Valuation - Kitchens of India

8/14/2019 Valuation - Kitchens of India

1/13

Assumpt

ions

Heads Yr-1 Yr-2 Yr-3 Yr-4

Avg. daily cust base 280 700 1500 4,000

Veg Pricing Point 37 40.33 43.96 47.92

Non Veg Price Point 45 49.05 53.46 58.28

Veg/ Non Veg Ratio 0.5 0.55 0.55 0.6

Blended Invoice Value 41 44.25 48.24 52.06

Capex % 42% 47% 44% 30%

Effective Tax rate 18% 21% 24% 30%

Heads Explicit Forecast Period

yr-1 yr-2 yr-3 yr-4

Revenue 3,857,280 10,408,541 24,311,377 69,968,863

NOPAT 67,250 746,186 1,393,052 4,263,303

Depreciation 27,800 53,320 92,838 182,554

Capex 28,000 348,000 618,500 1,300,000

Changes in non cash working capital 82,389 175,498 1,412,912

FCF 67,050 369,117 691,892 1,732,945

Equity Value

Explicit Value 3,803,801

Perpetuity Value 121,903,727

Total Value of the equity 125,707,527


2/13

Yr-5

6,000 Avg. Inflation 9%

52.23 Terminal Growth Rate 15%

63.52 WACC 17%

0.6

56.75

45%

30%

Perpetuity Value

yr-5

114,399,091 CF in subsequent yr. 5,345,352

10,375,469 Terminal Gorwth Rate 15%

630,599

4,673,000

1,684,936

4,648,132 Perpetuity Value 267,267,586

Yr-1 Yr-2 Yr-3

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

280

700

1,500


3/13

Yr-4 Yr-5

4,000

6,000


4/13

Yr-1

Balance-Sheet

Liability Asset

Retained Earning 39,250 Cash in hand 12,250

Vishal 100,000 Kitchen Equipments 100,000Indranil 100,000 68000

Prasenjit 100,000 Invenory 27440

Souparna 100,000 Other Assets 110,000

Outside Investor

Shareholder's Equity 439,250

Short term Loan Housing Security 100,000

Long Term Loan Debtors 80,360

Sundry Creditors 58,800

Total Liability 498,050 Total Asset 498,050

P&L

Revenue 3,857,280

Bad Debt Provision 77,146

Depriciation 27,800

Operating Expenses

Cooking Gas 439,040

Supplier Consumables 1,317,120

Salary-cook 403,200

Salary-Promoters 564,402Delivery Charge 376,320

Packaging Cost 282,240

Rent 168,000

OthersPromotional Expenses 60,000

H/W & S/W Maintenance 30,000Telephone , Internet 30,000

Interest Expenses

Income before Tax 82,012

TAX 14,762

NOPAT 67,250

Scooter ( 8 nos.)


5/13

Yr-2

Balance-Sheet Balance-Sheet

Liability Asset Liability

Retained Earning 437,436 Cash in hand 32,847 Retained Earning

Promoter's Contri 400,000 Kitchen Equipments 190,000 Promoter's Contri169200

Invenory 74774

Other Assets 174,000

Shareholder's Equity 837,436 Shareholder's Equity

Short term Loan Housing Security 140,000 Short term Loan

Long Term Loan Debtors 216,845 Long Term Loan

Sundry Creditors 160,230 Sundry Creditors

Total Liability 997,666 Total Asset 997,666 Total Liability

P&L P&L

Revenue 10,408,541 Revenue

Bad Debt Provision 312,256 Bad Debt Provision

Depriciation 53,320 Depriciation

Operating Expenses Operating Expenses

Cooking Gas 1,196,384 Cooking Gas

Supplier Consumables 3,589,152 Supplier Consumables

Salary-cook 1,092,000 Salary-cook

Salary-Promoters 907,289 Salary-PromotersDelivery Charge 1,058,400 Delivery Charge

Packaging Cost 823,200 Packaging Cost

Rent 264,000 Rent

Others OthersPromotional Expenses 96,000 Promotional Expenses

H/W & S/W Maintenance 36,000 H/W & S/W MaintenanceTelephone , Internet 36,000 Telephone , Internet

Interest Expenses Interest Expenses

Income before Tax 944,539 Income before Tax

TAX 198,353 TAX

NOPAT 746,186 NOPAT

Scooter ( 20 nos.)


6/13

Yr-3 Yr-4

Balance-Sheet

Asset Liability Asset

1,211,988 Cash in hand 76,722 Retained Earning 4,175,291 Cash in hand

400,000 Kitchen Equipments 271,000 Promoter's Contri 400,000 Kitchen Equipments370,780

Invenory 174,651 Invenory

Other Assets 286,600 Other Assets

1,611,988 Shareholder's Equity 4,575,291

Housing Security 300,000 Short term Loan Housing Security

Debtors 506,487 Long Term Loan Debtors

374,252 Sundry Creditors 1,450,432

1,986,239 Total Asset 1,986,239 Total Liability 6,025,723 Total Asset

P&L

24,311,377 Revenue 69,968,863

850,898 Bad Debt Provision 2,448,910

92,838 Depriciation 182,554

Operating Expenses

2,794,411 Cooking Gas 8,122,422

8,383,234 Supplier Consumables 24,367,266

2,520,000 Salary-cook 7,200,000

2,593,034 Salary-Promoters 6,641,2782,520,000 Delivery Charge 7,392,000

2,016,000 Packaging Cost 6,048,000

480,000 Rent 1,200,000

Others144,000 Promotional Expenses 180,000

42,000 H/W & S/W Maintenance 48,00042,000 Telephone , Internet 48,000

Interest Expenses

1,832,963 Income before Tax 6,090,433

439,911 TAX 1,827,130

1,393,052 NOPAT 4,263,303

Scooter ( 43 nos.) Scooter ( 114 nos.)


7/13

Yr-5

Balance-Sheet

Liability Asset

429,950 Retained Earning 9,877,760 Cash in hand 851,184

343,900 Promoter's Contri 400,000 Kitchen Equipments 409,5101,043,702 1,412,332

1,087,824 Invenory 1,260,000

437,940 New office 4,000,000

(less depriciation) 400,000

Shareholder's Equity 10,277,760 Net Value of office 3,600,000Other Assets 484,146

600,000 Short term Loan Housing Security 600,000

2,082,407 Long Term Loan Debtors 3,404,735

Sundry Creditors 1,260,000

6,025,723 Total Liability 11,537,760 Total Asset 11,537,760

P&L

Revenue 114,399,091

Bad Debt Provision 4,003,968

Depriciation 630,599

Operating Expenses

Cooking Gas 9,408,000

Supplier Consumables 28,224,000

Salary-cook 11,520,000

Salary-Promoters 22,090,425Delivery Charge 12,096,000

Packaging Cost 10,080,000

Rent 1,200,000

OthersPromotional Expenses 216,000

H/W & S/W Maintenance 54,000Telephone , Internet 54,000

Interest Expenses

Income before Tax 14,822,099

TAX 4,446,630

NOPAT 10,375,469

Scooter ( 157 nos.)


8/13

Yr-1 Yr-2 Yr-3

Tri-Monthly Working Capital 12,250 32,847 76,722

Capex Projection

Kitchen Equipments 100,000 100,000 100,000

Office Furnitures 50,000 50,000

Computer 50,000 50,000 50,000

Stationery 10,000 25,000 30,000

Website Construction/ enhancement 50,000 25,000 10,000

Security Deposit 100,000 40,000 160,000

Scooters 68000 108000 218500

Buying of Office Space

Total CAPEX 428,000 348,000 618,500

Yr-1 Yr-2 Yr-3 Yr-4

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000


9/13

Yr-4 Yr-5

429,950 851,184

100,000 100,000

100,000

50,000 50,000

30,000 40,000

10,000 10,000

300,000

710,000 473,000

4,000,000

1,300,000 4,673,000

Yr-5


10/13

Yr-1 Yr-2 Yr-3 Yr-4 Yr-5

Shareholder's Equity 439,250 837,436 1,611,988 4,575,291 10,277,760

Salary 564,402 907,289 2,593,034 6,641,278 22,090,425

Total 1,003,652 1,744,725 4,205,021 11,216,569 32,368,185

Yr-1 Yr-2 Yr-3 Yr-4

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

Promoter's Gain

Shareholder's Equity Salary Total


11/13

Yr-5


12/13

Customer Growth 28% 273

month-1 month-2 month-3 month-4 month-5 month-6

Daily Customer Base 50 64 82 105 134 172

Average Invoice size 50 50 50 52 52 52

Total Revenue 70,000 89,600 114,688 152,673 195,421 250,139

Cost

Supplier - Consumables 25,200 32,256 41,288 52,848 67,646 86,587

Utility Consulambles 8,167 10,453 13,380 17,127 21,922 28,060

Cook-Salary 10,000 10,000 10,000 15,000 15,000 20,000

Packaging Cost 5,600 7,168 9,175 11,744 15,032 19,241

Delivery Cost 12,600 16,128 20,644 26,424 33,823 43,293

Office Rent 14,000 14,000 14,000 14,000 14,000 14,000

5,000 5,000 5,000 5,000 5,000 5,000

Telephone/ Internet 3,000 3,000 3,000 3,000 3,000 3,000

Promotional Expenses 5,000 5,500 6,050 6,655 7,321 8,053

Profit -18,567 -13,905 -7,849 875 12,677 22,905

Profitability (%) -27% -16% -7% 1% 6% 9%

Utility Consumption

2 ppl 60 days 1 gas

120 ppl 1 day 1 gas

100 ppl 1 day 0.83

S/W + H/W Maintenance


13/13

month-7 month-8 month-9 month-10 month-11 month-12 Yearly

220 281 360 461 590 756 NA

52 55 55 55 55 55 NA

320,178 433,471 554,843 710,200 909,056 1,163,591 4,963,860

110,831 141,863 181,585 232,429 297,509 380,812 1,650,853

35,917 45,974 58,847 75,324 96,415 123,411 534,999

20,000 20,000 25,000 25,000 30,000 30,000 230,000

24,629 31,525 40,352 51,651 66,113 84,625 366,856

55,415 70,932 90,793 116,214 148,755 190,406 825,427

14,000 14,000 14,000 14,000 14,000 14,000 168,000

5,000 5,000 5,000 5,000 5,000 5,000 60,000

3,000 3,000 3,000 3,000 3,000 3,000 36,000

8,858 9,744 10,718 11,790 12,969 14,266 106,921

42,527 91,433 125,549 175,791 235,295 318,072 984,803

13% 21% 23% 25% 26% 27% 20%

Documents

Valuation - Kitchens of India