Assumption Sheet

P/L Assumptions FY 18 FY19 FY20P FY21P FY22P

YOY Growth rates
Revenue 13% 13% 14% 15% 17%
Raw Materials 31% 18% 18% 18% 18%
Finance Costs -2% -3% -2% -3% -3%

Depreciation and amortization

Expense Same as prior year
Tax Rate 28% 36% 30% 30% 30%
Purchase of Stock-in-Trade Average of last three years
k in progress and Stock in trade Average of last three years
Excise duty on sales Same as prior year
Employees benefits Expenses Average of last three years
Other Expenses Average of last three years

Balance Sheet Assumptions

Fixed Assets (YOY Growth) 15% 2% 10% 10% 10%
Current Assets & Liabilities (Average of last 3 years)

Valuation Assumptions
Risk free rate 7.40%
Beta 0.9
Expected return from market 16%
Cost of debt 12%
Target debt: capital ratio 30%
Terminal Growth Rate 3%
FY23P

17%
18%
-3%

30%

10%
Revenue Build Up Sheet
Total Revenue 113,556 127,768 144,486 166,159 194,406
Segments % of TR FY 17 FY 18 FY19 FY20P FY21P
Auto Lamp 70% 79,489 89,437 101,140 116,311 136,084
Rear View Mirrors 10% 11,356 12,777 14,449 16,616 19,441
Plastic Mould 13% 14,762 16,610 18,783 21,601 25,273
Others 7% 7,949 8,944 10,114 11,631 13,608

0.1251498 0.130849002 0.15

 227,455 257,024
FY22P FY23P
159,218 179,917
22,745 25,702
29,569 33,413
15,922 17,992
 Income Statement

S No Particular FY 17 FY 18 FY19
1 Revenue 113,556 127,768 144,486
Total Revenue 113,556 127,768 144,486
2 OPERATING EXPENSES:
a) Cost of Raw Materials and Components Consumed 57,600 75,720 89,560
b) Purchase of Stock-in-Trade 3,114 467 742
c) Changes in Inventories of Finished Goods, Work in progr -2,043 -2,287 -492
d) Excise duty on sales 11,671 3,478 0
e) Employees benefits Expenses 14,570 17,670 19,570
f) Other Expenses 16,438 18,198 19,494
Total operating expenses 101,351 113,246 128,873
3 EBITDA 12,205 14,521 15,613
Finance Costs 2,324 2,272 2,210
Depreciation and amortization Expense 3,923 4,432 4,892
Exceptional Item 1,419 -341 0
4 EBIT 4,540 8,157 8,511
Tax Expense 1,257 2,902 2,962
5 Profit After Tax 3,282 5,255 5,549

Revenue GW 13% 13%

EBITDA 12% 14%
60% 6%

12,205 14,521 15,613

 (in INR Lakhs)
FY20P FY21P FY22P FY23P
166,159 194,406 227,455 257,024
166,159 194,406 227,455 257,024

105,929 125,290 148,189 175,273

1,441 883 1,022 1,116
-492 -1,091 -692 -758
0 0 0 0
17,270 18,170 18,337 17,926
18,043 18,579 18,705 18,442
142,191 161,831 185,561 211,999
23,967 32,575 41,894 45,025
2,155 2,098 2,045 1,992
4,892 4,892 4,892 4,892
0 0 0 0
16,921 25,585 34,957 38,142
5,076 7,676 10,487 11,443
11,845 17,910 24,470 26,699

15% 17% 17% 13%

10% 14% 15% 14%
113% 51% 37% 9%

22,110 22,731 22,897 23,660

 Balance Sheet
S No Particular FY 17 FY 18 FY19 FY20P FY21P
Assets
1 Non Current Assets
(a) Property, Plant and Equipment 47,853 55,260 56,316 61,947 68,142
(b) Capital work-in-progress 563 561 791 870 957
(c) Intangible assets 68 119 96 106 116
(d) Intangible assets under development 0 131 358 394 434
(e) Financial Assets
(i) Investments 66 94 2,774 3,052 3,357
(ii) Trade receivables 1,057 125 125 137 151
(iii) Loans 725 779 890 979 1,077
(iv) Other Financial Assets 198 5 202 222 244
(f) Income tax assets (net) 425 449 449 449 449
(g) Other non-current assets 636 1,143 831 831 831
Total Non Current Assets 51,591 58,665 62,833 68,988 75,759

2 Current Assets
(a) Inventories 10,242 14,027 14,724 12,998 13,916
(b) Financial Assets
(i) Investments 8,609 1,910 - 5,260 3,585
(ii) Trade receivables 11,882 14,395 14,638 13,638 14,224
(iii) Cash and cash equivalents 2,271 110 119 833 354
(iv) Bank balances other than (iii) 13 43 26 27 32
above
(v) Loans 49 58 50 50 50
(vi) Other Financial Assets 67 2,785 1,690 1,514 1,996
(c) Current Tax Assets (Net) - - - - -
(d) Other current assets 2,202 1,517 2,092 1,937 1,848
3 Total Current Assets 35,335 34,844 33,339 36,257 36,006
Total Assets 86,926 93,509 96,172 105,245 111,765
EQUITY AND LIABILITIES
1 EQUITY
(a) Equity Share capital 1,316 1,316 1,316 1,316 1,316
(b) Other Equity 39,666 43,583 46,349 56,827 73,355
Total Equity 40,982 44,899 47,665 58,143 74,671
2 Liabilities
NON CURRENT LIABILITIES
(a) Financial Liabilities
(i) Borrowings 11,947 8,650 9,296 9,965 9,304
(ii) Trade payables - -
(iii) Other financial liabilities 258 187 0 148 112
(b) Provisions 267 385 674 442 500
(c) Deferred tax liabilities (Net) 3,250 4,385 5,192 4,275 4,617
(d) Other non-current liabilities -
Total Non Current Liabilities 15,721 13,607 15,162 14,830 14,533
CURRENT LIABILITIES
(a) Financial Liabilities
(i) Borrowings 6,415 3,707 3,847 4,656 4,070
(ii) Trade payables 15,073 21,973 18,878 18,641 19,831
(iii) Other financial liabilities 6,657 7,407 6,351 6,805 6,854
(b) Other current liabilities 1,699 1,556 3,808 2,354 2,573
(c) Provisions 379 251 190 273 238
(d) Current Tax Liabilities (Net) - 109 271 190 190
Total Current Liabilities 30,223 35,003 33,345 32,920 33,756
Total Liabilities 45,944 48,610 48,507 47,751 48,289
TOTAL EQUITY AND LIABILITIES 86,926 93,509 96,172 105,893 122,960
 (In INR Lakhs)
FY22P FY23P

74,956 82,452
1,053 1,158
128 141
477 525

3,692 4,062
166 183
1,185 1,304
269 296
449 449
831 831
83,206 91,399

13,880 13,598

4,422 4,422
14,166 14,009
436 541
28 29

50 50
1,734 1,748
- -
1,959 1,915
36,675 36,313
119,881 127,712

1,316 1,316
96,428 121,721
97,744 123,037

9,521 9,597

87 116
539 494
4,695 4,529

14,842 14,735

4,191 4,306
19,117 19,196
6,670 6,777
2,912 2,613
234 248
 217 199
33,341 33,339
48,182 48,074
145,927 171,111
DCF Valuation
Risk free rate 7.4%
Beta 0.9
Expected return from market 16%
Cost of equity 15%
Cost of debt 12%
Post tax cost of debt 8%
Target debt: capital ratio 30%
WACC 13%
Terminal Growth Rate 3%

Free Cashflow to the Firm (FCFF) FY20P FY21P FY22P

EBIT*(1-Tax Rate) 16,921 25,585 34,957
[+] Depreciation 4,892 4,892 4,892
[-] Increase in Working Capital 1,087 -1,085 361
[-] Capex 1,056 5,632 6,195
Free Cashflow to the Firm (FCFF) 19,670 25,930 33,294

Terminal Value
Discount Factors
No of Years 1 2 3
Discount Factor 0.9 0.8 0.7
Enterprise Value
Present Value of FCFF 17,389 20,264 23,002
[+] Present Value of Terminal Value
Enterprise Value 287,665
(-) Debt 14,830
(-) Cash 833
272,001 0.01 2,720.01
1032 1.32
263.57 2,060.62
(In INR Lakhs)
FY23P
38,142
4,892
2,974
6,814
33,246

338,436

4
0.6

20,305
206,705

1.32
0.01
132
Share Price 2,060.62
Relative Valuation(Similar Valuation)

Trading Comparables
Sl. No. Company EV/EBITDA P/ E (x) EV/ Sales
FY19 FY19 FY19
A Lumax Industries 10.3x 20x 1x
B Minda Industries 34.0x 27x 4x
Mean 22.1x 23.5x 2.6x
Median 22.1x 23.5x 2.6x

Relative Valuation on the Basis of EV/EBITDA Multiple

(In INR La
Sl. No. Parameter Multiple (x) EBITDA EV
A FY19 EV/EBITDA 22.0x 15,613 343,476
B FY23 EV/EBITDA 22.0x 45,025 990,552

Relative Valuation on the Basis of EV/Sales Multiple

(In INR La
Sl. No. Parameter Multiple (x) EBITDA EV
A FY19 EV/sales 2.6x 15,613 40,905
B FY23 EV/sales 2.6x 45,025 117,966
 (In INR Lakhs)
[+] Cash & Cash equivalent [+] Investments [-] Secured LoansEquity Value
119 2,774 9,296 337,073
541 4,062 9,597 985,558

(In INR Lakhs)

[+] Cash & Cash equivalent [+] Investments [-] Secured LoansEquity Value
119 2,774 9,296 34,502
541 4,062 9,597 112,972
 Changes in Equity
Apr-18 Apr-19 Apr-20 Apr-21
Opening Balance 39,666 43,583 46,349 56,827
(+) Profit 5,255 5,549 11,845 17,910
(-) Other Comprehensive Income 71.38 85 100 114
(-) Dividend Paid 1052 1052 1052 1052
(-) Tax on dividend paid 214.32 215 215 215
Closing Balance 43,583 47,780 56,827 73,355
 (In INR Lakhs)
Apr-22 Apr-23
73,355 96,428
24,470 26,699
130 140
1052 1052
215 215
96,428 121,721