ASSUMPTIONS

INCOME STATEMENT ASSUMPTIONS

SCENARIOS:
CASE 1
Selected Case 3 CASE 2
CASE 3

INR ( In Lakhs ) FY 17 Actual FY18 Actual FY19 Actual

I. Total income 1,345,262 1,624,481 1,996,146
Growth percentage 20.76% 22.88%

Case 1
Case 2
Case 3

II. Total expenses 1,237,491 1,469,561 1,800,241

% of sales 91.99% 90.46% 90.19%

Case 1
Case 2
Case 3

III. EBIT 107,771 154,920 195,905

% of sales 8.01% 9.54% 9.81%

Case 1
Case 2
Case 3

IV. Tax percentage 29.00% 29.00% 29.00%

Case 1
Case 2
Case 3

Depreciation and amortisation expense 11,053 13,143 16,284

% of sales 0.82% 0.81% 0.82%

Case 1
Case 2
Case 3
Optimistic Higher than historical average
Base Historical average
Worst Worst than historical average

FY20 Actual FY21 Forecast FY22 Forecast FY23 Forecast FY24 Forecast
2,120,477 2,409,286 2,737,431 3,110,269 3,533,887
6.23% 13.62% 13.62% 13.62% 13.62%

19.62% 19.62% 19.62% 19.62%

16.62% 16.62% 16.62% 16.62%
13.62% 13.62% 13.62% 13.62%

1,909,909 2,257,019 2,564,425 2,913,700 3,310,546

90.07% 93.68% 93.68% 93.68% 93.68%

87.68% 87.68% 87.68% 87.68%

90.68% 90.68% 90.68% 90.68%
93.68% 93.68% 93.68% 93.68%

210,568 152,267 173,006 196,569 223,342

9.93% 6.32% 6.32% 6.32% 6.32%

12.32% 12.32% 12.32% 12.32%

9.32% 9.32% 9.32% 9.32%
6.32% 6.32% 6.32% 6.32%

29.00% 29.00% 29.00% 29.00% 29.00%

25.00% 25.00% 25.00% 25.00%

29.00% 29.00% 29.00% 29.00%
29.00% 29.00% 29.00% 29.00%

34,796 36,139 41,061 46,654 53,008

1.64% 1.50% 1.50% 1.50% 1.50%

0.70% 0.70% 0.70% 0.70%

1.02% 1.02% 1.02% 1.02%
1.50% 1.50% 1.50% 1.50%
BALANCE SHEET ASSUMPTIONS
SCENARIOS:
CASE 1
Selected Case 3 CASE 2
CASE 3

INR ( In Lakhs ) FY 17 Actual FY18 Actual FY19 Actual

I. Total current Assets 673,570 760,101 958,730
Growth percentage 12.85% 26.13%

Case 1
Case 2
Case 3

II. Total current liabilities 402,775 431,538 546,193

% of sales 7.14% 26.57%

Case 1
Case 2
Case 3

III. Property, Plant and Equipment ( Capex ) 85,316 110,204 118,231

% of sales 6.34% 6.78% 5.92%

Case 1
Case 2
Case 3
Optimistic Higher than historical average
Base Historical average
Worst Worst than historical average

FY20 Actual FY21 Forecast FY22 Forecast FY23 Forecast FY24 Forecast
1,012,030 1,131,854 1,265,866 1,415,744 1,583,369
5.56% 11.84% 11.84% 11.84% 11.84%

17.84% 17.84% 17.84% 17.84%

14.84% 14.84% 14.84% 14.84%
11.84% 11.84% 11.84% 11.84%

562,655 648,404 747,220 861,097 992,328

3.01% 15.24% 15.24% 15.24% 15.24%

9.24% 9.24% 9.24% 9.24%

12.24% 12.24% 12.24% 12.24%
15.24% 15.24% 15.24% 15.24%

128,526 151,303 171,911 195,325 221,928

6.06% 6.28% 6.28% 6.28% 6.28%

9.28% 9.28% 9.28% 9.28%

6.28% 6.28% 6.28% 6.28%
6.28% 6.28% 6.28% 6.28%
MODEL
Income Statement

INR ( In Lakhs ) FY 17 Actual FY18 Actual

I. Total income 1,345,262 1,624,481
II. Total expenses 1,237,491 1,469,561
III. EBIT 107,771 154,920
Tax rate 29.00% 29.00%
IV. Taxes 31,254 44,927
V. Net Operating Profit After Taxes (NOPAT) 76,517 109,993

Balance Sheet
INR ( In Lakhs ) FY 17 Actual FY18 Actual
Property, Plant and Equipment ( Beginning) 74,083 85,316
D&A (11,053) (13,143)
CAPEX 22,286 38,031
Property, Plant and Equipment ( Ending ) 85,316 110,204

Total current Assets 673,570 760,101

Total current liabilities 402,775 431,538
Working Capital 270,795 328,563
Changes in working capital 57,768

Free Cash Flows

INR ( In Lakhs ) FY 17 Actual FY18 Actual
Net Operating Profit After Taxes (NOPAT) 76,517 109,993
ADD:D&A 11,053 13,143
Gross Cash Flow 87,570 123,136
LESS:Capex 22,286 38,031
LESS:Increase in Working Capital - 57,768
Net Cash Flow 65,284 27,337
FY19 Actual FY20 Actual FY21 Forecast FY22 Forecast FY23 Forecast
1,996,146 2,120,477 2,409,286 2,737,431 3,110,269
1,800,241 1,909,909 2,257,019 2,564,425 2,913,700
195,905 210,568 152,267 173,006 196,569
29.00% 29.00% 29.00% 29.00% 29.00%
56,812 61,065 44,157 50,172 57,005
139,093 149,503 108,110 122,834 139,564

FY19 Actual FY20 Actual FY21 Forecast FY22 Forecast FY23 Forecast
110,204 118,231 128,526 151,303 171,911
(16,284) (34,796) (36,139) (41,061) (46,654)
24,311 45,091 58,916 61,669 70,068
118,231 128,526 151,303 171,911 195,325

958,730 1,012,030 1,131,854 1,265,866 1,415,744

546,193 562,655 648,404 747,220 861,097
412,537 449,375 483,451 518,646 554,648
83,974 36,838 34,076 35,195 36,002

FY19 Actual FY20 Actual FY21 Forecast FY22 Forecast FY23 Forecast
139,093 149,503 108,110 122,834 139,564
16,284 34,796 36,139 41,061 46,654
155,377 184,299 144,249 163,896 186,218
24,311 45,091 58,916 61,669 70,068
83,974 36,838 34,076 35,195 36,002
47,092 102,370 51,257 67,032 80,148
FY24 Forecast
3,533,887
3,310,546
223,341
29.00%
64,769
158,572

FY24 Forecast
195,325
(53,008)
79,612
221,928

1,583,369
992,328
591,041
36,393

FY24 Forecast
158,572
53,008
211,580
79,612
36,393
95,576
 WEIGHTED AVERAGE COST OF CAPITAL (WACC)

ASSUMPTIONS AND CALCULATIONS

TOTAL EQUITY TO CAPITAL 99.53%

TOTAL DEBT TO CAPITAL 0.47%

RISK FREE RATE 6.50%

EQUITY BETA 0.81
MARKET RISK PREMIUM 5.00%
COST OF EQUITY 10.55%

PRE-TAX COST OF DEBT 3.22%

MARGINAL TAX RATE 29%
COST OF DEBT 2.29%

WEIGHTED COST OF EQUITY 10.50%

WEIGHTED COST OF DEBT 0.01%

WACC 10.51%

NOTES
1.Interest expense taken from financial reports and used to calculate the pre tax cost of debt
2.Risk free rate and market risk premium taken from rbi website
 SHARES OUTSTANDING ( IN LAKHS ) 8878
SHARE PRICE 1,740.00
MARKET CAP 15,447,720

DEBT 72,287

e pre tax cost of debt

 DCF VALUATION

WACC 10.51%
PERPETUAL GROWTH RATE 2%

INR ( IN LAKHS ) FY 17 Actual FY18 Actual

NET CASH FLOWS 65,284 27,337
DISCOUNT FACTOR
PRESENT VALUE

TERMINAL VALUE 1,145,359

DISCOUNTED TERMINAL VALUE 767,912
ENTERPRISE VALUE 992,644 CASH F
ADD: 70,000
NON OPERATING ASSETS INCLUDING CASH
60,000
Investments 11,357
Cash and cash equivalents 7,549 50,000
Bank balances other than (iii) above 30,564
40,000
LESS:
Total Debt 72,287 30,000
Non Controlling Interest 440
20,000
VALUE OF EQUITY 969,387
SHARES OUTSTANDING 8,878 10,000
INTRINSIC SHARE VALUE 109 -
DOWNSIDE 1,631
MARKET SHARE VALUE 1740 FY21 Forecast FY22 Forecast
 FY19 Actual FY20 Actual FY21 Forecast FY22 Forecast FY23 Forecast
47,092 102,370 51,257 67,032 80,148
0.90 0.82 0.74
46,381 54,887 59,384

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CASH FLOWS
Editing this shape or saving this workbook into a different file
70,000 format will permanently break the chart.
60,000

50,000

40,000

30,000

20,000

10,000

FY21 Forecast FY22 Forecast FY23 Forecast FY24 Forecast

 FY24 Forecast
95,576
0.67
64,079

your version of Excel.

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SOURCES
INCOME STATEMENT
INR ( IN LAKHS )

PARTICULARS

I. Revenue from operations

II. Other income
III. Total income (I +II)

IV. Expenses:
Cost of materials and components consumed
Excise duty
Purchase of stock-in-trade
Changes in inventories of finished goods, stock-in-trade and work-in-progress
Employee benefits expense
Finance costs
Depreciation and amortisation expense
Other expenses
Total expenses

V. Profit before share of profit/(loss) of an associate and a joint venture and

exceptional item and tax (III - IV) (EBIT)

Share of profit/ (loss) of:

Associate
Joint venture
VII. Profit before exceptional item and tax (V - VI)
VIII. Exceptional item
IX. Profit before tax (VII - VIII)
X. Tax expense:
Current tax
Deferred tax
Total tax

XI. Profit for the year (IX - X)

 FY17 A FY18 A FY19 A FY20 A

1,338,213 1,615,595 1,977,852 2,105,154

7,049 8,886 18,294 15,323
1,345,262 1,624,481 1,996,146 2,120,477

864,664 1,045,282 1,223,063 1,304,234

12,130 3,618 - -
117,450 221,201 294,003 299,080
-31,371 -97,861 -77,641 -87,807
78,747 88,508 101,927 119,942
3,774 5,292 5,254 16,617
11,053 13,143 16,284 34,796
181,044 190,378 237,351 223,047
1,237,491 1,469,561 1,800,241 1,909,909

107,771 154,920 195,905 210,568

28 -37 7 54
-205 -240 -223 -457
107,594 154,643 195,689 210,165
10,269 1,665 - -
97,325 152,978 195,689 210,165

30,211 44,996 61,750 57,020

-2,614 -2,209 -4,926 3,879
27,597 42,787 56,824 60,899

69,728 110,191 138,865 149,266

BALANCE SHEET
INR ( IN LAKHS )

PARTICULARS FY17 A

ASSETS

(1) Non-current assets

(a) Property, plant and equipment 85,316
(b) Capital work-in-progress 14,324
(c) Investment property 1,065
(d) Goodwill 12,301
(e) Other intangible assets 20,190
(f) Intangible assets under development 883
(g) Financial assets
(i) Investments 3,701
(ii) Other financial assets 11,312
(iii) Loans receivables -
(h) Deferred tax asset (net) 359
(i) Other non-current assets 9,485
(j) Income tax assets (net) 8,284
(k) Right-of-use assets -
167,220

(2) Current assets

(a) Inventories 492,574
(b) Financial assets
(i) Investments 39,372
(ii) Trade receivables 20,760
(iii) Cash and cash equivalents 67,800
(iv) Bank balances other than (iii) above 10,093
(v) Other financial assets 28,729
(vi) Loans Receivables -
(c) Other current assets 14,242
673,570

TOTAL ASSETS 840,790

EQUITY AND LIABILITIES

Equity
(a) Equity share capital 8,878
(b) Other equity 414,360
Equity attributable to the equity holders of the Company 423,238
Non-controlling interest 2,636
425,874
Liabilities
(1) Non-current liabilities
(a) Financial liabilities
(i) Other financial liabilities -
(ii) Lease Liabilities
(iii) Borrowings -
(b) Provisions 12,108
(c) Deferred tax liability (net) 33
12,141

(2) Current liabilities

(a) Financial liabilities
(i) Borrowings -
(ii) Gold on loan 188,243
(iii) Trade payables 78,276
(iv) Other financial liabilities 23,813
(v) Lease Liabilities -
(b) Other current liabilities 110,223
(c) Provisions 2,009
(d) Current tax liabilities, net 211
402,775

TOTAL EQUITY AND LIABILITIES 840,790

 FY18 A FY19 A FY20 A

110,204 118,231 128,526

4,301 1,152 2,895
2,268 2,402 2,402
12,301 12,301 12,301
22,608 23,729 26,628
36 282 672

3,438 3,920 4,436

12,505
- 12,913 15,350
3,606 7,418 15,900
10,834 15,721 7,856
10,219 12,171 14,370
- - 93,486
192,320 212,795 342,949

592,484 703,882 810,298

161 6,922 11,357

29,569 42,045 31,155
47,205 42,953 7,549
14,586 63,695 30,564
33,966 9,898 45,906
- 24,660 5,610
42,130 64,675 69,591
760,101 958,730 1,012,030

952,421 1,171,525 1,354,979

8,878 8,878 8,878

500,110 598,137 657,997
508,988 607,015 666,875
-182 1,408 440
508,806 608,423 667,315

126 133 452

- 105,629
- 3,167 1,697
11,634 13,068 16,612
317 541 619
12,077 16,909 125,009

7,899 8 70,590
161,202 235,290 158,455
87,774 90,598 59,671
25,462 23,843 21,879
- - 18,668
144,529 188,950 220,571
2,473 6,534 11,970
2,199 970 851
431,538 546,193 562,655

952,421 1,171,525 1,354,979