Sundaram Paints is a large privately held decorative paints company which has been in existence for...
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Sundaram Paints is a large privately held decorative paints company which has been in existence for nearly three decades. Founded by Shankar Sundaram, it is presently managed by Ravi Sundaram, the only son of founder. Ravi wants to expand the business and take it global. For that firm needs access to the capital market. So, Ravi has engaged the service of ICICI securities, a merchant banking firm. Praveen Chopra, the CEO of the ICICI Securities, has entrusted you with the task of doing preliminary valuation of Sundaram Paints Pvt. Ltd. You have collected relevant financial details of the company and three largest listed companies of the same industry. Financial Information (in Rs. Million) Revenue EBITDA NI Shareholder's Fund Loan Funds Total Assets NPM Debt Equity Ratio Paid up equity Capital (par value is Rs. 10 in all cases) Expected EPS Growth (5 years) Market Price Per Share Beta Kansai Nerolac Paints Ltd. Financial Information (in Rs. Million) EV/EBITDA 19600 2840 1588 8750 5060 13810 8.1% 57.8% 2400 14% 96.8 1.10 Berger Paints India Ltd. Kansai Nerolac Paints Ltd. 15400 2520 1098 7540 5150 12690 7.1% 68.3% 2000 12% Question1: What is the EV/EBITDA of all three competitors? Berger Paints India Ltd. 68.4 1.20 Shalimar Paints Ltd. 12750 1675 791 6260 4500 10760 6.2% 71.9% 1800 10.2% 43.2 1.28 Sundaram Paints 10800 1890 886 4820 2880 7700 8.2% 59.8% 1440 15% Shalimar Paints Ltd. Sundaram Paints is a large privately held decorative paints company which has been in existence for nearly three decades. Founded by Shankar Sundaram, it is presently managed by Ravi Sundaram, the only son of founder. Ravi wants to expand the business and take it global. For that firm needs access to the capital market. So, Ravi has engaged the service of ICICI securities, a merchant banking firm. Praveen Chopra, the CEO of the ICICI Securities, has entrusted you with the task of doing preliminary valuation of Sundaram Paints Pvt. Ltd. You have collected relevant financial details of the company and three largest listed companies of the same industry. Financial Information (in Rs. Million) Revenue EBITDA NI Shareholder's Fund Loan Funds Total Assets NPM Debt Equity Ratio Paid up equity Capital (par value is Rs. 10 in all cases) Expected EPS Growth (5 years) Market Price Per Share Beta Kansai Nerolac Paints Ltd. Financial Information (in Rs. Million) EV/EBITDA 19600 2840 1588 8750 5060 13810 8.1% 57.8% 2400 14% 96.8 1.10 Berger Paints India Ltd. Kansai Nerolac Paints Ltd. 15400 2520 1098 7540 5150 12690 7.1% 68.3% 2000 12% Question1: What is the EV/EBITDA of all three competitors? Berger Paints India Ltd. 68.4 1.20 Shalimar Paints Ltd. 12750 1675 791 6260 4500 10760 6.2% 71.9% 1800 10.2% 43.2 1.28 Sundaram Paints 10800 1890 886 4820 2880 7700 8.2% 59.8% 1440 15% Shalimar Paints Ltd.
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1 EVEBITDA Enterprise Value to Earnings Before Interest Taxes Depreciation and Amortization Ratio Berger Paints India Ltd has an EVEBITDA ratio of 374... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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