Return On Markets

Year Annual
2000 -15% Average Market Return 16%
2001 -16%
2002 3%
2003 72%
2004 11%
2005 36%
2006 40%
2007 55%
2008 -52%
2009 76%
2010 18%
2011 -25%
2012 28%
2013 7%
2014 31%
2015 -4%
2016 3%
2017 29%
2018 3%
2019 12%
2020 15%
2021 24%
2022 4%
2023 19%
 Calculation of ROIC 2018 2019 2020 2021 2022
Net Working Capital 8,150.0 8,040.0 10,720.0 16,080.0 18,200.0
# Net Non Current Assets 15,840.0 19,160.0 20,430.0 21,850.0 33,320.0

# Invested Capital 23,990.0 27,200.0 31,150.0 37,930.0 51,520.0

EBIT 8,128.1 9,319.1 10,227.5 11,728.8 12,605.9

ROIC 34% 34% 33% 31% 24%

Calculation of Reinvestment Rate 2018 2019 2020 2021 2022

Net Capex 2,910.0 4,310.0 1,850.0 7,600.0 7,440.0

Change In Working Capital (110.0) 2,680.0 5,360.0 2,120.0

EBIT 8,128.1 9,319.1 10,227.5 11,728.8 12,605.9

marginal Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00%
EBIT(1-T) 5,689.7 6,523.4 7,159.3 8,210.2 8,824.1

Reinvestment 4,200.0 4,530.0 12,960.0 9,560.0

Reinvestment Rate 64% 63% 158% 108%

4 Year Average
4 Year Median

Calculation of Growth Rate 2018 2019 2020 2021 2022

Reinvestment Rate 64% 63% 158% 108%

ROIC 34% 33% 31% 24%

Intrinsic Growth 22.06% 20.78% 48.81% 26.51%

4 Years Average 29.54%

4 Years Median 24.28%
2023

2023

98%
86%

2023
 Weighted Average Cost Of Capital

Cost of Debt Cost Of Equity

Pre -Tax Cost of Debt 8.40% Risk Free Rate
Tax Rate 30.00% Market Risk
Post-Tax Cost of Debt 5.88% Risk Premium
Beta
Cost of Equity

Capital Structure Weigthed Average Cost of Capital

Current Cost of Equity 14.66%

Total Debt 11,541.7 1.70% Equity Weight 98.30%
Market Cap(Equity) 668452.4 98.30%
Total Capital 679994.1 100% Cost of Debt 5.88%
Debt Weight 1.70%
Debt/Equity 1.73%
WACC 14.51%
`
 7.06%
16.00%
8.94%
0.85
14.66%
Calculation of PV of FCFF 2023A 2024F 2025F 2026F 2027F

EBIT 12605.90 15667.07 19471.60 24200.01 30076.65

Tax Rate 23.00% 23.00% 23.00% 23.00% 23.00%
EBIT(1-Tax) 9706.54 12063.64 14993.13 18634.01 23159.02
Dep 2,299.1 2545.10 2817.43 3118.89 3452.62
Change in wc 9,041.8 9511.97 10006.60 10526.94 11074.34
Capex 6,976.3 10331.90 15301.54 22661.59 33561.81
Free Cash Flow to Firm (FCFF) -4012.46 -5235.13 -7497.58 -11435.62 -18024.51
Discounting Factor 0.873 0.873 0.873 0.873
PV of FCFF -4571.763968 -6547.53077 -9986.5706 -15740.5567

Expected Growth 24.28%

Terminal Growth 5.90%
WACC 14.51%

Calculation of PV of Terminal Value

FCFF (n+1) -22401.51

WACC 14.51%
Terminal Growth Rate 5.90%
Terminal Value -154386.88

Calculation of Equity Value Par Share

PV of FCFF -36846.42
PV of Terminal Value -134823.94
Value of Operating Asset -171670.36

Add: Cash 2446.9

Less: Debt 768.0
Value of Equity -169991.46
No of Shares 116.58
Equity Value Par Share -1458

Share Price 558

Discount/ Premium -0.38x
Calculation of PV of FCFE 2023A 2024F 2025F 2026F

EBIT 12605.90 15667.07 19471.60 24200.01

Less: Interest Expense 378.2 470.0 584.1 726.0
EBT 12,227.7 15,197.1 18,887.5 23,474.0
Less: Taxes 2812.4 3495.3 4344.1 5399.0
Net Income 9,415.3 11,701.7 14,543.3 18,075.0
Add: Depreciation and Amortization 2,299.1 2864.68 3331.62 3874.68
Less: Change in Working Capital 2120.00 2607.60 3593.27 4951.53
Less: Capex 7,440.0 5847.84 7760.08 10297.63
Add: Net Debt 4,393.5 4,416.6 3,963.2 8,309.3
FCFE 6,547.95 10,527.57 10,484.80 15,009.80
Discounting Factor 0.872 0.872 0.872
PV of FCFE 9181.64 9144.34 13090.82

Expected Growth 24.28%

Terminal Growth 5.90%
Cost of Equity 14.66%

Calculation of PV of Terminal Value

FCFE (n+1) 18092.10

Cost of Equity 14.66%
Terminal Growth Rate 6.800%

Terminal Value 123419.70

Calculation of Equity Value Par Share

PV of FCFE 45973.90
PV of Terminal Value 107640.65
Value of Operating Asset 153614.56

Add: Cash 2450

Less: Debt 10,208.0
Value of Equity 145856.56
No of Shares 116.58

Equity Value Par Share 1251.13

Share Price 558

Discount/ Premium 0.45x
2027F

30076.65
902.3
29,174.4
6710.1 Taxes 23%
22,464.3
4506.25
6823.21
13664.96
10,208.7
16,691.04
0.872
14557.11
Value of Equity Per Share (2 Stage DDM) (Berger Paints)
Particulars 0 1 2
Dividend 1.50 1.83 2.33
Total Dividend Amount 174,000,000.00 212,662,800.00 270,662,800.00
Total Dividend Amount (Million) 174.00 212.66 270.66
TV of Dividends - - -
Total Dividends - 212,663,014.50 270,663,073.00
PV of Dividends - 212,663,014.50 205,879,312.25
Value of Equity 617,338,866.96
Value of Equity Per Share 532.19

Outstanding Shares 116000000

Share Price 558

Discount/ Premium 1.05x
 Cost of Equity
3 4 Rf 7.06%
2.58 2.67 (Rm-Rf) 8.94%
299,662,800.00 309,337,200.00
299.66 309.34
-0.11 - Beta 0.85
299,663,102.14 - Cost of Equity 14.66%
198,796,540.21 -
Growth rate 24.28
 Berger Paints Ltd
In Millions of INR except Per Share FY 2019 FY 2020 FY 2021
12 Months Ending 03/31/2019 03/31/2020 03/31/2021
Revenue 54570.50 56084.90 57166.60
EBIT 8128.10 9319.10 10227.50
Change in EBIT 1878.00 1191.00 908.40
30.05 14.65 9.75
Depreciation Expenses 1184.30 1220.20 1351.10
Change in depreciation 97.80 35.90 130.90
rate of change 9.00 3.03 10.73
Working Capital 8150.00 8040.00 10720.00
change in working capital 0.00 -110.00 2680.00
rate of change 0.00 -0.41 8.78
Working Capital/Revenue 14.93 14.34 18.75
Capital Expenditures 2910.00 4310.00 1850.00
Change in capital expenditure 976.70 1400.00 -2460.00
Rate of change 50.52 48.11 -57.08
Net noncurrent assets 15840.00 19160.00 20430.00
Cash and cash equivalent 2380.00 2200.00 4400.00
EBIT 6971.90 7872.80 9108.30

Current Income Tax 2498.60 2264.70 2405.50

Net Income/Net Profit (Losses) 4358.50 6990.50 6807.80
EBT 9470.50 10137.50 11513.80
Tax rate 26.38 22.34 20.89
Interest Expense 348.70 326.80 332.20
Total Liability 136830.00 135880.00 175810.00
 FY 2022 FY 2023
03/31/2022 03/31/2023
75200.70 92903.30
11728.80 12605.90
1501.30 877.10
14.68 7.48
1942.70 2299.10
591.60 356.40
43.79 18.35 10.73
16080.00 18200.00
5360.00 2120.00
17.10 5.17 5.17
21.38 19.59 17.80
7600.00 7440.00
5750.00 -160.00
310.81 -2.11 48.11
21850.00 33320.00
3130.00 2450.00
9876.80 10972.20

2588.10 2717.50
7498.60 8283.90
12464.90 13689.70
20.76 19.85
429.30 811.50
199080.00 225300.00