216230 432460 86492 129738 182190 0.71

EBIT Taxes on EBIT NOPAT Depreciation and Amortization Capex Change in WC Free Cash Flow to Firm

194975 77990 116985 111578 -222565 299495 305493

Parameters PBDIT Book Value of Assets Sales Profit after Tax Cash Flow Market Capitalization

Dabur

HUL Rs. In Crores 12 15 75 80 80 100 8 10 9 12 240 Ratios 16 3 2.4

ITC 20 100 160 16 18 360

Industry Average

Weights for ratios

IPO Company 18 90 125 12.5 14

150

MV/ PBDIT MV / BV MV / Sales

12.5 2 1.875

18 3.6 2.25

15.50 2.87 2.18

0.20 0.20 0.60 1.00

Relative Valuation DCF Book Value Market Value

#

26 35 28 15 26

Parameters Sales EBITDA EBIT EAT BV Market Capitalization

Dabur

HUL Rs. In Crores 150 140 70 60 30 25 15 13 100 90 600 550 Ratios 3.93 9.17

ITC 160 75 35 20 110 650

Industry Average

Weights for ratios

IPO Company 100 40 28 16 70

MV/ Sales MV / EBITDA

4.00 8.57

4.06 8.67

4.00 8.80

0.20 0.20

MV / EBITDA MV/EAT MV/BV

20.00 40.00 6.00

22.00 42.31 6.11

18.57 32.50 5.91

20.19 38.27 6.01

0.20 0.20 0.20

IPO Company

Contribution of each parameter to Mcap 55.8 51.6 163.13

Rs Rs

270.53 Crores 27.05 Price per share of IPO Company on Relative Valuation basis

IPO Company

Contribution of each parameter to Mcap 79.94 70.41 113.07 122.46 84.09 Rs Rs

469.98 47.00

An economic moat is a structural thing. Hard to duplicate and thus long lasting Your competitors know your secret and yet still cant copy. Southwest Airlines of nineties 1 Economies of Scale and Scope Wal-Mart, Home-Depot, P&G, Lowe, Cintas Market leader in a fragmented and unorganized sector 2 Network affect eBay, Mastercard, Visa, American Express 3 IPR Patents, trademarks, regulatory approvals or customer goodwill Disney, Nike, Genentech

4 High customer switching costs Paychex, Microsoft

nd yet still cant copy.

McLeod Russel Jagran Prakashan Asian Paints Sun TV Reliance Industries Colgate Palmolive (India) OnMobile Global Nestle India Shriram Transport finance Pidilite Industries

Largest Tea Producer in the world Highest News paper circulation in North Customer loyalty Cable TV business in South India

India's largest refiner More than 50% market share in toothpaste VAS provider of choice for domestic and global mobile telecom ope Strong brand in food products Commercial Vehicle Finance Adhesives

l mobile telecom operators

Based on Revenue FAST GROWING STOCKS

Based on Forward PE LEAST EXPENSIVE STOCKS Shiv-Vani Oil and Gas exploration Limited JBF Industries Aban Offshore Deepak Fertilizers Dalmia Bharat Enterprieses HDIL Sintex Sesa Goa Kalpataru Power Sterlite Industries IL&FS Transportation Zuari Industries

Cox and Kings Jaiprakash Power GSFC Oberoi Realty Prestige Estates Monnet Ispat Motherson Sumi Systems Limited Adani Power Mercator Pipavav Defence

PE to EPS Growth rate BEST PEGs

High Dividend Yield INCOME GENERATORS

Jubliant Life Science JSW Steel CPCL Cox and Kings HEG Limited JK Cement India Cements

Cheenai Petroleum JBF Industries TVS Motor Co Gateway Distriparks HPCL Gujrat Industries Power Jagran Prakashan Usha Martin Ashok Leyland Oil India Hexaware Technologies

Filters 1 Past 5 years growth of top line (Revenue or Sales) 2 Past 5 years growth of bottom line (PAT or Net Profit) 3 Past 5 years growth of EPS 4 Past 5 years EBIT, EBITDA, NOPAT & PAT margins 5 EBITDA to (Net Working Capital + Net Fixed Assets) ratio 6 EBITDA to EV (Market Capitalization of Equity + Debt - Excess Cash & CE) 7 PE ratio 8 PEG ratio (PE / EPS growth rate) 9 Dividend Yield Ratio (Dividend / Share price) 10 DSCR > 20% > 20% > 20% > 20% > 20% > 15% < 10 <1 > 5% >3

Weight 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%

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10% .

4 0.2 0.3 0.5 0.4 0.3 0.3 0.2 0.Scores 1 to 5 3 2 3 4 2 3 4 5 2 3 0.1 = or > 1 < 2 = or > 2 < 3 = or > 3 < 4 = or > 4 < 5 No May not Yes Surely Yes .2 0.3 3.

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