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Financial Analysis of Microsoft Inc.

Financial Analysis of Microsoft Inc.

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Microsoft inc Microsoft inc Document Transcript

  • SRI KRISHNA CONSULTING COMPANY FINALYTICS Microsoft Corp  Exclusive Fundamental Analysis of US Stocks Prepared and Edited By‐ SRI KRISHNA CONSULTING Download more reports from http://www.srikrishnaconsulting.com Disclaimer  The information, opinions, estimates and forecasts contained in this document have been arrived at or obtained from public sources believed to be reliable and in good faith which has not been independently verified and no warranty, express or implied, is made as to their accuracy, completeness or  correctness.  For more information about this sample and our other services, please write to info@srikrishnaconsulting.com Monday, June 04, 2012
  • Description Page Summary 3 Latest Result 3 Valuation Matrix 3 ROE Analysis 3 Income Statement 4 Balance Sheet 5 Cash flow Statement 6 Quarterly Result 6 Growth Analysis 7 Comparative Analysis 8 Income Statement 8 Balance Sheet 8 Index Analysis 9 Income Statement 9 Balance Sheet 9 Ratio Analysis 10 Annual 10 Quarterly 11 TTM Analysis 11 Valuation and Projection 12 CONTENT Technical Analysis 13 About Sri Krishna Consulting We provide financial research and analytics services to our worldwide client. Our research is customized and  proprietary to our clients and often provided in client formats and templates. Our expert team of analyst add  crucial values to client proprietary methodology and add efficiencies. We have four areas of practice: ‐‐Equity Research ‐‐Credit Research ‐‐Commodities Research ‐‐Consultancy and Strategy. With a zeal to perform, we adopt best quality driven process and approaches. Our quality driven process and  approaches have already give us a place as a top‐tire provider of Financial Research and Analytics. Financial Research Team We have a robust investment research team with expertise in the financial domain. These professionals  include CFAs, CAs and MBAs specializing in finance, with expertise in investment and retail banking, equity  research, financial and sectoral analysis, etc. Our delivery teams are the core of our business, and we maintain  their exceptional quality by selecting personnel on the basis of educational and functional experience. Our HR  teams are always searching for outstanding performers. Contact Us: info@srikrishnaconsulting.com © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 2
  • SummaryLatest Results At a glance Annual Quarterly TTM Business Summary % Change % Change % Change 6/30/2011 2012 Q3 2012 Q3 Sales 69943.00 11.94 17407.00 (16.65) 73031.00 1.36 EBITDA 30595.00 13.47 7054.00 (0.20) 30848.00 1.37 Microsoft develops, manufactures, licenses, and supports a  Adjusted PAT 23150.00 23.40 5108.00 (0.23) 23344.00 (0.53) wide range of software products for a multitude of  Reported PAT 23150.00 23.40 5108.00 (0.23) 23344.00 (0.53) computing devices. EPS 2.73 27.65 0.60 (0.23) 2.75 (0.91) Industry Application SoftwareValuation Data Latest 10 K filing 6/30/2011 Latest 10 Q Filing 3/31/2012 Company Industry Next Report Date 7/19/2012 P/E(TTM) 10.35 19.72 No. of Employee 90,000 No. Equity Share  P/E(Forward) 10.46 NA 9742 (Million) PEG Ratio 1.18 NA Price 28.45 Price/Sales 3.27 2.80 Market Cap (Million) 277159.9 Dividend Yield(%) 2.81 2.65 Total Debt 22233.00 Price/Book 3.48 3.81 Enterprise Value 292371.9 Price/Free Cash Flow 11.11 13.69 Price/Enterprise Value 0.95 NA Market Data Exchange Traded NASDAQ Ticker MSFTROE Analysis 52 Week High 32.95 52 Week Low 23.65 Particulars 2007 2008 2009 2010 2011 Short Interest Ratio 1.76 Reported PAT / PBT 0.70 0.74 0.74 0.75 0.82 Beta 1 Normalized PAT / PBT 0.70 0.74 0.72 0.75 0.82 Average Target Price 35.5 PBT / PBIT 1.00 1.00 1.00 0.99 0.99 One Year Return 19.01 PBIT / Sales 0.39 0.39 0.34 0.40 0.41 Three Months Return ‐11.07 Sales / Total Assets 1.30 1.41 1.15 1.04 0.88 One Month Return ‐8.17 Total Assets / Net  Worth(Without Treasury  Analyst Rating Stock) 126.75 118.25 128.56 129.87 140.02 Reported ROE (Excluding  Treasury Stock) 45.23 48.73 36.83 40.63 40.55 Normalized ROE(Excluding  Strong  Treasury Stock) 45.23 48.73 35.84 40.77 40.55 Buy  Reported ROE (Including  15 Treasury Stock) NA NA NA NA NA Hold  Normalized ROE(Including  8 Treasury Stock) NA NA NA NA NA ROE 65.42 48.73  45.23  40.77  40.55  35.84  Ownership (%) 21.5 13.81 0.00  0.00  0.00  0.00  0.00  1.49 2007 2008 2009 2010 2011 Institutional  Top 10  Mutual Fund  5%/Insider  Ownership  Institutions  Ownership  Ownership  (%)  (%)  (%)  (%)  Normalized ROE(Excluding Treasury Stock) Normalized ROE(Including Treasury Stock) © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 3
  • Income Statement Particulars (in Millions) 2007 2008 2009 2010 2011 Sales 51122.00 60420.00 58437.00 62484.00 69943.00 Operating Income cost of goods sold 9493.00 10198.00 10455.00 10595.00 13348.00 35000.00  69,943 60,420 58,437 62,484 30000.00  Gross profit 41629.00 50222.00 47982.00 51889.00 56595.00 General selling and  51,122 25000.00  administrative expenses 14870.00 18387.00 16541.00 17067.00 17867.00 Research and development  20000.00  expenses 7121.00 8164.00 9010.00 8714.00 9043.00 other operating  15000.00  income/(Expenses) 1667.00 1686.00 (816.00) 842.00 941.00 10000.00  Operating profit 21305.00 25357.00 21615.00 26950.00 30626.00 5000.00  Other non‐operating  income/(expenses) (4.00) (143.00) (56.00) 14.00 (31.00) 0.00  2007 2008 2009 2010 2011 EBITDA 21301.00 25214.00 21559.00 26964.00 30595.00 Depreciation 1200.00 1400.00 1700.00 1800.00 2229.00 EBIT 20101.00 23814.00 19859.00 25164.00 28366.00 Operating profit EBITDA Sales Interest expenses 0.00 0.00 38.00 151.00 295.00 EBT 20101.00 23814.00 19821.00 25013.00 28071.00 Tax 6036.00 6133.00 5252.00 6253.00 4921.00 Financial Data Mining EAT 14065.00 17681.00 14569.00 18760.00 23150.00 Non recurring income  0.00 0.00 0.00 0.00 0.00 Get a Free Quote Reported profit 14065.00 17681.00 14569.00 18760.00 23150.00 Minority Interest 0 0 0 0 0 Profit Levels 2007 2008 2009 2010 2011 Gross profit Operating profit EBITDA EBIT EBT EAT Reported profit Profit Margins 2011 80.92  43.79  43.74  40.56  40.13  33.10  2010 83.04  43.13  43.15  40.27  40.03  30.02  2009 82.11  36.99  36.89  33.98  33.92  24.93  2008 83.12  41.97  41.73  39.41  39.41  29.26  2007 81.43  41.67  41.67  39.32  39.32  27.51  Gross profit Operating profit EBITDA EBIT EBT EAT © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 4
  • Balance Sheet Particulars (in Millions) 2007 2008 2009 2010 2011 Sources of Fund Owners Fund Sources of Fund Redeemable Preferred Stock 0.00 0.00 0.00 0.00 0.00 Preferred Stock ‐ Non  Redeemable, Net 0.00 0.00 0.00 0.00 0.00 Common Stock 60557.00 62849.00 62382.00 62856.00 63415.00 Additional Paid‐In Capital 0.00 0.00 0.00 0.00 0.00 Retained Earnings  (Accumulated Deficit) (31114.00) (27703.00) (23793.00) (17736.00) (8195.00) Treasury Stock ‐ Common 0.00 0.00 0.00 0.00 0.00 ESOP Debt Guarantee 0.00 0.00 0.00 0.00 0.00 Unrealized Gain (Loss) 0.00 0.00 939.00 1231.00 1658.00 Other Equity, Total 1654.00 1140.00 30.00 (176.00) 205.00 Total Equity 31097.00 36286.00 39558.00 46175.00 57083.00 Loan Fund Long Term Debt 0.00 0.00 3746.00 4939.00 11921.00 Capital Lease Obligations 0.00 0.00 0.00 0.00 0.00 2007 2008 2009 2010 2011 Deferred Income Tax 0.00 0.00 0.00 229.00 1456.00 Total Equity Total Loan Fund Minority Interest 0.00 0.00 0.00 0.00 0.00 Other Liabilities, Total 8320.00 6621.00 7550.00 8623.00 9470.00 Total Loan Fund 8320.00 6621.00 11296.00 13791.00 22847.00 Total Fund 39417.00 42907.00 50854.00 59966.00 79930.00 Application of Funds Uses of funds Fixed Assets Property/Plant/Equipment,  Total ‐ Net 4350.00 6242.00 7535.00 7630.00 8162.00 Goodwill, Net 4760.00 12108.00 12503.00 12394.00 12581.00 Intangibles, Net 878.00 1973.00 1759.00 1158.00 744.00 Long Term Investments 10117.00 6588.00 4933.00 7754.00 10865.00 Note Receivable ‐ Long Term 0.00 0.00 0.00 0.00 0.00Other Long Term Assets, Total 2898.00 2640.00 1878.00 1501.00 1434.00 Other Assets, Total 0.00 0.00 0.00 0.00 0.00 2007 2008 2009 2010 2011 Total Fixed Assets 23003.00 29551.00 28608.00 30437.00 33786.00 Net Current Assets Total Fixed Assets Total Current Assets 40168.00 43242.00 49280.00 55676.00 74918.00 Total Net Current Assets Total Current Liabilities 23754.00 29886.00 27034.00 26147.00 28774.00 Total Net Current Assets 16414.00 13356.00 22246.00 29529.00 46144.00 Total Assets 39417.00 42907.00 50854.00 59966.00 79930.00 % of Total Fund 84.57  78.89  77.79  77.00  71.42  Financial Data Mining 28.58  21.11  22.21  23.00  15.43  Get a Free Quote 2007 2008 2009 2010 2011 Total Loan Fund Total Equity © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 5
  • Cash flow Statement Particulars (in Millions) 2007 2008 2009 2010 2011 Cash FlowCash from Operating Activities 17796.00 21612.00 19037.00 24073.00 26994.00Cash from Investing Activities 6089.00 (4587.00) (15770.00) (11314.00) (14616.00)Cash from Financing Activities (24544.00) (12934.00) (7463.00) (13291.00) (8376.00) Foreign Exchange Effects 56.00 137.00 (67.00) (39.00) 103.00 Net Change in Cash (603.00) 4228.00 (4263.00) (571.00) 4105.00 2007 2008 2009 2010 2011Net Cash ‐ Beginning Balance 6714 6111 10339 6076 5505 Net Cash ‐ Ending Balance 6111 10339 6076 5505 9610 Cash from Operating Activities Cash from Investing Activities Quarterly Income Statement Cash from Financing Activities Particulars (in Millions) 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 Sales 16428.00 17367.00 17372.00 20885.00 17407.00 cost of goods sold 3369.00 3144.00 3189.00 5143.00 3356.00 Gross profit 13059.00 14223.00 14183.00 15742.00 14051.00 General selling and  administrative expenses 4469.00 5001.00 3969.00 4787.00 4469.00 Research and development  expenses other operating  2269.00 2393.00 2329.00 2371.00 2517.00 Financial Data Mining income/(Expenses) 309.00 148.00 107.00 195.00 9.00 Operating profit 6630.00 6977.00 7992.00 8779.00 7074.00 Other non‐operating  Get a Free Quote income/(expenses) 7.00 0.00 (4.00) 50.00 (20.00) EBITDA 6637.00 6977.00 7988.00 8829.00 7054.00 Depreciation 528.00 564.00 588.00 495.00 596.00 EBIT 6109.00 6413.00 7400.00 8334.00 6458.00 Interest expenses 84.00 94.00 94.00 95.00 95.00 EBT 6025.00 6319.00 7306.00 8239.00 6363.00 Tax 793.00 445.00 1568.00 1615.00 1255.00 EAT 5232.00 5874.00 5738.00 6624.00 5108.00 Non recurring income  0.00 0.00 0.00 0.00 0.00 Reported profit 5232.00 5874.00 5738.00 6624.00 5108.00 Minority Interest 0 0 0 0 0 Sales and Profit Margin 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 Sales Operating Profit Margin PAT Margin © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 6
  • Growth Analysis Average  Median  Particulars (%) 2008 2009 2010 2011 5 Year CAGR Growth Growth Sales 18.19 (3.28) 6.93 11.94 8.44 9.43 1.06 cost of goods sold 7.43 2.52 1.34 25.98 9.32 4.97 1.07 Gross profit 20.64 (4.46) 8.14 9.07 8.35 8.61 1.06 General selling and  administrative expenses 23.65 (10.04) 3.18 4.69 5.37 3.93 1.04 Research and development  expenses 14.65 10.36 (3.29) 3.78 6.37 7.07 1.05 other operating  income/(Expenses) 1.14 (148.40) (203.19) 11.76 (84.67) (73.63) 0.89 Operating profit 19.02 (14.76) 24.68 13.64 10.65 16.33 1.08 Other non‐operating  income/(expenses) 3475.00 (60.84) (125.00) (321.43) 741.93 (92.92) 1.51 EBITDA 18.37 (14.50) 25.07 13.47 10.60 15.92 1.08 Depreciation 16.67 21.43 5.88 23.83 16.95 19.05 1.13 EBIT 18.47 (16.61) 26.71 12.72 10.33 15.60 1.07 Interest expenses 0.00 0.00 297.37 95.36 98.18 47.68 0.00 EBT 18.47 (16.77) 26.19 12.23 10.03 15.35 1.07 Tax 1.61 (14.36) 19.06 (21.30) (3.75) (6.38) 0.96 EAT 25.71 (17.60) 28.77 23.40 15.07 24.56 1.10 Non recurring income  0.00 0.00 0.00 0.00 0.00 0.00 0.00 Reported profit 25.71 (17.60) 28.77 23.40 15.07 24.56 1.10 Minority Interest 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Growth Rates (Year on Year) 2008 2009 2010 2011 Sales Gross profit Operating profit EBITDA EBIT EBT EAT Reported profit Profit Index (Year on Year) 2007 2008 2009 2010 2011 Sales Gross profit Operating profit EBITDA EBIT EAT Reported profit © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 7
  • Comparative Analysis Income Statement Particulars (%) 2007 2008 2009 2010 2011 Sales 100.00 100.00 100.00 100.00 100.00 cost of goods sold 18.57 16.88 17.89 16.96 19.08 Gross profit 81.43 83.12 82.11 83.04 80.92 General selling and  administrative expenses 29.09 30.43 28.31 27.31 25.55 Research and development  expenses 13.93 13.51 15.42 13.95 12.93 other operating  income/(Expenses) 3.26 2.79 (1.40) 1.35 1.35 Source of Fund (%) 2011 Operating profit 41.67 41.97 36.99 43.13 43.79 Other non‐operating  income/(expenses) (0.01) (0.24) (0.10) 0.02 (0.04) EBITDA 41.67 41.73 36.89 43.15 43.74 29% Depreciation 2.35 2.32 2.91 2.88 3.19 EBIT 39.32 39.41 33.98 40.27 40.56 Interest expenses 0.00 0.00 0.07 0.24 0.42 EBT 39.32 39.41 33.92 40.03 40.13 Tax 11.81 10.15 8.99 10.01 7.04 71% EAT 27.51 29.26 24.93 30.02 33.10 Non recurring income  0.00 0.00 0.00 0.00 0.00 Reported profit 27.51 29.26 24.93 30.02 33.10 Minority Interest 0.00 0.00 0.00 0.00 0.00 Total Equity Total Loan Fund Balance Sheet Particulars 2007 2008 2009 2010 2011 Sources of Fund Owners Fund Redeemable Preferred Stock 0.00 0.00 0.00 0.00 0.00 Preferred Stock ‐ Non  Redeemable, Net 0.00 0.00 0.00 0.00 0.00 Common Stock 153.63 146.48 122.67 104.82 79.34 Additional Paid‐In Capital 0.00 0.00 0.00 0.00 0.00 Retained Earnings  (78.94) (64.57) (46.79) (29.58) (10.25) Application of Fund (%)  Treasury Stock ‐ Common 0.00 0.00 0.00 0.00 0.00 2011 ESOP Debt Guarantee 0.00 0.00 0.00 0.00 0.00 Unrealized Gain (Loss) 0.00 0.00 1.85 2.05 2.07 Other Equity, Total 4.20 2.66 0.06 (0.29) 0.26 Total Equity 0 78.89 84.57 77.79 77.00 71.42 42% Loan Fund Long Term Debt 0.00 0.00 7.37 8.24 14.91 Capital Lease Obligations 0.00 0.00 0.00 0.00 0.00 58% Deferred Income Tax 0.00 0.00 0.00 0.38 1.82 Minority Interest 0.00 0.00 0.00 0.00 0.00 Other Liabilities, Total 21.11 15.43 14.85 14.38 11.85 Total Loan Fund 21.11 15.43 22.21 23.00 28.58 Total Fund 100.00 100.00 100.00 100.00 100.00 Total Fixed Assets Uses of funds Fixed Assets Total Net Current Assets Property/Plant/Equipment,  Total ‐ Net 11.04 14.55 14.82 12.72 10.21 Goodwill, Net 12.08 28.22 24.59 20.67 15.74 Intangibles, Net 2.23 4.60 3.46 1.93 0.93 Long Term Investments 25.67 15.35 9.70 12.93 13.59 Note Receivable ‐ Long Term 0.00 0.00 0.00 0.00 0.00 Equity Research ReportOther Long Term Assets, Total 7.35 6.15 3.69 2.50 1.79 Other Assets, Total 0.00 0.00 0.00 0.00 0.00 Total Fixed Assets 58.36 68.87 56.26 50.76 42.27 Get a Free Quote Net Current Assets Total Current Assets 101.91 100.78 96.90 92.85 93.73 Total Current Liabilities 60.26 69.65 53.16 43.60 36.00 Total Net Current Assets 41.64 31.13 43.74 49.24 57.73 Total Assets 100.00 100.00 100.00 100.00 100.00 © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 8
  • Index Analysis Income Statement Particulars 2007 2008 2009 2010 2011 (Base Year) Sales 100.00 118.19 114.31 122.23 136.82 cost of goods sold 100.00 107.43 110.13 111.61 140.61 Gross profit 100.00 120.64 115.26 124.65 135.95 Credit/Bond Analysis General selling and  100.00 123.65 111.24 114.77 120.15 Research and development  100.00 114.65 126.53 122.37 126.99 other operating  Operating profit 100.00 100.00 101.14 119.02 (48.95) 101.46 50.51 126.50 56.45 143.75 Get a Free Quote Other non‐operating  100.00 3575.00 1400.00 (350.00) 775.00 EBITDA 100.00 118.37 101.21 126.59 143.63 Depreciation 100.00 116.67 141.67 150.00 185.75 EBIT 100.00 118.47 98.80 125.19 141.12 Interest expenses 0.00 0.00 0.00 0.00 0.00 EBT 100.00 118.47 98.61 124.44 139.65 Tax 100.00 101.61 87.01 103.60 81.53 EAT 100.00 125.71 103.58 133.38 164.59 Non recurring income  0.00 0.00 0.00 0.00 0.00 Reported profit 100.00 125.71 103.58 133.38 164.59 Minority Interest 0.00 0.00 0.00 0.00 0.00 Balance Sheet Particulars 2007 2008 2009 2010 2011 Sources of Fund Owners Fund Index of Loan Fund and Fixed  Redeemable Preferred Stock 0.00 0.00 0.00 0.00 0.00 Assets Preferred Stock ‐ Non  0.00 0.00 0.00 0.00 0.00 Common Stock 100.00 103.78 103.01 103.80 104.72 Additional Paid‐In Capital 0.00 0.00 0.00 0.00 0.00 Retained Earnings  100.00 89.04 76.47 57.00 26.34 Treasury Stock ‐ Common 0.00 0.00 0.00 0.00 0.00 ESOP Debt Guarantee 0.00 0.00 0.00 0.00 0.00 Unrealized Gain (Loss) 0.00 0.00 0.00 0.00 0.00 Other Equity, Total 100.00 68.92 1.81 (10.64) 12.39 Total Equity 100.00 116.69 127.21 148.49 183.56 Loan Fund Long Term Debt 0.00 0.00 0.00 0.00 0.00 2007 2008 2009 2010 2011 Capital Lease Obligations 0.00 0.00 0.00 0.00 0.00 Deferred Income Tax 0.00 0.00 0.00 0.00 0.00 Minority Interest 0.00 0.00 0.00 0.00 0.00 Total Loan Fund Total Fixed Assets Other Liabilities, Total 100.00 79.58 90.75 103.64 113.82 Total Loan Fund 100.00 79.58 135.77 165.76 274.60 Total Fund 100.00 108.85 129.02 152.13 202.78 Uses of funds Fixed Assets Property/Plant/Equipment,  Total ‐ Net 100.00 143.49 173.22 175.40 187.63 Goodwill, Net 100.00 254.37 262.67 260.38 264.31 Intangibles, Net 100.00 224.72 200.34 131.89 84.74 Long Term Investments 100.00 65.12 48.76 76.64 107.39 Note Receivable ‐ Long Term 0.00 0.00 0.00 0.00 0.00Other Long Term Assets, Total 100.00 91.10 64.80 51.79 49.48 Other Assets, Total 0.00 0.00 0.00 0.00 0.00 Total Fixed Assets 100.00 128.47 124.37 132.32 146.88 Net Current Assets Total Current Assets 100.00 107.65 122.68 138.61 186.51 Total Current Liabilities 100.00 125.81 113.81 110.07 121.13 Total Net Current Assets 100.00 81.37 135.53 179.90 281.13 Total Assets 100.00 108.85 129.02 152.13 202.78 © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 9
  • Ratio Analysis‐Annual Particulars 2007 2008 2009 2010 2011 Per Share Ratio Normalized EPS 1.44 1.90 1.59 2.14 2.73 Basic EPS 1.44 1.90 1.63 2.13 2.73 Diluted EPS 1.42 1.87 1.62 2.10 2.69 Adjusted Cash EPS 1.57 2.05 1.82 2.33 2.99 EPS Trend Dividend Per Share 0.40 0.44 0.52 0.52 0.64 Operating Profit per Share 2.19 2.72 2.42 3.06 3.61 Book Value Per Share  (Excluding Treasury Stocks) 3.19 3.89 4.42 5.24 6.72 Book Value Per Share  (Including Treasury Stocks) 3.19 3.89 4.42 5.24 6.72 Net Operating Income Per  Share 5.25 6.48 6.53 7.09 8.24 Free Reserve Per Share (3.19) (2.97) (2.66) (2.01) (0.97) Profitability Ratio (%) 2007 2008 2009 2010 2011 Operating Margin 41.67 41.97 36.99 43.13 43.79 Gross Profit margin 81.43 83.12 82.11 83.04 80.92 Normalized EPS Basic EPS Net profit Margin 27.51 29.26 24.93 30.02 33.10Normalized Net Profit Margin 27.51 29.26 24.26 30.13 33.10 Diluted EPS Adjusted Cash Margin 29.86 31.58 27.84 32.90 36.29 Effective Tax Rate 30.03 25.75 26.50 25.00 17.53 Normalized Return on Net  Worth (Excluding Treasury  Stock) 45.23 48.73 35.84 40.77 40.55Reported Return on Net Worth  (Excluding Treasury Stock)  45.23 48.73 36.83 40.63 40.55 Debt‐Equity Ratio Return on Long Term Fund 35.68 41.21 28.65 31.28 28.96 Leverage Ratio Long term Debt/Equity 0.00 0.00 0.09 0.11 0.21 Total Debt/Equity 0.27 0.18 0.29 0.30 0.40 Owned Fund as % of Total  Fund 78.89 84.57 77.79 77.00 71.42 Fixed Assets Turnover Ratio 2.22 2.04 2.04 2.05 2.07 Liquidity Ratio 2007 2008 2009 2010 2011 Current Ratio 1.69 1.45 1.82 2.13 2.60 Current Ratio (Including St.  Loans) 1.69 1.45 1.82 2.13 2.60 Long term Debt/Equity Quick Ratio 1.64 1.41 1.80 2.10 2.56 Total Debt/Equity Inventory Turnover Ratio 45.36 57.22 68.67 85.77 66.23 Payout Ratio(%) Dividend Payout Ratio 27.36 23.10 31.71 24.24 23.30 Dividend Pay out Ratio (Cash  Liquidity Ratio Profit) 25.21 21.40 28.40 22.12 21.25 Earning Retention Ratio 72.64 76.90 68.29 75.76 76.70 Cash Earning Retention Ratio 74.79 78.60 71.60 77.88 78.75 Coverage RatioAdjusted Cash flow Time Total  Debt 2.14 3.26 1.69 1.75 1.18 Financial Charges Coverage  2007 2008 2009 2010 2011 Ratio (Pre Tax) NA NA 522.61 166.65 96.16 Financial Charges Coverage  Current Ratio Ratio (Post Tax) NA NA 384.39 125.24 79.47 Current Ratio (Including St. Loans) Quick Ratio © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 10
  • Ratio Analysis‐Quarter Per Share Ratio Per Share Ratio (QoQ) Particulars 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 Operating Income Per  Share(Rs.) 1.93 2.04 2.05 2.47 2.05Operating Profit Per Share(Rs.) 0.78 0.82 0.94 1.04 0.83 Adjusted EPS(Rs.) 0.61 0.69 0.68 0.78 0.60 Profitability Ratio Operating Profit Margin 40.36 40.17 46.01 42.03 40.64 EBITDA Margin 40.40 40.17 45.98 42.27 40.52 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 EBIT Margin 37.19 36.93 42.60 39.90 37.10 PAT Margin 31.85 33.82 33.03 31.72 29.34 Operating Income Per Share(Rs.) Operating Profit Per Share(Rs.) Adjusted EPS(Rs.) TTM Analysis Particulars (in Millions) 2012 Q2 % of Sales 2012 Q3 % of Sales Changes Sales 72052.00 100.00 73031.00 100.00 1.36 cost of goods sold 14845.00 20.60 14832.00 20.31 (0.09) Gross profit 57207.00 79.40 58199.00 79.69 1.73 General selling and  18226.00 25.30 18226.00 24.96 0.00 Research and development  other operating  9362.00 759.00 12.99 1.05 9610.00 459.00 13.16 0.63 2.65 (39.53) Fundamental Analysis and  Operating profit Other non‐operating  30378.00 53.00 42.16 0.07 30822.00 26.00 42.20 0.04 1.46 (50.94) Modeling EBITDA 30431.00 42.23 30848.00 42.24 1.37 Depreciation 2175.00 3.02 2243.00 3.07 3.13 EBIT 28256.00 39.22 28605.00 39.17 1.24 Get a Free Quote Interest expenses 367.00 0.51 378.00 0.52 3.00 EBT 27889.00 38.71 28227.00 38.65 1.21 Tax 4421.00 6.14 4883.00 6.69 10.45 EAT 23468.00 32.57 23344.00 31.96 (0.53) Non recurring income  0.00 0.00 0.00 0.00 NA Reported profit 23468.00 32.57 23344.00 31.96 (0.53) Minority Interest 0.00 0.00 0.00 0.00 NA EPS 2.77 2.75 (0.91) SPS 8.51 8.59 0.97 Profit Margins (TTM) 2012 Q3 79.69  42.20  42.24  39.17  38.65  31.96  31.96  2012 Q2 79.40  42.16  42.23  39.22  38.71  32.57  32.57  Gross profit Operating profit EBITDA EBIT EBT EAT Reported profit © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 11
  • Valuation and Projection Price Estimates Analyst Recommendation Average Target 35.50 Median Target 36.00 Strong Buy Buy Hold Underperform Sell High Target 40.00 Low Target 20.00 0% 2% No. of Analyst 30.00 Projection 30% 38% Quarter  Quarter  Year Ending  Year Ending  Ending Jun‐12 Ending Sep‐12 Jun‐12 Jun‐13 30% Sales 18698.80 18456.60 74290.40 80645.30 EPS 0.66 0.71 2.72 3.05 Growth 7.67 6.24 6.22 8.55 Performance Over Industry Particulars Company Industry Earning Surprise Dividend Yield 2.81 2.65 Dividend Yield ‐ 5 Year Avg. 1.94 2.04 19%Dividend 5 Year Growth Rate 12.83 4.96 Payout Ratio(TTM) 27.36 73.24 Quick Ratio (MRQ) 2.88 1.77 Current Ratio (MRQ) 2.94 2.08 LT Debt to Equity (MRQ) 17.39 10.08 Total Debt to Equity (MRQ) 17.39 13.61 Interest Coverage (TTM) ‐‐ 4.43 3% 3% Gross Margin (TTM) 76.62 65.56 Gross Margin ‐ 5 Yr. Avg. 79.36 67.6 0% EBITD Margin (TTM) 41.9 ‐‐ EBITD ‐ 5 Yr. Avg 41.05 30.91 Q1 Q2 Q3 Q4 Operating Margin (TTM) 37.99 26.15Operating Margin ‐ 5 Yr. Avg. 37.45 26.08 Pre‐Tax Margin (TTM) 38.65 25.63 Pre‐Tax Margin ‐ 5 Yr. Avg. 38.63 26.43 Net Profit Margin (TTM) 31.96 17.65Net Profit Margin ‐ 5 Yr. Avg. 29.17 17.62 Effective Tax Rate (TTM) 17.3 30.48Effective Tax Rate ‐ 5 Yr. Avg. 24.48 38.29 Excel‐VBA Based Model Revenue/Employee (TTM) NA NA Get a Free QuoteNet Income/Employee (TTM) NA NA Receivable Turnover (TTM) NA NA Inventory Turnover (TTM) NA NA Asset Turnover (TTM) NA NA Return on Assets (TTM) NA NA Return on Assets ‐ 5 Yr. Avg. NA NAReturn on Investment (TTM) NA NAReturn on Investment ‐ 5 Yr.  Avg. NA NA Return on Equity (TTM) NA NA Return on Equity ‐ 5 Yr. Avg. NA NA © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 12
  • Technical Analysis Price Chart 35 18000000 30 16000000 14000000 25 12000000 20 10000000 15 80000000 60000000 10 40000000 5 20000000 0 0 22‐Nov 1‐Feb 16‐Apr Volume Adj Close EMA(200) EMA(50) 1.50 1.00 0.50 0.00 ‐0.50 ‐1.00 MACD Signal line 100 80 60 40 20 0 RSI(14) Technical Indicators Price 28.45 AS On: 6/1/2012 EMA(13) 29.89 ADX 19 EMA(26) 30.35 DX 46 Technical Analysis Get a Free Quote EMA(50) 29.96 +DI 12 EMA(200) 27.31 ‐DI 33 RSI(14) 26.40 %K(Fast) 0 MACD ‐0.47 %K(Slow) 7.19 William(%R) ‐100.00 %d(Slow) 12.28 © Sri Krishna Consulting. Please write us for more information: iinfo@srikrishnaconsulting.com |www.srikrishnaconsulting.comPage 13
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