Discounted Cash Flow (DCF) Analysis Unlevered

Polycab India Limited (POLYCAB.NS)

2878.5 ₹

+14.50 (+0.51%)

All numbers are in Millions, Currency in USD

Stock DCF: 1,967.12 | 2878.5 | 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	66,445.23	78,264.58	86,128.73	86,892.01	120,047.32	140,119.05	163,546.74	190,891.51	222,808.28	260,061.48
Revenue (%)
EBITDA	7,825.22	9,554.33	11,914.61	12,825.73	14,041.82	18,012.48	21,024.13	24,539.34	28,642.28	33,431.22
EBITDA (%)
EBIT	6,495.72	8,139.88	10,305.74	10,960.02	11,953.76	15,332.65	17,896.25	20,888.47	24,380.99	28,457.46
EBIT (%)
Depreciation	1,329.50	1,414.45	1,608.87	1,865.71	2,088.06	2,679.82	3,127.89	3,650.87	4,261.28	4,973.76
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	106.42	2,165.59	2,212.09	11,043.58	8,857.42	7,169.43	8,368.15	9,767.29	11,400.36	13,306.49
Total Cash (%)
Account Receivables	-	-	-	-	-	-	-	-	-	-
Account Receivables (%)
Inventories	13,656.92	19,957.85	19,249.54	19,879.10	21,996.47	30,715.49	35,851.07	41,845.32	48,841.79	57,008.06
Inventories (%)
Accounts Payable	9,220.87	15,201.82	13,536.83	13,480.32	12,175.30	20,926.49	24,425.37	28,509.25	33,275.95	38,839.64
Accounts Payable (%)
Capital Expenditure	-1,992.30	-2,860.68	-2,901.30	-1,934.94	-5,266.93	-4,662.13	-5,441.63	-6,351.47	-7,413.42	-8,652.93
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 2,878.5
Beta	0.621
Diluted Shares Outstanding	149.92
Cost of Debt
Tax Rate	18.58
After-tax Cost of Debt	11.15%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.432
Total Debt	1,181.48
Total Equity	431,553.77
Total Capital	432,735.25
Debt Weighting	0.27
Equity Weighting	99.73
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	66,445.23	78,264.58	86,128.73	86,892.01	120,047.32	140,119.05	163,546.74	190,891.51	222,808.28	260,061.48
EBITDA	7,825.22	9,554.33	11,914.61	12,825.73	14,041.82	18,012.48	21,024.13	24,539.34	28,642.28	33,431.22
EBIT	6,495.72	8,139.88	10,305.74	10,960.02	11,953.76	15,332.65	17,896.25	20,888.47	24,380.99	28,457.46
Tax Rate	35.76%	33.91%	24.84%	17.17%	18.58%	26.05%	26.05%	26.05%	26.05%	26.05%
EBIAT	4,173.05	5,379.87	7,745.28	9,078.01	9,733.24	11,338.29	13,234.04	15,446.75	18,029.42	21,043.91
Depreciation	1,329.50	1,414.45	1,608.87	1,865.71	2,088.06	2,679.82	3,127.89	3,650.87	4,261.28	4,973.76
Accounts Receivable	-	-	-	-	-	-	-	-	-	-
Inventories	-	-6,300.93	708.31	-629.56	-2,117.37	-8,719.02	-5,135.58	-5,994.24	-6,996.47	-8,166.27
Accounts Payable	-	5,980.95	-1,664.99	-56.51	-1,305.02	8,751.19	3,498.88	4,083.88	4,766.70	5,563.69
Capital Expenditure	-1,992.30	-2,860.68	-2,901.30	-1,934.94	-5,266.93	-4,662.13	-5,441.63	-6,351.47	-7,413.42	-8,652.93
UFCF	3,510.26	3,613.66	5,496.17	8,322.71	3,131.98	9,388.15	9,283.58	10,835.78	12,647.51	14,762.16
WACC
PV UFCF						8,820.14	8,194.19	8,985.57	9,853.39	10,805.02
SUM PV UFCF										46,658.30

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.44
Free cash flow (t + 1)	15,057.40
Terminal Value	339,130.61
Present Value of Terminal Value	248,223.37

Intrinsic Value

Enterprise Value	294,881.67
Net Debt	-35.43
Equity Value	294,917.10
Shares Outstanding	149.92
Equity Value Per Share	1,967.12