Emami valuation analysis

8/16/2019 Emami valuation analysis

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STATEMENT ANALYSIEMAMI LTD. AND

VALUATBY VIVITA RO

ADITI MOR

PRAVEEN

HITESH H

ARBEZ KHA

JIGAR S

DEBASHISH


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ABOUT EMAMI LTD.

• Established in eal! "#$s% E&a&i '()* has '(+n in India +ith *esen,e in &ase,t(s ( FM/G% eal estate% h(s*itals% etail% ne+s*int &an)a,t)in'% *ha&,hain% ,(nte&*(a! at %edible (il and bi(diesel . F()nded b! t+( iends M RA'a+al and M RS G(en0a% E&a&i t(da!% is a t)sted and l(1ed band ( the +ith (1e 25%### e&*l(!ees and a '()* t)n(1e ( ab()t Rs 3#%### ,.

•A'ainst all (dds +ith a 1isi(n ( ,(&binin' the a'e (ld +isd(& ( A!)1eda +i&(den &an)a,t)in' te,hni4)es ( ,eatin' +innin' bands the ,(&*an! s+ith a &e'e a&()nt ( Rs. 2#%###. A dea& ( ea,hin' ()t t( the Indian &i,lass a ta'et a)dien,e +h(& the! th()'ht +ill ha1e in,easin' *(tential (,(ns)&*ti(n% the ,(&*an! stated &an)a,t)in' ,(s&eti, *(d),ts as +ell aA!)1eda &edi,ines )nde the band na&e ( E&a&i (& a s&all (6,e 7stilletained8 in 9(l0ata$s b)siness disti,t ( Bada Ba:a. Thei ,(ns)&e insi'ht ise;e,ted t(da! in the &issi(n state&ent ( E&a&i Li&ited< "Making people

healthy and beautiful naturally".


3/14

EMAMI$S OVER T>E LAST 5 YEARS

?2#@? ?3@ ?3? ?#@#.##

5.##

3#.##

35.##

2#.##

25.##

#.##

25.## 25.##

2#.## 2#.##

22."# 22."#

35.3 35.3

Share Capital

E4)it! C A)th(ised E4)it! Paid U*


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?2#@? ?3@ ?3? ?#@ ?#@##.##

#.#5

#.3#

#.35

#.2#

#.25

#.#

#.5

#.##.#?

#.35

#.22

#.2

Total Debt/Equity(x)

T(tal Debt E4)it!78 Linea 7T(tal Debt E4)it!788


?2#@? ?3@ ?3?#.##

3#.##

2#.##

#.##

?#.##

5#.##

@#.##

"#.##

#.##

".?3 "3.5

5".3"

Shareholder!


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?2#@? ?3@ ?3? ?#@#.##

5.##

3#.##

35.##

2#.##

25.##

#.##

#ro$th %atio

Net Sales G(+th78 /(e EBITDA G(+th78


6/14


?2#@? ?3@ ?3? ?#@#.##

2##.##?##.##

@##.##

##.##

3###.##

32##.##

3?##.##

3@##.##

3##.##3@"@.2

3#2.2 35.? 323.5#

Total &!!et!

T(tal Assets

'ear!

Total &!!et!


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?2#@? ?3@ ?3? ?#@ ?#@##.##

#.2#

#.?#

#.@#

#.#

3.##

3.2#

3.?#

3.@# 3.52

3.3.3

3.2#3.3#

&!!et Turnoer(x)

Asset T)n(1e78 Linea 7Asset T)n(1e788

'E&%S

&!!et Turnoer(x)

?2#@? ?3@ ?#.##

#.5#

3.##

3.5#

2.##

2.5#

.##

.5#

2.@

2.@5

Current %atio

/)ent Rati(78 Linea 7/

'ea

Current %atio(x)


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?2#@? ?3@ ?3? ?#@ ?#@##.##

3##.##

2##.##

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5##.##

@##.##

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5#@.5" ?.2

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perating *ro+t

O*eatin' P(Ht Linea 7O*eatin' P(Ht8

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*ro+t &fter Ta

P(Ht Ate Ta Linea 7P(


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?2#@? ?3@ ?3? ?#@ ?#@##

3

2

?

5

@

2.

.52

?.5

5.55 5.?

,orking Capital/Sale!(x)

(0in' /a*italSales78

?2#@? ?3@AA ?3BB?#

5

3#

35

2#

25

B#

2?.G

3A.B@

[email protected]

Debtor! Turnoe

Debt(s T)n(1e7E8 Linea 7Debt


10/14

DUPONTJS ANALYSIS

?2#@? ?3@ ?3? ?#@ ?#@#

#.##

5.##

3#.##

35.##

2#.##

25.##

#.##

5.##

?#.##

?5.##

5#.##

23.53 23."3

3.35 3".53 3.#"

3.52 3. 3.3 3.2# 3.3#

3. 3.5@ 3." 3."" 3."5

??.?".#

?2.?3

".#"?."?

E-a-i td. Du *ont &naly!i! Con!olidated

PATM 78 Linea 7PATM 788 Sales T(tal Assets78

Assets t( E4)it! 78 ROE 78 Linea 7ROE 788


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FORE/ASTS FOR T>E FUTURE YEARS

• F/FF ( Ma,h 2#35 C ?.2 /.

• G(+th in F/FF in the *e1i()s !ea C 33.

• Ind)st! /AGR K 33

• >en,e +e ass)&e '(+th in ee ,ash ;(+s at thsa&e ateE!ti-ate for 'ear Mar01 Mar02 Mar03 Mar04

M

ree Ca!h lo$ for ir- 5?#. @#5.5 @""." "5.@5 ?


12/14

/OST OF /APITAL FOR EMAMI

• A1ea'e et)ns ( E&a&i K 2.@

• Ris0 ee ate ( et)n In ,(&*ais(n t( Hed de*(sit a( 3 !ea de*(sits K

• Beta ( e&a&i sense K #.@#

• Beta ( E&a&i Nit! K #.55

• /(st ( ,a*ital ( E&a&i K 9e R 7R& K R8

• 9e #.@72.@ K 8

• 9e 3".@


13/14

VALUATION BASED ON DIS/OUNTED /AFLOS

Esti&ate ( Yea MaC3@ MaC3" MaC3 MaC3Fee /ash Fl(+ ( Fi& 5?#. @#5.5 @""." "5.@Dis,()ntin' Fa,t( Q

3".@ #.523 #."2@ #.@3@ #.52"Dis,()nted F/FF Q

3".@ ?@#. ?.@2 ?3.2 ./)&ilati1e Dis,()nted

F/FF 23#3.2#

Te&inal Val)e as *eG(dan '(+th &(del

35.@?3"

Val)ati(n ( E&a&i 2#?5?.5"

Val)e *e shae #3.#


14/14

/ON/LUSION

•E&a&i is tadin' in the &a0et at %!. 423

• e 1al)e E&a&i at %!. 460.63

• >en,e +e ,(n,l)de that E&a&i is (1e 1al)ed at&(&ent in the &a0et

• e s)''est that in1est&ent in E&a&i is n(tad1isable at this &(&ent as the &a0et &a! ,(itsel.

• e als( s)''est alead! in1ested in1est(s t(+ithda+ thei in1est&ent as the! ,an b((0 the

1al)ati(n *(Ht.

Emami valuation analysis

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