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Depreciation and Amortization Expens Historic Average - Moving Averages as %age of Total Revenue
Other Expenses Historic Average - Moving Averages as %age of Total Revenue
Employee Benefit 5% YOY decline in Employee Benefit/ Sales Employee Benefit/ Sales
Subcontracting Expense Historic Moving Average of past 5 years as %age of Total Revenue
Revenue from Operations YOY growth of 9% + 1% for new initiatives like: Growth Over Previous Year
Other Income Historic Moving Average of past 4 years As is
Eploye Benefit - Salaries
Employee Benefit - Others
Current Tax Around 20% of PAT, Historic Averages As %age of PAT
0.22609 0.20486 0.1864 0.18995 0.19627 0.20072 0.19564 0.1938 0.19527 0.19634
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
103.753 102.196 102.978 83.626 104.155 103.27 103.27 103.27 103.27 103.27
8% 7% 9% 9% 9% 8% 8% 9% 9% 9%
8% 5% 7% 6% 7% 7% 6% 7% 6% 7%
19% 18% 25% 29% 24% 23% 23% 23% 23% 23%
9% 10% 10% 9% 7% 11% 14% 16% 16% 16%
Income Statement
Actual Forecasted
2015 2016 2017 2018 2019 2020
Revenue from Operations 191627 209698 231654 236922 272196 299880
Other Income 1245 10834 8929 17280 9601 11661
Total Income 192872 220532 240583 254202 281797 311541
Expenses
Employee Benefit Expense 72012 74290 77444 81240 84440 103008
As % of Revenue 38% 35% 33% 34% 31% 34%
Subcontracting Expense 64182 78028 87569 90257 101207 109961
Other Expenses 23167 23501 29923 26432 34859 36060
Depreciation and Amortization Expense 4733 5417 6222 6563 6587 8585
Depreciation on PPE and Intengible asset 8349
Depreciation on Investment property 236
EBIT 28778 39296 39425 49710 54704 53927
Tax Expense
Current Tax 6487 7941 7230 9308 10652 10820
As %age of PBT 23% 20% 19% 19% 20% 20%
Deferred Tax 256 -906 1084 -245 -183 -183
Total Tax Expense 6743 7035 8314 9063 10469 10637
Financial Assets
done Investment 36229 38718 57476
done Trade Receivables 0 0 0
done Loans 31 307 744
done Other Financial Assets 2848 2725 4269
Financial Assets
done Investment 4568 10497 19688
As %age of Operating Revenue 2% 5% 8%
done Trade Receivables 42790 51544 45717
Cash and Cash Equivalents 7055 17118 9717
Other Balances with banks 11241 15731 11122
done Loans 62 1612 5174
done Other Financial Assets 14792 15478 21746
Liabilities
Financial
done Financial Borrowings 0 1709 1742
done Other Financial Liabilities 1042 1281 3591
Difference
Estimated
2018 2019 2020 2021 2022 2023 2024
22380 19019 32987 46331 58417 65671 73429
2354 2713 4948 6144 8281 9289 10178
11% 14% 15% 13% 14% 14% 14%
1289 1141 1076 1089 1102 1115 1129
8636 7695 8126 8581 9062 9569 10105 cost of wquity
cash
16 17
68650 66287 69278 76115 83974 94402 105554 0.18906 0.184637 0.248111
0 0 0 0 0 0 0
0 0 0 0 0 0 0
2135 4559 4559 4559 4559 4559 4559
1450 43 43 43 43 43 43
4612 2032 2032 2032 2032 2032 2032
0 0 0 0 0
cost of wquity
18 19 20 21 22 23 24
0.289758 0.243527 0.231019 0.23941 0.250365 0.250816 0.243027
0 0 0 0 0
Cost of debt 7 to 10 %
Cash flow statement for Year ended
Cash flow statement for Year ended
21 21 21 21 21
12438 14463 9317 12360 13219
747 3009 3981 3534 4043
2991 6837 7860 10428 11152
-104 0 0 0 0
-16301 -24330 -21179 -26342 -28435
8167 -210 1005 7797 8787
12085 20252 20042 21046 28843
20252 20042 21046 28843 37630
2023 2024
59381.5885 64867.6201
NCL/ Sales 0.022611 0.029275 0.038128 0.039402 0.021913
CL/ Sales 0.187394 0.182658 0.195147 0.199196 0.278367
Cash/SalesErr:509 0.088753 0.044062 0.03696 0.03769
TNCA/Sale 0.398292 0.387229 0.440759 0.490111 0.440839
TCA/Sales 0.499632 0.560223 0.545712 0.565366 0.63581
Property, Plant and equipment
2015 2016
Opening balance
Intangible asset
Opening balance
Additions
Total
Less: Depreciation
Closing Balance
Investment Property
Opening balance
Additions
Total
Less: Depreciation
Closing Balance
Working Capital
Days
Receivable days 97 100
Paybles
2020 2021 2022 2023 2024
3.6 3.6 3.6 3.6 3.6
242082 269124 299187 332609 369764
302,602 336,405 373,984 415,761 462,205
80 80 80 80 80 (Assuming the credit sales to be same percen
67245 74757 83108 92391 102712
Pre Tax Cost of Debt 6.9% CCIL Average yield for AAA rated Service Companies
Tax Rate 20%
Post Tax Cost of debt 5.5%
Equity 206474
Debt 126 (Source: Annual Report)
206600
2024
64889
21
12837
17650
5351
23877
0
40453
5
25960
Total Borrowing 2019 2020
0.33
-1.79
-0.42 covariance 0.54847419
-0.61
Beta = Covariance/variance
-0.88
0.69
-0.18
-0.01
-0.32
0.26
0.24
-0.01
-0.8
-0.34
-0.18
-0.69
0.75
-0.71
0.89
-0.47
-0.91
-0.09
-0.07
-0.7
0.89
0.53
1.92
-0.07
0.6
0.3
-1.18
0.87
-0.91
-0.35
0.64
-1.45
-0.82
-0.9
-1.14
-1.44
0.74
0.29
-0.2
-0.74
0.31
-0.39
0.15
-0.34
-0.67
-0.23
0.43
0.62
0.47
-0.86
-0.59
-0.38
-0.39
-0.5
-0.11
-1.42
1.42
-1.19
1.16
-0.67
0.8
-1.36
0.55
-0.25
0.15
0.8
-0.19
-0.38
-0.38
0.46
-0.82
0
-0.17
-0.02
-0.36
-1.21
-0.29
-0.11
0.23
0.01
-0.26
-1.29
0.23
-0.24
0.37
-0.24
-0.42
-0.53
-0.54
0.37
0.44
0.09
0.19
-0.3
-0.18
-0.09
-0.69
0.35
-0.62
0.54
-0.22
-0.28
0.9
-0.06
-0.28
0.34
0.41
0.26
-0.29
0.46
0.19
-0.31
-0.42
-0.79
0.74
0.26
-0.28
-0.37
-0.71
-0.27
-0.73
0.49
0.57
-2.14
-1.9
-0.82
0.15
-0.18
-0.12
-0.71
0.39
-0.15
0.18
1.02
0.28
-0.44
0.78
0.96
-0.34
0.25
-0.28
-0.32
0.33
0.85
-0.49
-0.84
0.76
1.19
-1.17
0.37
0.06
-1.51
-0.52
1.24
0.33
-1.63
-0.59
-0.78
0.64
-0.8
0.7
-0.67
-0.41
-0.43
0.72
-1.01
-0.56
1.15
1.22
-0.65
-0.01
0.19
0
-0.93
-0.78
-0.08
0.07
0.38
1.52
0.83
-0.57
-1.9
-0.64
-0.07
1.38
-0.19
0.91
-0.78
-0.16
-0.06
0.53
-0.15
0.29
0.29
-0.05
1.28
0.31
0.27
0.74
-0.52
-0.94
-0.57
0.18
1.21
-0.47
-0.27
-1.51
-0.13
-1.15
0.73
-0.41
-2.09
0.18
0.83
0.53
0.14
-1.18
-0.14
0.45
0.1
0.3
-0.69
0.05
-0.29
-0.9
0.59
0.94
-0.25
0.77
-0.35
0.5
0.47
0.11
0.46
-0.02
-0.81
0.01
0.8
-0.69
0.55
-0.25
-1.02
-0.59
-0.21
0.06
-0.3
-0.05
-0.84
-0.79
0.42
-0.1
-0.07
-0.22
-0.39
0.3
0
-0.09
0.92
-0.16
0.9
-0.09
-0.1
-0.29
-0.67
-0.05
0.28
-0.22
-0.8
0.76
1.32
1.28
-0.48
0.28
-0.15
1.95
0.33
1.56
-0.47
0.45
0.44
-4.18
-2.56
0.9
0.1
-1.25
-0.87
-0.46
0.14
-0.37
1.61
0.49
1.03
-0.32
-1.85
-0.45
0.23
0.31
0.44
-0.48
-0.35
0.41
-1.17
-1.29
0.32
-0.06
-0.11
-0.27
0.16
-0.37
-0.63
-0.12
-0.06
0.95
-0.89
0.07
-0.68
0.56
-0.45
0.75
-0.02
-0.34
0.73
0.41
-0.42
-1.01
-0.06
0.25
-0.39
0.89
0.28
-0.43
-0.7
-0.04
-0.47
-0.1
-1.62
-0.14
-0.09
0.57
1.33
-0.99
0.28
0.57
1.19
-0.17
-0.37
-0.44
-0.49
0.22
0.57
0.1
0.34
0.71
-1.16
1.22
0.81
0.15
-0.33
-1.48
0.07
0.08
-0.18
-0.07
1.29
-0.22
-2.9
2.21
-0.45
0.14
0.18
0.8
1.05
-0.24
-0.91
-0.51
-0.89
-0.72
-0.7
0.37
-1.53
-2.63
-0.68
0.05
-0.75
-1.33
0.78
0.05
0.61
-0.5
-0.85
-0.15
0.56
-0.75
-0.51
0.32
-0.55
-0.85
0.43
-0.76
-0.15
1.17
-1.86
-0.2
-0.85
-2.7
0.81
-0.39
1.77
-2.11
-0.81
1.09
-1
0.92
-0.57
0.26
-0.31
0.88
-0.62
0.69
-0.98
0.41
0.07
-0.6
0.49
0.24
0.29
1.62
2.14
-0.13
-1.47
-0.18
0.58
-0.17
-0.75
0.13
0.32
1.04
-0.27
-0.97
-0.23
0.8
0.45
1.22
-0.31
-1.68
-1.07
0.45
0.65
-0.2
-1.34
-0.21
0.37
1.35
-0.38
1.65
0.15
-0.54
0.94
0.36
-1.14
-0.15
-0.37
0.58
0.66
-1.42
1.57
1.63
-0.28
0.07
-0.35
-3.15
-0.53
-0.34
-0.96
-0.07
-1
1.74
0.47
-0.79
0.38
1.58
0.82
-0.55
-0.19
ses the historical data of the stock, but assumes that a security's beta moves toward the market average over time. The formula is as follow
ver time. The formula is as follows: Adjusted beta = (.67) * Raw beta + (.33) * 1.0.
III.
Terminal
Growth
Rate
World
US US GDP EU EU GDP World GDP
Inflation Growth Inflation Growth Inflation Growth
US 1.98% 47%
EU 1.44% 29%
RoW 3.28% 24%
Total 2.13% 100%
Historical P/E 2011 2012 2013 2014 2015 2016 2017 2018 2019
Tech Mahindra 13.1 8.36 10.51 13.78 10.52 22.33 14.27 15.14 17.38
HCL 20.54 13.59 13.34 16.1 15.4 17.1 14.5 15.56 14.8
TCS 25.59 22.02 22.2 21.84 25.2 20.46 18.23 21.23 25.2
Infosys 27.09 19.66 17.51 17.6 20.49 20.64 16.28 15.93 20.4
Wipro 22.11 19.24 17.44 16.78 17.82 15.56 14.75 16.69 18.2
Mindtree 15.71 9.02 11.05 12.19 20.33 19.83 18.17 22.45 22.2
Hexaware Technologies
8.23 7.67 10.37 18.73 18.65 14.91 20.29 21.3 18.3
Industry Average18.08833
P/E
P/E with Discount
13.97927
Issued Shares
983.268 mn
FY 21 EPS 44.44157
Target Price621.2605
Current Historic Average P/E
16.73 14.21276
13.62 15.455
25.73 22.77
23.09 19.869
20.57 17.916
19 16.995
16.8 15.525
19.785
-15% -23%
Historical P/E 2011 2012 2013 2014
Tech Mahindra 13.1 8.36 10.51 13.78