Financial Modeling and Valuation of Praj Industries:
In this course, we will first understand about the company’s different business lines. Post which we will understand different factors, which can affect the revenue of the company in the long run. As Praj is involved into the ethanol segment so we will understand how ethanol is made and then we will project the demand of petrol. This will help us to project the demand of ethanol and expected order flows into the country. Once we will understand the ethanol projections, we will start creating assumption sheet, wherein we will project order flows for ethanol, brewery and emerging segment for the company over the period of next 2 years. Further, we will project revenues for each segment based on book to bill and execution ratio of the company. Thereafter, we will start projecting the operating margins through top down approach and will go through the conference transcript of the company to understand the expectation of management for OPM over the period of next 2 years. We will also create Asset schedule and debt schedule to project depreciation and interest cost. Once we will complete the projection of depreciation and interest cost, we will finally project other income. Other income will be calculated based on Cash yield. Post completing the projection of income statement, we will project working capital and complete the projection for balance sheet and thereby cash flow statement. At last, we will project the target value of the stock through forward P/E, for which we will understand how to create 1 year and 2 year forward P/E chart.
We have used company’s result press releases and investor presentation to find out relevant data, hence this can assure the reliability of any past data and future projections.
Course Objective:
- To understand the valuation process of any company from Economy, Industry to Company (EIC framework)
- To understand the valuation technique like forward P/E to project the equity value per share
Target Audience:
- Students who are pursuing CFA, MBA (finance), CA
- Professionals in the field of investment banking/equity research
Pre- requisites:
- Basic Accounting and MS Excel Knowledge
- Passion to learn
For any query call/miss call-
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Section 1: Introduction
1 Introduction to Praj Industries Ltd
2 How Company Makes Ethanol
3 Ethanol Industry Overview
4 Ethanol Segment
5 Learn Emerging Market
Section 2 Financial Statement Analysis
6 Punching Qtrly Consol Income Statement (IS)
7 Management Highlights
8 Quarterly Income Statement Analysis
9 Key Developments
10 Punching Quarterly Standalone Income Statement
11 Punching Quarterly Standalone Income Statement Continues
12 Linkages of Console Yearly Income
13 More on Console Yearly Income Statement
14 Calculating Total Revenue
15 Punching Consolidated Balance Sheet items
16 Punching Consolidated Balance Sheet items Continues
17 Punching Consolidated Cash Flow Items
18 Projecting Actual FY16 Cash Flow without Annual Report
Section 3 Ethanol Demand and Order Flows Projections
19 Projections of Petrol Demand in India
20 Petroleum Planning and Analysis Cell
21 Projections of Ethanol Demand
22 Incremental Order Flows for EPC Players
23 Sensitivity Analysis for Overall Order Flows
Section 4 Brewery and Emerging Market Order Flows Projections
24 Projection of Brewery Order Flows
25 Console Assumption Sheet
26 Projection of Emerging Market Order Flows
Section 5 Projection of Revenues
27 Projections of Revenues
28 More on Projections of Revenues
29 Projection of Operating Cost
30 Projection of Operating Cost Continues
31 Operating Margins
32 Linking Operating Margins
33 How to Calculate Forex Gain or Loss
34 How to Calculate Forex Gain or Loss Continues
35 Projection of Other Income
36 Projection of Depreciation
37 Projection of Amortization
38 Projection of Finance Cost
39 Projection other Income Statement Items
Section 6 Projection of Balance Sheet
40 Projection of Balance Sheet Items
41 Projection of Balance Sheet Items Continues
42 Calculating Trade Payable
Section 7 Projection of Cash Flows
43 Projection of Cash Flow Statement
44 Projection of Cash Flow Statement Continues
Section 8 Projections of Equity Value Per Share
45 How to Draw 1 Year Rolling PE Chart
46 How to Draw 1 Year Rolling PE Chart Continues
47 How to Draw 2 year Rolling PE Chart
Section 9 Preparing Summary Sheet
48 Preparation of Summary Sheet
49 Preparation of Summary Sheet Continue
Section 10 Practice File
50 Equity Research of Capital Goods Industry
