Discounted Cash Flow (DCF) Analysis Unlevered

Precot Limited (PRECOT.NS)

171.5 ₹

-0.30 (-0.17%)

All numbers are in Millions, Currency in USD

Stock DCF: 1,687.22 | 171.5 | 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	6,830.60	7,599.99	6,994.95	6,460	9,546.60	10,583.25	11,732.47	13,006.47	14,418.82	15,984.54
Revenue (%)
EBITDA	642.18	596.74	480.44	963.63	1,952.50	1,259.22	1,395.95	1,547.53	1,715.58	1,901.87
EBITDA (%)
EBIT	316.51	283.05	153.06	631.93	1,627.30	791.08	876.98	972.21	1,077.78	1,194.82
EBIT (%)
Depreciation	325.67	313.69	327.38	331.70	325.20	468.13	518.97	575.32	637.79	707.05
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	16.16	6.89	3.54	94.44	110.40	63.42	70.31	77.94	86.40	95.79
Total Cash (%)
Account Receivables	-	-	-	-	-	-	-	-	-	-
Account Receivables (%)
Inventories	1,548.08	1,327.48	1,243.20	1,311.95	2,414.10	2,190.74	2,428.62	2,692.34	2,984.70	3,308.80
Inventories (%)
Accounts Payable	360.34	290.48	452.77	290.11	382.70	509.48	564.80	626.13	694.12	769.50
Accounts Payable (%)
Capital Expenditure	-75.76	-122.87	-101.80	-114.60	-568.10	-252.01	-279.37	-309.71	-343.34	-380.62
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 171.5
Beta	0.910
Diluted Shares Outstanding	12
Cost of Debt
Tax Rate	21.18
After-tax Cost of Debt	6.35%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.926
Total Debt	3,597.10
Total Equity	2,058
Total Capital	5,655.10
Debt Weighting	63.61
Equity Weighting	36.39
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	6,830.60	7,599.99	6,994.95	6,460	9,546.60	10,583.25	11,732.47	13,006.47	14,418.82	15,984.54
EBITDA	642.18	596.74	480.44	963.63	1,952.50	1,259.22	1,395.95	1,547.53	1,715.58	1,901.87
EBIT	316.51	283.05	153.06	631.93	1,627.30	791.08	876.98	972.21	1,077.78	1,194.82
Tax Rate	0.00%	0.00%	-27.51%	0.00%	21.18%	-1.27%	-1.27%	-1.27%	-1.27%	-1.27%
EBIAT	316.51	283.05	195.18	631.93	1,282.62	801.10	888.09	984.53	1,091.43	1,209.95
Depreciation	325.67	313.69	327.38	331.70	325.20	468.13	518.97	575.32	637.79	707.05
Accounts Receivable	-	-	-	-	-	-	-	-	-	-
Inventories	-	220.60	84.28	-68.75	-1,102.15	223.36	-237.89	-263.72	-292.36	-324.10
Accounts Payable	-	-69.85	162.29	-162.66	92.59	126.78	55.32	61.33	67.99	75.37
Capital Expenditure	-75.76	-122.87	-101.80	-114.60	-568.10	-252.01	-279.37	-309.71	-343.34	-380.62
UFCF	566.42	624.61	667.33	617.63	30.16	1,367.37	945.12	1,047.75	1,161.52	1,287.65
WACC
PV UFCF						1,278.75	826.59	856.96	888.44	921.09
SUM PV UFCF										4,771.83

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.93
Free cash flow (t + 1)	1,313.40
Terminal Value	26,641.07
Present Value of Terminal Value	19,056.97

Intrinsic Value

Enterprise Value	23,828.79
Net Debt	3,582.20
Equity Value	20,246.59
Shares Outstanding	12
Equity Value Per Share	1,687.22