Safal Niveshak Stock Analysis Excel (Ver. 4.

www.safalniveshak.com

HOW TO USE THIS SPREADSHEET

Step 1 - This spreadsheet works only on Screener.in. The first step is to create a free account here - https://www.screener.in/re
Step 2 - After creating your account, while you are logged in to Screener.in website, visit this page - https://www.screener.in/ex
Step 3 - Visit the home page of Screener.in and choose a company of your choice. Once you do that, you will see details of you
financial statement table called "Quarterly Results" and click on "View Consolidated". Now, all data you see for this company wi

Step 4 - Scroll back to the top of the page, and you will see a button "Export to Excel" on the right side. Click the button and the
the exact format as "Safal Niveshak's Stock Analysis Excel Ver. 4.0". Now onwards, any excel you export for any company on S
Step 5 - Email me your love and testimonial for helping you with this excel. :-)

IMPORTANT INSTRUCTIONS
1. Ensure that the company whose data you are downloading has numbers at least starting from FY08 (March 2008). This is be
from, say, FY10, you will see incorrect data for FY08 and FY09 (which will be of Hero Motocorp on whose financials I have crea

2. All financial data of your chosen company will be automatically updated in the sheet you download, except "Cash and Bank"
figures, which you must update manually from the company's annual reports. Don’t forget to make these changes as these num
3. You may update the sheet and add your own analysis, formulae etc. and then upload again to Screener.in site using the Step
"Data Sheet" because this will cause errors in your future downloads.
4. DON’T touch any cell except the black ones, where you are required to update the numbers manually from Annual Reports (j
the growth assumptions etc.
4. I have added Comments and Instructions wherever necessary so as to explain the concepts. Read those carefully before wo
5. This sheet is not a replacement of the work required to read annual reports as part of the analysis process. So please do tha
some discrepancy in numbers (though rare), but you will know this only when you read annual reports.
6. I could not find a bug/errors in this spreadsheet, but if you notice some, please email me at - vishal@safalniveshak.com - and
7. I will keep on updating the sheet from time to time and will update the same on the website. I invite you to share your feedba
together.
8. This excel won't work for banking and financial services companies.

Note: All data is sourced from Screener.in

 Safal Niveshak Stock Warning! Excel can be a wonder
a deadly weapon if you wish to
Analysis Excel (Ver. 4.0) careful of what you are getting
garbage out. And if you need the
a given stock, you mu
www.safalniveshak.com
Basic Company Details
Parameters Details
Company GILLETTE INDIA LTD
Current Stock Price (Rs) 6,521 Remember! Focus on decisions
Face Value (Rs) 10.0 evidence
No. of Shares (Crore) 3.3
Market Capitalization (Rs Crore) 21,251

Key Financials - Trend

Parameters Details
Sales Growth (9-Year CAGR) 10.9% Please! It's your money. Please
cause you to lose it all! I've desi
Profit Before Tax Growth (9-Year CAGR) 7.7% but you alone are responsible f
Net Profit Growth (8-Year CAGR) 8.2% ever after! I am not a sadist w
Average Debt/Equity (5-Years, x) - analyzing companies on your
instead of a map, for you can c
Average Return on Equity (5-Years) 27.1%
A
Average P/E (5-Years, x) 94.1
Latest P/E (x) 94.3
 Excel can be a wonderful tool to analyze the past. But it can be
y weapon if you wish to use it to predict the future! So be very
of what you are getting into. Here, garbage in will always equal
out. And if you need the excel to tell you what you must do with
a given stock, you must not use this tool anyways.

er! Focus on decisions, not outcomes. Look for disconfirming

evidence. Calculate. Pray!

It's your money. Please don't blame me if results of this excel

u to lose it all! I've designed this excel to aid your own thinking,
alone are responsible for your actions. I want to live peacefully
fter! I am not a sadist who wants you to do the hard work by
ng companies on your own. But I'd rather give you a compass
of a map, for you can confuse map with territory and lose it all.
All the best!
 Buffett Checklist - Read, Remember, Follow!
Source - Buffettology by Mary Buffett & David Clark
Parameter

Consumer monopoly or commodity?

Understand how business works

Is the company conservatively financed?

Are earnings strong and do they show an

upward trend?

Does the company stick with what it

knows?

Has the company been buying back its

shares?

Have retained earnings been invested

well?

Is the company’s return on equity above

average?

Is the company free to adjust prices to

inflation?
Does the company need to constantly
reinvest in capital?

Conclusion

Never Forget
 Buffett Checklist - Read, Remember, Follow!
Source - Buffettology by Mary Buffett & David Clark
Explanation

Seek out companies that have no or less competition, either due to a patent or brand name or similar intangible that
makes the product unique. Such companies will typically have high gross and operating profit margins because of their
unique niche. However, don't just go on margins as high margins may simply highlight companies within industries with
traditionally high margins. Thus, look for companies with gross, operating and net profit margins above industry norms.
Also look for strong growth in earnings and high return on equity in the past.

Try to invest in industries where you possess some specialized knowledge (where you work) or can more effectively
judge a company, its industry, and its competitive environment (simple products you consume). While it is difficult to
construct a quantitative filter, you should be able to identify areas of interest. You should "only" consider analyzing
those companies that operate in areas that you can clearly grasp - your circle of competence. Of course you can
increase the size of the circle, but only over time by learning about new industries. More important than the size of the
circle is to know its boundaries.

Seeks out companies with conservative financing, which equates to a simple, safe balance sheet. Such companies
tend to have strong cash flows, with little need for long-term debt. Look for low debt to equity or low debt-burden ratios.
Also seek companies that have history of consistently generating positive free cash flows.

Rising earnings serve as a good catalyst for stock prices. So seek companies with strong, consistent, and expanding
earnings (profits). Seek companies with 5/10 year earnings per share growth greater than 25% (along with safe
balance sheets). To help indicate that earnings growth is still strong, look for companies where the last 3-years
earnings growth rate is higher than the last 10-years growth rate. More important than the rate of growth is the
consistency in such growth. So exclude companies with volatile earnings growth in the past, even if the "average"
growth has been high.

Like you should stock to your circle of competence, a company should invest its capital only in those businesses within
its circle of competence. This is a difficult factor to screen for on a quantitative level. Before investing in a company,
look at the company’s past pattern of acquisitions and new directions. They should fit within the primary range of
operations for the firm. Be cautious of companies that have been very aggressive in acquisitions in the past.

Buffett prefers that firms reinvest their earnings within the company, provided that profitable opportunities exist. When
companies have excess cash flow, Buffett favours shareholder-enhancing maneuvers such as share buybacks. While
we do not screen for this factor, a follow-up examination of a company would reveal if it has a share buyback plan in
place.

Seek companies where earnings have risen as retained earnings (earnings after paying dividends) have been
employed profitably. A great way to screen for such companies is by looking at those that have had consistent
earnings and strong return on equity in the past.

Consider it a positive sign when a company is able to earn above-average (better than competitors) returns on equity
without employing much debt. Average return on equity for Indian companies over the last 10 years is approximately
16%. Thus, seek companies that earn at least this much (16%) or more than this. Again, consistency is the key here.

That's what is called "pricing power". Companies with moat (as seen from other screening metrics as suggested above
(like high ROE, high grow margins, low debt etc.) are able to adjust prices to inflation without the risk of losing
significant volume sales.
Companies that consistently need capital to grow their sales and profits are like bank savings account, and thus bad
for an investor's long term portfolio. Seek companies that don't need high capital investments consistently. Retained
earnings must first go toward maintaining current operations at competitive levels, so the lower the amount needed to
maintain current operations, the better. Here, more than just an absolute assessment, a comparison against
competitors will help a lot. Seek companies that consistently generate positive and rising free cash flows.

Sensible investing is always about using “folly and discipline” - the discipline to identify excellent businesses, and wait
for the folly of the market to drive down the value of these businesses to attractive levels. You will have little trouble
understanding this philosophy. However, its successful implementation is dependent upon your dedication to learn and
follow the principles, and apply them to pick stocks successfully.

Focus on decisions, not outcomes. Look for disconfirming evidence.

 Balance Sheet
GILLETTE INDIA LTD
Rs Cr Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18
Equity Share Capital 33 33 33 33 33 33 33 33 33 33
Reserves 458 538 568 587 617 611 710 904 468 662
Borrowings - - - - - - - - - -
Other Liabilities 162 269 240 431 397 420 475 493 503 520
Total 653 840 840 1,050 1,046 1,063 1,217 1,430 1,003 1,214

Net Block 89 121 125 151 170 173 156 178 214 264
Capital Work in Progress 2 3 34 38 30 61 63 88 63 40
Investments - - - - - - - - - -
Other Assets 562 716 681 861 846 830 998 1,164 726 909
Total 653 840 840 1,050 1,046 1,063 1,217 1,430 1,003 1,214

Working Capital 399 448 441 430 449 410 523 670 223 389
Debtors 61 78 62 69 93 92 117 110 130 176
Inventory 101 141 194 211 240 231 202 245 222 200
Cash & Bank** 4,735 3,367 3,190 3,393 2,605 3,546 4,739 5,829
** Manually enter this number; Convert to Rs Crore if not already done in the Annual Reports; Use Cash+Bank+Current Investments from Consolidated Balance Sheet in Annual Reports

Debtor Days 33 34 21 20 24 20 23 23 27 38
Inventory Turnover 7 6 5 6 6 7 9 7 8 8
Fixed Asset Turnover 7.4 7.1 8.5 8.1 8.4 9.6 12.0 9.9 8.1 6.3
Debt/Equity - - - - - - - - - -
Return on Equity 23% 24% 14% 12% 13% 8% 21% 23% 51% 33%
Return on Capital Employed 36% 37% 22% 19% 21% 12% 30% 35% 76% 51%
 Profit & Loss Account / Income Statement
GILLETTE INDIA LTD
Rs Cr Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Trailing
Sales 662 852 1,058 1,233 1,438 1,665 1,875 1,755 1,734 1,677 1,793
% Growth YOY 29% 24% 16% 17% 16% 13% -6% -1% -3%
Expenses 510 647 936 1,125 1,304 1,592 1,684 1,449 1,348 1,290 1,411
Material Cost (% of Sales) 38% 40% 44% 46% 48% 49% 44% 51% 47% 40% Check for wide fluctuations in key
Power and Fuel 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% expense items. For manufacturing
Other Mfr. Exp 2% 2% 3% 4% 4% 2% 3% 3% 4% 3% firms, check their material costs etc. For
Employee Cost 7% 6% 6% 6% 5% 6% 6% 6% 6% 7% services firms, look at employee costs.
Selling and Admin Cost 26% 29% 37% 33% 32% 37% 33% 21% 19% 21%
Operating Profit 152 205 123 108 134 73 191 306 385 387 383
Operating Profit Margin 23% 24% 12% 9% 9% 4% 10% 17% 22% 23% 21%
Other Income 37 20 31 33 36 38 68 50 34 8 17
Other Income as % of Sales 5.6% 2.3% 2.9% 2.7% 2.5% 2.3% 3.6% 2.9% 2.0% 0.4% 1.0%
Depreciation 11 13 20 24 31 33 39 30 38 42 46
Interest 0 0 0 0 0 0 5 6 7 7 8
Interest Coverage(Times) 5,901 5,320 13,398 11,698 6,914 216 47 59 57 47 47
Profit before tax (PBT) 177 213 134 117 138 78 215 320 374 345 346
% Growth YOY 20% -37% -13% 18% -44% 177% 49% 17% -8%
PBT Margin 27% 25% 13% 9% 10% 5% 11% 18% 22% 21% 19%
Tax 64 76 48 41 51 26 57 106 121 116 121
Net profit 113 137 86 76 87 51 158 214 253 229 225
% Growth YOY 21% -37% -12% 15% -41% 208% 35% 18% -9%
Net Profit Margin 17% 16% 8% 6% 6% 3% 8% 12% 15% 14% 13%
EPS 34.7 42.1 26.4 23.2 26.7 15.8 48.5 65.7 77.7 70.3 69.1
% Growth YOY 21% -37% -12% 15% -41% 208% 35% 18% -9%
Price to earning 23.9 42.6 82.7 100.7 84.5 140.4 99.1 71.7 66.1 93.4 94.3
Price 828 1,792 2,185 2,341 2,261 2,215 4,810 4,711 5,138 6,564 6,521
Dividend Payout 36.0% 35.7% 56.7% 64.5% 56.1% 95.1% 30.9% 60.1% 211.2% 32.7%
Market Cap 2,699 5,839 7,121 7,629 7,369 7,218 15,675 15,352 16,741 21,389
Retained Earnings 72 88 37 27 38 3 109 85 -281 154
Buffett's $1 Test 56.1

TRENDS: 10 YEARS 7 YEARS 5 YEARS 3 YEARS

Sales Growth 10.9% 6.8% 3.1% -3.6%
PBT Growth 7.7% 14.4% 20.0% 17.0%
PBT Margin 16.0% 13.7% 15.3% 20.1%
Price to Earning 80.5 93.7 94.1 77.1

Check for long term vs short term trends here. Check if the growth over
past 3 or 5 years has slowed down / improved compared to long term (7
to 10 years) growth numbers.
 Cash Flow Statement
GILLETTE INDIA LTD
Rs Cr Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Total
Cash from Operating Activity (CFO) 72 161 -25 141 29 96 172 279 248 237 1,412
% Growth YoY 123% -115% -672% -79% 228% 79% 63% -11% -4%
Cash from Investing Activity -8 -0 -52 -42 78 -36 -103 155 14 -77 -70
Cash from Financing Activity -48 -48 -57 -57 -57 -57 -58 -79 -684 -39 -1,183
Net Cash Flow 16 113 -133 42 51 3 12 356 -422 121 159
CFO/Sales 11% 19% -2% 11% 2% 6% 9% 16% 14% 14%
CFO/Net Profit 64% 117% -29% 186% 34% 187% 109% 130% 98% 104%
Capex** 315 212 364 565 607 937 1,156 1,638 1,238 824
FCF -243 -51 -389 -424 -578 -841 -984 -1,359 -990 -587 -6,444
Average FCF (3 Years) -979
FCF Growth YoY -79% 668% 9% 36% 46% 17% 38% -27% -41%
FCF/Sales -37% -6% -37% -34% -40% -51% -52% -77% -57% -35%
FCF/Net Profit -215% -37% -451% -560% -663% -1635% -622% -634% -391% -256%

** Manually enter this number;

Convert to Rs Crore if not already
done in the Annual Reports; Use
"Capital expenditure" number
shown under "Cash Flow from
Investing Activities" segment of
Consolidated Cash Flow Statement
available in the Annual Reports
 Key Ratios
GILLETTE INDIA LTD
Jun/09 Jun/10 Jun/11 Jun/12 Jun/13 Jun/14 Jun/15 Jun/16 Jun/17
Sales Growth 28.9% 24.2% 16.5% 16.6% 15.8% 12.6% -6.4% -1.2%
PBT Growth 20.2% -37.0% -12.7% 18.2% -43.9% 177.4% 49.0% 16.8%
Net Profit Growth 21.2% -37.2% -12.1% 15.1% -41.0% 207.5% 35.4% 18.2%
Dividend Growth 20.0% 0.0% 0.0% 0.0% 0.0% 0.0% 163.5% 315.0%
Operating Cash Flow Growth 122.8% ### ### -79.2% 227.6% 78.5% 62.5% -11.3%
Free Cash Flow Growth -79.2% 668.0% 9.1% 36.2% 45.6% 17.1% 38.1% -27.1%

Operating Margin 22.9% 24.1% 11.6% 8.8% 9.3% 4.4% 10.2% 17.4% 22.2%
PBT Margin 26.8% 25.0% 12.7% 9.5% 9.6% 4.7% 11.5% 18.3% 21.6%
Net Margin 17.1% 16.1% 8.1% 6.1% 6.1% 3.1% 8.4% 12.2% 14.6%

Debtor Days 33.4 33.6 21.5 20.3 23.5 20.2 22.7 22.8 27.4
Inventory Turnover 6.6 6.0 5.5 5.8 6.0 7.2 9.3 7.2 7.8
Fixed Asset Turnover 7.4 7.1 8.5 8.1 8.4 9.6 12.0 9.9 8.1
Debt/Equity - - - - - - - - -
Debt/Assets 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Interest Coverage (Times) ### 5,320.0 ### ### ### 216.3 47.2 58.7 56.5
Return on Equity 23.0% 24.0% 14.4% 12.2% 13.4% 8.0% 21.3% 22.9% 50.6%
Return on Capital Employed 36.1% 37.3% 22.3% 18.9% 21.3% 12.1% 29.6% 34.8% 76.1%
Free Cash Flow (Rs Cr) -243 -51 -389 -424 -578 -841 -984 -1,359 -990
Jun/18
-3.3%
-7.9%
-9.5%
-86.0%
-4.4%
-40.7%

23.1%
20.6%
13.7%

38.3
8.4
6.3
-
0.0%
47.2
33.0%
50.7%
-587
What to look for?
Higher is better, but also look for long term stability and consistency
Higher is better, but also look for long term stability and consistency
Higher is better, but also look for long term stability and consistency
Higher isn't always better, esp. when the company is generating high ROE, which means the management is allocating capital
Higher is better, but also look for long term stability and consistency
Higher is better, but also look for long term stability and consistency

Higher is better, but also look for long term stability and consistency, plus the nature of the industry. Also compare with industry
Higher is better, but also look for long term stability and consistency, plus the nature of the industry. Also compare with industry
Higher is better, but also look for long term stability and consistency, plus the nature of the industry. Also compare with industry

Lower/reducing is better. Compare with industry peer(s)

Higher/rising is better. Compare with industry peer(s)
Higher/rising is better. Compare with industry peer(s)
Nil / lower than 0.5 / reducing is better
Lower is better
Look for number > 5
Look for number > 20%. Also check if the debt is low/nil. Compare with industry peer(s)
Look for number > 20%. Also check if the debt is low/nil. Compare with industry peer(s)
Look for positive and rising numbers. If the company consistently generates negative FCF over say 10 years, avoid it.
30% Profit Margin Capital Alloc
80%
Check for a rising trend and
25% 70% Numbers > 20% long term a
60% has zero/marginal debt. Com
20%
50%
15% 40%
10% 30%
20%
5% Check for a rising trend and/or consistency. 10%
Compare with a close competitor
0% 0%
Jan/09 Jan/11 Jan/13 Jan/15 Jan/17 Jan/09 Jan/11 Jan

Operating Margin PBT Margin

Net Margin ROE

2,000
Revenue Revenue and Pro
250%
Check for a ris
1,800 Check for a rising trend. Compare grow
200%
1,600
1,400 150%
1,200
100%
1,000
800 50%
600 0%
400 Jan/10 Jan/12
200 -50%
- -100%
Jan/09 Jan/11 Jan/13 Jan/15 Jan/17 Revenue Growth
Net Profit Grow

400 Profit Over Time Operating and

500 Check
Check for a rising trend. for positive numbe
350 which are rising over tim
300 -
250 Jan/09 Jan/11 Ja
200 -500
150
100 -1,000
50
- -1,500
Jan/09 Jan/11 Jan/13 Jan/15 Jan/17

PBT Net Profit Operating Cash Flo

Data for Charts (Please don't touch any number below)
Margins
Jun/09 Jun/10 Jun/11 Jun/12 Jun/13 Jun/14 Jun/15 Jun/16 Jun/17
Operating Margin 23% 24% 12% 9% 9% 4% 10% 17% 22%
PBT Margin 27% 25% 13% 9% 10% 5% 11% 18% 22%
Net Margin 17% 16% 8% 6% 6% 3% 8% 12% 15%

Management Effectiveness
Jun/09 Jun/10 Jun/11 Jun/12 Jun/13 Jun/14 Jun/15 Jun/16 Jun/17
ROE 23% 24% 14% 12% 13% 8% 21% 23% 51%
ROCE 36% 37% 22% 19% 21% 12% 30% 35% 76%

Revenue & Profit Growth

Jun/10 Jun/11 Jun/12 Jun/13 Jun/14 Jun/15 Jun/16 Jun/17 Jun/18
Revenue Growth 29% 24% 16% 17% 16% 13% -6% -1% -3%
PBT Growth 20% -37% -13% 18% -44% 177% 49% 17% -8%
Net Profit Growth 21% -37% -12% 15% -41% 208% 35% 18% -9%

Revenue & Profit

Jun/09 Jun/10 Jun/11 Jun/12 Jun/13 Jun/14 Jun/15 Jun/16 Jun/17
Revenue 662 852 1,058 1,233 1,438 1,665 1,875 1,755 1,734
PBT 177 213 134 117 138 78 215 320 374
Net Profit 113 137 86 76 87 51 158 214 253

Cash Flows
Jun/09 Jun/10 Jun/11 Jun/12 Jun/13 Jun/14 Jun/15 Jun/16 Jun/17
Operating Cash Flow 72 161 -25 141 29 96 172 279 248
Free Cash Flow -243 -51 -389 -424 -578 -841 -984 -1,359 -990
%
Capital Allocation Quality
Check for a rising trend and/or consistency.
% Numbers > 20% long term are good. Also check if the company
% has zero/marginal debt. Compare with a close competitor Note: Please ignore the dates
% on the X-axis. The figures are
% for/as on the year ending date,
which for most Indian
% companies would be 31st
% March of that year
%
%
Jan/09 Jan/11 Jan/13 Jan/15 Jan/17

ROE ROCE

% Revenue and Profit Growth (YoY)

Check for a rising trend and/or low volatility.
% Compare growth rates with a close competitor.

%
%
%
%
Jan/10 Jan/12 Jan/14 Jan/16 Jan/18
%
%
Revenue Growth PBT Growth
Net Profit Growth

Operating and Free Cash Flow

0 Check for positive numbers and
which are rising over time.
-
Jan/09 Jan/11 Jan/13 Jan/15 Jan/17
0

Operating Cash Flow Free Cash Flow

Jun/18
23%
21%
14%

Jun/18
33%
51%

Jun/18
1,677
345
229

Jun/18
237
-587
 Common Size P&L
Rs Cr Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
Sales 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Raw Material Cost 38% 40% 44% 46% 48% 49% 44% 51% 47% 40%
Change in Inventory -1% 2% 3% 2% 2% 0% -2% 2% 1% -1%
Power and Fuel 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%
Other Mfr. Exp 2% 2% 3% 4% 4% 2% 3% 3% 4% 3%
Employee Cost 7% 6% 6% 6% 5% 6% 6% 6% 6% 7%
Selling and Admin Cost 26% 29% 37% 33% 32% 37% 33% 21% 19% 21%
Other Expenses 3% 1% 1% 3% 3% 2% 3% 3% 2% 3%
Operating Profit 24% 20% 6% 5% 6% 4% 13% 13% 20% 26%
Other Income 6% 2% 3% 3% 2% 2% 4% 3% 2% 0%
Depreciation 2% 1% 2% 2% 2% 2% 2% 2% 2% 3%
Interest 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Profit Before Tax 27% 25% 13% 9% 10% 5% 11% 18% 22% 21%
Tax 10% 9% 5% 3% 4% 2% 3% 6% 7% 7%
Net Profit 17% 16% 8% 6% 6% 3% 8% 12% 15% 14%
Dividend Amount 6% 6% 5% 4% 3% 3% 3% 7% 31% 4%

Common Size Balance Sheet

Rs Cr Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
Equity Share Capital 5% 4% 4% 3% 3% 3% 3% 2% 3% 3%
Reserves 70% 64% 68% 56% 59% 57% 58% 63% 47% 55%
Borrowings 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Other Liabilities 25% 32% 29% 41% 38% 39% 39% 35% 50% 43%
Total Liabilities 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Net Block 14% 14% 15% 14% 16% 16% 13% 12% 21% 22%
Capital Work in Progress 0% 0% 4% 4% 3% 6% 5% 6% 6% 3%
Investments 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Other Assets 86% 85% 81% 82% 81% 78% 82% 81% 72% 75%
Total Assets 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Receivables 9% 9% 7% 7% 9% 9% 10% 8% 13% 15%
Inventory 15% 17% 23% 20% 23% 22% 17% 17% 22% 16%
Cash & Bank 14% 25% 9% 11% 16% 16% 15% 38% 12% 19%
 A common-size financial statement is displays line
items as a percentage of one selected or common
figure. Creating common-size financial statements
makes it easier to analyze a company over time and
compare it with its peers. Using common-size
financial statements helps investors spot trends that
a raw financial statement may not uncover.
 Dhandho Intrinsic Value Calculation
Read the book - The Dhandho Investor by Mohnish Pabrai

GILLETTE INDIA LTD GILLETTE INDIA LTD

Dhandho IV - Lower Range Dhandho IV - Higher Range
Year FCF (Rs Cr) PV of FCF (Rs Cr) Assumed FCF Growth Year
0 Excess Cash (Latest) 5,829 Year 1-3 15% 0 Excess Cash (Latest)
1 FY18 (1,125) (1,005) Year 4-6 10% 1 FY18
2 FY19 (1,294) (1,032) Year 7-10 5% 2 FY19
3 FY20 (1,488) (1,059) Discount Rate 12% 3 FY20
4 FY21 (1,637) (1,040) 4 FY21
5 FY22 (1,801) (1,022) Last 5-Years' CAGR 5 FY22
6 FY23 (1,981) (1,004) Sales 3% 6 FY23
7 FY24 (2,080) (941) PBT 20% 7 FY24
8 FY25 (2,184) (882) FCF 0% 8 FY25
9 FY26 (2,293) (827) 9 FY26
10 FY27 (2,408) (775) 10 FY27
10 -24,078 (7,752) 10
Intrinsic Value (11,510) Intrinsic Value
Current Mkt. Cap. 21,251 Current Mkt. Cap.
Premium/(Discount) to IV -285% Premium/(Discount) to IV

Note: See explanation of this model here

P.S. In case of companies earning negative FCF, where this model will not work, you must use a normalized positive FCF as
starting number. This number is your assumption of FCF the business will earn in a normal year, without capex. Check the his
this business while arriving at your assumption, and use your judgment wisely without twisting the model to fit your version of
Calculation
by Mohnish Pabrai

GILLETTE INDIA LTD

Dhandho IV - Higher Range
FCF (Rs Cr) PV of FCF (Rs Cr) Assumed FCF Growth
Excess Cash (Latest) 5,829 Year 1-3 20%
(1,174) (1,048) Year 4-6 15%
(1,409) (1,123) Year 7-10 10%
(1,691) (1,204) Discount Rate 12%
(1,945) (1,236)
(2,236) (1,269)
(2,572) (1,303)
(2,829) (1,280)
(3,112) (1,257)
(3,423) (1,234)
(3,765) (1,212)
(56,478) (18,185)
Intrinsic Value (24,522)
Current Mkt. Cap. 21,251
Premium/(Discount) to IV -187%

ust use a normalized positive FCF as the

al year, without capex. Check the history of
sting the model to fit your version of reality.
 Ben Graham Formula (Low Range) Ben Graham Formula (High Range)
Company Name GILLETTE INDIA LTD Company Name
Year Ended Jun/18 Year Ended

Avg 5-Yr Net Profit (Rs Crore) 181.2 Avg 5-Yr Net Profit (Rs Crore)
PE Ratio at 0% Growth 8.5 PE Ratio at 0% Growth
Long-Term Growth Rate 10.7 Long-Term Growth Rate

Ben Graham Value (Rs Crore) 5,402 Ben Graham Value (Rs Crore)
Current Market Cap (Rs Crore) 21,251 Current Market Cap (Rs Crore)

EXPLANATION
Ben Graham's Original Formula: Value = EPS x (8.5 + 2G)
Here, EPS is the trailing 12 month EPS, 8.5 is the P/E ratio of a stock with 0% growth and g is the growth rate for the next 7-10

Ben Graham's Revised Formula: Value = [EPS x (8.5 + 2G) x 4.4] / Y

Here, 4.4 is what Graham determined to be his minimum required rate of return. At the time of around 1962 when Graham was

Note: I have used Graham's original formula in the above calculations

m Formula (High Range)
GILLETTE INDIA LTD
Jun/18

181.2
8.5
21.3

9,264
21,251

g is the growth rate for the next 7-10 years

e of around 1962 when Graham was publicizing his works, the risk free interest rate was 4.4% but to adjust to the present, we divide this nu
e present, we divide this number by today’s AAA corporate bond rate, represented by Y in the formula above.
 Dicounted Cash Flow Valuation
GILLETTE INDIA LTD

Initial Cash Flow (Rs Cr) (979) ###

21,251
Years 1-5 6-10 -105%
FCF Growth Rate 15% 12%
Discount Rate 12%
Terminal Growth Rate 2%

Net Debt Level (Rs Cr) (5,829)

Year FCF Growth Present Value

1 (1,125) 15% (1,005)
2 (1,294) 15% (1,032)
3 (1,488) 15% (1,059)
4 (1,711) 15% (1,088)
5 (1,968) 15% (1,117)
6 (2,204) 12% (1,117)
7 (2,469) 12% (1,117)
8 (2,765) 12% (1,117)
9 (3,097) 12% (1,117)
10 (3,469) 12% (1,117)

Final Calculations
Terminal Year (3,538)
PV of Year 1-10 Cash Flows ###
Terminal Value ###
Total PV of Cash Flows ###
Current Market Cap (Rs Cr) 21,251

Note: See explanation of DCF here

Valuation
D

DCF Value (As calculated in cell B29)

Current Market Cap
DCF as % of Current Mkt Cap
 Expected Returns Model
GILLETTE INDIA LTD
Particulars Jun/09 Jun/10 Jun/11 Jun/12 Jun/13 Jun/14 Jun/15
Net Profit (Rs Crore) 113 137 86 76 87 51 158
Net Profit Margin 17% 16% 8% 6% 6% 3% 8%
Return on Equity 23% 24% 14% 12% 13% 8% 21%

Calculations (Enter values only in black cells)

Estimated CAGR in Net Profit over next 10 years 12%
Estimated Net Profit after 10 years (Rs Cr) 711
Current P/E (x) 92.8
Exit P/E in the 10th year from now (x, Estimated) 20.0
Esti. Market Cap (10th year from now; Rs Cr) 14,228
Cost of Capital/Discount Rate 12%
Discounted Value (Rs Cr) 4,581
Current Market Cap (Rs Cr) 21,251

Note: See explanation of this model here

el
Jun/16 Jun/17 Jun/18 CAGR (9-Yr) CAGR (5-Yr)
214 253 229 8% 21%
12% 15% 14%
23% 51% 33%
 Intrinsic Value Range
GILLETTE INDIA LTD
Lower Higher Remember! Give importance to a stock's valuations / fair v
Dhandho -11,510 ### only "after" you have answered in "Yes" to these two quest
Ben Graham 5,402 9,264 (1) Is this business simple to be understood? and (2) Ca
DCF -22,276 understand this business?
Expected Return 4,581
Don't try to quantify everything. In stock research, the less
Current Market Cap. 21,251 mathematical you are, the more simple, sensible, and usefu
be your analysis and results. Great analysis is generally "b
of-the-envelope".
Explanation: Considering the above
range, we can say that Hero Moto's IV Also, your calculated "fair value" will be proven wrong in
range is between Rs 55,000 crore to Rs future, so don't invest your savings just because you fall in
95,000 crore. It's a big range, but that's with it. Don't look for perfection. It is overrated. Focus o
fine (who is looking for precision?). Now, decisions, not outcomes. Look for disconfirming eviden
if the current market cap is within this IV
range, it makes the stock
reasonably/attractively priced. If the
current market cap is higher then the
higher value of the range, it makes it
overpriced. But remember, these are just
numbers!
 importance to a stock's valuations / fair value
ave answered in "Yes" to these two questions -
ness simple to be understood? and (2) Can I
understand this business?

fy everything. In stock research, the less non-

are, the more simple, sensible, and useful will
and results. Great analysis is generally "back-
of-the-envelope".

lated "fair value" will be proven wrong in the

vest your savings just because you fall in love
ook for perfection. It is overrated. Focus on
outcomes. Look for disconfirming evidence.
GILLETTE INDIA LTD
SCREENER.IN
Narration Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18
Sales 412 389 525 408 408 408 452 410 457 476
% Growth YOY -1% 5% -14% 1% 12% 17%
Expenses 331 315 365 340 302 310 333 350 350 378
Operating Profit 80 74 160 67 106 98 118 60 107 98
Other Income 9 16 8 5 1 2 1 9 4 4
Depreciation 8 9 8 14 9 10 11 12 11 12
Interest 1 1 2 3 1 1 1 4 1 2
Profit before tax 81 80 158 56 97 89 107 52 98 89
PBT Margin 20% 21% 30% 14% 24% 22% 24% 13% 22% 19%
% Growth YOY 20% 11% -32% -6% 2% 0%
Tax 26 25 52 18 32 30 36 18 33 35
Net profit 55 55 106 38 64 59 71 35 65 54
% Growth YOY 17% 7% -33% -8% 2% -8%
OPM 20% 19% 30% 16% 26% 24% 26% 15% 23% 21%
COMPANY NAME GILLETTE INDIA LTD
LATEST VERSION 2.10 PLEASE DO NOT MAKE ANY CHA
CURRENT VERSION 2.10

META
Number of shares 3.26
Face Value 10
Current Price 6520.6
Market Capitalization 21250.64

PROFIT & LOSS

Report Date Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14
Sales 661.52 852.48 1058.38 1232.9 1437.72 1664.63
Raw Material Cost 254.55 338.72 463.34 572.82 690.42 811.31
Change in Inventory -4.25 18.72 31.41 24.2 21.64 4.03
Power and Fuel 5 7.17 6.08 6.95 8.36 11.28
Other Mfr. Exp 11.65 19.76 31.27 49.4 53.38 40.43
Employee Cost 44.51 50.12 63.29 77.15 78.65 95.13
Selling and admin 172.89 245.19 389.01 401.63 456.36 612.44
Other Expenses 16.98 4.75 13.97 41.22 38.24 24.97
Other Income 36.72 19.81 30.96 32.94 35.64 37.75
Depreciation 11.37 12.5 19.81 23.89 31.32 32.98
Interest 0.03 0.04 0.01 0.01 0.02 0.36
Profit before tax 177.01 212.76 133.97 116.97 138.25 77.51
Tax 63.88 75.67 47.82 41.24 51.09 26.09
Net profit 113.13 137.09 86.15 75.73 87.16 51.42
Dividend Amount 40.74 48.88 48.88 48.88 48.88 48.88

Quarters
Report Date Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17
Sales 411.73 389.38 524.89 407.6 408.03 407.52
Expenses 331.29 314.97 365.37 340.38 302.13 309.62
Other Income 8.88 15.6 8.44 4.9 1.12 2
Depreciation 7.54 8.92 8.38 13.51 9.18 9.93
Interest 1.08 0.93 2.05 2.68 1.11 1.39
Profit before tax 80.7 80.16 157.53 55.93 96.73 88.58
Tax 25.86 25.41 51.71 18.26 32.39 29.81
Net profit 54.84 54.75 105.82 37.67 64.34 58.77
Operating Profit 80.44 74.41 159.52 67.22 105.9 97.9

BALANCE SHEET
Report Date Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14
Equity Share Capital 32.59 32.59 32.59 32.59 32.59 32.59
Reserves 458.3 538.4 567.75 586.67 616.64 610.87
Borrowings
Other Liabilities 162.43 268.77 239.77 431.15 396.84 419.67
Total 653.32 839.76 840.11 1050.41 1046.07 1063.13
Net Block 89.11 120.64 124.79 151.46 170.21 172.63
Capital Work in Progress 2.43 2.63 34.17 37.92 29.78 60.84
Investments
Other Assets 561.78 716.49 681.15 861.03 846.08 829.66
Total 653.32 839.76 840.11 1050.41 1046.07 1063.13
Receivables 60.57 78.4 62.23 68.67 92.7 92.26
Inventory 100.96 141.37 193.84 210.88 239.73 230.55
Cash & Bank 92.62 205.76 73.15 116.71 166.82 169.61
No. of Equity Shares 32585217 32585217 32585217 32585217 32585217 32585217
New Bonus Shares
Face value 10 10 10 10 10 10

CASH FLOW:
Report Date Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14
Cash from Operating Activity 72.23 160.95 -24.65 141.01 29.4 96.3
Cash from Investing Activity -8.31 -0.12 -51.51 -41.7 78.31 -36.12
Cash from Financing Activity -47.68 -47.7 -57.01 -56.82 -56.82 -57.21
Net Cash Flow 16.24 113.13 -133.17 42.49 50.89 2.97

PRICE: 828.291304 1791.8457 2185.2045 2341.1786 2261.4273 2215.1795

DERIVED:
Adjusted Equity Shares in Cr 3.26 3.26 3.26 3.26 3.26 3.26
DO NOT MAKE ANY CHANGES TO THIS SHEET

Jun-15 Jun-16 Jun-17 Jun-18

1874.71 1755.19 1733.6 1676.85
815.98 890.85 806.44 672.28
-29.63 36.66 20.4 -20.86
11.82 12.12 14.06 14.73
47.62 55.72 61.44 58.68
113.71 106.25 109.72 117.91
612.76 373.22 338.05 359.08
52.48 47.47 39.04 46.48
67.87 50.07 34.16 7.52
38.88 30.27 38.35 42.29
4.65 5.55 6.74 7.46
215.05 320.47 374.32 344.6
56.92 106.29 121.24 115.55
158.13 214.18 253.08 229.05
48.88 128.8 534.48 74.96

Mar-18 Jun-18 Sep-18 Dec-18

451.54 409.76 456.51 475.66
333.47 350.03 349.66 377.66
1.06 8.57 3.8 4.05
11.45 11.73 11.34 11.63
0.84 4.12 0.9 1.74
106.84 52.45 98.41 88.68
35.52 17.83 33.06 34.69
71.32 34.62 65.35 53.99
118.07 59.73 106.85 98

Jun-15 Jun-16 Jun-17 Jun-18

 32.59 32.59 32.59 32.59
709.75 904.03 468.02 661.59

474.83 493.39 502.73 519.59

1217.17 1430.01 1003.34 1213.77
156.17 178.1 214.09 264.41
63.14 88.21 63.34 40.37

997.86 1163.7 725.91 908.99

1217.17 1430.01 1003.34 1213.77
116.76 109.76 130.27 176.04
201.57 244.55 222.38 200.15
181.25 537.17 115.65 236.63
32585217 32585217 32585217 32585217

10 10 10 10

Jun-15 Jun-16 Jun-17 Jun-18

171.93 279.42 247.97 237.12
-102.56 155.04 13.69 -76.76
-57.73 -78.56 -684.1 -39.23
11.64 355.9 -422.44 121.13

4810.3217 4711.3381 5137.67143 6563.96905

3.26 3.26 3.26 3.26

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