QI. Kindly carry out DCF valuation of Butterfly Gandhimathi Appliances.

Refer to the financial statemem data for the past five years given below.

a) Calculate the delta capital expenditures for Butterfly Gandhimathi Appliances

b) Calculate the absolute and delta net working capital for Butterfly Gandhimathi Appliance.

c) Calculate the free cash flow to the firm (Assume the Risk free rate to be 7.14% and market-risk premium to be 6.85% and assume the current value of the debt of Butterfly Gandhimathi Appliances to be 159.17 crores)

d) Calculate the enterprise value of Butterfly Gandhimathi Appliances(Assuming stable phase growth phase

rate to be 5%)

e) Given that market cap of Butterfly Gandhimathi is 1340 crores and the 52 week high-low (in the current

year) to be (200 - 925) Rs and a current market price of Rs 749.85 comment based on your Valuation

approach on whether Butterfly Gandhimathi is undervalued or overvalued.Also justify the choice of the

model.

2017 Particulars 2021 2016 2019 2018 2020 901 870 679 541 Net Revenue 405 652 Materials consumed 355 311 317 219 149 Operating and Direct Expenses 0 0 0 0 0 Depreciation and Amortization Expenses 16 14 13 12 12 Employee benefit expenses 77 79 70 57 50 Other Expenses 207 169 146 133 127 Tax Expenses 17.37 24.13 22.45 18.09 23.46 Excise/Servic Tax Other Levie 0 0 8.75 45.01 PBT 48.35 4.13 12.19 5.83 -52.16 Exhibit 2 2021 2020 2019 2018 2017 2016 Tangible Assets 131 133 128 124 122 121 Cash and Cash equivalents 37.36 4.49 9.83 22.60 31.41 Intangible Assets 33 36 39 41 45 48 Capital WIP 2 2 7 .2 4 3 Trade Receivables 74 117 117 131 88 74 Inventories 178 170 142 125 109 178 Trade payables -108 -99 -56 60 -164 Contingent Liabilities 28.85 23.45 24.54 23.95 42.30 Extraordinary Income 10 91 12 0 2017 Particulars 2021 2016 2019 2018 2020 901 870 679 541 Net Revenue 405 652 Materials consumed 355 311 317 219 149 Operating and Direct Expenses 0 0 0 0 0 Depreciation and Amortization Expenses 16 14 13 12 12 Employee benefit expenses 77 79 70 57 50 Other Expenses 207 169 146 133 127 Tax Expenses 17.37 24.13 22.45 18.09 23.46 Excise/Servic Tax Other Levie 0 0 8.75 45.01 PBT 48.35 4.13 12.19 5.83 -52.16 Exhibit 2 2021 2020 2019 2018 2017 2016 Tangible Assets 131 133 128 124 122 121 Cash and Cash equivalents 37.36 4.49 9.83 22.60 31.41 Intangible Assets 33 36 39 41 45 48 Capital WIP 2 2 7 .2 4 3 Trade Receivables 74 117 117 131 88 74 Inventories 178 170 142 125 109 178 Trade payables -108 -99 -56 60 -164 Contingent Liabilities 28.85 23.45 24.54 23.95 42.30 Extraordinary Income 10 91 12 0