ARGENT RESEARCH

Merger & Acquisition Modelling - Vertical Integration Model

Acquirer Company - Tata Motors Ltd Target Company - CEAT Ltd

Model Content :
1) Deal Assumption page - Synergies Assumptions
2) M&A Pro Forma Model
3) Control Pannel
3) Revenue(Assumptions & Scenarios)
4) Raw FS - Acquirer Company
5) Raw FS - Target Company
6) Forecasted FS - Acquirer Company (Pro Forma Balance sheet & Cash flow statement)
7) Forecasted FS - Taget Company (Pro Forma Balance sheet & Cash flow statement)
8) Reinvestment Rate - Acquirer & Target Company
9) Risk Free Rate (Based on Credit Default Spread)
10) Comp co Beta - Acquirer Co.
11) Comp co Beta - Target Co.
12) Cost of Equity & Debt - Acquirer Co & Target Co

Rajath Madhyastha
ARGENT RESEARCH
 ARGENT RESEARCH
Meger Assumptions for Tata Motors Ltd & CEAT Ltd
Transaction Inputs Scenarios
Acquirer Name Tata Motors Ltd Scenario # LIVE --> 4 2 2 3 4 5
Target Name CEAT Ltd
Acquirer Share Price 80.53 Synergies
Target Share Price 6,558.60 Revenue enhancement 15000.00 10000.00 12500.00 12500.00 15000.00 20000.00
Transaction Close Date 15-09-2023 COGS savings 10000.00 10000.00 10000.00 10000.00 10000.00 10000.00
Financial Reporting Units in Crs. General & Admin savings 300.00 300.00 3000.00 3000.00 300.00 300.00
Currency INR

Restructuring Charges 1 Cr Synergies in Year 1 (full yr.) 30.00% 30% 30% 30% 30% 30%
Equity Issuance Fees 3.00% Synergies in Year 2 65.00% 65% 65% 65% 65% 65%
Debt Issuance Fees 3.00% Synergies in Years 3+ 100.00% 100% 100% 100% 100% 100%
Other Closing Costs ₹ 50.00
Financing
Replace Target Debt Yes Debt Tranche
Replace Acquirer Debt No Senior Debt A ₹ 4,000.00 - 2,000 2,000 4,000 5,000
Senior Debt B ₹ 3,000.00 - 2,000 2,000 3,000 4,000
Acquirer FD Shares Outstanding 386 Subordinated Debt ₹ 2,000.00 - 500 1,000 2,000 4,000
Target FD Share Outstanding 4 Interest Rate
Shares Issued 262 Senior Debt A 5.50% 5.50% 5.50% 5.50% 5.50% 5.50%
Pro Forma Shares Outstanding 648 Senior Debt B 5.75% 5.75% 5.75% 5.75% 5.75% 5.75%
Subordinated Debt 8.25% 8.25% 8.25% 8.25% 8.25% 8.25%
Share Issuance Discount 1.00%
Share Issuance Price ₹ 79.72
Transaction
Takeover Premium 12.5% 5.0% 5.0% 10.0% 12.5% 15.0%
Purchase Price Cash Consideration 30.0% 0.0% 20.0% 20.0% 30.0% 50.0%
Target Share Price ₹ 6,558.60
Takeover Premium 12.5% Sources & Uses of Cash
Offer Price ₹ 7,378.43 Sources of Cash Uses of Cash
Cash 3,169 Cash Consideration ₹ 8,953.75
Acquirer Share Price ₹ 80.53 Stock Issued 20,892 Stock Consideration ₹ 20,892.07
Share Exchange Ratio 91.623 Debt Issued 9,000 Target Debt - Replace ₹ 2,268.50
Acquirer Debt - Replace ₹ 0.00
Target Shares Outstanding 4.05 Debt Financing Fees ₹ 270.00
Offer Price ₹ 7,378.43 Equity Financing Fees ₹ 626.76
Purchase Price ₹ 29,845.82 Other Closing Costs ₹ 50.00
Target Debt ₹ 2,268.50 Total Sources 33,061 Total Uses 33,061
Target Cash ₹ 2,516.83
Enterprise Value ₹ 29,597.49

Goodwill and Purchase Price Allocation

Book Value Fair Value Adjustment Purchase Price Allocation
Inventory & Other Current Assets 6,242 9,500 3,258 Total Purchase Price 29,846
Target PP&E 6,246 14,250 8,004 Net Book Value of Assets 5,930
Identifiable Intangibles - - Excess Purchase Price 23,916
Net Identifiable Assets ₹ 12,488.59 ₹ 23,750.00 ₹ 11,261.41 Write-off Existing Goodwill
Fair Value Adjustments 11,261
Note : All liabilities are assumed to be at Fair Value Excess Purchase Price After Adjustments 12,654
Goodwill /(Gain on Bargain Purchase) 12,654
Consolidated Balance sheet
Pro Forma Consolidated Balance sheet
1 2 3 4 5 6 7 8 9 10
Acquirer Target Fair Value Target PF Purchase Financing Financing Financing Total Adj. Consolidated
End of the period 15-09-2023 15-09-2023 Transaction Debt+Equity Fees 15-09-2023

Assets :
Non-Current Asssets
PPE(Net) ₹ 15,828.1 ₹ 6,246.3 8,004 ₹ 14,250.0 ₹ 14,250.0 ₹ 30,078.14
Goodwill - - - - 12,654 ₹ 12,654.4 ₹ 12,654.40
Net Non-Current Assets ₹ 15,828.1 ₹ 6,246.3 ₹ 6,246.3 ₹ 26,904.4 ₹ 42,732.5
Current Assets -
Inventory ₹ 30,783.0 ₹ 2,198.0 3,258 ₹ 5,455.6 ₹ 5,455.6 ₹ 36,238.65
Accounts Receivable ₹ 9,181.3 ₹ 1,527.5 ₹ 1,527.5 ₹ 1,527.5 ₹ 10,708.88
Cash and Equivalents ₹ 7,564.1 ₹ 2,516.8 ₹ 2,516.8 ₹ (8,953.7) 9,000 ₹ (946.8) ₹ (2,268.5) ₹ (652.2) ₹ 6,911.91
Net Current Assets ₹ 47,528.4 ₹ 6,242.3 ₹ 6,242.3 ₹ 6,331.0 ₹ 53,859.4
Equity
Share Capital ₹ 766.0 ₹ 40.5 ₹ 40.5 ₹ (40.5) ₹ 20,892.07 ₹ 20,892.1 ₹ 21,658.09
Reserves ₹ 22,338.8 ₹ 3,640.5 ₹ 3,640.5 ₹ (3,640.5) ₹ (946.8) ₹ (946.8) ₹ 21,391.99
Shareholders Equity ₹ 23,104.8 ₹ 3,681.0 ₹ 19,945.3 ₹ 43,050.1
Liabilities
Long term Borrowings ₹ 10,256.4 ₹ 1,571.1 ₹ 1,571.1 9,000 ₹ (2,268.5) ₹ 8,302.6 ₹ 18,558.97
Short Term Borrowings ₹ 8,527.6 ₹ 697.4 ₹ 697.4 ₹ 697.4 ₹ 9,224.99
Current Tax Liabilities ₹ 97.1 ₹ 72.4 ₹ 72.4 ₹ 72.4 ₹ 169.51
Accounts Payables ₹ 30,783.0 ₹ 4,217.7 ₹ 4,217.7 ₹ 4,217.7 ₹ 35,000.70
Total Equity&Liabilities ₹ 65,090.6 ₹ 9,702.8 ₹ 9,702.8 ₹ 13,290.1 ₹ 62,954.2
 ARGENT RESEARCH
Forecast Period
PRO FORMA MODEL 2024 2025 2026 2027 2028
End of Period 15-09-2023 31-03-2024 15-10-2024 15-10-2025 15-10-2026 15-10-2027
Days in the period 168 198 365 365 365 365
Fraction of year 0.46 0.54 1 1 1 1
All fig in INR Crs. Unless stated

# Assumptions

Inventory Days Ratio (DAYS) 37 37 37 37 37

Accounts Receivable Days Ratio (DAYS) 18 18 18 18 18
Accounts Payable Days Ratio (DAYS) 71 71 71 71 71
Effective Tax Rate 30% 30% 30% 30% 30%
Interest Rate (Avearage Debt) 9.01% 9.01% 9.01% 9.01% 9.01%
Dividend payout % 8.00% 8.00% 8.00% 8.00% 8.00%
Depreciation on PPE(Net)(Opening Balance) 8.71% 8.71% 8.71% 8.71% 8.71%
No of shares Outstnading (Nos) 648 648 648 648 648

Debt Amortization Schedule

Senior Debt A 0% 10% 10% 10% 10%
Senior Debt B 0% 20% 20% 0% 20%
Subordinated Debt 0% 0% 0% 0% 50%

# Income Statement
Revenue ₹ 53,972.8 ₹ 1,32,522.4 ₹ 1,72,842.5 ₹ 2,21,666.2 ₹ 2,75,517.4
Cost of Goods Sold (COGS) ₹ (44,722.0) ₹ (1,03,136.4) ₹ (1,28,780.5) ₹ (1,61,508.5) ₹ (2,06,301.5)
Gross Profit ₹ 9,250.7 ₹ 29,386.0 ₹ 44,062.0 ₹ 60,157.8 ₹ 69,215.9
Expenses
SG&A Expenses ₹ (3,417.8) ₹ (8,005.1) ₹ (10,103.3) ₹ (12,732.1) ₹ (16,106.6)
Other Opearting Expenses ₹ (2,405.2) ₹ (3,074.1) ₹ (3,908.1) ₹ (4,942.4) ₹ (6,218.2)
Depreciation & Amortization ₹ (1,921.6) ₹ (4,115.8) ₹ (5,308.3) ₹ (6,814.8) ₹ (8,707.5)
Earnings berfore Interest Tax' ₹ 1,506.2 ₹ 14,190.9 ₹ 24,742.2 ₹ 35,668.4 ₹ 38,183.6
Interest ₹ (913.5) ₹ (2,152.3) ₹ (2,008.6) ₹ (1,873.7) ₹ (1,781.1)
Total Expenses ₹ (8,658.0) ₹ (17,347.4) ₹ (21,328.4) ₹ (26,363.1) ₹ (32,813.4)
Earnings Before Tax ₹ 592.7 ₹ 12,038.6 ₹ 22,733.6 ₹ 33,794.7 ₹ 36,402.5

Taxes ₹ (177.8) ₹ (3,611.6) ₹ (6,820.1) ₹ (10,138.4) ₹ (10,920.7)

Net Earnings ₹ 414.9 ₹ 8,427.0 ₹ 15,913.5 ₹ 23,656.3 ₹ 25,481.7

Dividend ₹ 33.2 ₹ 674.2 ₹ 1,273.1 ₹ 1,892.5 ₹ 2,038.5

Retained Earnings ₹ 381.7 ₹ 7,752.9 ₹ 14,640.5 ₹ 21,763.8 ₹ 23,443.2
Basic EPS ₹ 0.6 ₹ 13.0 ₹ 24.6 ₹ 36.5 ₹ 39.4
 PRO FORMA MODEL

# Pro Forma Balance Sheet

Assets :
Non-Current Asssets
PPE(Net) ₹ 30,078.14 ₹ 31,130.43 ₹ 34,068.63 ₹ 37,746.73 ₹ 42,319.20 ₹ 47,966.18
Goodwill ₹ 12,654.40 ₹ 12,654.40 ₹ 12,654.40 ₹ 12,654.40 ₹ 12,654.40 ₹ 12,654.40
Net Non-Current Assets ₹ 42,732.54 ₹ 43,784.83 ₹ 46,723.03 ₹ 50,401.13 ₹ 54,973.60 ₹ 60,620.58
Current Assets
Inventory ₹ 36,238.65 ₹ 8,357.15 ₹ 10,454.92 ₹ 13,054.47 ₹ 16,372.09 ₹ 20,912.76
Accounts Receivable ₹ 10,708.88 ₹ 4,906.61 ₹ 6,535.35 ₹ 8,523.74 ₹ 10,931.49 ₹ 13,587.16
Cash and Equivalents ₹ 6,911.91 ₹ 21,030.60 ₹ 31,023.99 ₹ 51,390.64 ₹ 83,092.79 ₹ 1,15,678.62
Net Current Assets ₹ 53,859.44 ₹ 34,294.36 ₹ 48,014.26 ₹ 72,968.84 ₹ 1,10,396.37 ₹ 1,50,178.54
Equity
Share Capital ₹ 21,658.09 ₹ 21,658.09 ₹ 21,658.09 ₹ 21,658.09 ₹ 21,658.09 ₹ 21,658.09
Reserves ₹ 21,391.99 ₹ 21,773.70 ₹ 29,526.58 ₹ 44,167.03 ₹ 65,930.86 ₹ 89,374.09
Shareholders Equity ₹ 43,050.09 ₹ 43,431.79 ₹ 51,184.67 ₹ 65,825.12 ₹ 87,588.95 ₹ 1,11,032.18
Liabilities
Long term Borrowings ₹ 18,558.97 ₹ 26,708.87 ₹ 24,741.29 ₹ 22,870.46 ₹ 21,686.72 ₹ 18,981.36
Short Term Borrowings
Current Tax Liabilities ₹ 169.51 ₹ 53.34 ₹ 1,083.48 ₹ 2,046.02 ₹ 3,041.52 ₹ 3,276.22
Accounts Payables ₹ 35,000.70 ₹ 16,036.69 ₹ 20,062.15 ₹ 25,050.46 ₹ 31,416.71 ₹ 40,129.88
Total Equity&Liabilities ₹ 53,729.18 ₹ 42,798.90 ₹ 45,886.91 ₹ 49,966.95 ₹ 56,144.96 ₹ 62,387.46
 PRO FORMA MODEL 2024 2025 2026 2027 2028
End of Period 15-09-2023 31-03-2024 31-03-2024 31-03-2024 31-03-2024 31-03-2024

# Supporting Schedules

Working Capital Schedule

Inventory ₹ 36,238.7 ₹ 8,357.1 ₹ 10,454.9 ₹ 13,054.5 ₹ 16,372.1 ₹ 20,912.8
Accounts Receivable ₹ 10,708.9 ₹ 4,906.6 ₹ 6,535.4 ₹ 8,523.7 ₹ 10,931.5 ₹ 13,587.2
Accounts Payables ₹ 35,000.7 ₹ 16,036.7 ₹ 20,062.2 ₹ 25,050.5 ₹ 31,416.7 ₹ 40,129.9

Changes in Working Capital

Inventory ₹ 27,881.5 ₹ (2,097.8) ₹ (2,599.5) ₹ (3,317.6) ₹ (4,540.7)
Accounts Receivable ₹ 5,802.3 ₹ (1,628.7) ₹ (1,988.4) ₹ (2,407.7) ₹ (2,655.7)
Accounts Payables ₹ (18,964.0) ₹ 4,025.5 ₹ 4,988.3 ₹ 6,366.3 ₹ 8,713.2
Net Changes In wc ₹ 14,719.8 ₹ 299.0 ₹ 400.4 ₹ 640.9 ₹ 1,516.8

Depreciation and PPE Schedule

CapEX ₹ 2,973.9 ₹ 7,054.0 ₹ 8,986.4 ₹ 11,387.3 ₹ 14,354.5

PPE(Net ) Opening Balance ₹ 30,078.1 ₹ 31,130.4 ₹ 34,068.6 ₹ 37,746.7 ₹ 42,319.2

Capital Expenditure ₹ 2,973.9 ₹ 7,054.0 ₹ 8,986.4 ₹ 11,387.3 ₹ 14,354.5
Other Addtitions/(Disposal)

Depreciation on Existing PPE ₹ (1,624.2) ₹ (3,113.0) ₹ (3,406.9) ₹ (3,774.7) ₹ (4,231.9)

Depreciation on new CapEx

2024 ₹ (297.4) ₹ (297.4) ₹ (297.4) ₹ (297.4) ₹ (297.4)
2025 ₹ (705.4) ₹ (705.4) ₹ (705.4) ₹ (705.4)
2026 ₹ (898.6) ₹ (898.6) ₹ (898.6)
2027 ₹ (1,138.7) ₹ (1,138.7)
2028 ₹ (1,435.5)
Depreciation on new CapEx ₹ (297.4) ₹ (1,002.8) ₹ (1,901.4) ₹ (3,040.2) ₹ (4,475.6)

Total Depreciation Expenses ₹ (1,921.6) ₹ (4,115.8) ₹ (5,308.3) ₹ (6,814.8) ₹ (8,707.5)

PPE(Net ) Closing Balance ₹ 31,130.43 ₹ 34,068.63 ₹ 37,746.73 ₹ 42,319.20 ₹ 47,966.18

PRO FORMA MODEL 2024 2025 2026 2027 2028
End of Period 00-01-1900 31-03-2024 31-03-2024 31-03-2024 31-03-2024 31-03-2024

Debt Schedule
Senior Debt A
Opening Balance ₹ 4,000.00 ₹ 3,600.00 ₹ 3,200.00 ₹ 2,800.00
Addition (Repayment) ₹ (400.0) ₹ (400.0) ₹ (400.0) ₹ (400.0)
Closing Balance ₹ 4,000.00 ₹ 3,600.00 ₹ 3,200.00 ₹ 2,800.00 ₹ 2,400.00

Senior Debt B
Opening Balance ₹ 3,000.00 ₹ 2,400.00 ₹ 1,800.00 ₹ 1,800.00
Addition (Repayment) ₹ (600.0) ₹ (600.0) - ₹ (600.0)
Closing Balance ₹ 3,000.00 ₹ 2,400.00 ₹ 1,800.00 ₹ 1,800.00 ₹ 1,200.00

Subordinated Debt
Opening Balance ₹ 2,000.00 ₹ 2,000.00 ₹ 2,000.00 ₹ 2,000.00
Addition (Repayment) 0 0 0 ₹ (1,000.0)
Closing Balance ₹ 2,000.00 ₹ 2,000.00 ₹ 2,000.00 ₹ 2,000.00 ₹ 1,000.00

Target Debt
Opening Balance ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00
Addition (Repayment) 0 0 0 0 0
Closing Balance ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00

Acquirer Debt
Opening Balance ₹ 18,783.96 ₹ 17,708.87 ₹ 16,741.29 ₹ 15,870.46 ₹ 15,086.72
Addition (Repayment) ₹ (1,075.1) ₹ (967.6) ₹ (870.8) ₹ (783.7) ₹ (705.4)
Closing Balance ₹ 18,783.96 ₹ 17,708.87 ₹ 16,741.29 ₹ 15,870.46 ₹ 15,086.72 ₹ 14,381.36

Total Debt
Opening Balance ₹ 18,783.96 ₹ 26,708.87 ₹ 24,741.29 ₹ 22,870.46 ₹ 21,686.72
Addition (Repayment) ₹ (1,075.1) ₹ (1,967.6) ₹ (1,870.8) ₹ (1,183.7) ₹ (2,705.4)
Closing Balance ₹ 26,708.87 ₹ 24,741.29 ₹ 22,870.46 ₹ 21,686.72 ₹ 18,981.36
# Interest Schedule
Interest Rates
Senior Debt A 5.50% 5.50% 5.50% 5.50% 5.50%
Senior Debt B 5.75% 5.75% 5.75% 5.75% 5.75%
Subordinated Debt 8.25% 8.25% 8.25% 8.25% 8.25%
Target Debt 10.11% 10.11% 10.11% 10.11% 10.11%
Acquirer Debt 9.01% 9.01% 9.01% 9.01% 9.01%

Interest Expense (opening balance)

Senior Debt A ₹ 0.00 ₹ 220.00 ₹ 198.00 ₹ 176.00 ₹ 154.00
Senior Debt B ₹ 0.00 ₹ 172.50 ₹ 138.00 ₹ 103.50 ₹ 103.50
Subordinated Debt ₹ 0.00 ₹ 165.00 ₹ 165.00 ₹ 165.00 ₹ 165.00
Target Debt ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00
Acquirer Debt ₹ 913.46 ₹ 1,594.78 ₹ 1,507.64 ₹ 1,429.22 ₹ 1,358.64
Total ₹ (913.5) ₹ (2,152.3) ₹ (2,008.6) ₹ (1,873.7) ₹ (1,781.1)
 Forecast Period
PRO FORMA MODEL 2024 2025 2026 2027 2028
End of Period 15-09-2023 31-03-2024 31-03-2024 31-03-2024 31-03-2024 31-03-2024

PRO Forma Cash Flow Statement

Cash flow from Operating Activities
Profit Before Tax ₹ 592.7 ₹ 12,038.6 ₹ 22,733.6 ₹ 33,794.7 ₹ 36,402.5
Depreciation ₹ 1,921.6 ₹ 4,115.8 ₹ 5,308.3 ₹ 6,814.8 ₹ 8,707.5
Interest Expenses ₹ 913.5 ₹ 2,152.3 ₹ 2,008.6 ₹ 1,873.7 ₹ 1,781.1
Changes in Operating assets and Liabilities :
Inventory ₹ 27,881.5 ₹ (2,097.8) ₹ (2,599.5) ₹ (3,317.6) ₹ (4,540.7)
Accounts Receivable ₹ 5,802.3 ₹ (1,628.7) ₹ (1,988.4) ₹ (2,407.7) ₹ (2,655.7)
Accounts Payable ₹ (18,964.0) ₹ 4,025.5 ₹ 4,988.3 ₹ 6,366.3 ₹ 8,713.2
Net Changes in Wc ₹ 14,719.8 ₹ 299.0 ₹ 400.4 ₹ 640.9 ₹ 1,516.8
Income Taxes paid ₹ 53.34 ₹ 1,083.48 ₹ 2,046.02 ₹ 3,041.52 ₹ 3,276.22
Net Cash flow from operating Activities ₹ 18,200.9 ₹ 19,689.2 ₹ 32,496.9 ₹ 46,165.7 ₹ 51,684.2

Cash from Investing Activity -

(Acquisition)/Disposal of PPE ₹ (2,973.9) ₹ (7,054.0) ₹ (8,986.4) ₹ (11,387.3) ₹ (14,354.5)
Net Cash flow from Investing Activities ₹ (2,973.9) ₹ (7,054.0) ₹ (8,986.4) ₹ (11,387.3) ₹ (14,354.5)

Cash from Financing Activity -

Addition/(Repayment) of Equity - - - - -
Dividends paid ₹ (33.2) ₹ (674.2) ₹ (1,273.1) ₹ (1,892.5) ₹ (2,038.5)
Addition/(Repayment) of Debt ₹ (1,075.1) ₹ (1,967.6) ₹ (1,870.8) ₹ (1,183.7) ₹ (2,705.4)
Net Cash flow from Financing Activities ₹ (1,108.3) ₹ (2,641.7) ₹ (3,143.9) ₹ (3,076.2) ₹ (4,743.9)

Cash and cash Equivalents ,(opening balance) ₹ 6,911.91 ₹ 21,030.60 ₹ 31,023.99 ₹ 51,390.64 ₹ 83,092.79
Increase/(decrease) during the Year ₹ 14,118.7 ₹ 9,993.4 ₹ 20,366.7 ₹ 31,702.2 ₹ 32,585.8
Cash and cash Equivalents ,(closing balance) ₹ 21,030.60 ₹ 31,023.99 ₹ 51,390.64 ₹ 83,092.79 ₹ 1,15,678.62
 Forecast Period
PRO FORMA MODEL 2024 2025 2026 2027 2028
End of Period 15-09-2023 31-03-2024 31-03-2024 31-03-2024 31-03-2024 31-03-2024

# Merger Integration

Revenue
Acquirer ₹ 46,274.0 ₹ 1,10,138.2 ₹ 1,40,772.0 ₹ 1,78,947.3 ₹ 2,26,262.1
Target ₹ 7,698.8 ₹ 17,884.2 ₹ 22,320.5 ₹ 27,718.9 ₹ 34,255.3
Synergies - ₹ 4,500.0 ₹ 9,750.0 ₹ 15,000.0 ₹ 15,000.0
Total ₹ 53,972.8 ₹ 1,32,522.4 ₹ 1,72,842.5 ₹ 2,21,666.2 ₹ 2,75,517.4

Cost of Goods Sold

Acquirer ₹ 39,332.9 ₹ 93,617.5 ₹ 1,19,656.2 ₹ 1,52,105.2 ₹ 1,92,322.8
Target ₹ 5,389.1 ₹ 12,519.0 ₹ 15,624.4 ₹ 19,403.2 ₹ 23,978.7
Synergies - ₹ (3,000.0) ₹ (6,500.0) ₹ (10,000.0) ₹ (10,000.0)
Total ₹ 44,722.0 ₹ 1,03,136.4 ₹ 1,28,780.5 ₹ 1,61,508.5 ₹ 2,06,301.5

SG&A Expenses
Acquirer ₹ 2,724.9 ₹ 6,485.6 ₹ 8,289.4 ₹ 10,537.4 ₹ 13,323.6
Target ₹ 692.9 ₹ 1,609.6 ₹ 2,008.8 ₹ 2,494.7 ₹ 3,083.0
Synergies ₹ (90.0) ₹ (195.0) ₹ (300.0) ₹ (300.0)
Total ₹ 3,417.8 ₹ 8,005.1 ₹ 10,103.3 ₹ 12,732.1 ₹ 16,106.6
 ARGENT RESEARCH
PRO FORMA MODEL
# Discounted Cash Flow Schedule

Assumptions
Tax Rate 30.00%
WACC 13.21%
Reinvestment Rate 56.51%
Discount Rate 13.21%
Terminal Growth Rate 7.08%
Current Price 80.53
Shares Outstanding 648

Discounted Cash Flow Entry 2014 2015 2016 2017 2018 Exit
Date 15-09-2023 31-12-2014 31-12-2015 31-12-2016 31-12-2017 31-12-2018 31-12-2018

EBIT ₹ 1,506.2 ₹ 14,190.9 ₹ 24,742.2 ₹ 35,668.4 ₹ 38,183.6

Less: Cash Taxes ₹ (451.8) ₹ (4,257.3) ₹ (7,422.7) ₹ (10,700.5) ₹ (11,455.1)
EBIT(1-T) ₹ 1,958.0 ₹ 18,448.2 ₹ 32,164.9 ₹ 46,369.0 ₹ 49,638.7
- - - - -
Reinvestment Rate 56.51% 56.51% 56.51% 56.51% 56.51%
- - - -
Free Cash Flow To Firm - ₹ 1,106.6 ₹ 10,425.9 ₹ 18,177.9 ₹ 26,205.2 ₹ 28,053.1 ₹ 31,726.6

Mid Year Convention 0.5 1.5 2.5 3.5 4.5 4.5

Terminal Value
Discounting Rate 0.940 0.830 0.733 0.648 0.572 0.572161252 TV- FCFF 28053.11

PV of FCFF 0 ₹ 1,040.0 ₹ 8,655.4 ₹ 13,330.0 ₹ 16,974.3 ₹ 16,050.9 ₹ 2,57,174.8 Terminal value 227397.91

Enterprise Value Equity Value Equity Value per Share

Pv of Terminal Value ₹ 1,30,108.3 Enterprise Value ₹ 1,86,158.9 Market Cap ₹ 1,74,511.79
Pv of FCFF ₹ 56,050.6 Debt ₹ 18,559.0 shares Outstanding 648
Cash ₹ (6,911.9)
Enterprise Value ₹ 1,86,158.9 Net Debt ₹ 11,647.1 Implied Equity Value per share ₹ 269.49

Market Cap ₹ 1,74,511.79

 ARGENT RESEARCH

Income Statement Assumptions Acquirer Comapany Target Company Balance Sheet Assumptions Acquirer Comapany Target Company
Merged Entity

Revenue Forecast Assumptions WorkingCapital Assumptions

Base Case Annual Growth Taper 2.5% 0.5% Inventory Days Ratio (DAYS) 37 64 37
Bull Case Growth (+ Base %) 30.0% 40.0% Accounts Payable Days Ratio
(DAYS) 71 79 71
Bear Case Growth (- Base %) -10.0% -15.0% Accounts Receivable Days Ratio
(DAYS) 18 42 18
Gross Profit Forecast Assumptions 15.0% 30.0% Property & Equipment Assumptions
Expense Forecast Assumptions CapEx % on Revenue 5.51% 30.23%
Average Asset Useful Life (Years) 10 15 10
SG&A Expenses 5.9% 9.0%
Other Operating Expense 2.2% 3.9% Debt Assumptions
Depreciation/Amortization on PPE Net (opening Balance) 8.7% 8.7%
Interest Rate % (Average Debt) 9.0% 10.1% Interest Rate 9.01% 10.11%
Effective Tax Rate 30.0% 30.0% Repayment of Existing Debt 10% Constant
Dividend Payout % 8.0% 20.2%
No of shares Outstanding 385.50 4.0

Valuation Acquirer Comapany Target Company Merged Entity

DCF Summary
Risk Free Rate #REF! #REF! #REF!
Country Risk Premium 2.49% 2.49% 2.49%
Equity Risk Premium 8.43% 8.43% 8.43%
Comparable Comps Beta 0.96 1.22 0.96
Cost Of Debt 8.78% 8.78% 8.78%
Cost Of Equity 13.87% 16.07% 13.87%
Marginal Tax Rate 30.00% 30.00% 30.00%
Market Value of Debt 20656.55 2435.23 20656.55
Market Value Of Equity 229960.00 8934.01 229960.00
Book Value of debt 19278.50 2268.50 19278.50
Cash and Cash Equivalent 1414.63 50.24 1414.63
Weighted Avearge Cost of Capital 13.21% 13.95% 13.21%
Intrinsic Growth Rate(Median) -8.66% 2.82% -8.66%
Reinvestment Rate(Median) 56.51% 438.95% 56.51%
Terminal Growth Rate 7.08% 7.08% 7.08%
 ARGENT RESEARCH

Assumptions Schedule
Acquirer Company - Tata Motors Ltd Target Company - Tata Motors Ltd
Scenario 2 Scenario 2
Live Case Scenario Forecast Live Case Scenario Forecast
All fig in Inr Crs unless stated 2024F 2025F 2026F 2027F 2028F All fig in Inr Crs unless stated 2024F 2025F 2026F 2027F 2028F

Revenue From Operations 29.26% 28.53% 27.81% 27.12% 26.44% Revenue From Operations 26.09% 25.44% 24.81% 24.19% 23.58%

Scenario 1-Base Case Forecast Scenario 1-Base Case Forecast

All fig in Inr Crs unless stated 2024F 2025F 2026F 2027F 2028F All fig in Inr Crs unless stated 2024F 2025F 2026F 2027F 2028F

Revenue From Operations 22.51% 21.94% 21.40% 20.86% 20.34% Revenue From Operations 18.64% 18.55% 18.45% 18.36% 18.27%

Scenario 2 - Bull Case Forecast Scenario 2 - Bull Case Forecast

All fig in Inr Crs unless stated 2024F 2025F 2026F 2027F 2028F All fig in Inr Crs unless stated 2024F 2025F 2026F 2027F 2028F

Revenue From Operations 29.26% 28.53% 27.81% 27.12% 26.44% Revenue From Operations 26.09% 25.96% 25.83% 25.70% 25.58%

Scenario 3 - Bear Case Forecast Scenario 3 - Bear Case Forecast

All fig in Inr Crs unless stated 2024F 2025F 2026F 2027F 2028F All fig in Inr Crs unless stated 2024F 2025F 2026F 2027F 2028F

Revenue From Operations 20.26% 19.75% 19.26% 18.77% 18.31% Revenue From Operations 15.84% 15.76% 15.68% 15.61% 15.53%
 ARGENT RESEARCH
Tata Motors Ltd (Standalone)
Days in the Period 365 365 365 365 Days in the Period 365 365 365 365 365
All fig in Inr Crs unless stated
Standalone Income Statement Information Mar-20 Mar-21 Mar-22 Mar-23 income Statement Information Mar-20 Mar-21 Mar-22 Mar-23 4yrsAverage
Revenue from Opeartion ₹ 43,928.2 ₹ 30,175.0 ₹ 47,263.7 ₹ 65,757.3 Total Revenue growth - -29.24% 59.65% 37.10% 22.51%
Other Income (₹1,127.9) ₹ 112.4 ₹ 1,091.7 ₹ 538.1 Gross Margin% 7.33% 11.04% 12.28% 15.22% 11.47%
Total Revenue ₹ 42,800.3 ₹ 30,287.5 ₹ 48,355.4 ₹ 66,295.5 SG&A % Sales 7.72% 5.05% 5.52% 5.26% 5.89%
COGS (₹39,664.5) (₹26,944.4) (₹42,416.4) (₹56,202.9) Other Operating Expenses % Sales 3.76% 1.14% 1.40% 2.32% 2.16%
Gross Margin ₹ 3,135.8 ₹ 3,343.0 ₹ 5,939.0 ₹ 10,092.6 Depriciation % on PPE net (Opening Balance) 6.89% 6.69% 12.55% 8.71%
SG&A Expenses (₹3,305.4) (₹1,530.2) (₹2,669.0) (₹3,487.1) Interest rate(Avearge Debt) 17.47% 9.15% 8.79% 9.08% 9.01%
Other Operating Expenses (₹1,609.5) (₹346.0) (₹679.4) (₹1,536.3)
Depriciation/Amortization Expenses (₹3,375.3) (₹1,730.7) (₹1,760.6) (₹1,766.9) Balance Sheet Information Mar-20 Mar-21 Mar-22 Mar-23 4yrsAverage
Interest (₹1,973.0) (₹2,110.8) (₹2,121.7) (₹2,047.5) Inventory days Ratio (Days) 35 62 32 20 37
TAXES (₹162.3) (₹20.7) (₹99.2) ₹ 1,473.3 Accounts Receivable Ratio
(Days) 17 25 16 13 18
Basic Shares Outstanding 365.90 366.20 385.40 385.50 Accounts Payabale Ratio
(Days) 75 110 53 47 71
Dividend ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 873.0 Income tax payable 19.40% 182.63% 50.08% -3.64% 62.12%
CapEx % on Revenuue 11% 6% 4% 2% 5.51%
Standalone Balance Sheet Mar-20 Mar-21 Mar-22 Mar-23 CapEx ₹ 4,632.95 ₹ 1,671.77 ₹ 1,691.92 ₹ 1,561.22
Non-Current Assets Capital Asset Turnover Ratio - PPE (net) 1.75 1.15 3.36 4.52 2.69
PPE 18870.67 ₹ 19,153.5 ₹ 11,733.4 ₹ 11,707.9 Long TermBorrowings ₹ 15,298.8 ₹ 16,920.5 ₹ 14,340.6 ₹ 10,750.9 14,327.69
Intangible Assets 5568.64 ₹ 6,402.0 ₹ 2,009.9 ₹ 2,413.2 Short Term Borrowings ₹ 6,204.7 ₹ 5,518.4 ₹ 9,188.5 ₹ 8,527.6 7,359.79
CWIP 1755.51 ₹ 1,400.8 ₹ 585.2 ₹ 575.7 Debt to Equity Ratio 1.1 1.1 1.2 0.8 ₹ 1.1
Goodwill 99.09 ₹ 99.1 - - Share Capital 719.5 765.8 765.9 766.0
Right of use Assets 669.58 ₹ 768.6 ₹ 332.5 ₹ 421.3 Shares outstanding 365.90 366.20 385.40 385.50
intangible assets under Development 2739.29 ₹ 1,605.6 ₹ 882.0 ₹ 509.3 Dividend payout % 0.00% 0.00% 0.00% 32.00% 8.00%
Investments accounted using equity method 15182.29 ₹ 15,147.3 ₹ 27,917.5 ₹ 27,976.8 Reatained Earnings - - - 68.00% 68.00%
Investments 548.57 ₹ 967.7 ₹ 1,338.9 ₹ 1,204.8
Loans and Advances 138.46 ₹ 72.4 ₹ 48.4 ₹ 114.4
Other Financial Assets 1512.96 ₹ 1,899.2 ₹ 1,992.5 ₹ 2,405.2
Deferred tax assets - - ₹ 1,477.3
Non current tax assets(net) 727.97 ₹ 715.3 ₹ 777.7 ₹ 868.2
Other non current assets 1208.08 ₹ 973.7 ₹ 662.2 ₹ 596.8
Current Assets
Inventories 3831.92 ₹ 4,551.7 ₹ 3,718.4 ₹ 3,027.9
Invetsments 885.31 ₹ 1,578.3 ₹ 5,143.0 ₹ 3,142.9
Trade receivables 1978.06 ₹ 2,087.5 ₹ 2,111.7 ₹ 2,307.7
Cash Equivalents 2145.30 ₹ 2,365.5 ₹ 2,450.2 ₹ 1,121.4
Bank balance and other 1386.69 ₹ 1,953.4 ₹ 155.2 ₹ 293.2
Loans and Advances 232.14 ₹ 184.5 ₹ 139.4 ₹ 132.2
Other Financial Assets 1546.56 ₹ 1,746.0 ₹ 809.5 ₹ 255.3
Assets classified as held for sale 191.07 ₹ 220.8 - -
Other Current Assets 1371.51 ₹ 1,166.9 ₹ 1,091.9 ₹ 1,219.1
Total Assets 62,590 65,060 63,900 61,771
Equity & LIABILITIES
Share Capital ₹ 719.5 765.81 ₹ 765.9 ₹ 766.0
Reserves ₹ 17,668.1 18,290.16 ₹ 19,178.3 ₹ 21,703.8
Non-Current Liabilities
Long term Borrowings ₹ 14,776.5 16,326.77 ₹ 14,102.7 ₹ 10,445.7
Lease Liabilities ₹ 522.2 593.74 ₹ 237.8 ₹ 305.2
Other financial liabilities ₹ 854.7 659.64 ₹ 460.4 ₹ 414.4
Provisions ₹ 1,769.7 1,371.94 ₹ 1,474.1 ₹ 1,588.7
Deferred tax Liabilities(net) ₹ 198.6 266.50 ₹ 173.7 ₹ 51.1
Other Non - Current Liabilities ₹ 269.6 533.55 ₹ 514.1 ₹ 692.0
Current Liabilities
Borrowings ₹ 6,121.4 5,421.95 ₹ 9,129.9 ₹ 8,426.7
Lease Liabilities ₹ 83.3 96.47 ₹ 58.6 ₹ 100.9
Trade Payables ₹ 8,102.3 8,115.01 ₹ 6,102.1 ₹ 7,162.6
Acceptance ₹ 2,741.7 7,873.12 ₹ 7,884.0 ₹ 5,839.9
Other financial liabilities ₹ 5,976.4 1,376.12 ₹ 1,113.3 ₹ 1,300.1
Provisions ₹ 1,406.8 1,043.54 ₹ 608.1 ₹ 408.8
Current tax Liabilities(net) ₹ 31.5 37.84 ₹ 49.7 ₹ 53.6
Other Current Liabilities ₹ 1,347.6 2,287.50 ₹ 2,047.3 ₹ 2,511.1
Total Equity and Liabilities 62,590 65,060 63,900 61,771

Cash Flow Statement Mar-20 Mar-21 Mar-22 Mar-23

Cash flow from Operating Activities
Profit from operations ₹ 439.0 ₹ 1,961.0 ₹ 2,683.0 ₹ 5,010.0
Receivables ₹ 1,168.0 (₹142.0) (₹1,016.0) (₹306.0)
Inventory ₹ 730.0 (₹765.0) (₹1,201.0) ₹ 658.0
Payables (₹2,689.0) ₹ 4,965.0 ₹ 5,285.0 (₹957.0)
Loans Advances ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 0.0
Other WC items (₹1,011.0) ₹ 725.0 (₹314.0) ₹ 539.0
Direct taxes (₹1,363.0) ₹ 6,744.0 ₹ 5,437.0 (₹168.0)
Net Cash flow from operating Activities (₹2,726.0) ₹ 13,488.0 ₹ 10,874.0 ₹ 4,776.0
Cash from Investing Activity -
Fixed assets purchased (₹4,669.0) (₹1,856.0) (₹1,831.0) (₹1,697.0)
Fixed assets sold ₹ 155.0 ₹ 178.0 ₹ 100.0 ₹ 123.0
Investments purchased ₹ 0.0 (₹673.0) (₹3,560.0) ₹ 0.0
Investments sold ₹ 359.0 ₹ 4.0 ₹ 0.0 ₹ 2,079.0
Interest received ₹ 471.0 ₹ 154.0 ₹ 301.0 ₹ 185.0
Dividends received ₹ 241.0 ₹ 20.0 ₹ 80.0 ₹ 319.0
Invest in subsidiaries (₹467.0) ₹ 0.0 (₹871.0) (₹191.0)
Loans to subsidiaries (₹8.0) (₹57.0) (₹51.0) (₹45.0)
Investment in group cos ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 0.0
Redemp n Canc of Shares ₹ 26.0 ₹ 10.0 ₹ 234.0 ₹ 0.0
Acquisition of companies ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 0.0
Inter corporate deposits (₹10.0) (₹30.0) ₹ 0.0 ₹ 0.0
Other investing items (₹736.0) (₹740.0) ₹ 9,117.0 ₹ 145.0
Net Cash flow from Investing Activities (₹4,638.0) (₹2,990.0) ₹ 3,519.0 ₹ 918.0
Cash from Financing Activity -
Proceeds from shares ₹ 3,889.0 ₹ 2,603.0 ₹ 19.0 ₹ 20.0
Redemption of debentures ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 0.0
Proceeds from borrowings ₹ 15,462.0 ₹ 6,985.0 ₹ 10,408.0 ₹ 887.0
Repayment of borrowings (₹9,128.0) (₹10,438.0) (₹8,517.0) (₹5,852.0)
Interest paid fin (₹2,270.0) (₹2,427.0) (₹2,272.0) (₹2,008.0)
Dividends paid (₹4.0) (₹2.0) (₹2.0) ₹ 0.0
Financial liabilities (₹194.0) (₹192.0) (₹152.0) (₹68.0)
Other financing items (₹7.0) ₹ 0.0 ₹ 0.0 ₹ 0.0
Net Cash flow from Financing Activities ₹ 7,748.0 (₹3,471.0) (₹516.0) (₹7,021.0)
Net Cash Flow ₹ 384.0 ₹ 7,027.0 ₹ 13,877.0 (₹1,327.0)
Working Capital 2020 2021 2022 2023
Inventory 4662 ₹ 3,831.92 ₹ 4,551.71 ₹ 3,718.40 ₹ 3,027.90
Accounts Payable 13502 ₹ 8,102.25 ₹ 8,115.01 ₹ 6,102.10 ₹ 7,162.60
Accounts Receivable 3251 ₹ 1,978.06 ₹ 2,087.51 ₹ 2,111.70 ₹ 2,307.72
₹ 0.00 ₹ 0.00 ₹ 0.00
Cash Changes from Working Capital
Inventory ₹ 830.1 (₹719.8) ₹ 833.3 ₹ 690.5
Accounts Receivable ₹ 1,272.9 (₹109.5) (₹24.2) (₹196.0)
Accounts Payable (₹5,399.8) ₹ 12.8 (₹2,012.9) ₹ 1,060.5
Change in WC (₹3,296.7) (₹816.5) (₹1,203.8) ₹ 1,555.0
 ARGENT RESEARCH
Historical Financial Statement - CEAT Ltd (Standalone)
Days in the Period 365 365 365 365 Days in the Period 365 365 365 365 365
All fig in Inr Crs unless stated
Standalone Income Statement Information Mar-20 Mar-21 Mar-22 Mar-23 income Statement Information Mar-20 Mar-21 Mar-22 Mar-23 4yrsAverage
Revenue from Opeartion ₹ 6,778.8 ₹ 7,609.6 ₹ 9,363.4 ₹ 11,314.9 Total Revenue growth - 12.27% 23.11% 20.54% 18.64%
Other Income ₹ 7.9 ₹ 9.6 ₹ 16.5 (₹8.3) Gross Margin% 28.75% 29.51% 22.86% 22.87% 26.00%
Total Revenue ₹ 6,786.7 ₹ 7,619.2 ₹ 9,379.9 ₹ 11,306.6 SG&A % Sales 14.42% 13.12% 10.46% 9.96% 11.99%
COGS (₹4,835.5) (₹5,371.1) (₹7,236.0) (₹8,720.5) Other Operating Expenses % Sales 3.50% 3.23% 4.54% 4.37% 3.91%
Gross Margin ₹ 1,951.2 ₹ 2,248.1 ₹ 2,143.9 ₹ 2,586.2 Depriciation % on PPE(opening balance) 8.17% 9.14% 8.81% 8.70%
SG&A Expenses (₹978.7) (₹999.9) (₹981.5) (₹1,126.3) Interest Rate(Avearge Debt) 7.8% 10.5% 11.3% 10.8% 10.11%
Other Operating Expenses (₹237.8) (₹245.9) (₹425.4) (₹494.3)
Depriciation Expenses (₹276.5) (₹339.6) (₹435.2) (₹469.3) Balance Sheet Information Mar-20 Mar-21 Mar-22 Mar-23 4yrsAverage
Interest (₹153.9) (₹178.8) (₹207.0) (₹242.1) CapEx % on Revenuue 67% 22% 18% 14% 30.23%
TAXES (₹74.2) (₹51.6) (₹24.3) (₹71.8) CapEx ₹ 4,514.0 ₹ 1,678.0 ₹ 1,731.0 ₹ 1,574.0
Dividend amount 48.54 72.81 12.14 48.54 Inventory days Ratio (Days) 69 76 65 47 64
Basic Shares Outstanding 4.05 4.05 4.05 4.05 Accounts Receivable Ratio
(Days) 36 44 45 42 42
Accounts Payabale Ratio
(Days) 64 93 84 73 79
Standalone Balance Sheet Mar-20 Mar-21 Mar-22 Mar-23 Capital Asset Turnover Ratio - PPE(Net) 1.63 1.60 1.76 1.86 1.71
Non-Current Assets Long TermBorrowings ₹ 1,704.5 ₹ 1,407.9 ₹ 1,799.6 ₹ 1,571.1 1,620.80
PPE ₹ 3,957.50 ₹ 4,556.81 ₹ 5,016.28 ₹ 5,716.12 Short Term Borrowings ₹ 257.9 ₹ 48.6 ₹ 403.9 ₹ 697.4 351.93
Intangible Assets ₹ 100.17 ₹ 98.54 ₹ 88.09 ₹ 87.80 Debt to Equity Ratio 0.7 0.4 0.7 0.6 ₹ 0.6
CWIP ₹ 983.94 ₹ 702.88 ₹ 761.59 ₹ 509.31 Dividend payout % 20.99% 16.85% 17.05% 26.07% 20.2%
Goodwill - - - - Share Capital ₹ 40.5 ₹ 40.5 ₹ 40.5 ₹ 40.5
Right of use Assets ₹ 101.85 ₹ 107.83 ₹ 224.57 ₹ 292.03 Shares outstanding 4.05 4.05 4.05 4.05
intangible assets under Development ₹ 17.81 ₹ 25.00 ₹ 46.61 ₹ 27.48 ₹ 15.04 ₹ 14.02 ₹ 12.24 ₹ 12.99 ₹ 13.58
Investments accounted using equity method - - - -
Investments ₹ 110.83 ₹ 118.11 ₹ 126.02 ₹ 130.27
Loans and Advances ₹ 4.73 ₹ 7.57 - -
Other Financial Assets ₹ 4.74 ₹ 1.34 ₹ 9.59 ₹ 8.12
Deferred tax assets - - -
Non current tax assets(net) ₹ 17.25 ₹ 56.50 ₹ 58.55 ₹ 14.14
Other non current assets ₹ 71.53 ₹ 46.36 ₹ 55.88 ₹ 47.19
Current Assets
Inventories ₹ 911.35 ₹ 1,112.50 ₹ 1,286.51 ₹ 1,124.08
Invetsments - - - -
Trade receivables ₹ 664.30 ₹ 922.26 ₹ 1,152.87 ₹ 1,302.83
Cash Equivalents ₹ 22.45 ₹ 19.56 ₹ 13.00 ₹ 50.24
Bank balance and other ₹ 6.47 ₹ 5.95 ₹ 3.67 ₹ 2.89
Loans and Advances - - - -
Other Financial Assets ₹ 18.94 ₹ 41.24 ₹ 63.81 ₹ 42.87
Assets classified as held for sale - - - -
Other Current Assets ₹ 138.68 ₹ 82.57 ₹ 53.86 ₹ 113.76
Total Assets ₹ 7,132.54 ₹ 7,905.02 ₹ 8,960.90 ₹ 9,469.13
Equity & LIABILITIES
Share Capital ₹ 40.45 ₹ 40.45 ₹ 40.45 ₹ 40.45
Reserves ₹ 2,720.15 ₹ 3,124.29 ₹ 3,109.82 ₹ 3,305.15
Non-Current Liabilities
Long term Borrowings ₹ 1,640.78 ₹ 1,341.04 ₹ 1,719.16 ₹ 1,440.56
Lease Liabilities ₹ 63.75 ₹ 66.90 ₹ 80.47 ₹ 130.55
Other financial liabilities ₹ 100.72 ₹ 12.67 ₹ 41.63 ₹ 18.81
Provisions ₹ 40.08 ₹ 44.94 ₹ 41.14 ₹ 47.30
Deferred tax Liabilities(net) ₹ 261.11 ₹ 265.60 ₹ 307.95 ₹ 379.98
Other Non - Current Liabilities - - - -
Current Liabilities
Borrowings ₹ 215.59 ₹ 0.53 ₹ 352.24 ₹ 625.17
Lease Liabilities ₹ 42.26 ₹ 48.07 ₹ 51.62 ₹ 72.22
Trade Payables ₹ 1,191.12 ₹ 1,943.60 ₹ 2,155.00 ₹ 2,270.83
Acceptance - - - -
Other financial liabilities ₹ 615.08 ₹ 755.69 ₹ 808.37 ₹ 837.37
Provisions ₹ 122.02 ₹ 107.58 ₹ 124.79 ₹ 140.34
Current tax Liabilities(net) ₹ 14.57 ₹ 44.56 ₹ 13.72 ₹ 10.04
Other Current Liabilities ₹ 64.86 ₹ 109.10 ₹ 114.54 ₹ 150.36
Total Equity and Liabilities ₹ 7,132.54 ₹ 7,905.02 ₹ 8,960.90 ₹ 9,469.13

Cash Flow Statement Mar-20 Mar-21 Mar-22 Mar-23

Cash flow from Operating Activities
Profit from operations ₹ 439.0 ₹ 1,961.0 ₹ 2,683.0 ₹ 5,010.0
Receivables ₹ 1,168.0 (₹142.0) (₹1,016.0) (₹306.0)
Inventory ₹ 730.0 (₹765.0) (₹1,201.0) ₹ 658.0
Payables (₹2,689.0) ₹ 4,965.0 ₹ 5,285.0 (₹957.0)
Loans Advances ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 0.0
Other WC items (₹1,011.0) ₹ 725.0 (₹314.0) ₹ 539.0
Direct taxes (₹1,363.0) ₹ 6,744.0 ₹ 5,437.0 (₹168.0)
Net Cash flow from operating Activities (₹2,726.0) ₹ 13,488.0 ₹ 10,874.0 ₹ 4,776.0
Cash from Investing Activity -
Fixed assets purchased (₹4,669.0) (₹1,856.0) (₹1,831.0) (₹1,697.0)
Fixed assets sold ₹ 155.0 ₹ 178.0 ₹ 100.0 ₹ 123.0
Investments purchased ₹ 0.0 (₹673.0) (₹3,560.0) ₹ 0.0
Investments sold ₹ 359.0 ₹ 4.0 ₹ 0.0 ₹ 2,079.0
Interest received ₹ 471.0 ₹ 154.0 ₹ 301.0 ₹ 185.0
Dividends received ₹ 241.0 ₹ 20.0 ₹ 80.0 ₹ 319.0
Invest in subsidiaries (₹467.0) ₹ 0.0 (₹871.0) (₹191.0)
Loans to subsidiaries (₹8.0) (₹57.0) (₹51.0) (₹45.0)
Investment in group cos ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 0.0
Redemp n Canc of Shares ₹ 26.0 ₹ 10.0 ₹ 234.0 ₹ 0.0
Acquisition of companies ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 0.0
Inter corporate deposits (₹10.0) (₹30.0) ₹ 0.0 ₹ 0.0
Other investing items (₹736.0) (₹740.0) ₹ 9,117.0 ₹ 145.0
Net Cash flow from Investing Activities (₹4,638.0) (₹2,990.0) ₹ 3,519.0 ₹ 918.0
Cash from Financing Activity -
Proceeds from shares ₹ 3,889.0 ₹ 2,603.0 ₹ 19.0 ₹ 20.0
Redemption of debentures ₹ 0.0 ₹ 0.0 ₹ 0.0 ₹ 0.0
Proceeds from borrowings ₹ 15,462.0 ₹ 6,985.0 ₹ 10,408.0 ₹ 887.0
Repayment of borrowings (₹9,128.0) (₹10,438.0) (₹8,517.0) (₹5,852.0)
Interest paid fin (₹2,270.0) (₹2,427.0) (₹2,272.0) (₹2,008.0)
Dividends paid (₹4.0) (₹2.0) (₹2.0) ₹ 0.0
Financial liabilities (₹194.0) (₹192.0) (₹152.0) (₹68.0)
Other financing items (₹7.0) ₹ 0.0 ₹ 0.0 ₹ 0.0
Net Cash flow from Financing Activities ₹ 7,748.0 (₹3,471.0) (₹516.0) (₹7,021.0)
Net Cash Flow ₹ 384.0 ₹ 7,027.0 ₹ 13,877.0 (₹1,327.0)

Working Capital 2019 2020 2021 2022 2023

Inventory ₹ 1,005.6 ₹ 939.0 ₹ 1,132.2 ₹ 1,309.6 ₹ 1,137.8
accounts receivable ₹ 726.0 ₹ 664.3 ₹ 922.3 ₹ 1,152.9 ₹ 1,302.8
acoounts Payable ₹ 1,034.0 ₹ 1,191.1 ₹ 1,943.6 ₹ 2,155.0 ₹ 2,270.8

Change in Working Capital ₹ 2,020.0 ₹ 2,021.0 ₹ 2,022.0 ₹ 2,023.0

Inventory ₹ 66.6 (₹193.2) (₹177.4) ₹ 171.8
accounts receivable ₹ 61.7 (₹258.0) (₹230.6) (₹150.0)
acoounts Payable ₹ 157.1 ₹ 752.5 ₹ 211.4 ₹ 115.8
Net ₹ 285.5 ₹ 301.3 (₹196.6) ₹ 137.7
 ARGENT RESEARCH
Acquirer Company Model - Tata Motors ltd

Forecasted Financial Statement(Stanalone Financials) Stub period

End of the period 31-03-2020 31-03-2021 31-03-2022 31-03-2023 30-03-2024 30-03-2025 30-03-2026 30-03-2027 29-03-2028 15-09-2023 31-03-2024
Days in the period 365 365 365 365 365 365 365 365 365 168 198
Fraction of Year 1 1 1 1 1 1 1 1 1 0.46 0.54

All fig in Inr Crs unless stated Forecast

# Income Statement -Standalone Mar-20 Mar-21 Mar-22 Mar-23 2024F 2025F 2026F 2027F 2028F 15-09-2023 31-03-2024
Revenue ₹ 42,800.3 ₹ 30,287.5 ₹ 48,355.4 ₹ 66,295.5 ₹ 85,692.6 ₹ 1,10,138.2 ₹ 1,40,772.0 ₹ 1,78,947.3 ₹ 2,26,262.1 ₹ 39,418.6 ₹ 46,274.0
Cost Of Sales ₹ (39,664.5) ₹ (26,944.4) ₹ (42,416.4) ₹ (56,202.9) ₹ (72,838.7) ₹ (93,617.5) ₹ (1,19,656.2) ₹ (1,52,105.2) ₹ (1,92,322.8) ₹ (33,505.8) ₹ (39,332.9)
Gross Profit ₹ 3,135.8 ₹ 3,343.0 ₹ 5,939.0 ₹ 10,092.6 ₹ 12,853.9 ₹ 16,520.7 ₹ 21,115.8 ₹ 26,842.1 ₹ 33,939.3 ₹ 5,912.8 ₹ 6,941.1
SG&A Expenses ₹ (3,305.4) ₹ (1,530.2) ₹ (2,669.0) ₹ (3,487.1) ₹ (5,046.1) ₹ (6,485.6) ₹ (8,289.4) ₹ (10,537.4) ₹ (13,323.6) ₹ (2,321.2) ₹ (2,724.9)
Other Opearting Expenses ₹ (1,609.5) ₹ (346.0) ₹ (679.4) ₹ (1,536.3) ₹ (1,847.8) ₹ (2,375.0) ₹ (3,035.5) ₹ (3,858.7) ₹ (4,879.0) ₹ (850.0) ₹ (997.8)
EBITDA ₹ (1,779.1) ₹ 1,466.8 ₹ 2,590.6 ₹ 5,069.2 ₹ 5,960.0 ₹ 7,660.2 ₹ 9,790.8 ₹ 12,445.9 ₹ 15,736.7 ₹ 2,741.6 ₹ 3,218.4
Depreciation&Amortization Expenses ₹ (3,375.3) ₹ (1,730.7) ₹ (1,760.6) ₹ (1,766.9) ₹ (1,926.4) ₹ (2,533.3) ₹ (3,308.9) ₹ (4,294.9) ₹ (5,541.6) ₹ (886.1) ₹ (1,040.3)
EBIT ₹ (5,154.3) ₹ (263.9) ₹ 830.1 ₹ 3,302.3 ₹ 4,033.6 ₹ 5,126.9 ₹ 6,481.9 ₹ 8,151.0 ₹ 10,195.1 ₹ 1,855.5 ₹ 2,178.1
Interest Expenses ₹ (1,973.0) ₹ (2,110.8) ₹ (2,121.7) ₹ (2,047.5) ₹ (1,687.7) ₹ (1,595.7) ₹ (1,513.0) ₹ (1,438.5) ₹ (1,371.4) ₹ (776.4) ₹ (911.4)
EBT ₹ (7,127.3) ₹ (2,374.7) ₹ (1,291.7) ₹ 1,254.8 ₹ 2,345.9 ₹ 3,531.2 ₹ 4,968.9 ₹ 6,712.6 ₹ 8,823.7 ₹ 1,079.1 ₹ 1,266.8
Tax Expenses ₹ (162.3) ₹ (20.7) ₹ (99.2) ₹ 1,473.3 ₹ (703.8) ₹ (1,059.4) ₹ (1,490.7) ₹ (2,013.8) ₹ (2,647.1) ₹ (323.7) ₹ (380.0)
Net Earnings ₹ (7,289.6) ₹ (2,395.4) ₹ (1,390.9) ₹ 2,728.1 ₹ 1,642.1 ₹ 2,471.8 ₹ 3,478.2 ₹ 4,698.8 ₹ 6,176.6 ₹ 755.4 ₹ 886.7

Dividend - - - ₹ 873.0 ₹ 131.37 ₹ 197.74 ₹ 278.26 ₹ 375.90 ₹ 494.12 ₹ 60.4 ₹ 70.9

No of shares Outstanding 365.90 366.20 385.40 385.50 385.50 385.50 385.50 385.50 385.50 ₹ 177.3 ₹ 208.2
Basic EPS ₹ (19.9) ₹ (6.5) ₹ (3.6) ₹ 7.1 ₹ 4.3 ₹ 6.4 ₹ 9.0 ₹ 12.2 ₹ 16.0 ₹ 2.0 ₹ 2.3
Retained Earnings 100.0% 100.0% 100.0% 68.0% 92.0% 92.0% 92.0% 92.0% 92.0% 42.3% 49.7%

All fig in Inr Crs unless stated Forecast

# Pro Forma Balance Sheet -Standalone Mar-20 Mar-21 Mar-22 Mar-23 2024F 2025F 2026F 2027F 2028F Stub period
Assets : 15-09-2023 31-03-2024
Non-Current Assets : 168 198
PPE(Net) ₹ 25,108.9 ₹ 26,324.0 ₹ 14,075.8 ₹ 14,542.3 ₹ 17,337.6 ₹ 20,872.9 ₹ 25,320.6 ₹ 30,885.6 ₹ 37,811.1 ₹ 15,828.14 ₹ 17,337.6
Net Non -Current Asssets ₹ 25,108.9 ₹ 26,324.0 ₹ 14,075.8 ₹ 14,542.3 ₹ 17,337.6 ₹ 20,872.9 ₹ 25,320.6 ₹ 30,885.6 ₹ 37,811.1 ₹ 15,828.1 ₹ 17,337.6
Current Assets :
Inventories ₹ 3,831.9 ₹ 4,551.7 ₹ 3,718.4 ₹ 3,027.9 ₹ 7,383.6 ₹ 9,490.0 ₹ 12,129.5 ₹ 15,418.9 ₹ 19,495.7 ₹ 30,783.0 ₹ 14,168.6
Trade receivables ₹ 1,978.1 ₹ 2,087.5 ₹ 2,111.7 ₹ 2,307.7 ₹ 4,225.9 ₹ 5,431.5 ₹ 6,942.2 ₹ 8,824.8 ₹ 11,158.1 ₹ 9,181.3 ₹ 4,225.9
Cash Equivalents ₹ 3,532.0 ₹ 4,318.9 ₹ 2,605.4 ₹ 1,414.6 ₹ 2,468.8 ₹ 4,640.3 ₹ 8,345.6 ₹ 13,916.0 ₹ 21,763.5 ₹ 7,564.1 ₹ 2,652.4
Net Current Assets ₹ 9,342.0 ₹ 10,958.2 ₹ 8,435.5 ₹ 6,750.3 ₹ 14,078.4 ₹ 19,561.8 ₹ 27,417.3 ₹ 38,159.7 ₹ 52,417.4 ₹ 47,528.4 ₹ 21,047.0

Equity & Liabilities :

Equity Shareholder's Fund
Share Capital ₹ 719.5 ₹ 765.8 ₹ 765.9 ₹ 766.0 ₹ 766.0 ₹ 766.0 ₹ 766.0 ₹ 766.0 ₹ 766.0 ₹ 766.02 ₹ 766.02
Reserves ₹ 17,668.1 ₹ 18,290.2 ₹ 19,178.3 ₹ 21,703.8 ₹ 23,083.2 ₹ 25,159.6 ₹ 28,081.3 ₹ 32,028.3 ₹ 37,216.6 ₹ 22,338.76 ₹ 23,083.21
Non-Current Liabilities :
Long term Borrowings ₹ 15,298.8 ₹ 16,920.5 ₹ 14,340.6 ₹ 10,750.9 ₹ 9,675.8 ₹ 8,708.2 ₹ 7,837.4 ₹ 7,053.7 ₹ 6,348.3 ₹ 10,256.4 ₹ 9,675.8
Net Non-Current Liabilities : ₹ 15,298.8 ₹ 16,920.5 ₹ 14,340.6 ₹ 10,750.9 ₹ 9,675.8 ₹ 8,708.2 ₹ 7,837.4 ₹ 7,053.7 ₹ 6,348.3 ₹ 10,256.4 ₹ 9,675.8
Current Liabilities :
Short Term Borrowings ₹ 6,204.7 ₹ 5,518.4 ₹ 9,188.5 ₹ 8,527.6 ₹ 8,527.6 ₹ 8,527.6 ₹ 8,527.6 ₹ 8,527.6 ₹ 8,527.6 ₹ 8,527.60 ₹ 8,527.60
Trade Payables ₹ 8,102.3 ₹ 8,115.0 ₹ 6,102.1 ₹ 7,162.6 ₹ 14,168.6 ₹ 18,210.5 ₹ 23,275.6 ₹ 29,587.6 ₹ 37,410.7 ₹ 30,783.0 ₹ 14,168.6
Current tax Liabilities(net) ₹ 31.5 ₹ 37.8 ₹ 49.7 ₹ 53.6 ₹ 211.1 ₹ 317.8 ₹ 447.2 ₹ 604.1 ₹ 794.1 ₹ 97.1 ₹ 114.0
Net Current Liabilities : ₹ 14,338.4 ₹ 13,671.3 ₹ 15,340.3 ₹ 15,743.8 ₹ 14,379.7 ₹ 18,528.3 ₹ 23,722.8 ₹ 30,191.7 ₹ 38,204.9 ₹ 39,407.7 ₹ 22,810.2

Acquirer Company Model - Tata Motors ltd

 All fig in Inr Crs unless stated Forecast

# Pro Forma Cash Flow Statement -Standalone Mar-20 Mar-21 Mar-22 Mar-23 2024F 2025F 2026F 2027F 2028F Stub period
168 198
Cash flow from Operating Activities
Profit Before Tax ₹ (7,127.3) ₹ (2,374.7) ₹ (1,291.7) ₹ 1,254.8 ₹ 2,345.9 ₹ 3,531.2 ₹ 4,968.9 ₹ 6,712.6 ₹ 8,823.7 ₹ 1,079.1 ₹ 1,266.8
Depreciation ₹ 3,375.3 ₹ 1,730.7 ₹ 1,760.6 ₹ 1,766.9 ₹ 1,926.4 ₹ 2,533.3 ₹ 3,308.9 ₹ 4,294.9 ₹ 5,541.6 ₹ 886.1 ₹ 1,040.3
Interest Expenses ₹ 1,973.0 ₹ 2,110.8 ₹ 2,121.7 ₹ 2,047.5 ₹ 1,926.4 ₹ 2,533.3 ₹ 3,308.9 ₹ 4,294.9 ₹ 5,541.6 ₹ 788.38 ₹ 899.34
Changes in Operating assets and Liabilities :
Inventory ₹ 730.0 ₹ (765.0) ₹ (1,201.0) ₹ 658.0 ₹ (4,355.7) ₹ (2,106.3) ₹ (2,639.5) ₹ (3,289.4) ₹ (4,076.9) ₹ (13,013.95) ₹ 8,658.20
Accounts Receivable ₹ 1,168.0 ₹ (142.0) ₹ (1,016.0) ₹ (306.0) ₹ (1,918.2) ₹ (1,205.5) ₹ (1,510.7) ₹ (1,882.6) ₹ (2,333.3) ₹ (6,873.63) ₹ 4,955.41
Accounts Payable ₹ (2,689.0) ₹ 4,965.0 ₹ 5,285.0 ₹ (957.0) ₹ 7,006.0 ₹ 4,041.9 ₹ 5,065.1 ₹ 6,312.0 ₹ 7,823.1 ₹ 23,620.41 ₹ (16,614.39)
Net Changes in Wc ₹ 732.1 ₹ 730.0 ₹ 914.8 ₹ 1,140.0 ₹ 1,413.0 ₹ 3,732.8 ₹ (3,000.8)
Income Taxes paid ₹ (1,363.0) ₹ 6,744.0 ₹ 5,437.0 ₹ (168.0) ₹ (211.1) ₹ (317.8) ₹ (447.2) ₹ (604.1) ₹ (794.1) ₹ 97.12 ₹ 114.01
Net Cash flow from operating Activities ₹ (3,933.1) ₹ 12,268.8 ₹ 11,095.6 ₹ 4,296.2 ₹ 6,719.6 ₹ 9,009.9 ₹ 12,054.4 ₹ 15,838.3 ₹ 20,525.8 ₹ 6,583.6 ₹ 319.6

Cash from Investing Activity -

(Acquisition)/Disposal of PPE ₹ 4,514.0 ₹ 1,678.0 ₹ 1,731.0 ₹ 1,574.0 ₹ (4,721.7) ₹ (6,068.6) ₹ (7,756.5) ₹ (9,860.0) ₹ (12,467.0) - ₹ (4,721.7)
Net Cash flow from Investing Activities

Cash from Financing Activity -

Issue of shares ₹ 3,889.0 ₹ 2,603.0 ₹ 19.0 ₹ 20.0 - - - - - - -
Dividends paid ₹ (4.0) ₹ (2.0) ₹ (2.0) - ₹ 131.4 ₹ 197.7 ₹ 278.3 ₹ 375.9 ₹ 494.1 ₹ 60.4 ₹ 70.9
Increase/(Decrease )in Long Term Borrowings ₹ 6,334.0 ₹ (3,453.0) ₹ 1,891.0 ₹ (4,965.0) ₹ (1,075.1) ₹ (967.6) ₹ (870.8) ₹ (783.7) ₹ (705.4) ₹ (494.54) ₹ (580.55)
Net Cash flow from Financing Activities ₹ 10,219.0 ₹ (852.0) ₹ 1,908.0 ₹ (4,945.0) ₹ (943.7) ₹ (769.8) ₹ (592.6) ₹ (407.8) ₹ (211.2) ₹ (434.1) ₹ (509.6)

Cash and cash Equivalents ,(opening balance) ₹ 1,414.6 ₹ 2,468.8 ₹ 4,640.3 ₹ 8,345.6 ₹ 13,916.0 ₹ 1,414.6 ₹ 7,564.1
Increase/(decrease) during the Year ₹ 1,054.2 ₹ 2,171.5 ₹ 3,705.3 ₹ 5,570.4 ₹ 7,847.5 ₹ 6,149.5 ₹ (4,911.7)
Cash and cash Equivalents ,(closing balance) ₹ 2,468.8 ₹ 4,640.3 ₹ 8,345.6 ₹ 13,916.0 ₹ 21,763.5 ₹ 7,564.1 ₹ 2,652.4
 Acquirer Company Model - Tata Motors ltd
Supporting Schedules of Standalone Financials of Tata Motors Ltd.

All fig in Inr Crs unless stated Forecast

Schedule A : Working Cpaital Mar-20 Mar-21 Mar-22 Mar-23 2024F 2025F 2026F 2027F 2028F Stub period
15-09-2023 31-03-2024
Days in perios 365 365 365 365 365 365 365 365 365 168 198
Revenue ₹ 42,800.30 ₹ 30,287.47 ₹ 48,355.37 ₹ 66,295.45 ₹ 85,692.56 ₹ 1,10,138.18 ₹ 1,40,771.95 ₹ 1,78,947.33 ₹ 2,26,262.13 ₹ 85,692.56 ₹ 85,692.56
COGS ₹ 39,664.48 ₹ 26,944.43 ₹ 42,416.41 ₹ 56,202.90 ₹ 72,838.68 ₹ 93,617.46 ₹ 1,19,656.16 ₹ 1,52,105.23 ₹ 1,92,322.81 ₹ 72,838.68 ₹ 72,838.68
Taxes ₹ 162.29 ₹ 20.72 ₹ 99.18 ₹ (1,473.33) ₹ 703.76 ₹ 1,059.36 ₹ 1,490.68 ₹ 2,013.77 ₹ 2,647.11 ₹ 703.76 ₹ 703.76

Inventory Days Ratio (DAYS) 35 62 32 20 37 37 37 37 37 37 37

Accounts Payable Days Ratio (DAYS) 75 110 53 47 71 71 71 71 71 71 71
Accounts Receivable Days Ratio (DAYS) 17 25 16 13 18 18 18 18 18 18 18
Income Tax Rate 19.40% 182.63% 50.08% -3.64% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0%

Working Capital
Inventory ₹ 3,831.92 ₹ 4,551.71 ₹ 3,718.40 ₹ 3,027.90 ₹ 7,383.65 ₹ 9,489.99 ₹ 12,129.53 ₹ 15,418.89 ₹ 19,495.74 ₹ 16,041.85 ₹ 7,383.65
Accounts Payable ₹ 8,102.25 ₹ 8,115.01 ₹ 6,102.10 ₹ 7,162.60 ₹ 14,168.62 ₹ 18,210.52 ₹ 23,275.58 ₹ 29,587.59 ₹ 37,410.74 ₹ 30,783.01 ₹ 14,168.62
Accounts Receivable ₹ 1,978.06 ₹ 2,087.51 ₹ 2,111.70 ₹ 2,307.72 ₹ 4,225.93 ₹ 5,431.47 ₹ 6,942.18 ₹ 8,824.80 ₹ 11,158.13 ₹ 9,181.35 ₹ 4,225.93
Income Tax payable ₹ 31.49 ₹ 37.84 ₹ 49.67 ₹ 53.60 ₹ 211.13 ₹ 317.81 ₹ 447.20 ₹ 604.13 ₹ 794.13 ₹ 97.12 ₹ 114.01

Changes in Working Capital

Inventory ₹ (4,355.75) ₹ (2,106.34) ₹ (2,639.54) ₹ (3,289.36) ₹ (4,076.85) ₹ (13,013.95) ₹ 8,658.20
Accounts Payable ₹ 7,006.02 ₹ 4,041.90 ₹ 5,065.06 ₹ 6,312.01 ₹ 7,823.15 ₹ 23,620.41 ₹ (16,614.39)
Accounts Receivable ₹ (1,918.21) ₹ (1,205.54) ₹ (1,510.71) ₹ (1,882.62) ₹ (2,333.33) ₹ (6,873.63) ₹ 4,955.41
Net Changes In WC ₹ 732.06 ₹ 730.02 ₹ 914.82 ₹ 1,140.03 ₹ 1,412.96 ₹ 3,732.83 ₹ (3,000.78)

Supporting Schedules of Standalone Financials of Tata Motors Ltd.

All fig in Inr Crs unless stated Forecast
Schedule B : PPE Schedule Mar-20 Mar-21 Mar-22 Mar-23 2024F 2025F 2026F 2027F 2028F Stub period
15-09-2023 31-03-2024
Revenue ₹ 42,800.3 ₹ 30,287.5 ₹ 48,355.4 ₹ 66,295.5 ₹ 85,692.6 ₹ 1,10,138.2 ₹ 1,40,772.0 ₹ 1,78,947.3 ₹ 2,26,262.1 ₹ 85,692.6 ₹ 85,692.6
CapEX ₹ 4,632.95 ₹ 1,671.77 ₹ 1,691.92 ₹ 1,561.22 ₹ 4,721.66 ₹ 6,068.61 ₹ 7,756.53 ₹ 9,860.00 ₹ 12,467.04 ₹ 4,721.66 ₹ 4,721.66

PPE(Net ) Opening Balance ₹ 25,108.89 ₹ 26,324.01 ₹ 14,075.76 ₹ 14,542.32 ₹ 17,337.58 ₹ 20,872.94 ₹ 25,320.56 ₹ 30,885.64 ₹ 14,542.32 ₹ 15,828.14
Capital Expenditure ₹ 1,671.77 ₹ 1,691.92 ₹ 1,561.22 ₹ 4,721.66 ₹ 6,068.61 ₹ 7,756.53 ₹ 9,860.00 ₹ 12,467.04 ₹ 2,171.96 ₹ 2,549.70
Other Addtitions/(Disposal) ₹ 1,156.18 ₹ (12,316.90) ₹ 260.92

Depreciation on Existing PPE ₹ (1,730.71) ₹ (1,760.57) ₹ (1,766.86) ₹ (1,454.23) ₹ (1,454.23) ₹ (1,454.23) ₹ (1,454.23) ₹ (1,454.23)

Depreciation on new CapEx

2024 ₹ (472.17) ₹ (472.17) ₹ (472.17) ₹ (472.17) ₹ (472.17)
2025 ₹ (606.86) ₹ (606.86) ₹ (606.86) ₹ (606.86)
2026 ₹ (775.65) ₹ (775.65) ₹ (775.65)
2027 ₹ (986.00) ₹ (986.00)
2028 ₹ (1,246.70)
Depreciation on new CapEx ₹ (472.17) ₹ (1,079.03) ₹ (1,854.68) ₹ (2,840.68) ₹ (4,087.39)

Total Depreciation Expenses ₹ (1,730.71) ₹ (1,760.57) ₹ (1,766.86) ₹ (1,926.40) ₹ (2,533.26) ₹ (3,308.91) ₹ (4,294.91) ₹ (5,541.62) ₹ (886.14) ₹ (1,040.25)

PPE(Net ) Closing Balance ₹ 26,324.01 ₹ 14,075.76 ₹ 14,542.32 ₹ 17,337.58 ₹ 20,872.94 ₹ 25,320.56 ₹ 30,885.64 ₹ 37,811.07 ₹ 15,828.14 ₹ 17,337.58
 Acquirer Company Model - Tata Motors ltd
All fig in Inr Crs unless stated
Schedule C : Debt Schedule Mar-20 Mar-21 Mar-22 Mar-23 2024F 2025F 2026F 2027F 2028F Stub period
15-09-2023 31-03-2024
Borrowings - Non Current Liabilities 168 198
Beginning of the Period ₹ 15,298.75 ₹ 16,920.51 ₹ 14,340.58 ₹ 10,750.90 ₹ 9,675.81 ₹ 8,708.23 ₹ 7,837.41 ₹ 7,053.67 ₹ 10,750.90 ₹ 10,256.36
Additions/(Repayments) ₹ 1,621.76 ₹ (2,579.93) ₹ (3,589.68) ₹ (1,075.09) ₹ (967.58) ₹ (870.82) ₹ (783.74) ₹ (705.37) ₹ (494.54) ₹ (580.55)
End of the period ₹ 16,920.51 ₹ 14,340.58 ₹ 10,750.90 ₹ 9,675.81 ₹ 8,708.23 ₹ 7,837.41 ₹ 7,053.67 ₹ 6,348.30 ₹ 10,256.36 ₹ 9,675.81

Borrowings - Current Liabilities

Beginning of the Period ₹ 6,204.66 ₹ 5,518.42 ₹ 9,188.49 ₹ 8,527.60 ₹ 8,527.60 ₹ 8,527.60 ₹ 8,527.60 ₹ 8,527.60 ₹ 8,527.60 ₹ 8,527.60
Additions/(Repayments) ₹ 686.24 ₹ (3,670.07) ₹ 660.89 - - - - -
End of the period ₹ 5,518.42 ₹ 9,188.49 ₹ 8,527.60 ₹ 8,527.60 ₹ 8,527.60 ₹ 8,527.60 ₹ 8,527.60 ₹ 8,527.60 ₹ 8,527.60 ₹ 8,527.60

Long Term Debt Average ₹ 10,213.36 ₹ 9,192.02 ₹ 8,272.82 ₹ 7,445.54 ₹ 6,700.98 ₹ 10,503.63 ₹ 9,966.08
Short Term Debt Average ₹ 8,527.60 ₹ 8,527.60 ₹ 8,527.60 ₹ 8,527.60 ₹ 8,527.60 ₹ 8,527.60 ₹ 8,527.60

Interest Expenses ₹ 1,973.00 ₹ 2,110.83 ₹ 2,121.73 ₹ 1,687.72 ₹ 1,595.74 ₹ 1,512.96 ₹ 1,438.46 ₹ 1,371.41 ₹ 788.38 ₹ 899.34

All fig in Inr Crs unless stated

Schedule D : Shareholders Equity Schedule Mar-20 Mar-21 Mar-22 Mar-23 2024F 2025F 2026F 2027F 2028F Stub period
15-09-2023 31-03-2024
Share Capital 168 198
opening Balance ₹ 766.02 ₹ 766.02 ₹ 766.02 ₹ 766.02 ₹ 766.02 ₹ 766.02 ₹ 766.02
Issue/Buy back during the year - - - - - -
closing balance ₹ 766.02 ₹ 766.02 ₹ 766.02 ₹ 766.02 ₹ 766.02 ₹ 766.02 ₹ 766.02

Reserves
Opening Balance ₹ 21,703.83 ₹ 23,083.21 ₹ 25,159.56 ₹ 28,081.29 ₹ 32,028.29 ₹ 21,703.83 ₹ 22,338.76
Dividend Paid ₹ (131.37) ₹ (197.74) ₹ (278.26) ₹ (375.90) ₹ (494.12) ₹ (60.43) ₹ (70.94)
Retained Earnings ₹ 1,510.74 ₹ 2,274.09 ₹ 3,199.99 ₹ 4,322.89 ₹ 5,682.46 ₹ 695.36 ₹ 815.39
Closing Balance ₹ 23,083.21 ₹ 25,159.56 ₹ 28,081.29 ₹ 32,028.29 ₹ 37,216.63 ₹ 22,338.76 ₹ 23,083.21
 Acquirer Company Model - Tata Motors ltd
All fig in Inr Crs unless stated
DCF Schedule

Free Cash Flow to Firm Mar-23 2024F 2025F 2026F 2027F 2028F

EBIT ₹ 3,302.31 ₹ 4,033.59 ₹ 5,126.94 ₹ 6,481.89 ₹ 8,151.02 ₹ 10,195.10

Marginal Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%

EBIT(1-T) ₹ 2,311.62 ₹ 2,823.51 ₹ 3,588.86 ₹ 4,537.32 ₹ 5,705.71 ₹ 7,136.57

Reinvetment Rate 56.51% 56.51% 56.51% 56.51% 56.51% 56.51%

Free Cash Flow to Firm ₹ 1,306.40 ₹ 1,595.70 ₹ 2,028.23 ₹ 2,564.25 ₹ 3,224.56 ₹ 4,033.20

Mid Year Convention 0.5 1.5 2.5 3.5 4.5

Discounting Rate 0.940 0.830 0.733 0.648 0.572

Pv of FCFF ₹ 1,324.72 ₹ 1,487.32 ₹ 1,660.98 ₹ 1,844.97 ₹ 2,307.64

Terminal Value Enterprise Value

Intrisic Growth Rate -8.66% Pv of Terminal Value 40282.54

WACC 13.21% Pv of FCFF 8625.63

FCFF 4033.20 Enterprise Value 48908.16

Terminal Growth Rate 7.08%
Terminal value 70404.17

Equity Value

Enterprise Value 48908.16

Debt 19278.50
cash ₹ (1,414.63)
Net Debt 17863.87

Equity Value 31044.29

No of Shares Outstanding 385.50

Intrinsic Equity Value per Share 80.53

 ARGENT RESEARCH
Target Company Model - CEAT LTD

Forecasted Financial Statement(Stanalone Financials) Stub period

End of the period 31-03-2020 31-03-2021 31-03-2022 31-03-2023 30-03-2024 30-03-2025 30-03-2026 30-03-2027 29-03-2028 15-09-2023 31-03-2024
Days in the period 365 365 365 365 365 365 365 365 365 168 198
Fraction of Year 1 1 1 1 1 1 1 1 1 0.46 0.54

All fig in Inr Crs unless stated Forecast

Income Statement -Standalone Mar-20 Mar-21 Mar-22 Mar-23 2024F 2025F 2026F 2027F 2028F 15-09-2023 31-03-2024
Revenue ₹ 6,786.7 ₹ 7,619.2 ₹ 9,379.9 ₹ 11,306.6 ₹ 14,257.0 ₹ 17,884.2 ₹ 22,320.5 ₹ 27,718.9 ₹ 34,255.3 ₹ 6,558.2 ₹ 7,698.8
Cost Of Sales ₹ (4,835.5) ₹ (5,371.1) ₹ (7,236.0) ₹ (8,720.5) ₹ (9,979.9) ₹ (12,519.0) ₹ (15,624.4) ₹ (19,403.2) ₹ (23,978.7) ₹ (4,590.7) ₹ (5,389.1)
Gross Profit ₹ 1,951.2 ₹ 2,248.1 ₹ 2,143.9 ₹ 2,586.2 ₹ 4,277.1 ₹ 5,365.3 ₹ 6,696.2 ₹ 8,315.7 ₹ 10,276.6 ₹ 1,967.5 ₹ 2,309.6
SG&A Expenses ₹ (978.7) ₹ (999.9) ₹ (981.5) ₹ (1,126.3) ₹ (1,283.1) ₹ (1,609.6) ₹ (2,008.8) ₹ (2,494.7) ₹ (3,083.0) ₹ (590.2) ₹ (692.9)
Other Opearting Expenses ₹ (237.8) ₹ (245.9) ₹ (425.4) ₹ (494.3) ₹ (557.4) ₹ (699.2) ₹ (872.6) ₹ (1,083.6) ₹ (1,339.2) ₹ (256.4) ₹ (301.0)
EBITDA ₹ 734.7 ₹ 1,002.3 ₹ 737.0 ₹ 965.6 ₹ 2,436.6 ₹ 3,056.5 ₹ 3,814.7 ₹ 4,737.3 ₹ 5,854.4 ₹ 1,120.8 ₹ 1,315.8
Depreciation&Amortization Expenses ₹ (276.5) ₹ (339.6) ₹ (435.2) ₹ (469.3) ₹ (458.8) ₹ (524.5) ₹ (606.5) ₹ (708.3) ₹ (875.1) ₹ (211.0) ₹ (247.7)
EBIT ₹ 458.2 ₹ 662.7 ₹ 301.8 ₹ 496.2 ₹ 1,977.8 ₹ 2,532.1 ₹ 3,208.3 ₹ 4,029.1 ₹ 4,979.3 ₹ 909.8 ₹ 1,068.0
Interest Expenses ₹ (153.9) ₹ (178.8) ₹ (207.0) ₹ (242.1) ₹ (229.3) ₹ (229.3) ₹ (229.3) ₹ (229.3) ₹ (229.3) ₹ (105.5) ₹ (123.8)
EBT ₹ 304.3 ₹ 483.9 ₹ 94.9 ₹ 254.1 ₹ 1,748.5 ₹ 2,302.7 ₹ 2,978.9 ₹ 3,799.7 ₹ 4,750.0 ₹ 804.3 ₹ 944.2
Tax Expenses ₹ (74.2) ₹ (51.6) ₹ (24.3) ₹ (71.8) ₹ (524.6) ₹ (690.8) ₹ (893.7) ₹ (1,139.9) ₹ (1,425.0) ₹ (241.3) ₹ (283.3)
Net Earnings ₹ 230.1 ₹ 432.3 ₹ 70.6 ₹ 182.4 ₹ 1,224.0 ₹ 1,611.9 ₹ 2,085.3 ₹ 2,659.8 ₹ 3,325.0 ₹ 563.0 ₹ 660.9

Dividend ₹ 48.5 ₹ 72.8 ₹ 12.1 ₹ 48.5 ₹ 247.75 ₹ 326.28 ₹ 422.09 ₹ 538.39 ₹ 673.04 ₹ 114.0 ₹ 133.8
No of shares Outstanding 4.05 4.05 4.05 4.05 4.05 4.05 4.05 4.05 4.05 ₹ 1.9 ₹ 2.2
Basic EPS ₹ 56.9 ₹ 106.9 ₹ 17.4 ₹ 45.1 ₹ 302.6 ₹ 398.5 ₹ 515.5 ₹ 657.6 ₹ 822.0 ₹ 139.2 ₹ 163.4
Retained Earnings 78.9% 83.2% 82.8% 73.4% 79.8% 79.8% 79.8% 79.8% 79.8% 36.7% 43.1%

All fig in Inr Crs unless stated Forecast

Pro Forma Balance Sheet -Standalone Mar-20 Mar-21 Mar-22 Mar-23 2024F 2025F 2026F 2027F 2028F Stub period
Assets : 15-09-2023 31-03-2024
Non-Current Assets : 168 198
PPE(Net) ₹ 25,108.9 ₹ 26,324.0 ₹ 14,075.8 ₹ 14,542.3 ₹ 6,422.7 ₹ 6,883.7 ₹ 7,507.1 ₹ 8,326.1 ₹ 9,338.5 ₹ 6,246.27 ₹ 6,422.7
Net Non -Current Asssets ₹ 25,108.9 ₹ 26,324.0 ₹ 14,075.8 ₹ 14,542.3 ₹ 6,422.7 ₹ 6,883.7 ₹ 7,507.1 ₹ 8,326.1 ₹ 9,338.5 ₹ 6,246.3 ₹ 6,422.7
Current Assets :
Inventories ₹ 3,831.9 ₹ 4,551.7 ₹ 3,718.4 ₹ 3,027.9 ₹ 1,749.9 ₹ 2,195.1 ₹ 2,739.6 ₹ 3,402.2 ₹ 4,204.5 ₹ 2,198.0 ₹ 1,749.9
Trade receivables ₹ 1,978.1 ₹ 2,087.5 ₹ 2,111.7 ₹ 2,307.7 ₹ 1,640.5 ₹ 2,057.9 ₹ 2,568.4 ₹ 3,189.6 ₹ 3,941.7 ₹ 1,527.5 ₹ 1,640.5
Cash Equivalents ₹ 3,532.0 ₹ 4,318.9 ₹ 2,605.4 ₹ 1,414.6 ₹ 744.5 ₹ 1,969.0 ₹ 3,480.8 ₹ 5,344.6 ₹ 7,647.0 ₹ 2,516.8 ₹ 1,529.7
Net Current Assets ₹ 9,342.0 ₹ 10,958.2 ₹ 8,435.5 ₹ 6,750.3 ₹ 4,134.9 ₹ 6,222.0 ₹ 8,788.8 ₹ 11,936.4 ₹ 15,793.1 ₹ 6,242.3 ₹ 4,920.1

Equity & Liabilities :

Equity Shareholder's Fund
Share Capital ₹ 40.5 ₹ 40.5 ₹ 40.5 ₹ 40.5 ₹ 40.5 ₹ 40.5 ₹ 40.5 ₹ 40.5 ₹ 40.5 ₹ 40.45 ₹ 40.45
Reserves ₹ 2,720.2 ₹ 3,124.3 ₹ 3,109.8 ₹ 3,305.2 ₹ 4,033.6 ₹ 4,993.0 ₹ 6,234.1 ₹ 7,817.1 ₹ 9,796.0 ₹ 3,640.51 ₹ 4,033.61
Non-Current Liabilities :
Long term Borrowings ₹ 1,704.5 ₹ 1,407.9 ₹ 1,799.6 ₹ 1,571.1 ₹ 1,571.1 ₹ 1,571.1 ₹ 1,571.1 ₹ 1,571.1 ₹ 1,571.1 ₹ 1,571.11 ₹ 1,571.11
Net Non-Current Liabilities : ₹ 1,704.5 ₹ 1,407.9 ₹ 1,799.6 ₹ 1,571.1 ₹ 1,571.1 ₹ 1,571.1 ₹ 1,571.1 ₹ 1,571.1 ₹ 1,571.1 ₹ 1,571.1 ₹ 1,571.1
Current Liabilities :
Short Term Borrowings ₹ 257.9 ₹ 5,518.4 ₹ 9,188.5 ₹ 8,527.6 ₹ 697.4 ₹ 697.4 ₹ 697.4 ₹ 697.4 ₹ 697.4 ₹ 697.39 ₹ 697.39
Trade Payables ₹ 8,102.3 ₹ 8,115.0 ₹ 6,102.1 ₹ 7,162.6 ₹ 2,160.0 ₹ 2,709.6 ₹ 3,381.7 ₹ 4,199.6 ₹ 5,189.9 ₹ 4,217.7 ₹ 2,160.0
Current tax Liabilities(net) ₹ 31.5 ₹ 37.8 ₹ 49.7 ₹ 53.6 ₹ 157.4 ₹ 207.2 ₹ 268.1 ₹ 342.0 ₹ 427.5 ₹ 72.4 ₹ 85.0
Net Current Liabilities : ₹ 8,391.6 ₹ 13,671.3 ₹ 15,340.3 ₹ 15,743.8 ₹ 2,317.4 ₹ 2,916.8 ₹ 3,649.8 ₹ 4,541.6 ₹ 5,617.4 ₹ 4,987.5 ₹ 2,942.4
 Target Company Model - CEAT LTD
All fig in Inr Crs unless stated Forecast
Pro Forma Cash Flow Statement -Standalone Mar-20 Mar-21 Mar-22 Mar-23 2024F 2025F 2026F 2027F 2028F Stub period
168 198
Cash flow from Operating Activities
Profit Before Tax ₹ 304.3 ₹ 483.9 ₹ 94.9 ₹ 254.1 ₹ 1,748.5 ₹ 2,302.7 ₹ 2,978.9 ₹ 3,799.7 ₹ 4,750.0 ₹ 804.3 ₹ 944.2
Depreciation ₹ 276.5 ₹ 339.6 ₹ 435.2 ₹ 469.3 ₹ 458.8 ₹ 524.5 ₹ 606.5 ₹ 708.3 ₹ 875.1 ₹ 211.0 ₹ 247.7
Interest Expenses ₹ 153.9 ₹ 178.8 ₹ 207.0 ₹ 242.1 ₹ 229.3 ₹ 229.3 ₹ 229.3 ₹ 229.3 ₹ 229.3 ₹ 93.97 ₹ 110.32
Changes in Operating assets and Liabilities :
Inventory ₹ 730.0 ₹ (765.0) ₹ (1,201.0) ₹ 658.0 ₹ (625.8) ₹ (445.2) ₹ (544.5) ₹ (662.6) ₹ (802.3) ₹ (1,073.87) ₹ 448.05
Accounts Receivable ₹ 1,168.0 ₹ (142.0) ₹ (1,016.0) ₹ (306.0) ₹ (338.7) ₹ (417.4) ₹ (510.5) ₹ (621.2) ₹ (752.1) ₹ (225.66) ₹ (113.00)
Accounts Payable ₹ (2,689.0) ₹ 4,965.0 ₹ 5,285.0 ₹ (957.0) ₹ 409.9 ₹ 549.6 ₹ 672.1 ₹ 817.9 ₹ 990.3 ₹ 2,467.54 ₹ (2,057.66)
Net Changes in Wc ₹ (554.6) ₹ (313.0) ₹ (382.9) ₹ (465.9) ₹ (564.1) ₹ 1,168.0 ₹ (1,722.6)
Income Taxes paid ₹ (1,363.0) ₹ 6,744.0 ₹ 5,437.0 ₹ (168.0) ₹ (157.4) ₹ (207.2) ₹ (268.1) ₹ (342.0) ₹ (427.5) ₹ 72.39 ₹ 84.98
Net Cash flow from operating Activities ₹ (1,419.3) ₹ 11,804.3 ₹ 9,242.0 ₹ 192.6 ₹ 1,724.7 ₹ 2,536.2 ₹ 3,163.8 ₹ 3,929.5 ₹ 4,862.8 ₹ 2,349.7 ₹ (335.4)

Cash from Investing Activity -

(Acquisition)/Disposal of PPE ₹ 4,514.0 ₹ 1,678.0 ₹ 1,731.0 ₹ 1,574.0 ₹ (785.6) ₹ (985.4) ₹ (1,229.9) ₹ (1,527.3) ₹ (1,887.5) - ₹ (785.6)
Net Cash flow from Investing Activities ₹ 4,514.0 ₹ 1,678.0 ₹ 1,731.0 ₹ 1,574.0 ₹ (785.6) ₹ (985.4) ₹ (1,229.9) ₹ (1,527.3) ₹ (1,887.5) - ₹ (785.6)

Cash from Financing Activity -

Issue of shares ₹ 3,889.0 ₹ 2,603.0 ₹ 19.0 ₹ 20.0 - - - - - - -
Dividends paid ₹ (4.0) ₹ (2.0) ₹ (2.0) - ₹ (247.7) ₹ (326.3) ₹ (422.1) ₹ (538.4) ₹ (673.0) ₹ 114.0 ₹ 133.8
Increase/(Decrease )in Long Term Borrowings ₹ 6,334.0 ₹ (3,453.0) ₹ 1,891.0 ₹ (4,965.0) - - - - - - -
Net Cash flow from Financing Activities ₹ 10,219.0 ₹ (852.0) ₹ 1,908.0 ₹ (4,945.0) ₹ (247.7) ₹ (326.3) ₹ (422.1) ₹ (538.4) ₹ (673.0) ₹ 114.0 ₹ 133.8

Cash and cash Equivalents ,(opening balance) ₹ 53.1 ₹ 744.5 ₹ 1,969.0 ₹ 3,480.8 ₹ 5,344.6 ₹ 53.1 ₹ 2,516.8
Increase/(decrease) during the Year ₹ 691.3 ₹ 1,224.5 ₹ 1,511.8 ₹ 1,863.8 ₹ 2,302.3 ₹ 2,463.7 ₹ (987.1)
Cash and cash Equivalents ,(closing balance) ₹ 744.5 ₹ 1,969.0 ₹ 3,480.8 ₹ 5,344.6 ₹ 7,647.0 ₹ 2,516.8 ₹ 1,529.7
 Target Company Model - CEAT LTD
Supporting Schedules of Standalone Financials of Tata Motors Ltd.
All fig in Inr Crs unless stated Forecast
Schedule A : Working Cpaital Mar-20 Mar-21 Mar-22 Mar-23 2024F 2025F 2026F 2027F 2028F Stub period
15-09-2023 31-03-2024
Days in perios 365 365 365 365 365 365 365 365 365 168 198
Revenue ₹ 6,786.72 ₹ 7,619.16 ₹ 9,379.93 ₹ 11,306.62 ₹ 14,256.99 ₹ 17,884.22 ₹ 22,320.54 ₹ 27,718.89 ₹ 34,255.28 ₹ 14,256.99 ₹ 14,256.99
COGS ₹ 4,835.52 ₹ 5,371.11 ₹ 7,235.99 ₹ 8,720.47 ₹ 9,979.89 ₹ 12,518.95 ₹ 15,624.38 ₹ 19,403.23 ₹ 23,978.70 ₹ 9,979.89 ₹ 9,979.89
Taxes ₹ 74.23 ₹ 51.59 ₹ 24.30 ₹ 71.75 ₹ 524.56 ₹ 690.82 ₹ 893.68 ₹ 1,139.92 ₹ 1,425.01 ₹ 524.56 ₹ 524.56

Inventory Days Ratio (DAYS) 69 76 65 47 64 64 64 64 64 37 37

Accounts Payable Days Ratio (DAYS) 64 93 84 73 79 79 79 79 79 71 71
Accounts Receivable Days Ratio (DAYS) 36 44 45 42 42 42 42 42 42 18 18
Income Tax Rate 19.40% 182.63% 50.08% -3.64% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0%

Working Capital
Inventory ₹ 911.35 ₹ 1,112.50 ₹ 1,286.51 ₹ 1,124.08 ₹ 1,749.90 ₹ 2,195.10 ₹ 2,739.62 ₹ 3,402.21 ₹ 4,204.48 ₹ 2,197.95 ₹ 1,749.90
Accounts Payable ₹ 849.66 ₹ 1,371.86 ₹ 1,665.37 ₹ 1,750.15 ₹ 2,160.03 ₹ 2,709.58 ₹ 3,381.71 ₹ 4,199.60 ₹ 5,189.91 ₹ 4,217.69 ₹ 2,160.03
Accounts Receivable ₹ 665.07 ₹ 923.42 ₹ 1,154.90 ₹ 1,301.88 ₹ 1,640.53 ₹ 2,057.91 ₹ 2,568.39 ₹ 3,189.57 ₹ 3,941.70 ₹ 1,527.53 ₹ 1,640.53
Income Tax payable ₹ 14.40 ₹ 94.22 ₹ 12.17 -₹ 2.61 ₹ 157.37 ₹ 207.25 ₹ 268.11 ₹ 341.98 ₹ 427.50 ₹ 72.39 ₹ 84.98

Changes in Working Capital

Inventory ₹ (625.82) ₹ (445.21) ₹ (544.51) ₹ (662.59) ₹ (802.27) ₹ (1,073.87) ₹ 448.05
Accounts Payable ₹ 409.88 ₹ 549.55 ₹ 672.13 ₹ 817.89 ₹ 990.31 ₹ 2,467.54 ₹ (2,057.66)
Accounts Receivable ₹ (338.65) ₹ (417.38) ₹ (510.48) ₹ (621.18) ₹ (752.13) ₹ (225.66) ₹ (113.00)
Net Changes In WC ₹ (554.59) ₹ (313.04) ₹ (382.86) ₹ (465.89) ₹ (564.10) ₹ 1,168.02 ₹ (1,722.60)

All fig in Inr Crs unless stated Forecast

Schedule B : PPE Schedule Mar-20 Mar-21 Mar-22 Mar-23 2024F 2025F 2026F 2027F 2028F Stub period
15-09-2023 31-03-2024
Revenue ₹ 6,786.7 ₹ 7,619.2 ₹ 9,379.9 ₹ 11,306.6 ₹ 14,257.0 ₹ 17,884.2 ₹ 22,320.5 ₹ 27,718.9 ₹ 34,255.3 ₹ 14,257.0 ₹ 14,257.0
CapEX ₹ 4,514.00 ₹ 1,678.00 ₹ 1,731.00 ₹ 1,574.00 ₹ 785.56 ₹ 985.42 ₹ 1,229.86 ₹ 1,527.31 ₹ 1,887.47 ₹ 785.56 ₹ 785.56

PPE(Net ) Opening Balance ₹ 4,159.52 ₹ 4,763.18 ₹ 5,328.94 ₹ 6,095.95 ₹ 6,422.74 ₹ 6,883.70 ₹ 7,507.11 ₹ 8,326.15 ₹ 6,095.95 ₹ 6,246.27
Capital Expenditure ₹ 1,678.00 ₹ 1,731.00 ₹ 1,574.00 ₹ 785.56 ₹ 985.42 ₹ 1,229.86 ₹ 1,527.31 ₹ 1,887.47 ₹ 361.36 ₹ 424.20
Other Addtitions/(Disposal) ₹ 1,942.03 ₹ 1,861.56 ₹ 1,871.70

Depreciation on Existing PPE ₹ (339.63) ₹ (435.20) ₹ (469.31) ₹ (406.40) ₹ (406.40) ₹ (406.40) ₹ (406.40) ₹ (406.40)

Depreciation on new CapEx

2024 ₹ (52.37) ₹ (52.37) ₹ (52.37) ₹ (52.37) ₹ (52.37)
2025 ₹ (65.69) ₹ (65.69) ₹ (65.69) ₹ (65.69)
2026 ₹ (81.99) ₹ (81.99) ₹ (122.99)
2027 ₹ (101.82) ₹ (101.82)
2028 ₹ (125.83)
Depreciation on new CapEx ₹ (52.37) ₹ (118.07) ₹ (200.06) ₹ (301.88) ₹ (468.70)

Total Depreciation Expenses ₹ (339.63) ₹ (435.20) ₹ (469.31) ₹ (458.77) ₹ (524.46) ₹ (606.45) ₹ (708.27) ₹ (875.10) ₹ (211.03) ₹ (247.73)

PPE(Net ) Closing Balance ₹ 4,763.18 ₹ 5,328.94 ₹ 6,095.95 ₹ 6,422.74 ₹ 6,883.70 ₹ 7,507.11 ₹ 8,326.15 ₹ 9,338.51 ₹ 6,246.27 ₹ 6,422.74
 Target Company Model - CEAT LTD
All fig in Inr Crs unless stated
Schedule C : Debt Schedule Mar-20 Mar-21 Mar-22 Mar-23 2024F 2025F 2026F 2027F 2028F Stub period
15-09-2023 31-03-2024
Borrowings - Non Current Liabilities 168 198
Beginning of the Period ₹ 1,704.53 ₹ 1,407.94 ₹ 1,799.63 ₹ 1,571.11 ₹ 1,571.11 ₹ 1,571.11 ₹ 1,571.11 ₹ 1,571.11 ₹ 1,571.11 ₹ 1,571.11
Additions/(Repayments) ₹ (296.59) ₹ 391.69 ₹ (228.52) - - - - - - -
End of the period ₹ 1,407.94 ₹ 1,799.63 ₹ 1,571.11 ₹ 1,571.11 ₹ 1,571.11 ₹ 1,571.11 ₹ 1,571.11 ₹ 1,571.11 ₹ 1,571.11 ₹ 1,571.11

Borrowings - Current Liabilities

Beginning of the Period ₹ 257.85 ₹ 48.60 ₹ 403.86 ₹ 697.39 ₹ 697.39 ₹ 697.39 ₹ 697.39 ₹ 697.39 ₹ 697.39 ₹ 697.39
Additions/(Repayments) ₹ 209.25 ₹ (355.26) ₹ (293.53) - - - - -
End of the period ₹ 48.60 ₹ 403.86 ₹ 697.39 ₹ 697.39 ₹ 697.39 ₹ 697.39 ₹ 697.39 ₹ 697.39 ₹ 697.39 ₹ 697.39

Long Term Debt Average ₹ 1,571.11 ₹ 1,571.11 ₹ 1,571.11 ₹ 1,571.11 ₹ 1,571.11 ₹ 1,571.11 ₹ 1,571.11
Short Term Debt Average ₹ 697.39 ₹ 697.39 ₹ 697.39 ₹ 697.39 ₹ 697.39 ₹ 697.39 ₹ 697.39

Interest Expenses ₹ 1,973.00 ₹ 2,110.83 ₹ 2,121.73 ₹ 229.33 ₹ 229.33 ₹ 229.33 ₹ 229.33 ₹ 229.33 ₹ 93.97 ₹ 110.32

All fig in Inr Crs unless stated

Schedule D : Shareholders Equity Schedule Mar-20 Mar-21 Mar-22 Mar-23 2024F 2025F 2026F 2027F 2028F Stub period
15-09-2023 31-03-2024
Share Capital 168 198
opening Balance 40.45 ₹ 40.45 ₹ 40.45 ₹ 40.45 ₹ 40.45 ₹ 40.45 ₹ 40.45 ₹ 40.45
Issue/Buy back during the year - - - - - -
closing balance ₹ 40.45 ₹ 40.45 ₹ 40.45 ₹ 40.45 ₹ 40.45 ₹ 40.45 ₹ 40.45

Reserves
Opening Balance ₹ 3,305.15 ₹ 4,033.61 ₹ 4,992.98 ₹ 6,234.06 ₹ 7,817.09 ₹ 3,305.15 ₹ 3,640.51
Dividend Paid ₹ (247.75) ₹ (326.28) ₹ (422.09) ₹ (538.39) ₹ (673.04) ₹ (113.96) ₹ (133.78)
Retained Earnings ₹ 976.21 ₹ 1,285.64 ₹ 1,663.17 ₹ 2,121.43 ₹ 2,651.98 ₹ 449.33 ₹ 526.89
Closing Balance ₹ 4,033.61 ₹ 4,992.98 ₹ 6,234.06 ₹ 7,817.09 ₹ 9,796.04 ₹ 3,640.51 ₹ 4,033.61
 Target Company Model - CEAT LTD
All fig in Inr Crs unless stated
DCF Schedule

Free Cash Flow to Firm Mar-23 2024F 2025F 2026F 2027F 2028F

EBIT ₹ 496.2 ₹ 1,977.8 ₹ 2,532.1 ₹ 3,208.3 ₹ 4,029.1 ₹ 4,979.3

Marginal Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%

EBIT(1-T) ₹ 347.37 ₹ 1,384.49 ₹ 1,772.45 ₹ 2,245.79 ₹ 2,820.35 ₹ 3,485.54

Reinvetment Rate 75.13% 75.13% 75.13% 75.13% 75.13% 75.13%

Free Cash Flow to Firm ₹ 260.98 ₹ 1,040.17 ₹ 1,331.64 ₹ 1,687.26 ₹ 2,118.93 ₹ 2,618.69

Mid Year Convention 0.5 1.5 2.5 3.5 4.5

Discounting Rate 0.937 0.822 0.721 0.633 0.556

Pv of FCFF ₹ 974.42 ₹ 1,094.75 ₹ 1,217.30 ₹ 1,341.58 ₹ 1,455.02

Terminal Value Enterprise Value

Intrisic Growth Rate 2.82% Pv of Terminal Value 22664.81

WACC 13.95% Pv of FCFF 6083.07

FCFF 2618.69 Enterprise Value 28747.88

Terminal Growth Rate 7.08%
Terminal value 40791.21

Equity Value

Enterprise Value 28747.88

Debt 2268.50
cash ₹ (50.24)
Net Debt 2218.26

Equity Value 26529.62

No of Shares Outstanding 4.05

Intrinsic Equity Value per Share 6,558.60

 ARGENT RESEARCH
Acquirer Company - Tata Motors Ltd Target Company - CEAT Ltd
Self Sustained Growth Rate Mar-20 Mar-21 Mar-22 Mar-23 Self Sustained Growth Rate
Mar-20 Mar-21 Mar-22 Mar-23

# Return on Equity -39.64% -12.57% -6.97% 12.14% Return on Investment 0.13% 13.66% 2.24% 5.45%
Retained earnings % 100.00% 100.00% 100.00% 68.00% Retained earnings % 78.90% 83.16% 82.80% 73.39%
Intrinsic Growth Rate -39.64% -12.57% -4.74% 8.26% Intrinsic Growth Rate 0.10% 11.36% 1.64% 4.00%
Average -12.18% Average 4.28%
Median -8.66% Median 2.82%

Reinvestment Rate Mar-20 Mar-21 Mar-22 Mar-23 Reinvestment Rate Mar-20 Mar-21 Mar-22 Mar-23
EBIT (₹5,154.3) (₹263.9) ₹ 830.1 ₹ 3,302.3 EBIT ₹ 458.2 ₹ 662.7 ₹ 301.8 ₹ 496.2
Marginal Tax Rate 30.00% 30.00% 30.00% 30.00% Marginal Tax Rate 30.00% 30.00% 30.00% 30.00%

Capital Expenditure ₹ 4,633.0 ₹ 1,671.8 ₹ 1,691.9 ₹ 1,561.2 Capital Expenditure ₹ 4,514.0 ₹ 1,678.0 ₹ 1,731.0 ₹ 1,574.0
Depreciation ₹ 3,375.3 ₹ 1,730.7 ₹ 1,760.6 ₹ 1,766.9 Depreciation (₹276.5) (₹339.6) (₹435.2) (₹469.3)
Net Capex ₹ 1,257.7 (₹58.9) (₹68.6) (₹205.6) Net Capex ₹ 4,237.5 ₹ 1,338.4 ₹ 1,295.8 ₹ 1,104.7
change in wc (₹3,296.7) (₹816.5) (₹1,203.8) ₹ 1,555.0 change in wc ₹ 285.5 ₹ 301.3 (₹196.6) ₹ 137.7
Reivestment (₹2,039.1) (₹875.4) (₹1,272.4) ₹ 1,349.3 Reivestment ₹ 4,523.0 ₹ 1,639.7 ₹ 1,099.2 ₹ 1,242.3
EBIT(1-T) -₹ 3,608.04 -₹ 184.72 ₹ 581.04 ₹ 2,311.62 EBIT(1-T) ₹ 320.75 ₹ 463.86 ₹ 211.28 ₹ 347.37
Reinvestment Rate 56.51% 473.91% -219.00% 58.37% Reinvestment Rate 14.10 3.53 5.20 3.58
Average 103.8% Average 761.3%
Median 56.51% Median 438.95%

Note : Reinvestment Rate considered for CEAT LTD is

Reinvestment Rate of Rubber&Tyer sector Rate

Rubber & Tyre sector (INDIA) Reinvestment Rate is @ 75.73%

 ARGENT RESEARCH
Risk Free Rate R(f)
# Based on Credit Default Spread
10 Year GOI BOND YTM 7.16%

CDS spread of INDIA 1.67%

CDS spread of USA 0.32%

Adjusted Default Spread 1.35%

# Risk Free Rate R(f) 5.81%

 ARGENT RESEARCH
# Enterprise Risk Premium Nifty 10 year Monthly Returns GOI 10 year Bond Monthly Returns
Date Price Returns Date Price Returns
Standard Deviation of Nifty50 Index 4.76% 01-08-2013 5471.8 - 01-08-2013 8.596 -
Standard Deviation of GOI Treasury Bond 2.58% 01-09-2013 5735.3 4.82% 01-09-2013 8.766 1.98%
Adj. Default Spread of INDIA 1.35% 01-10-2013 6299.15 9.83% 01-10-2013 8.625 -1.61%
Developed Country ERP(USA) 5.94% 01-11-2013 6176.1 -1.95% 01-11-2013 9.044 4.86%
01-12-2013 6304 2.07% 01-12-2013 8.82 -2.48%
Country ERP(INDIA) 2.49% 01-01-2014 6089.5 -3.40% 01-01-2014 8.77 -0.57%
01-02-2014 6276.95 3.08% 01-02-2014 8.862 1.05%
# Total ERP 8.43% 01-03-2014 6704.2 6.81% 01-03-2014 8.804 -0.65%

01-04-2014 6696.4 -0.12% 01-04-2014 8.828 0.27%

01-05-2014 7229.95 7.97% 01-05-2014 8.645 -2.07%
01-06-2014 7611.35 5.28% 01-06-2014 8.744 1.15%
01-07-2014 7721.3 1.44% 01-07-2014 8.718 -0.30%
01-08-2014 7954.35 3.02% 01-08-2014 8.559 -1.82%
01-09-2014 7964.8 0.13% 01-09-2014 8.511 -0.56%
01-10-2014 8322.2 4.49% 01-10-2014 8.278 -2.74%
01-11-2014 8588.25 3.20% 01-11-2014 8.087 -2.31%
01-12-2014 8282.7 -3.56% 01-12-2014 7.855 -2.87%
01-01-2015 8808.9 6.35% 01-01-2015 7.691 -2.09%
01-02-2015 8844.6 0.41% 01-02-2015 7.724 0.43%
01-03-2015 8491 -4.00% 01-03-2015 7.738 0.18%
01-04-2015 8181.5 -3.65% 01-04-2015 7.86 1.58%
01-05-2015 8433.65 3.08% 01-05-2015 7.815 -0.57%
01-06-2015 8368.5 -0.77% 01-06-2015 7.861 0.59%
01-07-2015 8532.85 1.96% 01-07-2015 7.806 -0.70%
01-08-2015 7971.3 -6.58% 01-08-2015 7.784 -0.28%
01-09-2015 7948.9 -0.28% 01-09-2015 7.539 -3.15%
01-10-2015 8065.8 1.47% 01-10-2015 7.64 1.34%
01-11-2015 7935.25 -1.62% 01-11-2015 7.786 1.91%
01-12-2015 7946.35 0.14% 01-12-2015 7.758 -0.36%
01-01-2016 7563.55 -4.82% 01-01-2016 7.779 0.27%
01-02-2016 6987.05 -7.62% 01-02-2016 7.623 -2.01%
01-03-2016 7738.4 10.75% 01-03-2016 7.459 -2.15%
01-04-2016 7849.8 1.44% 01-04-2016 7.435 -0.32%
01-05-2016 8160.1 3.95% 01-05-2016 7.471 0.48%
01-06-2016 8287.75 1.56% 01-06-2016 7.448 -0.31%
01-07-2016 8638.5 4.23% 01-07-2016 7.163 -3.83%
01-08-2016 8786.2 1.71% 01-08-2016 7.11 -0.74%
01-09-2016 8611.15 -1.99% 01-09-2016 6.958 -2.14%
01-10-2016 8638 0.31% 01-10-2016 6.885 -1.05%
01-11-2016 8224.5 -4.79% 01-11-2016 6.243 -9.32%
01-12-2016 8185.8 -0.47% 01-12-2016 6.512 4.31%
01-01-2017 8561.3 4.59% 01-01-2017 6.407 -1.61%
01-02-2017 8879.6 3.72% 01-02-2017 6.87 7.23%
01-03-2017 9173.75 3.31% 01-03-2017 6.658 -3.09%
01-04-2017 9304.05 1.42% 01-04-2017 6.961 4.55%
01-05-2017 9621.25 3.41% 01-05-2017 6.661 -4.31%
01-06-2017 9520.9 -1.04% 01-06-2017 6.511 -2.25%
01-07-2017 10077.1 5.84% 01-07-2017 6.465 -0.71%
01-08-2017 9917.9 -1.58% 01-08-2017 6.525 0.93%
01-09-2017 9788.6 -1.30% 01-09-2017 6.663 2.11%
01-10-2017 10335.3 5.59% 01-10-2017 6.862 2.99%
01-11-2017 10226.55 -1.05% 01-11-2017 7.058 2.86%
01-12-2017 10530.7 2.97% 01-12-2017 7.326 3.80%
01-01-2018 11027.7 4.72% 01-01-2018 7.43 1.42%
01-02-2018 10492.85 -4.85% 01-02-2018 7.726 3.98%
01-03-2018 10113.7 -3.61% 01-03-2018 7.398 -4.25%
01-04-2018 10739.35 6.19% 01-04-2018 7.767 4.99%
01-05-2018 10736.15 -0.03% 01-05-2018 7.826 0.76%
01-06-2018 10714.3 -0.20% 01-06-2018 7.903 0.98%
01-07-2018 11356.5 5.99% 01-07-2018 7.772 -1.66%
01-08-2018 11680.5 2.85% 01-08-2018 7.951 2.30%
01-09-2018 10930.45 -6.42% 01-09-2018 8.024 0.92%
01-10-2018 10386.6 -4.98% 01-10-2018 7.853 -2.13%
01-11-2018 10876.75 4.72% 01-11-2018 7.607 -3.13%
01-12-2018 10862.55 -0.13% 01-12-2018 7.37 -3.12%
01-01-2019 10830.95 -0.29% 01-01-2019 7.483 1.53%
01-02-2019 10792.5 -0.36% 01-02-2019 7.591 1.44%
01-03-2019 11623.9 7.70% 01-03-2019 7.346 -3.23%
01-04-2019 11748.15 1.07% 01-04-2019 7.414 0.93%
01-05-2019 11922.8 1.49% 01-05-2019 7.032 -5.15%
01-06-2019 11788.85 -1.12% 01-06-2019 6.879 -2.18%
01-07-2019 11118 -5.69% 01-07-2019 6.369 -7.41%
01-08-2019 11023.25 -0.85% 01-08-2019 6.556 2.94%
01-09-2019 11474.45 4.09% 01-09-2019 6.695 2.12%
01-10-2019 11877.45 3.51% 01-10-2019 6.643 -0.78%
01-11-2019 12056.05 1.50% 01-11-2019 6.46 -2.75%
01-12-2019 12168.45 0.93% 01-12-2019 6.554 1.46%
01-01-2020 11962.1 -1.70% 01-01-2020 6.599 0.69%
01-02-2020 11201.75 -6.36% 01-02-2020 6.371 -3.46%
01-03-2020 8597.75 -23.25% 01-03-2020 6.138 -3.66%
01-04-2020 9859.9 14.68% 01-04-2020 6.11 -0.46%
01-05-2020 9580.3 -2.84% 01-05-2020 6.013 -1.59%
01-06-2020 10302.1 7.53% 01-06-2020 5.888 -2.08%
01-07-2020 11073.45 7.49% 01-07-2020 5.837 -0.87%
01-08-2020 11387.5 2.84% 01-08-2020 6.078 4.13%
01-09-2020 11247.55 -1.23% 01-09-2020 6.015 -1.04%
01-10-2020 11642.4 3.51% 01-10-2020 5.881 -2.23%
01-11-2020 12968.95 11.39% 01-11-2020 5.911 0.51%
01-12-2020 13981.75 7.81% 01-12-2020 5.894 -0.29%
01-01-2021 13634.6 -2.48% 01-01-2021 5.949 0.93%
01-02-2021 14529.15 6.56% 01-02-2021 6.229 4.71%
01-03-2021 14690.7 1.11% 01-03-2021 6.177 -0.83%
01-04-2021 14631.1 -0.41% 01-04-2021 6.03 -2.38%
01-05-2021 15582.8 6.50% 01-05-2021 6.022 -0.13%
01-06-2021 15721.5 0.89% 01-06-2021 6.051 0.48%
01-07-2021 15763.05 0.26% 01-07-2021 6.204 2.53%
01-08-2021 17132.2 8.69% 01-08-2021 6.215 0.18%
01-09-2021 17618.15 2.84% 01-09-2021 6.223 0.13%
01-10-2021 17671.65 0.30% 01-10-2021 6.388 2.65%
01-11-2021 16983.2 -3.90% 01-11-2021 6.326 -0.97%
01-12-2021 17354.05 2.18% 01-12-2021 6.454 2.02%
01-01-2022 17339.85 -0.08% 01-01-2022 6.684 3.56%
01-02-2022 16793.9 -3.15% 01-02-2022 6.77 1.29%
01-03-2022 17464.75 3.99% 01-03-2022 6.843 1.08%
01-04-2022 17102.55 -2.07% 01-04-2022 7.139 4.33%
01-05-2022 16584.55 -3.03% 01-05-2022 7.415 3.87%
01-06-2022 15780.25 -4.85% 01-06-2022 7.45 0.47%
01-07-2022 17158.25 8.73% 01-07-2022 7.32 -1.74%
01-08-2022 17759.3 3.50% 01-08-2022 7.188 -1.80%
01-09-2022 17094.35 -3.74% 01-09-2022 7.398 2.92%
01-10-2022 18012.2 5.37% 01-10-2022 7.445 0.64%
01-11-2022 18758.35 4.14% 01-11-2022 7.28 -2.22%
01-12-2022 18105.3 -3.48% 01-12-2022 7.327 0.65%
01-01-2023 17662.15 -2.45% 01-01-2023 7.343 0.22%
01-02-2023 17303.95 -2.03% 01-02-2023 7.457 1.55%
01-03-2023 17359.75 0.32% 01-03-2023 7.315 -1.90%
01-04-2023 18065 4.06% 01-04-2023 7.116 -2.72%
01-05-2023 18534.4 2.60% 01-05-2023 6.989 -1.78%
01-06-2023 19189.05 3.53% 01-06-2023 7.11 1.73%
01-07-2023 19564.5 1.96% 01-07-2023 7.095 -0.21%

Average Returns 1.19% Average Returns -0.13%

Median Returns 1.42% Median Returns -0.21%
Std.Deviation 4.76% Std.Deviation 2.58%
 ARGENT RESEARCH

Beta Calculation - Tata Motors Ltd

# Comp Companies country Tax Rate Debt Market Cap

Debt/Equity
Levered Beta
1 Ashok Leyland INDIA 30.00% 31160.9 51059.23 0.610 1.297
2 M&M INDIA 30.00% 92246.9 190906.53 0.483 1.127
3 Bajaj Auto INDIA 30.00% 124.23 137097.11 0.001 1.043
4 Eicher Motors INDIA 30.00% 288.41 91683.28 0.003 0.906
5 TVS Motor Co. INDIA 30.00% 22375.6 63846.32 0.350 0.999
6 Hero Motocorp INDIA 30.00% 567.54 61674.54 0.009 0.962

AVERAGE 30.00% 24460.59 99377.835 0.246 1.056

MEDIAN 30.00% 11471.56 77764.8 0.148 1.021

Average Levered Beta of comparable companies 1.056 Revenue Bifurcation of Tata Motors LTD (all fig in Crs.)
Average Debt/Equity of comparable companies 0.246 Segment year Revenue weights weighted Beta
Average Tax Rate for Indian Companies 30.00% Commercial vehicles
FY2023 70,816.00 0.07 0.06
Passengers Vehicles
FY2023 5,40,965.00 0.50 0.45
# Average Unlevered beta of Comparable companies 0.90 Electric Vehicles FY2023 47,792.00 0.04 0.04
Jaguar Land Rover FY2023 3,72,217.00 0.35 0.31
Fin Services FY2023 43,338.00 0.04 0.04
# Calculation of Beta of Tata Motors Ltd Total 10,75,128.00 1 0.90
Debt 20431.86
Market Capitalization229960
Tax Rate 30.00%
Debt/Equity Ratio 0.09
Weighted Unlevered Beta 0.90

Levered Beta 0.96

 ARGENT RESEARCH
All fig in Inr Crs unless stated

Beta Calculation - CEAT Ltd

# Comp Companies country Tax Rate Debt Market Cap Debt/Equity
Levered Beta

1 MRF INDIA 30.00% 3013.61 46155.96 0.065 1.30

2 Apollo Tyres INDIA 30.00% 6420.53 24238.63 0.265 1.30
3 JK Tyre & Industries INDIA 30.00% 4882.35 6446.32 0.757 1.04
4 Balkrishna Industries INDIA 30.00% 3346.53 46442.52 0.072 0.91

AVERAGE 30.00% 4415.755 30820.8575 0.143 1.136

MEDIAN 30.00% 4114.44 35197.295 0.117 1.170

Average Levered Beta of comparable companies 1.136

Average Debt/Equity of comparable companies 0.143
Average Tax Rate for Indian Companies 30.00%

# Average Unlevered beta of Comparable companies 1.03

Calculation of Beta of Tata Motors Ltd

# Debt 2295.47
Market Capitalization 8934.01
Tax Rate 30.00%
Debt/Equity Ratio 0.26
Weighted Unlevered Beta 1.03

Levered Beta 1.22

 ARGENT RESEARCH
Tata Motors Ltd CEAT Ltd

# Cost Of Equity Cost Of Equity

Risk Free Rate 5.81% Risk Free Rate 5.81%

Total ERP 8.43% Total ERP 8.43%
Beta 0.96 Beta 1.22
# Cost of Equity Ke 13.87% Cost of Equity Ke 16.07%

# Cost of Debt Cost of Debt

Country Default Spread 2.69% Country Default Spread 2.69%

CRISIL Long Term Ratings AA+ CRISIL Long Term Ratings AA+
Default Spreads 0.28% Default Spreads 0.28%

Risk Free Rate 5.81% Risk Free Rate 5.81%

# Cost Of Debt Kd 8.78% Cost Of Debt Kd 8.78%

Weighted Average Cost OF Capital Weighted Average Cost OF Capital

Book Value of Debt 20431.8599 Book Value of Debt 2268.5

Pre-Tax Cost of Debt 8.78% Pre-Tax Cost of Debt 8.78%
Interest Expenses 2047.51 Interest Expenses 242.1
Interest cost 10.02% Interest cost 10.67%
Average Maturity period 5years Average Maturity period 5years

Market Value of Debt 20656.55 Market Value of Debt 2435.23

Market Value of Equity 229960.00 Market Value of Equity 8934.01

Marginal Tax Rate 30.00% Marginal Tax Rate 30.00%
Cost of Equity 13.87% Cost of Equity 16.07%
Post-Tax Cost Of Debt 6.15% Post-Tax Cost Of Debt 6.15%

WACC 13.21% WACC 13.95%