Lupin Analysis

8/17/2019 Lupin Analysis

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The following were the sources of funds raised in the year 2015-2015:

Parameter

Sources

Working Capital from Operations

!uity "hare Capital

#eser$es and "urplus

"ecured %oans

&nsecured loans

Total "ources of 'unds

'or the year 201(-2015

)et Worth

*dditional Capital

The reser$es and "urplus is + ,,,1.,/. it can use retained earnings to

3lease see the worksheet 4W*CC Calculation for the calculation

The growth rate per di$idend growth rate theory is 226.

*ll calculations in worksheet 4W*CC Calculation

Lupin’s average long term debt to equity ratio over the last 5 financial years has been

1. Which source of funding has the company 8een using to raise funds

2.

f the company wants to raise additional 50 6 of the net worth for e

/. s the company growing9 What is the growth rate of the company9

•

#ate of capital is ; than cost of capital signifying tha• #eturn on e!uity is ; cost of capital signifying lupin

• %upin has also 8een maintaining a $ery good de8t to

1. f a lender is willing to pro$ide loan at 12.56 should the company accept it or

1.

s the company paying di$idend regularly in the past ten years9


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% Cr.&=

2(>1.,5

,>.>

,,,1.,/

0

1>.1(

11(,2.2

>02.(

(51/.,

sion e$en if it pays out the nal di$idend of //1 crs as mentioned in the s

indicates that the Company is operating with a very low level of debt and is well placed to

MAR'15

source of funding should it choose9

well

wer the interest rate9

.


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heduled.

meet its obligations. In this scenario with a very good trac record it should negotiate to lower the i


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nterest rates! since it can meet its obligation using other sources of funds as well


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Fund

Parameter

Sources

Working Capital from Operations

!uity "hare Capital

#eser$es and "urplus"ecured %oans

&nsecured loans

Total "ources of 'unds

Q:3

O$erall growth rate of di$idend

*$erage growth rate last 10 years

cost of e!uity using di$idend growth rate using where ?3 @ 15,5.10

3"

#O

#etention #atioArowth #ate

cost of e!uity using internal growth rate

Be8t

!uity

6 of de8t in portfolio

6 of e!uity in portfolio

cost of de8t source of information is lupin annual report and http:DDwww.sanasecurities.comDlu

pected cost of e!uity at risk free rate of ,6 and rate of return 156

*$erage cost of e!uity

#ate of capital employed

Cost of capital

#ate of capital is ; than cost of capital signifying that %upin is doing well

#eturn on e!uity is ; cost of capital signifying lupin is doing well

%upin has also 8een maintaining a $ery good de8t to e!uity ratio


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% Cr.&=

2(>1.,5

,>.>

,,,1.,/0

1>.1(

11(,2.2

12.200,5(

0.2200,5(

0.225,>((1

5/.(

2F.5F6

,5.>622.,/05F,1>/2//006

0.225F>5>(F

1>>.>

>02.(

1100.1

0.1>,11>>(

0.,2012,,00F

0.022(051,

0.1/(

0.1,15,(>/

0.2178791047

0.1,>251F,F/

MAR'15


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)et 3rot

Bepreciation

Working capital from operations


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2,324.22

'().(*

2(>1.,5

Bi$idend 1./ 1./ 1 2 2.51Gg 0 1 0.F>2/1 2 1.25

3rota8ility and Arowth #atios 2015 201(

Aross 3rot ?argin /F.((6 /.2/6

)et 3rot ?argin 2(.5,6

3" 5/.( 51.>/

3" Arowth 2.,6

)et 3rot Arowth /.056Operating 3rot Arowth F./F6

Bi$idend per share .51,F>/

#eturn on e!uity 2F.5F6

#eturn on *sset 21.,6

Bi$idend payout ratio net protE 1(.0F6

#etention ratio ,5.>(6

Arowth #ate 22.,26

Cost of Be8t F.506

ta adHusted cost of Be8t

cost of e!uity risk free rate of return G Ieta J ?arket rate of return - risk free rate of ret


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2010 2011 2012 201/

2. / /.2 (1.0, 1.1111111111 1.0FFFF 1.25

urnE


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201( 2015

F .51.5 1.25


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Balance Sheet - Source Moneyco

Parameter % Cr.&=

EQUITY AND LIABILITIES

+hare Capital 8#.#

+hare ,arrants - utstandings

"otal /eserves 8!88'.8*

+hareholders 1unds #!02).)3

Lon!Term Borro"#n$ 0

+ecured Loans 0

4nsecured Loans '#.'3

eferred "a6 7ssets Liabilities '8#.22

ther Long "erm Liabilities 0.28

Long "erm "rade 9ayables 8.22

Long "erm 9rovisions '0*.'2

Tota% Non!&rrent L#a(#%#t#e$ *'#.#8

&rrent L#a(#%#t#e$

"rade 9ayables '!032.03

ther Current Liabilities '0'.38

+hort "erm :orrowings 20.#5

+hort "erm 9rovisions 3#5.52

Tota% &rrent L#a(#%#t#e$ 1,)5*.**

Tota% L#a(#%#t#e$ ''!00).)'

ASSETS

Non!&rrent A$$et$ 0

;ross :loc *!*'0.35

Less< 7ccumulated epreciation '!2)3.85

Less< Impairment of 7ssets 0

=et :loc 2!0*5.(0

Lease 7d>ustment 7c 0

MAR'15


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Capital ,or in 9rogress 3(5.8(

Intangible assets under development 0

9re?operative @6penses pending 23.'

7ssets in transit 0

Non &rrent In+e$tment$ '!)#0.2(

Long "erm Loans - 7dvances 2*#.35

ther =on Current 7ssets 0.*2

Tota% Non!&rrent A$$et$ 3!555.5#

&rrent A$$et$ Loan$ A-+ane$

Currents Investments '!(5*.#)

Inventories '!)*#.5'

+undry ebtors 2!5'5.2'

Cash and :an 5#.*

ther Current 7ssets 20#.(8

+hort "erm Loans and 7dvances 2)3.35

Tota% &rrent A$$et$ ),452.12

=et Current 7ssets %Including Current Investments& 3!)#2.'*

"otal Current 7ssets @6cluding Current Investments 3!)#8.'5

Aiscellaneous @6penses not written off 0

Tota% A$$et$ ''!00).)'

Contingent Liabilities *(2.3

"otal ebt 35.2'

:oo Balue %in &= '##.5#

7d>usted :oo Balue %in &= '##.5#

,oring Capital (>2.1/

=et ,orth >02.( 7dditional Capital (51/.,


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trol.com Proft and Loss- So

MAR'14 YoY

Parameter % Cr.&= $Change

;ross +ales

8#.(8 0.25$ Less


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238.8* 8).22$ @6traordinary Items

0 0.00$ 7d> to 9rofit 7fter "a6

'8.22 *2.2)$ 9rofit :alance :1

0 0.00$ 7ppropriations

#8#.05 8'.0'$ @quity ividend %$&

*'#.) ?25.'0$ -,0.25 @arnings 9er +hare %in &=

0 '00.00$ :oo Balue %in &=

*!)55.2( 2'.*'$

')3.(' 83).23$

'!*)2.23 2(.)($

2!85#.#2 ?'2.05$

'3(.28 ?5#.3($

238.'* ?'5.50$

232.52 '*.')$

5!03*.)0 2).#2$

*!582.*8 **.))$

3!8(#.0# ?'.3($

0 0.00$

8!)#8.#( 25.'0$

*5'.)8 *.02$

'33.3) ?(8.)'$

'55.0( 28.)2$

'55.0( 28.)2$

/5,2./,


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rce Moneycontrol.com Cashow- Source Mo

MAR'15 MAR'14 &ane 6

Parameter

MAR'15

% Cr.&= % Cr.&= % Cr.&=

#!835.#8 #!0'#.8( *.1)6 =et 9rofit :efore "a6es *!2'2.'#

0 0 7.776 *0).3)

0 0 7.776 '*0.23

#*.5' 80.38 1).1*6 2!85'.52

#!)52.3) 8!#*#.*8 *.176 ?'!')).##

?22'.'2

?'5).08 ?5#.82 !1)2.5*6 0

2!#03.'8 2!)0'.#' 8.4*6 '!352.3'

**(.*# *0#.*( 9.846 255.*'

'!052.55 833.*2 24.))6 0

'!022.38 8)8.(3 1).386 0

522.(# 5##.*# !12.976 0

5#2.3( (2(.53 !5.446 0

'05.55 '2(.)' !1).876 '!)0).)2

0 0 7.776

(!*)#.22 (!02).05 5.946

3,383.25 2,*12.33 15.936

'80.(* 3'5.*8 !5).516

3,553.99 3,328.81 ).976

3.# 20.## !8).))6

*!538.#8 *!*0(.)2 8.336

**(.)# '().(* 177.*16

*!2'2.'# *!'*#.0# 2.336

0 0 7.776

3,212.1* 3,13*.7* 2.336

8'3.83 8'3.8) 7.776

2,3*8.35 2,324.22 3.156

7d>ustments for @6penses -9rovisions

7d>ustments for Liabilities - 7ssets

Cash 1low from operatingactivities

Cash 1low from investingactivities

Cash 1low from financingactivities

@ffect of e6change fluctuationon translation reserve

=et increase%decrease& in cashand cash equivalents

pening Cash - Cash@quivalents

as as qu va en on 7malgamation "ae over Aer er Cash - Cash @quivalent of+ubsidiaries under liquidations

rans a on a us men onreserves op cash balalces frgn

@ffect of 1oreign @6change1luctuations

Closing Cash - Cash@quivalent


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0 0 7.776

0 0 7.776

3!((3.(( 2!85*.#2 )3.456

)!0(2.0' 5!')8.'3 3).396

*)5 *00 25.776

5*.** 5'.8* 2.9*6

'##.5# '55.0( 29.826


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eycontrol.com

MAR'14 &ane 6 D#+#-en- :#$tor; !L#

% Cr.&= - D#+#-en- T;e

*!'*#.0# 2.336 '*0520'5 '30)20'5 1inal

?( 5224.576 )520'3 2'0)20'3 1inal

?#83.)# 113.236 *220'3 '*0220'3 Interim

'!528.'* 9).)76 8520'* 2#0)20'* 1inal

?33(.5' !1)3.926 '0520'2 '*0)20'2 1inal

?833.3) 83.926 '2520'' '80)20'' 1inal

0 7.776 5520'0 '#0)20'0 1inal

2*).'5 512.446 '*05200# 200)200# 1inal

'8.'( 1375.9*6 '3052008 '')2008 1inal

0 7.776 #5200) '0)200) 1inal

0 7.776 ')05200( ))200( 1inal

0 7.776 20052005 '50)2005 1inal

0 7.776

255.*' 5)9.996

Annonement Date


18/20


19/20


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Lupin Analysis

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