INCOME STATEMENT F=FORECASTED H=HISTORIC

Particulars FYEARS
2019 2020 2021 2022 2023
Sales/NET SALES FROM OPTS 11306.31 11645.49 11994.00 12354.00 12724.00
COGS(9.22%) 1042.44 1073.71 1105.85 1139.04 1173.15
GP 10263.87 10571.78 10888.15 11214.96 11550.85
EC (6.19% ) 699.86 720.86 742.43 764.71 787.62
PURCHASES (17.72%) 5.77 5.94 6.12 6.30 6.49
SE(29.85) 3374.93 3476.18 3580.21 3687.67 3798.11
OTHER EXPENSES( 4702.29 4843.36 4988.30 5138.03 5291.91
DEP 564.18 581.11 598.50 616.46 634.93
EBIT 916.83 944.33 972.59 1001.79 1031.79
INT 133.41 137.42 141.53 141.53 150.14
EBT 783.41 806.92 831.06 860.26 881.65
TAX 22.83% 178.85 184.22 189.73 196.40 201.28
EAT(FROM OPERATIONS) 604.56 622.70 641.33 663.86 680.37
OTHER REVENUE
OTHER INCOME
FINAL PAT 604.56 622.70 641.33 663.86 680.37
EBITDA 1481.01 1525.44 1571.09 1618.25 1666.72

Balance sheet

Particulars FYEARS
2019 2020 2021 2022 2023
ASSETS
11306.31 11645.49 11994.00 12354.00 12724.00
DEBTORS(4.28) 483.91 498.43 513.34 528.75 544.59
1042.44 1073.71 1105.85 1139.04 1173.15
INVENTORY 1313.48 1352.88 1393.37 1435.19 1478.17
LOANS & ADVANCES
CASH 3150 3150 3150 3150 3150
CAPITAL WIP 338 338 338 338 338
PROP & EQUIP(50.67%) 5728.91 5900.77 6077.36 6259.77 6447.25
PURCHASES 5.7662181 5.9391999 6.11694 6.30054 6.48924
0.53049207 0.54640639 0.56275848 0.57964968 0.59701008
H=HISTORIC

HYEARS
2015 2016 2017 2018
10977
1013
0 0 0 9964 0.092
680 0.062
5.6 0.001
3277 0.299
4566 0.416
548 0.050
0 0 0 887.4
130 0.012
0 0 0 757.4 YEAR
172.8 0.228 2017
0 0 0 584.6 2549
379 4566
374
0 0 0 1337.6
0 0 0 1435.4

HYEARS
2015 2016 2017 2018

0.0428 470

1277 1.26

3150 5563 100

338 10977
5563 0.5067
0.45

0.092
PARTICULAR
OTHER
POWER N FUEL
TOTAL
FREE CASH FLOW
PART A 2019 2020 2021 2022 2023
NOPAT(EBIT (1-T)) 707.52 728.74 750.55 773.08 796.23
ADD : DEPRE 564.18 581.11 598.50 616.46 634.93
∆ WC -50.42 -53.90 -55.39 -57.21 -58.80
LESS:CAPEX -165.91 -171.86 -176.59 -182.41 -187.48
FCF 1055.38 1084.08 1117.07 1149.92 1184.88
DFCF 913.96 814.15 726.10 648.55 578.22 3680.98
DF 0.866 0.751 0.650 0.564 0.488
CHANGE IN WC
2018 2019 2020 2021 2022 2023
INVENTORIES 1277 1313.48 1352.88 1393.37 1435.19 1478.17
DEBTORS 470 483.91 498.43 513.34 528.75 544.59
CREDITORS 0.56 0.530 0.546 0.563 0.580 0.597
WC 1746.44 1796.86 1850.76 1906.15 1963.36 2022.16
∆WC NA -50.42 -53.90 -55.39 -57.21 -58.80

5563 5728.91 5900.77 6077.36 6259.77

CHNG IN CAPEX -165.91 -171.86 -176.59 -182.41

DISC RATE
 WORKING:

2019 2020 2021 2022 2023

EBIT 916.8287 944.3328 972.5935 1001.786 1031.789
NOPAT(EBIT (1-T)) 707.5167 728.7416 750.5504 773.0781 796.2317

100
TAX RATE 22.83
1-TAX RATE 77.17 100 0.7717

6447.25
-187.48
Year NET SALES
1 9911 2014 CAGR 3%
2 9368 2015
3 9117 2016
4 10240 2017
5 10977 2018
WACC COMPUTATION

10 YEAR BOND RATE AS OF 2018 7.20%

Company long term lending rating AAA

BASIS POINTS 108 1.08%

Kd 8.28% i-tax rate

kd(i-T) 6.39%
BY CAPM Model:
rf+(β*(rm-rf)) 7.2 1.36 13.45 7.2
RF BETA RM RF

RM-RF 6.25 8.5

COST OF CAPITAL
COST PROPORTION W
Ke 15.7 * 95.90% 15.0563
Kd 8.28 * 4.10% 0.33948
WACC 15.39578
 8.28 22.83% 1.89

6.39

15.7
 PART B
TERMINAL VALUE EQUALS TO FcFn(1+g)/ WACC-G

1184.88(1+6%) → 1263.08 → 13880

15.7%-6.6% 0.091

TV → 13880

DTV → 13880 * 0.488

DCF 3680.98
Add DTV 6773.44
Less DEBT 900
Divide o/s wtd shares 1.99
10002.159
→ 6773.44