FINANCIAL MODEL

AND
VALUATION
(DCF)

- Shreeyash Dhole
 CONTENT

Historical Financial Statements

Common Size Statement

Ratio Analysis

Forecasting

Beta - Regression

Beta Comps

Market Return

WACC

Intrinsic Growth

DCF Valuation & Sensitivity Analysis

 Historical Financial Statements - HINDUSTAN UNILEVER LTD
Years Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

# Income Statement
Sales 29,233.74 31,972.19 32,186.00 33,162.00 35,545.00 39,310.00 39,783.00 47,028.00 52,446.00 60,580.00
Sales Growth 9.37% 0.67% 3.03% 7.19% 10.59% 1.20% 18.21% 11.52% 15.51%

COGS 17,348.30 18,801.92 18,222.00 18,675.00 19,314.00 21,081.00 20,614.00 25,301.00 29,066.00 35,381.00
COGS % Sales 59.34% 58.81% 56.61% 56.31% 54.34% 53.63% 51.82% 53.80% 55.42% 58.40%

Gross Profit 11,885.44 13,170.27 13,964.00 14,487.00 16,231.00 18,229.00 19,169.00 21,727.00 23,380.00 25,199.00
GP Margins 40.66% 41.19% 43.39% 43.69% 45.66% 46.37% 48.18% 46.20% 44.58% 41.60%

Selling and General Expense 7,126.43 7,757.85 8,054.00 8,159.00 8,732.00 9,349.00 9,316.00 10,101.00 10,523.00 11,051.00
S&G Exp % Sales 24.38% 24.26% 25.02% 24.60% 24.57% 23.78% 23.42% 21.48% 20.06% 18.24%

EBITDA 4,759.01 5,412.42 5,910.00 6,328.00 7,499.00 8,880.00 9,853.00 11,626.00 12,857.00 14,148.00
EBITDA Margins 16.28% 16.93% 18.36% 19.08% 21.10% 22.59% 24.77% 24.72% 24.51% 23.35%

Depriciation 295.54 322.39 353.00 432.00 520.00 565.00 1,002.00 1,074.00 1,091.00 1,137.00
Depriciation % Sales 1.01% 1.01% 1.10% 1.30% 1.46% 1.44% 2.52% 2.28% 2.08% 1.88%

EBIT 4,463.47 5,090.03 5,557.00 5,896.00 6,979.00 8,315.00 8,851.00 10,552.00 11,766.00 13,011.00
EBIT Margins 15.27% 15.92% 17.27% 17.78% 19.63% 21.15% 22.25% 22.44% 22.43% 21.48%

Interest 40.68 17.70 17.00 35.00 26.00 33.00 118.00 117.00 106.00 114.00
Interest % Sales 0.14% 0.06% 0.05% 0.11% 0.07% 0.08% 0.30% 0.25% 0.20% 0.19%

EBT 4,422.79 5,072.33 5,540.00 5,861.00 6,953.00 8,282.00 8,733.00 10,435.00 11,660.00 12,897.00
EBT Margins 15.13% 15.86% 17.21% 17.67% 19.56% 21.07% 21.95% 22.19% 22.23% 21.29%

Tax 1,259.44 1,944.00 1,875.00 1,977.00 2,079.00 2,544.00 2,409.00 2,606.00 2,987.00 3,201.00
Effective Tax Rate 28.48% 38.33% 33.84% 33.73% 29.90% 30.72% 27.59% 24.97% 25.62% 24.82%

Net Profit 3,163.35 3,128.33 3,665.00 3,884.00 4,874.00 5,738.00 6,324.00 7,829.00 8,673.00 9,696.00
Net Margins 10.82% 9.78% 11.39% 11.71% 13.71% 14.60% 15.90% 16.65% 16.54% 16.01%

No of Equity shares 216.27 216.35 216.39 216.43 216.45 216.47 216.48 234.96 234.96 234.96

Earnings Per Share 14.63 14.46 16.94 17.95 22.52 26.51 29.21 33.32 36.91 41.27
EPS Growth -1.14% 17.13% 5.96% 25.48% 17.72% 10.21% 14.06% 10.78% 11.80%

Dividend Per Share 13.00 15.00 15.97 16.97 19.96 21.95 24.94 40.51 34.01 39.01
Dividend Payout Ratio 88.88% 103.74% 94.30% 94.54% 88.63% 82.82% 85.39% 121.57% 92.12% 94.52%

Retained Earnings 11.12% 0.00% 5.70% 5.46% 11.37% 17.18% 14.61% 0.00% 7.88% 5.48%

# Balance Sheet
Equity Share Capital 216.27 216.35 216.00 216.00 216.00 216.00 216.00 235.00 235.00 235.00
Reserves 3,321.02 3,811.13 6,357.00 6,528.00 7,065.00 7,651.00 8,013.00 47,439.00 48,826.00 50,069.00
Borrowings 45.58 43.04 177.00 277.00 - 99.00 - 1,009.00 1,043.00 1,219.00
Other Liabilities 10,171.02 10,359.01 8,043.00 8,685.00 10,581.00 10,663.00 11,924.00 20,057.00 20,402.00 21,554.00
Total Liabilities 13,753.89 14,429.53 14,793.00 15,706.00 17,862.00 18,629.00 20,153.00 68,740.00 70,506.00 73,077.00

Net Block 2,746.24 2,821.01 3,258.00 4,419.00 4,528.00 4,715.00 5,479.00 51,443.00 51,473.00 52,678.00
Capital Work in Progress 372.60 516.30 408.00 229.00 461.00 406.00 597.00 745.00 1,313.00 1,132.00
Investments 2,838.14 3,025.08 2,592.00 3,794.00 2,873.00 2,716.00 1,255.00 2,709.00 3,521.00 2,882.00
Other Assets 1,324.24 1,518.58 1,536.00 1,810.00 2,692.00 2,645.00 3,793.00 4,035.00 4,021.00 4,377.00
Total Non Current Assets 7,281.22 7,880.97 7,794.00 10,252.00 10,554.00 10,482.00 11,124.00 58,932.00 60,328.00 61,069.00

Receivables 1,016.81 1,010.28 1,264.00 1,085.00 1,310.00 1,816.00 1,149.00 1,758.00 2,236.00 3,079.00
Inventory 2,939.83 2,848.79 2,726.00 2,541.00 2,513.00 2,574.00 2,767.00 3,579.00 4,096.00 4,251.00
Cash & Bank 2,516.03 2,689.49 3,009.00 1,828.00 3,485.00 3,757.00 5,113.00 4,471.00 3,846.00 4,678.00
Total Current Assets 6,472.67 6,548.56 6,999.00 5,454.00 7,308.00 8,147.00 9,029.00 9,808.00 10,178.00 12,008.00

Total Assets 13,753.89 14,429.53 14,793.00 15,706.00 17,862.00 18,629.00 20,153.00 68,740.00 70,506.00 73,077.00

Check TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE

# CashFlow Statement

Cash from Operating Activity 3,818.18 3,291.91 4,171.00 5,185.00 6,059.00 5,800.00 7,623.00 9,163.00 9,048.00 9,991.00
Cash from Investing Activity (475.04) 137.97 (282.00) (1,173.00) (1,063.00) (438.00) 1,791.00 (1,228.00) (1,728.00) (1,484.00)
Cash from Financing Activity (2,960.29) (3,462.42) (3,864.00) (4,214.00) (4,975.00) (5,390.00) (6,819.00) (9,309.00) (8,015.00) (8,953.00)

Net Cash Flow 382.85 (32.54) 25.00 (202.00) 21.00 (28.00) 2,595.00 (1,374.00) (695.00) (446.00)
 Common Size Income statement - HINDUSTAN UNILEVER LTD

Particulars Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Raw Material Cost 43.25% 42.25% 40.96% 41.03% 40.04% 40.31% 39.46% 42.83% 43.61% 46.92%
Change in Inventory 0.59% -0.18% -0.26% -0.43% 0.20% -0.03% 0.27% 0.86% 0.04% 0.12%
Power and Fuel 1.24% 1.09% 0.96% 0.89% 0.83% 0.78% 0.75% 0.72% 0.61% 0.63%
Other Mfr. Exp 10.06% 9.90% 9.22% 8.71% 8.43% 7.74% 7.30% 6.10% 6.40% 6.26%
Employee Cost 5.38% 5.39% 5.22% 5.26% 5.23% 4.77% 4.57% 5.01% 4.85% 4.71%
Selling and admin 20.93% 21.17% 20.94% 20.17% 20.40% 19.83% 19.15% 16.79% 15.57% 14.50%
Other Expenses 3.45% 3.09% 4.08% 4.43% 4.16% 3.95% 4.26% 4.68% 4.50% 3.74%
Other Income 2.71% 3.90% 1.51% 1.83% 0.99% 0.82% 1.09% 0.36% 0.42% 0.74%
Depreciation 1.01% 1.01% 1.10% 1.30% 1.46% 1.44% 2.52% 2.28% 2.08% 1.88%
Interest 0.14% 0.06% 0.05% 0.11% 0.07% 0.08% 0.30% 0.25% 0.20% 0.19%
Profit before tax 17.84% 19.77% 18.72% 19.50% 20.55% 21.89% 23.04% 22.55% 22.65% 22.03%
Tax 4.31% 6.08% 5.83% 5.96% 5.85% 6.47% 6.06% 5.54% 5.70% 5.28%
Net profit 13.50% 13.65% 12.90% 13.50% 14.67% 15.40% 16.96% 17.00% 16.93% 16.71%
Dividend Amount 9.62% 10.15% 10.74% 11.07% 12.15% 12.09% 13.57% 20.24% 15.23% 15.13%

Common Size Balance Sheet - HINDUSTAN UNILEVER LTD

Particulars Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Total Liablities 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Equity Share Capital 1.57% 1.50% 1.46% 1.38% 1.21% 1.16% 1.07% 0.34% 0.33% 0.32%
Reserves 24.15% 26.41% 42.97% 41.56% 39.55% 41.07% 39.76% 69.01% 69.25% 68.52%
Borrowings 0.33% 0.30% 1.20% 1.76% 0.00% 0.53% 0.00% 1.47% 1.48% 1.67%
Other Liabilities 73.95% 71.79% 54.37% 55.30% 59.24% 57.24% 59.17% 29.18% 28.94% 29.49%

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Net Block 19.97% 19.55% 22.02% 28.14% 25.35% 25.31% 27.19% 74.84% 73.01% 72.09%
Capital Work in Progress 2.71% 3.58% 2.76% 1.46% 2.58% 2.18% 2.96% 1.08% 1.86% 1.55%
Investments 20.64% 20.96% 17.52% 24.16% 16.08% 14.58% 6.23% 3.94% 4.99% 3.94%
Other Assets 9.63% 10.52% 10.38% 11.52% 15.07% 14.20% 18.82% 5.87% 5.70% 5.99%
Receivables 7.39% 7.00% 8.54% 6.91% 7.33% 9.75% 5.70% 2.56% 3.17% 4.21%
Inventory 21.37% 19.74% 18.43% 16.18% 14.07% 13.82% 13.73% 5.21% 5.81% 5.82%
Cash & Bank 18.29% 18.64% 20.34% 11.64% 19.51% 20.17% 25.37% 6.50% 5.45% 6.40%
 Ratio Analysis - HINDUSTAN UNILEVER LTD
Years Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Trend Mean Median
SalesGrowth 9.37% 0.67% 3.03% 7.19% 10.59% 1.20% 18.21% 11.52% 15.51% 8.59% 9.37%
EBITDA Growth 13.73% 9.19% 7.07% 18.51% 18.42% 10.96% 17.99% 10.59% 10.04% 12.94% 10.96%
EBIT Growth 14.04% 9.17% 6.10% 18.37% 19.14% 6.45% 19.22% 11.50% 10.58% 12.73% 11.50%
Net Profit Growth -1.11% 17.16% 5.98% 25.49% 17.73% 10.21% 23.80% 10.78% 11.80% 13.54% 11.80%
Dividend Growth 15.38% 6.47% 6.23% 17.64% 9.99% 13.63% 62.39% -16.05% 14.71% 14.49% 13.63%

Gross Margin 40.66% 41.19% 43.39% 43.69% 45.66% 46.37% 48.18% 46.20% 44.58% 41.60% 44.15% 44.13%
EBITDA Margin 16.28% 16.93% 18.36% 19.08% 21.10% 22.59% 24.77% 24.72% 24.51% 23.35% 21.17% 21.84%
EBIT Margin 15.27% 15.92% 17.27% 17.78% 19.63% 21.15% 22.25% 22.44% 22.43% 21.48% 19.56% 20.39%
EBT Margin 15.13% 15.86% 17.21% 17.67% 19.56% 21.07% 21.95% 22.19% 22.23% 21.29% 19.42% 20.31%
Net Profit Margin 10.82% 9.78% 11.39% 11.71% 13.71% 14.60% 15.90% 16.65% 16.54% 16.01% 13.71% 14.15%

SalesExpenses%Sales 24.38% 24.26% 25.02% 24.60% 24.57% 23.78% 23.42% 21.48% 20.06% 18.24% 22.98% 24.02%
Depreciation%Sales 1.01% 1.01% 1.10% 1.30% 1.46% 1.44% 2.52% 2.28% 2.08% 1.88% 1.61% 1.45%
OperatingIncome%Sales 15.27% 15.92% 17.27% 17.78% 19.63% 21.15% 22.25% 22.44% 22.43% 21.48% 19.56% 20.39%

Return on Capital Employed 124.58% 125.05% 82.33% 83.98% 95.85% 104.38% 107.56% 21.67% 23.48% 25.25% 79.41% 89.91%
Retained Earnings% 11.12% 0.00% 5.70% 5.46% 11.37% 17.18% 14.61% 0.00% 7.88% 5.48% 7.88% 6.79%
Return on Equity% 89.43% 77.67% 55.76% 57.59% 66.94% 72.94% 76.85% 16.42% 17.68% 19.27% 55.06% 62.27%
Self Sustained Growth Rate 0.10x 0.00x 0.03x 0.03x 0.08x 0.13x 0.11x 0.00x 0.01x 0.01x 5.01% 3.16%
Interest Coverage Ratio 109.72x 287.57x 326.88x 168.46x 268.42x 251.97x 75.01x 90.19x 111.00x 114.13x 180.34x 141.29x

Debtor Turnover Ratio 28.75x 31.65x 25.46x 30.56x 27.13x 21.65x 34.62x 26.75x 23.46x 19.68x 26.97x 26.94x
Creditor Turnover Ratio 2.87x 3.09x 4.00x 3.82x 3.36x 3.69x 3.34x 2.34x 2.57x 2.81x 3.19x 3.21x
Inventory Turnover 9.94x 11.22x 11.81x 13.05x 14.14x 15.27x 14.38x 13.14x 12.80x 14.25x 13.00x 13.10x
Fixed Asset Turnover 10.65x 11.33x 9.88x 7.50x 7.85x 8.34x 7.26x 0.91x 1.02x 1.15x 6.59x 7.68x
Capital Turnover Ratio 8.26x 7.94x 4.90x 4.92x 4.88x 5.00x 4.83x 0.99x 1.07x 1.20x 4.40x 4.89x

Debtor Days 12.70 11.53 14.33 11.94 13.45 16.86 10.54 13.64 15.56 18.55 13.91 13.55x
Payable Days 126.99 118.26 91.21 95.59 108.65 99.01 109.40 155.67 141.99 129.86 117.66 113.83x
Inventory Days 36.71 32.52 30.91 27.97 25.81 23.90 25.39 27.78 28.51 25.61 28.51 27.87x
Cash Conversion Cycle (in days) -77.59 -74.20 -45.96 -55.68 -69.40 -58.25 -73.47 -114.25 -97.92 -85.70 -75.24 -73.84x

CFO/Sales 13.06% 10.30% 12.96% 15.64% 17.05% 14.75% 19.16% 19.48% 17.25% 16.49% 15.61% 16.06%
CFO/Total Assets 27.76% 22.81% 28.20% 33.01% 33.92% 31.13% 37.83% 13.33% 12.83% 13.67% 25.45% 27.98%
CFO/Total Debt 8377% 7648% 2356% 1872% 0% 5859% 0% 908% 867% 820% 2870.75% 1389.98%
 Sales Forecasting - HINDUSTAN UNILEVER LTD EBITDA Forecasting - HINDUSTAN UNILEVER LTD EPS Forecasting - HINDUSTAN UNILEVER LTD
Year Weight Year Sales Sales Growth Year Weight Year EBITDA EBITDA Growth Year Weight Year EPS EPS Growth
1 2014A 29,233.74 1 2014A 4,759.01 1 2014A 14.63
2 2015A 31,972.19 9.37% 2 2015A 5,412.42 13.73% 2 2015A 14.46 -1.14%
3 2016A 32,186.00 0.67% 3 2016A 5,910.00 9.19% 3 2016A 16.94 17.13%
4 2017A 33,162.00 3.03% 4 2017A 6,328.00 7.07% 4 2017A 17.95 5.96%
5 2018A 35,545.00 7.19% 5 2018A 7,499.00 18.51% 5 2018A 22.52 25.48%
6 2019A 39,310.00 10.59% 6 2019A 8,880.00 18.42% 6 2019A 26.51 17.72%
7 2020A 39,783.00 1.20% 7 2020A 9,853.00 10.96% 7 2020A 29.21 10.21%
8 2021A 47,028.00 18.21% 8 2021A 11,626.00 17.99% 8 2021A 33.32 14.06%
9 2022A 52,446.00 11.52% 9 2022A 12,857.00 10.59% 9 2022A 36.91 10.78%
10 2023A 60,580.00 15.51% 10 2023A 14,148.00 10.04% 10 2023A 41.27 11.80%
11 2024E 57,566.96 -4.97% 11 2024E 14,632.21 3.42% 11 2024E 42.59 3.21%
12 2025E 60,738.30 5.51% 12 2025E 15,705.84 7.34% 12 2025E 45.72 7.35%
13 2026E 63,909.64 5.22% 13 2026E 16,779.47 6.84% 13 2026E 48.85 6.85%
14 2027E 67,080.98 4.96% 14 2027E 17,853.10 6.40% 14 2027E 51.99 6.41%
15 2028E 70,252.32 4.73% 15 2028E 18,926.73 6.01% 15 2028E 55.12 6.02%

Sales EPS
EBITDA
80,000.00 20,000.00 60.00
70,000.00 18,000.00
16,000.00 50.00
60,000.00
14,000.00 40.00
50,000.00
12,000.00
40,000.00 10,000.00 30.00
30,000.00 8,000.00
20.00
6,000.00
20,000.00
4,000.00 10.00
10,000.00 2,000.00
- - -

2014A
2015A
2016A
2017A
2018A
2019A
2020A
2021A
2022A
2023A
2024A
2025A
2026A
2027A
2028A
2014A
2015A
2016A
2017A
2018A
2019A
2020A
2021A
2022A
2023A
2024A
2025A
2026A
2027A
2028A

2014A
2015A
2016A
2017A
2018A
2019A
2020A
2021A
2022A
2023A
2024A
2025A
2026A
2027A
2028A
 Regression Beta - 5 Years Monthly

Monthly Returns - HINDUSTAN UNILEVER LTD Monthly Returns - Nifty 50 Beta Calculation

Date Closing Price Returns Date Closing Price Returns Beta Drifting
01/04/2019 1,727.08 01/04/2019 11,748.15 Levered Raw Beta 0.18
01/05/2019 1,757.80 1.78% 01/05/2019 11,922.80 1.49% Raw Beta Weight 75%
01/06/2019 1,759.92 0.12% 01/06/2019 11,788.85 (1.12%)
01/07/2019 1,699.51 (3.43%) 01/07/2019 11,118.00 (5.69%) Market Beta 1
01/08/2019 1,851.29 8.93% 01/08/2019 11,023.25 (0.85%) Market Beta Weight 25%
01/09/2019 1,952.08 5.44% 01/09/2019 11,474.45 4.09%
01/10/2019 2,143.40 9.80% 01/10/2019 11,877.45 3.51% Adjusted Beta 0.39
01/11/2019 2,004.90 (6.46%) 01/11/2019 12,056.05 1.50%
01/12/2019 1,893.78 (5.54%) 01/12/2019 12,168.45 0.93%
01/01/2020 2,002.98 5.77% 01/01/2020 11,962.10 (1.70%) SUMMARY OUTPUT
01/02/2020 2,141.58 6.92% 01/02/2020 11,201.75 (6.36%)
01/03/2020 2,262.94 5.67% 01/03/2020 8,597.75 (23.25%) Regression Statistics
01/04/2020 2,162.06 (4.46%) 01/04/2020 9,859.90 14.68% Multiple R 0.15612246
01/05/2020 2,025.38 (6.32%) 01/05/2020 9,580.30 (2.84%) R Square 0.02437422
01/06/2020 2,147.34 6.02% 01/06/2020 10,302.10 7.53% Adjusted R Square 0.00725798
01/07/2020 2,178.99 1.47% 01/07/2020 11,073.45 7.49% Standard Error 0.06224463
01/08/2020 2,084.12 (4.35%) 01/08/2020 11,387.50 2.84% Observations 59
01/09/2020 2,036.66 (2.28%) 01/09/2020 11,247.55 (1.23%)
01/10/2020 2,040.55 0.19% 01/10/2020 11,642.40 3.51% ANOVA
01/11/2020 2,104.45 3.13% 01/11/2020 12,968.95 11.39% df SS MS F Significance F
01/12/2020 2,356.88 11.99% 01/12/2020 13,981.75 7.81% Regression 1 0.00551729 0.00551729 1.42404048 0.23768286
01/01/2021 2,228.72 (5.44%) 01/01/2021 13,634.60 (2.48%) Residual 57 0.22084049 0.00387439
01/02/2021 2,099.38 (5.80%) 01/02/2021 14,529.15 6.56% Total 58 0.22635779
01/03/2021 2,393.56 14.01% 01/03/2021 14,690.70 1.11%
01/04/2021 2,317.79 (3.17%) 01/04/2021 14,631.10 (0.41%) Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
01/05/2021 2,305.48 (0.53%) 01/05/2021 15,582.80 6.50% Intercept 0.00476307 0.00831361 0.57292413 0.56894938 -0.0118846 0.02141077 -0.0118846 0.02141077
01/06/2021 2,431.76 5.48% 01/06/2021 15,721.50 0.89% X Variable 1 0.18006865 0.15089572 1.19333167 0.23768286 -0.1220948 0.48223212 -0.1220948 0.48223212
01/07/2021 2,298.29 (5.49%) 01/07/2021 15,763.05 0.26%
01/08/2021 2,681.53 16.67% 01/08/2021 17,132.20 8.69%
01/09/2021 2,659.07 (0.84%) 01/09/2021 17,618.15 2.84%
01/10/2021 2,357.27 (11.35%) 01/10/2021 17,671.65 0.30%
01/11/2021 2,282.93 (3.15%) 01/11/2021 16,983.20 (3.90%)
01/12/2021 2,323.59 1.78% 01/12/2021 17,354.05 2.18%
01/01/2022 2,239.45 (3.62%) 01/01/2022 17,339.85 (0.08%)
01/02/2022 2,136.11 (4.61%) 01/02/2022 16,793.90 (3.15%)
01/03/2022 2,017.46 (5.55%) 01/03/2022 17,464.75 3.99%
01/04/2022 2,202.82 9.19% 01/04/2022 17,102.55 (2.07%)
01/05/2022 2,313.65 5.03% 01/05/2022 16,584.55 (3.03%)
01/06/2022 2,196.37 (5.07%) 01/06/2022 15,780.25 (4.85%)
01/07/2022 2,596.45 18.22% 01/07/2022 17,158.25 8.73%
01/08/2022 2,618.26 0.84% 01/08/2022 17,759.30 3.50%
01/09/2022 2,655.53 1.42% 01/09/2022 17,094.35 (3.74%)
01/10/2022 2,509.01 (5.52%) 01/10/2022 18,012.20 5.37%
01/11/2022 2,639.09 5.18% 01/11/2022 18,758.35 4.14%
01/12/2022 2,520.53 (4.49%) 01/12/2022 18,105.30 (3.48%)
01/01/2023 2,538.11 0.70% 01/01/2023 17,662.15 (2.45%)
01/02/2023 2,419.99 (4.65%) 01/02/2023 17,303.95 (2.03%)
01/03/2023 2,519.55 4.11% 01/03/2023 17,359.75 0.32%
01/04/2023 2,416.79 (4.08%) 01/04/2023 18,065.00 4.06%
01/05/2023 2,619.98 8.41% 01/05/2023 18,534.40 2.60%
01/06/2023 2,637.36 0.66% 01/06/2023 19,189.05 3.53%
01/07/2023 2,566.18 (2.70%) 01/07/2023 19,753.80 2.94%
01/08/2023 2,485.97 (3.13%) 01/08/2023 19,253.80 (2.53%)
01/09/2023 2,447.90 (1.53%) 01/09/2023 19,638.30 2.00%
01/10/2023 2,465.92 0.74% 01/10/2023 19,079.60 (2.84%)
01/11/2023 2,528.16 2.52% 01/11/2023 20,133.15 5.52%
01/12/2023 2,663.35 5.35% 01/12/2023 21,731.40 7.94%
01/01/2024 2,480.40 (6.87%) 01/01/2024 21,725.70 (0.03%)
01/02/2024 2,411.05 (2.80%) 01/02/2024 21,982.80 1.18%
01/03/2024 2,335.20 (3.15%) 01/03/2024 22,146.65 0.75%
 Beta Comps
Monthly Returns
All figures in INR unless stated otherwise.
Date ColPal P&G Gillette Nifty 50
Sr No Name Beta 01/04/2019
1 Hind. Unilever 0.18 01/05/2019 (4.08%) 7.64% (1.33%) 1.49%
2 Colgate-Palmoliv 0.51 01/06/2019 (2.14%) (2.44%) 0.50% (1.12%)
3 P & G Hygiene 0.38 01/07/2019 6.23% 1.75% (4.29%) (5.69%)
4 Gillette India 0.36 01/08/2019 7.13% (6.36%) 2.00% (0.85%)
01/09/2019 18.00% 18.77% (2.74%) 4.09%
*Data Source : Screener.in & Yahoo Finance 01/10/2019 3.01% 0.96% 14.01% 3.51%
01/11/2019 (4.84%) (6.88%) (15.20%) 1.50%
01/12/2019 0.01% 0.85% (3.84%) 0.93%
01/01/2020 (9.18%) (3.98%) (5.01%) (1.70%)
01/02/2020 (3.25%) 1.32% (7.21%) (6.36%)
01/03/2020 (2.54%) (7.79%) (5.63%) (23.25%)
01/04/2020 16.48% 2.79% (2.51%) 14.68%
01/05/2020 (4.63%) (6.28%) (9.58%) (2.84%)
01/06/2020 1.09% 2.61% 3.33% 7.53%
01/07/2020 2.36% 1.97% 0.70% 7.49%
01/08/2020 (4.22%) (3.53%) 8.20% 2.84%
01/09/2020 5.15% (0.40%) (1.64%) (1.23%)
01/10/2020 5.80% 2.52% (1.01%) 3.51%
01/11/2020 0.98% 3.17% 9.96% 11.39%
01/12/2020 3.41% 6.29% 0.46% 7.81%
01/01/2021 2.43% 2.11% (2.90%) (2.48%)
01/02/2021 (1.38%) 14.27% (1.60%) 6.56%
01/03/2021 (1.38%) (1.20%) 7.29% 1.11%
01/04/2021 (3.72%) 6.86% (6.90%) (0.41%)
01/05/2021 16.10% (3.11%) 1.81% 6.50%
01/06/2021 (2.01%) 2.48% 2.37% 0.89%
01/07/2021 1.10% (4.71%) 5.66% 0.26%
01/08/2021 (0.65%) 9.41% (2.91%) 8.69%
01/09/2021 (1.41%) 1.44% 1.36% 2.84%
01/10/2021 (7.60%) 1.09% (4.37%) 0.30%
01/11/2021 (7.02%) 5.71% (3.76%) (3.90%)
01/12/2021 4.56% 3.36% (2.48%) 2.18%
01/01/2022 (3.83%) (4.56%) 0.37% (0.08%)
01/02/2022 1.82% 4.99% (1.64%) (3.15%)
01/03/2022 6.33% (6.34%) (6.02%) 3.99%
01/04/2022 7.28% (2.72%) 8.57% (2.07%)
01/05/2022 (1.65%) (1.46%) (7.08%) (3.03%)
01/06/2022 (7.42%) (3.25%) 2.16% (4.85%)
01/07/2022 6.71% 8.38% 4.07% 8.73%
01/08/2022 5.57% (3.45%) 5.57% 3.50%
01/09/2022 (2.72%) (0.74%) (5.77%) (3.74%)
01/10/2022 0.14% 1.45% (0.61%) 5.37%
01/11/2022 1.15% 0.72% (0.29%) 4.14%
01/12/2022 (5.87%) 2.93% (1.16%) (3.48%)
01/01/2023 (5.42%) (2.50%) (2.84%) (2.45%)
01/02/2023 1.41% (2.83%) (4.62%) (2.03%)
01/03/2023 2.30% (2.56%) (6.81%) 0.32%
01/04/2023 5.82% 4.99% 2.24% 4.06%
01/05/2023 (0.23%) (3.39%) (0.67%) 2.60%
01/06/2023 7.45% 5.87% 15.78% 3.53%
01/07/2023 19.63% 10.05% 11.36% 2.94%
01/08/2023 (3.83%) 1.22% (1.36%) (2.53%)
01/09/2023 3.27% 12.51% 9.89% 2.00%
01/10/2023 5.40% (2.29%) (0.04%) (2.84%)
01/11/2023 3.90% (1.71%) 3.93% 5.52%
01/12/2023 16.40% 1.32% 2.65% 7.94%
01/01/2024 1.56% (0.70%) 1.59% (0.03%)
01/02/2024 (1.65%) (8.71%) (1.18%) 1.18%
01/03/2024 6.36% (0.38%) (1.53%) 0.75%
 Return on Market

Year Annual Returns

2000 (14.65%) Average Return 15.61%
2001 (16.18%) Dividend Yeild 1.23%
2002 3.25% Total Market Return 16.84%
2003 71.90%
2004 10.68%
2005 36.34%
2006 39.83%
2007 54.77%
2008 (51.79%)
2009 75.76%
2010 17.95%
2011 (24.62%)
2012 27.70%
2013 6.76%
2014 31.39%
2015 (4.06%)
2016 3.01%
2017 28.65%
2018 3.15%
2019 12.02%
2020 14.90%
2021 24.12%
2022 4.32%
2023 19.42%
 Weighted Average Cost of Capital

All figures in INR unless stated otherwise.

Peer Comps
Total Debt Total Equity Debt / Debt / Levered Unlevered
Name Country (Rs. Cr.) (Rs. Cr.) Tax Rate 1 Equity Capital Beta2 Beta3
Hind. Unilever India 1,272.00 546,914.36 30.00% 0.23% 0.23% 0.180 0.180
Colgate-Palmoliv India 68.67 74,212.64 30.00% 0.09% 0.09% 0.510 0.509
P & G Hygiene India 3.58 51,138.97 30.00% 0.01% 0.01% 0.378 0.378
Gillette India India 0.05 21,219.19 30.00% 0.00% 0.00% 0.359 0.359

Average 30.00% 0.08% 0.08% 0.357 0.357

Median 30.00% 0.05% 0.05% 0.369 0.369

Cost of Debt Cost of Equity

Pre-Tax Cost of Debt 8.96% Risk Free Rate 7.06%
Tax Rate 30.00% Equity Risk Premium 9.78%
Post-Tax Cost of Debt 6.27% Levered Beta4 0.369
Cost of Equity 10.67%

Capital Structure Levered Beta

Current Target Comps Median Unlevered Beta 0.369

Total Debt 1,272.00 0.23% 0.05% Target Debt/Equity 0.05%
Market Capitalization 546,914.36 99.77% 99.95% Tax Rate 30.00%
Total Capitalization 548,186.36 100.00% 100.00% Levered Beta 0.369

Debt/Equity 0.23% 0.05% Weighted Average Cost of Capital

Cost of Equity 10.67%

Weight of Equity 99.95%
1. Tax Rate considered as Marginal Tax Rate for the country
2. Levered Beta is based on 5 year monthly data Cost of Debt 6.27%
3. Unlevered Beta = Levered Beta/(1+(1-Tax Rate) x Debt/Equity) Weight of Debt 0.05%
3. Levered Beta = Unlevered Beta/(1+(1-Tax Rate) x Debt/Equity)
WACC 10.67%
 Calculation of ROIC Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Current Assets
Inventories 2,574.00 2,767.00 3,579.00 4,096.00 4,251.00
Trade receivables 1,816.00 1,149.00 1,758.00 2,236.00 3,079.00
Short term loans 26.00 19.00 112.00 170.00 188.00
Other asset items 2,619.00 3,774.00 3,923.00 3,851.00 4,189.00
Total Current Assets 7,035.00 7,709.00 9,372.00 10,353.00 11,707.00

Current Liablities
Trade Payables 7,206.00 7,535.00 8,802.00 9,068.00 9,574.00
Advance from Customers 43.00 158.00 96.00 119.00 98.00
Other liability items 3,396.00 4,214.00 11,139.00 11,189.00 11,664.00
Total Current Liablities 10,645.00 11,907.00 20,037.00 20,376.00 21,336.00

# Net Working Capital (3,610.00) (4,198.00) (10,665.00) (10,023.00) (9,629.00)

Non Current Assets

Land 86.00 59.00 477.00 477.00 476.00
Building 1,527.00 2,044.00 2,602.00 2,788.00 3,234.00
Plant Machinery 4,092.00 5,001.00 6,097.00 6,566.00 7,645.00
Equipments 95.00 139.00 175.00 181.00 185.00
Furniture n fittings 88.00 154.00 156.00 152.00 161.00
Railway sidings - - - - -
Vehicles - - - - -
Intangible Assets 511.00 511.00 45,262.00 45,262.00 45,692.00
Other fixed assets 60.00 71.00 155.00 152.00 171.00
Gross Block 6,459.00 7,979.00 54,924.00 55,578.00 57,564.00
Accumulated Depriciation 1,744.00 2,500.00 3,481.00 4,105.00 4,886.00
# Net Non Current Assets 4,715.00 5,479.00 51,443.00 51,473.00 52,678.00

# Invested Capital 1,105.00 1,281.00 40,778.00 41,450.00 43,049.00

EBIT 8,315.00 8,851.00 10,552.00 11,766.00 13,011.00

# ROIC 752.49% 690.94% 25.88% 28.39% 30.22%

Calculation of Reinvestment Rate Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Net Capex 754.00 810.00 4,066.00 1,053.00 1,011.00

Change in Working Capital (588.00) (6,467.00) 642.00 394.00

EBIT 8,315.00 8,851.00 10,552.00 11,766.00 13,011.00

Marginal Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00%
EBIT(1-T) 5820.5 6195.7 7386.4 8236.2 9107.7

Reinvestment 222.00 (2,401.00) 1,695.00 1,405.00

Reinvestment Rate 3.58% (32.51%) 20.58% 15.43%

4 Year Average 1.77%

4 Year Median 9.50%
Calculation of Growth Rate Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Reinvestment Rate 3.58% (32.51%) 20.58% 15.43%

ROIC 690.94% 25.88% 28.39% 30.22%
Intrinsic Growth 24.76% (8.41%) 5.84% 4.66%

4 Year Average 6.71%

4 Year Median 5.25%
Calculation of PV of FCFF Mar-23A Mar-24F Mar-25F Mar-26F Mar-27F Mar-28F

EBIT 13,011.00 13,694.36 14,413.60 15,170.62 15,967.40 16,806.03

Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
EBIT(1-t) 9,107.70 9,586.05 10,089.52 10,619.44 11,177.18 11,764.22
Less: Reinvestment Rate 9.50% 9.50% 9.50% 9.50% 9.50% 9.50%
Free Cashflow to Firm (FCFF) 8,242.03 8,674.91 9,130.53 9,610.08 10,114.81 10,646.06
Mid Year Convention 0.5 1.5 2.5 3.5 4.5
Discounting Factor 0.97 0.93 0.88 0.84 0.79
PV of FCFF 8,455.70 8,455.70 8,455.70 8,455.70 8,455.70

Expected Growth 5.25%

Terminal Growth1 7.60%
WACC 10.67%

Calculation of Terminal Value Sensitivity Analysis

WACC
FCFF (n+1) 11,205.20 ########## 9.00% 10.67% 11.00% 12.00%
WACC 10.67% Terminal 5.00% 264,773.65 199,352.38 190,608.60 169,418.59
Terminal Growth Rate 7.60% Growth 6.00% 338,938.70 233,015.88 220,274.62 190,608.60
Terminal Value 365,471.33 Rate 7.60% 677,978.92 332,552.67 304,037.50 244,546.82
8.00% 932,259.09 376,104.68 338,938.70 264,773.65

Calculation of Equity Value Per Share

PV of FCFF 42,278.51
PV of Terminal Value 290,278.07
Enterprise Value 332,556.57

Add: Cash 4,678.00

Less: Debt 1,219.00
Value of Equity 336,015.57
No of Shares 234.85 *Disclaimer: This report is meant for educational purpose only.
Equity Value Per Share 1,430.75

Share Price 2389.85

Discount / Premium 1.67x