Years -> 1 2 3

2019 2020E 2021E 2022E

Revenue (Growth @5%) 1200 1197.0 1256.9 1319.7
Wages (incl. MD salary) 350 350 350
Material 300 300 300
Other Operating Expense 180 180 180
Depreciation 70.00 70.00 70.00
Depreciation Expense on Leased Asset 87.40 87.40 87.40
EBIT 209.6 269.5 332.3
Tax rate at 25% 25% 25% 25%
NOPAT 157.20 202.09 249.22
Less: Reinvestment at 20% 31.4 40.4 49.8
Free Cash Flow 125.76 161.67 199.38

WACC 30.04%
Present Value 96.7 95.6 90.7
NPV of Unlevered Firm 900.79
NPV of Tax Benefits 25.97
Firm Value as per APV 926.77
Control Premium 30%
Final Value 1204.8

Years -> 1 2 3 4
Lease payments 120.00 120.00 120.00 120.00
Cost of Debt 0.05
PV 114.01 108.33 102.92 97.79
Total PV of lease 1048.75

Depreciation 87.40
Interset Expense 32.60
Interest*Tax 8.15 8.15 8.15 8.15
PV 6.27 4.82 3.71 2.85
NPV of Tax Benefits 25.97
 4 5 6 7 8 9 10 11 12
2023E 2024E 2025E 2026E 2027E 2028E 2029E 2029E 2029E
1385.7 1455.0 1527.7 1604.1 1684.3 1768.5 1856.9 1949.8 2047.3
350 350 350 350 350 350 350 350 350
300 300 300 300 300 200 200 200 200
180 180 180 180 180 180 180 180 180
70.00 70.00 70.00 70.00 70.00 70.00 70.00 70.00 70.00
87.40 87.40 87.40 87.40 87.40 87.40 87.40 87.40 87.40
398.3 467.6 540.3 616.7 696.9 881.1 969.5 1062.4 1159.9
25% 25% 25% 25% 25% 25% 25% 25% 25%
298.71 350.67 405.23 462.52 522.68 660.84 727.16 796.79 869.91
59.7 70.1 81.0 92.5 104.5 132.2 145.4 159.4 174.0
238.97 280.54 324.19 370.02 418.14 528.67 581.73 637.43 695.93

83.6 75.4 67.0 58.8 51.1 49.7 42.1 35.4 29.8

5 6 7 8 9 10 11 12
120.00 120.00 120.00 120.00 120.00 120.00 120.00 120.00

92.91 88.28 83.87 79.69 75.72 71.94 68.35 64.94

0.00

8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15

2.19 1.69 1.30 1.00 0.77 0.59 0.45 0.35
 12

Terminal Value
2918.2

124.8
 Firm P/E Ratio
Star Network 22.09
Balaji 36
ND 14.1
Sony 26.7
PNC 19.12
Reliance Entertainment 23.33
Sahara 22.91
Cinevista 97.6
UTV 26

Avg. P/E with all firms 31.983

Avg. P/E w/o ND & Cinev 25.16
 Year -> 1 2 3
2017 2018 F 2019 F 2020 F
Revenue 40.00 54.00 72.90 98.42
Revenue Growth Rate 35% 35% 35%
EBIT (margin @30%) 12.00 16.20 21.87 29.52
NOPAT (EBIT*(1-Tax rate)) 11.34 15.31 20.67
Less: Working capital - - -
Less: Capex minus Depreciation 5.00 6.00 7.20 8.64

Year -> 1 2 3
FCFF 5.34 8.11 12.03
Present Value 4.71 6.31 8.25

Levered Beta of Industry 1.15 Cost of debt Post tax cost of debt
Average D/E 25% 10.00% 7.00%
Tax rate 30%
Unlevered Beta 0.979 Equity in Firm 1
Debt in Firm 0.25
Risk Free Rate 7.00%
Equity Risk Premium 8.00% Weight of Debt in Firm 20%
Market Risk Premium 6.96% Weight of Equity in Firm 80%
Cost of Equity till 2021 13.81% WACC 13.40%
Cost of equity Post 2021 15.00%
 All values in Rs. Millions
4 5 6 7
2021 F 2022 F 2023 F 2024 F
132.86 152.79 175.71 202.06
35% 15% 15% 15%
39.86 45.84 52.71 60.62
27.90 32.09 36.90 42.43
- - - -
10.37 0 0 0

4 5 6 7 7
17.53 32.09 36.90 42.43 530.4175608867<- Terminal Value
10.60 17.11 17.35 237.55 301.87<- Total Value of Enterprise

x cost of debt
minal Value
lue of Enterprise