Discounted Cash Flow (DCF) Analysis Unlevered

Havells India Limited (HAVELLS.NS)

1234.35 ₹

-4.60 (-0.37%)
All numbers are in Millions, Currency in USD
Stock DCF: 387.12 | 1234.35 | overvalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 80,999100,115.5093,867.90103,827.30139,384.80161,065.17186,117.77215,067.14248,519.38287,174.90
Revenue (%)
EBITDA 11,279.1013,131.1011,41817,591.4019,208.6022,526.1826,029.9730,078.7634,757.3140,163.58
EBITDA (%)
EBIT 9,869.5011,6059,238.3015,102.3016,599.7019,351.3422,361.3125,839.4629,858.6134,502.92
EBIT (%)
Depreciation 1,409.601,526.102,179.702,489.102,608.903,174.843,668.674,239.304,898.705,660.66
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 15,069.7013,087.5011,619.7019,793.6027,312.9026,645.1030,789.5635,578.6741,112.6947,507.50
Total Cash (%)
Account Receivables ----------
Account Receivables (%)
Inventories 16,330.3019,189.7018,718.8026,198.9029,680.8034,080.6239,381.6345,507.1852,585.5160,764.84
Inventories (%)
Accounts Payable 16,524.4016,002.3014,532.3016,793.5023,800.2027,418.4031,683.1536,611.2542,305.8848,886.28
Accounts Payable (%)
Capital Expenditure -15,968.10-5,014.80-3,609.30-2,498.90-2,583.20-10,574.93-12,219.79-14,120.50-16,316.85-18,854.82
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 1,234.35
Beta 0.475
Diluted Shares Outstanding 626.42
Cost of Debt
Tax Rate 25.53
After-tax Cost of Debt 6.45%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.839
Total Debt 6,164
Total Equity 773,226.57
Total Capital 779,390.57
Debt Weighting 0.79
Equity Weighting 99.21
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 80,999100,115.5093,867.90103,827.30139,384.80161,065.17186,117.77215,067.14248,519.38287,174.90
EBITDA 11,279.1013,131.1011,41817,591.4019,208.6022,526.1826,029.9730,078.7634,757.3140,163.58
EBIT 9,869.5011,6059,238.3015,102.3016,599.7019,351.3422,361.3125,839.4629,858.6134,502.92
Tax Rate 32.23%31.30%18.69%27.35%25.53%27.02%27.02%27.02%27.02%27.02%
EBIAT 6,689.047,972.197,511.7310,971.0912,362.4714,122.6416,319.3218,857.6821,790.8625,180.29
Depreciation 1,409.601,526.102,179.702,489.102,608.903,174.843,668.674,239.304,898.705,660.66
Accounts Receivable ----------
Inventories --2,859.40470.90-7,480.10-3,481.90-4,399.82-5,301.01-6,125.55-7,078.34-8,179.32
Accounts Payable --522.10-1,4702,261.207,006.703,618.204,264.754,928.105,694.636,580.40
Capital Expenditure -15,968.10-5,014.80-3,609.30-2,498.90-2,583.20-10,574.93-12,219.79-14,120.50-16,316.85-18,854.82
UFCF -7,869.461,101.995,083.035,742.3915,912.965,940.936,731.937,779.048,989.0110,387.19
WACC
PV UFCF 5,613.126,009.526,561.107,163.297,820.76
SUM PV UFCF 33,167.80

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.84
Free cash flow (t + 1) 10,594.94
Terminal Value 275,909.87
Present Value of Terminal Value 207,739.02

Intrinsic Value

Enterprise Value 240,906.82
Net Debt -1,594.40
Equity Value 242,501.22
Shares Outstanding 626.42
Equity Value Per Share 387.12