Discounted Cash Flow (DCF) Analysis Unlevered

Torrent Pharmaceuticals Limited (TORNTPHARM.NS)

2658.5 ₹

+13.85 (+0.52%)
All numbers are in Millions, Currency in USD
Stock DCF: 3,544.18 | 2658.5 | 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 74,618.4077,800.1078,862.3084,18894,640100,507.09106,737.90113,354.98120,382.27127,845.22
Revenue (%)
EBITDA 20,014.9022,629.8025,251.1026,155.6028,87030,052.1231,915.1733,893.7135,994.9038,226.36
EBITDA (%)
EBIT 13,83816,08618,673.2019,536.3021,80021,938.6023,298.6524,743.0226,276.9327,905.94
EBIT (%)
Depreciation 6,176.906,543.806,577.906,619.307,0708,113.538,616.519,150.689,717.9710,320.42
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 11,673.906,623.207,380.105,829.508,3509,902.6410,516.5411,168.5011,860.8812,596.18
Total Cash (%)
Account Receivables 19,349.8020,174.8720,450.3121,831.3624,541.7426,063.1727,678.9229,394.8431,217.1433,152.41
Account Receivables (%)
Inventories 19,351.5021,482.2026,81224,623.2022,30028,213.4129,962.4731,819.9533,792.5935,887.52
Inventories (%)
Accounts Payable 20,967.4020,768.6020,668.1016,744.4016,79023,846.7925,325.1426,895.1428,562.4730,333.16
Accounts Payable (%)
Capital Expenditure -6,628.30-4,067.80-3,351.50-2,025.70-5,740-5,393.72-5,728.09-6,083.20-6,460.32-6,860.82
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 2,658.5
Beta 0.285
Diluted Shares Outstanding 338.45
Cost of Debt
Tax Rate 32.58
After-tax Cost of Debt 4.18%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.596
Total Debt 53,680
Total Equity 899,757.20
Total Capital 953,437.20
Debt Weighting 5.63
Equity Weighting 94.37
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 74,618.4077,800.1078,862.3084,18894,640100,507.09106,737.90113,354.98120,382.27127,845.22
EBITDA 20,014.9022,629.8025,251.1026,155.6028,87030,052.1231,915.1733,893.7135,994.9038,226.36
EBIT 13,83816,08618,673.2019,536.3021,80021,938.6023,298.6524,743.0226,276.9327,905.94
Tax Rate 22.32%13.64%17.98%36.60%32.58%24.63%24.63%24.63%24.63%24.63%
EBIAT 10,748.9313,891.8415,316.2712,385.2714,697.3516,536.2017,561.3418,650.0419,806.2221,034.08
Depreciation 6,176.906,543.806,577.906,619.307,0708,113.538,616.519,150.689,717.9710,320.42
Accounts Receivable --825.07-275.45-1,381.04-2,710.38-1,521.43-1,615.75-1,715.92-1,822.30-1,935.27
Inventories --2,130.70-5,329.802,188.802,323.20-5,913.42-1,749.05-1,857.49-1,972.64-2,094.93
Accounts Payable --198.80-100.50-3,923.7045.607,056.791,478.351,5701,667.331,770.69
Capital Expenditure -6,628.30-4,067.80-3,351.50-2,025.70-5,740-5,393.72-5,728.09-6,083.20-6,460.32-6,860.82
UFCF 10,297.5313,213.2812,836.9213,862.9215,685.7818,877.9518,563.3119,714.1220,936.2722,234.19
WACC
PV UFCF 17,890.4016,671.9316,779.2716,887.3016,996.02
SUM PV UFCF 85,224.92

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.52
Free cash flow (t + 1) 23,123.55
Terminal Value 1,521,286.39
Present Value of Terminal Value 1,162,885.80

Intrinsic Value

Enterprise Value 1,248,110.71
Net Debt 48,600
Equity Value 1,199,510.71
Shares Outstanding 338.45
Equity Value Per Share 3,544.18