1

2
3
4
5
6
7
8
9
10
11
12
Raymond

CONTENTS OF THIS WORKBOOK

Segments
Reformulated Income statement
Reformulated Balance Sheet
Modified Du-pont analysis
Cost of Capital
EVA
RIV
Income Statement Projections
Balance Sheet Projections
Earnings Volitality Analysis
Off Balance Sheet Transactions
Cash Flow Statements and their Analysis
Particulars Textile Denim & Shirting
2016 2015 2014 2013 2016 2015 2014
Segment Revenue

External Revenue 249738.68 239841.96 187803.26 180236.19 87183.55 84470.12 73173.16

Inter-Segment Revenue 16718.34 14613.61 14061.02 7476.36 3651.00 2952.31 1857.69

Total Revenue 266457.02 254455.57 201864.28 187712.55 90834.55 87422.43 75030.85

Segment Assets 182843.24 169680.87 162328.72 161186.22 76259.80 60638.10 53581.07

Unallocated assets

Total Assets 182843.24 169680.87 76259.80 60638.10

162328.72 161186.22 53581.07
& Shirting Apparel Garmenting Tools & Hardware
2013 2016 2015 2014 2013 2016 2015 2014 2013 2016

55862.25 119338.48 100991.55 89709.81 82926.67 47634.40 41947.70 35934.10 26441.17 37172.67

1501.34 22.63 71.61 1.21 24.78 11717.91 11351.16 5975.26 4968.19 6.99

57363.59 119361.11 101063.16 89711.02 82951.45 59352.31 53298.86 41909.36 31409.36 37179.66

37580.35 61733.75 54466.27 48074.13 51657.70 37712.73 30785.54 31936.28 26168.09 23226.43

61733.75 54466.27 37712.73 30785.54 23226.43

37580.35 48074.13 51657.70 31936.28 26168.09
Tools & Hardware Auto Components Others
2015 2014 2013 2016 2015 2014 2013 2016 2015 2014

42045.93 43019.08 38504.49 17999.69 23397.24 24240.40 22463.77 401.66 567.16 917.92

18.21 13.30 40.93 - 0.66 24.93 27.26 - - 1.73

42064.14 43032.38 38545.42 17999.69 23397.90 24265.33 22491.03 401.66 567.16 919.65

23886.74 20262.70 20787.22 15922.72 24663.36 25166.78 22955.26 5710.94 4673.65 5427.87

23886.74 15922.72 24663.36 5710.94 4673.65

20262.70 20787.22 25166.78 22955.26 5427.87
hers Elimination Total
2013 2016 2015 2014 2013 2016 2015 2014 2013

481.61 - - -- 559469.13 533261.66 454797.73 406916.15

67.16 (32116.87) -29007.57 (21935.14) (14106.02) - - - -

548.77 (32116.87) (29007.57) (21935.14) (14106.02) 559469.13 533261.66 454797.73 406916.15

6806.42 (8897.26) (8549.38) (6958.91) (6211.53) 394512.36 360245.16 339818.64 320929.73

112363.53 106559.64 104416.68 97370.87

(8897.26) (8549.38) 506875.89 466804.80 444235.32 418300.60

6806.42 (6958.91) (6211.53)
 CASH FLOW STATEMENTS - RAYMOND LTD.

Year Ended
31st March, 2013

A. Cash Flow arising from Operating Activities:

Profit/(Loss) before Exceptional Items and tax as

per Statement of Profit and Loss -682.23
Add/(Deduct):
Bad Debts, Advances, Claims and deposits
written off (Net) 80.79
Provision no longer required -1251.96
Unrealsied exchange difference
Provision for doubtful debts -
Provision for Diminution in value of current
investments 23.78
Depreciation and Amortisation expense 11602.19
Finance costs 15610.62
Surplus on disposal of Assets ( Net) -63.62
Gain on conversion of Preference Shares /
Debenture of subsidiaries to equity
Interest Income -3026.84
Dividend Income -712.99
Surplus on sale of Investments (Net) -1940.05
Operating Cash Profit before Working Capital
Changes 19639.69
Add/(Deduct):
Increase in Trade and other Payable 8962.52
(Increase) in Trade and Other Receivables -5220.88
Increase/(decrease) in provisions
(Increase) in Inventories -5373.31
Cash Flow from Operations 18008.02
Add :
Direct Taxes (Net) -878.1

Net Cash Inflow in the course of Operating Activities 17129.92

Deduct: Exceptional Items [Net] -3175.05
Net Cash Inflow in the course of Operating
Activities after Exceptional Items 13954.87

B. Cash Flow arising from Investing Activities:

Inflow:
Sale of fixed assets 681.5
Interest received 3026.84
Dividence received 712.99
Dividence received from Subsidiairies -
 Fixed deposit with banks
Sale of long term Investments 114.3
Sale of Current Investments (Net) 2857
Proceeds from divestment of suit unit -
Outflow:
Acquistion of Fixed Assets 9494.72
Investment in Subsidiaries 15.3
Purchase of Non-current investments 1009.59
Purchase of Current investments (Net) -
Net Cash (Outflow) in the course of Investing
Activities -3126.98

C. Cash Flow arising from Financing Activities:

Inflow:

Proceeds from Long Term Loans/ Debentures 28119.93

Proceeds from other borrowings (Net) 6528.54
Capital Subsidy Received -
Outflow:
Repayment of Long Term Loans 29533.3
Repayment of Short Term Loans -
Finance Charges (Net) 13629.02
Dividend Paid 1534.52
Dividend Distribution Tax 248.94
Net Cash (Outflow) in the course of Financing
Activities -10297.31

Net Increase/(Decrease) in Cash/Cash Equivalents

(A+B+C) 530.58
Add: Balance at the beginning of the year 1192.08
Add: Cash and Cash Equivalents acquired on
account of demerger 8.76
Less: Cash and Cash Equivalents acquired on
account of divestment of suit unit -

Cash and Cash Equivalents at the close of the year 1731.42

 Year Ended Year Ended Year Ended
31st March, 2014 31st March, 2015 31st March, 2016

6461.09 11158.35 12820.81

4.36 3.09 2.87

-449.88 -1140.46 -1029.44

- 50 11.49

458.81 39.01 45.18

11450.21 9349.33 8746.52
15341.72 14826.32 13623.16
-8.82 3.02 0.2

-3010.27 -4226.98 -5839.75

-93.55 -2882.34 -211.84
-3079.16 -1603.76 -567.77

27074.51 25575.58 27601.43

-11921.08 13613.87 11372.57

-6739.02 -19357.98 -6382.22

-5120.77 -2480.1 -8023.45

3293.64 17351.37 24568.33

-1997.13 -2179.07 -2723.98

1296.51 15172.3 21844.35

- -194.35 -

1296.51 14977.95 21844.35

546.75 212.16 375.74

3514.94 3747.58 4430.58
93.55 592.44 6.04
- 643.5 1852.2
 1682.26 15.09 -
3739.25 9700.35 -
505 -

4600.42 5118.43 8886.68

505 2000 6168
- - 3837.52
450 - 2049.52

4526.33 7792.69 -14277.16

45512 7500 31625

- 3196.49 5977.08
- - -

34394.24 17576.38 29506.38

579.46 - -
15312.67 15153.61 14253.24
631.33 1234.06 1841.43
99.58 87.53 -

-5505.28 -23355.09 -7998.97

317.56 -584.45 -431.78

1731.52 2039.68 1455.23

- -

-9.4 -

2039.68 1455.23 1023.45

 2016 2015
Operating Revenues 559469.13 533261.66
Cost of materials consumed 128463.06 135844.73
Gross Margin 431006.07 397416.93
Operating Expenses
Purchase of stock-in-trade 120652.34 107093.96
Manufacturing and Operating Costs 84437.53 84586.07
Changes in Inventories of finished goods,work-in-progress and
Stock-in-Trade -10230.06 -9484.63
Employee Benefits Expense 72507.73 66270.79
Depreciation and Amortization Expense 16425.46 16187.8
Other Expenses 119874.07 106269.99
Operating income from sales (before tax) 27339 26492.95
Taxes
Taxes as reported 7212.83 4388.13
Less Tax Benefit on Financial Expenses 1391.229 968.079
Less Tax on Other Operating income 579.593 459.207
Net Taxes 5242.008 2960.844
Operating income from sales (after tax) 22096.992 23532.106
Other operating income (before tax items) 1655.98 1312.02
Less Tax on Other Operating income 579.593 459.207
Applicable net loss on currency fluctuations and translations 139.28 219.64
Extraordinary Items -3494 2.92
Operating income (after tax) 19818.659 24607.479
Financing income (expense)
Interest Income 3974.94 2765.94
Dividend income 7.65 632.14
Other income 5051.99 4807.71
Interest Expense 16818.32 18328.13
Other borrowing costs 131.9 104.6
Net financing income -7915.64 -10226.94
Tax effect (at 35%) -2770.474 -3579.429
Net financing income after tax -5145.166 -6647.511
Minority Interest 6294.67 7252.56
Comprehensive income 8378.823 10707.408
 2014 2013 2012
454797.73 406916.15 364241.06
134257.39 125234.59 115256.62
320540.34 281681.56 248984.44

56628.86 37366.94 32834.45

82923.28 76580.77 64918.28

-11133.07 -4523.82 -14743.02

55415.17 52798.45 16505.26
19578.96 18904.43 16583.72
88708.35 82319.31 73076.87
28418.79 18235.48 59808.88

2975.75 2494.86 6138.07

415.0335 398.7305 327.355
288.582 602.098 503.6395
2272.1345 1494.0315 5307.0755
26146.6555 16741.4485 54501.8045
824.52 1720.28 1438.97
288.582 602.098 503.6395
590.8 182.41 313.45
-3539.26 -2896.49 0
23734.1335 15145.5505 55750.585

1185.81 1139.23 935.3

186.27 782.41 1544.39
5068.46 3744.95 4246.94
17337.31 17127.1 14059.83
313.86 87.43 211.52
-11210.63 -11547.94 -7544.72
-3923.7205 -4041.779 -2640.652
-7286.9095 -7506.161 -4904.068
7054.63 1234.92 1409.27
9392.594 6404.4695 49437.247
 2016 2015 2014
Operating Assets
Inventories 126603.2 115776.3 109251.6
Other Current Assets 13876.19 8198.01 6947.47
Deferred tax assets (net) 1992.31 1816.15 3111.5
Total OA 142471.7 125790.4 119310.6
Operating Liabilites
Other Current Liabilities 60016.48 53275.05 43455.4
Short Term Provisions 5637.2 7537.17 7600.78
Deferred tax Liabilities (Net) 5742.23 2404.18 1986.24
Total OL 71395.91 63216.4 53042.42

NOA 71075.81 62574.03 66268.16

Financial Assets
Fixed assets
(i) Tangible assets 129487.6 126995.8 124868.9
(ii) Intangible assets 1160.43 442.41 767.36
(ii) Capital work-in-progress 24998.35 19581.5 17396.79
Non-current investments 14567.85 10901.5 11056.98
Long term loans and advances 28936.63 27129.73 24824.56
Current Investments 35669.49 31795 40411.05
Trade Receivables 104748.4 92388.71 84990.68
Cash and Bank Balance 9244.84 12925.34 8098.27
Short Term Loans and Advances 9537.81 9649.14 10068.25
Total FA 358351.4 331809.2 322482.8

Financial Obligations
Long- term borrowings 101611.4 95030.35 111782.6
Other Long Term Liabilities 16046.94 14894.87 11893.2
Short term borrowings 72659.39 62050.26 54553.05
Trade Payables 75731.61 70224.17 59297.05
Total FO 266049.3 242199.7 237525.9

NFA 92302.09 89609.52 84956.93

 2013 2012

94768.36 91706.25
6114.99 5644.25
1952.21 2359.96
102835.56 99710.46

69042.19 49021.94
6154.57 8989.57
1890.4 2158.16
77087.16 60169.67

25748.4 39540.79

129449.22 133449.1
1221.61 1367.61
17431.94 12603.38
11136.49 9620.96
24355.8 21894.59
41271.35 41218.33
73844.47 63523.53
3809 3392.09
9914.32 10852.71
312434.2 297922.3

81651.99 88393.1
11176.08 18335.59
56796.8 54257.12
52464.18 41737.8
202089.05 202723.6

110345.15 95198.67
 YEARS 2016 2015 2014
CSE 163136 154136.2 146612.4
Average CSE 158636.1 150374.3 142250.9
Comprehensive Income (CI) 8378.823 10707.41 9392.594
Return on Common Shareholder's Equity (ROCE) = CI/Avg. CSE 0.0528 0.0712 0.0660

Operating Income (OI) After Tax 19818.66 24607.48 23734.13

Net Operating Assets (NOA) 71075.81 62574.03 66268.16
Average NOA 66824.92 64421.1 46008.28
Return on Net Operating assets (RNOA)= OI/Avg. NOA 0.2966 0.3820 0.5159

Negative Financial Leverage (NFA) 92302.09 89609.52 84956.93

Negative Financial Leverage =NFA/CSE 0.565798 0.581366 0.579466
Net Financial Income (NFI) after tax -5145.17 -6647.51 -7286.91
NFA 92302.09 89609.52 84956.93
Average NFA 90955.81 87283.23 97651.04
Return on Net Financial assets (RNFA)=NFI/Avg. NFA -0.0566 -0.0762 -0.0746

Return on Common Shareholder's Equity (ROCE) = CI/ Avg.CSE 0.0528 0.0712 0.0660
ROE = RNOA-(NFA/CSE)(RNOA-RNFA) 0.0968 0.1156 0.1737

OLLEV= OL/NOA 1.0045 1.0103 0.8004

OI 19818.66 24607.48 23734.13
Short term borrowing rate @ 9.14% [A1+ rated borrowings]
Implicit cost of OL = OL x Implicit rate 6525.586 5777.979 4848.077
ROOA= (OI+ Implicit interest rate after tax)/OA 0.1849 0.2416 0.2396
RNOA = ROOA+ OLLEV (ROOA-STBR) 0.2788 0.3933 0.3582
 2013 2012
137889.5 136234.4
137061.9
6404.47 49437.25
0.0467

15145.55 55750.59
25748.4 39540.79
32644.6
0.4640

110345.2 95198.67
0.800243 0.698786
-7506.16 -4904.07
110345.2 95198.67
102771.9
-0.0730

0.0467
0.0342

2.9939 1.5217
15145.55 55750.59

7045.766 5499.508
0.2158 0.6143
0.5882 1.4100
 Year Ended Year Ended
31st March, 31st March,
2013 2014
Cash flow from operating activities 13954.87 1296.51
Cash used in investing activities -3126.98 4526.33

Cash used in financing activities -10297.31 -5505.28

Net cash inc/(dec) in cash & cash eq. 530.58 317.56

Net Profit -682.23 6461.09

Net Profit (growth YOY%) 110.559054277
CFO 13954.87 1296.51
CFO (growth YOY%) -976.341100339
CRR (CFO/NI) 0.2006642842

Cash effect of WC changes

(Inc)/Dec in Receivables 8962.52 -11921.08
(Inc)/Dec in Inventory -5220.88 -6739.02
Inc/(Dec) in Payables -5373.31 -5120.77
Net Cash provided/used in WC -1631.67 -23780.87

Free Cash Flow Analysis

CFO 13954.87 1296.51
Depreciation 11602.19 11450.21
Capex 9494.72 4600.42
Ratio of Capex/Dep 0.8183558449 0.4017760373
Dividends 1534.52 631.33
CFO-Dep-Capex -7142.04 -14754.12
CFO-Dep-Div 818.16 -10785.03

Trends in cash flow from investing

CFI -3126.98 4526.33
Purchased of Fixed Assets -9494.72 -4600.42
Sale of Fixed Assets 681.5 546.75
Purchase of Non-current investments -1009.59 -
Purchase of Current investments (Net) - 450
Sale of long term Investments 114.3 1682.26
Sale of Current Investments (Net) 2857 3739.25
Interest Received 3026.84 3514.94
Dividend Received 712.99 93.55
Dividence received from Subsidiairies - -
Investment in Subsidiaries -15.3 -505
Proceeds from divestment of suit unit - 505

Trends in cash flow from financing

Net Cash Used in Financing Activities   -10297.31 -5505.28
Proceeds:
Proceeds from Long Term Loans/ Debentu 28119.93 45512
Proceeds from other borrowings (Net) 6528.54 -
Payments:
Repayment of Long Term Loans -29533.3 -34394.24
Repayment of Short Term Loans - -579.46
Finance Charges (Net) -13629.02 -15312.67

Dividend Paid -1534.52 -631.33

Dividend Distribution Tax -248.94 -99.58
 Year Ended
Year Ended 31st March,
31st March, 2015 2016
14977.95 21844.35
7792.69 -14277.16

-23355.09 -7998.97
-584.45 -431.78

11158.35 12820.81
42.0963672944 12.9668874275
14977.95 21844.35
91.343875497 31.4332996862
1.3423086747 1.7038198055

13613.87 11372.57
-19357.98 -6382.22
-2480.1 -8023.45
-8224.21 -3033.1

14977.95 21844.35
9349.33 8746.52
5118.43 8886.68
0.5474648986 1.016024659
1234.06 1841.43
510.19 4211.15
4394.56 11256.4

7792.69 -14277.16
-5118.43 -8886.68
212.16 375.74
- -3837.52
- 2049.52
15.09 -
9700.35 -
3747.58 4430.58
592.44 6.04
643.5 1852.2
-2000 -6168
- 0

-23355.09 -7998.97
 7500 31625
3196.49 5977.08

-17576.38
-
-15153.61 -14253.24

-1234.06 -1841.43
-87.53 -
 Observations

High dip in 2014. Should analyze.

Sudden increase in cash used in investing activities in 2016.
Huge fluctuations each year. Especially in year 2016 where sudden decrease
observed after 2015.

Decreasing profit every year

Opposite trend of CFO and Net profit in 2014. Alarming!!!

Company has the ability to generate cash from its operating activities

High receivables
Sudden movement of inventory in 2016 but not converted to profits

Reducing working capital not indicative of a healthy company

Increasing quality of earnings

Able to keep company whole

Increasing investment in assets

Very less disposing off assets

Investment in subsidiaries increasing

Why divestment?

Sudden decrease in financing activities in 2016

Re-taking loan in 2016 after realizing low profits
Increased borrowings

Cmpany is paying off long term debts

Even with decreasing profits, the company is paying off increasing dividends
 RAYMOND.BO BSESN
Date
Adj Close Return(Dependent) Adj Close Return (Independent)
12/10/2017 957.65 0.24% 33455.79 0.62%
12/3/2017 955.35 1.21% 33250.3 1.27%
11/26/2017 943.95 -3.37% 32832.94 -2.51%
11/19/2017 976.85 2.76% 33679.24 1.01%
11/12/2017 950.6 0.48% 33342.8 0.08%
11/5/2017 946.1 -2.61% 33314.56 -1.10%
10/29/2017 971.5 7.91% 33685.56 1.59%
10/22/2017 900.3 0.87% 33157.22 2.37%
10/15/2017 892.5 5.28% 32389.96 -0.13%
10/8/2017 847.7 -0.04% 32432.69 1.94%
10/1/2017 848.05 4.23% 31814.22 1.70%
9/24/2017 813.65 -1.63% 31283.72 -2.00%
9/17/2017 827.1 -6.07% 31922.44 -1.09%
9/10/2017 880.55 -0.45% 32272.61 1.85%
9/3/2017 884.5 9.00% 31687.52 -0.64%
8/27/2017 811.5 10.74% 31892.23 0.94%
8/20/2017 732.8 -5.42% 31596.06 0.23%
8/13/2017 774.8 7.69% 31524.68 1.00%
8/6/2017 719.45 -6.45% 31213.59 -3.44%
7/30/2017 769.05 -2.36% 32325.41 0.05%
7/23/2017 787.65 -1.77% 32309.88 0.88%
7/16/2017 801.85 1.07% 32028.89 0.03%
7/9/2017 793.4 -1.81% 32020.75 2.10%
7/2/2017 808.05 11.72% 31360.63 1.42%
6/25/2017 723.25 1.48% 30921.61 -0.70%
6/18/2017 712.7 -3.57% 31138.21 0.26%
6/11/2017 739.1 1.15% 31056.4 -0.66%
6/4/2017 730.7 3.90% 31262.06 -0.04%
5/28/2017 703.25 -2.62% 31273.29 0.79%
5/21/2017 722.1367 0.28% 31028.21 1.85%
5/14/2017 720.0905 -5.62% 30464.92 0.92%
5/7/2017 763.0095 1.02% 30188.15 1.10%
4/30/2017 755.324 1.44% 29858.8 -0.20%
4/23/2017 744.5942 -1.19% 29918.4 1.88%
4/16/2017 753.5274 18.32% 29365.3 -0.33%
4/9/2017 636.8477 -0.86% 29461.45 -0.83%
4/2/2017 642.3871 1.63% 29706.61 0.29%
3/26/2017 632.0567 -2.71% 29620.5 0.68%
3/19/2017 649.6735 1.99% 29421.4 -0.77%
3/12/2017 636.9974 0.33% 29648.99 2.43%
3/5/2017 634.9013 4.29% 28946.23 0.39%
 2/26/2017 608.8006 9.20% 28832.45 -0.21%
2/19/2017 557.4974 11.30% 28892.97 1.49%
2/12/2017 500.9043 -0.98% 28468.75 0.47%
2/5/2017 505.845 0.33% 28334.25 0.33%
1/29/2017 504.1981 0.03% 28240.52 1.28%
1/22/2017 504.0484 -1.92% 27882.46 3.14%
1/15/2017 513.9297 1.04% 27034.5 -0.75%
1/8/2017 508.6397 -0.19% 27238.06 1.79%
1/1/2017 509.5879 3.74% 26759.23 0.50%
12/25/2016 491.2226 3.94% 26626.46 2.25%
12/18/2016 472.6077 -2.57% 26040.7 -1.69%
12/11/2016 485.0842 -2.06% 26489.56 -0.96%
12/4/2016 495.265 0.37% 26747.18 1.97%
11/27/2016 493.4185 -3.37% 26230.66 -0.33%
11/20/2016 510.636 0.73% 26316.34 0.64%
11/13/2016 506.9429 -7.28% 26150.24 -2.49%
11/6/2016 546.7178 -10.90% 26818.82 -1.67%
10/30/2016 613.5916 1.66% 27274.15 -2.39%
10/23/2016 603.5605 -4.85% 27941.51 -0.48%
10/16/2016 634.3025 8.89% 28077.18 1.46%
10/9/2016 582.5002 5.20% 27673.6 -1.38%
10/2/2016 553.7047 4.00% 28061.14 0.70%
9/25/2016 532.3949 -0.40% 27865.96 -2.80%
9/18/2016 534.5408 12.33% 28668.22 0.24%
9/11/2016 475.8516 5.64% 28599.03 -0.69%
9/4/2016 450.4496 4.82% 28797.25 0.93%
8/28/2016 429.7386 6.57% 28532.11 2.70%
8/21/2016 403.2387 -2.21% 27782.25 -1.05%
8/14/2016 412.3715 -2.09% 28077 -0.27%
8/7/2016 421.1549 -7.49% 28152.4 0.26%
7/31/2016 455.2405 -0.59% 28078.35 0.09%
7/24/2016 457.9354 0.25% 28051.86 0.89%
7/17/2016 456.7876 -0.27% 27803.24 -0.12%
7/10/2016 458.0352 -0.16% 27836.5 2.62%
7/3/2016 458.7838 -0.83% 27126.9 -0.07%
6/26/2016 462.6266 3.18% 27144.91 2.83%
6/19/2016 448.3535 -3.36% 26397.71 -0.86%
6/12/2016 463.9241 -1.97% 26625.91 -0.04%
6/5/2016 473.2565 -2.24% 26635.75 -0.77%
5/29/2016 484.0861 8.87% 26843.03 0.71%
5/22/2016 444.6492 -4.78% 26653.6 5.34%
5/15/2016 466.9585 1.02% 25301.9 -0.74%
5/8/2016 462.2487 -0.11% 25489.57 1.03%
5/1/2016 462.7445 10.96% 25228.5 -1.48%
4/24/2016 417.0352 5.26% 25606.62 -0.90%
 4/17/2016 396.2132 -0.14% 25838.14 0.82%
4/10/2016 396.7585 -0.17% 25626.75 3.86%
4/3/2016 397.4526 -0.68% 24673.84 -2.36%
3/27/2016 400.1793 2.70% 25269.64 -0.27%
3/20/2016 389.6691 1.60% 25337.56 1.54%
3/13/2016 383.5217 -2.64% 24952.74 0.95%
3/6/2016 393.9327 -0.39% 24717.99 0.29%
2/28/2016 395.4695 -0.31% 24646.48 6.44%
2/21/2016 396.709 -1.63% 23154.3 -2.34%
2/14/2016 403.3026 11.90% 23709.15 3.15%
2/7/2016 360.4192 -9.44% 22986.12 -6.62%
1/31/2016 397.9979 -2.13% 24616.97 -1.02%
1/24/2016 406.6738 4.47% 24870.69 1.78%
1/17/2016 389.2725 0.83% 24435.66 -0.08%
1/10/2016 386.0501 -4.83% 24455.04 -1.92%
1/3/2016 405.6327 -3.97% 24934.33 -4.53%
12/27/2015 422.3894 -0.73% 26117.54 1.08%
12/20/2015 425.5127 2.70% 25838.71 1.25%
12/13/2015 414.3085 3.93% 25519.22 1.90%
12/6/2015 398.6424 -2.47% 25044.43 -2.32%
11/29/2015 408.756 -0.97% 25638.11 -1.88%
11/22/2015 412.7716 -0.06% 26128.2 1.00%
11/15/2015 413.0195 1.86% 25868.49 1.01%
11/8/2015 405.4839 -0.46% 25610.53 -2.49%
11/1/2015 407.3678 -2.47% 26265.24 -1.47%
10/25/2015 417.6797 -5.74% 26656.83 -2.96%
10/18/2015 443.1123 -1.82% 27470.81 0.94%
10/11/2015 451.342 4.99% 27214.6 0.50%
10/4/2015 429.8754 -0.60% 27079.51 3.27%
9/27/2015 432.4534 12.06% 26220.95 1.38%
9/20/2015 385.9013 -3.95% 25863.5 -1.36%
9/13/2015 401.7657 4.55% 26218.91 2.38%
9/6/2015 384.2653 -0.17% 25610.21 1.62%
8/30/2015 384.9098 -2.34% 25201.9 -4.51%
8/23/2015 394.131 -9.83% 26392.38 -3.56%
8/16/2015 437.1136 -2.93% 27366.07 -2.50%
8/9/2015 450.3008 -1.58% 28067.31 -0.60%
8/2/2015 457.539 -1.67% 28236.39 0.43%
7/26/2015 465.3224 -0.87% 28114.56 0.01%
7/19/2015 469.3877 -3.21% 28112.31 -1.23%
7/12/2015 484.9546 -1.26% 28463.31 2.90%
7/5/2015 491.1517 5.20% 27661.4 -1.54%
6/28/2015 466.8593 2.05% 28092.79 1.01%
6/21/2015 457.4894 -0.30% 27811.84 1.81%
6/14/2015 458.8775 3.62% 27316.17 3.37%
 6/7/2015 442.8644 8.11% 26425.3 -1.28%
5/31/2015 409.6483 -3.81% 26768.49 -3.81%
5/24/2015 425.8521 3.05% 27828.44 -0.46%
5/17/2015 413.2517 -0.94% 27957.5 2.32%
5/10/2015 417.1893 0.34% 27324 0.81%
5/3/2015 415.762 -6.12% 27105.39 0.35%
4/26/2015 442.8822 1.31% 27011.31 -1.55%
4/19/2015 437.1727 -7.44% 27437.94 -3.53%
4/12/2015 472.3158 0.27% 28442.1 -1.51%
4/5/2015 471.0361 5.44% 28879.38 2.19%
3/29/2015 446.7214 3.84% 28260.14 2.92%
3/22/2015 430.1834 -6.95% 27458.64 -2.84%
3/15/2015 462.3241 -5.83% 28261.08 -0.85%
3/8/2015 490.9702 -4.00% 28503.3 -3.21%
3/1/2015 511.4457 4.57% 29448.95 0.78%
2/22/2015 489.0999 -3.68% 29220.12 -0.04%
2/15/2015 507.8035 1.78% 29231.41 0.47%
2/8/2015 498.9439 -0.98% 29094.93 1.31%
2/1/2015 503.8659 0.48% 28717.91 -1.59%
1/25/2015 501.4541 -0.51% 29182.95 -0.33%
1/18/2015 504.0136 -5.21% 29278.84 4.11%
1/11/2015 531.7245 3.00% 28121.89 2.42%
1/4/2015 516.2202 1.57% 27458.38 -1.54%
12/28/2014 508.2465 3.01% 27887.9 2.50%
12/21/2014 493.382 -1.14% 27208.61 -0.60%
12/14/2014 499.0916 -0.62% 27371.84 0.08%
12/7/2014 502.1924 27350.68
 SUMMARY OUTPUT

Regression Statistics
Multiple R 0.3375119942
R Square 0.1139143462
Adjusted R Square 0.1081976646
Standard Error 0.0442894186
Observations 157

ANOVA
df SS MS F Significance F
Regression 1 0.039087183 0.039087183 19.92666 1.540942E-05
Residual 155 0.3040406523 0.0019615526
Total 156 0.3431278354

Coefficients Standard Error t Stat P-value Lower 95%

Intercept 0.0039804151 0.0035450082 1.1228225506 0.263249 -0.003022348
Return 0.8218501831 0.1841091821 4.4639282715 1.54E-05 0.4581632741

Risk Free rate (Rf) = 7.185%

Indian Government 10 yr Bond Generic Bid Yield ( http://www.bloomberg.com/quote/GIND10YR:IND)

Raymond Long Term Credit Rating Default Spread

AA 0.80%
http://www.raymond.in/ir_ii_cr.asp#.WjAJy9-WZ3g

Market Return (Geo. Mean) 11.22% Equity Capital 1673.12 (in Rs. Cr.)
Debt Capital 704.18 (in Rs. Cr.)

Cost of Debt (Pre-tax) = 7.985% Marginal Tax Rate 35.00%

Cost of Equity = 10.505%

WACC (Post Tax) = 8.931%

 If interest coverage ratio is
> ≤ to Rating is Spread is
­100000 0.199999 D2/D 14.00%
0.2 0.649999 C2/C 10.50%
0.65 0.799999 Ca2/CC 8.00%
0.8 1.249999 Caa/CCC 6.50%
1.25 1.499999 B3/B- 5.50%
1.5 1.749999 B2/B 4.50%
1.75 1.999999 B1/B+ 3.75%
2 2.2499999 Ba2/BB 3.00%
2.25 2.49999 Ba1/BB+ 2.50%
2.5 2.999999 Baa2/BBB 1.60%
3 4.249999 A3/A- 1.25%
4.25 5.499999 A2/A 1.10%
5.5 6.499999 A1/A+ 1.00%
6.5 8.499999 Aa2/AA 0.80%
Upper 95%
Lower 95.0%Upper 95.0% 8.50 100000 Aaa/AAA 0.60%
0.010983 -0.00302 0.010983179
1.185537 0.458163 1.185537092

Year Annual
Returns

2004 9.43%
2005 10.80%
2006 10.58%
2007 10.75%
2008 10.19%
2009 11.72%
2010 10.35%
2011 11.22%
2012 12.28%
2013 10.73%
2014 11.48%
2015 9.97%
2016 10.15%
2017 20.49%
 EVA Analysis

Year 2012 2013 2014

PAT 14300.71 1172.71 9485.52

Interest Expense 16505.26 19058.29 19683.32
Tax Rate 35% 35% 35%
NOPAT = PAT + I(1-T) 25029.13 13560.5985 22279.678

Capital
NOA 39540.79 25748.4 66268.16
Capital Charge (8.931%) (3531.23) (2299.48) (5918.14)

EVA = NOPAT - COCE 21497.90 11261.11 16361.54

 2015 2016

11586.55 8977.97 All figures in lacs

20039 18344.76
35% 35%
24611.9 20902.064

62574.03 71075.81
(5588.23) (6347.49) WACC 8.931%

19023.67 14554.58
RIV Model
Projected
Residual Earnings Actual
1
Year 2012 2013 2014 2015 2016 2017
EPS 25.00 4.68 17.53 18.38 15.00 14.6305
DPS 2.46 1.00 2.00 3.00 0.00 2.93
Payout Ratio 9.85% 21.36% 11.40% 16.32% 0.00% 20.00%

BVPS 179.90 168.00 179.30 190.20 201.80 213.50

ROE 3% 10% 10% 8% 7%

RE (10.505% charge) -14.22 -0.12 -0.46 -4.98 -6.57

PVIF 1.11
PV of RE -5.94
Total PV of RE -17.08

CV
PV of CV -37.10

Target Value per share 147.61

Target P/B 0.73
Target P/E 9.84
Projected All figures in lacs
2 3
2018 2019
15.47907 16.37686
3.10 3.28
20.00% 20.00% //Projected dividend rate to be (annual reports) 20.00%

225.89 238.99
7% 7% //ROE = g/(1-payout ratio)
Short term growth rate (annual report 2016) 5.80%
-6.95 -7.35 Cost of Equity Capital 10.505%
1.22 1.35
-5.69 -5.45

-50.07 Long term growth rate 4.90% Taking g as 4.9% for long term
Taking g as 4.9% for long term growth rate
Income Statement : Raymond
Year Ended
Year Ended
Year 31st March,
31st March, 2013 2014
INCOME :
Revenue from Operations 414042.05 459374.43
Less: Excise Duty -7125.9 -4576.7
Other Income 7386.87 7265.06
Total Income 414303.02 462062.79
EXPENSES :
Cost of Materials Consumed 125234.59 134257.39
Purchases of Stock-in-Trade 37366.94 56628.86
Manufacturing and Operating Costs 77604.06 82923.28
Work-in-progress and Stock-in-Trade -4523.82 -11133.07
Employee Benefits Expense 55332.17 55415.17
Other Expenses 78762.3 88708.35
Total Expenses 369776.24 406799.98

Profit/Loss Before Interest, Dep, Exceptional,

ExtraOrdinary Items And Tax 44526.78 55262.81
Exceptional Items -2896.49 -3539.26
Finance Costs (Interest Expense) 19058.29 19683.32
Depreciation and Amortization Expense 18904.43 19578.96
PBT 3667.57 12461.27

TAX EXPENSE
Current Tax 2296.46 3654.01
MAT (credit) / utilised (net) 88.86 -198.5
Deferred tax 139.99 -506.1
Tax in respect of earlier years -30.45 26.34
Total Tax Expense 2494.86 2975.75

PAT 1172.71 9485.52

Less: Profit transferred to Minority Interest 150.62 -264.29
Add: Share in Profit of Associates 1549.62 1541.77
PAT after Minority Interest 2872.95 10763

COGS 244729.41 284942.6

Gross Profit 169573.61 177120.19

Operating Income/sales 0.0478662952 0.0535673677

Growth 11.91%
Sales/Total Assets 0.9898194736 1.0340790327
Growth 4.47%
 Year Ended Year Ended Projected
31st March, 2015 31st March, 2016 2017

537454.24 563247.82 624726.20

-4192.58 -3778.69 -3777.87
9517.81 10690.56 12175.86
542779.47 570159.69 633124.19

135844.73 128463.06
107093.96 120652.34
84586.07 84437.53
-9484.63 -10230.06
66270.79 72507.73
106269.99 119874.07
490580.91 515704.67 563349.69

52198.5600000001 54455.0200000001 69774.51

2.92 -3494
20039 18344.76 21745.45
16187.8 16425.46 17865.58
15974.6800000001 16190.8000000001 30163.47 \\calculated expenses as % of sales

4564.93 6263.59
-2277.08 -2301.95
1968.96 3246.98
131.32 4.21
4388.13 7212.83 12361.22

11586.5500000001 8977.9700000001 17802.25

-677.49 81.01 81.01
372.43 146.39 146.39
11281.4900000001 9205.3700000001 18029.65

337009.39 343782.99 383626.80

205770.08 226376.7 249497.39

0.044160287 0.0268896744 0.0892400296

-17.56% -39.11% 231.87%
1.1513468585 1.1112144632 1.1572108559
11.34% -3.49% 4.14%
 From B|S
Year Ended Year Ended
YEARS 31st March, 2013 31st March, 2014

Long term loans and advances 81651.99 111782.6

Long term liabilities 11515.8 11893.2
Deferred tax liabilities 1890.4 1986.24
Total loans and liabilities 95058.19 125662.04

Finance Costs (Interest Expense) 19058.29 19683.32

Interest Expense/Prior year long term debt 17.50% 20.71%

Tangible Fixed assets 129449.22 124868.89

Depreciation and amortization Expense 18904.43 19578.96
Depreciation as % of prior year tangible assets 14.17% 15.12%

SELECTED RATIOS

Sales Growth 10.95%

Gross profit margin 4.45%
Other income -1.65%
Excise duty -35.77%
total Income 11.53%
Total Expenses/Sales 89.31% 88.56%
Interest Expense/Prior year long term debt 17.50% 20.71%
Income tax expenses/pretax income 68.02% 23.88%
Depreciation Expenses/Gross prior year PP&E 14.17% 15.12%
 Year Ended Year Ended
31st March, 2015 31st March, 2016

95030.35 101611.35
14894.87 16046.94
2404.18 5742.23
112329.4 123400.52

20039 18344.76
15.95% 16.33%

126995.84 129487.59
16187.8 16425.46
12.96% 12.93%

AVERAGES

17.00% 4.80% 10.91%

16.18% 10.01% 10.21%
31.01% 12.32% 13.89%
-8.39% -9.87% -18.01%
17.47% 5.04% 11.35%
91.28% 91.56% 90.18%
15.95% 16.33% 17.62%
27.47% 44.55% 40.98%
12.96% 12.93% 13.80%
B|S : Raymond
Year Ended Year Ended Year Ended
Year 31st March, 31st March, 31st March, 2015
2013 2014

EQUITY AND LIABILITIES

Shareholders’ funds Share Capital 6,138.08 6,138.08 6,138.08
Reserves and Surplus 131,751.39 140,474.29 147,998.11
Minority Interest 1,234.92 7,054.63 7,252.56
Non-Current Liabilities
Long- term borrowings 81,651.99 111,782.60 95,030.35
Deferred tax Liabilities (Net) 1,890.40 1,986.24 2,404.18
Other Long Term Liabilities 11,515.80 11,893.20 14,894.87
Current Liabilities
Short term borrowings 56,796.80 54,553.05 62,050.26
Trade Payables 52,464.15 59,297.05 70,224.17
Other Current Liabilities 67,732.82 43,455.40 53,275.05
Short Term Provisions 7,124.22 7,600.78 7,537.17
TOTAL 418,300.57 444,235.32 466,804.80

ASSETS
Non-Current Assets Fixed assets
(i) Tangible assets 129,449.22 124,868.89 126,995.84
(ii) Intangible assets
1,221.57 767.36 442.41
(iii) Capital work-in-progress 17,431.94 17,396.79 19,581.50
Non-current investments
11,136.50 11,056.98 10,901.50
Deferred tax assets (net)
1,952.21 2,441.91 1,816.15
Long term loans and advances
24,355.80 24,824.56 27,129.73

Other Non-Current assets 3,030.84 3,111.50 9,205.20

Current assets
Current Investment 41,271.35 40,411.05 31,795.00
Inventories 94,768.36 109,251.61 115,776.27
Trade Receivables 73,844.47 84,990.68 92,388.71
Cash and Bank balances 3,809.00 8,098.27 12,925.34
Short Term Loans and Advances 9,914.32 10,068.25 9,649.14
Other Current Assets 6,114.99 6,947.47 8,198.01
TOTAL 418,300.57 444,235.32 466,804.80

Net Current Assets 45,604.50 94,861.05 77,645.82

Year Ended Projected
31st March, 2017
2016

6,138.08 6,138.08 \\constant

156,997.94 175,027.59 \\previous year + net profit from IS projection (18029.65)
6,294.67 6,294.67 \\assumed previous' year

101,611.35 101,611.35 \\no current portion of long debt given. Hence, constant
5,742.23 5,742.23 \\no change
16,046.94 16,046.94 \\no change

72,659.39 72,659.39 \\no change

75,731.61 81585.48 \\ COGS/payable turnover ratio
60,016.48 69112.20 \\sales/expense turnover ratio
5,637.20 5,637.20 \\no change
506,875.89 539,855.12

129,487.59 150,120.89 \\ prior year + Capex estimate

1,160.43
1,711.45 \\ prior year + Intangible assets estimate
24,998.35 20,008.45 \\calculated as percentage of fixed non-current assets
14,567.85 14,567.85
\\no change
1,992.31 1,992.31
\\no change
28,936.63
26,311.68 \\apply basic yoy growth rate
6,052.79 6,052.79 \\no change

35,669.49 35,669.49 \\no change

126,603.22 141,862.91 \\ COGS/inventory turnover ratio
104,748.39 112,530.79 \\ Sales/receivable turover ratio
9,244.84 5357.94 \\balancing figure
9,537.81 9,792.38 \\apply basic yoy growth rate
13,876.19 13,876.19 \\no change
506,875.89 539,855.12

85,635.26 90,095.43
 From P|L

Year Ended Year Ended Year Ended

YEARS 31st March, 2013 31st March, 2014 31st March, 2015

SALES 414042.05 459374.43 537454.24

COGS 244729.41 284942.6 337009.39

Tangible Fixed assets 129449.22 124868.89 126995.84

Depreciation Expense 18367 18931.81 15762.91

CAPEX 14367.14 14351.48 17889.86

Intangible Fixed Assets 1221.57 767.36 442.41

Amortization Expense 537.43 647.15 424.89
Software Estimation 391.39 192.94 99.94

SELECTED RATIOS

Inventory Turnover Rate 2.582 2.608 2.911

Accounts Payable turnover rate 4.665 4.805 4.799
Accrued Expenses turnover rate 6.113 10.571 10.088

Capital expenditure (CAPEX) in Lacs 14367.14 14351.48 17889.86

CAPEX/Sales (%) 3.47% 3.12% 3.33%

Accounts Receivable turnover rate 5.607 5.405 5.817

(Intangible Assets CAPEX)/Sales (%) 0.09% 0.04% 0.02%

Capital WIP as % of total fixed assets 11.77% 12.16% 13.32%

 Year Ended Projected
31st March, 2016 2017

563247.82 624726.20
343782.99 383626.80

129487.59
16029.89

18521.64 20633.30 //calculated as percentage of sales

1160.43
395.43
1113.45 551.02 //calculated as percentage of sales

AVERAGES

2.715 2.704
4.539 4.702
9.385 9.039 \\considering other current liabilities as accrued expenses

18521.64 16282.53
3.29% 3.30%

5.377 5.552

0.20% 0.09%

16.06% 13.33%
 Year Ended Year Ended
YEAR 31st March, 31st March,
2013 2014
Altman Z Score
Total Assets 418,300.57 444,235.32
Working Capital 45,604.50 94,861.05
X1 Working Capital/Total Assets 0.10902328 0.2135378385
Retained Earnings 2,872.95 10,763.00
X2 Retained Earnings/Total Assets 0.006868147 0.0242281501
EBIT 3,667.57 12,461.27
X3 EBIT/Total Assets 0.008767786 0.0280510564
Market Capitalisation (in lacs) 173,060 308,440
BV of Debt 138448.79 166335.65
X4 MV of Equity/Book Value of Debt 1.249992867 1.8543228707
Sales 414042.05 459374.43
X5 Sales/Total Assets 0.989819474 1.0340790327

Z=1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + 1.0X5

Value of Z 1.909192231 2.5294060574
Conclusion Gray Gray
 Year Ended Year Ended Projected
31st March, 31st March, 2016 2017
2015
466,804.80 506,875.89 539,855.12
77,645.82 85,635.26 90,095.43
0.1663346649 0.1689471953 0.166888171
11,281.49 9,205.37 18,029.65
0.0241674679 0.018160994 0.0333971999
15,974.68 16,190.80 30,163.47
0.0342213276 0.031942336 0.0558732761
263,170 302,090
157080.61 174270.74
1.675381831 1.7334522135
537454.24 563247.82 624726.2047855
1.1513468585 1.1112144632 1.1572108559

2.5029423912 2.4848575262 1.5886145522

Gray Gray Gray
 Operating Lease (Notes to financial statements)
2016 2015

Premises taken on operating lease

For a period not later than one year 2740.79 1155.25
For a period later than one year and not later than five years 5649.33 663.32
For a period later than five years 979.56 69.04

Vehicles taken on operating lease

For a period not later than one year 118.14 109.28
For a period later than one year and not later than five years 56.54 147.79
For a period later than five years

Impact on P&L Statement

Total operating lease expenses (including Contingent Rent Rs.202.23 Lacs,

Previous Year Rs.86.57 Lacs) debited to Statement of Profit and Loss is Rs. 7564.16
Lacs (Previous year Rs.6973.45 Lacs)

Impact on B/S
No impact on assets and liabilities side
// No indication that this could be a capital lease as the total term of the lease if coming out to be 6 years