Discounted Cash Flow (DCF) Analysis Unlevered

Deep Industries Limited (DEEPINDS.NS)

276.35 ₹

-21.70 (-7.28%)

All numbers are in Millions, Currency in USD

Stock DCF: 772.19 | 276.35 | undervalue

Operating Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	3,126.75	3,175.04	2,618.47	2,409.19	2,216.63	2,039.46	1,876.46	1,726.48	1,588.49	1,461.53
Revenue (%)
EBITDA	1,652.10	1,516.73	1,267.01	1,196.53	1,100.89	1,012.90	931.95	857.46	788.93	725.87
EBITDA (%)
EBIT	623.49	536.68	370.04	409.37	376.65	346.54	318.85	293.36	269.91	248.34
EBIT (%)
Depreciation	1,028.61	980.05	896.97	787.16	724.25	666.36	613.10	564.10	519.01	477.53
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	961.85	219.16	122.84	340.15	312.96	287.95	264.93	243.76	224.27	206.35
Total Cash (%)
Account Receivables	-	-	-	-	-	-	-	-	-	-
Account Receivables (%)
Inventories	145.23	136.76	264.59	153.04	140.81	129.55	119.20	109.67	100.91	92.84
Inventories (%)
Accounts Payable	237.27	225.09	357.58	227.54	209.35	192.62	177.22	163.06	150.03	138.04
Accounts Payable (%)
Capital Expenditure	-0.42	-7.55	-718.34	-222.33	-204.56	-188.21	-173.17	-159.33	-146.59	-134.87
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 276.35
Beta	0.000
Diluted Shares Outstanding	32
Cost of Debt
Tax Rate	20.48
After-tax Cost of Debt	11.93%
Risk-Free Rate
Market Risk Premium
Cost of Equity	3.518
Total Debt	317.92
Total Equity	8,843.20
Total Capital	9,161.12
Debt Weighting	3.47
Equity Weighting	96.53
Wacc

Build Up Free Cash

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	3,126.75	3,175.04	2,618.47	2,409.19	2,216.63	2,039.46	1,876.46	1,726.48	1,588.49	1,461.53
EBITDA	1,652.10	1,516.73	1,267.01	1,196.53	1,100.89	1,012.90	931.95	857.46	788.93	725.87
EBIT	623.49	536.68	370.04	409.37	376.65	346.54	318.85	293.36	269.91	248.34
Tax Rate	96.19%	69.38%	-10.49%	43.89%	20.48%	43.89%	43.89%	43.89%	43.89%	43.89%
EBIAT	23.74	164.31	408.87	229.69	299.52	194.44	178.90	164.60	151.45	139.34
Depreciation	1,028.61	980.05	896.97	787.16	724.25	666.36	613.10	564.10	519.01	477.53
Accounts Receivable	-	-	-	-	-	-	-	-	-	-
Inventories	-	8.48	-127.83	111.55	12.23	11.25	10.35	9.53	8.77	8.06
Accounts Payable	-	-12.17	132.48	-130.04	-18.19	-16.73	-15.40	-14.16	-13.03	-11.99
Capital Expenditure	-0.42	-7.55	-718.35	-222.33	-306.45	-188.21	-173.17	-159.33	-146.59	-134.87
UFCF	1,051.93	1,133.11	592.14	776.04	813.25	667.12	613.80	564.74	519.60	478.07
WACC
PV UFCF				805.61	813.25	642.63	569.57	504.81	447.42	396.55
SUM PV UFCF										2,560.98

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	3.81
Free cash flow (t + 1)	487.63
Terminal Value	26,941.03
Present Value of Terminal Value	22,346.95

Intrinsic Value

Enterprise Value	24,907.93
Net Debt	197.77
Equity Value	24,710.16
Shares Outstanding	32
Equity Value Per Share	772.19