Valuation

FCFF
2021 2022 2023 2024 2025
EBIT (1-T) 5,4 6,51 7,01 7,42 9,414.
30.9 9.2 1.7 6.2 9
Discount Factor 0.89 0.80 0.71 0.64 0.57
Present Value of Cash Flow 4,856 5,212. 5,013. 4,747. 5,382.5
.28 72 34 92 0
Value of Perpetuity at stable 1,71,122.09
growth
Present Value of perpetuity 97,831.03

Value of enterprise 1,23,043.80

Less: Debt Value 15100.6
Add: Cash and Financial Investments 26922.7
Value of Equity 1,34,865.90
No of shares 4.241143
Value of Share 31,799.42
CMP 58,587.10
Potential Upside/Downside 46%

FCFE
2021 2022 2023 2024 2025
EBIT (1-T) 4,807.8 5,274. 6,294. 7,187. 8,538.
4 1 8 1
Discount Factor 0.89 0.80 0.71 0.64 0.57
Present Value of Cash Flow 4,29 4,217.4 4,500.2 4,595.5 4,881.2
9.15 0 5 0 4
Value of Perpetuity at stable 1,55,185.7
growth 6
Present Value of perpetuity 88,720.1
8

Value of enterprise 1,11,213.72

Add: Cash and Financial 26922.7
Investments
Value of Equity 1,38,136.42
No of shares 4.241143
Value of Share 32,570.56
CMP 58,587.10
Potential Upside/Downside 44%
APV
2021 2022 2023 2024 2025
EBIT (1-T) 4,80 5,274 6,294 7,187 8,538
7.8 .4 .1 .8 .1
Discount Factor 0.89 0.80 0.71 0.64 0.57
Present Value of Cash Flow 4,299. 4,217. 4,500. 4,595. 4,881.
15 40 25 50 24
Value of Perpetuity at stable 1,55,185.7
growth
Present Value of perpetuity 88,720.1
8

Interest 2,364. 2,433.4 2,495.3 2,530.3 2,534.5

58 2 6 4 7
Tax Shield 733. 754. 773. 784. 785.
02 36 56 41 72
Terminal Value 14,280.9
9
Discount Factor 0.89 0.80 0.71 0.64 0.57
PV of Tax Shield 655. 603. 553. 501. 449.
47 18 09 51 20
PV of Terminal Value of Tax 8,164.4
Shield 8
Value of Tax Shield 10,926.
93

Value of enterprise 1,11,213.72

Add: Cash and Financial 26922.7
Investments
Add: PV of Tax Sheild 10,926.93
Value of Equity 1,49,063.35
No of shares 4.241143
Value of Share 35,146.98
CMP 58,587.10
Potential Upside/Downside 40%

CCF
2021 2022 2023 2024 2025
NI 14,020.9 16,025.8 17,579.2 19,099.2 22,275.1
Less: Net Capex 9,89 11,196. 12,205. 13,182. 14,236
8.3 3 6 1 .7
Less: Change in Non-cash 32 (10. 83 237 37
WC 3.4 5) .8 .0 2.7
 FCFF 3,799.2 4,840.0 5,289.7 5,680.1 7,665.8

2021 2022 2023 2024 2025

Projected Cash Flow 3,79 4,840 5,289 5,680 7,665
9.2 .0 .7 .1 .8
Discount Factor 0.89 0.80 0.71 0.64 0.57
Present Value of Cash Flow 3,397. 3,870.0 3,782.1 3,631.5 4,382.
21 2 3 3 55
Value of Perpetuity at stable 1,39,331.1
growth 1
Present Value of perpetuity 79,656.0
3

Value of enterprise 98,719.45

Less: Debt Value 15100.6
Add: Cash and Financial 26922.7
Investments
Value of Equity 1,10,541.55
No of shares 4.241143
Value of Share 26,064.09
CMP 58,587.10
Potential Upside/Downside 56%

Relative Valuation
Summa TEV/Total TEV/EBIT TEV/EBI TEV/Total TEV/EBIT TEV/EBI
ry Revenues LTM DA LTM - T LTM - Revenues LTM DA LTM - T LTM -
Statistic - Latest Latest Latest - Latest Latest Latest
s
High 6.3x 23.0x 35.9x 1025857 562833 526696
Low 0.8x 5.0x 6.7x 130268 122355 98297
Mean 1.8x 9.8x 21.4x 293102 239816 313964
Median 1.1x 9.2x 19.4x 179118 225133 284621
Football Field

Football Field

CCF

APV

FCFE

FCFF

18000 23000 28000 33000 38000 43000

Conclusion
From all the above valuation techniques, we can see that the share is highly overvalued.
Also, it should be noticed that the valuation was figures were highly affected by the COVID
situation as the valuation figures before COVID period was 15 to 20 percent more in
different methods calculations.
The result obtained by our valuation methodology is same in line as presented by different
valuation and brokerage houses like Thomson Reuters and others. We can also estimate
that the valuation may increase significantly after the pandemic situation becomes stable,
so it will be a right time to HOLD the share as it may increase in future.