Maruti Suzuki India Limited Valuation

Table of Contents
EIC analysis
DCF (FCFF)
WACC
Comps
Precedents
Blended EV
Summary - Football Field

Notes
This Excel model is for educational purposes only and should not be used for any other reason.
Strictly Confidential
https://yourstory.com/2023/04/indias-automotive-industry-growth-trends-global-prominence#:~:text=Industry%20Growth%20Pro
xt=Industry%20Growth%20Projections,of%20the%20market%20share%2C%20respectively.
 Historical --> Forecast -->
Maruti Suzuki India Limited
rs million, except per share data 2021A 2022A 2023A 2024E 2025E 2026E 2027E 2028E
Balance Sheet Check OK OK OK OK OK OK OK OK

Assumptions & Drivers

Days in Period 365 365 365 365 365 365 365 365

Income Statement
Sales Growth 25.5% 33.1% 29% 25.0% 22.0% 17.0% 13.0%
Gross Margin 27.8% 25.2% 26.6% 27.0% 27.0% 27.0% 27.0% 27.0%
Employee benefits expenses (Percent of Sales) 4.9% 4.6% 3.9% 3.9% 3.9% 3.9% 3.9% 3.9%
Other expenses (Percent of Sales) 15.3% 14.2% 13.3% 13.0% 13.0% 13.0% 13.0% 13.0%
Amortization (Percent of Sales) 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2%
Deprciation (Percent of Sales) 4.1% 3.0% 2.2% 2.6% 2.6% 2.6% 2.6% 2.6%
Long Term Debt Interest (Average Debt) 26.3% 22.4% 22.4% 22.4% 22.4% 22.4% 22.4%
Tax Rate (Percent of EBT) 17.5% 17.4% 20.5% 18.0% 18.0% 18.0% 18.0% 18.0%

Balance Sheet
CAPEX as as % of Sales 3% 4% 5% 2.0% 1.5% 1.5% 1.0% 1.0%
Intangibles as as % of Sales 0.3% 0.3% 0.2% 0.2% 0.2% 0.2% 0.1% 0.1%
Receivable Days (Sales Basis) 7 8 10 8 9 9 9 9
Inventory Days (COGS Basis) 22 20 18 20 19 19 19 19
Payable Days (COGS Basis) 73 54 50 52 52 51 52 52
Long Term Debt 5,382 4,228 12,473 13,720 15,092 16,602 18,262 20,088
Common Share Capital 1,510 1,510 1,510 1,510 1,510 1,510 1,510 1,510
Dividend Payout Ratio 41.3% 35.0% 22.1% 33.0% 30.0% 28.0% 30.0% 29.0%

Cash Flow
Income Taxes paid 109% 144% 106% 119.0% 123.0% 116.0% 119.0% 119.0%

Income Statement

Revenues 703,720 883,298 1,175,713 1,516,670 1,895,837 2,312,921 2,706,118 3,057,913

Cost of Goods Sold 508,241 660,440 862,508 1,107,169 1,383,961 1,688,433 1,975,466 2,232,277
Gross Profit 195,479 222,858 313,205 409,501 511,876 624,489 730,652 825,637
Employee benefits expenses 34,316 40,514 46,346 59,786 74,733 91,174 106,674 120,541
Other expenses 107,647 125,282 156,682 197,167 246,459 300,680 351,795 397,529
Amortization expense 1,424 1,608 2,080 2,838 3,547 4,328 5,063 5,721
Depreciation expense 28,917 26,282 26,177 39,448 49,310 60,158 70,385 79,535
Operating Profit 23,175 29,172 81,920 110,262 137,827 168,149 196,734 222,310
Finance costs 1,018 1,266 1,870 2,933 3,226 3,549 3,904 4,294
Other Income 29,363 17,447 21,407 21,407 21,407 21,407 21,407 21,407
Share of profit of associates / joint ventures 1,690 1,619 1,774 1,774 1,774 1,774 1,774 1,774
Income Before Taxes 53,210 46,972 103,231 130,510 157,782 187,781 216,012 241,197
Taxes 9,319 8,177 21,121 23,492 28,401 33,801 38,882 43,415
Net Income 43,891 38,795 82,110 107,018 129,381 153,981 177,130 197,782

Common Dividends 18,125 13,594 18,125 35,316 38,814 43,115 53,139 57,357

Balance Sheet

ASSETS
Current Assets:
Cash 408 351 373 40,167 184,650 344,849 522,828 734,941
Trade and Other Receivables 12,799 20,345 33,014 35,029 46,902 58,552 65,985 75,903
Inventories 30,490 35,323 42,835 60,212 72,686 88,122 104,781 117,363
Other Current Assets 137,273 111,915 39,934 96,374 82,741 73,016 84,044 79,934
Total Current Assets 180,970 167,934 116,156 231,782 386,980 564,540 777,637 1,008,140
Non-Current Assets:
Property Plant and Equipment & CWIP 159,638 160,435 200,977 191,862 170,990 145,526 102,202 53,246
Intangible Assets 5,217 6,402 6,368 6,506 6,679 6,977 4,620 1,957
Other non-current asets 367,936 411,784 522,468 522,468 522,468 522,468 522,468 522,468
TOTAL ASSETS 713,761 746,555 845,969 952,618 1,087,117 1,239,511 1,406,927 1,585,811

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:
Trade and Other Payables 101,681 97,652 117,855 157,491 196,864 237,028 279,758 315,699
Other Current Liabilities 55,496 68,684 70,994 65,058 68,245 68,099 67,134 67,826
Total Current Liabilities: 157,177 166,336 188,849 222,549 265,109 305,127 346,893 383,525
Non-Current Liabilities:
Borrowings 5,382 4,228 12,473 13,720 15,092 16,602 18,262 20,088
Other Non-current Liabilities 26,196 22,656 26,734 26,734 26,734 26,734 26,734 26,734
Shareholder's Equity:
Equity Share Capital 1,510 1,510 1,510 1,510 1,510 1,510 1,510 1,510
Other Equity 56,419 59,366 60,332 60,332 60,332 60,332 60,332 60,332

© Management Development Associates (NA) Inc. - 21317

Retained Earnings 467,077 492,459 556,071 627,773 718,340 829,206 953,197 1,093,622
Total Shareholders' Equity 525,006 553,335 617,913 689,615 780,182 891,048 1,015,039 1,155,464
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 713,761 746,555 845,969 952,618 1,087,117 1,239,511 1,406,927 1,585,811
- - - - -
Check 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

Cash Flow Statement

Cash Flows from Operating Activities:

Profit Before Tax 53,210 46,972 103,231 130,510 157,782 187,781 216,012 241,197
Amortization expense 1424 1608 2080 2,838 3,547 4,328 5,063 5,721
Depreciation expense 28917 26282 26177 39,448 49,310 60,158 70,385 79,535
Other changes in operating activities (29,259) (17,809) (22,243) 4,463 6,532 5,408 7,388 8,249
Finance costs 1018 1266 1870 2933 3226 3549 3904 4294
Changes in Operating Assets and Liabilities:
Trade and Other Receivables 6,965 (7,640) (12,581) (2,015) (11,874) (11,649) (7,433) (9,918)
Inventories 1,649 (4,833) (7,512) (17,377) (12,475) (15,436) (16,659) (12,582)
Trade and Other Payables 26,801 (3,959) 20,075 39,636 39,373 40,164 42,730 35,940
Finance and Other Current Assets (8,559) (19,417) (830) (56,440) 13,633 9,725 (11,027) 4,110
Other Current Liabilities 16,509 7,718 4,575 (5,936) 3,187 (146) (965) 692
Income Taxes paid (10,113) (11,783) (22,328) (27,955) (34,933) (39,209) (46,270) (51,664)
Net Cash Provided by Operating Activities 88,562 18,405 92,514 110,105 217,309 244,673 263,128 305,574

Investing Activities:
Acquisitions of Property and Equipment & CWIP (21,320) (32,063) (61,166) (30,333) (28,438) (34,694) (27,061) (30,579)
Payments for purchase of intangible assets (2,383) (2,530) (2,307) (2,976) (3,720) (4,626) (2,706) (3,058)
Other Investing Activities (51,593) 29,671 (19,195) - - - - -
Cash Flows from Investing Activities (72,913) (2,392) (80,361) (33,309) (32,158) (39,320) (29,767) (33,637)

Financing Activities:
Lease payments (111) (81) (460) (460) (460) (460) (460) (460)
Dividends (18,125) (13,594) (18,125) (35,316) (38,814) (43,115) (53,139) (57,357)
Finance cost paid (1,016) (1,298) (1,858) (2,933) (3,226) (3,549) (3,904) (4,294)
Movement of Long-Term & Short-term Debt 3,803 (1,097) 8,312 1,707 1,832 1,969 2,120 2,286
Cash Flows from Financing Activities (15,449) (16,070) (12,131) (37,002) (40,668) (45,154) (55,382) (59,824)

Increase/(Decrease) in Cash and Equivalents 200 (57) 22 39,794 144,483 160,199 177,978 212,113
Cash and Equivalents, Beginning of the Year 208 408 351 373 40,167 184,650 344,849 522,828
Cash and Equivalents, End of the Year 408 351 373 40,167 184,650 344,849 522,828 734,941

Supporting Schedules

Property Plant and Equipment (PP&E)

Net PP&E
Beginning of Period 167,235 159,638 165,419 200,977 191,862 170,990 145,526 102,202
Capital Expenditures/Additions (Disposals) 21,320 32,063 61,166 30,333 28,438 34,694 27,061 30,579
Depreciation Expense 28,917 26,282 26,177 39,448 49,310 60,158 70,385 79,535
Net PP&E End of Period 159,638 165,419 200,408 191,862 170,990 145,526 102,202 53,246

Intangibles
Beginning of Period 6,530 5,217 6,139 6,368 6,506 6,679 6,977 4,620
Capital Expenditures/Additions (Disposals) 111 2,530 2,307 2,976 3,720 4,626 2,706 3,058
Amortization expense 1424 1608 2080 2,838 3,547 4,328 5,063 5,721
Net Intangibles End of Period 5,217 6,139 6,366 6,506 6,679 6,977 4,620 1,957

Retained Earnings (RE)

Beginning of Period 441,311 467,077 492,278 556,071 627,773 718,340 829,206 953,197
Net Income 43,891 38,795 82,110 107,018 129,381 153,981 177,130 197,782
Dividends 18,125 13,594 18,125 35,316 38,814 43,115 53,139 57,357
RE End of Period 467,077 492,278 556,263 627,773 718,340 829,206 953,197 1,093,622

Long Term Debt (LTD)

Beginning of Period 1,579 5,382 4,228 12,473 13,720 15,092 16,602 18,262
Lease Payments (111) (81) (460) (460) (460) (460) (460) (460)
Additions (Repayments) 3,803 (1,073) 8,245 1,707 1,832 1,969 2,120 2,286
LTD End of Period 5,382 4,228 12,473 13,720 15,092 16,602 18,262 20,088

Long Term Debt Interest 1,018 1,266 1,870 2,933 3,226 3,549 3,904 4,294
Total Interest 1,018 1,266 1,870 2,933 3,226 3,549 3,904 4,294

Charts & Graphs

- -10.0%
1 1 1 1
, , , ,

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7 7 8 9 0 2 4 5
1 4 4 5 8 3 0 8
5

2021A 2022A 2023A 2024A 2025A 2026A 2027A 2028A

3 6 5 2 7 9 6
, , , , , , , ,
7 5 9 6 1 5 9 8
6 5 6 1 1 1 2 1
7 1

2021A 2022A 2023A 2024A 2025A 2026A 2027A 2028A

1 5 9 8 7 1
- -10.0%
2021A 2022A 2023A 2024A 2025A 2026A 2027A 2028A

Ratio Analysis

Working Capital 23,793 1,598 (72,693) 9,233 121,871 259,413 430,745 624,615

© Management Development Associates (NA) Inc. - 21317

Net Working Capital 23,385 1,247 (73,066) (30,934) (62,779) (85,437) (92,083) (110,325)

Liquidity ratios:
Current Ratio 1.15 1.01 0.62 1.04 1.46 1.85 2.24 2.63
Quick Ratio 0.96 0.80 0.39 0.77 1.19 1.56 1.94 2.32
Cash Ratio 0.00 0.00 0.00 0.18 0.70 1.13 1.51 1.92
Working Capital Turnover Ratio 29.58 69.58 -33.07 -47.80 28.92 12.13 7.84 5.80

Profitability ratios: 21.07%

CAGR 25.52% 29.26% 29.17% 28.12% 26.87% 25.17% 23.35%
Gross Profit Margin 27.8% 25.2% 26.6% 27.0% 27.0% 27.0% 27.0% 27.0%
Operating Profit Margin 3.3% 3.3% 7.0% 7.3% 7.3% 7.3% 7.3% 7.3%
EBITDA Margin 11.8% 8.4% 11.2% 11.4% 11.1% 10.9% 10.7% 10.6%
PBT Margin 7.6% 5.3% 8.8% 8.6% 8.3% 8.1% 8.0% 7.9%
Net Profit Margin 6.2% 4.4% 7.0% 7.1% 6.8% 6.7% 6.5% 6.5%
Return on Assets 6.1% 5.3% 10.3% 11.9% 12.7% 13.2% 13.4% 13.2%
Return on Equity 8.4% 7.2% 14.0% 16.4% 17.6% 18.4% 18.6% 18.2%

Solvency ratios:
Debt-to-Equity Ratio 0.01 0.01 0.02 0.02 0.02 0.02 0.02 0.02
Debt Ratio 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01
Interest Coverage Ratio 53.27 38.10 56.20 45.50 49.91 53.91 56.34 57.17
Debt Service Coverage Ratio -19.47 20.41 -16.31 108.88 115.49 121.13 123.31 122.27
Financial Leverage Ratio 1.36 1.35 1.37 1.38 1.39 1.39 1.39 1.37

Efficiency ratios:
Accounts Receivable Turnover Ratio 54.98 53.30 44.07 44.58 46.28 43.87 43.46 43.10
Days Sales Outstanding (DSO) 6.64 6.85 8.28 8.19 7.89 8.32 8.40 8.47
Accounts Payable Turnover Ratio 4.998 6.626 8.004 8.042 7.811 7.783 7.645 7.498
Days Payable Outstanding (DPO) 73.02 55.08 45.60 45.39 46.73 46.90 47.74 48.68
Inventory Turnover Ratio 16.669 20.070 22.071 21.489 20.827 20.999 20.481 20.098
Days Sales of Inventory (DSI) 21.90 18.19 16.54 16.99 17.53 17.38 17.82 18.16
Asset Turnover Ratio 0.99 1.18 1.39 1.59 1.74 1.87 1.92 1.93
Fixed Asset Turnover Ratio 4.41 5.51 5.85 7.90 11.09 15.89 26.48 57.43
Cash Conversion Cycle -44.49 -30.05 -20.78 -20.21 -21.32 -21.20 -21.52 -22.05

Cash Flow ratios:

Operating cash Flow Ratio 0.56 0.11 0.49 0.49 0.82 0.80 0.76 0.80
Cash Flow to Debt Ratio 0.54 0.11 0.46 0.47 0.78 0.76 0.72 0.76
Cash Flow Margin 0.13 0.02 0.08 0.07 0.11 0.11 0.10 0.10
Cash Return on Assets 0.12 0.02 0.11 0.12 0.20 0.20 0.19 0.19
CFO / (CFI + CFF) 1.00 1.00 1.00 1.57 2.98 2.90 3.09 3.27

DCF Model

Assumptions
Tax Rate 30%
Discount Rate (WACC) 13%
Perpetural Growth Rate 6%
EV/EBITDA Mulltiple 16.5x industry average and Maruti's EV / EBITDA multiple
Valuation Date 2/9/2024
Fiscal Year End 3/31/2023
Current Price 10,710.00
Shares Outstanding 302.10

Discounted Cash Flow (FCFF) 2024 2025 2026 2027 2028 Terminal Terminal Value
Date 3/31/2024 3/31/2025 3/31/2026 3/31/2027 3/31/2028 3/31/2028 Perpetural Growth Method 3,660,112
Time Periods 1 2 3 4 5 H model method 3,901,817
Year Fraction 0.14 1.00 1.00 1.00 1.00 EV/EBITDA multiple 5,457,334
EBT 130,510 157,782 187,781 216,012 241,197 Average 4,679,576
Interest 2,933 3,226 3,549 3,904 4,294
EBIT 133,443 161,008 191,330 219,915 245,491 N (for H model) 2
Less: Cash Taxes 40,033 48,302 57,399 65,975 73,647 Capitalization rate 7%
Plus: D&A 42,286 52,857 64,486 75,448 85,257
Less: Capex 33,309 32,158 39,320 29,767 33,637
Less: Changes in NWC 42,132 (31,845) (22,658) (6,646) (18,242)
Unlevered FCF (FCFF) 60,255 165,250 181,755 206,268 241,705 4,679,576
Unlevered FCF (period adjusted) 8,703 165,250 181,755 206,268 241,705 4,679,576
Discount Period 0.07 0.64 1.64 2.64 3.64 3.64
Present Value Factor (13.00% Discount Rate) 0.9912 0.9243 0.8179 0.7238 0.6406 0.6406
Net FCF 8,627 152,734 148,663 149,303 154,826 2,997,540

© Management Development Associates (NA) Inc. - 21317

Intrinsic Value Market Value Rate of Return
Enterprise Value 3,611,693 Market Cap 3,235,491 Target Price Upside 10%
Plus: Cash 373 Plus: Debt 39,207
Less: Debt 39,207 Less: Cash 373
Equity Value 3,572,859 EV 3,274,325

Equity Value/Share 11,826.74 Equity Value/Share 10,710.00

Charts and Graphs

2024 2025 2026 2027 2028 Market Value vs Intrinsic Value

Free Cash Flow 60,255 165,250 181,755 206,268 241,705 Market Value 10,710.00
Upside 1,116.74
Intrinsic Value 11,826.74

This chart isn't available in your version of Excel.

Free Cash Flow
₹ 300,000 Editing this shape or saving this workbook into a different file format will permanently break the
chart.
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2024 2025 2026 2027 2028

Sensitivity analysis

Discount Rate (WACC)

11,826.74 11% 12% 13% 14% 15%
8%
7%
Perpetural Growth Rate 6%
5%
4%

© Management Development Associates (NA) Inc. - 21317

WACC

Economic Data
Risk-free rate 7.20%
Equity Risk Premium 8.33%
Tax rate 30.00%

Modified CAPM method

Cost of Equity
Risk-free rate 7%
Equity Risk Premium 8.33%
Levered Beta 0.81
Company Specific Risk Premium 0.00%
Cost of Equity 13.92%

Capital Structure of the company (in INR million)

Debt ₹ 39,207.00
Equity ₹ 617,913.00
Total Capital ₹ 657,120.00
D/E 0.06

https://in.investing.com/rates-bonds/india-government-bonds?maturity_from=10&maturity_to=300
http://www.worldgovernmentbonds.com/country/india/
 Levered Beta
Average Industry Beta 0.77
D/E Ratio 0.06
Tax Rate 30%
Levered Beta 0.81

Cost of Debt
Risk Free rate 7.2%
Credit Rating 0%
Default Spread 0%
Tax Rate 30%
After-tax cost of debt 5.04%

Weighted Average Cost of Capital

Cost of Equity 14%
Weight of equity 94%

After Tax cost of debt 5%

Weight of Debt 6%
WACC 13.39%

m=10&maturity_to=300
Date updated: 5-Jan-23
Created by: Aswath Damodaran, adamodar@stern.nyu.edu
What is this data? Beta, Unlevered beta and other risk measures India
Home Page: http://www.damodaran.com
Data website: https://pages.stern.nyu.edu/~adamodar/New_Home_Page/data.html
Companies in each industry: https://pages.stern.nyu.edu/~adamodar/pc/datasets/indname.xls
Variable definitions: https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/variable.htm
Do you want to use marginal or effective tax rates in unlevering betas? Marginal
If marginal tax rate, enter the marginal tax rate to use 30.00%

Effective Tax
Industry Name Number of firms Beta D/E Ratio rate Unlevered beta Cash/Firm value
Advertising 13 1.39 1.16% 21.26% 1.38 2.40%
Aerospace/Defense 13 1.35 0.38% 25.61% 1.34 17.17%
Air Transport 6 1.52 88.22% 12.33% 0.94 7.59%
Apparel 323 0.88 21.13% 17.64% 0.77 1.65%
Auto & Truck 12 1.54 30.13% 14.76% 1.27 4.56%
Auto Parts 107 1.31 14.32% 21.71% 1.19 3.48%
Bank (Money Center) 32 1.78 54.77% 14.18% 1.29 22.99%
Banks (Regional) 5 1.49 33.30% 20.87% 1.21 12.31%
Beverage (Alcoholic) 19 0.78 1.81% 14.53% 0.77 1.49%
Beverage (Soft) 5 0.62 2.94% 8.60% 0.61 0.03%
Broadcasting 17 1.09 10.06% 13.38% 1.02 3.75%
Brokerage & Investment Banking 174 0.65 82.98% 13.79% 0.41 22.13%
Building Materials 48 1.23 8.96% 17.68% 1.16 1.76%
Business & Consumer Services 58 0.67 3.83% 12.00% 0.65 4.46%
Cable TV 8 1.21 27.13% 6.64% 1.02 12.30%
Chemical (Basic) 128 1.12 13.23% 20.03% 1.03 2.32%
Chemical (Diversified) 10 1.03 3.07% 26.39% 1.01 0.91%
Chemical (Specialty) 167 0.95 10.31% 21.17% 0.89 2.02%
Coal & Related Energy 2 1.28 2.78% 31.76% 1.26 26.81%
Computer Services 132 0.83 2.63% 16.06% 0.81 1.85%
Computers/Peripherals 6 0.41 9.20% 18.27% 0.38 3.94%
Construction Supplies 92 1.17 21.98% 16.82% 1.01 1.52%
Diversified 13 1.01 18.57% 16.43% 0.89 4.89%
Drugs (Biotechnology) 8 1.07 18.34% 10.18% 0.95 4.45%
Drugs (Pharmaceutical) 156 1.05 6.19% 21.11% 1.00 3.52%
Education 26 0.79 11.16% 11.70% 0.74 3.56%
Electrical Equipment 102 1.07 6.99% 15.69% 1.02 4.06%
Electronics (Consumer & Office) 8 1.08 3.34% 17.06% 1.06 1.03%
Electronics (General) 27 0.48 3.37% 14.97% 0.47 4.35%
Engineering/Construction 144 1.26 57.16% 15.18% 0.90 6.29%
Entertainment 60 0.75 46.68% 9.02% 0.56 3.37%
Environmental & Waste Services 10 1.17 5.31% 18.50% 1.12 8.64%
Farming/Agriculture 57 0.62 18.50% 16.37% 0.55 1.56%
Financial Svcs. (Non-bank & Insurance) 254 0.79 186.80% 15.80% 0.34 2.79%
Food Processing 185 0.90 7.74% 16.39% 0.85 2.65%
Food Wholesalers 32 0.56 17.18% 13.99% 0.50 4.55%
Furn/Home Furnishings 38 0.71 4.56% 19.91% 0.69 2.91%
 Effective Tax
Industry Name Number of firms Beta D/E Ratio rate Unlevered beta Cash/Firm value
Green & Renewable Energy 18 1.43 28.72% 11.70% 1.19 1.09%
Healthcare Products 13 0.75 2.55% 17.59% 0.74 2.15%
Healthcare Support Services 30 0.54 3.75% 16.63% 0.53 2.88%
Heathcare Information and Technology 14 1.47 3.37% 17.30% 1.43 3.35%
Homebuilding 1 -1.07 2.96% 33.33% -1.04 0.75%
Hospitals/Healthcare Facilities 24 0.82 5.95% 18.23% 0.79 2.09%
Hotel/Gaming 57 0.95 13.28% 14.28% 0.87 3.74%
Household Products 36 0.75 0.50% 13.29% 0.75 0.69%
Information Services 24 1.21 7.77% 22.06% 1.15 9.34%
Insurance (General) 2 2.00 133.96% 0.00% 1.03 8.26%
Insurance (Life) 7 1.30 1.13% 12.45% 1.29 4.52%
Insurance (Prop/Cas.) 2 1.63 0.57% 11.03% 1.62 13.24%
Investments & Asset Management 96 0.64 21.10% 14.32% 0.56 3.15%
Machinery 149 1.06 5.78% 18.70% 1.02 2.92%
Metals & Mining 39 1.21 34.66% 19.87% 0.97 6.28%
Office Equipment & Services 13 0.88 7.83% 22.46% 0.84 4.82%
Oil/Gas (Integrated) 1 1.42 86.30% 26.54% 0.89 9.28%
Oil/Gas (Production and Exploration) 6 1.26 130.02% 11.97% 0.66 8.00%
Oil/Gas Distribution 11 0.88 21.64% 12.96% 0.77 15.93%
Oilfield Svcs/Equip. 22 1.18 36.23% 17.13% 0.94 2.12%
Packaging & Container 79 0.89 47.34% 17.59% 0.67 3.78%
Paper/Forest Products 50 0.69 25.18% 17.03% 0.59 2.28%
Power 30 1.08 44.44% 16.88% 0.83 1.86%
Precious Metals 1 3.21 0.97% 0.00% 3.19 0.49%
Publishing & Newspapers 25 0.74 27.54% 14.70% 0.62 5.36%
R.E.I.T. 4 0.73 33.35% 12.92% 0.59 1.21%
Real Estate (Development) 137 0.88 29.56% 12.70% 0.73 3.20%
Real Estate (General/Diversified) 15 1.58 11.49% 15.48% 1.46 2.55%
Real Estate (Operations & Services) 30 0.77 21.41% 15.16% 0.67 1.99%
Recreation 11 0.40 26.15% 7.31% 0.34 1.81%
Reinsurance 1 1.77 0.00% 34.77% 1.77 74.26%
Restaurant/Dining 13 1.20 10.86% 15.38% 1.12 0.97%
Retail (Automotive) 4 0.39 12.32% 11.54% 0.36 3.31%
Retail (Building Supply) 2 1.41 14.77% 12.05% 1.28 1.92%
Retail (Distributors) 239 0.52 10.80% 12.49% 0.48 1.43%
Retail (General) 5 1.06 152.52% 4.19% 0.51 0.20%
Retail (Grocery and Food) 5 0.76 0.31% 10.31% 0.75 0.44%
Retail (Online) 13 1.48 2.26% 10.78% 1.46 2.13%
Retail (Special Lines) 28 1.04 15.53% 18.87% 0.94 1.11%
Rubber& Tires 16 1.27 20.39% 18.27% 1.11 1.33%
Semiconductor 8 2.08 7.74% 11.79% 1.97 0.48%
Semiconductor Equip 1 1.88 3.27% 22.46% 1.84 0.79%
Shipbuilding & Marine 20 1.25 29.42% 12.56% 1.03 3.15%
Shoe 12 0.40 3.97% 16.65% 0.39 0.70%
Software (Entertainment) 7 1.19 0.74% 16.40% 1.18 3.28%
Software (Internet) 7 0.49 2.28% 4.82% 0.48 2.20%
 Effective Tax
Industry Name Number of firms Beta D/E Ratio rate Unlevered beta Cash/Firm value
Software (System & Application) 74 1.17 3.08% 15.61% 1.14 7.92%
Steel 157 1.15 43.95% 17.39% 0.88 5.48%
Telecom (Wireless) 3 1.86 105.89% 10.13% 1.07 1.37%
Telecom. Equipment 20 1.20 22.23% 11.72% 1.04 4.28%
Telecom. Services 13 1.11 68.86% 9.66% 0.75 1.08%
Tobacco 5 0.65 0.15% 20.37% 0.65 1.17%
Transportation 38 1.13 24.59% 12.70% 0.96 3.82%
Transportation (Railroads) 1 1.48 1.69% 24.30% 1.46 7.50%
Trucking 12 0.84 19.64% 19.84% 0.73 1.29%
Utility (General) 0 0.00 NA 0.00% NA NA
Utility (Water) 1 1.73 19.13% 20.73% 1.52 12.31%
Total Market 4149 0.94 36.51% 16.29% 0.75 6.10%
Total Market (without financials) 3577 0.96 21.39% 16.53% 0.84 3.14%
 Marginal
Effective

Standard deviation in Average

operating income (last Beta: 2019-
Unlevered beta corrected for cash HiLo Risk Standard deviation of equity 10 years) Beta: 2019 Beta: 2020 Beta: 2021 Beta: 2022 23
1.42 0.4243 44.11% 156.14% 0.72 1.96 1.16 1.43 1.34
1.62 0.3889 36.86% 140.54% 1.38 1.30 1.53 1.92 1.55
1.01 0.2912 38.41% 421.56% 0.74 0.33 1.27 1.58 0.99
0.78 0.4345 41.30% 42.22% 0.63 0.50 0.70 0.74 0.67
1.33 0.2828 25.48% 19.13% 1.09 1.02 1.57 1.70 1.34
1.23 0.3272 31.37% 46.74% 0.95 0.73 1.38 1.59 1.18
1.67 0.3557 29.65% NA 1.01 1.15 2.03 2.60 1.69
1.38 0.2996 26.52% NA 1.52 0.99 1.67 2.28 1.57
0.78 0.3105 30.32% 90.50% 0.9 0.26 0.90 1.10 0.79
0.61 0.5017 38.56% 63.65% 0.25 0.20 0.54 0.54 0.43
1.06 0.4219 38.11% 57.50% 0.37 0.02 0.74 0.92 0.62
0.53 0.4225 44.34% 109.25% 0.46 0.35 0.42 0.49 0.45
1.18 0.4092 41.32% 60.97% 0.95 0.68 1.04 1.36 1.04
0.68 0.4141 40.91% 100.58% 0.98 0.54 0.64 0.68 0.70
1.16 0.4239 35.83% 62.77% 0.55 0.61 1.13 1.29 0.95
1.05 0.3722 36.53% 45.54% 0.85 0.59 1.04 1.22 0.95
1.01 0.2470 26.87% 58.53% 0.82 0.44 1.08 1.24 0.92
0.91 0.3630 34.69% 55.77% 0.91 0.69 1.15 1.27 0.99
1.72 0.4043 31.76% 19.75% 0.91 1.08 1.84 2.02 1.51
0.83 0.4417 42.66% 22.27% 0.59 0.58 0.77 0.81 0.72
0.40 0.4209 43.94% NA 0.72 0.25 0.64 0.76 0.55
1.03 0.3482 32.93% 57.17% 1.13 0.80 1.04 1.19 1.04
0.94 0.3000 27.08% 39.25% 1.09 0.70 1.32 1.31 1.07
0.99 0.3399 42.72% 33.85% 0.99 0.63 0.82 1.14 0.91
1.04 0.3526 34.18% 22.59% 0.65 0.64 1.13 1.19 0.93
0.76 0.4718 43.20% 167.97% 1.2 0.73 0.65 0.85 0.84
1.06 0.4219 39.47% 71.87% 1.05 0.87 1.12 1.19 1.06
1.07 0.4421 40.28% 117.97% 1.35 1.83 1.59 1.34 1.44
0.50 0.3763 38.18% 40.60% 0.7 0.51 0.64 0.68 0.61
0.96 0.4129 39.12% 47.98% 1.01 0.69 0.75 0.95 0.87
0.58 0.4438 42.94% 84.48% 0.33 0.26 0.47 0.59 0.45
1.23 0.3727 36.79% 163.89% 0.33 0.58 0.96 1.25 0.87
0.56 0.4173 38.91% 45.88% 0.71 0.60 0.73 0.67 0.65
0.35 0.4274 41.31% 59.90% 0.44 0.26 0.30 0.36 0.34
0.87 0.3994 38.30% 47.08% 0.94 0.75 0.97 1.03 0.91
0.52 0.4773 44.95% 78.45% 0.53 0.46 0.43 0.49 0.49
0.71 0.3534 31.40% 48.36% 0.69 0.66 0.90 0.99 0.79
 Standard deviation in Average
operating income (last Beta: 2019-
Unlevered beta corrected for cash HiLo Risk Standard deviation of equity 10 years) Beta: 2019 Beta: 2020 Beta: 2021 Beta: 2022 23
1.20 0.4513 50.43% 124.81% 0.9 0.60 0.75 0.80 0.85
0.76 0.3796 39.96% 146.00% 0.73 0.75 0.49 0.57 0.66
0.54 0.4304 38.79% 100.33% 0.72 0.63 0.80 1.00 0.74
1.48 0.3625 33.61% 90.08% 0.77 0.67 1.24 1.46 1.12
-1.05 0.4934 NA 41.06% -0.13 0.16 0.91 #VALUE! #VALUE!
0.80 0.2983 29.10% 160.36% 0.39 0.27 0.73 0.86 0.61
0.91 0.3610 36.93% 2443.91% 0.74 0.50 0.81 1.09 0.81
0.75 0.3424 34.82% 65.37% 0.4 0.39 0.74 0.79 0.61
1.27 0.4030 39.84% 42.59% 0.74 0.65 1.32 1.30 1.06
1.12 0.4723 43.25% 140.23% 0.68 0.31 1.33 0.04 0.70
1.35 0.2303 22.14% 31.21% 1.1 0.64 1.17 1.42 1.14
1.87 0.2336 24.52% 80.36% 1.22 0.51 1.19 1.63 1.28
0.57 0.4014 39.05% 107.83% 0.52 0.39 0.55 0.55 0.52
1.05 0.3725 36.82% 36.59% 0.86 0.54 1.01 1.13 0.92
1.04 0.4291 41.89% 52.87% 0.96 0.73 0.82 1.08 0.93
0.88 0.4771 46.08% 79.73% 0.43 0.76 0.71 0.84 0.72
0.98 0.2388 22.56% 50.27% 1.58 1.18 0.99 1.25 1.20
0.72 0.3721 34.87% 114.97% 0.86 0.54 0.64 1.27 0.81
0.91 0.3998 37.18% 62.62% 0.97 0.64 1.03 1.09 0.93
0.96 0.3889 35.22% 79.69% 1.11 1.13 1.22 1.31 1.15
0.69 0.4167 40.05% 29.96% 0.78 0.51 0.72 0.83 0.71
0.60 0.3783 34.81% 43.05% 0.51 0.42 0.64 0.95 0.62
0.84 0.3110 33.34% 76.06% 0.83 0.43 0.65 0.80 0.71
3.21 0.4584 46.42% NA 0.69 0.21 0.32 1.94 1.27
0.66 0.4171 35.35% 40.61% 0.68 0.55 0.73 0.78 0.68
0.60 0.1274 10.27% 87.82% NA 0.56 1.16 0.78 0.77
0.75 0.4299 43.85% 33.49% 0.69 0.57 0.57 0.68 0.65
1.50 0.3674 35.35% 30.44% 1.18 1.14 1.17 1.21 1.24
0.68 0.3201 35.86% 55.32% 0.5 0.25 0.52 0.64 0.52
0.34 0.4640 43.49% 378.06% 0.54 0.61 0.74 0.53 0.55
6.86 0.3135 29.47% 95.33% 0.78 1.21 6.75 10.51 5.22
1.13 0.3777 38.20% 201.57% 0.93 1.44 0.78 0.54 0.96
0.37 0.2924 31.88% 50.52% 0.73 0.35 0.39 0.58 0.48
1.30 0.3725 41.52% 131.47% 0.33 0.56 0.71 0.84 0.75
0.49 0.4593 41.62% 69.06% 0.39 0.44 0.50 0.46 0.46
0.51 0.4581 31.56% 2021.77% 1.22 0.68 1.34 1.43 1.04
0.76 0.4062 38.11% 154.07% 1.64 0.86 0.56 0.63 0.89
1.49 0.4705 44.48% NA 1.26 1.23 1.62 0.88 1.30
0.95 0.4044 38.02% 233.16% 1.33 0.79 0.64 1.12 0.97
1.12 0.3963 32.41% 32.82% 0.85 0.60 1.21 1.49 1.05
1.98 0.5065 55.18% 1482.85% 0.74 0.73 1.16 1.77 1.28
1.85 0.2812 36.49% 123.73% NA NA 2.58 3.20 2.54
1.07 0.4168 43.86% 31.69% 0.92 0.65 1.05 1.02 0.94
0.39 0.3771 33.13% 46.52% 1 1.01 1.05 1.08 0.91
1.22 0.3686 38.61% 89.51% 0.92 0.59 1.16 1.13 1.00
0.49 0.4695 44.14% 3825.34% 0.33 1.04 0.52 0.65 0.61
 Standard deviation in Average
operating income (last Beta: 2019-
Unlevered beta corrected for cash HiLo Risk Standard deviation of equity 10 years) Beta: 2019 Beta: 2020 Beta: 2021 Beta: 2022 23
1.24 0.3966 44.34% 35.06% 0.79 0.83 1.20 1.20 1.05
0.93 0.3974 40.42% 88.72% 0.81 0.54 0.74 1.01 0.81
1.08 0.3312 35.06% 79.09% 0.68 0.58 0.73 0.94 0.80
1.08 0.3818 40.28% 139.11% 0.77 0.75 1.20 1.28 1.02
0.76 0.4232 41.91% 70.90% 0.41 0.21 0.96 1.01 0.67
0.65 0.3050 24.35% 154.64% 0.92 0.69 0.94 1.02 0.84
1.00 0.4061 41.03% 29.84% 0.68 0.41 0.77 0.99 0.77
1.58 0.1988 24.37% 20.96% 1.25 0.68 1.52 1.91 1.39
0.74 0.4435 42.67% 64.35% 1.88 0.78 0.71 0.70 0.96
NA 0.0000 0.00% NA 0.81 NA NA NA 0.81
1.74 0.2689 38.60% 20.74% 0.81 0.81 2.37 2.21 1.59
0.80 0.4013 38.60% 42.88% 0.74 0.58 0.81 0.90 0.77
0.86 0.3993 38.25% 43.21% 0.79 0.62 0.88 0.97 0.82
Company Comparison Model 13:03 on 11/05/2021

Company Ticker Last Period Price Market Cap - Enterprise Sales EBITDA EBIT Sales EBITDA EV/Sales EV/EBITDA EV/Sales EV/EBITDA
End Date Consolidated Value LTM LTM LTM FY1 FY1 LTM LTM FY1 FY1
Mahindra & Mahindra Limited (NSEI:M&M) 30-Sep-23 1,646.40 1,833,509.70 2,714,359.40 1,325,527.20 221,851.90 194,963.10 1,418,003.52 268,046.58 2.05 12.24 1.91 10.13
Tata Motors Limited (BSE:500570) 31-Dec-23 914.95 3,348,202.50 4,114,809.90 4,238,738.10 450,145.50 326,040.20 4,605,450.69 653,149.61 0.97 9.14 0.89 6.30
TVS Motor Company Limited (BSE:532343) 31-Dec-23 2,037.40 967,942.50 1,194,670.80 372,850.10 49,203.60 43,254.80 347,960.00 40,354.69 3.20 24.28 3.43 29.60
Ashok Leyland Limited (NSEI:ASHOKLEY) 31-Dec-23 173.45 509,271.30 821,577.70 454,156.10 71,913.90 63,451.10 - - 1.81 11.42
Bajaj Auto Limited (NSEI:BAJAJ-AUTO) 31-Dec-23 7,784.85 2,204,511.90 2,149,782.60 432,663.40 92,276.80 89,297.60 491,591.63 97,890.75 4.97 23.30 4.37 21.96
Hero MotoCorp Limited (BSE:500182) 31-Dec-23 4,908.50 981,315.90 952,804.20 369,519.60 53,223.20 47,376.80 - - 2.58 17.90
###

Mean 2.6x 16.4x 2.7x 17.0x

Median 2.3x 15.1x 2.7x 16.0x
High 5.0x 24.3x 4.4x 29.6x
Low 1.0x 9.1x 0.9x 6.3x

Valuation
Target Co (Maruti Suzuki) 1,175,713.00 131,278.00 105,101.00 1,516,669.77 172,890.68
EV/Sales EV/EBITDA EV/Sales EV/EBITDA
Mean (EV) 3,538,629.14 3,052,721.76 2,150,330.16 4,024,536.52 2,938,782.66
Plus: Cash 373.00
Less: Debt 39,207.00
Equity Value 3,499,795.14
Equity Value/Share 11,584.89

John Colley
Market Data and Price 32 Jonathan Swan
Paradeep Phosphates Limited (NSEI:PARADEEP) > Comparable M&A Transactions

Announced Date Transaction ID Target Buyer/Investor Seller Target TEV(INR mm)

Jan-15-2020 IQTR651792197 Hyundai Motor Company - The Capital Group Companies, Inc. 8547665.5

Aug-31-2019 IQTR635455100 Chongqing Sokon Industrial Group Dongfeng Motor Group Company Limited Chongqing Well-off Holding 642912.7
Co., Ltd. (nka:Seres Group Co.,Ltd.) Co.,Ltd., Chongqing Yu'an
Automobile Industry Co., Ltd.

Jun-01-2017 IQTR433090176 Beijing Electric Vehicle Co., Ltd. Daimler Greater China Ltd. Shenzhen Jinggangshan New 390993.9
(nka:BAIC BluePark New Energy Energy Investment Management
Technology Co.,Ltd.) Co., Ltd.

Oct-11-2016 IQTR415070346 Yongkang Zotye Auto Co., Ltd. Tech-new Group Co.,Ltd. - 246642.8
(nka:Zotye Automobile Co., Ltd)
Oct-11-2016 IQTR415071177 Yongkang Zotye Auto Co., Ltd. Tech-new Group Co.,Ltd. Great Wall (Deyang) Changfu 246642.8
(nka:Zotye Automobile Co., Ltd) Investment Fund Partnership
Enterprise (Limited Partnership)

Sep-24-2015 IQTR313498709 Hyundai Motor Company - Korea Shipbuilding & Offshore 8547665.5
Engineering Co., Ltd.

Max 8547665.5
Median 516953.3
Mean 3103753.9
Min 246642.8

Target Co (Maruti
Suzuki)
Mean (EV) 2,231,726.00
Cash 373.00
Debt 39,207.00
Equity 2,192,892.00
Value/Share
Equity 7,258.83
Value/Share
Implied TEV/LTM Implied TEV/LTM
Revenue EBITDA

0.8x 13.2x

0.9x 26.8x

1.7x -

0.7x 7.2x

0.7x 7.2x

0.8x 6.8x

1.7x 26.8x
0.8x 7.2x
0.9x 12.2x
0.7x 6.8x

1,175,713.00 131,278.00
 999356.05 2,231,726.00
999,356.05 2,231,726.00
 Maruti Suzuki valuation

Methods
DCF method (FCFF)
GPC method
GTM method
Final Fair Value of Enterprise Value
Plus: Cash
Less: Debt
Equity Value
Shares Outstanding

Equity Value/Share

Current Price

Target Price Upside

Maruti Suzuki valuation

Enterprise
value (in cr) Weightage
3,611,693 50% 1,805,847
3,538,629 40% 1,415,452
2,231,726 10% 223,173
100% 3,444,471
373
39,207
3,405,637
302.10

11273.21

10,710.00

5%
Comps
Metric Comps EV Net Debt Equity Value Shares Share Price Key Assumptions - Valuation Co. Inc.
EV/Revenue (LTM) 2.6x 3,052,722 38,834 3,013,888 302 9,976.46 Current Price 10,710.00 Revenue (LTM) 1,175,713
EV/EBITDA (LTM) 16.4x 2,150,330 38,834 2,111,496 302 6,989.39 Shares Outstanding 302 EBITDA (LTM) 131,278
EV/Revenue (FY1) 2.7x 4,024,537 38,834 3,985,703 302 13,193.32 Debt 39,207 Revenue (FY1) 1,516,670
EV/EBITDA (FY1) 17.0x 2,938,783 38,834 2,899,949 302 9,599.30 Cash 373 EBITDA (FY1) 172,891

Lo 9,599.30
Hi 13,193.32

Precedents
Metric Precedents EV Net Debt Equity Value Shares Share Price Football Field Data
EV/Revenue 1.7x 1,998,712 38,834 1,959,878 302 6,487.51 lo (bar) lo (label) hi (bar) hi (label)
EV/EBITDA 17.0x 2,231,726 38,834 2,192,892 302 7,258.83 Comps 9,599.30 9,599.30 13,193.32 13,193.32
Precedents 6,487.51 6,487.51 7,258.83 7,258.83
DCF 10,585.46 10,585.46 13,901.37 13,901.37
Lo 6,487.51 52 wk hi/lo 8,076.05 8,076.05 10,932.85 10,932.85
Hi 7,258.83

Valuation Summary

Valuation Summary - Equity Value per Share (rs)

14,000.00

13,000.00

12,000.00

11,000.00
10710

10,000.00

9,000.00

8,000.00

7,000.00

6,000.00
Comps Precedents DCF 52 wk hi/lo