Business Valuation Logistcs Industry: Group 11

BUSINESS VALUATION
LOGISTCS INDUSTRY
GROUP 11
Rajat Kumar – PGP18227
Pratyaksh Mangal – PGP18223
Sanket Jiwane – PGP18230
Shivam Maheshwari – PGP18141
Swaroop Gali – PGP18244
Vivek V – PGP18257
1.5%
1.8%
Global Economy
6.3%
• World GDP will rise by 2.7% this year and
2.5%
2.9% in 2020
7.4%
1.1%
• Global Manufacturing PMI at 49.4, lowest
since October 2012
• Global trade tensions expected to become
weaker
GDP Growth Rate of largest economies • Financial Conditions to support growth in
Advanced and Emerging economies
India Economy
• India's labour force is expected to
touch 160-170 million by 2020.
• During 2018-19, merchandise
exports from India have increased
8.85 per cent year-on-year India's
Index of Industrial Production (IIP)
rose 4.4 per cent year-on-year in
2018-19
• The interim Union Budget for 2019- • India has emerged as the fastest
20 is focuses on supporting growing major economy in the world,
economically less privileged, backed by its strong democracy and
workers while continuing the partnerships.
Government of India’s push
towards better physical and social • India’s GDP is estimated to have
infrastructure. increased 7.2 per cent in 2017-18 and
7 per cent in 2018-19.
Economic Analysis
GDP FOREX RESERVES & FDI
• India’s GDP growth is estimated to be 7%. • Foreign Exchange Reserves in India increased to
• the deceleration in the economic activity 430380 USD Million in July 19
because of GST and demonetization may have • FDI equity inflows in India in 2018-19 indicate the
bottomed out. government's effort to improve ease of doing
business and relaxation in FDI norms.
CAD INDIAN LENDING RATE

ECONOMY
• India's CAD widened to $57.2 billion, or 2.1% of • Bank Lending Rate in India remained unchanged
GDP. at 9.40 percent in July 2019.
• CAD at 2.1% for FY19 is within safe limit and is • In the long-term, the India Prime Lending Rate is
not worrisome until our exports grow faster than projected to trend around 9.95 percent by 2020.
imports.
INFLATION UNEMPLOYMENT
• India's retail price inflation rate rose to 3.18 • The unemployment rate in India stood at 6
percent year-on-year in June 2019. percent
• Food prices were the biggest contributor to the • The Unemployment Rate is projected to trend
price increase. around 6.40 percent in 2020
Logistics Sector
• Indian Logistics Industry is expected to grow at 8-10% for the next few
years with a CAGR of around 7.8%
• To develop infrastructure in the country, the government has initiated
projects like Bharatmala project, electrification of railway tracks, focus on
high speed trains by actively working on e-mobility solutions for clean
and cost-effective mobility.
• The road sector has attracted private investments.
• Indian Railways has gained traction by increasing investment potential.
• The draft National Logistics Policy has been prepared to help in
maximizing capacity utilization but also reduce costs.
• The objective of the draft policy 2018 is to create a national logistics e-
marketplace as a one-stop marketplace for exporters and importers.
• The Indian logistics sector provides livelihood to more than 22 million
people and improving the sector will facilitate 10 % decrease in indirect
logistics cost leading to the growth of 5 to 8% in exports.
• Further, the Survey estimates that the worth of Indian logistics market
would be around USD 215 billion in next two years compared to about
USD 160 billion currently.
Government Initiatives for
Logistics Sector
2 THRUST ON BUILDING
1 DIESEL DE-REGULATION
HIGHWAYS
Logistics costs have become more Truck turn-around time is improved,
accurate, forces us to be competitive Vehicle down times have reduced,
globally Productivity is better
3 CARRIER’S ACT, 2007 DEDICATED FRIEGHT

4
CORRIDOR
Will bring order to a largely scattered Ecologically smarter as well as
sector, More allocation of Economically competitive
responsibilities & Liabilities
5 GOODS & SERVICES TAX 6 MAKE IN INDIA CAMPAIGN
Ensure major shifts in warehousing Will add more than $ 20 billion to Indian
locations & transportation costs logistics sector as Make In India has high
logistics dependence
Logistics Performance Index
• In the World Bank’s Logistics Performance Index (LPI), India’s ranking improved to 35th as against the 54th spot it
occupied in the previous report.
• Programmes, such as Make in India, and improvements in infrastructure have helped India improve its logistical
performance
• The Goods and Services Tax (GST) is expected to help boost the returns of the trucking industry and feed into better
performance of the logistics sector.
• It is estimated that the 14% logistics costs of India’s GDP may be brought down to 9% by 2022.
• Almost all the s parameters of LPI has dropped for India even after the key initiatives from the government in the
area of core infrastructure and logistics has been unleashed.
Customs International Logistics Tracking &

Quality Timeliness
Efficiency Shipments Competence Tracing
• 7% decrease • 14% decrease • 4.5% decrease • 8% decrease • 6% decrease • 6.5% decrease

in the score in the score in the score in the score in the score in the score
• Below Global • Below Global • Above Global • Below Global • Above Global • Above Global
average average average average average average
Key issues identified
1 UNIFIED PROCESS/ REGULATION TERMINAL CAPACITY ENHANCEMENT 2
• High costs/ cumbersome • Inadequate port capacity/

procedures of setting up terminal Modernized equipment
• Delay in clearance by customs & • Lack of warehouse
SPS agencies Infrastructure
• Lack of coordination between • Delays due to capacity
regulatory authorities
constraints
• Inefficiency of single window
scheme • High cost of container
repositioning
3 DIGITALIZATION TRANSPORT NETWORK ENHANCEMENT 4
• Transaction charges incurred while • Lack of road connectivity to

payment through credit/ debit cards Airport/ Port
• Real time trace & track is not available • Issues of Last mile connectivity
• RFID is available only in western • Lack of Rail Network
corridor • Limited Air connectivity
• Updates only through phone calls • High cost due to long distance
travel by road for air cargo
Our Firms
• Aegis Logistics Ltd. was • Blue Dart Express or Blue • Transport Corporation of • Sical Logistics Ltd., founded • Container Corporation of • Gateway Distriparks
incorporated in 1956 and Dart is an Indian Logistics India Limited is in 1955 and with revenues in India Ltd. (CONCOR),is a Limited, a company based
its shares have been listed Company providing headquartered in excess of Rs. 800 Cr., is Navratna Public Sector in Mumbai, India, is a
on the Bombay Stock courier delivery services Gurugram, Haryana, India. India’s leading integrated logistics company with
Undertaking under the
logistics solutions provider
Exchange since 1978. headquartered in Chennai, It was founded in 1958 by Indian Ministry of three verticals: Container
with over 5 decades of
• Aegis Group plays a key Tamil Nadu. It has a Mr. Prabhu Dayal Agarwal Railways. Freight Stations, Inland
experience in providing end
role in India’s downstream subsidiary cargo airline, at Kolkata, India. TCI has • Incorporated in March Container Depots with rail
to end logistics solutions.
oil and gas sector, and its Blue Dart Aviation that 1400+ offices all across • In 2011 Sical was acquired by 1988 under the movement and Cold
flagship company, Aegis operates in South Asian India with 6000+ Coffee Day group, with Companies Act, CONCOR Chain Storage & Logistics.
Logistics Limited, is India’s countries. employees interests ranging from coffee commenced operations in • The company was
leading oil, gas, and • The company was • It was founded in 1958 by Retail Business, stakeholdings November 1989 taking founded in April 1994, and
chemical logistics founded in April 1983. Mr. Prabhu Dayal Agarwal in leading IT and embedded over an existing network originally promoted by
company. at Kolkata, India.[1] TCI has technology companies, to of seven inland container Newsprint Trading & Sales
1400+ offices all across technology parks and SEZs depots Corporation (NTSC)
India with 6000+ and hospitality.
employeess.
AEGIS LOGISTICS LTD. INDIA
AEGIS LOGISTICS LTD. INDIA
CURRENT MARKET PRICE NEWS SNAPSHOT
200 INR
DuPont Analysis
FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Tax Burden 72.71 74.23 70.49 87.99 73.23
Adjustment Factor 0.80 1.00 1.00 1.00 1.00
Interest Burden 88.94 90.78 91.98 94.32 92.37
Operating Margin 4.08 7.66 4.69 4.99 5.83
Asset Turnover 4.29 2.05 2.42 2.25 2.42
Leverage Ratio 2.35 1.83 2.05 2.08 1.79
Free Cash Flow to Equity
FCFE (2019) 2603.127
Growth 7%
Stable Growth (Risk free rate) 7.29%
Cost of Equity 12.81%
0 1 2 3 4 5 6 7 8 9 10 11
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Terminal Year
Projected Cash Flow 2603.13 2785.35 2980.32 3188.94 3412.17 3651.02 3906.59 4180.05 4472.66 4785.74 5120.74 5479.20 5878.63
Discount Factor 0.89 0.79 0.70 0.62 0.55 0.49 0.43 0.38 0.34 0.30 0.27
Present Value of Cash Flow 2469.06 2341.90 2221.29 2106.89 1998.39 1895.47 1797.85 1705.26 1617.43 1534.14 1455.13
Value of Prepeuity at stable growth 106500.2
Present value factor 0.27
Present Value of prepeuity 28283.56
Value of Equity 49426.36
Add: Cash 1656.73

No of shares 334.00
Value of Share 152.94
Market value of share 200
Free Cash Flow to Firm
FCFF (2019) 2632.96
Growth 7.00%
Stable Growth 7.29%
WACC 12.44%
0 1 2 3 4 5 6 7 8 9 10 11 Terminal Value
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Discount Factor 0.89 0.79 0.70 0.63 0.56 0.49 0.44 0.39 0.35 0.31 0.28
Value of enterprise 53535.81
Less: Debt Value 3978.20
Add: Cash 4020.73
No of shares 334.00
Market Price 200.00
Capital Cash Flow
Capital cash flow 2776.055401

Growth 7%

Cost of Capital 12.44%
0 1 2 3 4 5 6 7 8 9 10 11
Terminal
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Year
Discount Factor 0.89 0.79 0.70 0.63 0.56 0.49 0.44 0.39 0.35 0.31 0.28

Value of Enterprise 56445.46
Adjusted Present Value
FCFF (2019) 2744.08
Growth 7%
Stable Growth 7.29%
WACC 12.44%
0 Terminal
1 2 3 4 5 6 7 8 9 10 11 Value
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Discount Factor 0.89 0.79 0.70 0.63 0.56 0.49 0.44 0.39 0.35 0.31 0.28
120265.3936
Value of Prepeuity at stable growth
55795.25
Value of Pure Equity Company
3978.20
Value of Debt (see WACC sheet)
Cost of Debt (pre tax) 10.89%
Tax Rate 34.80%
1384.41
Present Value of perpeutual debt

BLUEDART LOGISTICS LTD. INDIA
BLUEDART LOGISTICS LTD. INDIA
Rs. 2401.00
FCFF (2019) 1382.36624
Growth 5%
Stable Growth (Risk free
rate) 4.00%
WACC 7.50%
0 1 2 3 4 5 6 7 8 9 10 11
Terminal
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Year
Discount Factor 0.93 0.87 0.80 0.75 0.70 0.65 0.60 0.56 0.52 0.49 0.45
Present Value of Cash
Flow 1350.93 1320.21 1290.19 1260.85 1232.18 1204.16 1176.78 1150.02 1123.87 1098.31 1073.34
Value of Prepeuity at
stable growth 70663.35
Present Value of
prepeuity 31893.42
Value of ENTERPRISE 45174.26
Add: Cash 2687.10
Value of EQUITY 41681.26
No of shares 23.73
FCFE (2019) 161.7126483
Growth 5.00%
rate) 4.00%
0 1 2 3 4 5 6 7 8 9 10 11
Terminal
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Year
Discount Factor 0.93 0.86 0.80 0.75 0.69 0.65 0.60 0.56 0.52 0.48 0.45
Flow 157.88 154.14 150.48 146.91 143.43 140.03 136.71 133.47 130.30 127.21 124.20
Present Value of
prepeuity 3638.45
Add: Cash 2687.10

No of shares 23.73
ROE 7.55%
Plowback ratio(1-Divident
payout) 0.67
Sustanaible growth rate 0.0505548

Growth 5%
rate) 7.29%
0 1 2 3 4 5 6 7 8 9 10 11
Terminal
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Year
Discount Factor 0.93 0.87 0.81 0.75 0.70 0.66 0.61 0.57 0.53 0.49 0.46
Flow 515.70 504.96 494.45 484.15 474.07 464.19 454.52 445.06 435.79 426.71 417.83

FCFF (2019) 645.70
Growth 5%
Stable Growth 4.00%
WACC 7.50%
Termin
0 1 2 3 4 5 6 7 8 9 10 11 al Value
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Discount Factor 0.93 0.87 0.80 0.75 0.70 0.65 0.60 0.56 0.52 0.49 0.45
Flow 630.67 616.00 601.66 587.66 573.98 560.62 547.58 534.83 522.38 510.23 498.35
Value of Prepeuity at stable
growth 32797.8776
Value of Pure Equity
Company 20984.22
Value of Debt (see WACC

sheet) 5388.10
Tax Rate 34.80%
Present Value of
perpeutual debt 1875.06

TRANSPORT CORPORATION OF INDIA
LOGISTICS LTD. INDIA
TRANSPORT CORPORATION OF INDIA LTD. INDIA
Rs. 274.60
For the fiscal year ended 31 March 2019, Transport
REVENUE
TCI group is India's largest integrated Corporation of India Limited revenues increased 17% to Rs
logistics service provider, serving 3000 27.54 billion
destinations
TCI Supply Chain Solutions, TCI Express, TCI

Freight, TCI Global, TCI Seaways, TCI
Foundation NET
Net income increased 17% to RS1.44 billion
INCOME
*TCI Freight- 17% to RS13.99 billion
*Supply Chain Solution Division segment
increase of 12% to RS10.24B.
Other Income - Balancing value increase of 78% to
OTHER RS117.8M (income).assets have been financed by the equity.
INCOME
8
TCIL Equity Shares Information
Dividend reinvestment program or dividend stock purchase
The Company does not offer a dividend reinvestment program or dividend stock
program, at present.
History of stock split at TCI?
When is the dividend declared?

TCI normally pays dividend twice a year. An interim dividend is generally declared
by the board from October to January along with the adoption of second quarter
results or third quarter results.
WACC-TCIL
Cost of Debt 6.42%
Book Value Weights

Equity 8971.98
Debt 5637.13
Weight of Equity 61.41%
Weight of Debt 38.59%
Ke = 11.40 %
Kd =6.42%
WACC 9.47%
Market Value Weights

No. of outstanding Shares 76.661975
Market Price of Share (31/03/2019) 235
Equity 18015.56
Debt 5637.13
Weight of Equity 76.17%
Weight of Debt 23.83%
WACC 10.21%
FCFE-TCIL
FCFE (2019) 361.5362097
Growth 7.44%
Stable Growth (Risk free rate) 7%
0 1 2 3 4 5 6 7 8 9 10 11
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Discount Factor 0.90 0.81 0.72 0.65 0.58 0.52 0.47 0.42 0.38 0.34 0.31
Add: Cash 155.33

No of shares 76.66
FCFF-TCIL
FCFF (2019) 1074.84
Growth 7.44%
Stable Growth 7%
WACC 10.29%
Terminal
0 1 2 3 4 5 6 7 8 9 10 11 Value
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Discount Factor 0.91 0.82 0.75 0.68 0.61 0.56 0.50 0.46 0.41 0.38 0.34
Add: Cash 155.33
No of shares 76.66
CCF-TCIL
Growth 7.44%
0 1 2 3 4 5 6 7 8 9 10 11
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Terminal Year
Discount Factor 0.91 0.82 0.75 0.68 0.61 0.56 0.50 0.46 0.41 0.38 0.34
44821.4
Value of Prepeuity at stable growth 1
Add debt 5637.129
less cash 155.33
value of equity 23479.06
no of shares 76.66
value of share 306.27
SICAL LOGISTICS LTD. INDIA
Sical Logistics
• Market Cap = 534 cr
• Sical Logistics Ltd., founded in 1955 and with revenues in excess of Rs. 800 Cr., is India’s leading
integrated logistics solutions provider with over 5 decades of experience in providing end to
end logistics solutions.
• In 2011 Sical was acquired by the Rs. 4000 Cr. Coffee Day group.
• While traditionally known for its stevedoring, customs handling, trucking and steamer agency
businesses, Sical today has made significant investments in logistics related infrastructure and
operates mechanized Port terminals (container and bulk), container freight stations, container
rakes, rail and road terminals.
• Sical Logistics Standalone December 2018 Net Sales at Rs 353.34 crore, up 30.11% Y-o-Y
• Sical Logistics Consolidated March 2019 Net Sales at Rs 426.45 crore, up 14.62% Y-o-Y
• Sical Logistics gains 7% on contract wins worth Rs 363 crore.
SICAL LOGISTICS LTD.
Rs. 91.50
DuPont Analysis
2015 2016 2017 2018 2019
TAX Burden 74.97 71.02 62.44 56.70 48.55

Interest
Burden 32.98 33.83 53.14 49.18 42.19
Operating
Margin 7.98 9.85 12.85 9.04 6.61
ATR 0.49 0.42 0.43 0.50 0.59
Leverage 3.80 4.14 4.49 4.66 4.61
Free cash flow to firm
FCFF (2019) 443.00
Growth 0.10
Stable Growth 0.04
WACC 0.08
Terminal
0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00 Value
2019.00 2020.00 2021.00 2022.00 2023.00 2024.00 2025.00 2026.00 2027.00 2028.00 2029.00 2030.00
Discount Factor 0.92 0.85 0.79 0.73 0.68 0.62 0.58 0.53 0.49 0.46 0.42

growth 31674.73
Add: Cash 302.98
No of shares 58.54
Free cash flow to Equity
FCFE (2019) 1280.57
Growth 0.10
Stable Growth 0.04
Cost of equity 0.10
Terminal
0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00 Value
2019.00 2020.00 2021.00 2022.00 2023.00 2024.00 2025.00 2026.00 2027.00 2028.00 2029.00 2030.00
Discount Factor 0.91 0.83 0.76 0.70 0.64 0.58 0.53 0.48 0.44 0.40 0.37

Add: Cash 302.98

No of shares 58.54
Capital Cash Flow
CCF(2019) 1784.57
Growth 0.10
Stable Growth 0.04
WACC 0.08
Terminal
0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00 Value
2019.00 2020.00 2021.00 2022.00 2023.00 2024.00 2025.00 2026.00 2027.00 2028.00 2029.00 2030.00
Discount Factor 0.92 0.85 0.79 0.73 0.68 0.62 0.58 0.53 0.49 0.46 0.42

Add: Cash 302.98

No of shares 58.54
APV(2019) 443.00
Growth 0.10
Stable Growth 0.04
WACC 0.08
0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00Terminal Value
2019.00 2020.00 2021.00 2022.00 2023.00 2024.00 2025.00 2026.00 2027.00 2028.00 2029.00 2030.00
Discount Factor 0.92 0.85 0.79 0.73 0.68 0.62 0.58 0.53 0.49 0.46 0.42

Add: Cash 302.98
No of shares 58.54
CONCOR LOGISTICS LTD. INDIA
CONCOR LOGISTICS LTD.
516.25 INR
2015 2016 2017 2018 2019
Tax Burden 79.89 72.37 72.45 75.81 74.26
Interest Burden 98.98 99.99 99.99 96.27 97.06
Asset Turnover 0.71 0.66 0.57 0.59 0.59
Leverage Ratio 1.20 1.17 1.15 1.16 1.20
DuPont Analysis
• Incorporated in March 1988 under the Companies Act, and commenced operation from November
1989 taking over the existing network of 7 ICDs from the Indian Railways
• Undisputed market leader having the largest network of 83 ICDs/CFSs in India
• Management of Ports, air cargo complexes and establishing cold-chain
• Company developed multimodal logistics support for India's International and Domestic
containerization and trade
• Transit warehousing for import and export cargo
• Bonded warehousing, enabling importers to store cargo and take partial deliveries, thereby deferring
duty payment
• Less than Container Load (LCL) consolidation, and reworking of LCL cargo at nominated hubs
• Air cargo clearance using bonded trucking
ROE 9.15%
Plowback ratio(1-Divident payout) 0.57

Sustanaible growth rate 5.26%
FCFE (2019) 10260

Growth 5.26%

0 1 2 3 4 5 6 7 8 9 10 11
Terminal
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Year
Projected Cash Flow 10260 10799 11367 11964 12593 13254 13951 14684 15456 16268 17123 18023 19335
Discount Factor 0.91 0.83 0.76 0.69 0.63 0.58 0.53 0.48 0.44 0.40 0.37
Present Value of Cash Flow 9857 9471 9099 8742 8399 8070 7753 7449 7157 6876 6606

Present Value of prepeuity 311853
Value of Equity 401335
Add: Cash 2057

No of shares 609
Value of Share 662
Market value of share 516.25
FCFF (2019) 10338

Growth 5.26%
Stable Growth 7.28%
WACC 9.41%
Terminal
0 1 2 3 4 5 6 7 8 9 10 11 Value
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Discount Factor 0.91 0.84 0.76 0.70 0.64 0.58 0.53 0.49 0.45 0.41 0.37
Value of enterprise 431492
Less: Debt Value 10582
Add: Cash 2057
No of shares 609
Value of Share 694
Market Price 516.25
Capital Cash Flow
Capital cash flow 10191
Growth 5.26%
0 1 2 3 4 5 6 7 8 9 10 11
Terminal
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Year
Discount Factor 0.93 0.87 0.81 0.75 0.70 0.66 0.61 0.57 0.53 0.49 0.46
Value of Enterprise 518481

FCFF (2019) 10338
Growth 5.26%
Stable Growth 7.29
WACC 9.41%
0 Terminal
1 2 3 4 5 6 7 8 9 10 11 Value
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Discount Factor 0.91 0.84 0.76 0.70 0.64 0.58 0.53 0.49 0.45 0.41 0.37
growth 1600284
Value of Pure Equity Company 686076
Value of Debt (see WACC sheet) 10582
Tax Rate 29.42%
Present Value of perpetual debt 3113
Value of enterprise 689189

GATEWAY DISTRIPARKS LOGISTICS LTD. INDIA
Gateway Distriparks
• Market Cap – $12.48 Bn
• FY 2018-19: Increase of ₹ 193 Million in Short Term Debt
• FY2018-19: Increase of ₹ 6377 Million in Long Term Debt
• April 2019G: GD acquires Blackstone stake in GatewayRail for ₹ 850 cr
• Net Debt more than 5x of EBITDA signifies that the company is highly leveraged
• Interest Cover of less than 5x and interest expense is becoming a concern for the company
• Low interest cover and high debt

GATEWAY DISTRIPARKS LOGISTICS LTD.
NEWS SNAPSHOT
CURRENT MARKET PRICE
Rs. 114.00
DuPont Analysis
2015 2016 2017 2018 2019
TAX Burden 79.73 80.97 83.40 85.19 110.57
Interest Burden 90.75 96.89 94.38 90.02 80.97
ATR 0.68 0.29 0.34 0.33 0.24
Leverage 1.86 1.38 1.13 1.19 1.52

FCFE (2019) 458.2583243
Growth 7%

WACC 10.39%
Year 0 1 2 3 4 5 6 7 8 9 10 11
Terminal
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Year
Discount Factor 0.91 0.82 0.74 0.67 0.61 0.55 0.50 0.45 0.41 0.37 0.34
9956.0
Less: Debt 5297.3
Add: Cash 697.40
No of shares 108.73
FCFE (2019) 70.69198534
Growth 4.70%
rate) 7.29%
0 1 2 3 4 5 6 7 8 9 10 11
Terminal
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Year
Discount Factor 0.91 0.82 0.75 0.68 0.62 0.56 0.51 0.46 0.42 0.38 0.34
Flow 67.19 63.86 60.69 57.68 54.83 52.11 49.53 47.07 44.74 42.52 40.41
Value of Prepeuity at 1237.1
stable growth 54
Add: Cash 697.40

No of shares 108.73
Capital Cash Flow
Growth 7%
rate) 7.29%
0 1 2 3 4 5 6 7 8 9 10 11
Terminal
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Year
Discount Factor 0.91 0.82 0.74 0.67 0.61 0.55 0.50 0.45 0.41 0.37 0.34
Flow 361.81 350.69 339.91 329.45 319.32 309.51 299.99 290.76 281.82 273.16 264.76
Market Based Relative Valuation
Name EV/EBITDA P/E Name EV/EBITDA P/E Name EV/EBITDA P/E
SICAL 10.28 38.80 SICAL 10.28 38.80 SICAL 10.28 38.80
TCIL 10.10 14.53 CONCOR 17.98 26.13 TCIL 10.10 14.53
Aegis 18.06 30.14 Aegis 18.06 30.14 Aegis 18.06 30.14
BlueDart 20.21 63.58 BlueDart 20.21 63.58 BlueDart 20.21 63.58
Gateway 23.67 3.40 Gateway 23.67 3.40 CONCOR 17.98 26.13
Median 18.06 30.14 Median 18.06 30.14 Median 17.98 30.14
Mean 16.46 30.09 Mean 15.33 34.64
Mean 18.04 32.41
EBITDA/Earning 17907.60 9447.76

EBITDA/Earning 2495.173 1095.770101 EBITDA/Earning 823.97 468.30
EV/Equity value 323411.26 284755.42 EV/Equity value 45062.82438 33026.51085 EV/Equity value 14814.91 14114.57
Debt 10581.95 Debt 5637.129 Debt 5297.3 0
Cash 2057.40 2057.40 Cash 155.33 Cash 697.399 697.399
Equity value 314886.71 286812.82 Equity value 39581.02 33026.51085 Equity value 10215.01 14114.57
No. of Share 609.30 609.30 No. of Share 76.66 76.66 No. of Share 108.73 108.73
Value of Share 516.80 470.73 Value of Share 516.3058137 430.8069398 Value of Share 93.95 129.82
CONCOR / AEGIS TCIL / SICAL Gateway Distriparks / Bluedart
Name EV/EBITDA P/E Name EV/EBITDA P/E Name EV/EBITDA P/E
SICAL 10.28 38.80 CONCOR 17.98 26.13 SICAL 10.28 38.80
TCIL 10.10 14.53 TCIL 10.10 14.53 TCIL 10.10 14.53
CONCOR 17.98 26.13
Aegis 18.06 30.14 Aegis 18.06 30.14
BlueDart 20.21 63.58
BlueDart 20.21 63.58 CONCOR 17.98 26.13
Gateway 23.67 3.40
Gateway 23.67 3.40 Gateway 23.67 3.40
Median 17.98 26.13
Mean 16.70 28.76 Median 18.06 26.13 Median 17.98 26.13
Mean 18.00 27.56 Mean 16.02 22.60
EBITDA/Earnin
3667.61 2227.92
g EBITDA/Earning 1006.20 213.76 EBITDA/Earning 2861.80 1128.36
EV/Equity EV/Equity value 18171.97 5585.58 EV/Equity value 51455.16 29484.10
61261.36 58215.43
value
Debt 10528 Debt 6180.1
Debt 3978.20
Cash 302.98 302.98 Cash 2687.1 2687.1
Cash 4020.73 4020.73
Equity value 61303.89 62236.16 Equity value 7946.95 5888.56 Equity value 47962.16 32171.20
No. of Share 160.41 160.41 No. of Share 58.54 58.54 No. of Share 23.73 23.73
Value of Share 382.16 387.97 Value of Share 135.75 100.59 Value of Share 2021.34 1355.84
Thank You

Business Valuation Logistcs Industry: Group 11

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Business Valuation Logistcs Industry: Group 11

Uploaded by

Copyright:

Available Formats

BUSINESS VALUATION

CAD INDIAN LENDING RATE

3 CARRIER’S ACT, 2007 DEDICATED FRIEGHT

5 GOODS & SERVICES TAX 6 MAKE IN INDIA CAMPAIGN

Customs International Logistics Tracking &

• 7% decrease • 14% decrease • 4.5% decrease • 8% decrease • 6% decrease • 6.5% decrease

• High costs/ cumbersome • Inadequate port capacity/

3 DIGITALIZATION TRANSPORT NETWORK ENHANCEMENT 4

• Transaction charges incurred while • Lack of road connectivity to

CURRENT MARKET PRICE NEWS SNAPSHOT

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Add: Cash 1656.73

Capital cash flow 2776.055401

Stable Growth (Risk free rate) 7.29%

Value of Prepeuity at stable growth 121666.913

Value of enterprise 57179.66

CURRENT MARKET PRICE NEWS SNAPSHOT

Add: Cash 2687.10

Sustanaible growth rate 0.0505548

Capital cash flow 526.6726483

Present Value of prepeuity 213469.01

Value of Enterprise 218586.44

Value of Debt (see WACC

Value of enterprise 22859.27

CURRENT MARKET PRICE NEWS SNAPSHOT

TCI Supply Chain Solutions, TCI Express, TCI

When is the dividend declared?

Book Value Weights

Market Value Weights

Add: Cash 155.33

CURRENT MARKET PRICE NEWS SNAPSHOT

2015 2016 2017 2018 2019

TAX Burden 74.97 71.02 62.44 56.70 48.55

Value of Prepeuity at stable

Value of Prepeuity at stable growth 69086.59

Add: Cash 302.98

Value of Prepeuity at stable growth 127596.44

Add: Cash 302.98

Value of Prepeuity at stable growth 31674.73

CURRENT MARKET PRICE NEWS SNAPSHOT

Plowback ratio(1-Divident payout) 0.57

FCFE (2019) 10260

Stable Growth (Risk free rate) 7.28%

Value of Prepeuity at stable growth 850753

Present Value of prepeuity 311853

Value of Equity 401335

Add: Cash 2057

Value of Equity 403392

FCFF (2019) 10338

Stable Growth (Risk free rate) 7.29%

Cost of Capital 9.41%

Value of Prepeuity at stable growth 907203

Present value factor 0.46

Present Value of prepeuity 418362

Value of Enterprise 518481

Value of enterprise 689189

• FY 2018-19: Increase of ₹ 193 Million in Short Term Debt

• FY2018-19: Increase of ₹ 6377 Million in Long Term Debt

• April 2019G: GD acquires Blackstone stake in GatewayRail for ₹ 850 cr

• Low interest cover and high debt

2015 2016 2017 2018 2019

TAX Burden 79.73 80.97 83.40 85.19 110.57