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INDIA LTD.

Valuation
(in Rs. Crores)
Growth Assumptions

Enterpsire Value (EV)

Debt Equity Weightage

Long term World GDP growth


3%rate

E/(D+E) @ Enterprise Value

Current Market Price


Diluted Shares
CAPM Assumptions
Ke

12.3%

420.65

D/(D+E) @ Enterprise Value

12,685

Market Capitalisation

5335861

Interest Rate (%)


Tax Rate (%)

Long Term Liabilities

1,200.1

RFR

4%

Less: Cash & Cash Equivalents

3,456.2

Beta

1.4

Net Debt

4,656.3

Rp

6%

Enterprise Value (EV)

5340517

WACC Calculation
WACC

Calculation of Free Cash Flow

Explicit Forecast Period

First Stage of Valuation

2009A

2010E

2011E

2012E

2013E

2014E

2,377,595

2,472,138

3,263,222

4,405,350

6,167,490

8,942,860

10,516,803

11,757,786

EBITDA

404,431

442,108

440,535

585,912

696,926

1,171,515

1,398,735

1,563,786

EBIT

348,440

385,417

383,019

527,446

637,660

1,111,465

1,259,160

1,407,741

Tax Expense

140,032

148,269

132,084

181,781

220,848

379,030

433,962

485,170

Net Operating Profit After


208,408
Tax

237,148

250,935

345,665

416,812

732,435

825,198

922,571

56,691

57,516

58,466

59,266

60,050

139,575

156,045

Revenues

Depreciation & Amortisation


55,991
Working Capital Change749

1,700

719

292,139

307,732

406,896

475,626

793,577

965,865

1,079,708

2,256

2,568

115

3,401

1,246

2,577

8,120

9,078

265,906

294,707

307,847

410,297

476,872

796,154

973,986

1,088,787

12,685

12,685

12,685

12,685

12,685

12,685

12,685

12,685

FCF

Diluted Shares

Projection Year
Discount Factor
Present Value of FCF

452

(1,093)

2016E

Operating Cash Flow 263,650


Capex

(2,765)

2015E

(1,093)

(1,093)

0.89

0.79

0.71

0.63

0.56

0.50

0.45

262,757

244,715

290,795

301,337

448,550

489,248

487,621

Y/Y Growth Analysis


Revenues

4%

32%

35%

29%

23%

18%

12%

EBITDA

9%

0%

33%

19%

68%

19%

12%

11%

-1%

38%

21%

74%

13%

12%

1%

1%

2%

1%

1%

132%

12%

12%

12%

12%

12%

EBIT
Depreciation & Amortisation

Margin Analysis (As % of Revenues)


EBITA Margin

17%

18%

14%

13%

EBIT Margin

15%

16%

12%

12%

Depreciation & Amortisation


2%

2%

2%

1%

1%

1%

1%

1%

-0.095%

-0.104%

-0.004%

-0.077%

-0.077%

-0.077%

-0.077%

-0.077%

Tax Rate (Tax Expense/EBIT)


40%

38%

34%

34%

34%

34%

34%

34%

Capex

Terminal Value

Calculated Equity Value

Sum of PV of FCF for2,985,837


explicit forecast

Enterprise Value

Intrinsic Value
7,875,414

Equity Value

Debt Equity Weightage


E/(D+E) @ Enterprise Value

99.91%

D/(D+E) @ Enterprise Value

0.1%

Interest Rate (%)

6%
33

WACC Calculation
12%

Second Stage
of Valuation

uation
2017E

Terminal Year

12,463,253

12,774,835

1,657,613

1,699,053

1,492,206

1,529,511

514,280

527,137

977,926

1,002,374

165,407

169,542

(1,093)

(1,093)

1,144,425

1,173,009

9,623

9,864

1,154,049

1,182,872

12,685

12,685

8
0.40
460,814

6%

3%

6%

3%

6%

3%

6%

2%

12%

12%

1%

1%

-0.077%

-0.077%

34%

34%

7,870,758