The boeing company

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Financial Analysis of The Boeing Company

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The boeing company

  1. 1. gtÇtç eÉç XåvÄâá|äx COMPANY FINALYTICS The Boeing Company Exclusive Fundamental Analysis of US Stocks Prepared and Edited By‐ Tanay Roy, CFA Peu Karak, MBA 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 tanay.roy2008@gmail.com Sunday, June 24, 2012
  2. 2. 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 Tanay & Peu Our passion lies in the field of financial research & Investment management and we intend to apply our  knowledge gained over a period of years through intense study and keen observation of the nuances of  financial markets and instruments to real life scenarios. We possess expert knowledge of financial products  and markets as evidenced by top notch qualifications earned by us , all in the first attempt and keep ourselves  abreast with the latest happenings and innovations taking place in financial landscape. 1. Expertise in Portfolio Management, Product optimization, Product performance Analysis, Financial  Reporting/ Planning, Cash Flow Analysis, Ratio Analysis, Budgeting, Forecasting, Mergers & Acquisition and  knowledge of GAAP/ IFRS 2. Possess Strong Financial Modeling skills including DCF, LBO and other techniques. Possess ability to  research all asset classes in a broad range of industries and geographies. 3. Strong equity research, finance, accounting and advisory and assurance experience 4. Expertise in Technical analysis, fundamental analysis, developing trading systems. 5. Conduct in‐depth financial analysis of company financials. 6. Write analytical or trend based reports on companies, sectors or markets. 7. Expert level application in Bloomberg, Thomson Banker, Factset, DataStream, Stock Val, Merger markets,  Reuters Knowledge, Haver Analytics, Factiva, Pack Hedge, 8. Building Excel/VBA based customized tools to perform detailed analysis.Page 2 (C) Tanay Roy
  3. 3. SummaryLatest Results At a glance Annual Quarterly TTM Business Summary % Change % Change % Change 12/31/2011 2012 Q1 2012 Q1 Sales 68735.00 6.89 19383.00 (0.88) 73208.00 6.51 The Boeing Company is one of the worlds major aerospace  EBITDA 7010.00 14.56 2008.00 0.03 8012.00 9.04 firms. The company operates in three principal segments:  Adjusted PAT 4011.00 21.14 924.00 (0.33) 4347.00 8.38 commercial airplanes; military aircraft and missiles; and  Reported PAT 4018.00 21.50 923.00 (0.34) 4355.00 8.39 space and communications. EPS 4.81 7.33 1.22 (0.33) 5.72 8.02 Aerospace/Defense Products &  Industry ServicesValuation Data Latest 10 K filing 12/31/2011 Latest 10 Q Filing 3/31/2012 Company Industry Next Report Date 7/25/2012 P/E(TTM) 14.03 24.93 No. of Employee 171,700 No. Equity Share  P/E(Forward) 15.74 NA 759.5 (Million) PEG Ratio 1.52 NA Price 71.96 Price/Sales 0.74 1.82 Market Cap (Million) 54653.62 Dividend Yield(%) 2.45 2.22 Total Debt 29591.00 Price/Book 10.72 2.47 Enterprise Value 78574.62 Price/Free Cash Flow 19.05 12.59 Price/Enterprise Value 0.70 NA Market Data Exchange Traded NASDAQ Ticker BAROE Analysis 52 Week High 77.83 52 Week Low 56.01 Particulars 2007 2008 2009 2010 2011 Short Interest Ratio 2.31 Reported PAT / PBT 0.67 0.67 0.76 0.73 0.75 Beta 1.21 Normalized PAT / PBT 0.66 0.66 0.78 0.73 0.67 Average Target Price 85.68 PBT / PBIT 0.97 0.95 0.84 0.90 0.92 One Year Return 1 PBIT / Sales 0.10 0.07 0.03 0.08 0.09 Three Months Return ‐2.86 Sales / Total Assets 2.42 2.65 2.34 1.94 1.78 One Month Return 0.8 Total Assets / Net  Worth(Without Treasury  Analyst Rating Stock) 115.11 139.74 161.71 166.24 192.42 Reported ROE (Excluding  Treasury Stock) 17.08 16.23 7.27 16.57 19.97 Normalized ROE(Excluding  Strong  Treasury Stock) 16.91 16.10 7.50 16.57 17.84 Buy  Reported ROE (Including  19 Treasury Stock) 45.25 NA 61.65 119.56 114.31 Normalized ROE(Including  Treasury Stock) 44.79 NA 63.60 119.54 102.13 Hold  3 ROE 119.54  71.5 102.13  Ownership (%) 63.60  36.8 44.79  16.91  16.10  16.57  17.84  7.50  0.00  0.65 1 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)Page 3 (C) Tanay Roy
  4. 4. Income Statement Particulars (in Millions) 2007 2008 2009 2010 2011 Sales 66387.00 60909.00 68281.00 64306.00 68735.00 Operating Income cost of goods sold 52424.00 49339.00 55474.00 50747.00 54748.00 68,735 8000.00  68,281 7000.00  Gross profit 13963.00 11570.00 12807.00 13559.00 13987.00 66,387 General selling and  6000.00  64,306 administrative expenses 3335.00 2882.00 3025.00 3128.00 2910.00 5000.00  Research and development  expenses 3850.00 3768.00 6506.00 4121.00 3918.00 4000.00  60,909 other operating  3000.00  income/(Expenses) 30.00 43.00 (114.00) (243.00) (196.00) 2000.00  Operating profit 6808.00 4963.00 3162.00 6067.00 6963.00 1000.00  Other non‐operating  income/(expenses) 484.00 247.00 (26.00) 52.00 47.00 0.00  2007 2008 2009 2010 2011 EBITDA 7292.00 5210.00 3136.00 6119.00 7010.00 Depreciation 978.00 1013.00 1066.00 1096.00 1119.00 EBIT 6314.00 4197.00 2070.00 5023.00 5891.00 Operating profit EBITDA Sales Interest expenses 196.00 202.00 339.00 516.00 498.00 EBT 6118.00 3995.00 1731.00 4507.00 5393.00 Tax 2060.00 1341.00 396.00 1196.00 1382.00 Financial Data Mining EAT 4058.00 2654.00 1335.00 3311.00 4011.00 Non recurring income  16.00 18.00 (23.00) (4.00) 7.00 Get a Free Quote Reported profit 4074.00 2672.00 1312.00 3307.00 4018.00 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 20.35  10.13  10.20  8.57  7.85  5.84  2010 21.09  9.43  9.52  7.81  7.01  5.15  2009 18.76  4.63  4.59  3.03  2.54  1.96  2008 19.00  8.15  8.55  6.89  6.56  4.36  2007 21.03  10.26  10.98  9.51  9.22  6.11  Gross profit Operating profit EBITDA EBIT EBT EATPage 4 (C) Tanay Roy
  5. 5. 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 5061.00 5061.00 5061.00 5061.00 5061.00 Additional Paid‐In Capital 4757.00 3456.00 3724.00 3866.00 4033.00 Retained Earnings  (Accumulated Deficit) 21376.00 22675.00 22746.00 24784.00 27524.00 Treasury Stock ‐ Common (14842.00) (17758.00) (15911.00) (17187.00) (16603.00) ESOP Debt Guarantee (2752.00) (1203.00) (1615.00) 0.00 0.00 Unrealized Gain (Loss) 0.00 0.00 0.00 0.00 0.00 Other Equity, Total (4596.00) (13525.00) (11877.00) (13758.00) (16500.00) Total Equity 9004.00 (1294.00) 2128.00 2766.00 3515.00 Loan Fund Long Term Debt 7455.00 6952.00 12217.00 11473.00 10018.00 Capital Lease Obligations 0.00 0.00 0.00 0.00 0.00 2007 2008 2009 2010 2011 Deferred Income Tax 1190.00 0.00 0.00 0.00 0.00 Total Equity Total Loan Fund Minority Interest 0.00 152.00 97.00 96.00 93.00 Other Liabilities, Total 9799.00 17196.00 14728.00 18835.00 25086.00 Total Loan Fund 18444.00 24300.00 27042.00 30404.00 35197.00 Total Fund 27448.00 23006.00 29170.00 33170.00 38712.00 Application of Funds Uses of funds Fixed Assets Property/Plant/Equipment,  Total ‐ Net 8265.00 8762.00 8784.00 8931.00 9313.00 Goodwill, Net 3081.00 3647.00 4319.00 4937.00 4945.00 Intangibles, Net 2093.00 2685.00 2877.00 2979.00 3044.00 Long Term Investments 4111.00 1328.00 1030.00 1111.00 1043.00 Note Receivable ‐ Long Term 6777.00 5857.00 5466.00 4395.00 4296.00Other Long Term Assets, Total 7379.00 5536.00 4302.00 5640.00 7535.00 Other Assets, Total 0.00 0.00 0.00 0.00 0.00 2007 2008 2009 2010 2011 Total Fixed Assets 31706.00 27815.00 26778.00 27993.00 30176.00 Net Current Assets Total Fixed Assets Total Current Assets 27280.00 25964.00 35275.00 40572.00 49810.00 Total Net Current Assets Total Current Liabilities 31538.00 30773.00 32883.00 35395.00 41274.00 Total Net Current Assets (4258.00) (4809.00) 2392.00 5177.00 8536.00 Total Assets 27448.00 23006.00 29170.00 33170.00 38712.00 % of Total Fund 105.62  92.70  91.66  90.92  67.20  Financial Data Mining 32.80  Get a Free Quote 7.30  8.34  9.08  (5.62) 2007 2008 2009 2010 2011 Total Loan Fund Total EquityPage 5 (C) Tanay Roy
  6. 6. Cash flow Statement Particulars (in Millions) 2007 2008 2009 2010 2011 Cash FlowCash from Operating Activities 9584.00 (401.00) 5603.00 2952.00 4023.00Cash from Investing Activities (3822.00) 1888.00 (3794.00) (4831.00) 2369.00Cash from Financing Activities (4884.00) (5202.00) 4094.00 (1962.00) (1700.00) Foreign Exchange Effects 46.00 (59.00) 44.00 (15.00) (2.00) Net Change in Cash 924.00 (3774.00) 5947.00 (3856.00) 4690.00 2007 2008 2009 2010 2011Net Cash ‐ Beginning Balance 6118 7042 3268 9215 5359 Net Cash ‐ Ending Balance 7042 3268 9215 5359 10049 Cash from Operating Activities Cash from Investing Activities Quarterly Income Statement Cash from Financing Activities Particulars (in Millions) 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 Sales 14910.00 16543.00 17727.00 19555.00 19383.00 cost of goods sold 11718.00 12821.00 13992.00 15879.00 15643.00 Gross profit 3192.00 3722.00 3735.00 3676.00 3740.00 General selling and  administrative expenses 736.00 747.00 686.00 741.00 836.00 Research and development  expenses other operating  1057.00 1047.00 901.00 913.00 835.00 Financial Data Mining income/(Expenses) (68.00) (15.00) (69.00) (44.00) (73.00) Operating profit 1331.00 1913.00 2079.00 1978.00 1996.00 Other non‐operating  Get a Free Quote income/(expenses) 13.00 14.00 49.00 (29.00) 12.00 EBITDA 1344.00 1927.00 2128.00 1949.00 2008.00 Depreciation 331.00 379.00 365.00 382.00 426.00 EBIT 1013.00 1548.00 1763.00 1567.00 1582.00 Interest expenses 130.00 123.00 121.00 124.00 119.00 EBT 883.00 1425.00 1642.00 1443.00 1463.00 Tax 295.00 483.00 548.00 56.00 539.00 EAT 588.00 942.00 1094.00 1387.00 924.00 Non recurring income  (2.00) (1.00) 4.00 6.00 (1.00) Reported profit 586.00 941.00 1098.00 1393.00 923.00 Minority Interest 0 0 0 0 0 Sales and Profit Margin 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 Sales Operating Profit Margin PAT MarginPage 6 (C) Tanay Roy
  7. 7. Growth Analysis Average  Median  Particulars (%) 2008 2009 2010 2011 5 Year CAGR Growth Growth Sales (8.25) 12.10 (5.82) 6.89 1.23 0.53 1.01 cost of goods sold (5.88) 12.43 (8.52) 7.88 1.48 1.00 1.01 Gross profit (17.14) 10.69 5.87 3.16 0.65 4.51 1.00 General selling and  administrative expenses (13.58) 4.96 3.40 (6.97) (3.05) (1.78) 0.97 Research and development  expenses (2.13) 72.66 (36.66) (4.93) 7.24 (3.53) 1.00 other operating  income/(Expenses) 43.33 (365.12) 113.16 (19.34) (56.99) 12.00 (1.46) Operating profit (27.10) (36.29) 91.87 14.77 10.81 (6.17) 1.00 Other non‐operating  income/(expenses) (48.97) (110.53) (300.00) (9.62) (117.28) (79.75) 0.63 EBITDA (28.55) (39.81) 95.12 14.56 10.33 (7.00) 0.99 Depreciation 3.58 5.23 2.81 2.10 3.43 3.20 1.03 EBIT (33.53) (50.68) 142.66 17.28 18.93 (8.12) 0.99 Interest expenses 3.06 67.82 52.21 (3.49) 29.90 27.64 1.21 EBT (34.70) (56.67) 160.37 19.66 22.16 (7.52) 0.98 Tax (34.90) (70.47) 202.02 15.55 28.05 (9.68) 0.92 EAT (34.60) (49.70) 148.01 21.14 21.21 (6.73) 1.00 Non recurring income  12.50 (227.78) (82.61) (275.00) (143.22) (155.19) 0.85 Reported profit (34.41) (50.90) 152.06 21.50 22.06 (6.46) 1.00 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 profitPage 7 (C) Tanay Roy
  8. 8. 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 78.97 81.00 81.24 78.91 79.65 Gross profit 21.03 19.00 18.76 21.09 20.35 General selling and  administrative expenses 5.02 4.73 4.43 4.86 4.23 Research and development  expenses 5.80 6.19 9.53 6.41 5.70 other operating  income/(Expenses) 0.05 0.07 (0.17) (0.38) (0.29) Source of Fund (%) 2011 Operating profit 10.26 8.15 4.63 9.43 10.13 Other non‐operating  income/(expenses) 0.73 0.41 (0.04) 0.08 0.07 9% EBITDA 10.98 8.55 4.59 9.52 10.20 Depreciation 1.47 1.66 1.56 1.70 1.63 EBIT 9.51 6.89 3.03 7.81 8.57 Interest expenses 0.30 0.33 0.50 0.80 0.72 EBT 9.22 6.56 2.54 7.01 7.85 Tax 3.10 2.20 0.58 1.86 2.01 EAT 6.11 4.36 1.96 5.15 5.84 91% Non recurring income  0.02 0.03 (0.03) (0.01) 0.01 Reported profit 6.14 4.39 1.92 5.14 5.85 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 18.44 22.00 17.35 15.26 13.07 Additional Paid‐In Capital 17.33 15.02 12.77 11.66 10.42 Retained Earnings  77.88 98.56 77.98 74.72 71.10 Application of Fund (%)  Treasury Stock ‐ Common (54.07) (77.19) (54.55) (51.81) (42.89) 2011 ESOP Debt Guarantee (10.03) (5.23) (5.54) 0.00 0.00 Unrealized Gain (Loss) 0.00 0.00 0.00 0.00 0.00 Other Equity, Total (16.74) (58.79) (40.72) (41.48) (42.62) 22% Total Equity 0 32.80 (5.62) 7.30 8.34 9.08 Loan Fund Long Term Debt 27.16 30.22 41.88 34.59 25.88 Capital Lease Obligations 0.00 0.00 0.00 0.00 0.00 Deferred Income Tax 4.34 0.00 0.00 0.00 0.00 78% Minority Interest 0.00 0.66 0.33 0.29 0.24 Other Liabilities, Total 35.70 74.75 50.49 56.78 64.80 Total Loan Fund 67.20 105.62 92.70 91.66 90.92 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 30.11 38.09 30.11 26.92 24.06 Goodwill, Net 11.22 15.85 14.81 14.88 12.77 Intangibles, Net 7.63 11.67 9.86 8.98 7.86 Long Term Investments 14.98 5.77 3.53 3.35 2.69 Note Receivable ‐ Long Term 24.69 25.46 18.74 13.25 11.10 Equity Research ReportOther Long Term Assets, Total 26.88 24.06 14.75 17.00 19.46 Other Assets, Total 0.00 0.00 0.00 0.00 0.00 Total Fixed Assets 115.51 120.90 91.80 84.39 77.95 Get a Free Quote Net Current Assets Total Current Assets 99.39 112.86 120.93 122.32 128.67 Total Current Liabilities 114.90 133.76 112.73 106.71 106.62 Total Net Current Assets (15.51) (20.90) 8.20 15.61 22.05 Total Assets 100.00 100.00 100.00 100.00 100.00Page 8 (C) Tanay Roy
  9. 9. Index Analysis Income Statement Particulars 2007 2008 2009 2010 2011 (Base Year) Sales 100.00 91.75 102.85 96.87 103.54 cost of goods sold 100.00 94.12 105.82 96.80 104.43 Gross profit 100.00 82.86 91.72 97.11 100.17 Credit/Bond Analysis General selling and  100.00 86.42 90.70 93.79 87.26 Research and development  100.00 97.87 168.99 107.04 101.77 other operating  Operating profit 100.00 100.00 143.33 72.90 (380.00) 46.45 (810.00) 89.12 (653.33) 102.28 Get a Free Quote Other non‐operating  100.00 51.03 (5.37) 10.74 9.71 EBITDA 100.00 71.45 43.01 83.91 96.13 Depreciation 100.00 103.58 109.00 112.07 114.42 EBIT 100.00 66.47 32.78 79.55 93.30 Interest expenses 100.00 103.06 172.96 263.27 254.08 EBT 100.00 65.30 28.29 73.67 88.15 Tax 100.00 65.10 19.22 58.06 67.09 EAT 100.00 65.40 32.90 81.59 98.84 Non recurring income  100.00 112.50 (143.75) (25.00) 43.75 Reported profit 100.00 65.59 32.20 81.17 98.63 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 100.00 100.00 100.00 100.00 100.00 Additional Paid‐In Capital 100.00 72.65 78.28 81.27 84.78 Retained Earnings  100.00 106.08 106.41 115.94 128.76 Treasury Stock ‐ Common 100.00 119.65 107.20 115.80 111.86 ESOP Debt Guarantee 100.00 43.71 58.68 0.00 0.00 Unrealized Gain (Loss) 0.00 0.00 0.00 0.00 0.00 Other Equity, Total 100.00 294.28 258.42 299.35 359.01 Total Equity 100.00 (14.37) 23.63 30.72 39.04 Loan Fund Long Term Debt 100.00 93.25 163.88 153.90 134.38 2007 2008 2009 2010 2011 Capital Lease Obligations 0.00 0.00 0.00 0.00 0.00 Deferred Income Tax 100.00 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 100.00 175.49 150.30 192.21 256.01 Total Loan Fund 100.00 131.75 146.62 164.84 190.83 Total Fund 100.00 83.82 106.27 120.85 141.04 Uses of funds Fixed Assets Property/Plant/Equipment,  Total ‐ Net 100.00 106.01 106.28 108.06 112.68 Goodwill, Net 100.00 118.37 140.18 160.24 160.50 Intangibles, Net 100.00 128.28 137.46 142.33 145.44 Long Term Investments 100.00 32.30 25.05 27.03 25.37 Note Receivable ‐ Long Term 100.00 86.42 80.66 64.85 63.39Other Long Term Assets, Total 100.00 75.02 58.30 76.43 102.11 Other Assets, Total 0.00 0.00 0.00 0.00 0.00 Total Fixed Assets 100.00 87.73 84.46 88.29 95.17 Net Current Assets Total Current Assets 100.00 95.18 129.31 148.72 182.59 Total Current Liabilities 100.00 97.57 104.26 112.23 130.87 Total Net Current Assets 100.00 112.94 (56.18) (121.58) (200.47) Total Assets 100.00 83.82 106.27 120.85 141.04Page 9 (C) Tanay Roy
  10. 10. Ratio Analysis‐Annual Particulars 2007 2008 2009 2010 2011 Per Share Ratio Normalized EPS 5.31 3.67 1.91 4.48 4.81 Basic EPS 5.36 3.70 1.85 4.48 5.38 Diluted EPS 5.28 3.67 1.84 4.44 5.34 Adjusted Cash EPS 6.63 5.07 3.38 5.97 6.87 EPS Trend Dividend Per Share 1.45 1.62 1.68 1.68 1.70 Operating Profit per Share 8.96 6.87 4.46 8.22 9.33 Book Value Per Share  (Excluding Treasury Stocks) 31.40 22.78 25.42 27.03 26.95 Book Value Per Share  (Including Treasury Stocks) 11.86 (1.79) 3.00 3.75 4.71 Net Operating Income Per  Share 87.41 84.29 96.22 87.12 92.06 Free Reserve Per Share 28.14 31.38 32.05 33.58 36.87 Profitability Ratio (%) 2007 2008 2009 2010 2011 Operating Margin 10.26 8.15 4.63 9.43 10.13 Gross Profit margin 21.03 19.00 18.76 21.09 20.35 Normalized EPS Basic EPS Net profit Margin 6.14 4.39 1.92 5.14 5.85Normalized Net Profit Margin 6.07 4.35 1.98 5.14 5.22 Diluted EPS Adjusted Cash Margin 7.59 6.02 3.52 6.85 7.46 Effective Tax Rate 33.67 33.57 22.88 26.54 25.63 Normalized Return on Net  Worth (Excluding Treasury  Stock) 16.91 16.10 7.50 16.57 17.84Reported Return on Net Worth  (Excluding Treasury Stock)  17.08 16.23 7.27 16.57 19.97 Debt‐Equity Ratio Return on Long Term Fund 14.84 11.61 4.50 9.97 10.38 Leverage Ratio Long term Debt/Equity 0.31 0.42 0.68 0.58 0.50 Total Debt/Equity 0.77 1.48 1.50 1.52 1.75 Owned Fund as % of Total  Fund 86.88 71.56 61.84 60.15 51.97 Fixed Assets Turnover Ratio 2.09 2.19 2.55 2.30 2.28 Liquidity Ratio 2007 2008 2009 2010 2011 Current Ratio 0.89 0.86 1.10 1.18 1.28 Current Ratio (Including St.  Loans) 0.86 0.84 1.07 1.15 1.21 Long term Debt/Equity Quick Ratio 0.56 0.34 0.56 0.46 0.43 Total Debt/Equity Inventory Turnover Ratio 6.94 4.84 4.20 3.12 2.43 Payout Ratio(%) Dividend Payout Ratio 27.82 44.72 92.36 37.60 31.49 Dividend Pay out Ratio (Cash  Liquidity Ratio Profit) 22.42 32.37 51.35 28.25 24.62 Earning Retention Ratio 72.18 55.28 7.64 62.40 68.51 Cash Earning Retention Ratio 77.58 67.63 48.65 71.75 75.38 Coverage RatioAdjusted Cash flow Time Total  Debt 0.52 (0.02) 0.21 0.10 0.11 Financial Charges Coverage  2007 2008 2009 2010 2011 Ratio (Pre Tax) 32.21 20.78 6.11 9.73 11.83 Financial Charges Coverage  Current Ratio Ratio (Post Tax) 21.70 14.14 4.94 7.42 9.05 Current Ratio (Including St. Loans) Quick RatioPage 10 (C) Tanay Roy
  11. 11. Ratio Analysis‐Quarter Per Share Ratio Per Share Ratio (QoQ) Particulars 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 Operating Income Per  Share(Rs.) 19.91 21.98 23.51 25.83 25.52Operating Profit Per Share(Rs.) 1.78 2.54 2.76 2.61 2.63 Adjusted EPS(Rs.) 0.79 1.25 1.45 1.83 1.22 Profitability Ratio Operating Profit Margin 8.93 11.56 11.73 10.12 10.30 EBITDA Margin 9.01 11.65 12.00 9.97 10.36 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 EBIT Margin 6.79 9.36 9.95 8.01 8.16 PAT Margin 3.94 5.69 6.17 7.09 4.77 Operating Income Per Share(Rs.) Operating Profit Per Share(Rs.) Adjusted EPS(Rs.) TTM Analysis Particulars (in Millions) 2011 Q4 % of Sales 2012 Q1 % of Sales Changes Sales 68735.00 100.00 73208.00 100.00 6.51 cost of goods sold 54410.00 79.16 58335.00 79.68 7.21 Gross profit 14325.00 20.84 14873.00 20.32 3.83 General selling and  2910.00 4.23 3010.00 4.11 3.44 Research and development  other operating  3918.00 (196.00) 5.70 (0.29) 3696.00 (201.00) 5.05 (0.27) (5.67) 2.55 Fundamental Analysis and  Operating profit Other non‐operating  7301.00 47.00 10.62 0.07 7966.00 46.00 10.88 0.06 9.11 (2.13) Modeling EBITDA 7348.00 10.69 8012.00 10.94 9.04 Depreciation 1457.00 2.12 1552.00 2.12 6.52 EBIT 5891.00 8.57 6460.00 8.82 9.66 Get a Free Quote Interest expenses 498.00 0.72 487.00 0.67 (2.21) EBT 5393.00 7.85 5973.00 8.16 10.75 Tax 1382.00 2.01 1626.00 2.22 17.66 EAT 4011.00 5.84 4347.00 5.94 8.38 Non recurring income  7.00 0.01 8.00 0.01 14.29 Reported profit 4018.00 5.85 4355.00 5.95 8.39 Minority Interest 0.00 0.00 0.00 0.00 NA EPS 5.30 5.72 8.02 SPS 90.79 96.38 6.16 Profit Margins (TTM) 2012 Q1 20.32  10.88  10.94  8.82  8.16  5.94  5.95  2011 Q4 20.84  10.62  10.69  8.57  7.85  5.84  5.85  Gross profit Operating profit EBITDA EBIT EBT EAT Reported profitPage 11 (C) Tanay Roy
  12. 12. Valuation and Projection Price Estimates Analyst Recommendation Average Target 85.68 Median Target 87.00 Strong Buy Buy Hold Underperform Sell High Target 96.00 Low Target 68.00 3% 0% No. of Analyst 25.00 13% Projection 37% Quarter  Quarter  Year Ending  Year Ending  Ending Jun‐12 Ending Sep‐12 Dec‐12 Dec‐13 47% Sales 19423.60 20006.80 79507.10 86084.70 EPS 1.08 1.11 4.56 5.66 Growth 17.41 12.86 15.67 8.27 Performance Over Industry Particulars Company Industry Earning Surprise Dividend Yield 2.45 2.22 Dividend Yield ‐ 5 Year Avg. 2.52 1.76 81%Dividend 5 Year Growth Rate 6.34 6.45 Payout Ratio(TTM) 29.45 30.18 Quick Ratio (MRQ) 0.42 0.57 Current Ratio (MRQ) 1.21 0.94 LT Debt to Equity (MRQ) 175.39 45.21 33% Total Debt to Equity (MRQ) 231.23 53.71 29% 30% Interest Coverage (TTM) 17.82 50.6 Gross Margin (TTM) 18.2 13 Gross Margin ‐ 5 Yr. Avg. 18.45 31.9 EBITD Margin (TTM) 10.73 ‐‐ EBITD ‐ 5 Yr. Avg 8.42 16.6 Q1 Q2 Q3 Q4 Operating Margin (TTM) 8.76 14.01Operating Margin ‐ 5 Yr. Avg. 6.9 13.82 Pre‐Tax Margin (TTM) 8.16 13.52 Pre‐Tax Margin ‐ 5 Yr. Avg. 6.62 13.29 Net Profit Margin (TTM) 5.94 9.16Net Profit Margin ‐ 5 Yr. Avg. 4.68 9.42 Effective Tax Rate (TTM) 27.22 32.67Effective Tax Rate ‐ 5 Yr. Avg. 29.32 28.73 Excel‐VBA Based Model Revenue/Employee (TTM) 426372 207802 Get a Free QuoteNet Income/Employee (TTM) 25317 17005 Receivable Turnover (TTM) 11.7 4.03 Inventory Turnover (TTM) 2.01 2.95 Asset Turnover (TTM) 0.98 0.5 Return on Assets (TTM) 5.84 3.51 Return on Assets ‐ 5 Yr. Avg. 4.97 6.76Return on Investment (TTM) 12.04 5.42Return on Investment ‐ 5 Yr.  Avg. 10.76 12.88 Return on Equity (TTM) 97.26 18.19 Return on Equity ‐ 5 Yr. Avg. 91.86 24.52Page 12 (C) Tanay Roy
  13. 13. Technical Analysis Price Chart 78 16000000 76 14000000 74 12000000 72 10000000 70 8000000 68 6000000 66 64 4000000 62 2000000 60 0 22‐Nov 1‐Feb 16‐Apr Volume Adj Close EMA(200) EMA(50) 3.00 2.00 1.00 0.00 ‐1.00 ‐2.00 MACD Signal line 100 80 60 40 20 0 RSI(14) Technical Indicators Price 71.96 AS On: 6/22/2012 EMA(13) 71.45 ADX 14 EMA(26) 71.97 DX 2 Technical Analysis Get a Free Quote EMA(50) 72.10 +DI 23 EMA(200) 69.44 ‐DI 22 RSI(14) 71.96 %K(Fast) 80.66 MACD ‐0.52 %K(Slow) 83.63 William(%R) ‐19.34 %d(Slow) 89.82Page 13 (C) Tanay Roy

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