Safal Niveshak Stock Analysis Excel (Ver. 4.

www.safalniveshak.com

HOW TO USE THIS SPREADSHEET

Step 1 - This spreadsheet works only on Screener.in. The first step is to create a free account here - https://www.screener.in/re
Step 2 - After creating your account, while you are logged in to Screener.in website, visit this page - https://www.screener.in/ex
Step 3 - Visit the home page of Screener.in and choose a company of your choice. Once you do that, you will see details of you
financial statement table called "Quarterly Results" and click on "View Consolidated". Now, all data you see for this company wi

Step 4 - Scroll back to the top of the page, and you will see a button "Export to Excel" on the right side. Click the button and the
the exact format as "Safal Niveshak's Stock Analysis Excel Ver. 4.0". Now onwards, any excel you export for any company on S
Step 5 - Email me your love and testimonial for helping you with this excel. :-)

IMPORTANT INSTRUCTIONS
1. Ensure that the company whose data you are downloading has numbers at least starting from FY08 (March 2008). This is be
from, say, FY10, you will see incorrect data for FY08 and FY09 (which will be of Hero Motocorp on whose financials I have crea

2. All financial data of your chosen company will be automatically updated in the sheet you download, except "Cash and Bank"
figures, which you must update manually from the company's annual reports. Don’t forget to make these changes as these num
3. You may update the sheet and add your own analysis, formulae etc. and then upload again to Screener.in site using the Step
"Data Sheet" because this will cause errors in your future downloads.
4. DON’T touch any cell except the black ones, where you are required to update the numbers manually from Annual Reports (j
the growth assumptions etc.
4. I have added Comments and Instructions wherever necessary so as to explain the concepts. Read those carefully before wo
5. This sheet is not a replacement of the work required to read annual reports as part of the analysis process. So please do tha
some discrepancy in numbers (though rare), but you will know this only when you read annual reports.
6. I could not find a bug/errors in this spreadsheet, but if you notice some, please email me at - vishal@safalniveshak.com - and
7. I will keep on updating the sheet from time to time and will update the same on the website. I invite you to share your feedba
together.
8. This excel won't work for banking and financial services companies.

Note: All data is sourced from Screener.in

 Safal Niveshak Stock
Analysis Excel (Ver. 4.0)
www.safalniveshak.com
Basic Company Details
Parameters
Company
Current Stock Price (Rs)
Face Value (Rs)
No. of Shares (Crore)
Market Capitalization (Rs Crore)
Warning! Excel can be a wonder
a deadly weapon if you wish to
careful of what you are getting
garbage out. And if you need the
a given stock, you mu
Details
COLGATE-PALMOLIVE (INDIA) LTD
1,285 Remember! Focus on decisions
1.0 evidence
27.2
34,939

Key Financials - Trend

Parameters Details
Sales Growth (9-Year CAGR) 10.6% Please! It's your money. Please
cause you to lose it all! I've desi
Profit Before Tax Growth (9-Year CAGR) 12.3% but you alone are responsible f
Net Profit Growth (8-Year CAGR) 9.8% ever after! I am not a sadist w
Average Debt/Equity (5-Years, x) - analyzing companies on your
instead of a map, for you can c
Average Return on Equity (5-Years) 61.7%
A
Average P/E (5-Years, x) 43.4
Latest P/E (x) 45.6
 Excel can be a wonderful tool to analyze the past. But it can be
y weapon if you wish to use it to predict the future! So be very
of what you are getting into. Here, garbage in will always equal
out. And if you need the excel to tell you what you must do with
a given stock, you must not use this tool anyways.

er! Focus on decisions, not outcomes. Look for disconfirming

evidence. Calculate. Pray!

It's your money. Please don't blame me if results of this excel

u to lose it all! I've designed this excel to aid your own thinking,
alone are responsible for your actions. I want to live peacefully
fter! I am not a sadist who wants you to do the hard work by
ng companies on your own. But I'd rather give you a compass
of a map, for you can confuse map with territory and lose it all.
All the best!
 Buffett Checklist - Read, Remember, Follow!
Source - Buffettology by Mary Buffett & David Clark
Parameter

Consumer monopoly or commodity?

Understand how business works

Is the company conservatively financed?

Are earnings strong and do they show an

upward trend?

Does the company stick with what it

knows?

Has the company been buying back its

shares?

Have retained earnings been invested

well?

Is the company’s return on equity above

average?

Is the company free to adjust prices to

inflation?
Does the company need to constantly
reinvest in capital?

Conclusion

Never Forget
 Buffett Checklist - Read, Remember, Follow!
Source - Buffettology by Mary Buffett & David Clark
Explanation

Seek out companies that have no or less competition, either due to a patent or brand name or similar intangible that
makes the product unique. Such companies will typically have high gross and operating profit margins because of their
unique niche. However, don't just go on margins as high margins may simply highlight companies within industries with
traditionally high margins. Thus, look for companies with gross, operating and net profit margins above industry norms.
Also look for strong growth in earnings and high return on equity in the past.

Try to invest in industries where you possess some specialized knowledge (where you work) or can more effectively
judge a company, its industry, and its competitive environment (simple products you consume). While it is difficult to
construct a quantitative filter, you should be able to identify areas of interest. You should "only" consider analyzing
those companies that operate in areas that you can clearly grasp - your circle of competence. Of course you can
increase the size of the circle, but only over time by learning about new industries. More important than the size of the
circle is to know its boundaries.

Seeks out companies with conservative financing, which equates to a simple, safe balance sheet. Such companies
tend to have strong cash flows, with little need for long-term debt. Look for low debt to equity or low debt-burden ratios.
Also seek companies that have history of consistently generating positive free cash flows.

Rising earnings serve as a good catalyst for stock prices. So seek companies with strong, consistent, and expanding
earnings (profits). Seek companies with 5/10 year earnings per share growth greater than 25% (along with safe
balance sheets). To help indicate that earnings growth is still strong, look for companies where the last 3-years
earnings growth rate is higher than the last 10-years growth rate. More important than the rate of growth is the
consistency in such growth. So exclude companies with volatile earnings growth in the past, even if the "average"
growth has been high.

Like you should stock to your circle of competence, a company should invest its capital only in those businesses within
its circle of competence. This is a difficult factor to screen for on a quantitative level. Before investing in a company,
look at the company’s past pattern of acquisitions and new directions. They should fit within the primary range of
operations for the firm. Be cautious of companies that have been very aggressive in acquisitions in the past.

Buffett prefers that firms reinvest their earnings within the company, provided that profitable opportunities exist. When
companies have excess cash flow, Buffett favours shareholder-enhancing maneuvers such as share buybacks. While
we do not screen for this factor, a follow-up examination of a company would reveal if it has a share buyback plan in
place.

Seek companies where earnings have risen as retained earnings (earnings after paying dividends) have been
employed profitably. A great way to screen for such companies is by looking at those that have had consistent
earnings and strong return on equity in the past.

Consider it a positive sign when a company is able to earn above-average (better than competitors) returns on equity
without employing much debt. Average return on equity for Indian companies over the last 10 years is approximately
16%. Thus, seek companies that earn at least this much (16%) or more than this. Again, consistency is the key here.

That's what is called "pricing power". Companies with moat (as seen from other screening metrics as suggested above
(like high ROE, high grow margins, low debt etc.) are able to adjust prices to inflation without the risk of losing
significant volume sales.
Companies that consistently need capital to grow their sales and profits are like bank savings account, and thus bad
for an investor's long term portfolio. Seek companies that don't need high capital investments consistently. Retained
earnings must first go toward maintaining current operations at competitive levels, so the lower the amount needed to
maintain current operations, the better. Here, more than just an absolute assessment, a comparison against
competitors will help a lot. Seek companies that consistently generate positive and rising free cash flows.

Sensible investing is always about using “folly and discipline” - the discipline to identify excellent businesses, and wait
for the folly of the market to drive down the value of these businesses to attractive levels. You will have little trouble
understanding this philosophy. However, its successful implementation is dependent upon your dedication to learn and
follow the principles, and apply them to pick stocks successfully.

Focus on decisions, not outcomes. Look for disconfirming evidence.

 Balance Sheet
COLGATE-PALMOLIVE (INDIA) LTD
Rs Cr Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18
Equity Share Capital 14 14 14 14 14 14 14 27 27 27
Reserves 203 313 370 422 476 586 757 1,004 1,247 1,497
Borrowings 5 5 0 0 - - - - - -
Other Liabilities 569 571 668 711 835 918 963 1,008 1,037 1,039
Total 790 901 1,052 1,147 1,325 1,518 1,733 2,039 2,311 2,564

Net Block 174 247 255 254 281 556 782 1,008 1,108 1,146
Capital Work in Progress 5 6 8 69 102 142 141 78 167 159
Investments 38 21 39 47 47 37 37 31 31 31
Other Assets 573 627 750 776 895 784 773 921 1,005 1,228
Total 790 901 1,052 1,147 1,325 1,518 1,733 2,039 2,311 2,564

Working Capital 4 57 82 65 60 -135 -190 -87 -32 189

Debtors 11 10 75 87 81 55 70 102 130 201
Inventory 82 111 154 218 185 226 252 292 293 227
Cash & Bank** 4,735 3,367 3,190 3,393 2,605 3,546 4,739 5,829
** Manually enter this number; Convert to Rs Crore if not already done in the Annual Reports; Use Cash+Bank+Current Investments from Consolidated Balance Sheet in Annual Reports

Debtor Days 2 2 12 12 9 6 6 10 12 18
Inventory Turnover 21 18 15 12 17 16 16 13 14 18
Fixed Asset Turnover 9.7 7.9 9.0 10.6 11.3 6.4 5.1 3.8 3.6 3.7
Debt/Equity 0.0 0.0 0.0 0.0 - - - - - -
Return on Equity 134% 130% 105% 103% 101% 90% 73% 56% 45% 44%
Return on Capital Employed 157% 147% 136% 135% 135% 121% 101% 81% 67% 64%
 Profit & Loss Account / Income Statement
COLGATE-PALMOLIVE (INDIA) LTD
Rs Cr Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Trailing
Sales 1,695 1,962 2,286 2,693 3,164 3,579 3,982 3,868 3,982 4,188 4,400
% Growth YOY 16% 16% 18% 17% 13% 11% -3% 3% 5%
Expenses 1,433 1,537 1,772 2,115 2,505 2,915 3,159 2,929 3,038 3,075 3,167
Material Cost (% of Sales) 44% 40% 39% 41% 39% 40% 37% 38% 37% 35% Check for wide fluctuations in key
Power and Fuel 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% expense items. For manufacturing
Other Mfr. Exp 1% 1% 1% 1% 3% 3% 4% 4% 4% 4% firms, check their material costs etc. For
Employee Cost 8% 7% 8% 8% 8% 6% 7% 7% 7% 7% services firms, look at employee costs.
Selling and Admin Cost 25% 25% 26% 26% 26% 30% 29% 23% 24% 23%
Operating Profit 262 425 515 579 659 664 823 940 944 1,113 1,233
Operating Profit Margin 15% 22% 23% 21% 21% 19% 21% 24% 24% 27% 28%
Other Income 108 98 41 51 48 115 33 7 41 27 56
Other Income as % of Sales 6.4% 5.0% 1.8% 1.9% 1.5% 3.2% 0.8% 0.2% 1.0% 0.6% 1.3%
Depreciation 23 38 34 39 44 51 75 111 133 157 160
Interest 1 2 2 2 - - - - - - -
Interest Coverage(Times) 315 324 324 391 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Profit before tax (PBT) 345 485 520 588 663 728 780 835 851 983 1,130
% Growth YOY 40% 7% 13% 13% 10% 7% 7% 2% 15%
PBT Margin 20% 25% 23% 22% 21% 20% 20% 22% 21% 23% 26%
Tax 55 62 117 142 166 188 221 254 274 310 363
Net profit 290 423 403 446 497 540 559 581 577 673 767
% Growth YOY 46% -5% 11% 11% 9% 4% 4% -1% 17%
Net Profit Margin 17% 22% 18% 17% 16% 15% 14% 15% 15% 16% 17%
EPS 10.7 15.6 14.8 16.4 18.3 19.8 20.6 21.4 21.2 24.8 28.2
% Growth YOY 46% -5% 11% 11% 9% 4% 4% -1% 17%
Price to earning 21.6 23.1 29.4 34.4 37.0 35.6 50.0 39.2 47.8 44.4 45.6
Price 231 360 435 565 675 706 1,027 837 1,016 1,098 1,285
Dividend Payout 70.3% 64.3% 74.3% 76.2% 76.7% 68.0% 58.4% 46.8% 47.1% 96.9%
Market Cap 6,278 9,795 11,843 15,373 18,355 19,210 27,938 22,764 27,624 29,866
Retained Earnings 86 151 103 106 116 173 233 309 305 21
Buffett's $1 Test 14.7

TRENDS: 10 YEARS 7 YEARS 5 YEARS 3 YEARS

Sales Growth 10.6% 9.0% 5.8% 1.7%
PBT Growth 12.3% 9.5% 8.2% 8.0%
PBT Margin 21.7% 21.3% 21.3% 22.1%
Price to Earning 36.2 41.2 43.4 43.8

Check for long term vs short term trends here. Check if the growth over
past 3 or 5 years has slowed down / improved compared to long term (7
to 10 years) growth numbers.
 Cash Flow Statement
COLGATE-PALMOLIVE (INDIA) LTD
Rs Cr Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Total
Cash from Operating Activity (CFO) 319 397 358 403 615 457 638 689 688 694 5,259
% Growth YoY 24% -10% 13% 53% -26% 40% 8% 0% 1%
Cash from Investing Activity 43 37 60 -10 -47 -180 -272 -237 -342 -207 -1,156
Cash from Financing Activity -255 -337 -323 -398 -428 -422 -385 -391 -341 -380 -3,660
Net Cash Flow 107 96 95 -5 140 -145 -18 61 5 107 442
CFO/Sales 19% 20% 16% 15% 19% 13% 16% 18% 17% 17%
CFO/Net Profit 110% 94% 89% 90% 124% 85% 114% 119% 119% 103%
Capex** 315 212 364 565 607 937 1,156 1,638 1,238 824
FCF 4 186 -6 -162 8 -480 -518 -949 -550 -130 -2,597
Average FCF (3 Years) -543
FCF Growth YoY 4220% -103% 2511% -105% -6171% 8% 83% -42% -76%
FCF/Sales 0% 9% 0% -6% 0% -13% -13% -25% -14% -3%
FCF/Net Profit 1% 44% -2% -36% 2% -89% -93% -163% -95% -19%

** Manually enter this number;

Convert to Rs Crore if not already
done in the Annual Reports; Use
"Capital expenditure" number
shown under "Cash Flow from
Investing Activities" segment of
Consolidated Cash Flow Statement
available in the Annual Reports
 Key Ratios
COLGATE-PALMOLIVE (INDIA) LTD
Mar/09 Mar/10 Mar/11 Mar/12 Mar/13 Mar/14 Mar/15 Mar/16 Mar/17
Sales Growth 15.8% 16.5% 17.8% 17.5% 13.1% 11.3% -2.9% 2.9%
PBT Growth 40.4% 7.2% 13.2% 12.7% 9.8% 7.2% 7.0% 1.9%
Net Profit Growth 45.8% -4.9% 10.9% 11.3% 8.7% 3.5% 4.0% -0.6%
Dividend Growth 33.3% 10.0% 13.6% 12.0% -3.6% -11.1% -16.7% 0.0%
Operating Cash Flow Growth 24.4% -9.9% 12.6% 52.6% -25.6% 39.5% 7.9% -0.1%
Free Cash Flow Growth 4220.5% ### ### ### ### 8.0% 83.3% -42.1%

Operating Margin 15.4% 21.7% 22.5% 21.5% 20.8% 18.6% 20.7% 24.3% 23.7%
PBT Margin 20.4% 24.7% 22.7% 21.8% 21.0% 20.3% 19.6% 21.6% 21.4%
Net Margin 17.1% 21.6% 17.6% 16.6% 15.7% 15.1% 14.0% 15.0% 14.5%

Debtor Days 2.4 1.8 12.0 11.8 9.4 5.6 6.4 9.6 11.9
Inventory Turnover 20.6 17.8 14.9 12.4 17.1 15.9 15.8 13.3 13.6
Fixed Asset Turnover 9.7 7.9 9.0 10.6 11.3 6.4 5.1 3.8 3.6
Debt/Equity 0.0 0.0 0.0 0.0 - - - - -
Debt/Assets 0.6% 0.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Interest Coverage (Times) 314.9 324.2 323.9 390.7 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Return on Equity 134.2% 129.8% 104.8% 102.5% 101.5% 90.0% 72.6% 56.4% 45.3%
Return on Capital Employed 156.8% 147.1% 135.8% 135.5% 135.4% 121.4% 101.3% 81.0% 66.8%
Free Cash Flow (Rs Cr) 4 186 -6 -162 8 -480 -518 -949 -550
Mar/18
5.2%
15.5%
16.6%
140.0%
0.9%
-76.3%

26.6%
23.5%
16.1%

17.5
18.5
3.7
-
0.0%
#DIV/0!
44.2%
64.5%
-130
What to look for?
Higher is better, but also look for long term stability and consistency
Higher is better, but also look for long term stability and consistency
Higher is better, but also look for long term stability and consistency
Higher isn't always better, esp. when the company is generating high ROE, which means the management is allocating capital
Higher is better, but also look for long term stability and consistency
Higher is better, but also look for long term stability and consistency

Higher is better, but also look for long term stability and consistency, plus the nature of the industry. Also compare with industry
Higher is better, but also look for long term stability and consistency, plus the nature of the industry. Also compare with industry
Higher is better, but also look for long term stability and consistency, plus the nature of the industry. Also compare with industry

Lower/reducing is better. Compare with industry peer(s)

Higher/rising is better. Compare with industry peer(s)
Higher/rising is better. Compare with industry peer(s)
Nil / lower than 0.5 / reducing is better
Lower is better
Look for number > 5
Look for number > 20%. Also check if the debt is low/nil. Compare with industry peer(s)
Look for number > 20%. Also check if the debt is low/nil. Compare with industry peer(s)
Look for positive and rising numbers. If the company consistently generates negative FCF over say 10 years, avoid it.
30% Profit Margin Capital Alloc
200%
Check for a rising trend and
25% Numbers > 20% long term a
150% has zero/marginal debt. Com
20%
15% 100%
10%
50%
5% Check for a rising trend and/or consistency.
Compare with a close competitor
0% 0%
Jan/09 Jan/11 Jan/13 Jan/15 Jan/17 Jan/09 Jan/11 Jan

Operating Margin PBT Margin

Net Margin ROE

4,500
Revenue Revenue and Pro
50%
Check for a rising trend. Check for a ris
4,000 Compare grow
40%
3,500
3,000 30%
2,500
2,000 20%
1,500 10%
1,000
500 0%
Jan/10 Jan/12
- -10%
Jan/09 Jan/11 Jan/13 Jan/15 Jan/17 Revenue Growth
Net Profit Grow

1,200 Profit Over Time Operating and

1,000 Check
Check for a rising trend. for positive numbe
1,000 which are rising over tim
500
800
-
600 Jan/09 Jan/11 Ja
-500
400
200 -1,000
- -1,500
Jan/09 Jan/11 Jan/13 Jan/15 Jan/17

PBT Net Profit Operating Cash Flo

Data for Charts (Please don't touch any number below)
Margins
Mar/09 Mar/10 Mar/11 Mar/12 Mar/13 Mar/14 Mar/15 Mar/16 Mar/17
Operating Margin 15% 22% 23% 21% 21% 19% 21% 24% 24%
PBT Margin 20% 25% 23% 22% 21% 20% 20% 22% 21%
Net Margin 17% 22% 18% 17% 16% 15% 14% 15% 15%

Management Effectiveness
Mar/09 Mar/10 Mar/11 Mar/12 Mar/13 Mar/14 Mar/15 Mar/16 Mar/17
ROE 134% 130% 105% 103% 101% 90% 73% 56% 45%
ROCE 157% 147% 136% 135% 135% 121% 101% 81% 67%

Revenue & Profit Growth

Mar/10 Mar/11 Mar/12 Mar/13 Mar/14 Mar/15 Mar/16 Mar/17 Mar/18
Revenue Growth 16% 16% 18% 17% 13% 11% -3% 3% 5%
PBT Growth 40% 7% 13% 13% 10% 7% 7% 2% 15%
Net Profit Growth 46% -5% 11% 11% 9% 4% 4% -1% 17%

Revenue & Profit

Mar/09 Mar/10 Mar/11 Mar/12 Mar/13 Mar/14 Mar/15 Mar/16 Mar/17
Revenue 1,695 1,962 2,286 2,693 3,164 3,579 3,982 3,868 3,982
PBT 345 485 520 588 663 728 780 835 851
Net Profit 290 423 403 446 497 540 559 581 577

Cash Flows
Mar/09 Mar/10 Mar/11 Mar/12 Mar/13 Mar/14 Mar/15 Mar/16 Mar/17
Operating Cash Flow 319 397 358 403 615 457 638 689 688
Free Cash Flow 4 186 -6 -162 8 -480 -518 -949 -550
%
Capital Allocation Quality
Check for a rising trend and/or consistency.
Numbers > 20% long term are good. Also check if the company
% has zero/marginal debt. Compare with a close competitor Note: Please ignore the dates
on the X-axis. The figures are
% for/as on the year ending date,
which for most Indian
companies would be 31st
% March of that year

%
Jan/09 Jan/11 Jan/13 Jan/15 Jan/17

ROE ROCE

% Revenue and Profit Growth (YoY)

Check for a rising trend and/or low volatility.
Compare growth rates with a close competitor.
%

%
Jan/10 Jan/12 Jan/14 Jan/16 Jan/18
%
Revenue Growth PBT Growth
Net Profit Growth

Operating and Free Cash Flow

0 Check for positive numbers and
which are rising over time.
0
-
Jan/09 Jan/11 Jan/13 Jan/15 Jan/17
0
0
0

Operating Cash Flow Free Cash Flow

Mar/18
27%
23%
16%

Mar/18
44%
64%

Mar/18
4,188
983
673

Mar/18
694
-130
 Common Size P&L
Rs Cr Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
Sales 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Raw Material Cost 44% 40% 39% 41% 39% 40% 37% 38% 37% 35%
Change in Inventory 0% 1% 1% 2% -1% 1% 0% 0% 0% 0%
Power and Fuel 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%
Other Mfr. Exp 1% 1% 1% 1% 3% 3% 4% 4% 4% 4%
Employee Cost 8% 7% 8% 8% 8% 6% 7% 7% 7% 7%
Selling and Admin Cost 25% 25% 26% 26% 26% 30% 29% 23% 24% 23%
Other Expenses 6% 4% 3% 4% 2% 2% 2% 2% 3% 2%
Operating Profit 15% 21% 20% 18% 22% 17% 20% 24% 24% 27%
Other Income 6% 5% 2% 2% 2% 3% 1% 0% 1% 1%
Depreciation 1% 2% 1% 1% 1% 1% 2% 3% 3% 4%
Interest 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Profit Before Tax 20% 25% 23% 22% 21% 20% 20% 22% 21% 23%
Tax 3% 3% 5% 5% 5% 5% 6% 7% 7% 7%
Net Profit 17% 22% 18% 17% 16% 15% 14% 15% 15% 16%
Dividend Amount 12% 14% 13% 13% 12% 10% 8% 7% 7% 16%

Common Size Balance Sheet

Rs Cr Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
Equity Share Capital 2% 2% 1% 1% 1% 1% 1% 1% 1% 1%
Reserves 26% 35% 35% 37% 36% 39% 44% 49% 54% 58%
Borrowings 1% 1% 0% 0% 0% 0% 0% 0% 0% 0%
Other Liabilities 72% 63% 63% 62% 63% 60% 56% 49% 45% 41%
Total Liabilities 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Net Block 22% 27% 24% 22% 21% 37% 45% 49% 48% 45%
Capital Work in Progress 1% 1% 1% 6% 8% 9% 8% 4% 7% 6%
Investments 5% 2% 4% 4% 4% 2% 2% 2% 1% 1%
Other Assets 73% 70% 71% 68% 68% 52% 45% 45% 43% 48%
Total Assets 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Receivables 1% 1% 7% 8% 6% 4% 4% 5% 6% 8%
Inventory 10% 12% 15% 19% 14% 15% 15% 14% 13% 9%
Cash & Bank 32% 39% 38% 27% 32% 19% 15% 14% 13% 18%
 A common-size financial statement is displays line
items as a percentage of one selected or common
figure. Creating common-size financial statements
makes it easier to analyze a company over time and
compare it with its peers. Using common-size
financial statements helps investors spot trends that
a raw financial statement may not uncover.
 Dhandho Intrinsic Value Calculation
Read the book - The Dhandho Investor by Mohnish Pabrai

COLGATE-PALMOLIVE (INDIA) LTD COLGATE-PALMOLIVE (INDIA) LT

Dhandho IV - Lower Range Dhandho IV - Higher Range
Year FCF (Rs Cr) PV of FCF (Rs Cr) Assumed FCF Growth Year
0 Excess Cash (Latest) 5,829 Year 1-3 15% 0 Excess Cash (Latest)
1 FY18 (625) (558) Year 4-6 10% 1 FY18
2 FY19 (718) (573) Year 7-10 5% 2 FY19
3 FY20 (826) (588) Discount Rate 12% 3 FY20
4 FY21 (909) (577) 4 FY21
5 FY22 (1,000) (567) Last 5-Years' CAGR 5 FY22
6 FY23 (1,100) (557) Sales 6% 6 FY23
7 FY24 (1,155) (522) PBT 8% 7 FY24
8 FY25 (1,212) (490) FCF -275% 8 FY25
9 FY26 (1,273) (459) 9 FY26
10 FY27 (1,336) (430) 10 FY27
10 -13,365 (4,303) 10
Intrinsic Value (3,796) Intrinsic Value
Current Mkt. Cap. 34,939 Current Mkt. Cap.
Premium/(Discount) to IV -1021% Premium/(Discount) to IV

Note: See explanation of this model here

P.S. In case of companies earning negative FCF, where this model will not work, you must use a normalized positive FCF as
starting number. This number is your assumption of FCF the business will earn in a normal year, without capex. Check the his
this business while arriving at your assumption, and use your judgment wisely without twisting the model to fit your version of
Calculation
by Mohnish Pabrai

COLGATE-PALMOLIVE (INDIA) LTD

Dhandho IV - Higher Range
FCF (Rs Cr) PV of FCF (Rs Cr) Assumed FCF Growth
Excess Cash (Latest) 5,829 Year 1-3 20%
(652) (582) Year 4-6 15%
(782) (624) Year 7-10 10%
(939) (668) Discount Rate 12%
(1,079) (686)
(1,241) (704)
(1,427) (723)
(1,570) (710)
(1,727) (698)
(1,900) (685)
(2,090) (673)
(31,350) (10,094)
Intrinsic Value (11,018)
Current Mkt. Cap. 34,939
Premium/(Discount) to IV -417%

ust use a normalized positive FCF as the

al year, without capex. Check the history of
sting the model to fit your version of reality.
 Ben Graham Formula (Low Range) Ben Graham Formula (High Range)
Company Name PALMOLIVE (INDIA) LTD Company Name
Year Ended Mar/18 Year Ended

Avg 5-Yr Net Profit (Rs Crore) 586.2 Avg 5-Yr Net Profit (Rs Crore)
PE Ratio at 0% Growth 8.5 PE Ratio at 0% Growth
Long-Term Growth Rate 3.1 Long-Term Growth Rate

Ben Graham Value (Rs Crore) 8,659 Ben Graham Value (Rs Crore)
Current Market Cap (Rs Crore) 34,939 Current Market Cap (Rs Crore)

EXPLANATION
Ben Graham's Original Formula: Value = EPS x (8.5 + 2G)
Here, EPS is the trailing 12 month EPS, 8.5 is the P/E ratio of a stock with 0% growth and g is the growth rate for the next 7-10

Ben Graham's Revised Formula: Value = [EPS x (8.5 + 2G) x 4.4] / Y

Here, 4.4 is what Graham determined to be his minimum required rate of return. At the time of around 1962 when Graham was

Note: I have used Graham's original formula in the above calculations

m Formula (High Range)
PALMOLIVE (INDIA) LTD
Mar/18

586.2
8.5
6.3

12,336
34,939

g is the growth rate for the next 7-10 years

e of around 1962 when Graham was publicizing his works, the risk free interest rate was 4.4% but to adjust to the present, we divide this nu
e present, we divide this number by today’s AAA corporate bond rate, represented by Y in the formula above.
 Dicounted Cash Flow Valuation
COLGATE-PALMOLIVE (INDIA) LTD

Initial Cash Flow (Rs Cr) (543) ###

34,939
Years 1-5 6-10 -35%
FCF Growth Rate 15% 12%
Discount Rate 12%
Terminal Growth Rate 2%

Net Debt Level (Rs Cr) (5,829)

Year FCF Growth Present Value

1 (625) 15% (558)
2 (718) 15% (573)
3 (826) 15% (588)
4 (950) 15% (604)
5 (1,093) 15% (620)
6 (1,224) 12% (620)
7 (1,370) 12% (620)
8 (1,535) 12% (620)
9 (1,719) 12% (620)
10 (1,925) 12% (620)

Final Calculations
Terminal Year (1,964)
PV of Year 1-10 Cash Flows (6,042)
Terminal Value (6,323)
Total PV of Cash Flows ###
Current Market Cap (Rs Cr) 34,939

Note: See explanation of DCF here

Valuation
DIA) LTD

DCF Value (As calculated in cell B29)

Current Market Cap
DCF as % of Current Mkt Cap
 Expected Returns Model
COLGATE-PALMOLIVE (INDIA) LTD
Particulars Mar/09 Mar/10 Mar/11 Mar/12 Mar/13 Mar/14 Mar/15
Net Profit (Rs Crore) 290 423 403 446 497 540 559
Net Profit Margin 17% 22% 18% 17% 16% 15% 14%
Return on Equity 134% 130% 105% 103% 101% 90% 73%

Calculations (Enter values only in black cells)

Estimated CAGR in Net Profit over next 10 years 12%
Estimated Net Profit after 10 years (Rs Cr) 2,091
Current P/E (x) 51.9
Exit P/E in the 10th year from now (x, Estimated) 20.0
Esti. Market Cap (10th year from now; Rs Cr) 41,828
Cost of Capital/Discount Rate 12%
Discounted Value (Rs Cr) 13,467
Current Market Cap (Rs Cr) 34,939

Note: See explanation of this model here

el
D
Mar/16 Mar/17 Mar/18 CAGR (9-Yr) CAGR (5-Yr)
581 577 673 10% 6%
15% 15% 16%
56% 45% 44%
 Intrinsic Value Range
COLGATE-PALMOLIVE (INDIA) LTD
Lower Higher Remember! Give importance to a stock's valuations / fair v
Dhandho -3,796 ### only "after" you have answered in "Yes" to these two quest
Ben Graham 8,659 12,336 (1) Is this business simple to be understood? and (2) Ca
DCF -12,365 understand this business?
Expected Return 13,467
Don't try to quantify everything. In stock research, the less
Current Market Cap. 34,939 mathematical you are, the more simple, sensible, and usefu
be your analysis and results. Great analysis is generally "b
of-the-envelope".
Explanation: Considering the above
range, we can say that Hero Moto's IV Also, your calculated "fair value" will be proven wrong in
range is between Rs 55,000 crore to Rs future, so don't invest your savings just because you fall in
95,000 crore. It's a big range, but that's with it. Don't look for perfection. It is overrated. Focus o
fine (who is looking for precision?). Now, decisions, not outcomes. Look for disconfirming eviden
if the current market cap is within this IV
range, it makes the stock
reasonably/attractively priced. If the
current market cap is higher then the
higher value of the range, it makes it
overpriced. But remember, these are just
numbers!
 importance to a stock's valuations / fair value
ave answered in "Yes" to these two questions -
ness simple to be understood? and (2) Can I
understand this business?

fy everything. In stock research, the less non-

are, the more simple, sensible, and useful will
and results. Great analysis is generally "back-
of-the-envelope".

lated "fair value" will be proven wrong in the

vest your savings just because you fall in love
ook for perfection. It is overrated. Focus on
outcomes. Look for disconfirming evidence.
COLGATE-PALMOLIVE (INDIA) LTD
SCREENER.IN
Narration Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18
Sales 1,057 875 1,038 978 1,085 1,033 1,092 1,041 1,168 1,099
% Growth YOY 3% 18% 5% 6% 8% 6%
Expenses 782 661 795 756 784 750 784 760 838 785
Operating Profit 275 214 243 222 301 283 308 282 330 314
Other Income 11 11 9 12 9 9 -3 43 9 8
Depreciation 33 34 34 37 39 40 40 39 40 41
Interest - - - - - - - - - -
Profit before tax 253 191 218 197 270 252 264 285 298 282
PBT Margin 24% 22% 21% 20% 25% 24% 24% 27% 26% 26%
% Growth YOY 7% 32% 21% 45% 10% 12%
Tax 71 63 76 61 93 81 75 96 102 90
Net profit 181 128 143 136 178 171 189 190 196 192
% Growth YOY -2% 34% 32% 39% 11% 13%
OPM 26% 24% 23% 23% 28% 27% 28% 27% 28% 29%
COMPANY NAME COLGATE-PALMOLIVE (INDIA) LTD
LATEST VERSION 2.10 PLEASE DO NOT MAKE ANY CHA
CURRENT VERSION 2.10

META
Number of shares 27.20
Face Value 1
Current Price 1284.6
Market Capitalization 34939.27

PROFIT & LOSS

Report Date Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14
Sales 1694.81 1962.46 2286.12 2693.23 3163.81 3578.81
Raw Material Cost 745.81 788.27 901.82 1093.57 1227.99 1428.79
Change in Inventory 4.51 11.43 29.85 43.34 -22.2 26.77
Power and Fuel 11.1 14.03 14.46 17.07 19.58 22.76
Other Mfr. Exp 16.52 21.55 22.1 25.7 98.56 121.29
Employee Cost 133.05 141.7 193.22 215.61 249.44 211.78
Selling and admin 426.09 495.52 591.7 699.71 828.44 1081.47
Other Expenses 105.15 87.41 78.05 106.39 59.04 75.48
Other Income 107.76 98.46 41.18 50.69 48.17 114.7
Depreciation 22.95 37.57 34.25 39.31 43.7 50.75
Interest 1.1 1.5 1.61 1.51
Profit before tax 345.31 484.8 519.94 588.39 663.03 727.96
Tax 55.09 61.54 117.36 141.92 166.27 188.09
Net profit 290.22 423.26 402.58 446.47 496.75 539.87
Dividend Amount 204 272 299.2 340 380.8 367.2

Quarters
Report Date Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17
Sales 1056.58 874.58 1037.52 978.11 1084.88 1033.32
Expenses 781.82 660.52 794.52 755.84 784.03 750.42
Other Income 11.28 10.9 9.32 12 8.61 8.56
Depreciation 33.3 34.17 34.13 37.29 39.17 39.57
Interest
Profit before tax 252.74 190.79 218.19 196.98 270.29 251.89
Tax 71.43 62.97 75.61 60.6 92.72 81.24
Net profit 181.31 127.82 142.58 136.38 177.57 170.65
Operating Profit 274.76 214.06 243 222.27 300.85 282.9

BALANCE SHEET
Report Date Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14
Equity Share Capital 13.6 13.6 13.6 13.6 13.6 13.6
Reserves 202.7 312.51 370.45 421.79 475.99 586.28
Borrowings 4.69 4.59 0.05 0.05
Other Liabilities 568.73 570.77 667.84 711.3 835.31 918.37
Total 789.72 901.47 1051.94 1146.74 1324.9 1518.25
Net Block 173.93 246.95 255.05 254.42 280.66 555.91
Capital Work in Progress 4.67 6.19 8.21 69.38 101.96 141.51
Investments 38.33 21 38.74 47.12 47.12 37.13
Other Assets 572.79 627.33 749.94 775.82 895.16 783.7
Total 789.72 901.47 1051.94 1146.74 1324.9 1518.25
Receivables 11.14 9.77 75.3 87.27 81.21 54.73
Inventory 82.42 110.55 153.7 217.68 185.3 225.74
Cash & Bank 251.14 347.58 395.15 309.8 428.8 285.38
No. of Equity Shares 135992817 135992817 135992817 135992817 135992817 135992817
New Bonus Shares
Face value 1 1 1 1 1 1

CASH FLOW:
Report Date Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14
Cash from Operating Activity 319.38 397.35 357.91 402.84 614.9 457.38
Cash from Investing Activity 42.63 36.55 60.13 -10.24 -47.25 -180.37
Cash from Financing Activity -255.13 -337.46 -322.99 -398.05 -427.6 -422.07
Net Cash Flow 106.88 96.44 95.05 -5.45 140.05 -145.06

PRICE: 230.827778 360.1381 435.41368 565.2295 674.869 706.29105

DERIVED:
Adjusted Equity Shares in Cr 27.20 27.20 27.20 27.20 27.20 27.20
DO NOT MAKE ANY CHANGES TO THIS SHEET

Mar-15 Mar-16 Mar-17 Mar-18

3981.94 3868.19 3981.82 4187.97
1484.07 1480.51 1470.75 1473.4
16.35 4.25 -5.58 -16.68
32.68 37.84 44.04 44.16
140.01 154.29 167.06 179.77
258.93 262.4 288.5 305.93
1163.59 905.6 951.34 950.8
96.49 92.28 110.99 104.69
32.89 7.17 41.12 27
75.02 111.41 133.24 156.51

780.39 835.28 851.43 983.03

221.41 254.11 274 309.66
558.98 581.17 577.43 673.37
326.4 272 272 652.8

Mar-18 Jun-18 Sep-18 Dec-18

1091.66 1041.3 1168.03 1099.35
783.97 759.71 838.46 784.89
-3.34 43.28 8.64 7.91
40.48 39.39 39.83 40.6

263.87 285.48 298.38 281.77

75.1 95.97 102.01 89.67
188.77 189.51 196.37 192.1
307.69 281.59 329.57 314.46

Mar-15 Mar-16 Mar-17 Mar-18

 13.6 27.2 27.2 27.2
756.72 1003.84 1246.6 1497.41

962.54 1007.96 1036.85 1039.25

1732.86 2039 2310.65 2563.86
781.58 1008.14 1108.11 1145.91
141.18 78.37 166.59 158.58
37.13 31.16 31.16 31.16
772.97 921.33 1004.79 1228.21
1732.86 2039 2310.65 2563.86
69.64 101.54 129.9 201.03
252.23 291.53 292.55 226.71
254.45 288.66 294.3 456.16
135992817 271985634 271985634 271985634
135992817
1 1 1 1

Mar-15 Mar-16 Mar-17 Mar-18

638.15 688.73 688 693.93
-271.63 -236.61 -342.1 -207.34
-384.79 -391.45 -340.58 -379.77
-18.27 60.67 5.32 106.83

1027.197 836.971053 1015.62895 1098.05714

27.20 27.20 27.20 27.20

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