Munjal Gabriel Minda Sona Koyo Talbros

Normalized measures - Revenues and profit

Adj. EBITDA 1266 1,165.0 1,544.0 2158.0 403 EBITDA
Market value and assets - Minority Int + net income from asso.
EV 5,719.2 11035 9950 12,288.6 2,534.1 Mcap+ debt + MI - (cash+non.op.assets)
Growth factors
Sales growth 6.2% 10.5% 23.6% 6.5% 4.9% Lowest
EBITDA 11.8% 7.0% 16.5% 10.3% 2.5% Lowest
Profitability Median margins
EBITDA margin 6.7% 8.1% 6.9% 12.1% 11.4% Mostly higher
Op. profit margin 4.9% 5.7% 3.2% 7.4% 8.0% Mostly higher
ROIC 21.1% 14.6% 7.9% 13.6% 10.38% Middle
Ratios Median ratios
EV/EBITDA 4.52 9.47 6.44 5.69 6.07
Estimation value based on trading multiples
FY'16 (E) FY'17 (E) EV based 16E Add other assets
EBITDA 540.00 700.00 3,277.5 192.00 3,469.46
Munjal Showa Limited- Financials
INR Mn except EPS FY'11 FY'12 FY'13 FY'14 FY'15 Growth
Revenue
Net sales 12893 15568 15814 15979 16429 6.2%
Other income 23 16 35 61 81
Total revenue 12916 15584 15849 16040 16510
Expenses
Cost of raw materials consumed 9698 11636 11765 11943 12144
Purchases of stock in trade 0 0 0 0 0
Change in inventories of finished
goods, work in progress and stock in 7 -46 22 -55 -25
trade
Employee benefit expense 547 665 766 880 924
Other expenses 1831 2086 2208 2158 2120
Operating expenses 12083 14341 14761 14926 15163 1347

EBITDA 810 1227 1053 1053 1266 11.8%

Depreciation & amortization 262 272 276 284 286

EBIT 571 971 812 830 1061 16.8%
Finance costs 91 112 72 27 4
Profit before tax & exceptional items 480 859 740 803 1057
Exceptional items 0 0 -61 0 7
Tax expense 139 187 72 101 307
PAT 341 672 607 702 757 22.1%
Earning per share (EPS) face value 2 8.5 16.7 15.1 17.4 18.9

Estimated Financials
Growth
Adjusted EBITDA = EBITDA 810 1227 1053 1053 1266 11.8%
Adjusted EBIT 548 955 777 769 980 15.6%
Adjusted PAT 343 632 529 557 732 20.9%
EBITDA margin 6.3% 7.9% 6.7% 6.6% 7.7% 6.7%
EBIT margin 4.3% 6.1% 4.9% 4.8% 6.0% 4.9%
PAT margin 2.7% 4.1% 3.3% 3.5% 4.5% 3.5%
ROE 27.6% 18.9% 16.9% 19.1% 19.0%
ROIC 25.8% 20.4% 19.2% 21.8% 21.1%

Particulars (Rs Mn except EPS) FY'16 (E) FY'17 (E)

Net sales 18154 20283
EBITDA 1422 1629
Net Profit for the year 832 969
Earning per share (EPS) 20.8 24.3

Workings
Current market price of share 160.8
Common shares outstanding 39,995,000
Market value of equity (Rs 6431 Mn) 6431.196
Net debt (Rs Mn) -695
Enterprise value (Rs Mn) 5719
Enterprise value/Sales (x) 0.32
Enterprise value/EBITDA (x) 4
Price/EPS (x) 7.7

Document Classification: KPMG Confidential

Munjal Showa Limited- Balance Sheet

INR Mn FY'11 FY'12 FY'13 FY'14 FY'15

Equities & liabilities
Shareholders funds
Share capital 79 79 79 79 79
Reserves & Surplus 1949 2482 2948 3481 4027
Shareholders funds 2028 2561 3027 3560 4106
Non current liabilities
Long term borrowings 519 211 0 0 0
Deferred tax liabilities (net) 139 142 142 118 85
Long term provisions 6 6 7 15 25
Other long term liabilities 0 0 53 0 0
Non current liabilities 664 359 202 133 110

Current liabilities

Short term borrowings 54 200 0 0 0

Trade payables 1637 1686 1508 1656 1552
Other current liabilities 378 393 391 158 106
Short term provisions 188 182 191 234 252
Current liabilities 2257 2461 2090 2048 1910
Total liabilities & equity 4949 5381 5319 5741 6126
Assets
Non current assets
Fixed assets 0 0 0 0 0
Tangible assets 2513 2427 2439 2309 2092
Intangible assets 32 22 20 19 18
Capital work in progress 85 112 74 5 17
Intangible assets under development 0 0 0 0 0
Non current investments 0 0 0 0 0
Long term loans & Advances 35 34 382 440 394
Other non current assets 8 2 0 1 1
Non current assets 2673 2597 2915 2774 2522
Current assets
Current investments 0 30 200 300 680
Inventories 367 491 399 493 665
Trade receivables 1429 1759 1416 1768 2033
Cash & bank balances 31 47 179 155 15
Short term loans & Advances 369 371 186 208 174
Other current assets 80 86 24 44 38
Current assets 2276 2784 2404 2968 3605
Total assets 4949 5381 5319 5742 6127
Invested capital 2630 2931 2776.1 3233.6 3504.7
Adj. equity value 2028 2561 3027 3560 4106

Document Classification: KPMG Confidential

Gabriel India Limited- Financials

Gabriel India Limited- Income Statement

INR Mn except EPS FY'11 FY'12 FY'13 FY'14 FY'15 Growth

Revenue
Net sales 9699 11282 12053 12866 14440 10.5%
Other income 93 74 40 56 43
Total revenue 9792 11356 12093 12922 14483
Expenses
Cost of raw materials consumed 6949 8069 8689 9321 10319
Purchases of stock in trade 18 28 41 44 100
Change in inventories of finished
goods, work in progress and stock in -61 -24 -86 -99 12
trade
Employee benefit expense 700 794 910 982 1075
Other expenses 1204 1495 1672 1713 1769
Operating expenses 8810 10362 11226 11961 13275

EBITDA 889 920 827 905 1165 7.0%

Depreciation & amortization 219 276 272 270 311

Earnings before interest & taxes (EBIT) 763 718 595 691 897 4.1%
Finance costs 171 170 122 89 55
Profit before tax & exceptional items 592 548 473 602 842
Exceptional items -17 77 -59 -42 -6
Tax expense 122 93 30 131 235
Net Profit for the year 453 532 384 429 601 7.3%
Earning per share (EPS) face value 1 6.3 7.4 2.6 2.9 4.2

Estimated Financials
Growth
Adjusted EBITDA = EBITDA 889 920 827 905 1165 7.0%
Adjusted EBIT = EBITDA - DA 670 644 555 635 854 6.3%
Adjusted PAT = (EBIT - Fin.costs) x 75% 374 356 325 410 599 12.5%
EBITDA margin = EBITDA/ net sales 9.2% 8.2% 6.9% 7.0% 8.1% 8.1%
EBIT margin 6.9% 5.7% 4.6% 4.9% 5.9% 5.7%
PAT margin 3.9% 3.2% 2.7% 3.2% 4.1% 3.2%
ROE 17.0% 13.3% 15.1% 19.6% 16.1%

ROIC 15.0% 12.6% 14.3% 18.8% 14.6%

Particulars (Rs Mn except EPS) FY'16 (E) FY'17 (E)

Net sales 17659 20211
EBITDA 1462 1782
Net Profit for the year 865 1091
Earning per share (EPS) 6 7.6

Workings
Current market price of share 76.9
Common shares outstanding 143,643,940
Market value of equity (Rs 11046 Mn) 11046.21899
Net debt (Rs Mn) 20
Enterprise value (Rs Mn) 11035
Enterprise value/Sales (x) 0.62
Enterprise value/EBITDA (x) 8

Document Classification: KPMG Confidential

Price/EPS (x) 12.8

Document Classification: KPMG Confidential

Gabriel India Limited- Balance Sheet

INR Mn FY'11 FY'12 FY'13 FY'14 FY'15

Equities & liabilities
Shareholders funds
Share capital 72 72 144 144 144
Reserves & surplus 1793 2240 2424 2708 3111
Shareholders funds 1865 2312 2568 2852 3255
Non current liabilities
Long term borrowings 562 246 164 96 58
Deferred tax liabilities (net) 157 133 111 96 105
Long term provisions 53 30 57 41 93
Other long term liabilities 36
Non current liabilities 772 409 368 233 256

Current liabilities

Short term borrowings 678 662 497 469

Trade payables 1467 1411 1391 1578 1907
Other current liabilities 401 468 557 454 411
Short term provisions 115 118 195 291 335
Current liabilities 2661 2659 2640 2792 2653
Total liabilities & equity 5298 5380 5576 5877 6164
Assets
Non current assets
Fixed assets
Tangible assets 2024 2059 2498 2635 2655
Intangible assets 76 79 56 36 21
Capital work in progress 108 37 64 125 31
Intangible assets under development
Non current investments 133 0.2 0.2 0.2 0.2
Long term loans & advances 414 377 298 232 226
Other non current assets 24
Non current assets 2755 2552.2 2916 3028 2957
Current assets
Current investments

Inventories 1017 1235 1112 1168 1121

Trade receivables 943 1244 1215 1360 1723
Cash & bank balances 39 56 74 48 38
Short term loans & Advances 382 267 254 273 321
Other current assets 162 26 5 0.2 4
Current assets 2543 2828 2660 2849.2 3207
Total assets 5298 5380.2 5576 5877 6164
Invested capital 3168 3290.2 3295.2 3381.4 3442.2
Adj. equity value 1865 2312 2568 2852 3255

Document Classification: KPMG Confidential

Minda Industries Limited- Income Statement Growth
INR Mn except EPS FY'11 FY'12 FY'13 FY'14 FY'15
Revenue
Net sales 9542 11792 13404 17061 22266 23.6%
Other income 146 163 109 168 229
Total revenue 9688 11955 13513 17229 22495
Expenses
Cost of raw materials consumed 6446 8046 9493 9163 12357
Purchases of stock in trade 25 2634 2495
Change in inventories of finished good -95 82 -112 -86 -75
Employee benefit expense 1014 1343 1439 2248 2878
Other expenses 1339 1562 1624 2323 3067

Operating expenses 8704 11033 12469 16282 20722

EBITDA 838 759 935 779 1544 16.5%

Depn 338 402 463 591 835
EBIT 646 520 581 356 938 9.8%
Finance costs 167 198 191 242 250
Profit before tax & exceptional items 479 322 390 114 688
Exceptional items -76 2 15 159
Tax expense 122 3 109 76 194
Net profit 357 243 283 53 653 16.3%
(-) Share of profit transferred to minority 2 6 10 3
(+) Share of profit/loss of associate 42 -7 8 24

Adjusted PAT 357 283 270 51 674

Earning per share (EPS) face value 10 26.1 17.7 17.7 4.5 42.8

Estimated Financials Growth

Adjusted EBITDA = EBITDA 838 759 935 779 1544 16.5%
Adjusted EBIT = EBITDA - DA 500 357 472 188 709 9.1%
Adjusted PAT = (EBIT - Fin.costs) x 75% 250 159 198 -43 365 10.0%

EBITDA margin = EBITDA/ net sales 8.8% 6.4% 7.0% 4.6% 6.9% 6.9%

EBIT margin 5.2% 3.0% 3.5% 1.1% 3.2% 3.2%

PAT margin 2.6% 1.4% 1.5% -0.2% 1.6% 1.5%
ROE 6.6% 6.6% -1.4% 10.8% 6.6%
ROIC 7.3% 8.5% 2.8% 9.3% 7.9%

Estimated Financials
Particulars (Rs Mn except EPS) FY'16 (E) FY'17 (E)
Net sales 23546 27031
EBITDA 1919 2342
Net Profit for the year 742 1086
Earning per share (EPS) 46.9 65.8

Workings
Current market price of share 507
Common shares outstanding (mn.) 15.87
Market value of equity (Rs 8042 Mn) 8042
Net debt (Rs Mn) 1787.0
Enterprise value (Rs Mn) 9950.0
Enterprise value/Sales 0.42
Enterprise value/EBITDA 5.18
Price/EPS 10.80

Document Classification: KPMG Confidential

Minda Industries Limited- Balance sheet
INR Mn FY'11 FY'12 FY'13 FY'14 FY'15
Equities & liabilities
Shareholders funds
Share capital 565 194 194 194 194
Reserves & surplus 1422 2668 2895 2920 3459
Minority interest 115 123 138 213
Deferred revenue income 8
Shareholders funds 1987 2977 3212 3260 3866
Non current liabilities
Long term borrowings 552 661 887 1376 972
Deferred tax liabilities (net) 103 5

Long term provisions 74 157 176 237 264

Other long term liabilities 2 6 74 19 30

Non current liabilities 731 829 1137 1632 1266
Current liabilities
Short term borrowings 950 938 808 1402 1115
Trade payables 1399 1773 2164 2473 2669
Other current liabilities 448 551 633 935 894
Short term provisions 79 99 111 111 157
Current liabilities 2876 3361 3716 4921 4835
Total liabilities 5594 7167 8065 9813 9967
Assets
Non current assets
Fixed assets
Tangible assets 2405 2654 3116 3928 4027
Intangible assets 98 92 69 77 85
Capital work in progress 62 47 416 218 89
Intangible assets under development 7 4 6 1 3
Non current investments 189 217 218 244 263
Deferred tax assets 14 16 2
Long term loans & advances 133 216 224 206 186

Other non current assets 17 15 45 86 119

Non current assets 2911 3245 4108 4775.7 4774
Current assets
Current investments 11 230 20
Inventories 837 1963 895 1246 1406
Trade receivables 1307 808 2173 2610 2895
Cash & bank balances 229 666 385 278 280
Short term loans & advances 301 446 466 598 544
Other current assets 9 28 38 75 48
Current assets 2683 3922 3957 5037 5193
Total assets 5594 7167 8065 9812.7 9967
Invested capital 3370 4016 4350 5567 5855
Adj. equity value 1987 2862 3089 3122 3653

Document Classification: KPMG Confidential

Sona Koyo Steering Systems Limited- Financials

Sona Koyo Steering Systems Limited- Income Statement

INR Mn Except EPS FY'11 FY'12 FY'13 FY'14 FY'15 Growth

Revenue
Net sales 12067 14212 14600 14923 15529 6.5%
Other income 33 31 93 397 48
Total revenue 12100 14243 14693 15320 15577
Expenses
Cost of raw materials consumed 8575 9841 10042 10054 10159
Purchases of stock in trade 95 109 269 300 197
Change in inventories of finished
goods, work in progress and stock in -115 46 -65 -93 -22
trade
Employee benefit expense 887 1132 1258 1342 1457
Other expenses 1166 1336 1449 1535 1580
Operating expenses 10608 12464 12953 13138 13371

EBITDA 1459 1748 1647 1785 2158 10.3%

Depreciation & amortization 377 457 585 679 1037

EBIT 1115 1322 1155 1503 1169 1.2%
Finance costs 437 459 411 392 311
Profit before tax & exceptional items 678 863 744 1111 858
Exceptional items 58
Tax expense 245 258 263 247 267
Net Profit 491 605 481 864 591 4.7%
(-) Share of profit transferred to minority 45 115 98 177 204
(+) Share of profit/loss of associate -7 -6
Net Profit for the year 446 490 383 680 381

Estimated Financials Growth

Adjusted EBITDA = EBITDA 1459 1748 1647 1785 2158 10.3%
Adjusted EBIT = EBITDA - DA 1082 1291 1062 1106 1121 0.9%
Adjusted PAT = (EBIT - Fin.costs) x 75% 439 509 390 352 398 -2.4%
EBITDA margin = EBITDA/ net sales 12.1% 12.3% 11.3% 12.0% 13.9% 12.1%
EBIT margin 9.0% 9.1% 7.3% 7.4% 7.2% 7.4%

PAT margin 3.6% 3.6% 2.7% 2.4% 2.6% 2.7%

ROE 22.9% 15.6% 12.3% 12.6% 14.1%

ROIC 17.5% 13.0% 13.2% 14.0% 13.6%

Estimated Financials
Particulars (INR Mn except EPS) FY'16 (E) FY'17 (E) 968.25
Net Revenue from operations 17406 18873 0.1748
EBITDA 2322 2617
Net Profit for the year 702 666
Earning per share (EPS) 3.5 3.4

Workings
Current market price of share 50.4
Common shares outstanding (mn.) 198.7
Market value of equity (Rs 10017 Mn) 10,016.6
Net debt (Rs Mn) 2,904.0
Enterprise value (Rs Mn) 12,288.6
Enterprise value/Sales (x) 0.7

Document Classification: KPMG Confidential

Enterprise value/EBITDA (x) 5.3
Price/EPS (x) 14.4

Document Classification: KPMG Confidential

Sona Koyo steering systems Limited- Balance sheet

INR Mn FY'11 FY'12 FY'13 FY'14 FY'15

Equities & liabilities
Shareholders funds
Share capital 198 198 198 198 198
Reserves & Surplus 1857 2193 2423 2890 3035
Minority interest 382 508 607 785 985
Shareholders funds 2437 2899 3228 3873 4218
Non current liabilities
Long term borrowings 2547 2623 2403 1695 1674
Deferred tax liabilities (net) 353 397 517 525 417
Long term provisions 40 44 54 61 68
Other long term liabilities 3 0.1 3 3 2

Non Current liabilities 2943 3064.1 2977 2284 2161

Current liabilities
Short term borrowings 322 352 703 653 424
Trade payables 1937 2033 1935 1951 1926
Other current liabilities 809 995 1442 1398 1202
Short term provisions 196 185 189 227 199
Current liabilities 3264 3565 4269 4229 3751
Total liabilities 8644 9528.1 10474 10386 10130
Assets
Non current assets
Fixed assets
Tangible assets 4541 5184 5783 5715 5469
Intangible assets 142 264 286 302 372
Capital work in progress 146 398 254 632 490
Intangible assets under development 93 62 65 121 142
Goodwill on consolidation 11 15 24
Non current investments 295 295 295 9 12
Long term loans & advances 214 226 137 103 72
Other non current assets 3 3 4 4 4
Non current assets 5445 6447 6848 6886 6561

Current assets
Current investments
Inventories 752 607 814 935 1004
Trade receivables 1617 1752 2274 2082 1892
Cash & bank balances 119 123 25 28 179
Short term loans & advances 550 361 291 361 322
Other current assets 161 238 222 94 172
Current assets 3199 3081 3626 3500 3569
Total assets 8644 9528 10474 10386 10130
Invested capital 5344 5732 6564 6029 5992
Adj. equity value 2055 2391 2621 3088 3233

Document Classification: KPMG Confidential

Talbros Automotive Components Limited (Target Company)- Financials
INR Mn except EPS FY'11 FY'12 FY'13 FY'14 FY'15 Growth
Revenue
Net sales 3208 3754 3447 3659 3887 4.9%
Other income 50 39 62 71 96
Total revenue 3258 3793 3509 3730 3983
Expenses
Cost of raw materials consumed 1843 2163 1988 1948 2115
Purchases of stock in trade 16 22 139 181
Change in inventories of finished
goods, work in progress and stock in -106 -63 -78 2 -142
trade
Employee benefit expense 369 407 389 423 494
Other expenses 737 803 734 789 836
Operating expenses 2843 3326 3055 3301 3484

EBITDA 365 428 392 358 403 2.5%

Depreciation & amortization 108 112 103 104 99

EBIT 307 355 351 325 400 6.8%
Finance costs 166 199 205 190 187
Profit before tax & exceptional items 141 156 146 135 213
Exceptional items 88 -18
Tax expense 14 11 7 27 51
Net Profit for the year 127 145 139 196 144 3.2%
Earning per share (EPS) face value 10 10.2 11.6 11.2 15.6 11.4

Estimated Financials
Growth
Adjusted EBITDA = EBITDA 365 428 392 358 403 2.5%
Adjusted EBIT 257 316 289 254 304 4.3%
Adjusted PAT 68 88 63 48 88 6.5%
EBITDA margin 11.4% 11.4% 11.4% 9.8% 10.4% 11.4%
EBIT margin 8.0% 8.4% 8.4% 6.9% 7.8% 8.0%
PAT margin 2.1% 2.3% 1.8% 1.3% 2.3% 2.1%
ROE 9.5% 6.2% 4.3% 7.1% 6.7%

ROIC 12.4% 10.7% 9.0% 10.1% 10.4%

Particulars (Rs Mn except EPS) FY'16 (E) FY'17 (E)

Net sales 4600 5460
EBITDA 540 700
Net Profit for the year 210 310
Earning per share (EPS) 17 25.1

Workings
Current market price of share 119
Common shares outstanding 12.35
Market value of equity (Rs 1469 Mn) 1469.12997
Net debt (Rs Mn) 1065
Enterprise value (Rs Mn) 2534
Enterprise value/Sales (x) 0.55
Enterprise value/EBITDA (x) 5

Document Classification: KPMG Confidential

Price/EPS (x) 7.0

Document Classification: KPMG Confidential

Talbros Automotive Components Limited- Balance sheet

INR Mn FY'11 FY'12 FY'13 FY'14 FY'15

Equities & liabilities
Shareholders funds
Share capital 123 123 123 123 123
Reserves & surplus 749 847 935 1069 1148
Shareholders funds 872 970 1058 1192 1271
Non Current liabilities
Long term borrowings 343 327 257 309 317
Deferred tax liabilities (net) 71 76 65 52 47
Long term provisions 39 32 39 40 41
Other long term liabilities 12 6 3
Non current laibilities 453 435 373 407 408

Current liabilities

Short term borrowings 588 678 758 772 851

Trade payables 778 825 754 749 923
Other current liabilities 274 288 332 310 357
Short term provisions 28 19 27 28 25
Current liabilities 1668 1810 1871 1859 2156
Total liabilities 2993 3215 3302 3458 3835
Assets
Non current assets
Fixed assets
Tangible assets 1046 1063 1013 1038 1110
Intangible assets 14 11 39 40 35
Capital work in progress 21 5 38 103 85
Intangible assets under development 1 4 4
Non current investments 6 25 29 42 57
Long term loans & Advances 67 87 115 114 127
Other non current assets 1 2 3 5
Non current assets 1154 1193 1240 1340 1423
Current assets
Current investments 9

Inventories 856 989 1065 1068 1275

Trade receivables 658 716 644 696 738
Cash & bank balances 57 76 89 81 103
Short term loans & advances 251 235 255 264 287
Other current assets 8 6 9 9 9
Current assets 1839 2022 2062 2118 2412
Total assets 2993 3215 3302 3458 3835
Invested capital 1826 2001 2058 2187 2338
Adj. equity value 872 970 1058 1192 1271

Non-operating assets 87 82 131 184 192

Document Classification: KPMG Confidential

Target firm Stake Bidder Deal valueEV (mn.) Year 1 Revenue EV/Rev. EV/ebit PE Control premium
Ending Date (mn.) 1-day 1-month
Kar Mobiles 60.4% Rane Engine Valve 456 589.2 31-Mar-14 1201.7 0.49 7.01 24.47 48.9% 40.8%
JMT Auto 52.6% Amtek Auto 2439 3453.2 31-Mar-13 3350.2 1.03 6.17 18.07 34.4% 51.0%
Mag Engineering Private 100.0% Sandhar Technologies 700 700 31-Mar-12 652.3 1.07 4.78 NA
Shanthi Gears 70.1% Tube Investments of India 4081 6058.2 31-Mar-12 1730.1 3.50 8.74 23.54 34.9% 52.0%
Trinity India 78.0% Ring Plus Aqua Ltd. 741 893.2 31-Mar-11 843.9 1.06 9.88 117.81
Igarashi Motors India 51.9% Agile Electric Drives Tech. 776 1523.4 31-Mar-10 1592.4 0.96 8.12 38.73 69.2% -13.4%
Automotive Stamping & Assemb. 37.5% Tata Autocomp Systems -5.3% -6.2%
Amtek India 60.2% Amtek Auto 9402 13188.8 30-Jun-08 13189.1 1.00 2.56 6.15 -23.0% -28.2%
Ahmednagar Forgings 47.4% Amtek Auto 1900 5025.5 30-Jun-08 6610.6 0.76 4.5 6.66 18.6% 23.0%
Average 1.23 6.47 33.63 51.0%
Median 1.02 6.59 23.54 Kar, JMT,
Only for Kar, JMT, Shanti 1.03 7.01 23.54 Shanti
Publicly traded firms