Britannia Ind

Financial Model of Britannia Industries Ltd.

Table of contents:-
Dashboard
Income Statement
Balance sheet
Cash Flow Statement
Ratios
dcf
Relative Valuation
Forecasted Revenue
CAPEX
Working capital schedule
WACC
Beta
Britannia Industries Ltd.

About Britannia Industries Ltd.

nia Industries Ltd.
 STATEMENT

Particulars
[Link] from operations
Sale of goods / Income from operations
Other operating revenues
Total revenue from operations
[Link] income
[Link] Income (I+II)
[Link]
Cost of materials consumed
Excise duty
Purchase of stock-in-trade
Changes in inventories of finished goods, stock-in-trade and work-in-progress
Employee benefits expense
Finance costs
Depreciation and amortisation expense
Other expenses
Total expense
[Link] before share of profits / (loss) of associates (III-IV)
Share of (loss) / profit in associates
[Link] of (loss) / profit of associates (net of income tax)
Exceptional Items
[Link] before Tax
[Link] Expense:
(i) Current tax
(ii) Deferred tax
Total tax expense
[Link] for the year (VII+VIII)
[Link] comprehensive income
Items that will not be reclassified subsequently to statement of profit or loss:
(i)Remeasurements of the net defined benefit liability / asset
(ii)Income tax relating to items not to be reclassified subsequently to statement of profit or loss:
Items that will be reclassified subsequently to statement of profit or loss
(i)Foreign currency translation reserve
Other comprehensive income, net of tax
Total Comprehensive Income for the year(IX+X)
Profit attributable to:
Owners of the Company
Non-controlling interests
Profit for the year
Other comprehensive income attributable to:
Owners of the Company
Non-controlling interests
Other comprehensive income for the year
Total comprehensive income attributable to:
Owners of the Company
Non-controlling interests
Total comprehensive income for the year
Earnings per share (nominal value of `2 each)
Basic [in `]
Diluted [in `]
Weighted average number of equity shares used in computing earnings per share:
Basic
Diluted
 Britannia Industrie
STATEMENT OF PROFIT AND LOSS
Actual Figures(in crores) Estimated Figures
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

9,905.63 10,973.46 11,443.99 12,883.04 13,944.67 14,795.29 15,801.37

84.47 81.21 155.56 253.1 191.59 203.28 217.10
9,990.10 11,054.67 11,599.55 13,136.14 14,136.26 14,998.57 16,018.47
166.37 206.45 279.4 312.87 222.83 236.42 252.50
10,156.47 11,261.12 11,878.95 13,449.01 14,359.09 15,234.99 16,270.97

4,906.08 5,513.01 5,901.16 6,502.33 7,473.97 7,578.03 8,093.33

76.11
1,194.72 1,103.63 973.74 1,160.89 1,361.59 1,449.39 1,547.95
6.3 -55.18 52.57 -37.12 -75.26 -27.19 -29.04
401.6 441.82 486.69 527.38 542.26 600.25 641.06
7.59 9.09 76.9 110.9 144.29 87.24 93.17
142.07 161.88 184.81 197.85 200.54 203.40 251.46
1,903.64 2,317.97 2,342.21 2,473.37 2,632.19 2,918.84 3,117.33
8,638.11 9,492.22 10,018.08 10,935.60 12,279.58 12,809.96 13,715.26
1,518.36 1,768.90 1,860.87 2,513.41 2,079.51 2,425.04 2,555.72
-0.18 -0.97 0.44 0.81 -0.2
1,518.18 1,767.93 1,861.31 2,514.22 2,079.31 2,425.04 2,555.72
17.01 0.61 0.98
1,518.18 1,767.93 1,844.30 2,513.61 2,078.33 2,425.04 2,555.72

513.68 599.78 447.69 657.12 612.24 847.31 892.97

0.54 12.69 3.01 5.9 -49.89
514.22 612.47 450.7 663.02 562.4 847.31 892.97
1,003.96 1,155.46 1,393.60 1,850.59 1,515.98 1,577.73 1,662.75

-1.06 -4.09 -6.5 3.5 0.17

0.36 1.43 1.57 -0.92 -0.05
-
0.49 6.5 10.05 -4.08 6.17
-0.21 3.84 5.12 -1.5 6.29
1,003.75 1,159.30 1,398.72 1,849.09 1,522.27

1,004.23 1,159.12 1,402.63 1,863.90 1,524.82

-0.27 -3.66 -9.03 -13.31 -8.84
1,003.96 1,155.46 1,393.60 1,850.59 1,515.98

-0.21 3.84 5.12 -1.5 6.29

 -0.21 3.84 5.12 -1.5 6.29

1,004.02 1,162.96 1,407.75 1,862.40 1,531.11

-0.27 -3.66 -9.03 -13.31 -8.84
1,003.75 1,159.30 1,398.72 1,849.09 1,522.27

83.65 48.25 58.35 77.43 63.31

83.61 48.21 58.34 77.4 63.31

120,046,477 240,246,514 240,379,360 240,716,747 240,868,296

120,107,138 240,427,551 240,438,381 240,800,190 240,868,296
nia Industries Ltd.
Common Size Statem
Estimated Figures(in crores) Figures as percentage of Total revenue
Mar-25 Mar-26 Mar-27 Actual's Average Mar-18 Mar-19

16,875.87 17,972.80 19,087.11 11830.16 99.15% 99.27%

231.86 246.93 262.24 153.19 0.85% 0.73%
17,107.73 18,219.73 19,349.36 12485.88 100.00% 100.00%
269.67 287.20 305.00 237.58 1.67% 1.87%
17,377.40 18,506.93 19,654.36 12723.27 101.67% 101.87%

8,643.68 9,205.52 9,776.26 6059.31 49.11% 49.87%

76.11 0.76% 0.00%
1,653.21 1,760.66 1,869.82 1158.91 11.96% 9.98%
-31.01 -33.03 -35.07 -21.74 0.06% -0.50%
684.65 729.16 774.36 479.95 4.02% 4.00%
99.50 105.97 112.54 69.75 0.08% 0.08%
302.78 357.44 415.49 177.43 1.42% 1.46%
3,329.30 3,545.71 3,765.54 2333.88 19.06% 20.97%
14,682.12 15,671.44 16,678.95 10272.72 86.47% 85.87%
2,695.28 2,835.50 2,975.41 1948.21 15.20% 16.00%
-0.02 0.00% -0.01%
2,695.28 2,835.50 2,975.41 1948.19 15.20% 15.99%
6.20 0.00% 0.00%
2,695.28 2,835.50 2,975.41 1944.47 15.20% 15.99%

941.73 990.72 1,039.61 566.10 5.14% 5.43%

-5.55 0.01% 0.11%
941.73 990.72 1,039.61 560.55 5.15% 5.54%
1,753.55 1,844.77 1,935.80 1,383.92 10.05% 10.45%
 Common Size Statement YOY Growth Rate CAGR
percentage of Total revenue from operations
Mar-20 Mar-21 Mar-22 Mar-19 Mar-20 Mar-21 Mar-22 Growth Rate

98.66% 98.07% 98.64%

1.34% 1.93% 1.36%
100.00% 100.00% 100.00% 10.66% 4.93% 13.25% 7.61% 7.19%
2.41% 2.38% 1.58%
102.41% 102.38% 101.58% 10.88% 5.49% 13.22% 6.77% 7.17%

50.87% 49.50% 52.87% 12.37% 7.04% 10.19% 14.94% 8.78%

0.00% 0.00% 0.00%
8.39% 8.84% 9.63%
0.45% -0.28% -0.53%
4.20% 4.01% 3.84%
0.66% 0.84% 1.02%
1.59% 1.51% 1.42%
20.19% 18.83% 18.62%
86.37% 83.25% 86.87% 9.89% 5.54% 9.16% 12.29% 7.29%
16.04% 19.13% 14.71%
0.00% 0.01% 0.00%
16.05% 19.14% 14.71%
0.15% 0.00% 0.01%
15.90% 19.14% 14.70% 16.45% 4.32% 36.29% -17.32% 6.48%

3.86% 5.00% 4.33%

0.03% 0.04% -0.35%
3.89% 5.05% 3.98% 19.11% -26.41% 47.11% -15.18% 1.81%
12.01% 14.09% 10.72% 15.09% 20.61% 32.79% -18.08% 8.59%
 Britannia Industries Ltd.
BALANCE SHEET Common Size Statement YOY Growth Rate CAGR
Actual Figures(in crores) Figures as percentage of Total revenue from operations
Particulars Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-19 Mar-20 Mar-21 Mar-22 Growth Rate
[Link]
[Link]-current assets
(a)Property, plant and equipment 1,194.44 1,535.58 1,716.37 1,634.30 1,584.05 23.02% 24.60% 21.89% 20.41% 21.08% 28.56% 11.77% -4.78% -3.07% 5.81%
(b)Capital work-in-progress 202.82 101.24 39.55 116.52 535.68 3.91% 1.62% 0.50% 1.45% 7.13%
(c)Investment property 14.99 14.73 14.47 14.21 13.95 0.29% 0.24% 0.18% 0.18% 0.19%
(d)Goodwill 128.2 130.37 138.97 135.9 139.61 2.47% 2.09% 1.77% 1.70% 1.86%
(e)Other intangible assets 7.97 7.62 8.37 8.54 15.6 0.15% 0.12% 0.11% 0.11% 0.21%
(f)Investment in associates 2.01 1.04 1.48 2.29 2.09 0.04% 0.02% 0.02% 0.03% 0.03%
(g)Financial assets
(i)Investments 220.47 725.36 1,882.98 1,385.37 926.55 4.25% 11.62% 24.01% 17.30% 12.33% 229.01% 159.59% -26.43% -33.12% 33.26%
(ii)Loans 134.24 19.02 202.95 58 100 2.59% 0.30% 2.59% 0.72% 1.33% -85.83% 967.03% -71.42% 72.41% -5.72%
(iii)Others financial assets - 28.67 31.33 46.71 31.8 0.46% 0.40% 0.58% 0.42%
(h)Deferred tax assets, (net) 22.57 13.75 19.56 9.66 51.67 0.44% 0.22% 0.25% 0.12% 0.69%
(i)Income-tax assets, (net) 22.32 37.02 68.77 71.84 44.93 0.43% 0.59% 0.88% 0.90% 0.60%
(j)Other non-current assets 86.61 101.08 42.46 105.98 99.18 1.67% 1.62% 0.54% 1.32% 1.32%
Total non-current assets 2,036.64 2,715.48 4,167.26 3,589.32 3,545.11 39.26% 43.50% 53.14% 44.82% 47.17% 33.33% 53.46% -13.87% -1.23% 11.72%
[Link] assets
(a)Inventories 652.79 781.38 740.96 1091.49 1367.49 12.58% 12.52% 9.45% 13.63% 18.20% 19.70% -5.17% 47.31% 25.29% 15.94%
(b)Financial assets
(i)Investments 856.8 749.88 1,008.77 1,393.25 833.73 16.52% 12.01% 12.86% 17.40% 11.09% -12.48% 34.52% 38.11% -40.16% -0.54%
(ii)Trade receivables 304.6 394.24 320.36 257.27 331.93 5.87% 6.32% 4.09% 3.21% 4.42% 29.43% -18.74% -19.69% 29.02% 1.73%
(iii)Cash and cash equivalents 129.91 60.32 81.23 142.74 117.99 2.50% 0.97% 1.04% 1.78% 1.57% -53.57% 34.67% 75.72% -17.34% -1.91%
(iv)Bank balances other than (iii) above 56.51 49.5 41.62 68.6 66.91 1.09% 0.79% 0.53% 0.86% 0.89%
(v)Loans & advances 844.34 1,203.92 1,110.11 941.5 698 16.28% 19.29% 14.16% 11.76% 9.29% 42.59% -7.79% -15.19% -25.86% -3.74%
(vi)Other financial assets 100.74 126.29 229.75 402.82 428.03 1.94% 2.02% 2.93% 5.03% 5.70%
(c)Other current assets 205.59 160.81 142.17 121.79 126.34 3.96% 2.58% 1.81% 1.52% 1.68%
Total current assets 3,151.28 3,526.34 3,674.97 4,419.46 3,970.42 60.74% 56.50% 46.86% 55.18% 52.83% 11.90% 4.21% 20.26% -10.16% 4.73%
Total assets 5,187.92 6,241.82 7,842.23 8,008.78 7,515.53 100.00% 100.00% 100.00% 100.00% 100.00% 20.31% 25.64% 2.12% -6.16% 7.69%
[Link] AND LIABILITIES
(i)Equity
(a)Equity share capital 24.01 24.03 24.05 24.09 24.09 0.46% 0.38% 0.31% 0.30% 0.32% 0.08% 0.08% 0.17% 0.00% 0.07%
(b)Other equity 3,382.22 4,229.22 4,378.78 3,523.57 2,534.01 65.19% 67.76% 55.84% 44.00% 33.72%
Equity attributable to equity holders of the parent 3,406.23 4,253.25 4,402.83 3,547.66 2,558.10 65.66% 68.14% 56.14% 44.30% 34.04%
(c)Non-controlling interests 13.14 32.68 35.65 36.34 27.5 0.25% 0.52% 0.45% 0.45% 0.37%
Total equity 3,419.37 4,285.93 4,438.48 3,584.00 2,585.60 65.91% 68.66% 56.60% 44.75% 34.40% 25.34% 3.56% -19.25% -27.86% -5.44%
(ii)Liabilities
[Link]-current liabilities
(a)Financial liabilities
(i)Borrowings 84.57 61.92 766.06 747.15 706.99 1.63% 0.99% 9.77% 9.33% 9.41% -26.78% 1137.18% -2.47% -5.38% 52.91%
(ii)Other financial liabilities 25.2 27.24 46.54 44.87 52.64 0.49% 0.44% 0.59% 0.56% 0.70%
(iii)Lease liabilities 15.17 13.76 0.19% 0.18%
(b)Deferred tax liabilities(net) 1.94 3.87 12.69 8.69 0.81 0.04% 0.06% 0.16% 0.11% 0.01%
(c)Provisions 8.87 11.45 13.16 0.17% 0.18% 0.17%
Total non-current liabilities 120.58 104.48 838.45 815.88 774.20 2.32% 1.67% 10.69% 10.19% 10.30% -13.35% 702.50% -2.69% -5.11% 45.05%
[Link] liabilities
(a)Financial liabilities
(i)Borrowings 93.65 76.10 747.99 1357.15 1758.55 1.81% 1.22% 9.54% 16.95% 23.40% -18.74% 882.90% 81.44% 29.58% 79.78%
(ii)Trade payables 995.45 1141.22 1116.28 1313.19 1285.22 19.19% 18.28% 14.23% 16.40% 17.10% 14.64% -2.19% 17.64% -2.13% 5.24%
(iii)Other financial liabilities 234.77 269.2 311.91 332.43 423.69 4.53% 4.31% 3.98% 4.15% 5.64%
(iv)Lease liabilities 2.04 1.9 0.03% 0.03%
(b)Other current liabilities 88.89 95.22 150.08 140.54 126.71 1.71% 1.53% 1.91% 1.75% 1.69%
(c)Government grant
(d)Provisions 178.97 196.51 191.26 387.47 485.11 3.45% 3.15% 2.44% 4.84% 6.45%
(e)Current tax liabilities, (net) 56.24 73.16 47.78 76.08 74.55 1.08% 1.17% 0.61% 0.95% 0.99%
Total current liabilities 1,647.97 1,851.41 2,565.30 3,608.90 4,155.73 31.77% 29.66% 32.71% 45.06% 55.30% 12.34% 38.56% 40.68% 15.15% 20.32%
Total liabilities 1,768.55 1,955.89 3,403.75 4,424.78 4,929.93 34.09% 31.34% 43.40% 55.25% 65.60% 10.59% 74.03% 30.00% 11.42% 22.76%
Total equity and liabilities 5,187.92 6,241.82 7,842.23 8,008.78 7,515.53 100.00% 100.00% 100.00% 100.00% 100.00% 20.31% 25.64% 2.12% -6.16% 7.69%

Check 0.00 0.00 0.00 0.00 0.00

 Britannia Industries Ltd.
STATEMENT OF CASH FLOW

Particulars Mar-18 Mar-19 Mar-20

[Link] flows from operating activities
Profit before tax 1,518.18 1,767.93 1,844.30
Adjustments for :
Depreciation and amortisation expense 142.07 161.88 184.81
Share based payment expense 8.64 16.12 21.58
Net gain on financial asset measured at fair value through Statement of -55.24 -63.85 -89.88
Profit and Loss
(Profit) / loss on disposal of property, plant and equipment -0.43 -0.97 -0.11
Interest income -104.03 -136.77 -176.77
Dividend income
Finance costs 7.59 9.09 76.9
Changes in:
Inventories 8.76 -127.21 42.99
Trade receivables -125.22 -86.67 78.85
Loans, other financial assets and other assets 82.15 10.9 -23.66
Accounts payables, other financial laibilities, other liabilities and provisions 262.58 200.49 29.21
Cash generated from operating activities 1,745.05 1,750.94 1,988.22
Income tax paid , net of refund -496.46 -596.13 -503.25
Net cash from operating activities 1,248.59 1,154.81 1,484.97
[Link] flow from investing activities
Acquisition of property, plant and equipment -422.93 -401.21 -244.17
Investment in associate
Proceeds from sale of property, plant and equipment 1.76 1.82 0.73
(Purchase) / Sale of investments, net -537.37 -334.12 -1,326.63
Inter-corporate deposits placed -767.22 -874.3 -1,293.41
Inter-corporate deposits redeemed 660.39 635.4 1,204.24
Interest received 109.11 116.88 127.62
Dividend received
Changes in other bank balances
Net cash used/generated in investing activities -956.26 -855.53 -1531.62
[Link] flow from financing activities
Proceeds from share allotment 15.06 29.79 23.97
Interest paid -7.48 -9.38 -35.54
Proceeds from / (repayment) of borrowings 67.25 -41.91 640.72
Contribution from Non-controlling interests 10.8 23.2 12
Dividends paid (including corporate dividend tax and bonus debentures) -317.38 -354.38 -432.53
Principal payment of lease liabilities -0.45
Interest paid on lease liabilities
Issue of bonus debentures 720.95
payment of bonus debentures(including dividend distribution tax) -869.15
net proceeds from other working capital borrowing
Proceeds from issue of commercial paper
repayment of commercial paper/term loan
contribution from non controlling interest
Net cash used/generated in financing activities -231.75 -352.68 59.97
Net change in cash and cash equivalents 60.58 -53.40 13.32
Effect of exchange rate changes on cash and cash equivalents 3.31 5.69
Cash and cash equivalents at the beginning of the year 47.34 107.84 58.72
Cash and cash equivalents at the end of year 107.92 57.75 77.73
Cash and cash equivalents at the end of the year 129.91 60.32 81.23
Book overdraft -13.06 -1.6
Bank overdraft -9.01 -5.97
Effect of exchange rate changes 0.26
108.1 58.72 75.26
 Fig(In crores)
Mar-21 Mar-22

2,513.61 2,078.33

197.85 200.54
18.94 4.78
-65.47 -28.91

-0.33 -0.95
-234.66 -184.6

110.9 144.29

-351.44 -274.76
61.4 -72.21
-143.62 -32.41
401.96 52.13
2,509.14 1,886.23
-632.81 -586.91
1,876.33 1,299.32

-240.51 -550.18

2.17 3.16
178.6 1,047.97
-1,202.50 -740
1,491.41 941.5
233.43 206.75

-26.98 1.69
435.62 910.89

103.15
-101.3 -118.61

-2823.75 -2484.88
-2.55 -1.55
-1.04 -0.65
698.52
 102.31 645.35
1,431.08 -
-964.4 -984.02
14
-2,242.50 -2,245.84
69.45 -35.63
-2.44 3.3
75.26 141.45
142.27 109.12
142.74 117.99

-1.29 -8.67

141.45 109.32
 BRITANNIA
Liquidity Ratios
Ratio Formula Mar-18 Mar-19 Mar-20
Current Asset
Current Ratio
Current Liability 1.91 1.90 1.43

Quick Assets
Quick Ratio
Current Liability 1.52 1.48 1.14
Absolute Liquid Assets
Absolute Liquidity Ratio
Current Liability 0.11 0.06 0.05

Solvency Ratios
Ratio Formula Mar-18 Mar-19 Mar-20
Long term debt
Debt to Equity Ratio
Shareholder's Fund 0.03 0.02 0.18

Total Outside Liabilities

Debt to Total Asset Ratio
Total Assets 0.02 0.01 0.10

EBIT
Interest Coverage Ratio
Interest 201.02 195.49 24.98

Proprietory Fund
Proprietory Ratio
Total Assets 0.66 0.68 0.56

Return Ratios
Ratio Formula Mar-18 Mar-19 Mar-20

EBIT
Return on Capital Employed
Capital Employed 43.1% 40.5% 36.4%

PAT
Return on Equity
Average shareholder"s fund 27.6% 31.3% 39.8%

Market Price per share

Price to Earning Ratio(P/E)
Earning per share 39.25 68.05 56.27

Profit available for equity shareholders

Earning Per Share(EPS)
No. of equity Shareholders 41.81 48.08 57.95

PAT+Interest
Return on Assets
Average Total Assets 14.5% 15.7% 18.9%
BRITANNIA INDUSTRIES LTD.
Profitability Ratio
Mar-21 Mar-22 Ratio Formula Mar-18 Mar-19
Net Profit
Net Profit Margin
1.22 0.96 Sales 10.14% 10.53%

Operating Profit
operating profit margin
0.92 0.63 Sales 8.38% 8.57%

0.06 0.04

Activity Ratio
Mar-21 Mar-22 Ratio Formula Mar-18 Mar-19
Sales
Total Asset Turnover Ratio
0.22 0.30 Total Assets 1.91 1.76

salestrade
average
Debtor Turnover Ratio
0.09 0.09 receivable 31.12 55.67

purchase
Creditor Turnover Ratio
23.67 15.40 average trade payable 1.05 1.93

COGS
Inventory Turnover Ratio
0.44 0.34 Average inventory 6.121142 16.79454

Mar-21 Mar-22

59.6% 66.2%

60.6% 59.3%

42.40 51.86

76.82 62.93

25.3% 22.1%
o
Mar-20 Mar-21 Mar-22

12.18% 14.36% 10.87%

9.06% 11.08% 8.24%

Mar-20 Mar-21 Mar-22

1.46 1.61 1.86

71.44 100.15 84.02

1.74 1.77 2.12

18.69863 13.97374 12.81223

 0 1 2 3 4
Free Cash Flow 2022 2023 2024 2025 2026

Revenue 14,136.26 14,998.57 16,018.47 17,107.73 18,219.73

Revenue Growth 7.6% 6.1% 6.8% 6.8% 6.5%

EBIT 2,222.62 2,512.28 2,648.89 2,794.79 2,941.47

Tax 29.46% 34.94% 34.94% 34.94% 34.94%
NOPAT 1,567.87 1,634.49 1,723.37 1,818.29 1,913.72
Add: Dep &Amort. 200.54 203.40 251.46 302.78 357.44
Less: CAPEX -553.34 -449.96 -480.55 -513.23 -546.59
Add/Less: Change in WC
(% debt free cash free wc) 568.03 -111.52 -101.99 -108.93 -111.20
FCFF 1,276.41 1,392.28 1,498.91 1,613.37
WACC 8.88% 8.88% 8.88% 8.88%
PV of FCFF 1,172.30 1,174.42 1,161.24 1,147.96
Terminal Value
PV of TV

Assumption
EBIT 15.7% 16.8% 16.5% 16.3% 16.1%
Dep &Amort 1.4% 1.4% 1.6% 1.8% 2.0%
CAPEX 3.9% 3.0% 3.0% 3.0% 3.0%
WC 4.0% -0.7% -0.6% -0.6% -0.6%

Enterprise Value Calculation

Sum of PV of FCFF 5,787.16
PV of TV 88,066.22
Enterprise Value 93,853.38

Contribution in EV from sumof PV of FCFF 6.17%

Contribution in EV from sumof PV of TV 93.83%

Equity Value Calculation 3,801.28

Debt 2,465.54 5.50%
Cash and Cash Eq. 184.90 6.00%
Net Debt 2,280.64 WACC 8.88%
Equity Value 91,572.74 7.00%
No. of Shares 24.09 9.07%
Per Share Value 3,801.28

Current Share Price 3,206.00

Undervalued
Buy
 5
2027

19,349.36
6.2%

3,087.95
34.94%
2,009.02
415.49
-580.48

-112.96
1,731.07
8.88%
1,131.24
134,761.99 0
88,066.22 0

16.0% Assumption for Terminal Value

2.1% Growth Rate
3.0% WACC
-0.6%

Sensitivity Analysis

Terminal Growth Rate

2% 3.00% Err:522 5.00% 6%
1514.077787 2080.2689 Err:522 10006.9445 -9809.74452
1343.012936 1757.81725 Err:522 5076.25175 #DIV/0!
Err:522 Err:522 Err:522 Err:522 #DIV/0!
1103.522144 1354.75268 Err:522 2610.90536 5123.21073
823.0435365 942.391731 Err:522 1357.0314 1766.94391
 NPV = OFC + TCF - ICO
NPV = PVCI - PVCO
PVCI = OCF+TCF
PVCO = ICO

ICO Initial Cash Outflow

OCF Operating Cash Flow

Year AP Sale VC Cont FC EBDT Dep EBT Tax

on for Terminal Value

7.5% search for india gdp
8.88%
 CI

EAT EATBD
 BRITANNIA
Market
Name of Company Number of shares Share price EPS
capitalisation
Nestle 9.64 17131.43 165164.12 61.68
ITC 1233.00 244.91 301974.03 12.22
Tata consumer product 92.16 771.19 71072.87 9.61

Britannia Industries Ltd. 24.09 3283.20 79092.288 63.31

Particulars Industry Value

Industry Multiple (EV/EBITDA) 8.50
BIL sales 14136.26
Implied EV 120158.21
Less: Debt 2465.54
Less: Non Controlling Interest (If Any) 27.5
Add: Cash and Cash Eq. 184.90
Implied Market Cap. 117850.07
Divided by No. of Shares 24.09
Implied Share Price 4892.07 Undervalued
Buy
BRITANNIA INDUSTRIES LTD.
Fig(in cr.) Benchmarkin
EBITDA Rev
Sales EBITDA P/E EV EV/SALES EV/EBITDA
margins Growth
14504.16 3323.59 277.74691958 164462.77 11.33901 49.48347 22.91% 7.61%
59745.56 21523.63 20.041734861 298101.37 4.989515 13.849958 36.03% 6.46%
7932.29 1322.62 80.248699272 69821.17 8.802145 52.790046 16.67% 12.76%

14136.26 2423.16 51.86 81372.93 5.76 33.58 17.14% 7.19%

Benchmarking Analysis
Sales Rating

14504.16 higher lower equal

59745.56 higher lower equal
7932.29 lower equal

14136.26 higher lower equal

 Britannia Industries Ltd.
Forecasted revenue on the basis of GDP

Years Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

gdp 2,702.93 2,831.55 2,667.69 3,177.92 3,534.74 3,893.67
Total Revene 9,990.10 11,054.67 11,599.55 13,136.14 14,136.26 14998.5719
11% 5% 13% 8%
growth rate of gdp 6.5 3.7 -6.6 8.7 6.8 6.1
Sales 9,905.63 10,973.46 11,443.99 12,883.04 13,944.67 14795.2949
growth rate of gdp 3.7 -6.6 8.7 6.8 6.1
Total Income 10,156.47 11,261.12 11,878.95 13,449.01 14,359.09 15234.9945
growth rate of gdp 3.7 -6.6 8.7 6.8 6.1
s Ltd.
asis of GDP
Fig.(In crores)
Mar-24 Mar-25 Mar-26 Mar-27
4,270.77 4,681.95 5,100.70 5,533.45
16018.4747 17107.731 18219.7335 19349.357

6.8 6.8 6.5 6.2

15801.3749 16875.8684 17972.7999 19087.1135
6.8 6.8 6.5 6.2
16270.9741 17377.4004 18506.9314 19654.3611
6.8 6.8 6.5 6.2
 Statement showing computation of estimated CAPEX
Particulars Mar-18 Mar-19 Mar-20 Mar-21
Acquisition of property, plant and equipment -422.93 -401.21 -244.17 -240.51
Investment in associate
Proceeds from sale of property, plant and equipment 1.76 1.82 0.73 2.17

CAPEX 424.69 403.03 244.90 242.68

Sales 9,990.10 11,054.67 11,599.55 13,136.14

CAPex As a % of Sales 4.25% 3.65% 2.11% 1.85%

Statement showing computation of depreciation transferrable to P&L A/C

Life 10
Latest PP&E 1,584.05
Years CAPEX 2023 2024
2023 449.96 45.00 45.00
2024 480.55 - 48.06
2025 513.23 - -
2026 546.59 - -
2027 580.48 - -
Total Depreciation on CAPEX 45.00 93.05
Depreciation on latest PP&E as per straight line method 158.405 158.405
Total estimated depreciation transferrable to P&L a/c 203.40 251.46

[1] Capex is calculated as an average percentage of revenue from operations of last five years i.e. 3.153988 % of sales
tion of estimated CAPEX
Mar-22 Mar-23 Mar-24 Mar-25 Mar-26 Mar-27
-550.18

3.16

553.34 449.96 480.55 513.23 546.59 580.48

14,136.26 14,998.57 16,018.47 17,107.73 18,219.73 19,349.36

3.91% 3.00% 3.00% 3.00% 3.00% 3.00%

able to P&L A/C 6/27/2025

June 27, 2025

2025 2026 2027
45.00 45.00 45.00
48.06 48.06 48.06
51.32 51.32 51.32
- 54.66 54.66
- - 58.05
144.37 199.03 257.08
158.405 158.405 158.405
302.78 357.44 415.49

ars i.e. 3.153988 % of sales

 BRITANNIA INDUSTRIES LTD.
Statement showing computation of working capital
Mar-18 Mar-19 Mar-20 Mar-21
Current Asset 3,151.28 3,526.34 3,674.97 4,419.46
Current Liability 1,647.97 1,851.41 2,565.30 3,608.90
Net working capital 1,503.31 1,674.93 1,109.67 810.56
Net working capital as percentage of revenue 15% 15% 10% 6%

Statement showing computation of debt & cash free working capital

Current Asset(net of cash & cash equivalent) 2,964.86 3,416.52 3,552.12 4,208.12
current liability(net of debt) 1,554.32 1,775.31 1,817.31 2,251.75
debt free cash free net working capital 1,410.54 1,641.21 1,734.81 1,956.37
debt free cash free wc as % of rev 14.12% 14.85% 14.96% 14.89%
wc 1,410.54 1,641.21 1,734.81 1,956.37
change in working capital 230.67 93.60 221.56
STRIES LTD.

Mar-22
3,970.42
4,155.73
-185.31
-1%

g capital
3,785.52
2,397.18
1,388.34
9.82% 10.0% 10.0% 10.0% 10.0% 10.0%
1,388.34 1,499.86 1,601.85 1,710.77 1,821.97 1,934.94
-568.03 111.52 101.99 108.93 111.20 112.96
 BRITANNIA INDUSTRIES LTD.
Statement showing computation of Weighted Average cost of capital Market Nifty Return:-
Cost of Equity Risk Free Rate 7.14% Nifty Nov 2012
Market(Nifty) Return 12.50% Nifty Nov 2022
Beta 0.60 CAGR
10.37%
Cost of debt Long term borrowing 706.99
Short Term Borrowing 1758.55
Finance Cost 144.29
Interest Rate 6%
Tax rate 34.96%
3.81%
WACC Cost of equity 10.37%
Equity as % of capital 77%
Cost of debt 4%
Debt as % of capital 23%
8.88%
ifty Return:-
5800
18800
12.5%
 Closing Price of Nifty & Britannia(5 years monthly data)
Date Nifty's Close Britannia's Close % change in Nifty's close % change in Britannia's close
4/1/2022 17102.55 3283.20 -2.07% 2.46%
3/1/2022 17464.75 3204.30 3.99% -6.52%
2/1/2022 16793.90 3427.85 -3.15% -3.03%
1/1/2022 17339.85 3534.90 -0.08% -1.99%
12/1/2021 17354.05 3606.70 2.18% 1.68%
11/1/2021 16983.20 3547.25 -3.90% -3.34%
10/1/2021 17671.65 3670.00 0.30% -7.05%
9/1/2021 17618.15 3948.40 2.84% -1.23%
8/1/2021 17132.20 3997.65 8.69% 16.89%
7/1/2021 15763.05 3420.05 0.26% -6.31%
6/1/2021 15721.50 3650.30 0.89% 5.88%
5/1/2021 15582.80 3447.70 6.50% -0.03%
4/1/2021 14631.10 3448.80 -0.41% -4.94%
3/1/2021 14690.70 3628.10 1.11% 7.86%
2/1/2021 14529.15 3363.60 6.56% -3.97%
1/1/2021 13634.60 3502.80 -2.48% -2.02%
12/1/2020 13981.75 3575.10 7.81% -1.62%
11/1/2020 12968.95 3634.10 11.39% 4.59%
10/1/2020 11642.40 3474.65 3.51% -8.46%
9/1/2020 11247.55 3795.95 -1.23% 1.92%
8/1/2020 11387.50 3724.40 2.84% -2.61%
7/1/2020 11073.45 3824.15 7.49% 6.15%
6/1/2020 10302.10 3602.50 7.53% 6.58%
5/1/2020 9580.30 3380.20 -2.84% 6.81%
4/1/2020 9859.90 3164.80 14.68% 17.67%
3/1/2020 8597.75 2689.65 -23.25% -9.49%
2/1/2020 11201.75 2971.50 -6.36% -7.21%
1/1/2020 11962.10 3202.35 -1.70% 5.78%
12/1/2019 12168.45 3027.25 0.93% -0.96%
11/1/2019 12056.05 3056.55 1.50% -6.42%
10/1/2019 11877.45 3266.40 3.51% 10.87%
9/1/2019 11474.45 2946.20 4.09% 9.07%
8/1/2019 11023.25 2701.30 -0.85% 3.74%
7/1/2019 11118.00 2604.00 -5.69% -5.09%
6/1/2019 11788.85 2743.55 -1.12% -6.46%
5/1/2019 11922.80 2932.90 1.49% 1.38%
4/1/2019 11748.15 2893.10 1.07% -6.13%
3/1/2019 11623.90 3081.95 7.70% 0.72%
2/1/2019 10792.50 3059.95 -0.36% -4.26%
1/1/2019 10830.95 3195.95 -0.29% 2.49%
12/1/2018 10862.55 3118.40 -0.13% -1.29%
11/1/2018 10876.75 3159.25 4.72% 12.14%
10/1/2018 10386.60 2817.27 -4.98% -2.87%
9/1/2018 10930.45 2900.45 -6.42% -13.85%
8/1/2018 11680.50 3366.70 2.85% 3.11%
 7/1/2018 11356.50 3265.02 5.99% 5.38%
6/1/2018 10714.30 3098.20 -0.20% 4.48%
5/1/2018 10736.15 2965.27 -0.03% 7.70%
4/1/2018 10739.35 2753.38 6.19% 10.77%
3/1/2018 10113.70 2485.73 -3.61% -0.27%
2/1/2018 10492.85 2492.43 -4.85% 6.68%
1/1/2018 11027.70 2336.25
12/1/2017 10530.70 2357.88
11/1/2017 10226.55 2391.38
10/1/2017 10335.30 2324.68
9/1/2017 9788.60 2172.02
8/1/2017 9917.90 2106.27
7/1/2017 10077.10 1960.93
6/1/2017 9520.90 1847.32
5/1/2017 9621.25 1766.53
Covariance 0.0020
Variance of Market return 0.0033
Beta 0.60
PPT SLIDES

ECONOMY
INDUSTRY FMGC
CO. OVERVIEW
FINANCIAL STATEMENT
RATIO ROE EBITDA MARGIN
DCF ANALYSIS
RELATIVE VALUATION
RISK

To do Liquidity Ratio
footnotes current ratio
quick ratio
fig(in crores) Absolute liquidity Rati
relative valuation
VALUATION AS ON 31-03-2022
interest rate
gdp growth rate
interpretation in ratios
mkt return
share price as on 31mar22
ratio analysis
rev forecast
use transpose function

Footnotes to be created
risk free rate tenure nd mkt return should be same
index is taken as nifty
cost of eq is calculated as per capm
risk free rate of 10yr govt bond is taken
no. of equity shareholders
ROCE GROSS DEBT EQ

Ratios
Solvency Ratio Activity Ratio Profitability
Debt to equity ratio wc turnover ratio operating profit margi
debt to total asset Total asset turnover ratiNet Profit Margin
capital gearing
proprietary ratio
dscr
icr

ebitda v/s net income

c/f=waterfall chart
historical share price
shareholding pattern
working capitals
rev/profit/net profit margin
ICR PE RATIO PPT

Return ratio
roi
roce
roe
pe ratio
eps