Financial Analysis of Cadilla Healthcare Ltd.

8/3/2019 Financial Analysis of Cadilla Healthcare Ltd.

1/22

Analysis of Cadila Healthcare Limited

1 Balance Sheet BSE ID 532321

2 P&L Account NSE ID CADILAHC3 Cash Flow Statement ISIN ID INE010B01019

4 Financial Ratios

5 Historical Stock Data

6 Cost of Capital

7 Capital Structure

Cadila Healthcare Ltd.

Assignment: Corporate Finance


2/22

Sandeep K Biswal

Roll No. 2027

PGPSM 2011-12NISM


3/22

Balance Sheet

Mar '07 Mar '08 Mar '09 Mar '10 Mar '11

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of FundsTotal Share Capital 62.8 62.8 68.2 68.2 102.4

Equity Share Capital 62.8 62.8 68.2 68.2 102.4

Share Application Money 0 0 0 0 0

Preference Share Capital 0 0 0 0 0

Reserves 819.5 991 1,164.60 1,553.90 1,987.50

Revaluation Reserves 0 0 0 0 0

Networth 882.3 1,053.80 1,232.80 1,622.10 2,089.90

Secured Loans 362.7 559.3 636.7 554.2 531.7

Unsecured Loans 85 179.6 183.2 39.9 32.3

Total Debt 447.7 738.9 819.9 594.1 564Total Liabilities 1,330.00 1,792.70 2,052.70 2,216.20 2,653.90

Application Of Funds

Gross Block 1129.2 1241 1358.5 1556.7 1732.5

Less: Accum. Depreciation 387.7 457.1 521.6 606.3 695.9

Net Block 741.5 783.9 836.9 950.4 1036.6

Capital Work in Progress 52.1 96.4 117.3 142.9 233.7

Investments 292.8 442.7 595.40 598.90 698.80

Inventories 328.7 331 349 380.8 464.5

Sundry Debtors 238.6 282.50 381.90 400.80 475.10Cash and Bank Balance 8.2 7.7 9.9 7.6 14.1

Total Current Assets 575.5 621.2 740.8 789.2 953.7

Loans and Advances 249.7 357 274.1 395.9 537.2

Fixed Deposits 4.20 11.30 15.70 20.60 28.30

Total CA, Loans & Advances 829.4 989.5 1030.6 1205.7 1519.2

Deffered Credit 0 0 0 0 0

Current Liabilities 511.5 421.5 452.6 531.2 654

Provisions 74.3 98.3 105.3 151.7 180.4

Total CL & Provisions 585.8 519.8 557.9 682.9 834.4

Net Current Assets 243.6 469.7 472.70 522.80 684.80Miscellaneous Expenses 0 0 30.4 1.2 0

Total Assets 1330 1,792.70 2,052.70 2,216.20 2,653.90

Contingent Liabilities 63.3 73.4 523.7 530.6 122.4

Book Value (Rs) 70.24 83.89 90.32 118.84 102.07

Cadila Healthcare

------------------- in Rs. Cr. -------------------


4/22

Profit & Loss account


12 mths 12 mths 12 mths 12 mths 12 mths

IncomeSales Turnover 1,538.20 1,758.20 1,781.50 1,908.00 2,213.70

Excise Duty 87.9 76.4 38.1 22.4 34.6

Net Sales 1,450.30 1,681.80 1,743.40 1,885.60 2,179.10

Other Income 68.7 118.2 201.8 538.6 806.9

Stock Adjustments 72.8 -4 -18.7 11.2 34.6

Total Income 1,591.80 1,796.00 1,926.50 2,435.40 3,020.60

Expenditure

Raw Materials 618.3 650.6 649.1 806.2 934.8

Power & Fuel Cost 34.3 41.9 46.3 57.9 71.9Employee Cost 165.1 181.5 197.2 266.9 371.1

Other Manufacturing Expenses 25.1 30 38.3 38.9 48.7

Selling and Admin Expenses 377.8 440.3 488.9 554 746.1

Miscellaneous Expenses 42.7 61.1 54.8 58.1 74.4

Preoperative Exp Capitalised 0 0 0 0 0

Total Expenses 1,263.30 1,405.40 1,474.60 1,782.00 2,247.00

Operating Profit 259.8 272.4 250.1 114.8 -33.3

PBDIT 328.5 390.6 451.9 653.4 773.6

Interest 29.9 43.5 72.9 43.1 39.5PBDT 298.6 347.1 379 610.3 734.1

Depreciation 66.7 73.4 82.6 90 96.9

Other Written Off 0 0 0 0 0

Profit Before Tax 231.9 273.7 296.4 520.3 637.2

Extra-ordinary items 0 3.2 0 0 10.6

PBT (Post Extra-ord Items) 231.9 276.9 296.4 520.3 647.8

Tax 27.2 40.7 30.5 17 37.4

Reported Net Profit 204.7 236.2 265.9 503.3 610.4

Total Value Addition 645 754.8 825.5 975.8 1,312.20

Preference Dividend 0 0 0 0 0Equity Dividend 50.2 56.5 61.4 102.4 128

Corporate Dividend Tax 8.5 9.6 10.5 11.6 14.6

Per share data (annualised)

Shares in issue (lakhs) 1,256.14 1,256.14 1,364.99 1,364.99 2,047.49

Earning Per Share (Rs) 16.3 18.8 19.48 36.87 29.81

Equity Dividend (%) 80 90 90 100 125

------------------- in Rs. Cr. -------------------

Cadila Healthcare


5/22

Book Value (Rs) 70.24 83.89 90.32 118.84 102.07


6/22

Cash Flow

Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths

Net Profit Before Tax 231.9 278.5 296.4Net Cash From Operating Activities 210.6 41.5 268.1

Net Cash (used in)/from Investing Activities -171.1 -267.4 -261.1

Net Cash (used in)/from Financing Activities -29.4 232.5 5.9

Net (decrease)/increase In Cash and Cash Equivalents 10.1 6.6 12.9

Opening Cash & Cash Equivalents 2.3 12.4 12.7

Closing Cash & Cash Equivalents 12.4 19 25.6

Cadila Healthcare

------------------- in Rs. Cr. --


7/22

Mar '10 Mar '11

12 mths 12 mths

520.3 637.2513.5 549.4

-213.2 -357.5

-297.7 -177.7

2.6 14.2

25.6 28.2

28.2 42.4

-----------------


8/22

Key Financial Ratios


Face Value 5 5 5 5 5Dividend Per Share 4 4.5 4.5 5 6.25

Operating Profit Per Share (Rs) 20.68 21.69 18.32 8.41 -1.63

Net Operating Profit Per Share (Rs) 115.46 133.89 127.72 138.14 106.43

Free Reserves Per Share (Rs) 64.79 78.61 68.44 98.37 86.33

Bonus in Equity Capital 61.85 61.85 56.95 56.95 71.26

Operating Profit Margin(%) 17.91 16.19 14.34 6.08 -1.52

Profit Before Interest And Tax Margin( 12.66 11.09 8.38 1 -4.38

Gross Profit Margin(%) 20.23 11.83 9.6 1.31 -5.97

Cash Profit Margin(%) 17.79 16.7 20.05 25.81 22.82Adjusted Cash Margin(%) 18.19 16.7 20.05 25.81 22.82

Net Profit Margin(%) 13.42 13.17 13.31 20.39 20.57

Adjusted Net Profit Margin(%) 13.82 13.17 13.31 20.39 20.57

Return On Capital Employed(%) 20.14 17.31 20.52 27.39 24.75

Return On Net Worth(%) 23.2 22.41 22.11 31.05 29.2

Adjusted Return on Net Worth(%) 23.89 21.46 26.43 33.75 27.75

Return on Assets Excluding Revaluatio 70.24 83.89 88.09 118.75 102.07

Return on Assets Including Revaluatio 70.24 83.89 88.09 118.75 102.07

Return on Long Term Funds(%) 22.43 20.8 24.66 28.52 25.22

Current Ratio 1.02 1 0.93 1.4 1.63

Quick Ratio 0.82 1.23 1.16 1.16 1.23

Debt Equity Ratio 0.51 0.7 0.67 0.37 0.27

Long Term Debt Equity Ratio 0.35 0.42 0.39 0.31 0.25

Interest Cover 10.3 7.96 6.54 16.02 19.21

Total Debt to Owners Fund 0.51 0.7 0.67 0.37 0.27

Financial Charges Coverage Ratio 11.19 8.82 6.91 16.18 19.08

Financial Charges Coverage Ratio Post 10.08 8.12 5.78 14.77 18.91

Inventory Turnover Ratio 4.64 5.78 5.76 5.48 5.17

Debtors Turnover Ratio 6.85 6.45 5.25 4.82 4.98

Investments Turnover Ratio 5.02 5.78 5.76 5.48 5.17

Fixed Assets Turnover Ratio 2.54 1.62 1.51 1.4 1.42

Total Assets Turnover Ratio 1.29 1.06 0.94 0.94 0.89

Asset Turnover Ratio 1.56 1.62 1.51 1.4 1.42

Management Efficiency Ratios

Cadila Healthcare

------------------- in Rs. Cr. -------------------

Investment Valuation Ratios

Profitability Ratios

Liquidity And Solvency Ratios

Debt Coverage Ratios


9/22

Average Raw Material Holding 97.79 92.69 107.03 92.87 131.55

Average Finished Goods Held 41.7 37.38 34.68 30.46 29.04

Number of Days In Working Capital 60.47 100.54 97.61 99.81 113.13

Material Cost Composition 42.63 38.68 37.23 42.75 42.89

Imported Composition of Raw Materi 36.81 33.08 26.52 25.32 28.54

Selling Distribution Cost Composition 12.45 12.46 13.76 14.48 16.62Expenses as Composition of Total Sale 21.35 26.03 42.13 54.81 59.73

Dividend Payout Ratio Net Profit 28.67 27.98 27.04 22.65 23.36

Dividend Payout Ratio Cash Profit 21.62 21.35 20.63 19.21 20.16

Earning Retention Ratio 72.16 70.78 77.39 79.17 75.42

Cash Earning Retention Ratio 78.85 77.94 82.05 82.11 78.94

AdjustedCash Flow Times 1.61 2.47 2.05 0.93 0.83

Earnings Per Share 16.3 18.8 19.48 36.87 29.81

Book Value 70.24 83.89 90.32 118.84 102.07

Profit & Loss Account Ratios

Cash Flow Indicator Ratios


10/22

Year Month Open Price High Price Low Price Close Price Return

No. of

Shares

No. of

Trades

2006 April 684.70 800.00 609.55 781.70 381783 9620

May 798.70 798.70 559.00 579.25 -25.90 791937 8856

June 600.00 611.40 461.00 568.35 -1.88 139597 5679

July 554.00 579.95 512.65 559.90 -1.49 110731 3278

August 545.05 704.00 329.00 337.10 -39.79 261722 9537

September 337.90 345.00 303.55 322.15 -4.43 477217 5574

October 322.00 355.00 312.30 344.35 6.89 612016 6270

November 337.00 384.00 320.00 323.80 -5.97 552202 11926

December 329.00 359.80 300.10 351.45 8.54 463289 4638

2007 January 352.00 365.00 335.00 336.65 -4.21 250535 3976

February 344.00 356.50 297.00 320.05 -4.93 181389 4248

March 316.00 339.00 292.00 335.50 4.83 128345 3838April 325.00 353.00 315.15 322.75 -3.80 304005 4919

May 326.75 339.00 307.00 335.80 4.04 169014 4168

June 338.00 411.70 326.00 376.30 12.06 999788 13080

July 379.50 383.50 326.00 351.40 -6.62 360251 5236

August 352.00 367.00 298.10 305.85 -12.96 285056 5427

September 330.00 330.00 298.00 310.95 1.67 525006 6466

October 310.00 335.00 285.00 316.80 1.88 975443 8110

November 319.00 327.00 285.00 287.25 -9.33 181930 5037

December 290.00 343.75 285.00 314.70 9.56 564137 9470

2008 January 321.50 321.50 202.50 247.30 -21.42 359370 6840

February 248.00 269.00 240.00 260.80 5.46 170111 4034

March 263.00 266.95 209.00 254.65 -2.36 174190 3931

April 253.70 299.00 243.00 288.65 13.35 157951 4049

May 280.00 320.70 280.00 295.50 2.37 145343 4512

June 299.00 332.00 274.00 297.35 0.63 207847 6319

July 292.00 325.00 286.90 312.45 5.08 100683 2828

August 310.00 347.00 305.00 322.10 3.09 106359 2600

September 327.90 347.00 301.00 310.10 -3.73 258193 2455

October 335.00 335.00 245.00 258.05 -16.78 78234 2359.00

November 261.00 276.00 222.00 225.60 -12.58 43356 1844.00

December 226.00 281.00 223.10 267.60 18.62 174477 24192009 January 289.00 295.00 233.05 246.40 -7.92 214294 5220

February 249.00 271.90 248.00 254.40 3.25 50941 709.00

March 254.40 297.00 237.55 272.10 6.96 456428 6392

April 275.00 329.00 271.50 307.10 12.86 216782 5477

May 310.00 346.90 282.10 332.80 8.37 567111 6547

June 333.00 401.90 318.00 378.80 13.82 560343 7339

July 379.00 478.00 335.00 463.35 22.32 544194 8920

August 469.00 482.95 417.05 455.00 -1.80 744559 8414

Monthly Stock Price D

Cadila Healthcare


11/22

September 441.10 539.95 436.00 518.65 13.99 699760 10735

October 519.00 574.40 480.00 565.30 8.99 193552 6028

November 565.05 617.95 542.10 597.90 5.77 300780 5435

December 602.00 699.00 602.00 648.50 8.46 459410 11299

2010 January 664.90 735.00 620.00 712.65 9.89 512090 14169

February 706.00 770.95 660.00 761.65 6.88 304844 11360

March 764.00 853.70 763.05 825.00 8.32 447124 12990April 833.00 838.00 542.20 564.50 -31.58 643991 11457

May 568.00 648.00 552.00 610.05 8.07 718555 12907

June 610.05 679.00 595.20 657.90 7.84 401341 9825

July 661.95 681.00 627.90 633.80 -3.66 402438 12178

August 643.50 655.00 599.00 603.25 -4.82 933521 8336

September 614.00 667.00 605.00 656.10 8.76 356125 10157

October 661.95 725.00 661.95 700.00 6.69 571765 15330

November 701.00 809.45 677.65 768.20 9.74 300387 8746

December 770.95 798.50 732.00 778.35 1.32 115087 3799

2011 January 780.00 864.00 756.00 825.20 6.02 476014 12372

February 829.00 834.00 703.10 735.35 -10.89 190909 6918

March 742.80 802.70 724.90 791.30 7.61 282767 7969


12/22

Total Turnover Open High Low Close Return

Price/

Earnings

Price/

Bookvalue

263709100.00 1419.57 1502.34 1376.42 1500.48 21.03 4.55

517045533.00 1507.07 1575.50 1201.33 1289.86 -14.04 19.91 4.43

73730873.00 1297.70 1312.83 1058.66 1271.02 -1.46 16.47 3.57

60899872.00 1272.80 1304.22 1167.13 1275.50 0.35 17.37 3.65

156863855.00 1274.60 1414.20 1262.23 1398.68 9.66 17.96 3.81

155932057.00 1399.37 1498.58 1376.39 1495.48 6.92 18.96 3.93

201501856.00 1498.95 1575.33 1470.28 1560.68 4.36 20.06 4.06

197342844.00 1564.30 1661.96 1560.13 1645.24 5.42 19.91 4.29

152940817.00 1649.74 1684.99 1524.60 1655.74 0.64 19.58 4.31

87696610.00 1655.28 1723.27 1603.20 1691.45 2.16 20.32 4.53

60087758.00 1695.50 1760.70 1525.45 1545.27 -8.64 19.00 4.57

40517328.00 1551.10 1588.25 1461.85 1556.72 0.74 17.00 4.18100518060.00 1530.10 1712.66 1483.45 1666.14 7.03 18.03 4.41

55549118.00 1680.30 1773.90 1638.80 1766.08 6.00 18.59 4.45

374074342.00 1773.34 1805.67 1693.32 1804.81 2.19 19.68 4.50

128840981.00 1809.90 1941.75 1806.68 1894.18 4.95 20.95 4.75

94282694.00 1879.13 1897.77 1678.29 1857.70 -1.93 19.02 4.46

162273577.00 1865.69 2124.18 1860.53 2118.86 14.06 20.81 4.71

296856684.00 2124.02 2460.72 2079.13 2439.87 15.15 24.57 5.58

54313109.00 2470.89 2513.05 2273.15 2454.23 0.59 25.36 5.93

174822237.00 2479.21 2666.59 2450.23 2656.52 8.24 27.07 6.36

103637624.00 2664.67 2776.96 1904.07 2230.39 -16.04 25.74 6.15

43717971.00 2248.44 2371.08 2063.20 2217.47 -0.58 21.69 5.38

42543385.00 2178.64 2178.64 1819.94 1932.41 -12.86 19.38 4.81

43451728.00 1946.04 2183.34 1892.09 2157.52 11.65 19.87 4.90

44144116.00 2187.32 2213.68 2014.01 2038.22 -5.53 20.05 4.91

65345562.00 2055.31 2059.91 1638.67 1644.18 -19.33 17.98 4.23

31016171.00 1647.70 1836.17 1532.03 1749.11 6.38 17.15 3.35

34793394.00 1720.25 1899.61 1714.91 1782.08 1.88 18.52 3.53

85921179.00 1767.25 1844.38 1474.96 1555.70 -12.70 17.36 3.31

22666920.00 1570.74 1592.41 921.75 1145.68 -26.36 12.87 2.46

11110214.00 1187.12 1282.79 991.75 1062.35 -7.27 12.38 2.17

45441639.00 1068.68 1209.43 997.91 1156.59 8.87 12.65 2.2258275122.00 1163.67 1251.29 1026.60 1107.06 -4.28 12.79 2.23

13267732.00 1099.30 1140.71 1018.46 1044.94 -5.61 13.29 2.18

122017054.00 1030.46 1174.28 955.60 1140.43 9.14 13.20 2.14

65700549.00 1144.17 1362.94 1125.93 1339.38 17.45 15.96 2.58

186936833.00 1370.29 1787.07 1370.29 1772.82 32.36 19.01 3.02

195278009.00 1799.28 1894.44 1701.04 1767.09 -0.32 20.49 3.46

229539867.00 1771.78 1923.64 1606.61 1909.63 8.07 19.99 3.37

332819508.00 1917.60 1952.79 1798.30 1930.45 1.09 20.39 3.54

ta from April 2006 to March 2011

BSE 200 Index


13/22

344306514.00 1938.10 2096.38 1894.51 2094.94 8.52 21.54 3.75

105001556.00 2100.46 2166.43 1957.68 1962.88 -6.30 21.93 3.87

173641833.00 1950.28 2146.97 1894.34 2105.51 7.27 20.57 3.87

301244110.00 2117.60 2189.68 2081.14 2180.25 3.55 21.27 4.01

354343711.00 2178.01 2242.47 2011.14 2065.21 -5.28 21.79 4.10

222646226.00 2053.93 2103.13 1990.25 2071.72 0.32 19.69 3.76

360424657.00 2091.42 2224.31 2091.42 2199.50 6.17 20.36 3.90370248185.00 2210.53 2267.07 2175.22 2230.17 1.39 20.75 3.99

421797703.00 2218.91 2224.56 2026.84 2152.21 -3.50 19.60 3.75

251998755.00 2147.54 2257.99 2099.94 2248.06 4.45 20.36 3.47

262013388.00 2237.38 2319.47 2219.05 2281.63 1.49 21.21 3.51

591882857.00 2297.17 2371.08 2283.12 2302.88 0.93 22.18 3.58

225740626.00 2313.81 2557.24 2313.75 2530.47 9.88 23.38 3.77

400672561.00 2541.63 2644.37 2512.75 2541.85 0.45 24.36 3.93

228793775.00 2562.44 2671.95 2354.94 2451.45 -3.56 21.99 3.84

88506999.00 2453.00 2538.19 2366.71 2533.90 3.36 20.78 3.73

376665818.00 2543.96 2557.05 2229.16 2270.22 -10.41 20.02 3.61

148221125.00 2279.03 2303.24 2122.78 2185.86 -3.72 18.05 3.36

217181194.00 2199.48 2391.35 2198.60 2378.69 8.82 18.28 3.42


14/22

Dividend

Yield

1.27

1.34

1.60

1.56

1.48

1.41

1.33

1.26

1.25

1.18

1.17

1.281.20

1.12

1.05

0.98

1.05

1.01

0.89

0.84

0.78

0.82

0.93

1.04

1.00

0.97

1.07

1.22

1.15

1.23

1.67

1.86

1.821.81

1.86

1.89

1.62

1.38

1.17

1.19

1.13


15/22

1.06

1.04

1.04

1.00

0.97

1.03

0.980.94

0.97

1.01

0.99

0.97

0.92

0.88

0.90

0.92

0.96

1.02

1.01


16/22

Mean 0.77 Mean 1.22

Standard Error 1.51 Standard Error 1.23

Median 3.25 Median 1.39

Mode #N/A Mode #N/AStandard Deviation 11.59 Standard Deviation 9.42

Sample Variance 134.31 Sample Variance 88.68

Kurtosis 2.40 Kurtosis 2.05

Skewness -1.29 Skewness -0.08

Range 62.11 Range 58.72

Minimum -39.79 Minimum -26.36

Maximum 22.32 Maximum 32.36

Sum 45.15 Sum 72.25

Count 59 Count 59

Year Interest Paid Total Debt Rates

2007 29.90 447.70 6.68

2008 43.50 738.90 5.89

2009 72.90 819.90 8.89

2010 43.10 594.10 7.25

2011 39.50 564.00 7.00

Avg Kd 7.14

Value Cost

Common Equity 2,089.90 3.97

Debt 564.00 7.00

Prefered Stock 0 0

Total 2,653.90 4.10

Cost of Debt

Weighted Average Cost of Capital (WACC)

Cadila Healthcare Stock Price (m) BSE 200 Index (n)

Descriptive Statistics


17/22

Rm -1.78

Rf* 8.50 Cov(Rn,Rm) 39.04 *Hamda's Equati

* Return on Fixed Deposits m2 88.68

value 0.44 D/E

Tax Rate 35% u

Ke 3.97

Calculation of Market Return Calculation of Beta Unlever

Cost of Equity (CAPM)

Ke = Rf value (Rm-Rf)

value = Cov(Rn,Rm)/m2

= u *1


18/22

n

0.44

0.27

0.37

ed Beta

(1-T)D/E+


19/22

Debt/Asset D/E Kd(1-T)

Ke = Rf +

(Rm-Rf)

WACC = (D/A)Kd +

(1 - D/A) Ke

0.01 0.01 0.38 3.00 4.62 4.61

0.02 0.02 0.38 3.01 4.60 4.57

0.03 0.03 0.38 3.02 4.57 4.52

0.04 0.04 0.38 3.03 4.54 4.48

0.05 0.05 0.39 3.05 4.52 4.440.06 0.06 0.39 3.06 4.49 4.40

0.07 0.08 0.39 3.07 4.46 4.36

0.08 0.09 0.40 3.08 4.43 4.32

0.09 0.10 0.40 3.09 4.40 4.28

0.10 0.11 0.40 3.10 4.37 4.24

0.11 0.12 0.40 3.12 4.34 4.20

0.12 0.14 0.41 3.13 4.31 4.17

0.13 0.15 0.41 3.14 4.27 4.13

0.14 0.16 0.41 3.15 4.24 4.09

0.15 0.18 0.42 3.16 4.21 4.05

0.16 0.19 0.42 3.18 4.17 4.01

0.17 0.20 0.42 3.19 4.14 3.97

0.18 0.22 0.43 3.20 4.10 3.94

0.19 0.23 0.43 3.21 4.06 3.90

0.20 0.25 0.44 3.22 4.02 3.86

0.21 0.27 0.44 3.24 3.98 3.83

0.22 0.28 0.44 3.25 3.94 3.79

0.23 0.30 0.45 3.26 3.90 3.75

0.24 0.32 0.45 3.27 3.86 3.72

0.25 0.33 0.46 3.29 3.81 3.68

0.26 0.35 0.46 3.30 3.77 3.650.27 0.37 0.46 3.31 3.72 3.61

0.28 0.39 0.47 3.32 3.67 3.58

0.29 0.41 0.47 3.34 3.63 3.54

0.30 0.43 0.48 3.35 3.58 3.51

0.31 0.45 0.48 3.36 3.52 3.47

0.32 0.47 0.49 3.37 3.47 3.44

0.33 0.49 0.49 3.39 3.41 3.41

0.34 0.52 0.50 3.40 3.36 3.37

0.35 0.54 0.51 3.41 3.30 3.34

0.36 0.56 0.51 3.43 3.24 3.31

0.37 0.59 0.52 3.44 3.18 3.27

0.38 0.61 0.52 3.45 3.11 3.24

0.39 0.64 0.53 3.47 3.05 3.21

0.40 0.67 0.54 3.48 2.98 3.18

0.41 0.69 0.54 3.49 2.91 3.15

0.42 0.72 0.55 3.50 2.84 3.12

0.43 0.75 0.56 3.52 2.76 3.09

0.44 0.79 0.57 3.53 2.68 3.06


20/22

0.45 0.82 0.57 3.54 2.60 3.02

0.46 0.85 0.58 3.56 2.52 3.00

0.47 0.89 0.59 3.57 2.43 2.97

0.48 0.92 0.60 3.59 2.34 2.94

0.49 0.96 0.61 3.60 2.24 2.91

0.50 1.00 0.62 3.67 2.14 2.91

0.51 1.04 0.63 3.74 2.04 2.910.52 1.08 0.64 3.82 1.94 2.92

0.53 1.13 0.65 3.90 1.82 2.92

0.54 1.17 0.66 3.97 1.71 2.93

0.55 1.22 0.67 4.05 1.59 2.94

0.56 1.27 0.68 4.13 1.46 2.96

0.57 1.33 0.70 4.22 1.33 2.98

0.58 1.38 0.71 4.30 1.19 2.99

0.59 1.44 0.72 4.39 1.05 3.02

0.60 1.50 0.74 4.47 0.89 3.04

0.61 1.56 0.76 4.56 0.73 3.07

0.62 1.63 0.77 4.66 0.56 3.10

0.63 1.70 0.79 4.75 0.39 3.13

0.64 1.78 0.81 4.84 0.20 3.17

0.65 1.86 0.83 4.94 0.00 3.21

0.66 1.94 0.85 5.04 -0.21 3.25

0.67 2.03 0.87 5.14 -0.44 3.30

0.68 2.13 0.89 5.24 -0.67 3.35

0.69 2.23 0.92 5.35 -0.92 3.40

0.70 2.33 0.94 5.45 -1.19 3.46

0.71 2.45 0.97 5.56 -1.48 3.52

0.72 2.57 1.00 5.68 -1.79 3.590.73 2.70 1.03 5.79 -2.12 3.65

0.74 2.85 1.07 5.90 -2.48 3.73

0.75 3.00 1.11 6.02 -2.86 3.80

0.76 3.17 1.15 6.14 -3.28 3.88

0.77 3.35 1.19 6.27 -3.73 3.97

0.78 3.55 1.24 6.39 -4.23 4.05

0.79 3.76 1.29 6.52 -4.77 4.15

0.80 4.00 1.35 6.65 -5.37 4.25

0.81 4.26 1.41 6.78 -6.03 4.35

0.82 4.56 1.48 6.92 -6.76 4.46

0.83 4.88 1.56 7.06 -7.58 4.57

0.84 5.25 1.65 7.20 -8.50 4.69

0.85 5.67 1.75 7.34 -9.54 4.81

0.86 6.14 1.87 7.49 -10.73 4.94

0.87 6.69 2.00 7.64 -12.11 5.07

0.88 7.33 2.16 7.79 -13.71 5.21

0.89 8.09 2.34 7.95 -15.61 5.36

0.90 9.00 2.57 8.11 -17.89 5.51

0.91 10.11 2.84 8.27 -20.67 5.66


21/22

0.92 11.50 3.17 8.43 -24.14 5.83

0.93 13.29 3.61 8.60 -28.62 6.00

0.94 15.67 4.19 8.77 -34.58 6.17

0.95 19.00 5.00 8.95 -42.92 6.36

0.96 24.00 6.22 9.13 -55.44 6.55

0.97 32.33 8.25 9.31 -76.31 6.74

0.98 49.00 12.31 9.50 -118.03 6.950.99 99.00 24.48 9.69 -243.22 7.16


22/22

Debt/Asset 0.49 0.5 0.51

WACC (min) 2.91 2.91 2.91

Assumption: Kd increases slowly till D/E ratio is 0.5 and increases rapidly after that.

Conclusion: We find optimal capital structure to be in a range from 0.49 to 0.51 Debt/Asset.

Optimal Capital Structure

Financial Analysis of Cadilla Healthcare Ltd.

Documents

Transcript of Financial Analysis of Cadilla Healthcare Ltd.