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/r
Step 2 - After creating your account, while you are logged in to Screener.in website, visit this page - https://www.screener.in/e
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 w
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"
which you must update manually from the company's annual reports. Don’t forget to make these changes as these numbers are
3. You may update the sheet and add your own analysis, formulae etc. and then upload again to Screener.in site using the Ste
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 (
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 - [email protected] - 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 Warning! Excel can be a wonde
deadly weapon if you wish t
Excel (Ver. 4.0) careful of what you are gettin
garbage out. And if you need th
given stock, you m
www.safalniveshak.com
Basic Company Details
Parameters Details
Company HCL TECHNOLOGIES LTD
Current Stock Price (Rs) 984 Remember! Focus on decision
Face Value (Rs) 2.0 evidenc
No. of Shares (Crore) 271.4
Market Capitalization (Rs Crore) 266,903

Key Financials - Trend

Parameters Details
Sales Growth (9-Year CAGR) 14.4% Please! It's your money. Plea
cause you to lose it all! I've des
Profit Before Tax Growth (9-Year CAGR) 13.9% but you alone are responsible
Net Profit Growth (8-Year CAGR) 14.3% ever after! I am not a sadist
Average Debt/Equity (5-Years, x) 0.1 analyzing companies on you
instead of a map, for you can co
Average Return on Equity (5-Years) 22.1%
Average P/E (5-Years, x) 17.6
Latest P/E (x) 19.7
Warning! Excel can be a wonderful tool to analyze the past. But it can be a
deadly weapon if you wish to use it to predict the future! So be very
careful of what you are getting into. Here, garbage in will always equal
garbage 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.

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

evidence. Calculate. Pray!

Please! It's your money. Please don't blame me if results of this excel
cause you to lose it all! I've designed this excel to aid your own thinking,
but you alone are responsible for your actions. I want to live peacefully
ever after! I am not a sadist who wants you to do the hard work by
analyzing companies on your own. But I'd rather give you a compass
instead 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
HCL TECHNOLOGIES LTD
Rs Cr Jun-13 Jun-14 Jun-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Equity Share Capital 139 140 281 282 285 278 271 543 543 543
Reserves 13,020 19,402 23,943 27,109 32,664 36,108 41,095 50,724 59,370 61,371
Borrowings 1,044 1,018 648 1,090 582 557 4,195 7,986 6,501 6,343
Other Liabilities 8,196 9,419 10,373 10,860 12,231 11,046 12,788 23,566 19,633 20,776
Total 22,399 29,980 35,245 39,341 45,762 47,989 58,349 82,819 86,047 89,033

Net Block 6,753 7,444 8,275 9,716 15,235 18,753 22,888 37,490 37,145 35,077
Capital Work in Progress 494 531 552 611 448 320 235 400 312 129
Investments 713 662 869 698 1,306 2,660 2,305 7,066 6,862 6,351
Other Assets 14,440 21,343 25,548 28,315 28,773 26,256 32,921 37,863 41,728 47,476
Total 22,399 29,980 35,245 39,341 45,762 47,989 58,349 82,819 86,047 89,033

Working Capital 6,244 11,924 15,176 17,456 16,542 15,210 20,133 14,297 22,095 26,700
Debtors 4,497 5,683 6,539 7,721 8,301 9,639 11,706 14,131 13,663 15,476
Inventory 232 122 158 264 276 172 91 91 94 161
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 64 65 65 91 64 70 71 73 66 66
Inventory Turnover 111 263 233 118 172 294 664 777 802 532
Fixed Asset Turnover 3.8 4.3 4.4 3.2 3.1 2.7 2.6 1.9 2.0 2.4
Debt/Equity 0.1 0.1 0.0 0.0 0.0 0.0 0.1 0.2 0.1 0.1
Return on Equity 31% 33% 30% 20% 26% 24% 24% 22% 19% 22%
Return on Capital Employed 38% 39% 37% 25% 32% 30% 28% 24% 25% 25%
 Profit & Loss Account / Income Statement
HCL TECHNOLOGIES LTD
Rs Cr Jun-13 Jun-14 Jun-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Trailing
Sales 25,581 32,144 36,701 31,136 47,568 50,569 60,427 70,676 75,379 85,651 85,651
% Growth YOY 26% 14% -15% 53% 6% 19% 17% 7% 14%
Expenses 19,901 24,108 28,215 24,482 37,178 39,323 46,501 53,360 55,331 65,122 65,122
Material Cost (% of Sales) 4% 3% 4% 3% 2% 2% 3% 2% 2% 2% Check for wide fluctuations in key
Power and Fuel 1% 1% 1% 1% 1% 1% 1% 0% 0% 0% expense items. For manufacturing firms,
Other Mfr. Exp 13% 15% 16% 18% 20% 19% 18% 17% 16% 0% check their material costs etc. For
Employee Cost 49% 46% 48% 49% 48% 49% 48% 49% 52% 54% services firms, look at employee costs.
Selling and Admin Cost 9% 8% 8% 7% 6% 6% 6% 4% 2% 0%
Operating Profit 5,680 8,035 8,486 6,654 10,390 11,246 13,926 17,316 20,048 20,529 20,529
Operating Profit Margin 22% 25% 23% 21% 22% 22% 23% 25% 27% 24% 24%
Other Income 332 677 1,126 871 1,069 1,230 943 589 927 1,067 1,067
Other Income as % of Sales 1.3% 2.1% 3.1% 2.8% 2.2% 2.4% 1.6% 0.8% 1.2% 1.2% 1.2%
Depreciation 637 681 404 410 828 1,383 2,073 3,420 4,611 4,326 4,326
Interest 106 115 91 74 89 69 174 505 511 319 319
Interest Coverage(Times) 51 70 101 96 119 161 74 29 32 54 54
Profit before tax (PBT) 5,270 7,917 9,117 7,041 10,542 11,024 12,622 13,980 15,853 16,951 16,951
% Growth YOY 50% 15% -23% 50% 5% 14% 11% 13% 7%
PBT Margin 21% 25% 25% 23% 22% 22% 21% 20% 21% 20% 20%
Tax 1,225 1,410 1,815 1,439 1,936 2,302 2,502 2,923 4,684 3,428 3,428
Net profit 4,045 6,508 7,302 5,602 8,606 8,722 10,120 11,057 11,169 13,523 13,523
% Growth YOY 61% 12% -23% 54% 1% 16% 9% 1% 21%
Net Profit Margin 16% 20% 20% 18% 18% 17% 17% 16% 15% 16% 16%
EPS 14.5 23.2 26.0 19.9 30.2 31.3 37.3 40.7 41.2 49.8 49.8
% Growth YOY 60% 12% -24% 52% 4% 19% 9% 1% 21%
Price to earning 13.4 16.1 17.7 20.5 14.5 15.5 14.6 10.7 23.9 23.4 19.7
Price 194 375 460 407 437 484 544 436 983 1,164 984
Dividend Payout 20.7% 10.8% 57.6% 40.3% 39.7% 19.1% 10.7% 24.6% 24.4% 88.5%
Market Cap 54,076 105,011 129,318 114,821 ### ### ### ### ### ###
Retained Earnings 3,207 5,808 3,093 3,345 5,186 7,054 9,036 8,342 8,448 1,556
Buffett's $1 Test 4.8

TRENDS: 10 YEARS 7 YEARS 5 YEARS 3 YEARS

Sales Growth 14.4% 12.9% 12.5% 12.3%
PBT Growth 13.9% 9.3% 10.0% 10.3%
PBT Margin 21.8% 21.2% 20.7% 20.2%
Price to Earning 17.0 17.6 17.6 19.3
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
HCL TECHNOLOGIES LTD
Rs Cr Jun-13 Jun-14 Jun-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Total
Cash from Operating Activity (CFO) 4,492 6,457 5,539 3,823 8,995 8,328 8,971 13,359 19,618 16,900 96,481
% Growth YoY 44% -14% -31% 135% -7% 8% 49% 47% -14%
Cash from Investing Activity -2,361 -4,842 -2,088 -2,208 -3,890 -2,236 -3,256 ### -5,677 1,477 -37,414
Cash from Financing Activity -2,086 -1,308 -3,140 -2,237 -4,517 -5,714 -1,471 -3,168 ### ### -49,330
Net Cash Flow 44 307 311 -623 588 378 4,244 -2,141 2,761 3,869 9,738
CFO/Sales 18% 20% 15% 12% 19% 16% 15% 19% 26% 20%
CFO/Net Profit 111% 99% 76% 68% 105% 95% 89% 121% 176% 125%
Capex** 315 212 364 565 607 937 1,156 1,638 1,238 824
FCF 4,177 6,245 5,175 3,258 8,388 7,391 7,815 11,721 18,380 16,076 88,625
Average FCF (3 Years) 15,392
FCF Growth YoY 50% -17% -37% 157% -12% 6% 50% 57% -13%
FCF/Sales 16% 19% 14% 10% 18% 15% 13% 17% 24% 19%
FCF/Net Profit 103% 96% 71% 58% 97% 85% 77% 106% 165% 119%

** 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
HCL TECHNOLOGIES LTD
Jun/13 Jun/14 Jun/15 Mar/16 Mar/17 Mar/18 Mar/19 Mar/20 Mar/21
Sales Growth 25.7% 14.2% -15.2% 52.8% 6.3% 19.5% 17.0% 6.7%
PBT Growth 50.2% 15.2% -22.8% 49.7% 4.6% 14.5% 10.8% 13.4%
Net Profit Growth 60.9% 12.2% -23.3% 53.6% 1.3% 16.0% 9.3% 1.0%
Dividend Growth -16.3% 502.6% -46.5% 51.6% -51.2% -35.0% 150.5% 0.0%
Operating Cash Flow Growth 43.8% -14.2% -31.0% 135.3% -7.4% 7.7% 48.9% 46.9%
Free Cash Flow Growth 49.5% -17.1% -37.1% 157.5% -11.9% 5.7% 50.0% 56.8%

Operating Margin 22.2% 25.0% 23.1% 21.4% 21.8% 22.2% 23.0% 24.5% 26.6%
PBT Margin 20.6% 24.6% 24.8% 22.6% 22.2% 21.8% 20.9% 19.8% 21.0%
Net Margin 15.8% 20.2% 19.9% 18.0% 18.1% 17.2% 16.7% 15.6% 14.8%

Debtor Days 64.2 64.5 65.0 90.5 63.7 69.6 70.7 73.0 66.2
Inventory Turnover 110.5 262.8 232.9 117.7 172.3 294.0 664.0 776.7 801.9
Fixed Asset Turnover 3.8 4.3 4.4 3.2 3.1 2.7 2.6 1.9 2.0
Debt/Equity 0.1 0.1 0.0 0.0 0.0 0.0 0.1 0.2 0.1
Debt/Assets 4.7% 3.4% 1.8% 2.8% 1.3% 1.2% 7.2% 9.6% 7.6%
Interest Coverage (Times) 50.9 70.1 100.9 96.3 119.4 160.8 73.5 28.7 32.0
Return on Equity 30.7% 33.3% 30.1% 20.5% 26.1% 24.0% 24.5% 21.6% 18.6%
Return on Capital Employed 37.8% 39.1% 37.0% 25.0% 31.7% 30.0% 28.1% 24.4% 24.6%
Free Cash Flow (Rs Cr) 4,177 6,245 5,175 3,258 8,388 7,391 7,815 11,721 ###
Mar/22
13.6%
6.9%
21.1%
340.0%
-13.9%
-12.5%

24.0%
19.8%
15.8%

66.0
532.0
2.4
0.1
7.1%
54.1
21.8%
25.3%
###
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 50% Capital Allo
Check for a rising trend
25% 40% Numbers > 20% long te
company has zero/marg
20%
30% competitor
15%
20%
10%
5% Check for a rising trend and/or 10%
consistency. Compare with a close
0% competitor 0%
3 4 5 6 7 8 9 0 1 2 3 4 5 6
n/1 n/1 n/1 n/1 n/1 n/1 n/1 n/2 n/2 n/2 n/1 n/1 n/1 n/1
Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja
Operating Margin PBT Margin
Net Margin ROE

90,000 Revenue 80% Revenue and P

Check for a
80,000 Check for a rising trend. Compare gr
60%
70,000 tor.
60,000 40%
50,000
40,000 20%
30,000 0%
20,000 4 5 6 7
10,000 -20% n/1 n/1 n/1 n/1
- Ja Ja Ja Ja
-40%
/13 /14 /15 /16 /17 /18 /19 /20 /21 /22 Revenue Grow
n n n n n n n n n n
Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Net Profit Gro

20,000 Profit Over Time Operating an

25,000 Check
Check for a rising trend. for positive nu
and which are rising o
15,000 20,000 time.
15,000
10,000
10,000
5,000 5,000
- -
3 4 5 6 7 8 9 0 1 2 3 4 5 6
n/1 n/1 n/1 n/1 n/1 n/1 n/1 n/2 n/2 n/2 n/1 n/1 n/1 n/1
Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja J

PBT Net Profit Operating Cash F

Data for Charts (Please don't touch any number below)
Margins
Jun/13 Jun/14 Jun/15 Mar/16 Mar/17 Mar/18 Mar/19 Mar/20 Mar/21
Operating Margin 22% 25% 23% 21% 22% 22% 23% 25% 27%
PBT Margin 21% 25% 25% 23% 22% 22% 21% 20% 21%
Net Margin 16% 20% 20% 18% 18% 17% 17% 16% 15%

Management Effectiveness
Jun/13 Jun/14 Jun/15 Mar/16 Mar/17 Mar/18 Mar/19 Mar/20 Mar/21
ROE 31% 33% 30% 20% 26% 24% 24% 22% 19%
ROCE 38% 39% 37% 25% 32% 30% 28% 24% 25%

Revenue & Profit Growth

Jun/14 Jun/15 Mar/16 Mar/17 Mar/18 Mar/19 Mar/20 Mar/21 Mar/22
Revenue Growth 26% 14% -15% 53% 6% 19% 17% 7% 14%
PBT Growth 50% 15% -23% 50% 5% 14% 11% 13% 7%
Net Profit Growth 61% 12% -23% 54% 1% 16% 9% 1% 21%

Revenue & Profit

Jun/13 Jun/14 Jun/15 Mar/16 Mar/17 Mar/18 Mar/19 Mar/20 Mar/21
Revenue 25,581 32,144 36,701 31,136 47,568 50,569 60,427 70,676 75,379
PBT 5,270 7,917 9,117 7,041 10,542 11,024 12,622 13,980 15,853
Net Profit 4,045 6,508 7,302 5,602 8,606 8,722 10,120 11,057 11,169

Cash Flows
Jun/13 Jun/14 Jun/15 Mar/16 Mar/17 Mar/18 Mar/19 Mar/20 Mar/21
Operating Cash Flow 4,492 6,457 5,539 3,823 8,995 8,328 8,971 13,359 19,618
Free Cash Flow 4,177 6,245 5,175 3,258 8,388 7,391 7,815 11,721 18,380
 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 Note: Please ignore the dates
competitor 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

3 4 5 6 7 8 9 0 1 2
n/1 n/1 n/1 n/1 n/1 n/1 n/1 n/2 n/2 n/2
a Ja Ja Ja Ja Ja Ja Ja Ja Ja

ROE ROCE

Revenue and Profit Growth (YoY)

Check for a rising trend and/or low volatility.
Compare growth rates with a close competi-
tor.

4 5 6 7 8 9 0 1 2
n/1 n/1 n/1 n/1 n/1 n/1 n/2 n/2 n/2
a Ja Ja Ja Ja Ja Ja Ja Ja

Revenue Growth PBT Growth

Net Profit Growth

Operating and Free

0 Check Cash Flow
for positive numbers
and which are rising over
0 time.
0
0
0

3 4 5 6 7 8 9 0 1 2
n/1 n/1 n/1 n/1 n/1 n/1 n/1 n/2 n/2 n/2
Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja

Operating Cash Flow Free Cash Flow

Mar/22
24%
20%
16%

Mar/22
22%
25%

Mar/22
85,651
16,951
13,523

Mar/22
16,900
16,076
 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 4% 3% 4% 3% 2% 2% 3% 2% 2% 2%
Change in Inventory 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Power and Fuel 1% 1% 1% 1% 1% 1% 1% 0% 0% 0%
Other Mfr. Exp 13% 15% 16% 18% 20% 19% 18% 17% 16% 0%
Employee Cost 49% 46% 48% 49% 48% 49% 48% 49% 52% 54%
Selling and Admin Cost 9% 8% 8% 7% 6% 6% 6% 4% 2% 0%
Other Expenses 2% 1% 1% 2% 2% 1% 1% 2% 1% 21%
Operating Profit 22% 26% 23% 21% 22% 23% 23% 25% 27% 24%
Other Income 1% 2% 3% 3% 2% 2% 2% 1% 1% 1%
Depreciation 2% 2% 1% 1% 2% 3% 3% 5% 6% 5%
Interest 0% 0% 0% 0% 0% 0% 0% 1% 1% 0%
Profit Before Tax 21% 25% 25% 23% 22% 22% 21% 20% 21% 20%
Tax 5% 4% 5% 5% 4% 5% 4% 4% 6% 4%
Net Profit 16% 20% 20% 18% 18% 17% 17% 16% 15% 16%
Dividend Amount 3% 2% 11% 7% 7% 3% 2% 4% 4% 14%

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 1% 0% 1% 1% 1% 1% 0% 1% 1% 1%
Reserves 58% 65% 68% 69% 71% 75% 70% 61% 69% 69%
Borrowings 5% 3% 2% 3% 1% 1% 7% 10% 8% 7%
Other Liabilities 37% 31% 29% 28% 27% 23% 22% 28% 23% 23%
Total Liabilities 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Net Block 30% 25% 23% 25% 33% 39% 39% 45% 43% 39%
Capital Work in Progress 2% 2% 2% 2% 1% 1% 0% 0% 0% 0%
Investments 3% 2% 2% 2% 3% 6% 4% 9% 8% 7%
Other Assets 64% 71% 72% 72% 63% 55% 56% 46% 48% 53%
Total Assets 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Receivables 20% 19% 19% 20% 18% 20% 20% 17% 16% 17%
Inventory 1% 0% 0% 1% 1% 0% 0% 0% 0% 0%
Cash & Bank 16% 29% 28% 24% 20% 8% 13% 6% 10% 14%
 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

HCL TECHNOLOGIES LTD HCL TECHNOLOGIES LTD

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 17,701 15,805 Year 4-6 10% 1 FY18
2 FY19 20,356 16,228 Year 7-10 5% 2 FY19
3 FY20 23,410 16,663 Discount Rate 12% 3 FY20
4 FY21 25,751 16,365 4 FY21
5 FY22 28,326 16,073 Last 5-Years' CAGR 5 FY22
6 FY23 31,158 15,786 Sales 12% 6 FY23
7 FY24 32,716 14,799 PBT 10% 7 FY24
8 FY25 34,352 13,874 FCF 14% 8 FY25
9 FY26 36,070 13,007 9 FY26
10 FY27 37,873 12,194 10 FY27
10 378,732 121,941 10
Intrinsic Value 278,564 Intrinsic Value
Current Mkt. Cap. 266,903 Current Mkt. Cap.
Premium/(Discount) to IV -4% 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 th
number. This number is your assumption of FCF the business will earn in a normal year, without capex. Check the history
business while arriving at your assumption, and use your judgment wisely without twisting the model to fit your version of r
Calculation
by Mohnish Pabrai

HCL TECHNOLOGIES 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%
18,471 16,492 Year 4-6 15%
22,165 17,670 Year 7-10 10%
26,598 18,932 Discount Rate 12%
30,588 19,439
35,176 19,960
40,452 20,494
44,497 20,128
48,947 19,769
53,842 19,416
59,226 19,069
888,387 286,037
Intrinsic Value 483,234
Current Mkt. Cap. 266,903
Premium/(Discount) to IV -45%

use a normalized positive FCF as the starting

, without capex. Check the history of this
ng the model to fit your version of reality.
 Ben Graham Formula (Low Range) Ben Graham Formula (High Range
Company Name CL TECHNOLOGIES LTD Company Name
Year Ended Mar/22 Year Ended

Avg 5-Yr Net Profit (Rs Crore) 10,918.2 Avg 5-Yr Net Profit (Rs Crore)
PE Ratio at 0% Growth 8.5 PE Ratio at 0% Growth
Long-Term Growth Rate 4.7 Long-Term Growth Rate

Ben Graham Value (Rs Crore) 196,088 Ben Graham Value (Rs Crore)
Current Market Cap (Rs Crore) 266,903 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)
CL TECHNOLOGIES LTD
Mar/22

10,918.2
8.5
9.5

299,371
266,903

is the growth rate for the next 7-10 years

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 num
resent, we divide this number by today’s AAA corporate bond rate, represented by Y in the formula above.
 Dicounted Cash Flow Valuation
HCL TECHNOLOGIES LTD

Initial Cash Flow (Rs Cr) 15,392 ###

###
Years 1-5 6-10 131%
FCF Growth Rate 15% 12%
Discount Rate 12%
Terminal Growth Rate 2%

Net Debt Level (Rs Cr) 514

Year FCF Growth Present Value

1 17,701 15% 15,805
2 20,356 15% 16,228
3 23,410 15% 16,663
4 26,921 15% 17,109
5 30,959 15% 17,567
6 34,674 12% 17,567
7 38,835 12% 17,567
8 43,496 12% 17,567
9 48,715 12% 17,567
10 54,561 12% 17,567

Final Calculations
Terminal Year 55,652
PV of Year 1-10 Cash Flows ###
Terminal Value ###
Total PV of Cash Flows ###
Current Market Cap (Rs Cr) ###

Note: See explanation of DCF here

Valuation
LTD

DCF Value (As calculated in cell B29)

Current Market Cap
DCF as % of Current Mkt Cap
 Expected Returns Model
HCL TECHNOLOGIES LTD
Particulars Jun/13 Jun/14 Jun/15 Mar/16 Mar/17 Mar/18 Mar/19
Net Profit (Rs Crore) 4,040 6,510 7,317 5,602 8,606 8,721 ###
Net Profit Margin 16% 20% 20% 18% 18% 17% 17%
Return on Equity 31% 33% 30% 20% 26% 24% 24%

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) 41,926
Current P/E (x) 19.8
Exit P/E in the 10th year from now (x, Estimated) 20.0
Esti. Market Cap (10th year from now; Rs Cr) 838,517
Cost of Capital/Discount Rate 12%
Discounted Value (Rs Cr) 269,980
Current Market Cap (Rs Cr) 266,903

Note: See explanation of this model here

el
Mar/20 Mar/21 Mar/22 CAGR (9-Yr) CAGR (5-Yr)
### ### ### 14% 9%
16% 15% 16%
22% 19% 22%
 Intrinsic Value Range
HCL TECHNOLOGIES LTD
Lower Higher Remember! Give importance to a stock's valuations / fai
Dhandho 278,564 ### only "after" you have answered in "Yes" to these two que
Ben Graham 196,088 ### (1) Is this business simple to be understood? and (2) C
understand this business?
DCF 350,392
Expected Return 269,980 Don't try to quantify everything. In stock research, the les
Current Market Cap. 266,903 mathematical you are, the more simple, sensible, and use
be your analysis and results. Great analysis is generally "
Explanation: Considering the above the-envelope".
range, we can say that Hero Moto's IV
range is between Rs 55,000 crore to Rs Also, your calculated "fair value" will be proven wrong
95,000 crore. It's a big range, but that's future, so don't invest your savings just because you fall
fine (who is looking for precision?). Now, with it. Don't look for perfection. It is overrated. Focus
if the current market cap is within this IV decisions, not outcomes. Look for disconfirming evide
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
ve answered in "Yes" to these two questions -
ess 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
nd 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.
HCL TECHNOLOGIES LTD
SCREENER.IN
Narration Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22
Sales ### ### ### ### ### ### ### ### ### ###
% Growth YOY 6% 6% 12% 11% 16% 15%
Expenses ### ### ### ### ### ### ### ### ### ###
Operating Profit 4,629 4,858 4,757 5,118 5,624 4,549 5,062 5,022 5,393 5,052
Other Income 157 147 295 199 189 244 255 240 255 317
Depreciation 942 996 1,065 1,092 1,187 1,267 1,128 1,078 1,136 984
Interest 158 124 125 80 147 159 89 83 82 65
Profit before tax 3,686 3,885 3,862 4,145 4,479 3,367 4,100 4,101 4,430 4,320
PBT Margin 20% 21% 22% 22% 23% 17% 20% 20% 20% 19%
% Growth YOY 22% -13% 6% -1% -1% 28%
Tax 742 713 927 999 502 2,256 887 838 982 721
Net profit 2,944 3,172 2,931 3,143 3,969 1,102 3,205 3,259 3,442 3,593
% Growth YOY 35% -65% 9% 4% -13% 226%
OPM 26% 26% 27% 28% 29% 23% 25% 24% 24% 22%
COMPANY NAME HCL TECHNOLOGIES LTD
LATEST VERSION 2.10 PLEASE DO NOT MAKE ANY CH
CURRENT VERSION 2.10

META
Number of shares 271.37
Face Value 2
Current Price 983.55
Market Capitalization 266902.53

PROFIT & LOSS

Report Date Jun-13 Jun-14 Jun-15 Mar-16 Mar-17 Mar-18
Sales 25581.06 32143.66 36701.22 31135.94 47568 50569
Raw Material Cost 975.46 920.92 1,306.38 812.73 826.00 1,251.00
Change in Inventory 16.12 -108.06 35.65 108.75 11.00 -104.00
Power and Fuel 228.58 241.99 264.88 210.53 307 313
Other Mfr. Exp 3317.67 4919.96 5860.79 5632.96 9286 9388
Employee Cost 12574.17 14906.36 17726.43 15203.25 22866 24729
Selling and admin 2238.12 2602.09 2853.17 2205.52 2988 2810
Other Expenses 582.74 408.99 239.15 526.15 916 728
Other Income 331.83 677.4 1125.97 870.89 1069 1230
Depreciation 636.76 680.86 403.75 409.86 828 1383
Interest 105.62 114.5 91.23 73.9 89 69
Profit before tax 5269.89 7917.33 9117.06 7040.68 10542 11024
Tax 1225.31 1409.57 1815.11 1439 1936 2302
Net profit 4040.09 6509.51 7317.07 5602.43 8606 8721
Dividend Amount 836.22 700 4218 2256.64 3420 1668

Quarters
Report Date Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21
Sales 18135 18587 17842 18594 19302 19641
Expenses 13506 13729 13085 13476 13678 15092
Other Income 157 147 295 199 189 244
Depreciation 942 996 1065 1092 1187 1267
Interest 158.00 124.00 125.00 80.00 147.00 159.00
Profit before tax 3686 3885 3862 4145 4479 3367
Tax 742 713 927 999 502 2256
Net profit 2944 3172 2931 3143 3969 1102
Operating Profit 4629 4858 4757 5118 5624 4549

BALANCE SHEET
Report Date Jun-13 Jun-14 Jun-15 Mar-16 Mar-17 Mar-18
Equity Share Capital 139.37 140 281.2 282.08 285 278
Reserves 13019.61 19402.18 23943.19 27108.64 32664 36108
Borrowings 1,044.41 1,018.05 647.76 1,090.36 582.00 557.00
Other Liabilities 8195.93 9419.46 10372.52 10859.52 12231 11046
Total 22399.32 29979.69 35244.67 39340.6 45762 47989
Net Block 6752.54 7443.94 8275.27 9716.09 15235 18753
Capital Work in Progress 493.84 530.95 551.52 610.9 448 320
Investments 713.04 661.69 869.39 698.38 1306 2660
Other Assets 14439.9 21343.11 25548.49 28315.23 28773 26256
Total 22399.32 29979.69 35244.67 39340.6 45762 47989
Receivables 4497.15 5682.84 6538.69 7721.14 8301 9639
Inventory 231.50 122.30 157.61 264.48 276.00 172.00
Cash & Bank 3577.11 8807.3 9786.23 9334.6 9044 4018
No. of Equity Shares 696869900 699976400 1.406E+09 1.41E+09 1.427E+09 1.392E+09
New Bonus Shares ###
Face value 2 2 2 2 2 2

CASH FLOW:
Report Date Jun-13 Jun-14 Jun-15 Mar-16 Mar-17 Mar-18
Cash from Operating Activity 4491.65 6456.78 5539.2 3822.62 8995 8328
Cash from Investing Activity -2361.47 -4842.28 -2087.57 -2208.43 -3890 -2236
Cash from Financing Activity -2086.15 -1307.97 -3140.34 -2237.09 -4517 -5714
Net Cash Flow 44.03 306.53 311.29 -622.9 588 378

PRICE: 194 375.04 459.88 407.05 437.38 484.3

DERIVED:
Adjusted Equity Shares in Cr 278.74 280.00 281.20 282.08 285.36 278.45
DO NOT MAKE ANY CHANGES TO THIS SHEET

Mar-19 Mar-20 Mar-21 Mar-22

60427 70676 75379 85651
1,615.00 1,536.00 1,698.00 1,473.00
-81.00 3.00 67.00
336 307 275
10862 12324 11873
29283 34928 38853 46130
3519 3050 1681
805 1215 954 17586
943 589 927 1067
2073 3420 4611 4326
174 505 511.00 319.00
12622 13980 15853 16951
2502 2923 4684 3428
10120 11057 11145 13499
1084 2715 2715 11946

Jun-21 Sep-21 Dec-21 Mar-22

20068 20655 22331 22597
15006 15633 16938 17545
255 240 255 317
1128 1078 1136 984
89.00 83.00 82.00 65.00
4100 4101 4430 4320
887 838 982 721
3205 3259 3442 3593
5062 5022 5393 5052

Mar-19 Mar-20 Mar-21 Mar-22

271 543 543 543
41095 50724 59370 61371
4,195.00 7,986.00 6,501.00 6,343.00
 12788 23566 19633 20776
58349 82819 86047 89033
22888 37490 37145 35077
235 400 312 129
2305 7066 6862 6351
32921 37863 41728 47476
58349 82819 86047 89033
11706 14131 13663 15476
91.00 91.00 94.00 161.00
7872 4976 8888 12636
1.356E+09 2713665096 2713665096

2 2 2 2

Mar-19 Mar-20 Mar-21 Mar-22

8971 13359 19618 16900
-3256 -12332 -5677 1477
-1471 -3168 -11180 -14508
4244 -2141 2761 3869

543.73 436.4 982.65 1163.75

271.26 271.37 271.37 271.37

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