Year 1 2 3 4 5

Sales Growth Rate (%) 18% 16% 12% 10% 8%

Operating Profit Margin (%) 13% 12% 11% 10% 9%

CAPEX 60%
Working Capital 25%
SGP_Growth Rate 6%
Depreciation 10%
WACC 9.97%
Tax 10%

Current Sales 600 mn

Year 0 1 2 3 4 5
Sales ₹ 600.00 ₹ 708.00 ₹ 821.28 ₹ 919.83 ₹ 1,011.82 ₹ 1,092.76
Operating Profit ₹ 92.04 ₹ 98.55 ₹ 101.18 ₹ 101.18 ₹ 98.35

CAPEX ₹ 64.80 ₹ 67.97 ₹ 59.13 ₹ 55.19 ₹ 48.57

Working Capital ₹ 27.00 ₹ 28.32 ₹ 24.64 ₹ 23.00 ₹ 20.24
Depreciation ₹ 6.48 ₹ 6.80 ₹ 5.91 ₹ 5.52 ₹ 4.86

FCFF 1 2 3 4 5
Operating Profit (1-t) ₹ 82.84 ₹ 88.70 ₹ 91.06 ₹ 91.06 ₹ 88.51
(+) Depreciation ₹ 6.48 ₹ 6.80 ₹ 5.91 ₹ 5.52 ₹ 4.86
(-) Capex -₹ 64.80 -₹ 67.97 -₹ 59.13 -₹ 55.19 -₹ 48.57
(-) Inc in WC -₹ 27.00 -₹ 1.32 ₹ 3.68 ₹ 1.64 ₹ 2.76
FCFF -₹ 2.48 ₹ 26.21 ₹ 41.53 ₹ 43.04 ₹ 47.56 ₹ 50.42

PVF @ 9.97% 0.9093389 0.826897 0.75193 0.6837591 0.6217687

PV -₹ 2.26 ₹ 21.67 ₹ 31.22 ₹ 29.43 ₹ 29.57
₹ 109.64

Terminal Value ₹ 789.61

Sum of PV ₹ 109.64
VF ₹ 899.24

₹ 899.24 4% 5% 6% 6.50% 7%
20%
22%
25%
27%
30%