Snapshot Value of stock based on

Company Earnings
Britannia
Sector FMCG
Stock Price# 3483
No of shares outstanding 24 2390 Distance Covered 46%
Market Cap 40,368.27 Distance Left 12%
Promoter Shareholding 50.74% 4222

Historical Earnings Growth P E/B Valuation

Growth
Business
9000 Summary ZZ Sustainable Earnings Growth
PAT PAT EPS
8000
800 70
7000 4922
700 60
6000 600 50
5000 500
40
4000 400
Sustainable Earnings Growth 30
3000 300
200 20
2000
100 10
1000
0 0
0

Jan-08

Jan-09

Jan-11

Jan-12

Jan-14

Jan-15
Jan-07

Jan-10

Jan-13

Jan-16
Jan-07

Jan-08

Jan-09

Jan-11

Jan-12

Jan-13

Jan-14

Jan-16
Jan-10

Jan-15
Sales Trend PAT & EPS Trend

160
4.00 60%
140
3.50
50%
120
3.00
100 40%
2.50

2.00 80 30%

1.50 60
DU Pont Analysis 20% Book Value Trend
1.00 40
10%
0.50
20
0.00 0%
CY-4 CY-3 CY-2 CY-1 0 CY
Jan-07

Jan-09

Jan-10

Jan-11

Jan-12

Jan-14

Jan-15
Jan-08

Jan-13

Jan-16

Asset Turnover Equity Multiplier NPM ROE

Altman Score Piotroski Score

Qualatative parameters

Likely to be Bankrupt Weak

Less Chances of Bankruptcy Stable
Not likely to be Bankrupt Strong
 RESEARCH FRAMEWORK S.No
PARAMETER Max WEIGHT Actual Weight

TOTAL 100% 84.5

Financial Anlaysis 50% 46.5 1

Industry Analysis 13% 12.0 2

Management Analysis 23% 16.0 3

Other Parameters 10% 8.0 4

Margin of Safety 4% 2.0 5

6
7

10

11

3
4

4
Criteria Goal Actual Description
FINANCIAL ANALYSIS

ROE = Efficiency in allocating

capital, which is a CEO's #1 job.
Higher = Better. Look for
consistency.
Consider it a positive sign when a
company is able to earn above-
ROE/ROA 5 Yr. > 20% 44% average (better than competitors)
returns on equity without
employing much debt. Average
return on equity for Indian
companies over the last 10 years is
approximately 16%. Thus, seek
companies that earn atleast this
much (16%) or more than this.
Again, consistency is the key here.

Seek companies where earnings

have risen as retained earnings
(earnings after paying dividends)
have been employed profitably. A
great way to screen for such
companies is by looking at those
EPS growth 5 Yr. >20% 39% that have had consistent earnings
and strong return on equity in the
past.
What counts in the long run is the
increase in "per share value", not
overall growth or size of a
business.
Rising earnings serve as a good
catalyst for stock prices. So seek
companies with strong, consistent,
and expanding earnings (profits).
Promoter Pledged Holding 0% 0% Seek companies with 5/10 year
earnings per share growth greater
than 25% (alongwith safe balance
sheets). To help indicate that
earnings growth is still strong,
EPS growth 10 Yr. >20% 24% look for companies where the last
3-years earnings growth rate is
higher than the last 10-years
growth rate. More important than
the rate of
Growth growth
should beisconsistent
the year
consistency in such
on year. Ignore growth.where
companies So a
exclude companies
sudden spurt with
of sales volatile
in one year is
earnings growththe
confounding in the past,
10 even
yearsif
Sales growth 5 Yr. >20% 13% the "average" growth has been
performance.
high.
Very high growth rates of >50%
are unsustainable.

Look for companies with sustained

operating & net profit margins
over the years - See more at:
Avg. NP margin 5 Yr. >8% 7% http://www.drvijaymalik.com/20
15/01/selecting-top-stocks-to-
buy-part-
10.html#sthash.swZnrKBv.dpuf
 Buffett prefers that firms reinvest
their earnings
Cumulative PATwithin the company,
and CFO are
CFO/PAT 5 Yr. >1 1.2 provided
similar forthat
lastprofitable
10 years
opportunities exist. When
companies have excess cash flow,
Promoter Holding 5 Yr. >=-3% -0.1% Buffett favours shareholder-
Seeks out companies
enhancing maneuverswith such as
conservative
share buybacks. financing,
While we which
do not
equates to a simple, safe balance
screen for this factor, a follow-up
sheet. Such companies
examination of a companytendwould
to
have
revealstrong cash
if it has flows,buyback
a share with little
Debt/Net Profit <=5 0.0 need forplace.
plan in long-term debt. Look for
low debt to equity or low debt-
burden ratios. Also seek
companies
Current Ratiothat have history
measures the of
consistently
liquidity of agenerating
company, or positive
its
Current ratio >1.25 1.07 free cash
ability flows.
to pay short-term
obligations.
Current Ratio = Current Assets /
Current Liabilities
Positive
The ratioCFO is necessary.
is mainly used toIt’s
givegreat
an
Current Cash flow CFO > 0 878 if CFO
idea ofmeets the outflow
the company's for CFI
ability to
and CFF its short-term liabilities
pay back
(debt and payables) with its short-
term assets (cash, inventory,
receivables). The higher the
current&ratio,
BUSINESS the more
INDUSTRY capable the
ANALYSIS
company is of paying its
obligations.
The Company A ratio
mustunder 1
show sales
Comparison with industry Sales growth > suggestshigher
growth that the company
than peers. Ifwould
its
peers peers be unable
sales growthto pay off its to
is similar obligations
peers,
if they
then cameisdue
there at that point.
no Moat
While this shows the company is
Production Company
not in good must have shown
financial health, it does
Increase in production capacity capacity & sales increased market
not necessarily penetration
mean bygo
that it will
and sales volume volume CAGR ~ selling
bankrupt - as there are of
higher volumes its ways
many
Sales CAGR product/service
to access financing - but it is
definitely not a good sign.
A Moat would result in increasing
The current
profits ratio can give
with increasing a sense
sales.
Conversion of sales growth Profit CAGR 5 Yr.~ of the efficiency
Otherwise, salesof a company's
growth is only a
2.9 operating cycle or its ability to or
into profits Sales CAGR 5 Yr. result of unnecessary expansion
turn its product
aggressive into cash.
marketing push, which
Companies
would erodethat have
value in trouble
long term.
getting paid on their receivables or
have long inventory turnover can
run into liquidity problems
The increase in because they are unable to
Creation of value for MCap in last 10 alleviate
Otherwise, their obligations.
company is destroying
shareholders from the profits yrs. > Retained
retained profits in last 10 wealth of shareholders
yrs.

MANAGEMENT ANALYSIS

Background check of There should not be any

promoters & directors
Management succession plans
Web Search information questioning the
integrity of promoters & directors
Good succession Salary being paid to potential
plan should be in successors should be in line with
place their experience

promoter should not have a

Salary of promoters vs. net
profits
No salary increase history of seeking increase in
with declining
remuneration when the profits of
profits/losses
the company declined in past

Green/brownfield
Project execution skills project execution
Promoter shareholding
FII shareholding
Product diversification
Govt. influence interference in
profit making
Labor Problems
Pricing Power
Free Cash Flow (FCF) FCF/CFO >> 0
The company should have shown
good project execution skills with
cost and time overruns.Exclude
capacity increase by mergers &
acquisitions.
> 51% 51% Higher the better
~ 0% 28% the lower the better
OTHER BUSINESS PARAMETERS
The company should be either a
pure play (only one business
segment) or related products. Pure
play model ensures that the
management is specialized in what
Pure play they are doing. Entirely different
unrelated products/services are a
strict NO. An investor should
rather buy stocks of different
companies if she wants such
diversification.
No govt. No cap on profit returns or pricing
of the product.No compulsion to
supply to certain clients.
That's what is called "pricing
power". Companies with moat (as
seen from other screening metrics
as suggested above (like high ROE,
high grow margins, low debt etc.)
are able to adjust prices to
inflation without the risk of losing
significant volume sales.
Margin of Safety
Companies that consistently need
capital to grow their sales and
profits are like bank savings
account, and thus bad for an
investor's long term portfolio. Seek
companies that don't need high
capital investments consistently.
Retained earnings must first go
69% toward maintaining current
operations at competitive levels,
so the lower the amount needed to
maintain current operations, the
better. Here, more than just an
absolute assessment, a
comparison against competitors
will help a lot. Seek companies that
consistently generate positive and
rising free cash flows.
 Review Weight Score
ALYSIS 50% 46.5

10% 10

9% 9

6% 6

5% 5

4% 3

4% 2
 4% 4

3% 3

3% 3

1% 0.50

1% 1.00

ANALYSIS 13% 12

5% 4

2% 2

2% 2

4% 4

LYSIS 23% 16

8% 4

2% 2

4% 4
 2% 1

4% 3

3% 2
AMETERS 10% 8

3% 3

2% 1

2% 2

3% 2

y 4% 2

4% 2
PE PB OTHERS Gross Profit Net Profit Inventory/Sale Receivables/
Margin Margin s Sales

35.9 15.2 5 Yr. Average 11.2% 6.75% 5.7% 1.1%

44.2 19.4 Current 15.3% 9.43% 4.8% 1.3%
44.2 21.3 5 Yr. Max

CASH FLOW CFO CFF/CFO Capex/CFO CFO/PAT

5 Yr. Average 498.0 -49% 31% 115%

Current 877.7 -26% 26% 117%

GROWTH Sales Inventory Receivables PAT

10 YR CAGR 15.3% 7% 16% 24.1%

5 YR CAGR 13.5% 4% 13% 38.8%

Pledged
Salary/PAT Promoter Promoter FII DII
Holding Holding
0.0 50.7% 0.0% 27.6% 0.0%
 Current
Current Assets/Current Leverage Debt/PAT ROE ROCE ROA
Cash/Assets
Liabilities
3% 100% 2.2 0.3 44% 39% 20%
1% 107% 1.8 0.0 44% 44% 24%

CFO/Current CFO/Total
CFO/Sales CFO/Assets Liabilty Debt FCF/CFO CAPEX/FCF

7.78% 22.9% 47.5% 381.9% 69.1% 45%

11.0% 28.3% 63.0% 129072.1% 74.2% 35%

Promoter
EPS BVPS CFO FCF Share Capital Networth
Holding
24.0% 11.9% 29.3% 25.1% 0.1% 12.0%
38.7% 30.3% 28.9% 29.6% -0.1% 0.1% 30.4%
 Company Future Growth RoE
5 Yr. Conser 5 Yr.
Bank Not Bank ● ● Current
CAGR vative Avg.

Current Data Year Ending CY CY-1 CY-2 CY-3 CY-4 CY-5 CAGR
CMP 3483 PE Ratio 44.20 42.46 28.26 27.53 36.85
EPS 66.64 EPS 62.44 51.90 30.84 19.57 15.63 12.16 39%
DPS 20.00 DPS 20.00 16.00 12.00 8.51 8.50 6.50 25%
BVPS 141.95 PB Ratio 19.44 21.33 12.18 10.04 13.23
ROE 44% BVPS 141.9 103.3 71.5 53.6 43.5 37.8 30%

Earnings Yeild 1.91% Payout Ratio 32.03% 30.83% 38.91% 43.47% 54.37%
Dividend Yeild 0.57%
Projections Historical 0 1 2 3 4 5
Bond Yeild 9.00% EPS/BV 66.6 80.0 96.0 115.1 138.2 165.8
Average Data DPS 20.00 31.92 38.31 45.97 55.16 66.20
ROE 5 Yr. 43.6%
Payout 39.92% EPS/BV after 5 years 166
Avg P/E Ratio 35.86 Bank Interest 1 Yr 279
Avg P/B Ratio 15.25 Sum Of dividend paid 258
Value of Stock Projected Price 5946
Discount Rate 8% Final Price 6204
P E/B Valuation 2390
Historical Earnings Growth 4222 Projections Growth Year 0 1 2 3 4 5
Sustainable Earnings Growth 4922 BVPS 141.9 179.5 226.9 286.8 362.6 458.5
2 EPS 62.4 78.9 99.8 126.2 159.5 201.7
2 DPS 24.93 31.51 39.84 50.37 63.68 80.51
1 Earnings after 5 years 201.66
Sum Of dividend paid 290.84
Projected Price 7231.48
Total Gain 7522.32 Return on stock when existing ROE growth rate is extended
 CY-4 CY-3 CY-2 CY-1 CY
NPM 4% 4% 6% 9% 9%
Asset Turnover 2.97 3.32 3.38 2.99 2.60
Equity Multiplier 3.26 2.66 2.19 2.00 1.82
ROE 36% 37% 43% 52% 45%

DuPont analysis is an extended analysis of a company's return on equity. It concludes that a company can earn a high return on equity if:

1. It earns a high net profit margin - Preferred

2. It uses its assets effectively to generate more sales; and/or - Preferred
3. It has a high financial leverage

NPCY - NPCY-4 562

NWCY - NWCY-4 1,183

꓿ 48%
 Piotrosoki Score
Piotroski F Score data CY CY-1 CY-2 CY-3 CY-4
ROA 24.2% 25.1% 19.7% 13.7% 11.0%
Borrowings / Total Assets 0.00 0.00 0.00 0.13 0.26
Current Ratio 1.07 1.00 0.85 1.00 1.09
Gross Margin 15.35% 13.95% 9.69% 7.60% 6.79%
PAT 749.09 622.41 369.83 233.87 186.74
Operating Cash Flow 877.69 515.33 614.51 272.01 210.66
Shares Outstanding 24 24 24 24 24
Asset Turnover 260% 299% 338% 332% 297%
Start 0 Value 67
Intial 30 Pointer 1
Piotroski 1: PAT >0 1 Middle 40 End 132.3333
Piotroski 2: Operating Cash Flow >0 1 End 30
Piotroski 3: Return on Assets higher than last Yr. 0 Max 100
Piotroski 4: Operating Cash Flow higher than PAT 1 A discrete score between 0-9 which reflects nine criteria used to determine the
Piotroski 5: Borrowings/Assets lower than last Yr. 1 strength of a firm's financial position.
Piotroski 6: Current Ratio than last Yr. 1
Piotroski 7: Shares Outstanding not higher than last Yr. 0
Piotroski 8: Gross Margin higher than last Yr. 1
Piotroski 9: Total Income/Total Assets higher than last Yr. 0
Piotroski F Score 6
 Altman Zscore
Altman Zscore = 1.2T1 + 1.4T2 + 3.3T3 + 0.6T4 + 0.999T5.
Input CY T1 = Working Capital/Total Assets 0.03 Altman Score Pointer
Working Capital 94.93 T2 = Reserves & Surplus/Total Assets 0.54 Start 0 Value 100
Total Assets 3096.12 T3 = EBITDA/Total Assets 0.39 Intial 30 Pointer 1
Total Liabilities 3096.12 T4 = Market Value of Equity/Total Assets 13.04 Middle 20 End 99
Reserves & Surplus 1679.02 T5 = Net Sales/Total Assets 2.57 End 50
EBITDA 1219.7 Max 100
Market Value of Equity 40368.27 0
Net Sales 7947.9

Score 6.00

How to read score

Less Chances of Bankruptcy 1.8 to 3
The output of Altman score test gauges a publicly traded company's likelihood of bankruptcy.
Not likely to be Bankrupt 3+
Likely to be Bankrupt 0 to 1.8
Britannia

COPY PASTE DATA FROM ANY FINANCIAL WEBSITE: ONLY FOR THE FIELDS MARKED GREEN BELOW
COMPANY NAME Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12
CONSOLIDATED
Inventory 214.94 301.53 253.63 268.34 311.20 382.28
Debtors 28.61 46.32 49.61 39.49 57.26 52.14
Cash & Bank Balance 48.65 43.77 40.80 23.36 28.75 30.94
Current Assets 426.32 600.71 580.29 570.07 644.96 808.26
Current Liabilities 341.16 370.31 437.54 526.32 622.62 741.48
Working Capital (check) 85.16 230.40 142.75 43.75 22.34 66.78

COPY PASTE DATA FROM ANNUAL REPORTS: ONLY FOR THE FIELDS MARKED ORANGE BELOW
Operating Expenses/Capex Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12
Raw Materials 1434.57 1540.64 1930.00 2184.97 2782.23 3184.54
Employee cost 72.53 85.41 90.01 99.94 119.93 145.87
Advertising and sales promotion 330.49 386.78 464.16 558.28 614.60 725.00
Freight, transport and distribution
Royalty
Power and fuel 24.17 22.78 21.47 22.38 29.55 40.10
Miscellaneous expenses 62.08 79.20 139.58 129.90 103.68 156.08
R&D Cost 24.80
Capex 65.37 66.64 45.15 68.52 190.74
COMPANY NAME Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12
Total Income 2235.43 2638.17 3196.8 3454.29 4272.44 5032.72
Sales 2199.29 2584.1 3112.21 3403.46 4223.52 4974.19
Raw Materials 1434.57 1540.64 1930 2184.97 2782.23 3184.54
Gross Profit 764.72 1043.46 1182.21 1218.49 1441.29 1789.65
EBITDA 152.45 270.95 281.87 166.41 280.4 337.76
Depreciation & Amortisation 25.27 29.08 33.46 37.54 44.59 47.32
EBIT 127.18 241.87 248.41 128.87 235.81 290.44
Interest 8.9 9.73 16.01 8.21 37.75 38.07
PBT 118.28 232.14 232.4 120.66 198.06 252.37
Tax 10.63 41.14 52 4.15 52.77 65.63
PAT 107.65 191 180.4 116.51 145.29 186.74
Dividends 35.83 43 95.56 59.73 77.64 101.53
Market Cap 2,982.09 3,138.81 3,611.95 3,927.66 4,497.68 6,880.61
Current Market Cap 40,368
Current EPS 66.6
Equity 23.89 23.89 23.89 23.89 23.89 23.89
Reserves & Surplus 590.93 731.92 800.65 372.36 427.41 496.15
Networth 614.82 755.81 824.54 396.25 451.3 520.04
Secured Loans
Unsecured Loans
Borrowings 4.78 106.1 25.17 429.61 431.44 434.5
Other Liabilities 341.16 370.31 437.54 526.32 622.62 741.48
Current Asset 426.32 600.71 580.29 570.07 644.96 808.26
Current Liabilities 341.16 370.31 437.54 526.32 622.62 741.48
Total Assets 960.76 1232.22 1287.25 1352.18 1505.36 1696.02
Net Fixed Assets 198.36 240.99 277.84 281.5 303.7 379.09
Capital Work in Progress 16.03 9.69 6.02 9.97 11.7 79.73
Working Capital 85.16 230.4 142.75 43.75 22.34 66.78
Debtors 28.61 46.32 49.61 39.49 57.26 52.14
Inventory 214.94 301.53 253.63 268.34 311.2 382.28
Cash 48.65 43.77 40.8 23.36 28.75 30.94
Net Other Assets
Invested Capital 619.6 861.91 849.71 825.86 882.74 954.54
Capital Employed 619.6 861.91 849.71 825.86 882.74 954.54
Total Liability 345.94 476.41 462.71 955.93 1054.06 1175.98
Total Assets 960.76 1232.22 1287.25 1352.18 1505.36 1696.02

Operating Cash Flow 87 63.13 246.78 235.29 246.32 210.66

Free Cash Flow -2.24 180.14 190.14 177.80 19.92
Cash from Investing Activity 59.1 -130.3 12.3 -109.7 -156.4 -51.6
Cash from Financing Activity -49.1 53.1 -145.8 -184.1 -107.4 -128.6
Tax Rate 9% 18% 22% 3% 27% 26%
NOPAT 115.75 199.01 192.83 124.44 172.98 214.91

MktCap+Dividend 3174.6391 3654.9537 4023.2222 4557.4115 6958.2458

Retained Profit 71.82 148 84.84 56.78 67.65 85.21

Price 250 263 302 329 377 576

BVPS 51 63 69 33 38 44
EPS 9.01 15.99 15.10 9.75 12.16 15.63
DPS 3.00 3.60 8.00 5.00 6.50 8.50
P/E 27.70 16.43 20.02 33.71 30.96 36.85
PEG 0.21 -3.61 -0.95 1.25 1.29
Price/Book 4.85 4.15 4.38 9.91 9.97 13.23
Price/operating CashFlow 34.28 49.72 14.64 16.69 18.26 32.66
Price/Free Cashflow -1401.25 20.05 20.66 25.30 345.41
Price/Sales 1.36 1.21 1.16 1.15 1.06 1.38
EV/EBITDA 19.85 11.35 12.87 21.16 14.60 19.18
Dividend Yield 1.20% 1.37% 2.65% 1.52% 1.73% 1.48%
Enterprise Value 3,026.0 3,076.5 3,627.6 3,521.4 4,095.0 6,477.0

Working Capital/Total Assets 0.09 0.19 0.11 0.03 0.01 0.04

Retained Profits/Total Assets 0.07 0.12 0.07 0.04 0.04 0.05
EBIT/Total Assets 0.13 0.20 0.19 0.10 0.16 0.17
Market Cap/Total Liabilities 8.62 6.59 7.81 4.11 4.27 5.85
Sales/Total Assets 2.29 2.10 2.42 2.52 2.81 2.93
D GREEN BELOW
Mar-13 Mar-14 Mar-15 Mar-16

331.49 366.86 345.74 384.01

77.12 53.69 70.98 106.70
64.48 65.78 186.67 24.80
847.52 860.64 1,248.07 1,487.35
850.53 1,018.32 1,243.11 1,392.42
-3.01 -157.68 4.96 94.93

ANGE BELOW
Mar-13 Mar-14 Mar-15 Mar-16
3528.60 3822.31 4342.32 4629.45
143.50 172.45 190.65 209.21
825.68 903.47 1000.54 1070.08

52.27 65.12 67.42 57.06

173.23 195.38 196.35 222.89

178.38 126.14 48.55 226.62

Mar-13 Mar-14 Mar-15 Mar-16
5670.96 6342.21 7423.44 8046.11
5615.49 6307.39 7175.99 7947.9
3528.6 3822.31 4342.32 4629.45
2086.89 2485.08 2833.67 3318.45
427 611.44 1001.09 1219.7
57.08 63.38 117.27 86.89
369.92 548.06 883.82 1132.81
37.74 5.44 1.21 1.25
332.18 542.62 882.61 1131.56
98.31 172.79 260.2 382.47
233.87 369.83 622.41 749.09
101.66 143.91 191.88 239.95
6,438.14 10,450.45 26,429.61 33,112.85

23.91 23.99 23.99 24.00

617.32 833.75 1215.2 1679.02
641.23 857.74 1239.19 1703.02

215.48 0.45 0.97 0.68

 850.53 1018.32 1243.11 1392.42
847.52 860.64 1248.07 1487.35
850.53 1018.32 1243.11 1392.42
1707.24 1876.51 2483.27 3096.12
451.68 545.66 525.94 639.39
128.44 97.22 48.22 74.5
-3.01 -157.68 4.96 94.93
77.12 53.69 70.98 106.7
331.49 366.86 345.74 384.01
64.48 65.78 186.67 24.8

856.71 858.19 1240.16 1703.7

856.71 858.19 1240.16 1703.7
1066.01 1018.77 1244.08 1393.1
1707.24 1876.51 2483.27 3096.12

272.01 614.51 515.33 877.69

93.63 488.37 466.78 651.07
53.9 -227.3 -384.3 -659.4
-359.1 -325.5 -168.1 -228.3
30% 32% 29% 34%
260.44 373.54 623.26 749.92

6539.6685 10552.114 26573.518 33304.725

132.21 225.92 430.53 509.14

539 871 2204 2760

54 72 103 142
19.57 30.84 51.90 62.44
8.51 12.00 16.00 20.00
27.53 28.26 42.46 44.20
1.09 0.49 0.62 2.18
10.04 12.18 21.33 19.44
23.67 17.01 51.29 37.73
68.76 21.40 56.62 50.86
1.15 1.66 3.68 4.17
14.72 17.20 26.59 27.17
1.58% 1.38% 0.73% 0.72%
6,287.1 10,515.8 26,615.3 33,137.0
Z-Weights
0.00 -0.08 0.00 1.2
0.08 0.12 0.17 1.4
0.22 0.29 0.36 3.3
6.04 10.26 21.24 23.77
3.29 3.36 2.89 1
COMPANY NAME BRITANNIA INDUSTRIES LTD
LATEST VERSION 2.10 PLEA
CURRENT VERSION 2.10

META
Number of shares 12.00
Face Value 2.00
Current Price 3,364.00
Market Capitalization 40,368.27

PROFIT & LOSS

Report Date Mar-07 Mar-08 Mar-09 Mar-10
Sales 2,199.29 2,584.10 3,112.21 3,403.46
Raw Material Cost 1,434.57 1,540.64 1,930.00 2,184.97
Change in Inventory 35.60 -17.05 19.61 21.35
Power and Fuel 24.17 22.78 21.47 22.38
Other Mfr. Exp 194.74 235.36 289.32 313.76
Employee Cost 72.53 85.41 90.01 99.94
Selling and admin 330.49 386.78 464.16 558.28
Other Expenses 62.08 79.20 139.58 129.90
Other Income 36.14 54.07 84.59 50.83
Depreciation 25.27 29.08 33.46 37.54
Interest 8.90 9.73 16.01 8.21
Profit before tax 118.28 232.14 232.40 120.66
Tax 10.63 41.14 52.00 4.15
Net profit 107.65 191.00 180.40 116.51
Dividend Amount 35.83 43.00 95.56 59.73

Quarters
Report Date Mar-14 Jun-14 Sep-14 Dec-14
Sales 1,653.05 1,634.23 1,817.41 1,852.33
Expenses 1,508.41 1,476.45 1,620.96 1,670.21
Other Income 11.42 19.57 178.44 20.52
Depreciation 16.40 24.55 25.10 25.52
Interest 0.38 0.28 0.35 0.32
Profit before tax 139.28 152.52 349.44 176.80
Tax 47.75 44.71 96.40 56.28
Net profit 91.53 107.81 253.04 120.52
Operating Profit 144.64 157.78 196.45 182.12

BALANCE SHEET
Report Date Mar-07 Mar-08 Mar-09 Mar-10
Equity Share Capital 23.89 23.89 23.89 23.89
Reserves 590.93 731.92 800.65 372.36
Borrowings 4.78 106.10 25.17 429.61
Other Liabilities 341.16 370.31 437.54 526.32
Total 960.76 1,232.22 1,287.25 1,352.18
Net Block 198.36 240.99 277.84 281.50
Capital Work in Progress 16.03 9.69 6.02 9.97
Investments 320.05 380.83 423.10 490.64
Other Assets 426.32 600.71 580.29 570.07
Total 960.76 1,232.22 1,287.25 1,352.18
Receivables 28.61 46.32 49.61 39.49
Inventory 214.94 301.53 253.63 268.34
Cash & Bank 48.65 43.77 40.80 23.36
No. of Equity Shares 23,890,163.00 23,890,163.00 23,890,163.00 23,890,163.00
New Bonus Shares
Face value 10.00 10.00 10.00 10.00

CASH FLOW:
Report Date Mar-07 Mar-08 Mar-09 Mar-10
Cash from Operating Activity 87.00 63.13 246.78 235.29
Cash from Investing Activity 59.05 -130.31 12.27 -109.69
Cash from Financing Activity -49.07 53.08 -145.77 -184.05
Net Cash Flow 96.98 -14.10 113.28 -58.45

PRICE: 249.65 262.77 302.38 328.81

DERIVED:
Adjusted Equity Shares in Cr 11.95 11.95 11.95 11.95
 PLEASE DO NOT MAKE ANY CHANGES TO THIS SHEET

Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16

4,223.52 4,974.19 5,615.49 6,307.39 7,175.99 7,947.90
2,782.23 3,184.54 3,528.60 3,822.31 4,342.32 4,629.45
17.89 4.79 10.16 12.58 25.48 7.12
29.55 40.10 52.27 65.12 67.42 57.06
359.94 448.16 530.84 584.62 650.55 644.84
119.93 145.87 143.50 172.45 190.65 209.21
614.60 725.00 825.68 903.47 1,000.54 1,070.08
103.68 156.08 173.23 195.38 196.35 222.89
48.92 58.53 55.47 34.82 247.45 98.21
44.59 47.32 57.08 63.38 117.27 86.89
37.75 38.07 37.74 5.44 1.21 1.25
198.06 252.37 332.18 542.62 882.61 1,131.56
52.77 65.63 98.31 172.79 260.20 382.47
145.29 186.74 233.87 369.83 622.41 749.09
77.64 101.53 101.66 143.91 191.88 239.95

Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16

1,872.02 1,799.82 2,032.93 2,049.74 1,959.31 1,984.91
1,654.81 1,540.65 1,730.55 1,758.28 1,692.29 1,686.37
29.00 22.93 30.01 26.04 34.81 37.59
42.10 20.87 20.60 21.34 24.08 21.76
0.26 0.30 0.30 0.34 0.31 0.29
203.85 260.93 311.49 295.82 277.44 314.08
62.81 90.19 107.81 102.37 85.47 103.69
 141.04 170.74 203.68 193.45 191.97 210.39
217.21 259.17 302.38 291.46 267.02 298.54

Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16

23.89 23.89 23.91 23.99 23.99 24.00
427.41 496.15 617.32 833.75 1,215.20 1,679.02
431.44 434.50 215.48 0.45 0.97 0.68
622.62 741.48 850.53 1,018.32 1,243.11 1,392.42
1,505.36 1,696.02 1,707.24 1,876.51 2,483.27 3,096.12
303.70 379.09 451.68 545.66 525.94 639.39
11.70 79.73 128.44 97.22 48.22 74.50
545.00 428.94 279.60 372.99 661.04 894.88
644.96 808.26 847.52 860.64 1,248.07 1,487.35
1,505.36 1,696.02 1,707.24 1,876.51 2,483.27 3,096.12
57.26 52.14 77.12 53.69 70.98 106.70
311.20 382.28 331.49 366.86 345.74 384.01
28.75 30.94 64.48 65.78 186.67 24.80
### ### ### ### ### ###

2.00 2.00 2.00 2.00 2.00 2.00

Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16

246.32 210.66 272.01 614.51 515.33 877.69
-156.42 -51.56 53.89 -227.34 -384.29 -659.37
-107.39 -128.55 -359.11 -325.46 -168.11 -228.29
-17.49 30.55 -33.21 61.71 -37.07 -9.97

376.53 576.02 538.64 871.41 2,203.83 2,759.96

11.95 11.95 11.95 11.99 11.99 12.00

Company Britannia
Sector FMCG
Business Summary ZZ
Current Price 3482.85

5 Yrs Back Promoter Holding 50.96%

Promoter Holding 50.74%
Pledged Promoter Holding 0%
Promoter Salary/PAT 0
FII Holding 28%
DII Holding 0%

Assumptions Max Current

Conservative furture growth in EPS/BVPS 20%
Discount Rate 8%

Scorecard
Comparison with industry peers 5% 4
Increase in production capacity and sales volume 2% 2
Conversion of sales growth into profits 2% 2
Creation of value for shareholders from the profits retained 4% 4

Background check of promoters & directors 8% 4

Management succession plans 2% 2
Salary of promoters vs. net profits 4% 4
Project execution skills 2% 1
FII shareholding 3% 2

Product diversification 3% 3

Govt. influence 2% 1
Labor Problems 2% 2
Pricing Power 3% 2

Free Cash Flow (FCF) 4% 2

The Company must show sales growth higher than peers. If its sales growth is similar to peers, then there is no Moat
Company must have shown increased market penetration by selling higher volumes of its product/service
A Moat would result in increasing profits with increasing sales. Otherwise, sales growth is only a result of unnecessary expansion
or aggressive marketing push, which would erode value in long term.
Otherwise, company is destroying wealth of shareholders

There should not be any information questioning the integrity of promoters & directors
Salary being paid to potential successors should be in line with their experience
promoter should not have a history of seeking increase in remuneration when the profits of the company declined in past
The company should have shown good project execution skills with cost and time overruns.Exclude capacity increase by mergers &
acquisitions.
Higher the better

The company should be either a pure play (only one business segment) or related products. Pure play model ensures that the
management is specialized in what they are doing. Entirely different unrelated products/services are a strict NO. An investor
should rather buy stocks of different companies if she wants such diversification.
No cap on profit returns or pricing of the product.No compulsion to supply to certain clients.

That's what is called "pricing power". Companies with moat (as seen from other screening metrics as suggested above (like high
ROE, high grow margins, low debt etc.) are able to adjust prices to inflation without the risk of losing significant volume sales.

Companies that consistently need capital to grow their sales and profits are like bank savings account, and thus bad for an
investor's long term portfolio. Seek companies that don't need high capital investments consistently. Retained earnings must first
go toward maintaining current operations at competitive levels, so the lower the amount needed to maintain current operations,
the better. Here, more than just an absolute assessment, a comparison against competitors will help a lot. Seek companies that
consistently generate positive and rising free cash flows.