2005 2006 2007 2008 2009 2010 2012 2011

net sales 124.7 155.875 194.84375 243.55469 304.44336 380.5542 475.69275

594.61594
ebit 31.175 38.96875 48.710938 60.888672 76.11084 95.13855 118.92319
148.65398
interest 9 9 9 9 9 9 9 9
pbt 22.175 29.96875 39.710938 51.888672 67.11084 86.13855 109.92319
139.65398
tax@50% 11.0875 14.984375 19.855469 25.944336 33.55542 43.069275 54.961594
69.826992
pat 11.0875 14.984375 19.855469 25.944336 33.55542 43.069275 54.961594
69.826992
depriciation 1.6 1.7 1.8 1.9 2.1 2.5 3.6 2.9
cfat 12.6875 16.684375 21.655469 27.844336 35.65542 45.569275 57.861594
73.426992
nwc 5.3 7.5 9.4 11.8 14.5 18.2 28.6 22.9
capex 0.8 0.8 1 1.3 2.1 3.5 6.2 4.6
fcff 6.5875 8.384375 11.255469 14.744336 19.05542 23.869275 30.361594
38.626992
repayment 30
fcfe 6.5875 8.384375 11.255469 14.744336 19.05542 23.869275 30.361594 8.626992

0.8 0.64 0.512 0.4096 0.32768 0.262144 0.2097152 0.1677722

PV OF INTER 7.2 5.76 4.608 3.6864 2.94912 2.359296 1.8874368 1.5099494
PV OF DEBT 5.0331648
pv of interest 31.087631
pv of debt 12.280922
43.368553

pc of fcfe 5.27 5.366 5.7628 6.03928 6.24408 6.2571872 6.3672877 1.4473691

total pv of fcfe 49.303491

•NPV=31.1+12.2+0.328* Value of Shares -90=0

NPV= 31.1+12.2+0.328*X-90=0
NPV= 31.1+12.2+0.328*X-90=0 90
0.328 *X =90-31.1-12.2 31.1
0.328 X=46.7 12.2
X 142.37805 46.7

VALUE OF SAHRES =INR 142.378 LAKH

HOW MUCH IS THE VALUE OF HC shares expected after5 years?

assuming PE ratio is 15
P/E RATIO= CMP
EPS
EPS= 33.55542
1
EPS= 33.5542

15= CMP
33.5542
CMP= 15*33.5542
503.313

TOTAL VALUE OF SHARE=503.313*100000

50331300
INR 503.313 LAKH

The private equity owner wants 142.378 lakh

thus the company should be prepared to give about =142.378/503.313 0.2828816
 2013 2014
743.26992 929.0874
185.81748 232.27185
6 3
179.81748 229.27185
89.90874 114.63593
89.90874 114.63593
4.4 5.4
94.30874 120.03593
35.7 44.6
8 10.2
50.60874 65.235925
30 30
20.60874 35.235925

0.1342177 0.1073742
0.8053064 0.3221225
4.0265318 3.2212255

2.7660583 3.7834286