Discounted Cash Flow (DCF) Analysis Unlevered

PPAP Automotive Limited (PPAP.NS)

213.5 ₹

-9.55 (-4.28%)

All numbers are in Millions, Currency in USD

Stock DCF: 350.85 | 213.5 | 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	3,975.75	4,041.65	3,573.80	3,204.79	4,219.17	4,339.51	4,463.28	4,590.58	4,721.51	4,856.17
Revenue (%)
EBITDA	888.38	784.89	503.98	334.77	361.03	649.80	668.33	687.39	707	727.16
EBITDA (%)
EBIT	628.48	524.94	246.74	70.10	66.35	342.48	352.24	362.29	372.62	383.25
EBIT (%)
Depreciation	259.90	259.95	257.23	264.67	294.69	307.32	316.09	325.10	334.37	343.91
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	13.65	4.26	32.03	13.76	50.24	25.73	26.47	27.22	28	28.80
Total Cash (%)
Account Receivables	-	-	-	-	-	-	-	-	-	-
Account Receivables (%)
Inventories	319.56	449.63	495.71	449.56	560.58	523.76	538.70	554.06	569.87	586.12
Inventories (%)
Accounts Payable	315.52	402.06	418.76	479.11	485.80	486.59	500.47	514.75	529.43	544.53
Accounts Payable (%)
Capital Expenditure	-507.48	-441.57	-260.96	-523.82	-698.54	-554.53	-570.35	-586.61	-603.34	-620.55
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 213.5
Beta	0.233
Diluted Shares Outstanding	14
Cost of Debt
Tax Rate	709.74
After-tax Cost of Debt	-36.16%
Risk-Free Rate
Market Risk Premium
Cost of Equity	4.740
Total Debt	1,096.96
Total Equity	2,989
Total Capital	4,085.96
Debt Weighting	26.85
Equity Weighting	73.15
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	3,975.75	4,041.65	3,573.80	3,204.79	4,219.17	4,339.51	4,463.28	4,590.58	4,721.51	4,856.17
EBITDA	888.38	784.89	503.98	334.77	361.03	649.80	668.33	687.39	707	727.16
EBIT	628.48	524.94	246.74	70.10	66.35	342.48	352.24	362.29	372.62	383.25
Tax Rate	33.32%	30.51%	17.41%	35.06%	709.74%	165.21%	165.21%	165.21%	165.21%	165.21%
EBIAT	419.10	364.79	203.78	45.52	-404.54	-223.33	-229.69	-236.25	-242.98	-249.91
Depreciation	259.90	259.95	257.23	264.67	294.69	307.32	316.09	325.10	334.37	343.91
Accounts Receivable	-	-	-	-	-	-	-	-	-	-
Inventories	-	-130.07	-46.08	46.14	-111.02	36.82	-14.94	-15.36	-15.80	-16.25
Accounts Payable	-	86.54	16.70	60.35	6.70	0.79	13.88	14.27	14.68	15.10
Capital Expenditure	-507.48	-441.57	-260.96	-523.82	-698.54	-554.53	-570.35	-586.61	-603.34	-620.55
UFCF	171.51	139.64	170.67	-107.14	-912.72	-432.92	-485.01	-498.85	-513.08	-527.71
WACC
PV UFCF						-461.73	-551.72	-605.22	-663.91	-728.29
SUM PV UFCF										-3,010.89

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	-6.24
Free cash flow (t + 1)	-538.26
Terminal Value	6,532.32
Present Value of Terminal Value	9,015.29

Intrinsic Value

Enterprise Value	6,004.41
Net Debt	1,092.56
Equity Value	4,911.85
Shares Outstanding	14
Equity Value Per Share	350.85