This excel sheet is for sole use of the buyer from drvijaymalik.com.

An
This sheet consists of interpretation and description of various parame
Parameter

Proft & Loss Statement Ana

Sales

Operating Profit

Operating Profit Margin (OPM)

Other Income

Interest

Profit before tax (PBT)

Tax%

Net profit after tax (PAT)

Net Profit Margin (NPM%)

You may read more about the Profit and Loss statement analysis in the following article:
 Free Cash Flow Analysis

Cash from Operating Activity (CFO)

Capex (NFA+WIP change+Dep)

FCF (Free Cash Flow)

Total Debt (D)

Share Capital

Dividend Paid (Div) Without DDT

Cash + Investments (CI +NCI)

FCFE (Post Int. exp.)

Total Div 10 Yrs

Inc. in Debt in 10Yrs

Cash+Investments

FCF/CFO

Interest outgo (Rs. Cr.)

You may read more about the Free Cash Flow analysis in the following articles:

Return Ratios and working c

Self-Sustainable Growth Rate (SSGR)

Trade Receivables
Inventory
PBT/Avg. NFA (<10%,>25%)

ROE on Avg Equity (<7%,>25%)

ROCE (EBIT on Avg CE/TA) (<10%,>35%)

Incremental ROE 3Yr Rolling

Operating Efficiency Rati

Net Fixed Asset Turnover (High is better)

Receivables days (Low is better)

Inventory Turnover (High is better)

Working capital cycle days (Rec + Inv Days)

You may read more about the assessment of operating efficiency of a company in the following article:

Balance Sheet Analysis

Net Fixed Assets (NFA)

Capital Work in Progress (CWIP)

Dividend Paid (Div) Without DDT

Dividend Payout (Div/PAT)

Retained Earnings (RE=PAT-Div)

Price to earning
Mcap

Cash + Investments (CI +NCI)

Total Debt (D)

Total Equity (E)

Debt to Equity ratio (D/E)

Cost of funds

Interest outgo (Rs. Cr.)

Interest Coverage (OP/Int. Out)

You may read more about the Balance Sheet Analysis of a Company in the following article:

Cash Flow Statement Anal

Cash from Operating Activity (CFO)

Cash from Investing Activity (CFI)
Cash from Financing Activity (CFF)

Net Cash Flow (CFO+CFI+CFF)

Cash & Eq. at the end of year

You may read more about the Cash Flow Statement Analysis of a Company in the following articles:

Wealth Creation Assessm

Total Retained Earnings (RE) in 10 Yrs (A)

Total increase in Mcap in 10 yrs (B)

Value created per INR of RE (B/A)

You may read more about the wealth creation ability and other parameters for assessment of management quality in the fo

Costs as a percentage of S

Raw Material

Power & Fuel

Employee Costs

Selling & Admin Costs

Other Manufacturing Expenses

Other Expenses

Growth Trends

Sales Growth

OPM

PAT Growth

Avg. PE

Div Growth

Debt

Book Value

Current Share Market Da

CMP

P/E

P/B

P/E*P/B

Div Yield

Market Cap

Closing share price on March 31, 10 years

back

*Please note that if the data for any of the last 4 quarter is absent in the "Data Sheet", then the column L, which contains la
el sheet is for sole use of the buyer from drvijaymalik.com. Any copying and sharing of this exc
This sheet consists of interpretation and description of various parameters used in the sheet "Dr. Vijay Malik Analysis
Interpretation

Proft & Loss Statement Analysis

Higher the sales growth the better. However, very high growth rates in
excess of 35-50% are usually unsustainable

Higher the operating profit the better

Higher the OPM the better.

Focus on the trend of OPM over the years. If OPM has been fluctuating a
lot over the years in a cyclical manner, then it means that the company
does not have pricing power over its customers and is not able to pass on
increase in raw material costs to them.

On the contrary, if OPM is stable/improving over the years, then it means

that the company has sustainable advantages (MOAT) and is able to pass
on the increase in raw material costs to its buyers to protect its margins

Compare other income with the cash + Investments held by the company. If
the non operating income is not equal to atleast the bank FD return on the
cash + investments, then the investor should analyse it deeper to see where
the cash has been invested by the company, which is not yielding atleast
bank FD return.

Do not get influenced by a low interest expense. Always try to find out
whether company has been capitalizing the interest cost. Simple method is
to multiply total debt with an assumed interest rate and then find out the
total interest outgo as has been explained in the calculation of interest
coverage below.

Tax payout ratio should be near the standard corporate tax rate in India i.e.
about 30-33%. If the tax payout ratio is low, then invetsor should try to find
out if the company has any tax incentives like a unit operating out of special
economic zone (SEZ) etc.
Higher the PAT growth rate the better.
Higher the NPM the better.

Be wary of companies, which show high sales growth with declining/not

improving NPM. Companies, which chase growth at the cost of profitability
usually do not create sustainable wealth for shareholders

fit and Loss statement analysis in the following article:

 Free Cash Flow Analysis

Higher the CFO the better. Always compare CFO with PAT to see if the
funds are getting stuck or released from working capital

It is an important parameter which represents the money spent by the

company in its operations/plants which is not reflected in the P&L
statement.

An investor should always compare Capex with CFO to see whether the
company is able to fund its capital expansion through its operating cash
flow

Companies that show high sales growth without much capex have the
potential of turning out to be good investments.

Free cash flow is the most important parameter of the company analysis. It
is like the discretionary surplus that the company makes, which can be
distributed to reward the shareholders.

I believe that if a company is not able to generate FCF, then it should be

avoided by investors, however good its sales growth and profitability
margins be.

Lower the debt, the better.

Debt represents the excess funds used by the company than what it is
generating from its operations. It is like living beyond your means.

ideally, share captial should be constant or decrease due to buy back.

Increase in share captial over the years, which is not due to bonus shares,
represents dilution of stake of existing shareholders.

A company, which generates FCF should pay dividends to shareholders to

share the fruits of growth with the shareholders.

Very high cash levels in companies, which do not payout dividends should
be looked with caution. It might be that the cash shown on the balance
sheet is fictitious.

Free Cash Flow to Equity (FCFE): Higher the FCFE, the better.

The interpretation is same as FCF (Free Cash Flow) shared above in terms of
availability of surplus cash with the company after meeting captial
expenditure. FCFE is more stringent than FCF as in addition to deducting
Capex, it also deducts interest payment from CFO
 A decline in debt over the years is better

Companies with good cash generation over the years will witness their total
debt decline over the years whereas the companies, which rely on debt to
fund their growth, will witness the total debt increase over the years

Very high cash levels in companies, which do not payout dividends should
be looked with caution. It might be that the cash shown on the balance
sheet is fictitious.

Ideally the FCF generated by the company should be more or less similar
to the sum of dividends paid out and the cash+investments held. If there
is a significant difference in FCF and Div+cash+Investment, then the
investor should do further analysis to see the usage/sources of cash

Higher the proportion of Free Cash Flow out of Cash Flow from Operations,
the better.

lower the interest outgo the better.

Cash Flow analysis in the following articles:

Return Ratios and working capital

SSGR higher than the sales growth rate is desirable.

Lower the trade receivables, the better it is for the company

Lower the inventory, the better it is for the company
Higher the PBT/Avg. NFA, the better

Higher the ROE, the better.

However, always be cautious with the companies with high ROE and high
Debt/Equity.

In such companies high leverage is the reason for high ROE, which is not
sustainable

Higher the ROCE, the better

Ideally, incremental ROE 3 years rolling should be stable or improving.

Operating Efficiency Ratios

Higher the NFAT, the better.

High NFAT represents that the company is able to use its fixed assets in a
very efficient manner (many a times, due to the nature of its business) and
does not require to do a lot of capex)

Lower the receivables days, the better. It means that the company is not
giving higher credit period to customers to generate sales.

In case of fictitious sales where cash is not received from customers, the
company will see increasing receivables days.

Higher the inventory turhover ratio, the better.

Lower inventory turnover means that the company is accumulating a lot

of inventory, which might become obsolete later.

In the extreme cases, the inventory being shown might be fictitious and
may be an indicator of underlying fraud.
 Lower the working capital days, the better for the company

ssment of operating efficiency of a company in the following article:

Balance Sheet Analysis

Increase in NFA means that the company has done capacity addition, which
should lead to higher sales/income in future.

Increase in CWIP means that the company is currently executing any

project/capacity expansion.

Once the underconstruction project is complete, it is shifted from CWIP to

NFA.

A company, which generates FCF should pay dividends to shareholders to

share the fruits of growth with the shareholders.

its good if the dividend payout ratio is constant or improving. It means that
the company follows:

1. a stable dividend policy.

2. is interested in sharing higher rewards of the growth with shareholders
with higher growth in business

Cumulative retained earnings should be compared with cumulative increase

in market capitalization over the years.

Lower the P/E ratio, the better.

 Lower the current market cap, the better.

However, I do not advise investing in companies with market capitalziation

less than INR 25 cr.

Cumulative retained earnings should be compared with cumulative increase

in market capitalization over the years.

Very high cash levels in companies, which do not payout dividends should
be looked with caution. It might be that the cash shown on the balance
sheet is fictitious.

Lower the debt, the better.

Debt represents the excess funds used by the company than what it is
generating from its operations. It is like living beyond your means.
Compare the increase in equity with the retained earnings for the year.
They should ideally be the same.

lower the debt to equity ratio, the better.

However, more than the debt to equity ratio, it is important to check the
debt serviceability by way of interest coverage and FCF.

There have been cases where the company had low debt to equity ratio,
but still faced financial stress as the operating profit & cash was not
sufficient to meet debt obligations.

lower the interest outgo the better.

Higher the interest coverage, the better.

nce Sheet Analysis of a Company in the following article:

Cash Flow Statement Analysis

Higher the CFO the better. Always compare CFO with PAT to see if the
funds are getting stuck or released from working captial
 If higher outflow in CFI, then read the annual report to find out whether the
same is for capex or other investments
Contains debt repayments, interest payments, dividend payments
net cash made/consumed by the company in a year.

The higher the net cash flow the better

Very high cash levels in companies, which do not payout dividends should
be looked with caution. It might be that the cash shown on the balance
sheet is fictitious.

h Flow Statement Analysis of a Company in the following articles:

Wealth Creation Assessment

Cumulative retained earnings should be compared with cumulative increase

in market capitalization over the years.

Cumulative retained earnings should be compared with cumulative increase

in market capitalization over the years.

At least INR 1 of incease in market capitalization should have happened for

every INR 1 retained by the company. Otherwise, it is a wealth destroying
company for shareholders.

The higher the value created, the better.

lth creation ability and other parameters for assessment of management quality in the following article:

Costs as a percentage of Sales

It is preferrable to have declining or stable Raw material costs as a % of
sales over the years. It indicates that the company is able to pass on
increase in raw material costs to its customers
It is preferrable to have declining or stable power & fuel costs as a % of
sales over the years.

It is preferrable to have declining or stable employee costs as a % of sales

over the years. Investors may also compare employee costs of a company
with its peers to find out whether there are any major differences

It is preferrable to have declining or stable Selling & Admin costs as a % of

sales over the years.
It is preferrable to have declining or stable other manufacturing expenses
as a % of sales over the years.
It is preferrable to have declining or stable other expenses as a % of sales
over the years.

Growth Trends

Higher the sales growth the better. However, very high growth rates in
excess of 35-50% are usually unsustainable

Higher the OPM the better.

Focus on the trend of OPM over the years. If OPM has been fluctuating a
lot over the years in a cyclical manner, then it means that the company
does not have pricing power over its customers and is not able to pass on
increase in raw material costs to them.

On the contrary, if OPM is stable/improving over the years, then it means

that the company has sustainable advantages (MOAT) and is able to pass
on the increase in raw material costs to its buyers to protect its margins

Higher the PAT growth rate the better.

Lower the P/E ratio, the better.

if the company generates positive FCF, then Higher the dividend growth
rate, the better

If FCF is negative, then the dividend is funded by debt and the investor
should not take any comfort of such dividend growth rate.

Lower the debt, the better.

Debt represents the excess funds used by the company than what it is
generating from its operations. It is like living beyond your means.

Higher the increase in book value over the years, the better.

Current Share Market Data

 Ignore the absolute level of current market price. It does not matter
whether the current price is INR 10 or INR 10,000/-.

Always focus on other parameters of the company assessment

Lower the P/E ratio, the better.

Lower the P/B ratio, the better.

Lower the P/E* P/B multiplication number, the better.

if the company generates positive FCF, then Higher the dividend yield, the
better

If FCF is negative, then the dividend is funded by debt and the investor
should not take any comfort of such dividend yield.

Lower the current market cap, the better.

However, I do not advise investing in companies with market capitalziation

less than INR 25 cr.

y of the last 4 quarter is absent in the "Data Sheet", then the column L, which contains last 12 months (TTM) figure, will remain blank.
k.com. Any copying and sharing of this excel sheet is prohibited.
arious parameters used in the sheet "Dr. Vijay Malik Analysis"
Description

tatement Analysis

Represents the operating income for the company in a given financial year.

The conditional formatting highlights the years where sales increased from previous year as "Green" and
years where sales decreased from previous year as "Red"
It represents EBITDA - Non Operating Income. EBITDA = Earnings before Interest, Tax, Depreciation &
Amortization.

= Operating Profit/Sales.

The conditional formatting highlights the years where OPM increased from previous year as "Green" and
years where OPM decreased from previous year as "Red"

Represents the non operating income for the financial year

Represents the interest amount expensed by the company in a financial year

Represents the profit before tax (PBT) for the financial year

=Tax/Sales. Represents the tax payout of the company for the financial year.

The conditional formatting highlights the years where Tax % is >29.5% as "Green" and years where Tax
% is <29.5% as "Red"
Represents the net profit reported by the company for the financial year

=PAT/Sales.

The conditional formatting highlights the years where NPM increased from previous year as "Green" and
years where NPM decreased from previous year as "Red"

How to do Financial Analysis of Companies

Flow Analysis

Represents the CFO for the financial year as reported by the company in its cash flow statements.

The conditional formatting highlights the years where CFO is greater than PAT as "Green" and years
where CFO is less than PAT as "Red"

Represents the capital expenditure done by the company in a financial year. Capex = Depreciation +
Increase in (NFA+CWIP) over the year.

The conditional formatting highlights the years where Capex is less than CFO as "Green" and years
where Capex is higher than CFO as "Red"

FCF=CFO - Capex.

Represents the total debt of the company at the financial year ending date.

The conditional formatting highlights the years where total debt decreased from previous year as
"Green" and years where total debt increased from previous year as "Red"

Represents the issued and paid up share capital of the company at the end of financial year. Capital
increases due to either by raising further equity by the company or by issuance of bonus shares. Capital
is decreased in cases of share buyback by the company.

The conditional formatting highlights the years where Share Capital decreased from previous year as
"Green" and years where Share Capital increased from previous year as "Red"

Represents the dividend paid by the company in a financial year. The dividend shown here does not
include the dividend distribution tax (DDT).

The conditional formatting highlights the years where Dividend increased from previous year as "Green"
and years where Dividend decreased from previous year as "Red"

=Cash & equivalesnt + Current Investments + Non Current Investments held by the company at the end
of the financial years

FCFE = CFO-Capex-Interest Expense from P&L

The formula assumes the deduction of all interest payments for the company as the capitalized interest
is deducted as a part of Capex and the non-capitalized interest is deducted as interest expense from P&L
 Represents total dividend paid by the company over last 10 years

If the total debt has decreased over last 10 years, then this cell will be highlighted as "Green". If the
total debt has increased in last 10 years, then the cell will be highlighted "Red"

Represents the cash & equivalents + Current Investment + Non Current Investment held by the
company at the end of latest financial year

Represents the proportion of CFO, which has become available as free cash flow (FCF) to the
shareholders in last 10 years.

Higher proportion of CFO becoming available as FCF indicates low capex requirements, which is a
feature to identify cash cows.

=Cost of funds*(average of total debt at the start and end of the financial year).

The interest outgo, calculated on total debt, takes care of the interest that has been capitalized by the
company and therefore, has not been shown as interest expense in the P&L statement.

Free Cash Flow: A Complete Guide to Understanding FCF

3 Simple Ways to Assess Margin of Safety while buying stocks

and working capital

Represents the debt-free self sustainable growth rate potential of a company. It has been observed that
companies growing at a higher rate than SSGR are using more resources than their inherent operations
can produce and therefore, witness increasing debt levels. Similarly, the companies that are growing at
a rate less than or equal to SSGR are able to sustain their growth rates without raising debt/see
declining debt levels.

It is to be kept in mind that SSGR does not take into account the funds getting blocked or released from
working capital

You may read more about SSGR in the following article:

https://www.drvijaymalik.com/2015/06/self-sustainable-growth-rate-measure-of.html

shows the total money consumed in or released from trade receivables over last 10 years
shows the total money consumed in or released from inventory over last 10 years
 =PBT/average of Net Fixed Assets at the start and the end of the financial year

The conditional formatting highlights the years where PBT/NFA is > 25% as "Green" and years where
PBT/NFA is <10% as "Red". This is to highlight that if a company is not able to earn at least 10% or Bank
FD rate from its fixed assets, then it should ideally sell all its assets and put the amount in a bank fixed
deposit and earn higher return without taking the pains of running a business.

=PAT/average of shareholder's equity at the start and the end of the finanical year.

The conditional formatting highlights the years where ROE is > 25% as "Green" and years where ROE is
<7% as "Red". This is to highlight that if a company is not able to earn at least 7% post tax from its equity
or shareholders' funds, then it should ideally put its entire equity in a bank fixed deposit and earn higher
return without taking the pains of running a business.

=EBIT/average of total assets at the start and the end of the financial year. EBIT = Earnings before
Interest and Tax.

The conditional formatting highlights the years where ROCE is > 35% as "Green" and years where ROCE
is <10% as "Red". This is to highlight that if a company is not able to earn at least 7% pre-tax ROCE from
its assets, then it should ideally put its entire assets in a bank fixed deposit and earn higher return
without taking the pains of running a business.

Represents the incremental returns/profits generated by the earnings retained by the company over
any consecutive three years period. Represents the efficiency of utilization of incremental money being
deployed by the company management in its operations.

The conditional formatting highlights the years where incremental ROE increased from the previous
period as "Green" and years where incremental ROE decreased from previous years as "Red"

Efficiency Ratios

=Sales/average of net fixed assets at the start and end of a financial year.

The conditional formatting highlights the years where NFAT increased from previous year as "Green"
and years where NFAT decreased from previous year as "Red"

=365/(Sales/average of account receivables at the start and end of the financial year)

The conditional formatting highlights the years where receivables days decreased from previous year as
"Green" and years where receivables days increased from previous year as "Red"

=Sales/average of inventory at the start and the end of the financial year

The conditional formatting highlights the years where inventory turnover increased from previous year
as "Green" and years where invenotry turnover decreased from previous year as "Red"
 The formula calculates working capital days as a sum of receivables days and inventory days. It does not
take into account payables days as otherwise companies can easily mask poor working capital position
by delaying the payment to suppliers/vendors.

The conditional formating highlights the cells in which working capital days have decreased (i.e.
improved) over previous year as "Green" and the cells in which the working capital days have increased
(i.e. deteriorated) over previous year as "Red"

How to Analyse Operating Performance of a Company

Sheet Analysis

Represents the net fixed assets of the company after factoring in the accumulated depreciation at the
end of a financial year

Represents the capital work in progress (CWIP) of the company at the end of a financial year. CWIP
usually shows the projects under execution by the company. Once the projects get completed and
become operational, they are shifted from CWIP to the fixed assets (NFA).

Represents the dividend paid by the company in a financial year. The dividend shown here does not
include the dividend distribution tax (DDT).

The conditional formatting highlights the years where Dividend increased from previous year as "Green"
and years where Dividend decreased from previous year as "Red"

=Dividend paid/net profit after tax.

This criteria helps in identification of any stable dividend payout policy, if it is being followed by the
company for paying dividend year on year

=Net profit after tax - Dividend Payout

Cumulative retained earnings of last 10 years are compared with the increase in market capitalization of
the company over last 10 years to see whether the company has created atleast equal wealth for its
shareholders than the earnings that has been retained by it over last 10 years. It helps in identifying
companies which have generated wealth for shareholders from those companies which have destroyed
wealth for shareholders.
= Share market price/earnings per share for the period

P/E ratio is an important criteria to arrive at valuation levels of any company's stock
 Represents the market capitalization of a company for the financial year. The share price taken here is
the average price for the month of april of each financial year.

Represents the cash & equivalents + Current Investment + Non Current Investment held by the
company at the end of latest financial year

Represents the total debt of the company at the financial year ending date.

The conditional formatting highlights the years where total debt decreased from previous year as
"Green" and years where total debt increased from previous year as "Red"
Represents the total shareholders' funds invested in the company at the end of financial year. It includes
paid up capital and reserves including retained earnings.

=Total Debt/Total Equity

It represents the extent of leverage that a company has in its capital structure. Higher D/E ratio
represents high leverage and vice versa

It is a manual entry field provided for the investors to put in the assumed cost of debt (Interest rate),
which the investor believes that lenders would be charging to the company for their loans.

The default value is 12%. The investor can change the value to her preference.

=Cost of funds*(average of total debt at the start and end of the financial year).

The interest outgo, calculated on total debt, takes care of the interest that has been capitalized by the
company and therefore, has not been shown as interest expense in the P&L statement.

=Operating profit/interest outgo

It represents the servicing ability of the company for the total interest outgo of the company, including
P&L and capitalized interest.

How to do Financial Analysis of Companies

atement Analysis

Represents the CFO for the financial year as reported by the company in its cash flow statements.

The conditional formatting highlights the years where CFO is greater than PAT as "Green" and years
where CFO is less than PAT as "Red"
 Represents the CFI for the financial year as reported by the company in its cash flow statements.
Represents the CFF for the financial year as reported by the company in its cash flow statements.

Represents the Net cash inflow/outflow (CFO+CFI+CFF) for the financial year et reported by the
company in its net flow statements.

Represents the net cash & equivalents reported by the company at the end of the financial year.

Please not that Cash & Equivalents shown here does not include Current Investments (usually FDs and
Mutual Funds) and Non Current Investments (Equities, JV etc.) made by the company

How to do Financial Analysis of Companies

Understanding Cash Flow from Operations (CFO)

tion Assessment

represents the sum of earnings retained and not distributed by the company over last 10 years

Represents the increase in market capitalization of the company since 10 years ago.

Please note that the increase in market capitalization has been taken upto the current date from the
market capitalization of 10 years before as I believe that the current market capitalization rather than
the market capitalization at the end of recent most financial year to be better representative of upto
date wealth generation data.

=Increase in market capitalization since 10 years ago/total retained earnings of last 10 years

it is expected that the company should atleast create a wealth of INR 1 in market capitalization for its
shareholders for every INR 1 of earnings retained by it.

uality in the following article:

How to do Management Assessment of a Company

rcentage of Sales

Formula used is (Raw Material Costs - Change in Inventory)/Sales for the year

Formula used is Power & Fuel costs/Sales for the year

Formula used is Employee costs/Sales for the year

Formula used is Selling & Admin Costs/Sales for the year

 Formula used is Other Mfr. Exp/Sales for the year

Formula used is Other Expenses/Sales for the year

th Trends

Represents the trend of growth in sales for last 10 years, last 7 years, last 5 years, last 3 years and the
growth in last 12 months over last financial year sales

Assessment of sales growth trend is essential to find out whether the company has been showing
consistent sales growth year on year or it is influenced by very high/low sales growth in any particular
year

Represents the trend of average Operating Profit Margin for last 10 years, last 7 years, last 5 years, last 3
years and the OPM in last 12 months

Represents the trend of growth in net profit after tax (PAT) for last 10 years, last 7 years, last 5 years,
last 3 years and the growth in last 12 months over last financial year PAT

Assessment of PAT growth trend is essential to find out whether the company has been showing
consistent PAT growth year on year or it is influenced by very high/low PAT growth in any particular year
Represents the trend of average Price to Earnings ratio (P/E) for last 10 years, last 7 years, last 5 years,
last 3 years and the OPM in last 12 months

Represents the trend of growth in Dividend for last 10 years, last 7 years, last 5 years and last 3 years

Represents the trend of growth in total debt for last 10 years, last 7 years, last 5 years and last 3 years
Represents the trend of growth in book value per share for last 10 years, last 7 years, last 5 years and
last 3 years

are Market Data

 Represents the closing market price of the stock of the company for previous trading day

Represents the latest price to earnings (P/E) ratio based on the current market price and the earnings
per share (EPS) for last 4 quarters/trailing twelve months (TTM). If the data of any of the last 4 quarters
is absent, then the cell would show P/E ratio based on last financial year earnings

The conditional formating highlights the cell as "Green" whenever the latest P/E ratio is less than 10
Represents the latest price to book value (P/B) ratio based on the current market price and the book
value at the end of recent most financial year

=latest P/E ratio * latest P/B ratio

The conditional formating highlights the cell as "Red" whenever the P/E*P/B ratio exceeds 22.5, which
is the maximum buy value guided by Benjamin Graham in his book "The Intelligent Investor"

=Dividend paid in last financial year/latest market capitalization

The conditional formatting highlights the cell as "Green" whenever the dividend yield is greater than 4%

Represents latest market capitalization of the company based on the closing price of the previous
trading day

it is a manual entry field, which is provided for the investor to punch in the split/bonus adjusted share
price of the company for the March 31 of the year 10 years back on her own so that she can get the
accurate increase in market capitalization since 10 years ago.

Please note that the default value is "0" and the formula for calculating increase in market capitalization
has been drafted in a manner that if "0" is put in this cell, then the increase in market capitalization is
shown as per the data provided by screener. However, if the investor puts in her value in this cell, then
the sheet will show the incresae in market capitalization as per her share price value.

ch contains last 12 months (TTM) figure, will remain blank.

ORIENTAL AROMATICS LTD SCREENER.IN

Narration Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Trailing Best Case Worst Case
Sales 202.24 216.82 309.33 355.06 350.92 455.56 505.70 752.55 759.43 708.83 872.20 872.20 812.74
Expenses 191.08 179.46 262.40 311.92 301.17 397.45 439.38 636.56 631.14 552.55 730.10 714.88 687.16
Operating Profit 11.16 37.36 46.93 43.14 49.75 58.11 66.32 115.99 128.29 156.28 142.10 157.32 125.58
Other Income -2.87 1.81 1.51 3.20 3.05 1.25 3.64 -9.41 6.18 1.03 4.61 - -
Depreciation 2.75 3.14 7.68 8.78 9.42 14.22 14.76 17.71 19.02 17.46 16.28 16.28 16.28
Interest 2.45 1.27 9.50 10.62 9.46 4.81 6.88 12.97 11.95 2.40 2.97 2.97 2.97
Profit before tax 3.09 34.76 31.26 26.94 33.92 40.33 48.32 75.90 103.50 137.45 127.46 138.07 106.33
Tax 0.97 10.82 11.15 7.68 11.23 14.72 17.99 26.02 16.75 35.03 34.45 27% 27%
Net profit 2.12 23.94 20.11 19.26 22.69 25.61 30.33 49.88 86.75 102.43 93.03 100.75 77.59
EPS 1.03 11.62 9.76 9.35 11.01 12.43 9.03 14.80 25.74 30.39 27.64 29.94 23.06
Price to earning 25.77 3.35 5.13 6.66 9.84 14.60 24.08 15.33 5.26 19.30 27.03 27.03 14.21
Price 26.52 38.90 50.10 62.30 108.33 181.55 217.39 226.95 135.30 586.50 747.15 809.15 327.71
NPM 1%
RATIOS:
Dividend Payout 0.00% 0.00% 5.12% 4.00% 3.39% 3.01% 5.54% 6.76% 9.71% 8.22%
OPM 5.52% 17.23% 15.17% 12.15% 14.18% 12.76% 13.11% 15.41% 16.89% 22.05% 16.29%
Tax payout 31.39% 31.13% 35.67% 28.51% 33.11% 36.50% 37.23% 34.28% 16.18% 25.49%
Book value per share 35.58 47.20 56.37 65.00 75.57 153.12 102.56 116.32 137.63 165.42
TRENDS: 10 YEARS 7 YEARS 5 YEARS 3 YEARS RECENT BEST WORST
Sales Growth 14.95% 12.58% 15.10% 11.91% 23.05% 23.05% 11.91%
OPM 15.45% 15.89% 16.50% 18.04% 16.29% 18.04% 15.45%
Price to Earning 14.21 15.26 17.60 16.73 27.03 27.03 14.21

Common Sizing Expenses

Sales 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Raw material Expenses 70% 68% 68% 68% 62% 64% 65% 69% 64% 58%
Power and fuel cost 8% 10% 9% 8% 8% 6% 6% 5% 5% 5%
Other Mfr. Exp 2% 3% 4% 5% 5% 5% 5% 4% 5% 6%
Employee Cost 5% 5% 4% 4% 4% 5% 5% 4% 5% 6%
Selling and admin 2% 3% 3% 3% 3% 5% 5% 5% 5% 5%
Other Expenses 1% 0% 1% 1% 1% 2% 1% 1% 1% 1%
OPM 5.52% 17.23% 15.17% 12.15% 14.18% 12.76% 13.11% 15.41% 16.89% 22.05%
ORIENTAL AROMATICS LTD SCREENER.IN

Narration Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21
Sales 211.72 204.16 175.44 169.69 113.26 183.83 190.68 221.38 229.67 230.47
Expenses 175.45 177.09 147.43 133.57 94.93 134.67 136.86 187.86 194.99 210.39
Operating Profit 36.27 27.07 28.01 36.12 18.33 49.16 53.82 33.52 34.68 20.08
Other Income 0.07 1.54 1.72 3.69 0.57 0.33 0.27 1.31 1.07 1.96
Depreciation 4.52 4.67 4.70 5.13 4.62 4.62 4.23 3.99 3.99 4.07
Interest 2.85 3.85 1.70 3.56 0.77 0.32 0.26 1.05 0.68 0.98
Profit before tax 28.97 20.09 23.33 31.12 13.51 44.55 49.60 29.79 31.08 16.99
Tax 10.42 -6.03 5.42 16.79 3.46 11.38 13.25 8.38 8.19 4.63
Net profit 18.55 26.12 17.91 14.32 10.04 33.16 36.36 21.41 22.90 12.36

OPM 17% 13% 16% 21% 16% 27% 28% 15% 15% 9%
ORIENTAL AROMATICS LTD SCREENER.IN

Narration Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Cash from Operating Activity 14.25 -13.93 31.29 17.25 41.84 39.42 9.48 -23.95 184.56 18.56
Cash from Investing Activity -13.99 -67.48 -5.65 -5.90 -16.28 -16.87 -26.23 -12.41 -15.63 -32.08
Cash from Financing Activity 49.82 29.90 -23.95 -11.75 -25.75 -24.18 19.00 37.63 -159.50 15.61
Net Cash Flow 50.08 -51.51 1.69 -0.39 -0.20 -1.63 2.25 1.27 9.43 2.09
Enter Fixed Assets Expenditure 19 15 24 26 41 35 66 136 69 77
using screener in +
Free Cash Flow (4.75) (28.93) 7.29 (8.75) 0.84 4.42 (56.52) (159.95) 115.56 (58.44)
Cash EPS 6.92 -6.76 15.19 8.37 20.31 19.14 2.82 -7.11 54.77 5.51
Reinvestment(capex/cfo) 133% -108% 77% 151% 98% 89% 696% -568% 37% 415%
Cumulative of 10 years
CFO 318.77
CFI -212.52
CFF -93.17
ORIENTAL AROMATICS LTD SCREENER.IN

Narration Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Equity Share Capital 5.13 5.13 5.13 5.13 5.13 5.13 8.41 16.83 16.83 16.83
Reserves 68.16 92.10 111.00 128.78 150.54 310.29 336.20 375.16 446.98 540.63
Borrowings 101.24 128.34 118.90 119.49 106.33 99.69 130.67 183.41 50.76 77.86
Other Liabilities 26.37 38.04 62.93 60.48 54.13 80.07 101.69 97.78 94.31 110.28
Total 200.90 263.61 297.96 313.88 316.13 495.18 576.97 673.18 608.88 745.60

Net Block 32.67 124.99 131.12 125.16 136.26 211.36 211.66 244.81 236.18 236.48
Capital Work in Progress 20.09 2.32 0.02 0.16 0.67 15.05 39.92 0.80 1.74 12.49
Investments 0.08 0.08 - - - 2.00 2.00 - 6.00 9.60
Other Assets 148.06 136.22 166.82 188.56 179.20 266.77 323.39 427.57 364.96 487.03
Total 200.90 263.61 297.96 313.88 316.13 495.18 576.97 673.18 608.88 745.60

Working Capital 121.69 98.18 103.89 128.08 125.07 186.70 221.70 329.79 270.65 376.75
Debtors 29.73 37.90 63.60 78.60 78.49 104.28 134.65 161.04 152.35 189.13
Inventory 44.45 74.65 79.19 83.18 73.27 114.45 132.76 202.66 162.34 227.59
Debtor Days 53.66 63.80 75.05 80.80 81.64 83.55 97.19 78.11 73.22 97.39
Return on Equity 3% 25% 17% 14% 15% 8% 9% 13% 19% 18%
Return on Capital Emp 18% 18% 15% 17% 13% 12% 17% 21% 24%
 Report Date Mar-12 Mar-13 Mar-14 Mar-15
ORIENTAL AROMATICS LTD
Balance Sheet
Equity Share Capital 2.55% 1.95% 1.72% 1.63%
Reserves 33.93% 34.94% 37.25% 41.03%
Borrowings 50.39% 48.69% 39.90% 38.07%
Other Liabilities 13.13% 14.43% 21.12% 19.27%

Total Liabilities 100.00% 100.00% 100.00% 100.00%

Net Block 16.26% 47.41% 44.01% 39.88%

Capital Work in Progress 10.00% 0.88% 0.01% 0.05%
Investments 0.04% 0.03% 0.00% 0.00%
Other Assets 73.70% 51.67% 55.99% 60.07%
As a % of total assets
Receivables 14.80% 14.38% 21.35% 25.04%
Inventory 22.13% 28.32% 26.58% 26.50%
Cash & Bank 27.59% 0.61% 1.11% 0.96%

Total Assets 100.00% 100.00% 100.00% 100.00%

 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
ORIENTAL AROMATICS LTD
Balance Sheet
1.62% 1.04% 1.46% 2.50% 2.76% 2.26%
47.62% 62.66% 58.27% 55.73% 73.41% 72.51%
33.63% 20.13% 22.65% 27.25% 8.34% 10.44%
17.12% 16.17% 17.62% 14.53% 15.49% 14.79%

100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

43.10% 42.68% 36.68% 36.37% 38.79% 31.72%

0.21% 3.04% 6.92% 0.12% 0.29% 1.68%
0.00% 0.40% 0.35% 0.00% 0.99% 1.29%
56.69% 53.87% 56.05% 63.51% 59.94% 65.32%

24.83% 21.06% 23.34% 23.92% 25.02% 25.37%

23.18% 23.11% 23.01% 30.10% 26.66% 30.52%
0.91% 0.27% 0.63% 0.72% 2.44% 2.29%

100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Report Date Mar-12 Mar-13 Mar-14 Mar-15 Mar-16
Leverage Ratios

D/E 1.38 1.32 1.02 0.89 0.68

Debt/Assets 0.50 0.49 0.40 0.38 0.34
Debt/Ebitda 9.07 3.44 2.53 2.77 2.14
Debt/Capital Ratio 58% 57% 51% 47% 41%
Cash flow/Debt 0.14 -0.11 0.26 0.14 0.39
Interest coverage ratio 2.3 28.4 4.3 3.5 4.6
Sales Change 7% 43% 15% -1%
Ebit Change 550% 13% -8% 15%
Operating Leverage 76.3 0.3 -0.5 -13.3
Financial Leverage 2.7 2.7 2.6 2.3 2.0
Debt Burden Ratio (0.05) (0.23) 0.06 (0.07) 0.01
Efficiency ratios
Report Date Mar-12 Mar-13 Mar-14 Mar-15 Mar-16
Receivable days 53.66 63.80 75.05 80.80 81.64
Receivable turnover 6.8 5.7 4.9 4.5 4.5
Inventory days 84.9 151.8 110.2 97.3 88.8
Inventory turnover 4.5 2.9 3.9 4.3 4.8
Net Fixed assets turnove 6.2 1.7 2.4 2.8 2.6
Sales/capital employed 1.16 0.96 1.32 1.40 1.34
Total Asset Turnover 1.01 0.82 1.04 1.13 1.11

Profitability ratios
Report Date Mar-12 Mar-13 Mar-14 Mar-15 Mar-16
Ebitda 11.16 37.36 46.93 43.14 49.75
Ebitda margin 6% 17% 15% 12% 14%
Gross Profit 49.33 80.76 110.23 115.29 126.20
Gross Profit Margin 24% 37% 36% 32% 36%
EBIT 5.54 36.03 40.76 37.56 43.38
EBIT Margin 3% 17% 13% 11% 12%
ROE 3% 25% 17% 14% 15%
Net profit margin 1% 11% 7% 5% 6%
EPS 1.03 11.62 9.76 9.35 11.01
DU Pont ROE 3% 25% 17% 14% 15%
Net Profit Margin 1% 11% 7% 5% 6%
Sales/Total assets 1.01 0.82 1.04 1.13 1.11
Financial Leverage 2.74 2.71 2.57 2.34 2.03

DU PONT ROA 1.1% 9.1% 6.7% 6.1% 7.2%

Net Profit Margin 1% 11% 7% 5% 6%
Sales/Total assets 1.01 0.82 1.04 1.13 1.11

Capital Allocation Ratios Mar-12 Mar-13 Mar-14 Mar-15 Mar-16

ROCE 0% 18% 18% 15% 17%
EBIT Margin 3% 17% 13% 11% 12%
Sales/cap employed 1.16 0.96 1.32 1.40 1.34
NOPAT 3.8 24.8 26.2 26.9 29.0
Capital employed 119.1 223.96 231.71 250.39 259.13
ROIC 3% 11% 11% 11% 11%

10 year profit change 46%

5 year profit change 29%
10 year mcap change 47%
5 year mcap change 46%

Capex Ratios
Capex/Net Profits 10yr 133%
Capex/Net Profits 5 yr 130%
Capex/Net Profits 3 yr 100%
Capex/Depreciation 10yr 442%

Valuation Ratios Mar-12 Mar-13 Mar-14 Mar-15 Mar-16

Price/Earnings 25.8 3.3 5.1 6.7 9.8
Price/Book 0.75 0.82 0.89 0.96 1.43
Price/CashFlow 4 -6 3 7 5
Price/Sales 0.27 0.37 0.33 0.36 0.64
Enterprise Value 100.44 206.86 218.79 244.82 326.62
EV/EBITDA 9.0 5.5 4.7 5.7 6.6
MAX Pe in Last 10 years 27.0
Max Ev/Ebitda in Last 10 y 13.0
Max P/B 3.55
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21

0.32 0.38 0.47 0.11 0.14

0.20 0.23 0.27 0.08 0.10
1.72 1.97 1.58 0.40 0.50
24% 27% 32% 10% 12%
0.40 0.07 -0.13 3.64 0.24
9.4 8.0 6.9 9.7 58.3
30% 11% 49% 1% -7%
4% 22% 61% 30% 21%
0.1 2.0 1.2 32.7 -3.2
1.6 1.7 1.7 1.3 1.3
0.04 (0.43) (0.87) 2.28 (0.75)

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21

83.55 97.19 78.11 73.22 97.39
4.4 3.8 4.7 5.0 3.7
105.1 110.3 116.2 93.9 150
4.0 3.8 3.7 4.7 3.1
2.2 2.4 3.1 3.2 3.0
1.10 1.06 1.31 1.48 1.12
0.92 0.88 1.12 1.25 0.95

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21

58.11 66.32 115.99 128.29 156.28
13% 13% 15% 17% 22%
158.67 178.57 255.33 282.49 314.23
35% 35% 34% 37% 44%
45.14 55.2 88.87 115.45 139.85
10% 11% 12% 15% 20%
8% 9% 13% 19% 18%
6% 6% 7% 11% 14%
12.43 9.03 14.80 25.74 30.39
8% 9% 13% 19% 18%
6% 6% 7% 11% 14%
0.92 0.88 1.12 1.25 0.95
1.57 1.67 1.72 1.31 1.34

5.2% 5.3% 7.4% 14.2% 13.7%

6% 6% 7% 11% 14%
0.92 0.88 1.12 1.25 0.95

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21

13% 12% 17% 21% 24%
10% 11% 12% 15% 20%
 1.10 1.06 1.31 1.48 1.12
28.7 34.6 58.4 96.8 104.2
413.79 471.66 570.52 499.7 618.21
7% 7% 10% 19% 17%

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Trailing

14.6 24.1 15.3 5.3 19.3 27.0
1.19 2.12 1.95 0.98 3.55
9 77 -32 2 106 #DIV/0!
0.82 1.44 1.02 0.60 2.79
472.36 857.48 943.35 491.85 2037.26
8.1 12.9 8.1 3.8 13.0
 Capital allocation is the number one thing we look f
Report Date Mar-12 Mar-13 Mar-14 Mar-15 Mar-16
Net profit 2.12 23.94 20.11 19.26 22.69
Dividend Payout 0 0 1.03 0.77 0.77
Retained Earnings 2.12 23.94 19.08 18.49 21.92
MCAP 54.6312 80.134 103.206 128.338 223.1598

Earnings Retention TestTotal Earnings retain Change in MCA PER Rs Mcap

10 years 357.89 2459.7988 6.87

5 years 272.34 2140.437 7.9

ROIC 3% 11% 11% 11% 11%

Cost of capital 10% 10% 10% 10% 10%
Cost of capital in cr 11.91 22.40 23.17 25.04 25.91
Economic value added -8.11 2.42 3.05 1.81 3.11
(NOPAT-Cost of capital)

Rolling ROIIC -4% -11% 18%

ROIIC 3 year Rolling
ROIIC 5 Year Rolling

Intrinsic Compounding Table

Report Date Mar-12 Mar-13 Mar-14 Mar-15 Mar-16
PAT 2.1 23.9 20.1 19.3 22.7
Capital Employed 119.1 223.96 231.71 250.39 259.13

Cumulative PAT 383.1

Incremental Capital
Employed 499.11
Reinvestment Rate 130%

Return on incremental
capital
employed/Intrinsic Stock Cagr 10
compunding rate 20% year 47%
Stock Cagr 5
year 46%
e thing we look for in managements
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 TTM
25.61 30.33 49.88 86.75 102.43
0.77 1.68 3.37 8.42 8.42
24.84 28.65 46.51 78.33 94.01
373.993 730.4304 764.8215 455.961 1976.505 2514.43
Compound Change in mcap/change
Multiple in profit

10yr 1.0

5yr 1.6

7% 7% 10% 19% 17%

10% 10% 10% 10% 10%
41.38 47.17 57.05 49.97 61.82
-12.71 -12.52 1.35 46.80 42.39

33% 3% 34% 37% 13%

16% 6% 12% 20% 84%
2% 12% 20% 32%

nding Table
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
25.6 30.3 49.9 86.8 102.4
413.79 471.66 570.52 499.7 618.21

700

600

500

400
Capital Employed
300 PAT

200

100

0
1 2 3 4 5 6 7 8 9 10
Year Mar-12 Mar-13 Mar-14 Mar-15 Mar-16

GP Margin 24% 37% 36% 32% 36%

Ebitda Margin 6% 17% 15% 12% 14%

Net Profit Margin 1% 11% 7% 5% 6%
ROIC 3% 11% 11% 11% 11%
ROCE 0% 18% 18% 15% 17%
ROE 3% 25% 17% 14% 15%
EPS 1.03 11.62 9.76 9.35 11.01

50%

45%

40%

35%

30%
GP Margin
25%
Ebitda Margi
20% Net Profit Ma

15%

10%

5%

0%
1 2 3 4 5 6 7 8 9 10

Average GP 35%
Average Ebitda margin 14%
Average Net Profit margin 7%
Average ROE 14%
Average ROIC 11%
Average ROCE 16%
 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21

35% 35% 34% 37% 44% Things To Look For

13% 13% 15% 17% 22% Stable/Expanding Margins
6% 6% 7% 11% 14% ROIC above 15% over the years
7% 7% 10% 19% 17% ROE Above 15% over the years
13% 12% 17% 21% 24% ROCE Above 15% over the years
8% 9% 13% 19% 18%
12.43 9.03 14.80 25.74 30.39

Return Ratios
ROIC ROCE ROE

GP Margin 25%
Ebitda Margin 17%
Net Profit Margin 14% 15%
1

18% 18% 17% 8% 9% 1

15%
13% 12%
11% 11% 11% 11% 1
3% 7% 7%
3%
0%
9 10 1 2 3 4 5 6 7 8
 To Look For
ding Margins PRICING POWER
5% over the years
5% over the years Business abilitiy to protect its profitability
15% over the years

tios
ROE

19% 18%

13% 21% 24%

8% 9% 17%
13% 12% 19%
17%
10%
7% 7%

7 8 9 10
Checklist for finding frauds

1) CUM PAT VS CUM CFO of last 10 years and in block of 3 years+ CFO/Ebitda > 0.7
2) Volatility in Depreciation Rate as a percentage of sales

3) Cash Yield
4) Increasing Receivables>Increasing sales
5) Miscellaneous Expenses
6) Sales being done to subsidiary
7) Always check for segmental break up of revenue
8) Company paying dividend in slow down or not

1) Check for contingent liabilites

2) Check for goodwill/intangibles as a % of networth

3) Check for provisions in trade receivables

4) Check for Auditors CARO REPORT (Annexure A OR B)

5) Check for unusual write offs in the past

6) Check for write offs from equity

1) Very high CFI without purchase of fixed assets

2) Lack of FCFE generation

3) CFF very high and excessive share issues

1) Past claims of the management and track with current performance

2) Channel checks

3) Google Fraud checks

4) Industry checks
5) Glassdoor and linkedin checks

6) Stock Pledge
Auditor
checks
1) Look for KEY AUDIT OBSERVATIONS
2) Look for Auditors opinion on internal control
3) Always read CARO report
What this does,it tells us whether Acrrual Profits are being
converted into real profits or not
Company chaging depreciation assets life constantly?
Company earning more than Risk free rate or not on the
cash>5%
Incremental sales of poor quality
If high, then doubt if expenses are real?
Kitex and Bharat RASAYAN Related Party Transactions
Kwality Ltd- sales being done in Trading (low margin)
EG- Compare Balaji Amines and Alkyl Amines DPO

Off the balance sheet items, which can wipe off equity if
too high, shouldn't be more than 5%

eg- What happened with 8k miles and Tanla solutions. If

greater than 10%, Avoid unless know goodwill acccounting.
Eg- Kwality Dairy, Parag Milk foods, if provisions are more
than 5-10% of trade receivables, Avoid
Auditor usually rectifies the assets of the company. Eg-
Denis Chem Lab, Radico Khaitan (2012-2015)
Previously written off Trade receivables or goodwill or
advances

Usually can be found in Auditors report or use Change in

reserves (excluding share premium) to net income
excluding divdends- A ratio less than 1 would show knock
off from equity. Eg- Godrej Properties, UPL

Check if Cash is being accumulated on balance sheet and

where it is being used eg- GM Breweries
Check if Free cash flow is lumpy, if lumpy then what is the
reason?
If dilutions are frequent, Avoid

Check kitex management interviews- All talk and no show

fictitious market presence like Manapasand and vakrangee

type in managements name with "legal","SEBI" OR "Fraud",
Moneylife
Check with competitors, Just ask any jeweller about PC
Jewellers
Check for 8k miles review on Glassdoor
Why would you pledge family jewels?- Seya industries, Zee
etc
Key differences on accounting between auditor and the
management
A lack of internal control is a big red flag
Fictitious assets or real assets?
Fraud untill proven innocent sheet Mar-12 Mar-13 Mar-14 Mar-15
Percentage Increase in Sales 7.21% 42.67% 14.78%
Percentage increase in receivables 27.48% 67.81% 23.58%
Percentage Increase in Inventory 67.94% 6.08% 5.04%
Inventory/sales 21.98% 34.43% 25.60% 23.43%
Recievable/Sales 15% 17% 21% 22%
Cash yield -5% 107% 45% 106%
Depreciation rate 1% 1% 2% 2%

Contingent Liability as a % of networth - - - -

CFO/PAT 672% -58% 156% 90%
CFO/EBITDA 128% -37% 67% 40%
Self Sustainable growth rate 3% 25% 16% 14%
Dividend given (intention to share wealth) 0 0 1.03 0.77
Dividend Payout Ratio/Also check for buyback 0% 0% 5% 4%
Check for Miscellaneous expenses as a total
revenues - - - -
Check sales being done to subsidiary as a % of
sales 0 0 0 0

Check for intangibles as a% of networth - - - -

Check for Write offs as a % ofTrade receivables 0 0 0 0

CWIP/Net block 61% 2% 0% 0%
Employee cost as a % of sales 5% 5% 4% 4%
Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
-1.17% 29.82% 11.01% 48.81% 0.91% -6.66%
-0.14% 32.86% 29.12% 19.60% -5.40% 24.14%
-11.91% 56.20% 16.00% 52.65% -19.90% 40.19%
20.88% 25.12% 26.25% 26.93% 21.38% 32.11%
22% 23% 27% 21% 20% 27%
106% 38% 65% -193% 30% 4%
3% 3% 3% 2% 3% 2%

- - - - - - Enter Using annual rep

184% 154% 31% -48% 213% 18% 141%
84% 68% 14% -21% 144% 12% 50%
14% 8% 8% 12% 17% 17%
0.77 0.77 1.68 3.37 8.42 8.42
3% 3% 6% 7% 10% 8%

- - - - - - Enter Using annual rep

0 0 0 0 0 Enter Using annual rep
0

- - - - - - Enter Using annual rep

0 0 0 0 0 0 Enter Using annual rep

0% 7% 19% 0% 1% 5%
4% 5% 5% 4% 5% 6%
ng annual report

ng annual report
ng annual report
ng annual report
ng annual report
Consensus Forecasts Input
FCF Growth(1-5 years) 20.00%
Fcf growth (5-10 years) 20.00%
Discount Rate/Cost of capital 7%
Terminal growth rate 2.00%
Cash & Bank Balance 17.11
Investments 9.6
Debt 77.86
Shares outstanding 3.37
Non-Operative Assets 26.71
Current Market Price 747.15
Free Cash flow of last 3 years -34.3

YEAR FCF Growth Present Value

1 -41.1 20.00% -38.4
2 -49.4 20.00% -43.1115381256005
3 -59.2 20.00% -48.3
4 -71.1 20.00% -54.2
5 -85.3 20.00% -60.8115289675853
6 -87.0 20.00% -57.9698687354552
7 -104.4 20.00% -65.0129368995759
8 -125.3 20.00% -72.9117049341038
9 -150.3 20.00% -81.7701363746958
10 -180.4 20.00% -91.7048258407803
 Valuation ranges Mcap Per stock
Future Val
Warren Buffet Way -2485.1 -738.43
Benjamin Graham Way 1,463.29 434.80785762
Bharat Shah Way -1,021.80 -303.62 2
37%
Margin of safety at 50% -510.90 -151.8112293
Current Price 747.15

DO NOT FORGET TO INSERT FIXED ASSETS PURCHASE FROM SCREENER in CFO S

Terminal Year Cash Flow -184.005218075
Present value of 1-10 year -614.3
Terminal value -1870.77844715
Total PV of shares -2485.1

To Calculate reverse DCF Just adjust the FCF growth to get to a point where Value Per stock v
 Future Value vs Cigar butt

2
37%

1
63%

M SCREENER in CFO SHEET!

a point where Value Per stock via Warren Buffett wayy is equal to the current market price
(₹ Crores/10 Millions) ORIENTAL AROMATICS LTD
Narration Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
Sales 202 217 309 355 351 456
Operating Profit 11 37 47 43 50 58
Operating Profit Margin (OPM%) 6% 17% 15% 12% 14% 13%
Other Income (3) 2 2 3 3 1
Interest 2 1 10 11 9 5
Depreciation 3 3 8 9 9 14
Profit before tax (PBT) 3 35 31 27 34 40
Tax% 31% 31% 36% 29% 33% 36%
Net profit after tax (PAT) 2 24 20 19 23 26
Net Profit Margin (NPM%) 1% 11% 7% 5% 6% 6%
Cash from Operating Activity (CFO) 14 -14 31 17 42 39
Capex {(NFA+WIP) change+Dep} 78 12 3 21 104
FCF (92) 20 14 21 (64)
Total Debt (D) 101 128 119 119 106 100
Share Capital 5 5 5 5 5 5
Dividend Paid (Div) Without DDT - - 1 1 1 1
Cash + Investments (CI +NCI) 56 2 3 3 3 3

Self-Sustainable Growth Rate (SSGR) 15% 9% 8%

Trade Receivables 30 38 64 79 78 104

Inventory 44 75 79 83 73 114

PBT/Avg. NFA (<10%,>25%) 44% 24% 21% 26% 23%

ROE on Avg Equity (<7%,>25%) 28% 19% 15% 16% 11%
ROCE (EBIT on Avg CE/TA) (<10%,>35%) 16% 15% 12% 14% 11%
Incremental ROE 3Yr Rolling 38% -2% 9%

Net Fixed Asset Turnover (High is better) 2.75 2.42 2.77 2.68 2.62
Receivables days (Low is better) 57 60 73 82 73
Inventory Turnover (High is better) 3.6 4.0 4.4 4.5 4.9
Working capital cycle days (Rec + Inv Days) 157 151 157 163 148

Net Fixed Assets (NFA) 33 125 131 125 136 211

Capital Work in Progress (CWIP) 20 2 0 0 1 15

Dividend Paid (Div) Without DDT - - 1 1 1 1

Dividend Payout (Div/PAT) 0% 0% 5% 4% 3% 3%
Retained Earnings (RE=PAT-Div) 2 24 19 18 22 25
Price to earning 25.8 3.3 5.1 6.7 9.8 14.6
Mcap 55 80 103 128 223 374
Cash + Investments (CI +NCI) 56 2 3 3 3 3

Total Debt (D) 101 128 119 119 106 100

Total Equity (E) 73 97 116 134 156 315
Debt to Equity ratio (D/E) 1.4 1.3 1.0 0.9 0.7 0.3
Cost of funds 12.0%
Interest outgo (Rs. Cr.) 14 15 14 14 12
Interest Coverage (OP/Int. Out) 2.7 3.2 3.0 3.7 4.7

Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17

Cash from Operating Activity (CFO) 14 -14 31 17 42 39
Cash from Investing Activity (CFI) (14) (67) (6) (6) (16) (17)
Cash from Financing Activity (CFF) 50 30 (24) (12) (26) (24)
Net Cash Flow (CFO+CFI+CFF) 50 (52) 2 (0) (0) (2)
Cash & Eq. at the end of year 55 2 3 3 3 1

Total Retained Earnings (RE) in 10 Yrs (A) 358

Total increase in Mcap in 10 yrs (B) 2,460
Value created per INR of RE (B/A) 6.87

Costs as % of Sales
Raw Material 76% 63% 64% 68% 64% 65%
Power & Fuel 8% 10% 9% 8% 8% 6%
Employee Costs 5% 5% 4% 4% 4% 5%
Selling & Admin Costs 2% 3% 3% 3% 3% 5%
Other Manufacturing Expenses 2% 3% 4% 5% 5% 5%
Other Expenses 1% 0% 1% 1% 1% 2%
 Sep-21 << Latest available quarterly results
Mar-18 Mar-19 Mar-20 Mar-21 Last 4 Quarters Total 10 Yrs TRENDS: 10Yr 7Yr
506 753 759 709 872 Sales Growth 15% 13%
66 116 128 156 142 OPM 15% 16%
13% 15% 17% 22% 16% PAT Growth 54% 26%
4 (9) 6 1 5 9 Avg. PE 12.9 13.6
7 13 12 2 3 72
15 18 19 17 16 115 CMP 747
48 76 104 137 127 P/E 27.0
37% 34% 16% 25% 27% P/B 4.5
30 50 87 102 93 383 P/E*P/B 121.9
6% 7% 11% 14% 11% Div Yield 0.3%
9 -24 185 19 CFO 319 Market Cap 2,514
40 12 11 29 Capex 308
(30) (36) 173 (10) FCF 10 358 Total Retained Earnings (RE) in
131 183 51 78 FCFE (Post Int. exp.) (62) 2,460 Total increase in Mcap in 10 yr
8 17 17 17 Total Div 10 Yrs 25 6.87 Value created per INR of RE (B
2 3 8 8 Inc. in Debt in 10Yrs -23
6 5 21 27 Cash+Investments 27 0 Closing share price on March
FCF/CFO 3%
8% 9% 14% 24% Interest Outgo 123
Change in 10 Yrs
135 161 152 189 (159)
133 203 162 228 (183)

23% 33% 43% 58%

9% 14% 20% 20%
10% 14% 18% 21%
17% 36% 61% 47%

2.39 3.30 3.16 3.00

86 72 75 88
4.1 4.5 4.2 3.6
175 153 163 188

212 245 236 236

40 1 2 12

2 3 8 8 25 Div Growth 35%

6% 7% 10% 8%
29 47 78 94
24.1 15.3 5.3 19.3
730 765 456 1,977 2,514
6 5 21 27 27

131 183 51 78 Debt -3% -6%

345 392 464 557 Book Value 25% 25%
0.4 0.5 0.1 0.1

14 19 14 8 123
 4.8 6.2 9.1 20.3

Mar-18 Mar-19 Mar-20 Mar-21 Total 10 Yrs

9 -24 185 19 319
(26) (12) (16) (32) (213)
19 38 (160) 16 (93)
2 1 9 2 13
4 5 15 17

65% 66% 63% 56%

6% 5% 5% 5%
5% 4% 5% 6%
5% 5% 5% 5%
5% 4% 5% 6%
1% 1% 1% 1%
Source: Screener.in
 5Yr 3Yr TTM
15% 12% 23%
16% 18% 16%
35% 50% -9%
15.7 13.3 27.0

Retained Earnings (RE) in 10 Yrs (A)

increase in Mcap in 10 yrs (B)
e created per INR of RE (B/A)

ng share price on March 31, 10 years back

61% 71%

-6% -16% 53%

29% 17% 20%
 (adapted from the methodology described in the book "Buffetology" by
Current Data 10 yr Projected Company data using hist
Price 747.15 Year EPS DPS
EPS: 27.64 Current 27.64 2.50
DPS: 2.50 Year 1 31.79 2.11
BVPS: 165.42 Year 2 36.56 2.43
P/E: 27.03 Year 3 42.04 2.79
Earnings Yield: 3.70% Year 4 48.35 3.21
Dividend Yield: 0.33% Year 5 55.60 3.70
P/BV: 4.52 Year 6 63.94 4.25
Year 7 73.53 4.89
Input Visibility data below Year 8 84.56 5.62
Sales Year 9 97.25 6.46
Med Term Visibility 15% Year 10 111.83 7.43
Sales 10 Yr CAGR 16%
Sales 5yr CAGR 13.87% 10 yr Projected Company data using susta
Sales 3yr CAGR 5.04% Year BVPS EPS
Sales Y-o-Y growth 23.05% Current 165.42 27.64
Sales TTM Growth Year 1 190.56 31.09
EPS Year 2 219.58 34.96
Med Term Visibility 15% Year 3 252.22 39.32
EPS 10 Yr CAGR 45.96% Year 4 288.92 44.21
EPS 5yr CAGR 29.43% Year 5 330.20 49.72
EPS 3yr CAGR 23.15% Year 6 376.62 55.92
EPS Y-o-Y growth -9.05% Year 7 428.81 62.88
EPS TTM Growth Year 8 487.52 70.71
5Yr Averages Year 9 553.53 79.52
Return on Equity: 13.34% Year 10 627.77 89.43
Payout Ratio: 6.65% *Assuming current capital structure is maintained - business's inherent a
P/E Ratio-High: 27.0
P/E Ratio-Low: 5.3 5Year Avg Roe 13%
Avg. P/E Ratio: 18.2
Avg Sustainable P/E 60
RoE/Payout Visibility 5 Yr Avg
RoE Visibility 13% 13.34%
Payout Visbility 7% 6.65%
Sustainable Growth 12.46% 12.46%
ibed in the book "Buffetology" by Mary Buffet - using current Visibility aided by Historicals)
rojected Company data using historical earnings growth rate/current visibility

111.83 Earnings after 10 years

42.89 Dividends paid over 10 years

6709.98 Projected price [Avg Sustainable P/E*EPS]

6752.87 Total Gain [Projected Price+Dividends]

27.71% Projected annual return using current EPS growth visibility

[(Total Gain/Current Price)^1/9)-1]

ojected Company data using sustainable growth rate based on current visibility
DPS
2.50 89.43 Earnings after 10 years
2.07 37.07 Dividends paid over 10 years
2.32
2.61 5365.88 Projected price [Avg Sustainable P/E*EPS]
2.94 5402.95 Total Gain [Projected Price+Dividends]
3.30
3.72 24.59% Projected annual return using sustainable growth visbility*
4.18 [(Total Gain/Current Price)^1/9)-1]
4.70
5.28
5.94
maintained - business's inherent ability to grow with internal accruals from here
10yr Sales Projection
Year Sales
Current 872.20
Year 1 1003.03
Year 2 1153.48
Year 3 1326.51
Year 4 1525.48
Year 5 1754.31
Year 6 2017.45
Year 7 2320.07
Year 8 2668.08
Year 9 3068.29
Year 10 3528.54
COMPANY NAME ORIENTAL AROMATICS LTD
LATEST VERSION 2.10 PLEAS
CURRENT VERSION 2.10

META
Number of shares 3.37
Face Value 5.00
Current Price 747.15
Market Capitalization 2,514.43

PROFIT & LOSS

Report Date Mar-12 Mar-13 Mar-14 Mar-15
Sales 202.24 216.82 309.33 355.06
Raw Material Cost 142.27 148.49 211.60 242.95
Change in Inventory -10.64 12.43 12.50 3.18
Power and Fuel 16.45 21.49 26.53 29.58
Other Mfr. Exp 4.74 6.26 12.96 16.01
Employee Cost 9.69 10.39 12.71 14.42
Selling and admin 4.86 6.23 8.21 9.90
Other Expenses 2.43 -0.97 2.89 2.24
Other Income -2.87 1.81 1.51 3.20
Depreciation 2.75 3.14 7.68 8.78
Interest 2.45 1.27 9.50 10.62
Profit before tax 3.09 34.76 31.26 26.94
Tax 0.97 10.82 11.15 7.68
Net profit 2.12 23.94 20.11 19.26
Dividend Amount 1.03 0.77

Quarters
Report Date Jun-19 Sep-19 Dec-19 Mar-20
Sales 211.72 204.16 175.44 169.69
Expenses 175.45 177.09 147.43 133.57
Other Income 0.07 1.54 1.72 3.69
Depreciation 4.52 4.67 4.70 5.13
Interest 2.85 3.85 1.70 3.56
Profit before tax 28.97 20.09 23.33 31.12
Tax 10.42 -6.03 5.42 16.79
Net profit 18.55 26.12 17.91 14.32
Operating Profit 36.27 27.07 28.01 36.12
BALANCE SHEET
Report Date Mar-12 Mar-13 Mar-14 Mar-15
Equity Share Capital 5.13 5.13 5.13 5.13
Reserves 68.16 92.10 111.00 128.78
Borrowings 101.24 128.34 118.90 119.49
Other Liabilities 26.37 38.04 62.93 60.48
Total 200.90 263.61 297.96 313.88
Net Block 32.67 124.99 131.12 125.16
Capital Work in Progress 20.09 2.32 0.02 0.16
Investments 0.08 0.08
Other Assets 148.06 136.22 166.82 188.56
Total 200.90 263.61 297.96 313.88
Receivables 29.73 37.90 63.60 78.60
Inventory 44.45 74.65 79.19 83.18
Cash & Bank 55.43 1.61 3.32 3.01
No. of Equity Shares 5,133,674.00 5,133,674.00 5,133,674.00 5,133,674.00
New Bonus Shares
Face value 10.00 10.00 10.00 10.00

CASH FLOW:
Report Date Mar-12 Mar-13 Mar-14 Mar-15
Cash from Operating Activity 14.25 -13.93 31.29 17.25
Cash from Investing Activity -13.99 -67.48 -5.65 -5.90
Cash from Financing Activity 49.82 29.90 -23.95 -11.75
Net Cash Flow 50.08 -51.51 1.69 -0.39

PRICE: 26.52 38.90 50.10 62.30

DERIVED:
Adjusted Equity Shares in Cr 2.06 2.06 2.06 2.06
 PLEASE DO NOT MAKE ANY CHANGES TO THIS SHEET

Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21

350.92 455.56 505.70 752.55 759.43 708.83
216.35 293.12 330.44 521.76 485.97 414.52
-8.37 -3.77 3.31 24.54 9.03 19.92
28.40 27.36 28.01 34.21 35.73 33.77
17.31 21.32 23.64 28.59 41.45 41.93
15.52 23.06 25.76 30.86 35.94 39.60
11.19 21.61 27.80 37.33 35.13 33.71
4.03 7.21 7.04 8.35 5.95 8.94
3.05 1.25 3.64 -9.41 6.18 1.03
9.42 14.22 14.76 17.71 19.02 17.46
9.46 4.81 6.88 12.97 11.95 2.40
33.92 40.33 48.32 75.90 103.50 137.45
11.23 14.72 17.99 26.02 16.75 35.03
22.69 25.61 30.33 49.88 86.75 102.43
0.77 0.77 1.68 3.37 8.42 8.42

Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21

113.26 183.83 190.68 221.38 229.67 230.47
94.93 134.67 136.86 187.86 194.99 210.39
0.57 0.33 0.27 1.31 1.07 1.96
4.62 4.62 4.23 3.99 3.99 4.07
0.77 0.32 0.26 1.05 0.68 0.98
13.51 44.55 49.60 29.79 31.08 16.99
3.46 11.38 13.25 8.38 8.19 4.63
10.04 33.16 36.36 21.41 22.90 12.36
18.33 49.16 53.82 33.52 34.68 20.08
 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
5.13 5.13 8.41 16.83 16.83 16.83
150.54 310.29 336.20 375.16 446.98 540.63
106.33 99.69 130.67 183.41 50.76 77.86
54.13 80.07 101.69 97.78 94.31 110.28
316.13 495.18 576.97 673.18 608.88 745.60
136.26 211.36 211.66 244.81 236.18 236.48
0.67 15.05 39.92 0.80 1.74 12.49
2.00 2.00 6.00 9.60
179.20 266.77 323.39 427.57 364.96 487.03
316.13 495.18 576.97 673.18 608.88 745.60
78.49 104.28 134.65 161.04 152.35 189.13
73.27 114.45 132.76 202.66 162.34 227.59
2.87 1.32 3.62 4.88 14.87 17.11
5,133,674.00 5,133,674.00 8,413,420.00 33,653,576.00 33,653,576.00 33,653,576.00

10.00 10.00 10.00 5.00 5.00 5.00

Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21

41.84 39.42 9.48 -23.95 184.56 18.56
-16.28 -16.87 -26.23 -12.41 -15.63 -32.08
-25.75 -24.18 19.00 37.63 -159.50 15.61
-0.20 -1.63 2.25 1.27 9.43 2.09

108.33 181.55 217.39 226.95 135.30 586.50

2.06 2.06 3.36 3.37 3.37 3.37