PROJECT ON RATIO ANALYSIS AND DCF MODEL OF MAZAGAON DOCK SHIPBUILDERS LIMITED

- CHRISELLE D’SOUZA 1710

OBJECTIVES OF THE STUDY

 To analyse and evaluate the financial performance using ratio analysis & understanding its implications and what
it conveys to its shareholders at large.
 To study the growth of MDL in terms of trend analysis of financial statements for the past five years, from 2018
to 2022.
 To make suggestions & recommendations for improving the financial position of MDL.
 To create a Discounted Cashflow model, analyse its future trends and suggest a valuation for the firm.
RATIO ANALYSIS / TREND ANALYSIS
Chart Title
1.15 1.13
1.11
1.10
 Current ratio – increase in debtors, but significant increase in contract liabilities and 1.10
1.06 1.05
effective payables have decreased the current ratio YoY. 1.05

 ROI decrease - their ROI on bank deposits have seen a decrease, this could be accounted 1.00
2018 2019 2020 2021 2022
for usability of funds at their hands, & bank balance other than cash & cash equivalents
have increased YoY, they need to have sufficient bank balance to pay up their payables. Chart Title
 Payables turnover increase - in 2020 it had reached a low of 0.09, this could be due to 10.00
8.13
8.91
8.00
covid 19 effect on the payables but also there is a slow reduction in payable days as well. 6.51
5.82
6.00
However, over here the credit days from suppliers are on a decrease which raises red 3.85
4.00
flags. 2.00
0.00
Chart Title 2018 2019 2020 2021 2022

2.00
1.47
1.50
0.97
1.00 0.57 0.72
0.50 0.09
0.00
2018 2019 2020 2021 2022
DISCOUNTED CASHFLOW MODEL FOR MDL

 Through the DCF model, the valuation for the company is to be Rs. 3,226.36: keeping the growth rate at 12% for
2024 (from the MD&A) & keeping the growth rate same for the estimated years 2025, 2026, 2027 at 10%.
OTHER PROJECTS
UNDERTAKEN
 To create a dashboard for the
fixed and variable expenses for
MDL.
 To create a meaningful
distinction between the
Projects undertaken.

25

20
10178
15 10179
10180
10 10181

0
2010 2011 2012 2013 2014 2015 2016
THANK YOU