Discounted Cash Flow (DCF) Analysis Unlevered

Pioneer Embroideries Limited (PIONEEREMB.NS)

40 ₹

-0.65 (-1.60%)
All numbers are in Millions, Currency in USD
Stock DCF: 122.17 | 40 | undervalue

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 2,570.292,739.672,383.722,259.702,907.573,031.613,160.953,295.803,436.413,583.02
Revenue (%)
EBITDA 94.55193.12223.33287.27265.26254.25265.09276.40288.20300.49
EBITDA (%)
EBIT 9.27105.71136.21205.64184.45153.87160.43167.28174.41181.86
EBIT (%)
Depreciation 85.2887.4287.1281.6380.81100.38104.66109.13113.78118.64
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 15.075.7215.13143.1480.3163.8266.5569.3972.3575.43
Total Cash (%)
Account Receivables ----------
Account Receivables (%)
Inventories 357.83349.96376.06432.43439.22465.14484.98505.68527.25549.74
Inventories (%)
Accounts Payable 304.99321.78234.31219.22194.85302.21315.10328.55342.56357.18
Accounts Payable (%)
Capital Expenditure -89.55-47.59-22.85-84.31-66.52-73.97-77.12-80.41-83.84-87.42
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 40
Beta 0.856
Diluted Shares Outstanding 25.33
Cost of Debt
Tax Rate 27.42
After-tax Cost of Debt 7.84%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.515
Total Debt 296.74
Total Equity 1,013.13
Total Capital 1,309.87
Debt Weighting 22.65
Equity Weighting 77.35
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 2,570.292,739.672,383.722,259.702,907.573,031.613,160.953,295.803,436.413,583.02
EBITDA 94.55193.12223.33287.27265.26254.25265.09276.40288.20300.49
EBIT 9.27105.71136.21205.64184.45153.87160.43167.28174.41181.86
Tax Rate 1.58%1.15%0.94%-21.04%27.42%2.01%2.01%2.01%2.01%2.01%
EBIAT 9.12104.49134.93248.91133.88150.78157.21163.92170.91178.20
Depreciation 85.2887.4287.1281.6380.81100.38104.66109.13113.78118.64
Accounts Receivable ----------
Inventories -7.87-26.10-56.37-6.79-25.92-19.84-20.69-21.57-22.49
Accounts Payable -16.79-87.47-15.09-24.37107.3612.8913.4414.0214.61
Capital Expenditure -89.55-47.59-22.85-84.31-66.52-73.97-77.12-80.41-83.84-87.42
UFCF 4.85168.9785.63174.77117258.63177.80185.38193.29201.54
WACC
PV UFCF 240.39153.60148.85144.25139.80
SUM PV UFCF 826.88

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.59
Free cash flow (t + 1) 205.57
Terminal Value 3,677.42
Present Value of Terminal Value 2,550.84

Intrinsic Value

Enterprise Value 3,377.72
Net Debt 283.48
Equity Value 3,094.25
Shares Outstanding 25.33
Equity Value Per Share 122.17