Safal Niveshak Stock Analysis Excel (Ver.

3
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. 3.0". 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 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.
7. This excel won't work for banking and financial services companies.

Note: All data is sourced from Screener.in

 Stock Analysis Excel

Basic Company Details

Parameters Details
Company TRUCTION EQUIPMENT LTD
Current Stock Price (Rs) 1,236
Face Value (Rs) 2.0
No. of Shares (Crore) 11.9
Market Capitalization (Rs Crore) 14,722 MID CAP
Latest P/E 40.26 Bad
Latest EPS 30.71
OVERHALL 6.00 0
Key Financials - Trend
Parameters Details POINTS
Sales Growth (9-Year CAGR) 19.2% moderate
Profit Before Tax Growth (9-Year CAGR) 55.7% Good
Net Profit Growth (8-Year CAGR) 54.2% Good
Average Debt/Equity (5-Years, x) 0.1 Good
Average Return on Equity (10-Years) 12.2% Bad
Average Return on Equity (5-Years) 17.3% moderate
Average Return on Equity (3-Years) 19.8% moderate
Average P/E (10-Years, x) 37.7 Bad
Average P/E (5-Years, x) 27.3 Bad
Average Return on capital (10-Years) 15.4% moderate
Average Return on capital (5-Years) 23.4% moderate
Average Return on capital (3-Years) 29.9% moderate
Average EPS (10- YEARS)% 67.6% Good
Average EPS (5- YEARS)% 45.7% Good
Intrinsic Value 707 OVERVALUED
Margin of safety 474 SELL
Discount
Ben price Formula (Low Range)
Graham -762 SELL
423 SELL
Ben Graham Formula (High Range) 775 SELL

Key Financials - Ratios

Parameters Details POINTS
Debt to equity 0.00 Good
PEG Ratio 3.22 Bad
Price to book value
Interest Coverage Ratio 15.92 Good
Current ratio
Current assets
Quick Ratio
Dividend Yield 1.93
Dividend payout 0.07
Cash from Operating Activity (CFO) #REF!
Net Cash Flow current year #REF!
FCF curret year #REF!
total FCF for years #REF!
total net profit for 10 years 1,240
Operating Profit Margin 14%

AVERAGE EPS 10YEARS 8.19

AVERAGE EPS 5YEARS 12.51

liquidity check
current ratio bigger is better
quick ratio greater than 1
cash ratio more than 1

solvency check
dept to inventory ratio lesser the ratio better
debt to network ratio decreasing trend better
total debt to network ratio lower the ration better

operating efficiency
Fixed Asset Turnover Ratio
Operating Cycle
Cash Conversion Cycle should be less

operating performance
Gross Margin
Operating Profit Margin
Net Profit Margin
Return on Asset (ROA)
Return on Equity (ROE)
Return on Capital Employed (RoCE)

FINANCIAL RISK CHECK

Debt Equity Ratio more than 2 is more risky
Interest Coverage Ratio least more than 1 is good

PRICE VALUATION CHECK

Price Earning Ratio (P/E) 15 above is overvalued
Price-Earning To Growth Ratio (PEG) below 1 is undervalued
Price To Book Value Ratio (P/B) above 1.5 overvalued
Dividend Yield
 Net profi t
400
5 366
350
10
328
10 300
10
0 250
5
5 200
0 173
0 150
5 105
100
5 80
10 50 52 56 52
10
5 9 14
10 -
5 42094 42460 42825 43190 43555 43921 44286 44651 45016 45382 Trailing
5

10
0

10
Current Ratio = Current Asset / Current Liability
Quick Ratio = (Current Assets – Inventory) / Current Liability
Cash Ratio = Cash & Cash equivalents / Current Liabilities

Current Liability / Total inventory

Current Liability / Networth
Total Debt / Networth

Net Sales / Average Fixed Asset

365 * (Avg. Inventory + Avg. Ac Receivables) / COGS
365 * (Avg. Inventory + Avg. Ac Receivables – Avg Ac Payables) / COGS

Gross Income / Net Sales

Operating Profit / Net Sales
Net Profit / Total Income
Net Profit / Total Asset
Net Profit / Total Equity
Total Assets – Current Liability

Total Debt / Equity

PBIT / Interest

Current Price / Earning Per Share

PE Ratio / EPS Growth Rate
Current Price / Book Value Per Share
Dividend Per Share / Current Price
5 1
10 2
10 3
10 4
0 5
5 6
5 7
0 8
0 9
5 11
5 12
10 13
10 14 50.6991062
10 15 34.309381
5 16
5 17

5 19

10
0
0
10
(Net Sales – COGS) / Net Sales
(Gross Income – Operating Expense) / Net Sales
[PBDIT – Depreciation – Interest – Taxes] / Total Income

PBIT / (Total Asset – Current Liability)

 Warning! Excel can be a wonderful tool to analyze
the past. But it can be a weapon of mass destruction
to predict the future! So be very careful of what you
are getting into. Here, garbage in will always equal
garbage out.

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!

LARGE SMALL MICRO

20000 5000 1000
 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.

 A B C D E F G H I J K L M N O P Q
1 Balance Sheet
2 ACTION CONSTRUCTION EQUIPMENT LTD
3 Rs Cr Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
4 Equity Share Capital 20 23 23 23 23 23 23 24 24 24
5 Reserves 272 259 311 359 414 420 501 730 895 1,206
6 Borrowings 138 154 114 78 53 82 55 31 7 4
7 Other Liabilities 180 183 229 356 396 429 477 497 674 934
8 Total 609 620 677 817 887 954 1,055 1,282 1,600 2,169
9
10 Net Block 283 315 346 337 341 412 429 452 487 580
11 Capital Work in Progress 7 2 7 5 8 19 13 24 24 44
12 Investments 14 17 18 35 45 28 31 179 349 594
13 Other Assets 305 286 305 439 493 494 582 627 739 951
14 Total 609 620 677 817 887 954 1,055 1,282 1,600 2,169
15
16 Working Capital 125 103 76 83 97 66 105 130 65 17
17 Debtors 81 81 104 170 144 147 225 189 169 164
18 Inventory 142 124 114 144 213 271 266 333 419 553
19 Cash & Bank** 4,735 3,367 3,190 3,393 2,605 3,546 4,618
20 ** 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
21
22 Debtor Days 49 47 51 57 39 47 67 42 29 21
23 Inventory Turnover 4 5 7 8 6 4 5 5 5 5
24 Fixed Asset Turnover 2.1 2.0 2.2 3.2 3.9 2.8 2.9 3.6 4.4 5.0
25 Debt/Equity 0.5 0.5 0.3 0.2 0.1 0.2 0.1 0.0 0.0 0.0
26 Return on Equity 2% 3% 4% 14% 13% 12% 15% 14% 19% 27%
27 Return on Capital Employed 2% 3% 5% 14% 13% 13% 14% 18% 26% 46%
 A B C D E F G H I J K L M N O
1 Profit & Loss Account / Income Statement
2 ACTION CONSTRUCTION EQUIPMENT LTD
3 Rs Cr Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Trailing
4 Sales 599 637 751 1,087 1,343 1,156 1,227 1,630 2,160 2,914 3,080
5 % Growth YOY 6% 18% 45% 24% -14% 6% 33% 33% 35%
6 Expenses 580 607 712 995 1,245 1,065 1,108 1,478 1,939 2,510 2,640
7 Material Cost (% of Sales) 71% 69% 71% 71% 76% 71% 72% 73% 73% 71% Check for wide fluctuations in key
8 Power and Fuel 1% 1% 1% 1% 0% 0% 0% 0% 0% 0% expense items. For manufacturing firms,
9 Other Mfr. Exp 7% 7% 5% 4% 4% 5% 4% 4% 4% 5% check their material costs etc. For
10 Employee Cost 8% 9% 8% 6% 6% 7% 6% 5% 5% 4% services firms, look at employee costs.
11 Selling and Admin Cost 5% 6% 8% 8% 7% 8% 7% 8% 7% 6%
12 Operating Profit 19 31 39 92 98 92 119 151 221 404 440
13 Operating Profit Margin 3% 5% 5% 8% 7% 8% 10% 9% 10% 14% 14%
14 Other Income 12 10 8 8 10 4 15 11 41 77 106
15 Other Income as % of Sales 2.0% 1.5% 1.0% 0.7% 0.7% 0.4% 1.2% 0.7% 1.9% 2.6% 3.4%
16 Depreciation 10 11 12 12 12 13 14 15 18 23 26
17 Interest 13 14 16 14 12 15 12 10 10 23 33
18 Interest Coverage(Times) 2 2 2 6 8 6 10 15 24 20 16
19 Profit before tax (PBT) 8 15 19 74 84 68 108 137 234 434 486
20 % Growth YOY 84% 29% 285% 14% -19% 59% 27% 70% 86%
21 PBT Margin 1% 2% 3% 7% 6% 6% 9% 8% 11% 15% 16%
22 Tax 3 6 5 22 28 16 28 32 61 106 121
23 Net profit 5 9 14 52 56 52 80 105 173 328 366 1,052 1,240
24 % Growth YOY 64% 62% 271% 8% -6% 52% 32% 65% 90%
25 Net Profit Margin 1% 1% 2% 5% 4% 5% 7% 6% 8% 11% 12% 5 YEARS 10YEARS
26 EPS 0.5 0.7 1.2 4.4 4.8 4.6 7.0 8.8 14.5 27.6 30.7 46.18 12.51 8.19
27 % Growth YOY 38% 62% 271% 8% -3% 52% 25% 65% 90% 68%
28 Price to earning 76.2 52.5 50.0 37.8 24.0 7.4 22.0 27.3 28.0 51.8 40.3
29 Price 41 39 60 168 115 34 154 241 407 1,427 1,236
30 Dividend Payout 29.8% 23.6% 23.0% 11.3% 10.5% 10.8% 7.1% 6.8% 6.9% 7.3%
31 Market Cap 401 454 701 1,967 1,344 389 1,752 2,864 4,846 16,991
32 Retained Earnings 4 7 11 46 50 47 74 98 161 304
33 Buffett's $1 Test 20.7
34
35
36 TRENDS: 10 YEARS 7 YEARS 5 YEARS 3 YEARS
37 Sales Growth 19.2% 21.4% 16.8% 33.4%
38 PBT Growth 55.7% 56.1% 38.8% 58.9%
39 PBT Margin 6.8% 8.8% 9.8% 11.4%
40 Price to Earning 37.7 28.3 27.3 35.7
41
42 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
43 10 years) growth numbers.
44
 Common Size P&L
Rs Cr Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16
Sales 100% 100% 100% 100% 100% 100% 100% 100% 100%
Raw Material Cost 71% 69% 71% 71% 76% 71% 72% 73% 73%
Change in Inventory -2% 0% 1% 0% 4% 3% 2% 1% 2%
Power and Fuel 1% 1% 1% 1% 0% 0% 0% 0% 0%
Other Mfr. Exp 7% 7% 5% 4% 4% 5% 4% 4% 4%
Employee Cost 8% 9% 8% 6% 6% 7% 6% 5% 5%
Selling and Admin Cost 5% 6% 8% 8% 7% 8% 7% 8% 7%
Other Expenses 3% 3% 3% 2% 2% 2% 3% 1% 2%
Operating Profit 6% 5% 4% 8% 0% 2% 5% 7% 6%
Other Income 2% 2% 1% 1% 1% 0% 1% 1% 2%
Depreciation 2% 2% 2% 1% 1% 1% 1% 1% 1%
Interest 2% 2% 2% 1% 1% 1% 1% 1% 0%
Profit Before Tax 1% 2% 3% 7% 6% 6% 9% 8% 11%
Tax 0% 1% 1% 2% 2% 1% 2% 2% 3%
Net Profit 1% 2% 2% 5% 4% 5% 7% 6% 8%
Dividend Amount 0% 0% 0% 1% 0% 0% 0% 0% 1%

Common Size Balance Sheet

Rs Cr Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16
Equity Share Capital 3% 4% 3% 3% 3% 2% 2% 2% 1%
Reserves 45% 42% 46% 44% 47% 44% 47% 57% 56%
Borrowings 23% 25% 17% 10% 6% 9% 5% 2% 0%
Other Liabilities 30% 30% 34% 44% 45% 45% 45% 39% 42%
Total Liabilities 100% 100% 100% 100% 100% 100% 100% 100% 100%
Net Block 46% 51% 51% 41% 38% 43% 41% 35% 30%
Capital Work in Progress 1% 0% 1% 1% 1% 2% 1% 2% 2%
Investments 2% 3% 3% 4% 5% 3% 3% 14% 22%
Other Assets 50% 46% 45% 54% 56% 52% 55% 49% 46%
Total Assets 100% 100% 100% 100% 100% 100% 100% 100% 100%
Receivables 13% 13% 15% 21% 16% 15% 21% 15% 11%
Inventory 23% 20% 17% 18% 24% 28% 25% 26% 26%
Cash & Bank 2% 2% 2% 1% 1% 1% 3% 1% 3%
Mar-17
100%
A common-size financial statement is displays line
71% items as a percentage of one selected or common
2% figure. Creating common-size financial statements
0% makes it easier to analyze a company over time and
5% compare it with its peers. Using common-size
4% financial statements helps investors spot trends that a
6% raw financial statement may not uncover.
2%
10%
3%
1%
1%
15%
4%
11%
1%

Mar-17
1%
56%
0%
43%
100%
27%
2%
27%
44%
100%
8%
26%
5%
 Cash Flow Statement
ACTION CONSTRUCTION EQUIPMENT LTD
Rs Cr Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Total
Cash from Operating Activity (CFO) 40 57 76 89 72 48 86 104 274 433 1,280
% Growth YoY 45% 33% 17% -19% -33% 79% 20% 165% 58%
Cash from Investing Activity -14 -25 -17 -35 -27 -20 -16 -201 -218 -368 -942
Cash from Financing Activity -26 -33 -57 -53 -44 -33 -40 71 -41 -39 -295
Net Cash Flow -1 -0 2 1 2 -5 30 -27 16 27 43
CFO/Sales 0 0 0 0 0 0 0 0 0 0
CFO/Net Profit 8 7 5 2 1 1 1 1 2 1
Capex** 315 212 364 565 607 937 1,156 1,638 1,238 824
FCF -275 -154 -288 -476 -535 -889 -1,070 -1,534 -964 -391 -6,576
Average FCF (3 Years) -963
FCF Growth YoY -44% 87% 65% 12% 66% 20% 43% -37% -59%
FCF/Sales -0 -0 -0 -0 -0 -1 -1 -1 -0 -0
FCF/Net Profit -41 -15 -19 -9 -10 -17 -13 -15 -6 -1

** 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
ACTION CONSTRUCTION EQUIPMENT LTD
Mar/15 Mar/16 Mar/17 Mar/18 Mar/19 Mar/20 Mar/21 Mar/22 Mar/23
Sales Growth 6.4% 17.8% 44.7% 23.6% -13.9% 6.1% 32.8% 32.5%
PBT Growth 84.4% 29.0% 285.0% 13.8% -19.2% 58.9% 27.0% 70.2%
Net Profit Growth 64.3% 62.2% 271.3% 7.7% -6.4% 52.1% 31.6% 64.8%
Dividend Growth 18.7% 49.8% 66.5% 0.0% -3.1% 0.0% 25.9% 66.6%
Operating Cash Flow Growth 45.1% 32.7% 17.3% -19.4% -33.4% 79.4% 20.3% 165.0%
Free Cash Flow Growth -44.1% 86.8% 65.2% 12.5% 66.2% 20.4% 43.4% -37.2%

Operating Margin 3.1% 4.8% 5.3% 8.4% 7.3% 7.9% 9.7% 9.3% 10.2%
PBT Margin 1.3% 2.3% 2.6% 6.8% 6.3% 5.9% 8.8% 8.4% 10.8%
Net Margin 0.9% 1.4% 1.9% 4.8% 4.2% 4.5% 6.5% 6.4% 8.0%

Debtor Days 49.3 46.7 50.5 57.1 39.2 46.5 66.8 42.3 28.6
Inventory Turnover 4.2 5.1 6.6 7.5 6.3 4.3 4.6 4.9 5.2
Fixed Asset Turnover 2.1 2.0 2.2 3.2 3.9 2.8 2.9 3.6 4.4
Debt/Equity 0.5 0.5 0.3 0.2 0.1 0.2 0.1 0.0 0.0
Debt/Assets 22.6% 24.9% 16.8% 9.6% 6.0% 8.6% 5.2% 2.4% 0.5%
Interest Coverage (Times) 1.6 2.1 2.2 6.5 8.3 5.6 9.8 15.4 23.7
Return on Equity 1.8% 3.1% 4.2% 13.6% 12.8% 11.9% 15.2% 13.9% 18.8%
Return on Capital Employed 1.6% 3.1% 5.2% 13.7% 13.2% 13.2% 14.4% 17.8% 25.7%
Free Cash Flow (Rs Cr) -275 -154 -288 -476 -535 -889 -1,070 -1,534 -964
Mar/24
34.9%
85.6%
89.7%
100.0%
58.0%
-59.5%

13.9%
14.9%
11.3%

20.6
5.3
5.0
0.0
0.2%
19.7
26.7%
46.1%
-391
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.
16% Profit Margin 50%
Capital Allo
Check for a rising trend
14%
12% 40% Numbers > 20% long te
company has zero/marg
10% 30% competitor
8%
6% 20%
4%
Check for a rising trend and/or 10%
2% consistency. Compare with a close
0% competitor 0%
5 6 7 8 9 0 1 2 3 4 5 6 7 8
n/1 n/1 n/1 n/1 n/1 n/2 n/2 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

3,500
Revenue 350% Revenue and Pr
Check for a rising trend. Check for a
3,000 300% Compare gr
tor.
2,500 250%

2,000 200%
150%
1,500
100%
1,000
50%
500
0%
- -50% /16 7 8 9
n n/1 n/1 n/1
/15 /16 /17 /18 /19 /20 /21 /22 /23 /24 Ja Ja Revenue
Ja a
JGrow
n n n n n n n n n n
Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Net Profit Gro

500 Profit Over Time Operating and

1,000 Check
Check for a rising trend. for positive num
500 and which are rising o
400 time.
-
300
-500 /15 /16 /17 /18
200 n n n n
-1,000Ja Ja Ja Ja Ja
100 -1,500
- -2,000
5 6 7 8 9 0 1 2 3 4
n/1 n/1 n/1 n/1 n/1 n/2 n/2 n/2 n/2 n/2
Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja

PBT Net Profit Operating Cash F

Data for Charts (Please don't touch any number below)
Margins
Mar/15 Mar/16 Mar/17 Mar/18 Mar/19 Mar/20 Mar/21 Mar/22 Mar/23
Operating Margin 3% 5% 5% 8% 7% 8% 10% 9% 10%
PBT Margin 1% 2% 3% 7% 6% 6% 9% 8% 11%
Net Margin 1% 1% 2% 5% 4% 5% 7% 6% 8%

Management Effectiveness
Mar/15 Mar/16 Mar/17 Mar/18 Mar/19 Mar/20 Mar/21 Mar/22 Mar/23
ROE 2% 3% 4% 14% 13% 12% 15% 14% 19%
ROCE 2% 3% 5% 14% 13% 13% 14% 18% 26%

Revenue & Profit Growth

Mar/16 Mar/17 Mar/18 Mar/19 Mar/20 Mar/21 Mar/22 Mar/23 Mar/24
Revenue Growth 6% 18% 45% 24% -14% 6% 33% 33% 35%
PBT Growth 84% 29% 285% 14% -19% 59% 27% 70% 86%
Net Profit Growth 64% 62% 271% 8% -6% 52% 32% 65% 90%

Revenue & Profit

Mar/15 Mar/16 Mar/17 Mar/18 Mar/19 Mar/20 Mar/21 Mar/22 Mar/23
Revenue 599 637 751 1,087 1,343 1,156 1,227 1,630 2,160
PBT 8 15 19 74 84 68 108 137 234
Net Profit 5 9 14 52 56 52 80 105 173

Cash Flows
Mar/15 Mar/16 Mar/17 Mar/18 Mar/19 Mar/20 Mar/21 Mar/22 Mar/23
Operating Cash Flow 40 57 76 89 72 48 86 104 274
Free Cash Flow -275 -154 -288 -476 -535 -889 -1,070 -1,534 -964
%
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

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

6 7 8 9 0 1 2 3 4
n/1 n/1 n/1 n/1 n/2 n/2 n/2 n/2 n/2
a Ja Revenue
Ja a
JGrowth Ja Ja PBT Ja Growth
Ja Ja
Net Profit Growth

Operating and Free

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

0 /15 /16 /17 /18 /19 /20 /21 /22 /23 /24
n n n n n n n n n n
0Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja
0
0

Operating Cash Flow Free Cash Flow

Mar/24
14%
15%
11%

Mar/24
27%
46%

Mar/24
2,914
434
328

Mar/24
433
-391
 Earnings Power Value (Bruce Greenwald)
Read the book - Value Investing: From Graham to Buffett and Beyond by Bruce Greenwald (EPV is explained
Explanation - Earnings power value (EPV) is a technique for valuing stocks by making an assumption about the sustainability o
capital but assuming no further growth. EPV formula = Adjusted Earnings / Cost of Capital

Company Name ACTION CONSTRUCTION EQUIPME

Latest Year Ended Mar-24

Calculation of Normalized Earnings

(Rs Crore) Mar/20 Mar/21 Mar/22 Mar/23 Mar/24
Sales 1,156 1,227 1,630 2,160 2,914
EBIT 83 120 147 244 457
Less - Adjustment 0 1 1 1 2
EBIT (Adjusted) 82 120 146 243 455
EBIT Margin'(Adjusted) 7% 10% 9% 11% 16%
Tax Rate 23% 26% 24% 26% 24%
Earnings After Tax (Adjusted) 63 88 112 180 344
Depreciation 13 14 15 18 23
Maintenance Capex (See Table Below) #REF! #REF! #REF! #REF! #REF!
Earnings After Tax (Normalized, A) #REF! #REF! #REF! #REF! #REF!
Reported Profit After Tax (B) 52 80 105 172 328

EPV Process (as per Greenwald's book, slightly modified) -

1. Start with operating earnings, i.e. EBIT. Adjust any one-time charges. I deduct 0.5% of reported EBIT as this adjustment
2. Apply a tax rate to the adjusted EBIT. I use the actual tax rate calculated from the Income Statement. After reducing this tax,
3. Add back Depreciation
4. Subtract Maintenance Capex
5. After these four steps, you arrive at Normalized Earnings
6. Divide this Normalized Earnings number by the Discount Rate to arrive at EPV. I use 12% discount rate/cost of capital.
7. Note that Greenwald's process as per his book is slightly more detailed than what I have used here

Calculation of Maintenance Capex

(Rs Crore) Mar/20 Mar/21 Mar/22 Mar/23 Mar/24
Fixed Assets (PPE) 412 429 452 487 580
Net Sales 1,156 1,227 1,630 2,160 2,914
PPE/Sales 0.36 0.35 0.28 0.23 0.20
Change in Sales -186 71 402 530 754
Total Capex #REF! #REF! #REF! #REF! #REF!
Growth Capex -52 20 113 149 212
Maintenance Capex #REF! #REF! #REF! #REF! #REF!

Calculating Maintenance Capex, as per Greenwald's book -

1. Calculate the Average Gross Property Plant and Equipment (PPE) / Sales ratio over 5-7 years
2. Calculate current year’s increase in sales
3. Multiply PPE/Sales ratio by increase in sales to arrive at Growth Capex
4. Maintenance Capex = Total Capex figure from the cash flow statement minus Growth Capex calculated above
(Bruce Greenwald)
nd by Bruce Greenwald (EPV is explained Page 93 onwards)
ng an assumption about the sustainability of current earnings and the cost of
mula = Adjusted Earnings / Cost of Capital

EPV with Different Cost of Capital

Discount Rate EPV Net Cash** Total EPV Per Share
10% #REF! 4,614 #REF! #REF!
12% #REF! 4,614 #REF! #REF!
15% #REF! 4,614 #REF! #REF!
Current Market Cap (Rs Crore) 14,722
EPV as % of Market Cap #REF!

** Change the "Cash & Bank" number in "Balance Sheet" sheet

(Row #19) so that the correct number automatically reflects here

% of reported EBIT as this adjustment

Income Statement. After reducing this tax, we arrive at Adjusted Earnings After Tax

use 12% discount rate/cost of capital.

I have used here

ver 5-7 years

wth Capex calculated above

 Dhandho Intrinsic Value Calculation
Read the book - The Dhandho Investor by Mohnish Pabrai

ACTION CONSTRUCTION EQUIPMENT LTD ACTION CONSTRUCT

Dhandho IV - Lower Range Dhandho IV - H
Year FCF (Rs Cr) PV of FCF (Rs Cr) Assumed FCF Growth Year
0 Excess Cash (Latest) 4,618 Year 1-3 15% 0
1 FY18 #REF! #REF! Year 4-6 10% 1
2 FY19 #REF! #REF! Year 7-10 5% 2
3 FY20 #REF! #REF! Discount Rate 12% 3
4 FY21 #REF! #REF! 4
5 FY22 #REF! #REF! Last 5-Years' CAGR 5
6 FY23 #REF! #REF! Sales 17% 6
7 FY24 #REF! #REF! PBT 39% 7
8 FY25 #REF! #REF! FCF #REF! 8
9 FY26 #REF! #REF! 9
10 FY27 #REF! #REF! 10
10 #REF! #REF! 10
Intrinsic Value #REF! Intrinsic V
Current Mkt. Cap. 14,722 Current Mkt. C
Premium/(Discount) to IV #REF! Premium/(Discount) t
intrinsic value share price #REF!
margin of safety #REF!
margin of safety % #REF!

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 is your assumption of FCF the business will earn in a normal year, without capex. Check the history of this business
assumption, and use your judgment wisely without twisting the model to fit your version of reality.
ue Calculation
tor by Mohnish Pabrai

ACTION CONSTRUCTION EQUIPMENT LTD

Dhandho IV - Higher Range
FCF (Rs Cr) PV of FCF (Rs Cr) Assumed FCF Growth
Excess Cash (Latest) 4,618 Year 1-3 20%
FY18 #REF! #REF! Year 4-6 15%
FY19 #REF! #REF! Year 7-10 10%
FY20 #REF! #REF! Discount Rate 12%
FY21 #REF! #REF!
FY22 #REF! #REF!
FY23 #REF! #REF!
FY24 #REF! #REF!
FY25 #REF! #REF!
FY26 #REF! #REF!
FY27 #REF! #REF!
#REF! #REF!
Intrinsic Value #REF!
Current Mkt. Cap. 14,722
Premium/(Discount) to IV #REF!

a normalized positive FCF as the starting number. This

heck the history of this business while arriving at your
el to fit your version of reality.
 Ben Graham Formula (Low Range) Ben Graham Formula (High Range
Company Name CTION EQUIPMENT LTD Company Name
Year Ended Mar/24 Year Ended

Avg 5-Yr Net Profit (Rs Crore) 147.7 Avg 5-Yr Net Profit (Rs Crore)
PE Ratio at 0% Growth 8.5 PE Ratio at 0% Growth
Long-Term Growth Rate 21.2 Long-Term Growth Rate

Ben Graham Value (Rs Crore) 7,519 Ben Graham Value (Rs Crore)
Current Market Cap (Rs Crore) 14,722 Current Market Cap (Rs Crore)
intrinsic value share price 631.40 intrinsic value share price
margin of safety 423.04 margin of safety
margin of safety % -813.26 margin of safety %
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)
CTION EQUIPMENT LTD
Mar/24

147.7
8.5
42.4

13,782
14,722
1,157.38
775.44
-460.86

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
ACTION CONSTRUCTION EQUIPMENT LTD

Initial Cash Flow (Rs Cr) #REF! #REF!

14,722
Years 1-5 6-10 #REF!
FCF Growth Rate 15% 12%
Discount Rate 12%
Terminal Growth Rate 2%

Net Debt Level (Rs Cr) (4,614)

Year FCF Growth Present Value

1 #REF! 15% #REF!
2 #REF! 15% #REF!
3 #REF! 15% #REF!
4 #REF! 15% #REF!
5 #REF! 15% #REF!
6 #REF! 12% #REF!
7 #REF! 12% #REF!
8 #REF! 12% #REF!
9 #REF! 12% #REF!
10 #REF! 12% #REF!

Final Calculations
Terminal Year #REF!
PV of Year 1-10 Cash Flows #REF!
Terminal Value #REF!
Total PV of Cash Flows #REF!
Current Market Cap (Rs Cr) 14,722

Note: See explanation of DCF here

Valuation
PMENT LTD

DCF Value (As calculated in cell B29)

Current Market Cap
DCF as % of Current Mkt Cap
 Expected Returns Model
ACTION CONSTRUCTION EQUIPMENT LTD
Particulars Mar/15 Mar/16 Mar/17 Mar/18 Mar/19 Mar/20 Mar/21
Net Profit (Rs Crore) 7 10 15 52 56 52 80
Net Profit Margin 1% 2% 2% 5% 4% 5% 7%
Return on Equity 2% 3% 4% 14% 13% 12% 15%

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) 1,019
Current P/E (x) 44.9
Exit P/E in the 10th year from now (x, Estimated) 20.0
Esti. Market Cap (10th year from now; Rs Cr) 20,384
Cost of Capital/Discount Rate 12%
Discounted Value (Rs Cr) 6,563
Current Market Cap (Rs Cr) 14,722

Note: See explanation of this model here

el
T LTD
Mar/22 Mar/23 Mar/24 CAGR (9-Yr) CAGR (5-Yr)
105 172 328 54% 42%
6% 8% 11%
14% 19% 27%
 Intrinsic Value Range
ACTION CONSTRUCTION EQUIPMENT LTD
Lower Higher Remember! Give importance to a stock's valuations / fair
EPV #REF! only "after" you have answered in "Yes" to these two que
Dhandho #REF! #REF! (1) Is this business simple to be understood? and (2) C
Ben Graham 7,519 13,782 understand this business?
DCF #REF!
Don't try to quantify everything. In stock research, the les
Expected Return 6,563 mathematical you are, the more simple, sensible, and use
Current Market Cap. 14,722 be your analysis and results. Great analysis is generally "b
the-envelope".

Also, your calculated "fair value" will be proven wrong i

future, so don't invest your savings just because you fall
with it. Don't look for perfection. It is overrated. Focus
decisions, not outcomes. Look for disconfirming evide
 importance to a stock's valuations / fair value
ave 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.
 A B C D E F G H I J K
1 ACTION CONSTRUCTION EQUIPMENT LTD
2 SCREENER.IN
3 Narration Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24
4 Sales 498 492 556 614 652 673 753 836 734 757
5 % Growth YOY 31% 37% 35% 36% 13% 12%
6 Expenses 457 447 494 541 570 584 650 706 636 648
7 Operating Profit 41 45 62 73 82 89 103 130 99 109
8 Other Income 24 6 8 3 16 17 23 21 28 34
9 Depreciation 5 4 4 5 5 5 6 7 7 7
10 Interest 2 2 3 3 3 4 6 11 7 9
11 Profit before tax 59 45 62 68 90 97 114 133 112 127
12 PBT Margin 12% 9% 11% 11% 14% 14% 15% 16% 15% 17%
13 % Growth YOY 52% 116% 84% 96% 25% 31%
14 Tax 14 11 15 21 22 23 26 35 28 32
15 Net profit 43 34 46 48 68 74 88 98 84 95
16 % Growth YOY 55% 118% 90% 107% 25% 28%
17 OPM 8% 9% 11% 12% 13% 13% 14% 16% 13% 14%
COMPANY NAME ACTION CONSTRUCTION EQUIPMENT
LATEST VERSION 2.10 PLEASE DO NOT MAKE ANY CH
CURRENT VERSION 2.10

META
Number of shares 11.91
Face Value 2
Current Price 1236.3
Market Capitalization 14722.28

PROFIT & LOSS

Report Date Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Sales 599.24 637.33 751.06 1086.55 1342.53 1156.23
Raw Material Cost 424.46 442.89 532.83 770.44 1,026.71 825.99
Change in Inventory -9.42 -1.26 4.22 2.65 47.01 31.50
Power and Fuel 4.66 4.49 4.48 5.53 6.61 5.17
Other Mfr. Exp 43.43 45.65 35.47 45.45 58.44 56.82
Employee Cost 47.24 55.55 59.11 67.68 75.11 85.69
Selling and admin 31.31 37.11 61.62 83.02 98.73 95.51
Other Expenses 19.97 19.71 22.33 25.57 26.17 27
Other Income 11.92 9.59 7.81 7.95 9.71 4.15
Depreciation 9.58 11.35 12.07 11.93 11.75 13.01
Interest 13.01 14.01 15.96 13.53 11.52 14.66
Profit before tax 8.08 14.9 19.22 74 84.21 68.03
Tax 2.82 6.26 5.21 21.98 28.18 15.56
Net profit 6.65 9.95 15.33 52.08 56.04 52.49
Dividend Amount 1.98 2.35 3.52 5.86 5.86 5.68

Quarters
Report Date Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23
Sales 497.68 491.83 556.33 613.84 651.61 673.24
Expenses 456.96 446.79 494.47 540.55 569.96 584.06
Other Income 24.36 5.96 7.68 3.12 16.24 16.97
Depreciation 4.66 3.97 4.38 4.99 5.21 5.43
Interest 1.65 2.13 3.13 3.38 3.14 3.81
Profit before tax 58.77 44.9 62.03 68.04 89.54 96.91
Tax 13.50 11.04 15.33 20.89 21.97 22.97
Net profit 43.49 33.97 46.49 47.65 67.55 73.92
Operating Profit 40.72 45.04 61.86 73.29 81.65 89.18

BALANCE SHEET
Report Date Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Equity Share Capital 19.79 23.46 23.46 23.46 23.46 22.7
Reserves 271.74 259.05 310.52 358.68 414.08 419.94
Borrowings 137.72 154.48 113.65 78.30 53.24 82.41
Other Liabilities 180.14 182.9 229.05 356.35 396.12 428.56
Total 609.39 619.89 676.68 816.79 886.9 953.61
Net Block 283.19 315.08 346.25 337.26 340.55 412.06
Capital Work in Progress 6.94 1.81 7.09 5.18 8.28 19.35
Investments 13.97 16.76 18.19 35.26 45.09 27.94
Other Assets 305.29 286.24 305.15 439.09 492.98 494.26
Total 609.39 619.89 676.68 816.79 886.9 953.61
Receivables 80.91 81.49 103.94 169.91 144.11 147.33
Inventory 141.82 123.82 113.60 144.30 212.89 270.69
Cash & Bank 11.41 10.55 12.57 10.83 11.42 9.27
No. of Equity Shares 98940000 117323000 117323000 117323000 117323000 113483196
New Bonus Shares
Face value 2 2 2 2 2 2

CASH FLOW:
Report Date Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Cash from Operating Activity 39.6 57.45 76.23 89.39 72.04 47.98
Cash from Investing Activity -14.46 -24.8 -17.3 -35.47 -26.66 -19.6
Cash from Financing Activity -26.06 -33 -56.8 -53.11 -43.65 -33.43
Net Cash Flow -0.92 -0.36 2.13 0.81 1.73 -5.06

PRICE: 40.55 38.7 59.75 167.65 114.6 34.25

DERIVED:
Adjusted Equity Shares in Cr 9.89 11.73 11.73 11.73 11.73 11.35
DO NOT MAKE ANY CHANGES TO THIS SHEET

Mar-21 Mar-22 Mar-23 Mar-24

1227.15 1629.58 2159.68 2913.8
883.22 1,192.38 1,579.95 2,073.12
27.21 21.27 44.40 50.30
4.63 6.11 7.63 10.28
54.35 71.64 93.2 135.02
72.17 84.81 99.76 120.66
90.21 122.47 150.39 175.21
30.8 21.99 52.23 46.08
15.31 10.78 41.12 76.61
13.94 15.41 18 23.24
12.23 9.52 10.29 23.17
108.12 137.3 233.75 433.93
28.32 32.3 60.76 105.74
79.83 105.02 171.6 328.16
5.68 7.15 11.91 23.82

Dec-23 Mar-24 Jun-24 Sep-24

753.11 835.84 734.26 756.69
650.37 706.16 635.63 648.13
22.97 20.92 27.55 34.21
5.89 6.71 6.85 6.99
5.52 10.70 7.34 9.03
114.3 133.19 111.99 126.75
26.06 34.74 27.81 31.93
88.25 98.44 84.18 94.8
102.74 129.68 98.63 108.56
 Mar-21 Mar-22 Mar-23 Mar-24
22.7 23.82 23.82 23.82
500.58 730.27 894.74 1206.02
54.58 31.02 7.45 4.46
477.43 497.25 673.73 934.3
1055.29 1282.36 1599.74 2168.6
429.33 451.68 487.45 579.56
12.55 24.29 24.41 43.64
31.44 179.24 348.66 594.11
581.97 627.15 739.22 951.29
1055.29 1282.36 1599.74 2168.6
224.68 188.72 169.34 164.31
266.05 333.37 418.54 553.40
36.51 14.31 48.96 110.41
113483196 119083196 119083196 119083196

2 2 2 2

Mar-21 Mar-22 Mar-23 Mar-24

86.06 103.52 274.28 433.42
-16.23 -201.48 -217.51 -368.04
-40.34 70.80 -41.01 -38.66
29.5 -27.16 15.76 26.73

154.35 240.50 406.90 1,426.65

11.35 11.91 11.91 11.91

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