Date: 1st October 2018

Steps Criteria
1 Company Size

2 Strong Financial Position

3 Earnings Stability

4 Dividend Record

5 Earnings Growth

6 Moderate P/E Ratio

7 Moderate P/B Ratio

8 Margin of Safety
Description
Company Size:
Market Capitalisation (Rs. Crores)

a. Current Ratio:
Current Assets (Rs. Crores)
Current Liabilities (Rs. Crores)
Current Ratio

b. Long-Term Debt <= Net Current Assets:

Long-term Debts (Rs. Crores)
Net Current Assets (Rs. Crores)

c. Total Debt <= 2x Shareholders' Equity:

Total Debt (Rs. Crores)
Shareholders' Equity (Rs. Crores)

Earnings Stability:
Positive Earnings per Share over last 10 years?

Dividend Record:
Uninterrupted dividend payments over last 10 years?

Earnings Growth:
Minimum increase of at least 33% in earnings per share over the last 10 years?

Moderate P/E Ratio:

Share price (Rs)
2015 Earnings Per Share (Rs)
2016 Earnings per Share (Rs)
2017 Earnings per Share (Rs)
3 Year Average Earnings Per Share
P/E Ratio
P/E Ratio less than 12x?

Moderate P/B Ratio:

Share price (Rs)
Shareholders' Equity (Rs. Crores)
Intangible Assets (Rs. Crores)
Net Asset Value (Rs. Crores)
Fully diluted number of common stock
Fully diluted number of common stock (in Crores)
NAV per share
P/B Ratio
P/B Ratio less than 1.5x?

Margin of Safety:
Earnings Yield
10 Year Indian (Bunds) Government Bond Yields
Margin of Safety
Earnings Yield greater than 10 year govt bonds?
Figures Comments
54.35 Sufficient Market Cap over USD 1Bn

71.58
69.05
1.04 Current Ratio less than desired 1.2x

53.5
2.53 Long-term debt not less than Net Current Assets

94.6
54.5 Total Debt less than 2x Shareholders Equity

YES Positive earnings per share each year over the last 10 years

YES Positive dividend payments over the last 10 years

YES 481% growth from average EPS in 2008-10 vs 2015-17

77.71
9.7
10.45
13.12
11.09
7.01
YES P/E Ratio of 7.01x is below 12x

77.71
54.5
9.5
45
601,995,196
0.60
74.75
1.04
YES P/B Ratio of 1.04x is less than 1.5x
 14%
0.40%
13.87%
YES Significant margin of safety
Date: 1st October 2018
Steps Criteria
1 Earnings Yield

2 Dividend Yield

3 Return on Invested Capital

4 Return on Equity
Description Figures
Earnings Yield:
3 Year Average Earnings Per Share 11.09
Share price (Rs.) 77.71
Earnings Yield 14.27%

Dividend Yield:
Share price (Rs) 77.71
2017 Dividend Per Share (Rs) 3.20
2018 Dividend Per Share (Rs) 3.50
2019 Dividend Per Share (Rs) 4.00
3 Year Average Dividend Per Share 3.57
Dividend Yield 4.59%

a. Owners' Earnings:
Net Profit (Rs. Crores) 8.71
Depreciation & Amortisation 4.82
Cost of Stock Options Issuance 0
CAPEX Spend (Average over last 10 years) 0.80
Oversized pension return income 0
Owners' Earnings (Rs. Crores) 12.73

b. Invested Capital:
Total Assets (Rs. Crores) 193.48
Cash and cash equivalents (Rs. Crores) 9.04
Past Accounting Changes (Rs. Crores) 0
Invested Capital (Rs. Crores) 184.44

c. Return on Invested Capital:

Return on Invested Capital 6.90%

Return on Equity:
Net Income (Rs. Crores) 8.71
Shareholders' Equity (Rs. Crores) 54.5
Return on Equity 15.98%
Comments
EURs Year Earnings per Share (Fully diluted on common stock) Annual Growth
2010 0.49
2011 0.31 -37%
2012 4.93 1490%
2013 7.45 51%
2014 7.75 4%
2015 8.1 5%
2016 8.83 9%
2017 9.7 10%
2018 10.45 8%
2019 13.12 26%

Ten year absolute growth 481%

EURs Year Dividend per Share (Fully diluted on common stock) Annual Dividend Growth
2010 0.3
2011 0.3 0%
2012 1.3 333%
2013 2.3 77%
2014 2.5 9%
2015 2.6 4%
2016 2.9 12%
2017 3.2 10%
2018 3.5 9%
2019 4 14%
EUR Mn Year Property & Plant Equipment (found in Assets within Balance Sheet)
2010 11292
2011 11385
2012 11427
2013 11685
2014 13341
2015 15113
2016 17182
2017 17759
2018 17960
2019 18471
Annual Spend Annual Spend Growth

93 1%
42 0%
258 2%
1656 14%
1772 13%
2069 14%
577 3%
201 1%
511 3%