Financial Modelling and Valua/on

Assignment
ON

United Spirits Ltd

BY

Chinmay Karvir & Aaryan Malik

 EIC FRAMEWORK – ECNOMIC ANALYSIS

UNITED SPIRITS

The EIC (Economy, Industry, Company) framework is a structured approach to conducting

a comprehensive analysis, often used in financial and business research. Let's apply this
framework to analyze United Spirits, focusing on economic, industry, and company-specific
factors.

Industry Synopsis
 India has a youthful population, with over 15 million likely to reach legal drinking age
annually. This gives enormous growth potential for the alcohol beverage sector. By 2030, it
is anticipated that household consumption will total Rs. 300 trillion. Furthermore, the
contribution to consumption from tier 2, 3, and 4 cities is expected to rise as the percentage
of high-income households becomes more evenly distributed. In the next five years, the
world's youngest economy might add 100 million "new drinkers."

Large numbers of Indians are moving to the country's larger cities, where they have access
to a greater range of alcoholic beverage goods, including Indian-made foreign liquor
(IMFL), which is fueling the market's expansion.

United Spirits Limited (UNSP) is one of the country’s leading beverage alcohol companies and a
subsidiary of global leader Diageo PLC. It manufactures, sells and distributes an outstanding
collection of premium brands such as Johnnie Walker, Black Dog, Black & White, Vat 69,
Antiquity, Signature, Royal Challenge, McDowell’s No1, Smirnoff, and Captain Morgan.
 Economic Outlook

United Spirits Limited has leadership status in the spirit industry with ~36 percent market
share. Debt levels have been reduced by ~73 percent over FY17-21, driven by healthy cash flow
from operations which is optimized through greater profitability and working capital management.

A diversified portfolio of products across various price points. There are 9 brands that sell more
than a million cases each year out of which 1 brand sells more than 25 million cases
annually.

Strong distribution network where the point of sale coverage spans across 70,000 outlets. There
are 47+ manufacturing units of which 15 factories are owned by the company.
 The alcoholic beverages industry is highly regulated and the business
faces severe challenges due to frequent changes in government policies.
In an open market, the business has reasonable independence to
increase price. However, in an auction market, the company has to
negotiate with the state-appointed distributors. This is where
premiumization takes a hit.

Segment

The segment-wise key brands from United Spirits Limited’s portfolio are considered on the basis of
different categories that the business has structured.
In terms of volume, UNSP is the largest spirit company in India and the
second largest in the world.

The Popular segment represents 47% (Vs 49% previous year) of total
volumes and ~ 29% (Vs 30% previous year) of total net sales during the
financial year ended March 31, 2021. The Popular segment’s net sales
shrunk by 17.5% during the financial year ended March 2021 versus a
4.2% decline during last year.

United Spirits Limited – Drivers & Challenges

Cost of Goods Sold (COGS) -

• Finance cost – Continuous efforts on cost reduction (working capital reduction, sale
of non-core assets and limited capex) powered by improved efficiencies have led to
a decline in net debt and interest cost by ~50%.
 • Regulatory concerns – Constantly changing regulatory norms are a concern for
running any business. In 2020, the Government in the state of Andhra Pradesh has
changed the route to market by setting up state-managed retail outlets and
discontinuing private retailers. The state of Chhattisgarh has rolled back from
government control to private parties. High inter-state duties compel national
alcohol players to set up owned or contract manufacturing setups in every state.

• Competition – Pernod Richard operates only in the P & A segment and is a leader in
the mid-upper P&A segment. Radico Khaitan operates in P&A and popular segments
with key brands like Magic Moments, Contessa rum and Morpheous brandy. Magic
Moments vodka has over 60% market share across price points in the vodka
category.
 Management is driven by objectives and is focusing on the growth drivers:
• Building on the strength of UNSP’s Scotch portfolio of bottled in India(BII) and
Diageo’s Luxury portfolio of bottled in origin (BIO). The management will introduce
additional brands and build on BIO and BII’s Scotch leadership.
• Transformative innovation with a focus on fast growing segments.
• Focussing on global trends with early traction in India.
• It has started seeding Guinness in the market. This is Diageo’s iconic and premium
beer brand. The initial response to this has been positive and management is
optimistic about the growth prospects.

• Cash Conversion Cycle – Improved working capital has resulted in a better cash
conversion cycle. The debtors turnover ratio has improved significantly during the
last 5 years. Inventory turnover has been a concern during the lockdown and will
improve in the next FY.

The business has room for growth and introducing new products in the Indian market.
With surplus free cash flows and avenues for investment, it will be interesting to see how
the business fares in the long run.

Sep 30, Mar 31, Dec 31,

Title Jun 30, 2023
2023 2023 2022

Total
101,700 89,630 165,690 136,790
Revenue

Gross Profit 49,380 50,330 57,970 72,250

Operating
9,180 9,560 22,940 24,100
Income

Net Income -1,890 1,660 7,920 10,870

Sep 30, Mar 31, Dec 31,

Title Jun 30, 2023
2023 2023 2022

Total Assets 914,550 885,770

Total
572,210 531,480
Liabilities

Total Equity 342,340 354,290 354,290 301,170

 Index
1 Income Statement
2 Balance Sheet
3 Cash Flows
4 Revenue!A1
5 Expense
6 CA Excluding Cash & Investment
7 CL Excluding Loans
8 Working Capital Sheduled
9 D&A Sheduled
10 Debt & Int Scheduled
11 Equity Sheduled
12 FCFF
13 WACC
14 Valuation
FY Year Ending March (Rs. CR) FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 E FY 2024-25 E
Gross Revenue 8131.30 9712.40 10611.60 10707.46 11444.94

REVENUE FROM OPERATIONS 8131.30 9712.40 10611.60 10707.46 11444.94

Other Operating Income 39.60 35.5 73.10 92.97 57.51
Net Revenue 8170.90 9747.90 10684.70 10800.42 11502.45
YoY 19.30% 9.61% 1.08% 6.50%
QoQ
8170.90 9747.90 10684.70 10800.42 11502.45
Cost of materials consumed 3973.10 4796.90 5337.00 5400.21 5751.23
Purchases of stock-in-trade 349.40 577.30 864.20 651.50 693.85
Changes in inventories 133.10 -82.70 -137.10 -88.74 -94.51
COGS 4455.60 5291.50 6064.10 5962.97 6350.57
Gross Profit 3715.30 4456.40 4620.60 4837.45 5151.89
Gross Profit Margin % 45.47% 45.72% 43.25% 44.79% 44.79%

Admin. And Selling Expenses 574.70 694.90 921.80 800.82 852.87

Employee benefits expense 556.40 653.1 610.00 705.21 751.05
Other expenses 1491.90 1464.8 1598.80 1620.06 1725.37
EBITDA 1092.30 1643.60 1490.00 1711.36 1822.60
EBITDA margin % 13.37% 16.86% 13.95% 15.85% 15.85%

D&A 299.1 303.8 282.50 283.16 302.66

EBIT 1339.80 1207.50 1428.20 1519.93
EBIT margin % #VALUE! 13.74% 11.30% 13.22% 13.21%
Finance costs 187.60 88.00 103.90 90.00 90.00
P/L Before Exceptional Items & Tax 605.60 1251.80 1103.60 1338.20 1429.93
Exceptional Items -64.30 -165.20 176.40 170.00 170.00
PBT 541.30 1086.60 1280.00 1508.20 1599.93
541.30 1086.60 1280.00 1508.20 1599.93
Tax 177.9 276 152.80 226.23 239.99
Tax % 32.87% 25.40% 11.94% 15.00% 15.00%
Net Profit (before Asso & JV) 363.40 810.60 1127.20 1281.97 1359.94

Minority Interest 21.50 18.00 10.50 10.50 10.50

Share Of P/L Of Associates -1.30 0.00 -1.40 -1.40 -1.40
Net Profit 383.60 828.60 1136.30 1291.07 1369.04
YoY 116.01% 37.13% 13.62% 6.04%
QoQ
Net profit margin % 4.69% 8.50% 10.63% 11.95% 11.90%
FY 2025-26 E FY 2026-27 E FY 2027-28 E
12303.31 13349.09 14617.25

12303.31 13349.09 14617.25

61.83 67.08 73.45
12365.14 13416.17 14690.71
7.50% 8.50% 9.50%

12365.14 13416.17 14690.71

6182.57 6708.09 7345.35
745.89 809.29 886.17
-101.60 -110.23 -120.70
6826.86 7407.14 8110.82
5538.28 6009.03 6579.89
44.79% 44.79% 44.79%

916.83 994.77 1089.27

807.38 876.01 959.23
1854.77 2012.43 2203.61
1959.29 2125.83 2327.78
15.85% 15.85% 15.85%

325.36 353.02 386.55

1633.93 1772.81 1941.23
13.21% 13.21% 13.21%
90.00 90.00 90.00
1543.93 1682.81 1851.23
170.00 170.00 170.00
1713.93 1852.81 2021.23
1713.93 1852.81 2021.23
257.09 277.92 303.18
15.00% 15.00% 15.00%
1456.84 1574.89 1718.05

10.50 10.50 10.50

-1.40 -1.40 -1.40
1465.94 1583.99 1727.15
7.08% 8.05% 9.04%

11.86% 11.81% 11.76%

FY Year Ending March (Rs. CR) FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25
ASSETS

Non-Current Assets
Property plant and equipment 1,324.70 1,215.20 978.30 859.77 739.75
Right-of-use Assets 164.40 260.60 172.60
Capital work in progress 88.3 87.7 66.80
Goodwill 21 21.00 1.30 20.00 20.00
Other intangible assets 375.55 358.00 356.70 360.00 360.00
Intangible assets under development 8.4 8 16.00
Investment property 7.5 0.00 25.30
FINANCIAL ASSETS
(i) Investments accounted for using the equity method
0.00 0.00 10.10
(ii) Investments 0.00 0.00 20.00
(iii) other financial assets 181.30 148.50 146.20
Deferred tax assets (net) 171.11 147.80 157.30
Current tax assets (net) (Non-current) 1,082.30 1,261.40 1,335.60
Other Non-Current Assets 309.50 239.70 240.70
Non-Current Assets 3,734.00 3,747.90 3,526.90

Current Assets
Inventories 2,051.90 2,156.70 2,230.00 2287.17 2435.83
FINANCIAL ASSETS
(i) Investments 0.00 222.10 255.80
(ii) Trade receivables 2,187.20 2,373.60 2,434.00 2515.17 2678.65
(iii) Cash and Cash Equivalents 77.80 54.50 115.10
(iv) Other balances with banks 6.10 5.80 768.20
(v) Loans 15.60 11.30 16.30 16.48 17.55
(vi) Other Financial Assets 218.60 77.20 136.00 140.41 149.53
Other Current Assets 245.80 262.20 279.20 297.01 316.32

Total Current Assets 4,803.00 5,163.40 6,234.60

TOTAL ASSETS 8,537.00 8,911.30 9,761.50
YoY% 4.38% 9.54%

EQUITY AND LIABILITIES

Equity
Equity Share Capital 145.30 145.30 145.50 145.50 145.50
Other Equity 3,974.50 4,808.40 5,854.00 3974.50 4808.40
Equity attributable to the equity holders of the
4,119.80
company 4,953.70 5,999.50
Non-controlling interest -60.90 -78.90 0.00 0.00 0.00

Total Equity 4,058.90 4,874.80 5,999.50 7145.07 8514.11

YoY% 20.10% 23.07% 19.09% 19.16%

Liabilities
Non-Current Liabilities
Financial liabilities
(i) Borrowings 2.20 0.90 1.00 0.30 0.50
(ii) Lease Liabilities 92.50 134.10 80.00 80 80
Provisions 9.60 48.30 45.10
Deferred tax liabilities (net) 26.10 14.90 12.30
Other non-current liabilities 10.00 0.00 0.00
Total non-current liabilities 140.40 198.20 137.40
YoY% 41.17% -30.68%

Current Liabilities
Financial liabilities
(i) Borrowings 876.80 340.80 0.80 160.00 160.00
(ii) Lease Liabilities 65.30 129.60 102.20 104.35 111.13
(iii) Trade payables 1,417.20 1,582.10 1,782.50 1797.06 1913.87
(a) total outstanding dues of micro enterprises 66.20
and small enterprises
79.30 50.30
(b) total outstanding dues of creditors other1,351.00
than micro enterprices
1,502.80 and small
1,732.20
enterprices
(iv) other financial liabilities 197.50 182.30 0.00 268.33 285.78
Provisions 573.80 488.00 373.10 417.41 444.54
Current Tax Liabilities (net) 322.50 276.50 282.90 327.96 349.28
Other Current Liabilities 884.60 839.00 798.20 894.45 952.58
Total current liabilities 4,337.70 3,838.30 3,624.30 1908.15 2032.18
Total liabilities 4,478.10 4,036.50 3,762.00
TOTAL EQUITY AND LIABILITIES 8,537.00 8,911.30 9,761.50
YoY% 4.38% 9.54%
FY 2025-26 FY 2026-27 FY 2027-28

608.10 462.28 299.29

20.00 20.00 20.00

360.00 360.00 360.00

2618.52 2841.10 3111.00

2879.55 3124.31 3421.12

18.86 20.47 22.41

160.75 174.41 190.98
340.04 368.94 403.99

145.50 145.50 145.50

5854.00 7145.07 8514.11

0.00 0.00 0.00

9980.05 11564.05 13291.19

17.22% 15.87% 14.94%
 0.50 0.50 0.50
80 80 80

160.00 160.00 160.00

119.47 129.62 141.94
2057.41 2232.29 2444.36

307.21 333.32 364.99

477.88 518.50 567.76
375.48 407.39 446.10
1024.03 1111.07 1216.62
2184.59 2370.29 2595.46
FY YEAR ENDING MARCH (RS. CR) FY 2020-21 FY2021-22 FY2022-23
(A) Cash Flow from Operating Activities
PROFIT BEFORE TAX 540 1086.6 1278.6

Adjustments to reconcile profit before tax to net cash flows

Depreciation & Ammortisation Expenses 299.1 303.8 282.5
Employee share-based payment expense 6.6 25.5 23.3
Loss allowance on trade receivables and other financial assets (net) 51 -12.9 -12
Provision for doubtful other assets (net) 6.1 15.8 17.3
Profit on sale of Investment property 0 -0.6 0
Profit on sale of investments 0 0 -16.6
Increase in fair value of investments 0 0 -2.5
Exchange (gain) / loss (net) on translation of foreign currency monetary assets
1.5 and liabilities
0.1 0.7
Finance costs 187.6 88 103.9
Liabilities, provisions no longer required written back -8.6 -13.4 -0.4
Gain on disposal of property, plant and equipment (net) -16.8 -12.3 -20.3
Interest income -11.1 -6.1 -32
Share of net (profit)/loss in associate accounted for using equity method 1.3 0 1.4
Exceptional items, net 64.3 165.2 -176.4
Operating profit before changes in working capital 1121 1639.7 1447.5

(Increase) / decrease in trade receivables 65.2 -205.1 -276.2

(Increase) / decrease in loans and other financial assets 81.1 184.9 -96
(Increase) / decrease in other assets 47.4 -45.5 -123.3
(Increase) / decrease in inventories -124.4 -104.8 -261.9
Increase / (decrease) in trade payables 209.2 122.7 202.7
Increase / (decrease) in other financial liabilities 32.8 -10.1 18.2
Increase / (decrease) in other liabilities 456.5 -64.7 111.1
Increase / (decrease) in provisions 35.7 -82.7 -139.9
Cash generated from operations 1924.5 1434.4 882.2
Income taxes paid (net of refund) -106.8 -457 -267.5
Net cash generated from operating activities 1817.7 977.4 614.7

(B) CASH FLOW FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment and intangible assets -158.9 -134 -136.6
Advance lease payments for right-of-use assets -14.8 0 0
Proceeds from sale of property, plant and equipment 35.4 38.4 26.5
(Purchase) / redemption of current Investments (net) 0 -222.1 -777.2
Investment in an associate -2 0 -31.5
Proceeds from sale of a business undertaking 0 0 818
Proceeds from sale of subsidiaries 30 0 32
Proceeds from disposal of investment in an associate 0 0.5 0
Loans given to others 0 -10 -8
Repayment of loans given to others 0 0 3.2
Interest received 11.1 6.4 20.4
Proceeds from sale of investment property 0 8.1 0
Net cash inflow from investing activities -99.2 -312.7 -53.2
C) CASH FLOW FROM FINANCING ACTIVITIES
Repayment of long term loans -750 0 0
Net proceeds / (repayment) of working capital loans -731.5 -535.7 -339.2
Repayment of deferred sales tax liability -2.6 -2 -1.4
Interest paid on borrowings -126.4 -38.2 -20.3
Principal repayment of lease liabilities -80.7 -100.2 -124
Interest paid on lease liabilities -15.6 -11.9 -16
Net cash inflow / (outflow) from financing activities -1706.8 -688 -500.9

Net increase / (decrease) in cash and cash equivalents 11.7 -23.3 60.6

Cash and cash equivalents as at the beginning of the year 66.1 77.8 545
Effects of exchange rate changes on cash and cash equivalents 0 0 0

Net increase / (decrease) in cash and cash equivalents 11.7 -23.3 606

Cash and cash equivalents as at the end of the year 77.8 54.5 115.1
FY 2023-24 E FY 2024-25 E FY 2025-26 E FY 2026-27 E FY 2027-28 E

35.00 35.00 35.00 35.00 35.00

FY Year Ending March (Rs. CR) FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 E
Gross Revenue 8131.30 9712.40 10611.60 10707.46
% of Revenue from operation 100.00% 100.00% 100.00% 100.00%
REVENUE FROM OPERATIONS 8131.30 9712.40 10611.60 10707.46
% of Net revenue 99.52% 99.64% 99.32% 99.14%
Other Operating Income 39.60 35.50 73.10 92.97
% of Net revenue 0.48% 0.36% 0.68% 0.86%
Net Revenue 8170.9 9747.9 10684.7 10800.42
YoY 19.30% 9.61% 1.08%
QoQ
Checkline

Scenario
Conservative
Moderate
Aggresive
FY 2024-25 E FY 2025-26 E FY 2026-27 E FY 2027-28 E
11444.94 12303.31 13349.09 14617.25
100.00% 100.00% 100.00% 100.00%
11444.94 12303.31 13349.09 14617.25
99.50% 99.50% 99.50% 99.50%
57.51 61.83 67.08 73.45
0.50% 0.50% 0.50% 0.50%
11502.45 12365.14 13416.17 14690.71
6.50% 7.50% 8.50% 9.50%

6.50% 7.50% 8.50% 9.50%

7.50% 9.50% 10.50% 11.50%
8.50% 10.50% 11.50% 12.50%
19-20
0.31%

Company growth rate 4.03%

Industry Growth rate 6.50%
20-21 21-22 22-23 23-24
-13.11% 19.30% 9.61% 1.08%
FY Year Ending March (Rs. CR) FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 E FY 2024-25 E
Cost of materials consumed 3973.10 4796.90 5337.00 5400.21 5751.23
% of revenue 49% 49% 50% 50.00% 50.00%
Purchases of stock-in-trade 349.40 577.30 864.20 651.50 693.85
% of revenue 4.28% 5.92% 8.09% 6.03% 6.03%
Changes in inventories 133.10 -82.70 -137.10 -88.74 -94.51
% of revenue 2% -1% -1% -0.82% -0.82%
Admin. And Selling Expenses 574.70 694.90 921.80 800.82 852.87
% of revenue 7% 7% 9% 7.41% 7.41%
Employee benefits expense 556.40 653.10 610.00 705.21 751.05
% of revenue 7% 7% 6% 6.53% 6.53%
Other expenses 1491.90 1464.80 1598.80 1620.06 1725.37
% of revenue 18.3% 15.0% 15.0% 15.00% 15.00%
Net Revenue 8170.90 9747.90 10684.70 10800.42 11502.45
FY 2025-26 E FY 2026-27 E FY 2027-28 E
6182.57 6708.09 7345.35
50.00% 50.00% 50.00%
745.89 809.29 886.17
6.03% 6.03% 6.03%
-101.60 -110.23 -120.70
-0.82% -0.82% -0.82%
916.83 994.77 1089.27
7.41% 7.41% 7.41%
807.38 876.01 959.23
6.53% 6.53% 6.53%
1854.77 2012.43 2203.61
15.00% 15.00% 15.00%
12365.14 13416.17 14690.71
FY Year Ending March (Rs. CR) FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25
Current Assets
Inventories 2051.90 2156.70 2230.00 2287.17 2435.83
FINANCIAL ASSETS
(ii) Trade receivables 2187.20 2373.60 2434.00 2515.17 2678.65
% Of Net Revenue 26.77% 24.35% 22.78% 23.29% 23.29%
(v) Loans 15.60 11.30 16.30 16.48 17.55
% Of Net Revenue 0.19% 0.12% 0.15% 0.15% 0.15%
(vi) Other Financial Assets 218.60 77.20 136.00 140.41 149.53
% of Net Revenue 2.68% 0.79% 1.27% 1.30% 1.30%
Other Current Assets 245.80 262.20 279.20 297.01 316.32
% Of Net Revenue 3.01% 2.69% 2.61% 2.75% 2.75%
CA Excluding Cash and Investment 4,719.10 4,881.00 5,095.50 5,256.23 5,597.88

COGS 4455.60 5291.50 6064.10 5962.97 6350.57

Net Revenue 8170.90 9747.90 10684.70 10800.42 11502.45

Inventory Days 168.09 148.77 134.22 140.00 140.00

Trade Recievable Days 97.70 88.88 83.15 85.00 85.00

FY 2025-26 FY 2026-27 FY 2027-28

2618.52 2841.10 3111.00

2879.55 3124.31 3421.12

23.29% 23.29% 23.29%
18.86 20.47 22.41
0.15% 0.15% 0.15%
160.75 174.41 190.98
1.30% 1.30% 1.30%
340.04 368.94 403.99
2.75% 2.75% 2.75%
6,017.72 6,529.23 7,149.51

6826.86 7407.14 8110.82

12365.14 13416.17 14690.71

140.00 140.00 140.00

85.00 85.00 85.00

FY Year Ending March (Rs. CR) FY 2020-21 FY 2021-22 FY 2022-23
Current Liabilities
Financial liabilities
(ii) Lease Liabilities 65.30 129.60 102.20
% of COGS 1.47% 2.45% 1.69%
(iii) Trade payables 1,417.20 1,582.10 1,782.50
(a) total outstanding dues of micro enterprises and small enterprises
66.20 79.30 50.30
(b) total outstanding dues of creditors other than micro enterprices
1,351.00
and small1,502.80
enterprices 1,732.20
(iv) other financial liabilities 197.50 182.30 0.00
% of COGS 4.43% 3.45% 0.00%
Provisions 573.80 488.00 373.10
% of COGS 12.88% 9.22% 6.15%
Current Tax Liabilities (net) 322.50 276.50 282.90
% of COGS 7.24% 5.23% 4.67%
Other Current Liabilities 884.60 839.00 798.20
% of COGS 19.85% 15.86% 13.16%
CL Excluding Loans 3,460.90 3497.5 3338.9

Net Revenue 8170.90 9747.90 10684.70

COGS 4455.60 5291.50 6064.10

Trade Payable Days 116.10 109.13 107.29

FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28

104.35 111.13 119.47 129.62 141.94

1.75% 1.75% 1.75% 1.75% 1.75%
1797.06 1913.87 2057.41 2232.29 2444.36

268.33 285.78 307.21 333.32 364.99

4.50% 4.50% 4.50% 4.50% 4.50%
417.41 444.54 477.88 518.50 567.76
7.00% 7.00% 7.00% 7.00% 7.00%
327.96 349.28 375.48 407.39 446.10
5.50% 5.50% 5.50% 5.50% 5.50%
894.45 952.58 1024.03 1111.07 1216.62
15.00% 15.00% 15.00% 15.00% 15.00%
3809.56 4057.18 4361.47 4732.20 5181.76

10800.42 11502.45 12365.14 13416.17 14690.71

5962.97 6350.57 6826.86 7407.14 8110.82

110 110 110 110 110

FY Year Ending March (Rs. CR) FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 E
Inventory Days 168.09 148.77 134.22 140.00
Trade Receivable Days 97.70 88.88 83.15 85.00
Trade Payable Days 116.10 109.13 107.29 110.00
Cash Conversion Cycle 149.70 128.51 110.08 115.00

CA Excluding Cash & Investment 4,719.10 4,881.00 5,095.50 5,256.23

CL Excluding loan 3,460.90 3,497.50 3,338.90 3,809.56
Net Working Capital 1258.20 1383.50 1756.60 1446.67

Change In WC (Increase)/ Decrease 125.30 373.10 -309.93

FY 2024-25 E FY 2025-26 E FY 2026-27 E FY 2027-28 E
140.00 140.00 140.00 140.00
85.00 85.00 85.00 85.00
110.00 110.00 110.00 110.00
115.00 115.00 115.00 115.00

5,597.88 6,017.72 6,529.23 7,149.51

4,057.18 4,361.47 4,732.20 5,181.76
1540.70 1656.25 1797.03 1967.75

94.03 115.55 140.78 170.72

FY Year Ending March (Rs. CR) FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24FY
E 2024-25FY
E 2025-26 E

REVENUE FROM OPERATIONS 8131.30 9712.40 10611.60 10707.46 11444.94 12303.31

Property, Plant and Equipment 1,324.70 1,215.20 978.30 859.77 739.75 608.10
Other Intangible assets 375.55 358.00 356.70 360.00 360.00 360.00
Goodwill 21.00 21.00 1.30 20.00 20.00 20.00

Capex 158.90 134.00 136.60 138.13 147.64 158.71

% revenue from operation 1.95% 1.38% 1.29% 1.29% 1.29% 1.29%

D&A 299.10 303.80 282.50 283.16 302.66 325.36

D&A % of purchase of PPE & intangible 188.23% 226.72% 206.81% 205.00% 205.00% 205.00%

Op Property Plant & Equipment 1324.7 1215.2 978.3 859.77 739.75

Capex 158.90 134.00 136.60 138.13 147.64 158.71
D&A 283.16 302.66 325.36
Sale of property, plant and equipment 26.50 35.00 35.00
Cl Property Plant & Equipment 1324.7 1215.2 978.3 859.77 739.75 608.10
FY 2026-27FY
E 2027-28 E

13349.09 14617.25

462.28 299.29 Fixed Assets

360.00 360.00
20.00 20.00

172.20 188.56 Capex

1.29% 1.29%

353.02 386.55
205.00% 205.00%

608.10 462.28
172.20 188.56
353.02 386.55
35.00 35.00
462.28 299.29
FY Year Ending March (Rs. CR) FY 2020-21FY 2021-22FY 2022-23 FY 2023-24 E FY 2024-25 E
Long Term
Financial liabilities
(i) Borrowings 876.8 340.8 200 160.00 160.00
(ii) Lease Liabilities 65.30 110.00 182.20 182.20 182.20
(iv) other financial liabilities 197.5 162.5 150 160.00 160.00

Short Term
(i) Borrowings 2.20 0.90 1.00 0.30 0.50
Total Borrowing 1,141.80 605.00 533.20 502.50 502.70
Finance costs 187.60 88.00 103.90 90.00 90.00
Int Rate 16.43% 14.55% 19.49% 17.91% 17.90%

16.8%
FY 2025-26 E FY 2026-27 E FY 2027-28 E

160.00 160.00 160.00

182.20 182.20 182.20
160.00 160.00 160.00

0.50 0.50 0.50

502.70 502.70 502.70
90.00 90.00 90.00
17.90% 17.90% 17.90%

B
FY Year Ending March (Rs. CR) FY 2020-21 FY 2021-22FY 2022-23FY 2023-24 FY
E 2024-25 FY
E 2025-26 E

Equity Share capital 145.30 145.30 145.50 145.50 145.50 145.50

Op. Other Equity 3974.50 4808.40 5854.00 7145.07 8514.11

Net Profit 383.60 828.60 1136.30 1291.07 1369.04 1465.94
Retain Earning 383.60 828.60 1136.30 1291.07 1369.04 1465.94
Issuance of Equity 0.00 0.00 0.00 0.00 0.00 0.00
Dividend Paid 0 0 0 0 0 0
Div Payout Ratio 0% 0% 0% 0% 0% 0%
Dividend distribution tax refund received
0.00 0.00 0.00 0.00 0.00 0.00
Cl Other Equity (Reserve & Surplus)3,974.50 4,808.40 5,854.00 7145.07 8514.11 9980.05
Check Line 4803.10 5944.70 7145.07 8514.11 9980.05

Non-controlling interests -60.90 -78.90 0.00 0.00 0.00 0.00

Total Equity 3,913.60 4,729.50 5,854.00 7,145.07 8,514.11 9,980.05
FY 2026-27 FY
E 2027-28 E

145.50 145.50

9980.05 11564.05
1583.99 1727.15
1583.99 1727.15
0.00 0.00
0 0
0% 0%
0.00 0.00
11564.05 13291.19
11564.05 13291.19

0.00 0.00
11,564.05 13,291.19
FY Year Ending March (Rs. CR) FY 2020-21FY 2021-22FY 2022-23FY 2023-24 FY
E 2024-25 FY
E 2025-26 E
Net Profit 383.60 828.60 1136.30 1291.07 1369.04 1465.94
Finance costs 187.60 88.00 103.90 90.00 90.00 90.00
Tax % 32.87% 25.40% 11.94% 15.00% 15.00% 15.00%
D&A 299.10 303.80 282.50 283.16 302.66 325.36
CAPEX 158.90 134.00 136.60 138.13 147.64 158.71
increase in working capital 125.30 373.10 -309.93 94.03 115.55
FCFF 938.75 1000.60 1822.54 1506.53 1593.54
Growth of FCFF 6.59% 82.14% -17.34% 5.78%
FY 2026-27 FY
E 2027-28 E
1583.99 1727.15
90.00 90.00
15.00% 15.00%
353.02 386.55
172.20 188.56
140.78 170.72
1700.52 1830.92
6.71% 7.67%
FY Year Ending March (Rs. CR) FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 E
Rf 7.18%
Rm 12.69% 2013
Beta 0.56 2023
Ke 10.27% n
Total Equity 7145.07 CAGR
We 93.43%
Total Debt 502.50
Wd 6.57%
Total Capital 7647.57
Kd 17.91%
Tax Rate 15.00%
cost of funds(WACC) 10.59%

constant growth rate 8.00%

Nifty
5995.49
19802
10
12.69%
FY Year Ending March (Rs. CR) FY 2020-21FY 2021-22FY 2022-23FY 2023-24 EFY 2024-25FY
E 2025-26 E
Yr No 0 1 2
FCFF 938.75 1000.60 1822.54
Terminal Value
Final FCFF 938.7477 1000.597 1822.537
PV of FCFF 938.7477 904.7659 1490.151
K 10.59%
g 8.00%

DCF 49903.34
No. of outstanding shares 145.50

DCF Price/ Intrinsic Value 342.98

FY 2026-27 E FY 2027-28 E
3 4
1506.53 1593.54
61483.54
62990.07 1593.54
46569.67236