Financials of Sector: Alcoholic Beverages|| Industry: Breweries & Distille

Rs. Crore
Companies Sales Debt Equity
United Brewerie 3,562 3,303 101
Radico Khaitan 42.75 3292.58 100.51
GM Breweries 256.98 168.50 9.3666
Som Distillerie 195.2134103 165.4570781 27.5224
Globus Spirits 506.9756563 499.5865604 22.997741

UB RK GB
No of shares outstanding 2,644,051 904,983.00 9,358,100
Share Price on 09 Nov 2012 545.825 124.15 81.7
Market Cap 1,443,189,404.53 112,353,639.45 764,556,770.00
144.3189405 11.235363945 76.455677
Total debt 3303 32.9258 168.4961
cash & cash equivalents 171 21.04 12.02
EV 3,277 23.12266 232.93
EPS 4.56 4.79 10.009

share capital 1,005,100,000 265,408,000.00 93,666,000.00

BV/MV 1841432.694 2,137,801.05 1,146,462.67
1841432.694 0.213780105 0.114646267
weries & Distilleries Companies(Rs Rupees)

EV EBIT EBITDA Beta BV/MV PE

3,277 317 412 1 0.184143269 119.6984649
3133.17 327.17 360.0094 0.993 0.213780105 25.92
232.93 122.41 126.2324 1.16 0.114646267 8.162653612
696.7691789 25.4792195 29.0744906 0.837 0.140313026 35.40613718
777.4504431 507.660447 63.062615 1.52 0.185503053 6.97272216
Median
Accounting No. of Lively
Enterprice Value
Less:Net Debt
SD GS Equity Value
27,522,400.00 22,997,741.00 Value/Share in Rs.
196.15 123.975
5,398,518,760.00 2,851,144,940.48
539.851876 285.114494048 mp
165.4570781 499.5865604 t debt
8.5397752 7.2506113 cash and cash equivalents
696.7691789 777.4504431 ev
5.54 17.78
shatres outstanding
275,224,000.00 229,977,410.00
1,403,130.26 1,855,030.53
0.140313026 0.185503053
EV/Sales EV/EBITDA P/E
0.9198958283 7.953079953 119.6984649
73.29052632 8.703022754 25.92
0.9064076597 1.845247337 8.162653612
3.569269026 23.96496601 35.40613718
1.533506458 12.32823033 6.97272216
1.533506458 8.703022754 25.91858038
980925.69
22314.76
12101.725
10213.035
780.8431132

10490.74
12101.725
277.6998
22314.76

130794968
Revenue
Revenue from Operations 160,464.33
Less: Excise Duty 85,037.59
75,426.74
Other Income 1,775.87
77,202.62

Expenses
Cost of Materials Consumed 38,261.48
Purchase of Traded Goods 8,592.73
Change in inventories of Finished Goods, Work-in-Progress
and Stock-in-trade -1,798.21
Employee Benefits expense 4,210.08
Finance Costs 5,512.67
Depreciation and Amortisation Expense 608.453
Other expenses 16,668.36
72,055.56

Profit before Exceptional items and Taxation 5,147.06

Exceptional items [Refer Note 19] -108.163

Profit before Taxation 5,038.89

Tax Expense:
Current Tax 1,695.00
Deferred Tax Charge / (Credit) -84.049

Profit for the year 3,427.94

Basic / Diluted Earnings Per Share (Face value of Rs.10 each) 26.21
United Spirites Ltd. - Balance Sheet
(Rs. Million)

Assets

Fixed Assets
Tangible Assets 11,237.14
Intangible Assets 21.152
Capital Work in Progress 567.179
Non Current Investments 16,104.44
Deferred Tax Assets (net) 286.785
Long term Loans and advances 53,765.56
Other Non Current Assets 60.002

Current Assets
Current Investments 188.776
Inventories 14,522.36
Trade Receivables 12,828.00
Cash and Bank balance 2,777.00
Short term Loans and Advances 8,657.51
Other Current Assets 1.346

Total Assets 121,017.25

Equity and Liabilities

Shareholders’ Funds
Share Capital 1,307.95
Reserves and Surplus 57,476.92

Non-current Liabilities
Long term borrowings 13,991.88
Other Long-term liabilities 200.184
Long term provisions 388.033

Current Liabilities
Short-term borrowings 20,456.49
Trade Payables 14,675.33
Other Current Liabilities 11,808.31
Short-term provisions 712.148

Total Liabilities 121,017.25

Interest-Rate Yields(%)

Government

T.Bill(1-year) 5.93 8.372 8.473 0.12

T.Note(10-year) 6.39 8.546 3.39 2.05
T.Bond(30-year) 6.98 3 3.99

Industrials

AAA 7.22
AA 7.39
A 7.58
BBB 7.95
BB 8.87
B 10.05 aa+ 9.75

ERP 5.5 Rm-Rf Equity Risk Premium = R

ERP 8.30296566
Rm 8
Rf 2
βa 1.383828
emium = Ra - Rf = βa (Rm - Rf)
8.30296566
Companies Levered β Unlevered β Median Median of Industry D/E Median
United Brewerie 1 0.03624632216 32.7029703
Radico Khaitan 0.993 0.04149410306 32.75873047
GM Breweries 1.16 0.085342280460.08534228046 17.98903551 21.72328
Som Distillerie 0.837 0.1607079 6.011724199
Globus Spirits 1.52 0.09379067544 21.7232884
1.07520

For United Spirites Ltd.

Market Value Unlevered βD/E Cost of equity Cost of Debt WACC
2.46224239 1.114652471 12.91734868 6.825 7.701203

Valuations
As-Is-Basis
2013 2014 2015 2016 2017
Sales 8,263 8,409 7,968 8248 8548
Less:COGS 596.43 480.34 -810.72 -70.84 -123.5
Less:SGA 182.97 1221.16 889.06 300.7 72.1
EBIT 7,484 6,708 7,890 8,018 8,599
NOPAT 5238.52 4695.25 5522.762 5612.698 6019.58
Add:Dept 549 279 44 -598 398
Less:CapEX 187 63.54 108.69 -191.6 71.3
Less:NWC 157.22491 505.5764 796.1928 426.2141 275.3
Operating FCFF -39.2218 \
CV
Final FCFF
Relevered β Cost of equity Pre-Taxed Cost of Debt Post Taxed Cost of Debt WACC D/(D+E)
0.970329
0.970378
1.383082761 15.47987313 9.75 6.825 7.20588 0.947338
0.857381
0.955992
Median 0.955992

D/(D+E) E/(D+E)
0.977973682 0.07946930306

Cash Flow
E/(D+E)
0.02967097532
0.029621967
0.05266196904
0.1426182736
0.044007715
0.044007715
Symbol Series Date Prev Close Open PriceHigh Price Low Price Last Price Close PriceAverage Price Total Trad Turnover
MCDOWELL-N EQ 1-Nov-12 1175.75 1175 1211.75 1171.45 1178.9 1185.6 1190.87 3205829 3.82E+09
MCDOWELL-N EQ 2-Nov-12 1185.6 1186 1202 1176.05 1182.55 1183.85 1189.01 1845627 2.19E+09
MCDOWELL-N EQ 5-Nov-12 1183.85 1170 1229 1151.6 1224.35 1219.65 1196.92 3010842 3.6E+09
MCDOWELL-N EQ 6-Nov-12 1219.65 1219 1266.6 1219 1246.1 1243.2 1253.92 3456894 4.33E+09
MCDOWELL-N EQ 7-Nov-12 1243.2 1260 1307 1226.9 1300 1299.7 1283.81 3677708 4.72E+09
MCDOWELL-N EQ 8-Nov-12 1299.7 1290 1407 1282.9 1339 1343.45 1356.1 8683299 1.18E+10
MCDOWELL-N EQ 9-Nov-12 1343.45 1390 1425 1332.05 1355 1360.5 1376.2 8361750 1.15E+10
MCDOWELL-N BL 12-Nov-12 479.85 1540 1540 1540 1540 1540 1540 145000 2.23E+08
MCDOWELL-N EQ 12-Nov-12 1360.5 1399.95 1874.6 1376 1832.05 1832.95 1674.5 25325946 4.24E+10
MCDOWELL-N EQ 13-Nov-12 1832.95 1833 1942 1787.15 1802.6 1804.4 1809.61 2281535 4.13E+09
MCDOWELL-N EQ 15-Nov-12 1804.4 1803.3 1953.9 1781.5 1848.95 1850.5 1872.12 10023947 1.88E+10
MCDOWELL-N EQ 16-Nov-12 1850.5 1860 1870.85 1761.05 1791 1791.3 1822.82 5416180 9.87E+09
MCDOWELL-N EQ 19-Nov-12 1791.3 1792 1808.25 1728 1762 1752.05 1766.78 3065279 5.42E+09
MCDOWELL-N EQ 20-Nov-12 1752.05 1760 1797 1746.7 1757 1762 1774.16 2833009 5.03E+09
MCDOWELL-N EQ 21-Nov-12 1762 1769.95 1824 1757.25 1802 1810 1787.48 2393225 4.28E+09
MCDOWELL-N EQ 22-Nov-12 1810 1815 1837.1 1788.55 1827.4 1829 1816.42 2307915 4.19E+09
MCDOWELL-N EQ 23-Nov-12 1829 1840 1896.7 1813.45 1874.7 1880.45 1850.68 2955530 5.47E+09
MCDOWELL-N EQ 26-Nov-12 1880.45 1890 1968.2 1882.7 1935.55 1941.25 1940.93 3126191 6.07E+09
MCDOWELL-N EQ 27-Nov-12 1941.25 1944.2 2092.3 1944.2 2079.7 2073.45 2034.28 6728669 1.37E+10
MCDOWELL-N EQ 29-Nov-12 2073.45 2087 2150 2020.2 2022.3 2040.9 2092.48 6398593 1.34E+10
MCDOWELL-N EQ 30-Nov-12 2040.9 2045 2047 1974.1 1995.05 1996.2 2009.84 2955292 5.94E+09

Date Unt Spirite Diageo in Euro Diageo Nifty index

1-Nov-12 1190.87 111.24 7732.73736 5645
2-Nov-12 1189.01 110.85 7705.6269 5698
7000
5-Nov-12 1196.92 112.16 7796.69024 5704
6-Nov-12 1253.92 109.23 7593.01422 5724
7-Nov-12 1283.81 108.31 7529.06134 5760
6000
8-Nov-12 1356.1 108.69 7555.47666 5739

5000
 6000

9-Nov-12 1376.2 107.37 7463.71818 5686

12-Nov-12 1540 109.3 7597.8802 5684 5000
12-Nov-12 1674.5 108.72 7557.56208 5667
13-Nov-12 1809.61 108.9 7570.0746 5631
15-Nov-12 1872.12 110.98 7714.66372 5574 4000
16-Nov-12 1822.82 110.55 7684.7727 5571
19-Nov-12 1766.78 111.27 7734.82278 5572
20-Nov-12 1774.16 111.21 7730.65194 5615 3000
21-Nov-12 1787.48 111.87 7776.53118 5628
22-Nov-12 1816.42 112.62 7828.66668 5627
23-Nov-12 1850.68 112.3 7806.4222 5636 2000
26-Nov-12 1940.93 113.12 7863.42368 5727
27-Nov-12 2034.28 112.73 7836.31322 5825
29-Nov-12 2092.48 112.43 7815.45902 5828 1000
30-Nov-12 2009.84 112.79 7840.48406 5880

0
1- 2- 5- 6- 7- 8- 9- 12- 12- 13- 15- 16- 19- 20- 2
Nov Nov Nov Nov Nov Nov Nov Nov Nov Nov Nov Nov Nov Nov N
-12 -12 -12 -12 -12 -12 -12 -12 -12 -12 -12 -12 -12 -12 -
No. of TradDeliverable% Dly Qt to Traded Qty
122909 494506 15.43
67353 293155 15.88
101159 391051 12.99
111428 1082248 31.31
106646 777774 21.15
250859 1902792 21.91
260114 1861673 22.26
1 145000 100
692055 7189733 28.39
92997 388386 17.02
330261 2042560 20.38
212092 1474271 27.22
156279 575890 18.79
144999 728021 25.7
120160 536940 22.44
95459 276480 11.98
117731 648857 21.95
127464 356222 11.39
291939 1350294 20.07
239146 1663040 25.99
133878 686852 23.24
 Unt Spirite
Diageo
Nifty index

12- 13- 15- 16- 19- 20- 21- 22- 23- 26- 27- 29- 30-
Nov Nov Nov Nov Nov Nov Nov Nov Nov Nov Nov Nov Nov
-12 -12 -12 -12 -12 -12 -12 -12 -12 -12 -12 -12 -12