Name Register Number Class
Raghav Toshniwal 2223031 6 BBAH A
Submitted to Dr.Kingston Antonysamy
P&L Statement
Description/Year Mar-12 Mar-13 Mar-14 Mar-15
Other Income 373.77 400.52 401.26 315.50
Total Income 4,671.86 5,910.03 6,501.09 7,812.83
Expenses:
- Cost of Material Consumed 1,140.73 1,260.01 1,236.56 1,373.78
- Purchase of Stock in Trade 344.43 445.03 528.53 609.33
- Changes in Inventories -89.59 -51.68 -11.18 2.71
- Employee Benefit Cost 228.96 295.01 341.81 390.49
- Finance Cost 0.79 0.82 58.85 1.35
- Depreciation 26.00 39.80 43.30 48.70
- Other Expenses 1,508.38 1,836.16 2,144.34 2,728.61
Total Expenses 3,159.70 3,825.15 4,342.21 5,153.97
Profit Before Exceptional Items 1,512.15 2,084.91 2,158.84 2,657.90
Exceptional Income/Expenses - - -357.90 -266.90
Profit Before Tax 1,512.15 2,084.91 1,872.88 2,188.10
Current Income Tax 302.27 418.25 394.37 459.97
Deferred Tax 9.13 5.07 -10.76 1.53
Profit After Tax (PAT) 1,200.75 1,661.59 1,489.27 1,726.60
Year 2018 2019 2020 2021
Expected GDP 7.40% 7.80% 7.90% 8.10%
Description/Year Mar-12 Mar-13 Mar-14 Mar-15
Equity and Liabilities:
Equity
Share Capital (Face Value Rs.1 per share) 147.50 147.50 147.50 147.50
Reserves & Surplus 4,130.90 4,678.20 5,044.90 4,738.10
Total Shareholders’ Equity 4,278.40 4,825.70 5,192.40 4,885.60
Non-Current Liabilities
Deferred Income Taxes (Liabilities) 9.60 14.70 3.90 5.50
Debt - - - -
Current Liabilities
Provisions - - - -
Other Current Liabilities 181.40 216.60 191.00 273.80
Trade Payable And Other Payables 471.20 494.50 405.50 514.30
Total Liabilities 662.30 725.80 600.50 793.60
Total Equity and Liabilities 4,940.70 5,551.50 5,792.90 5,679.20
Assets:
Non-Current Assets
Gross Fixed Assets 875.00 1,302.20 2,782.20 2,788.70
Net Fixed Assets 819.30 1,207.90 2,358.50 1,846.80
CWIP - 13.00 7.00 7.40
Long-Term Loans And Other Debtors 8.50 12.90 6.90 6.70
Other Noncurrent Assets - - - -
Current Assets
Other Current Assets 29.00 114.50 55.80 85.70
Accounts Receivable - Trade 51.40 99.70 83.70 132.60
Inventories 619.40 358.50 394.50 392.70
Short-Term Loans 12.20 20.80 26.00 28.80
Cash and equivalents 274.70 1,891.80 1,292.00 1,341.80
Current Investments 3,126.10 1,832.40 1,568.40 1,836.60
Total Assets 4,940.70 5,551.50 5,792.90 5,679.20
Mar-16 Mar-17
287.04 393.95
8,284.19 8,362.92
2,453.47 2,078.26
589.50 497.68
-63.26 115.11
475.40 613.89
2.26 10.33
49.00 53.20
1,804.79 2,028.15
5,310.16 5,396.62
2,973.08 2,966.32
-236.10 -332.50
2,503.28 2,782.49
536.94 599.49
1.56 0.58
1,964.78 2,182.42
2022 2023
8.15% 8.20%
Mar-16 Mar-17
147.50 147.50
4,663.10 4,794.40
4,810.60 4,941.90
7.50 7.70
100.00 150.00
- 2.40
309.00 390.90
435.10 402.50
851.70 953.50
5,662.20 5,895.30
1,254.50 1,708.40
1,393.10 1,615.50
8.50 0.30
3.70 11.90
102.00 9.30
42.10 47.30
253.50 274.30
501.90 424.80
- -
606.70 126.40
2,750.60 3,385.40
5,662.20 5,895.30
Valuation of Bajaj Corp Using Dis
Year / (Rs mm) 1 2
FY18E FY19E
Revenue 8,765.9 9,642.5
Total Expenses 5,861.0 6,428.0
EBITDA 2,904.8 3,214.5
Depreciation and Amortisation 58.5 64.3
EBIT 2,846.3 3,150.1
Tax 667.7 739.8
NOPAT = EBIT× (1-t) 2,233.1 2,471.4
Add: Dep 58.5 64.3
Less: Capex 388.0 419.0
Add/ Less: (Increase)/decrease in Net Working Capital -30.0 -70.6
FCFF 2,649.6 2,884.2
PV – Factor 0.90 0.81
PV – Explicit period 2,382.9 2,332.9
Terminal Value 84,735.5
Present value for explicit period 11,271.1
Present value of terminal period 73,464.4
Enterprise value
Less: Debt 150.0
Add: Cash & Cash equivalents and Current investments 3,511.8
Equity Value as at March 31, 2017 56,824.4
Number of equity shares (mn) 147.5
Equity value per share (₹) as at March 31, 2017 385.25
Market Price per share as on August 28, 2017 (₹) 385.25
Market Price per share as on January 9, 2018 (₹) 499.75
of Bajaj Corp Using Discounted Cash Flow Model
3 4 5 Terminal Value Assumptions
FY20E FY21E FY22E Terminal Year Revenue growth (%)
10,606.7 11,455.2 12,371.7 EBITDA margin (%)
7,051.2 7,736.3 8,489.5 Working capital as a % of sales
3,555.5 3,718.9 3,882.2 Perpetuity CAPEX (Rs mn)
70.8 77.9 85.6 Tax (%)
3,484.7 3,641.1 3,796.5 COC
819.1 860.8 903.2 2H years
2,733.9 2,856.6 2,978.6
70.8 77.9 85.6 Terminal value of perpetuity
452.5 488.7 527.8 Terminal value if it were not a perpetuity
-86.9 -84.6 -83.3 Terminal value of transition period
3,170.4 3,338.6 3,508.8 Total terminal value
0.73 0.65 0.59 0.59
2,306.3 2,184.3 2,064.6
Sensitivity Analysis
- 7.0% 7.5% 8.0% 8.15%
8.15% 10.0% 125,146.17 150,877.16 189,473.64 205,120.87
31.4% 10.5% 107,268.15 125,730.97 151,578.91 161,478.13
0.67% 11.0% 93,859.63 107,769.40 126,315.76 133,148.63
- 11.19% 89,616.28 102,236.90 118,814.57 124,851.45
34.6% 11.5% 83,430.78 94,298.22 108,270.65 113,275.70
11.19% 12.0% 75,087.70 83,820.64 94,736.82 98,564.57
- 12.5% 68,261.55 75,438.58 84,210.51 87,235.31
124,851.45
33,913.67
0.00
124,851.45
Analysis
8.5% 9.0% 9.5% Growth
253,801.11 382,456.06 768,420.88
190,350.84 254,970.70 384,210.44
152,280.67 191,228.03 256,140.29
141,556.32 174,685.26 227,424.09
126,900.56 152,982.42 192,105.22
108,771.91 127,485.35 153,684.18
95,175.42 109,273.16 128,070.15
Revenue Forecast – Bajaj Corp (in Rs mn)
FY12 FY13 FY14 FY15
Total Revenue 4,298.09 5,509.51 6,099.83 7,497.33
- Revenue growth (%) 28.2% 10.7% 22.9%
ADHO 95% 95% 95% 93%
- Revenue - ADHO 4,083.19 5,234.03 5,794.84 6,972.52
Revenue - ADHO growth(%) 28.2% 10.7% 20.3%
Rest
- Revenue - Rest 214.90 275.48 304.99 524.81
Revenue - Rest growth(%) 28.2% 10.7% 72.1%
Revenue share ADHO 95.0% 95.0% 95.0% 93.0%
Tax Forecast - Bajaj Corp
FY12 FY13 FY14 FY15
Profit Before Tax (Rs. Mn.) 1512.149 2084.91 1872.875 2188.097
Current Income Tax 302.266 418.254 394.374 459.972
Deferred Tax 9.131 5.071 -10.76 1.534
Total Tax 311.397 423.325 383.614 461.506
Effective Tax Rate 19.99% 20.06% 21.06% 21.02%
Expenses Forecast – Bajaj Corp (in Rs mn)
Expense Forecast FY12 FY13 FY14 FY15
Total expenses 3133.42 3785.01 4240.50 5105.36
EBITDA 1164.67 1724.50 1859.33 2391.98
EBITDA Margin 27.1% 31.3% 30.5% 31.9%
Depreciation Expense
Depreciation 26.01 39.76 43.34 48.65
Depreciation expense as a % of Revenue 0.6% 0.7% 0.7% 0.6%
t – Bajaj Corp (in Rs mn)
FY16 FY17 FY18E FY19E FY20E FY21E FY22E
7,997.15 7,968.97 8,765.87 9,642.46 10,606.70 11,455.24 12,371.66
6.7% -0.4% 10.0% 10.0% 10.0% 8.0% 8.0%
93% 93%
7,437.35 7,411.14 8,239.92 9,047.84 9,932.00 10,700.57 11,565.11
6.7% -0.4% 11.2% 9.8% 9.8% 7.7% 8.1%
559.80 557.83 525.95 594.62 674.70 754.67 806.54
6.7% -0.4% -5.7% 13.1% 13.5% 11.9% 6.9%
93.0% 93.0% 94.0% 93.8% 93.6% 93.4% 93.5%
cast - Bajaj Corp
FY16 FY17 FY18E FY19E FY20E FY21E FY22E
2503.282 2782.489 3098.949 3433.516 3801.95 3995.5323 4191.97
536.942 599.487 667.6683 739.7506 819.12977 860.83707 903.15955
1.56 0.581 0.581 0.581 0.581 0.581 0.581
538.502 600.068 668.2493 740.3316 819.71077 861.41807 903.74055
21.45% 21.54% 21.54% 21.54% 21.54% 21.54% 21.54%
t – Bajaj Corp (in Rs mn)
FY16 FY17 FY18E FY19E FY20E FY21E FY22E
5260.27 5333.43 5861.04 6427.98 7051.21 7736.32 8489.48
2736.88 2635.55 2904.83 3214.47 3555.49 3718.92 3882.17
34.2% 33.1% 33.1% 33.3% 33.5% 32.5% 31.4%
48.95 53.18 58.49 64.34 70.78 77.86 85.64
0.6% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7%
WACC - Bajaj Corp
Cost of Equity
Rf (%) 0.065
Beta 0.7
Market Risk Premium (%) 0.07
Cost of Equity (%) 0.114
Cost of Debt
Cost of Debt (pre-tax) 0.065
Tax rate 0.346
Cost of Debt (post-tax) 0.04251
Weights of Equity and Debt
Debt 150
Equity 4941.9
Total 5091.9
Wd 0.0294586
We 0.9705414
WACC (%) 0.111894
