Balance Sheet

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds: Figures in cr

Total Share Capital 4,130.40 4,130.40 4,130.40 4,130.40 4,130.40
Equity Share Capital 4,130.40 4,130.40 4,130.40 4,130.40 4,130.40
Share Application Money 0 0 0 0 0
Preference Share Capital 0 0 0 0 0
Reserves 6,176.25 8,471.01 13,182.75 18,933.17 23,853.70
Revaluation Reserves 0 0 0 0 0
Networth 10,306.65 12,601.41 17,313.15 23,063.57 27,984.10
Secured Loans 1,603.98 1,122.16 1,556.39 925.31 1,473.60
Unsecured Loans 4,165.81 3,175.46 2,624.13 2,119.93 6,065.19
Total Debt 5,769.79 4,297.62 4,180.52 3,045.24 7,538.79
Total Liabilities 16,076.44 16,899.03 21,493.67 26,108.81 35,522.89

Application Of Funds
Gross Block 28,043.48 29,360.46 29,912.71 30,922.73 32,728.69
Less: Accum. Depreciation 15,558.41 17,198.32 18,315.00 19,351.42 20,459.86
Net Block 12,485.07 12,162.14 11,597.71 11,571.31 12,268.83
Capital Work in Progress 366.48 757.94 1,236.04 2,389.55 6,544.24
Investments 606.71 292 513.79 538.2 652.7
Inventories 4,220.69 6,210.06 6,651.47 6,857.23 10,121.45
Sundry Debtors 1,908.45 1,881.73 2,314.75 3,048.12 3,024.36
Cash and Bank Balance 356.93 341.83 437.36 470.17 347.94
Total Current Assets 6,486.07 8,433.62 9,403.58 10,375.52 13,493.75
Loans and Advances 3,260.11 4,524.37 3,097.70 3,644.22 4,292.50
Fixed Deposits 5,775.19 5,830.81 9,172.47 13,289.27 17,880.59
Total CA, Loans & Advances 15,521.37 18,788.80 21,673.75 27,309.01 35,666.84
Deffered Credit 0 0 0 0 0
Current Liabilities 7,810.97 8,081.23 8,105.99 8,960.91 10,201.51
Provisions 5,387.15 7,236.44 5,550.78 6,797.83 9,408.21
Total CL & Provisions 13,198.12 15,317.67 13,656.77 15,758.74 19,609.72
Net Current Assets 2,323.25 3,471.13 8,016.98 11,550.27 16,057.12
Miscellaneous Expenses 294.93 215.82 129.15 59.48 0
Total Assets 16,076.44 16,899.03 21,493.67 26,108.81 35,522.89

Contingent Liabilities 4,566.72 5,541.62 5,605.90 17,143.54 32,193.13

Book Value (Rs) 24.95 30.51 41.92 55.84 67.75
 Profit & Loss account

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Income
Sales
Turnover 32,169.42 32,805.96 39,722.59 46,175.85 49,331.47
Excise
Duty 3,455.12 4,605.48 5,393.82 6,217.18 5,532.89

Net Sales 28,714.30 28,200.48 34,328.77 39,958.67 43,798.58

Other
Income 662.2 937.94 1,408.71 1,701.59 2,002.77

Stock
Adjustme
nts 367.72 1,131.31 289.15 436.28 1,872.87
Total
Income 29,744.22 30,269.73 36,026.63 42,096.54 47,674.22
Expenditure

Raw
Materials 11,523.05 15,034.54 16,252.28 17,257.67 23,915.45
Power &
Fuel Cost 2,195.59 2,489.74 2,578.84 2,825.56 3,119.42
Employee
Cost 3,811.75 4,156.97 5,087.76 7,919.28 8,401.73

Other
Manufact
uring
Expenses 231.52 303.71 346.59 492.18 643.35

Selling
and
Admin
Expenses 1,394.09 1,619.20 1,602.31 1,727.55 1,587.61

Miscellan
eous
Expenses 358.36 524.91 528.71 737.79 992.85
Preopera
tive Exp
Capitalise
d -921.71 -1,352.05 -1,423.08 -1,832.22 -1,930.40

Total
Expenses 18,592.65 22,777.02 24,973.41 29,127.81 36,730.01

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Operating
Profit 10,489.37 6,554.77 9,644.51 11,267.14 8,941.44
PBDIT 11,151.57 7,492.71 11,053.22 12,968.73 10,944.21
Interest 605.05 467.76 332.13 250.94 253.24
PBDT 10,546.52 7,024.95 10,721.09 12,717.79 10,690.97
Depreciati
on 1,126.95 1,207.30 1,211.48 1,235.48 1,285.12

Other
Written
Off 184.89 181.44 128.59 75.49 128.02

Profit
Before
Tax 9,234.68 5,636.21 9,381.02 11,406.82 9,277.83

Extra-
ordinary
items 174.66 71.12 60.57 64.61 181.26

PBT (Post
Extra-ord
Items) 9,409.34 5,707.33 9,441.59 11,471.43 9,459.09
Tax 2,592.37 1,694.36 3,253.80 3,934.65 3,284.28

Reported
Net Profit 6,816.97 4,012.97 6,202.29 7,536.78 6,174.81

Total
Value
Addition 7,069.60 7,742.48 8,721.13 11,870.14 12,814.56

Preferenc
e
Dividend 0 0 0 0 0
Equity
Dividend 1,363.03 826.08 1,280.42 1,528.25 1,073.90
Corporate
Dividend
Tax 185.24 115.86 197.98 258.91 181.26
Per share data (annualised)

Shares in
issue
(lakhs) 41,304.01 41,304.01 41,304.01 41,304.01 41,304.01

Earning
Per Share
(Rs) 16.5 9.72 15.02 18.25 14.95

Equity
Dividend
(%) 33 20 31 37 26

Book
Value (Rs) 24.95 30.51 41.92 55.84 67.75
Year 2005 2006 2007 2008
Total Debt 5,769.79 4,297.62 4,180.52 3,045.24
Networth 10,306.65 12,601.41 17,313.15 23,063.57
Debt/Equity 0.5598123542 0.341042788069 0.241465013587937 0.1320368009
Before Tax Cost of Debt 10.48651684 10.88416379298 7.94470544334198 8.2404014134
After Tax Cost of Debt 7.3405617882 7.618914655088 5.56129381033938 5.7682809893

Cost Of Debt 5.7280926149

Rf 5
Rm 12
Beta 1.33
Ke 14.31
Leavered Beta 1.1885768347
Unleavered Beta 1.118985295

Cost of Equity 14.31

Discounting Factor 1.1248871807

Cost Of Capital 12.488718072

Debt Percentage Equity Percent Beta of Equity Cost of Equity WACC
0 1 1.118985294992 12.8328970649422 12.832897065
0.1 0.9 1.206017484602 13.4421223922155 12.670719414
0.2 0.8 1.314807721615 14.2036540513071 12.508541764
0.3 0.7 1.454680883489 15.1827661844249 12.346364114
0.4 0.6 1.641178432655 16.4882490285819 12.184186463
0.5 0.5 1.902275001486 18.3159250104017 12.022008813
0.6 0.4 2.293919854733 21.0574389831315 11.859831162
0.7 0.3 2.946661276812 25.6266289376811 11.697653512
0.8 0.2 4.252144120969 34.7650088467804 11.535475861
0.9 0.1 8.16859265344 62.1801485740781 11.373298211
 2009 Working Note
7,538.79
27,984.10
0.2693954781465
3.3591597590595 Interest / Totle Debt
2.3514118313416 Before Tax * (1 - Tax Rate)

Debt Percentage 0.2122234424

Interest Expense 253.24
Interest / Debt 1193.2706261

Interest EBIT / Interest

0
119.32706261 74.9322056888434
238.65412523 37.4661028444217
357.98118784 24.9774018962811
477.30825045 18.7330514222108
596.63531307 14.9864411377687
715.96237568 12.4887009481406
835.28943829 10.7046008126919
954.61650091 9.36652571110542
1073.9435635 8.32580063209371
Year 2005 2006 2007 2008 2009
Capex - Depreciation 501.14 -181.13 928.05 4675.53
NonCash
Change inWC
non -1681.83 10.56 860.23 944.44 2944.3
cash WC 1692.39 849.67 84.21 1999.86
Total Expenses 2193.53 668.54 1012.26 6675.39
Capital Employed 16076.44 16899.03 21493.67 26108.81 35522.89

Year 2005 2006 2007 2008 2009

EBIT 10489.37 6554.77 9644.51 11267.14 8941.44
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00%
EBIT(1-Tax) 7342.559 4588.339 6751.157 7886.998 6259.008
Free Cash Flow 2394.809 6082.617 6874.738 -416.382
ROCE 0.4567279199 0.2715149331 0.3140997791 0.3020818643 0.176196475
Reinvestment Rate 0.4780662458 0.0990259892 0.128345411 1.0665252385
Growth 0.1298021247 0.0311040413 0.038770821 0.1879179875

Avg Reinvestment 0.4429907211

Avg ROCE 0.3041241943
Average Growth 0.1347241961
Growth Multiplier 1.1347241961

Year 2010 2011 2012 2013 2014

EBIT(1-Tax)
Re 10146.068316 11512.989214 13064.067431 14824.113414 16821.280177
investment 4494.6141199 5100.1473942 5787.260652 6566.9446912 7451.6710358
FCFF 5651.4541964 6412.84182 7276.8067791 8257.1687229 9369.6091414
DCF 1.1248871807 1.2653711694 1.4233998073 1.6011641962 1.8011290786
NPV of DCF 5024.0186689 5067.9531629 5112.2718593 5156.9781177 5202.0753276

PV of all Future Cash Flows

(FIRM VALUE) 142619.97934
SHARE VALUE 272.04037861

Closing price of Stock on 8th March was 238. THUS STOCK IS UNDER
 2015 2016 2017 2018 2019 onwards
19087.513627 21659.063557 24577.063483 27888.1886 29700.9208639
8455.5914259 9594.7641836 10887.411075 12354.20878 13157.2323512
10631.922201 12064.299373 13689.652408 15533.97982 16543.6885126
2.0260670113 2.2790968083 2.5637267833 2.883903393 2.88390339342
5247.5669076 5293.4563065 5339.7470031 5386.442507 95789.4694752

Terminal
Value 276247.576073

8. THUS STOCK IS UNDER VALUED. BUY!

 Working Note on Calculation

Increase in Gross Block + Increase in Capital Work in Progress - Depreciation

Inventories + Sundry Debtors - Current Liabilities

It is the Total Liabilities of the company

Operating Profit of the firm

EBIT(1-Tax) - Total Expenses

EBIT(1-Tax) / Totle Capital Employed
Totle Expenditure / EBIT(1-Tax)

Assuming that in long run company will grow at the growth rate of Indian Economy