Autoline Industries Limited

Date of report

Wednesday, April 23, 2008

Company

Autoline Industries Ltd - Quick & Dirty Analysis

Analyst

Dhananjayan J

Contact

[email protected], [email protected]

Table of Contents (Please enable the macro attached to this file)

Fact Sheet

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Quick & Dirty Analysis

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Segment

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Disclaimer

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Fact Sheet Autoline Industries Limited Autoline Industries Limited manufactures various auto parts, sheet metal components, silencers and exhaust systems for passenger cars, sports utility vehicles, commercial vehicles, two wheelers, tractors, and other types of vehicles. Website

http://www.autolineind.com/

Special situation

Insider buyings

Pro forma valuation Price ratio Price to earnings Price to free cash flow Price to tangible book value

9.2 na 2.1

Enterprise value ratio EV / Sales EV / EBITDA EV / EBIT EV / (EBITDA-Capex)

0.8 5.4 6.1 40.6

Debt and interest coverage Net Debt / EBITDA EBIT / Interest expense

0.5 12.3

Yield Ratio Dividend yield Earnings yield FCF1 yield

2.2% 10.8% -4.6%

Return on Assets Return on operating assets Return on capital invested

25.2% 32.0%

Operating margins EBITDA EBIT Net income

14.3% 12.7% 7.6%

Depreciation Vs. Capex

Capex

The above valuation ratios are computed after excluding non recurring items in the LTM financial numbers published by the company. But (Refer QAD sheet)

Conclusion Capital expenditure is more than depreciation but the company is in expansion mode. Major part of capital expenditu businesses. As the company is more acquisitive, we got to wait and watch the fruits of these M & As. As of now, we believe tha

Our Verdict:

Overvalued - avoid.

450 350 250 150 1 5 8 13 R R R R R R R R R R R R R R R R R R R R / / / 1/ o o o o o o o o o o o o o o o o o o o o 312/ 5w ww ww ww w ww ww ww w ww ww w

or part of capital expenditure might be for acquiring As. As of now, we believe that the stock is overvalued.

QUICK & DIRTY ANALYSIS (amt in lakhs) Sales Less : Excise duty Net sales Total growth Other income Increase / decrease in finished goods Cost of materials consumed Other direct costs Administrative costs Selling expenses EBITDA Margin Depreciation EBIT Margin Interest and finance charges Interest income EBT Margin Tax @ 35% Net income before preference dividend Preference dividend Net income Margin Outstanding shares EPS Non - recurring items Sundry balance written back - other income Miscellaneous expenses written off Donations Sundry balances written off

9M 12/06 13,787.00 1,806.00 11,981.00

FY 3/07 21,333.26 2,649.49 18,683.77

9.00 -725.00 8,450.00 2,220.00 731.00

2.00 -53.17 12,249.18 3,314.53 422.44 123.07 2,629.72 14.1% 319.23 2,310.50 12.4% 221.68 13.21 2,102.02 11.3% 735.71 1,366.31 1.41 1,364.90 7.3% 103.67 INR 13.17

1,314.00 11.0% 208.00 1,106.00 9.2% 164.00 942.00 7.9% 329.70 612.30 612.30 5.1% 103.67 INR 5.91

9M 12/07 LTM 12/07 26,789.00 34,335.26 2,904.00 3,747.49 23,885.00 30,587.77 99.4% 382.00 375.00 -87.00 584.83 16,454.00 20,253.18 3,373.00 4,467.53 1,462.00 1,153.44 123.07 3,065.00 4,380.72 12.8% 14.3% 396.00 507.23 2,669.00 3,873.50 11.2% 12.7% 258.00 315.68 13.21 2,411.00 3,571.02 10.1% 11.7% 843.85 1,249.86 1,567.15 2,321.16 1.41 1,567.15 2,319.75 6.6% 7.6% 103.67 103.67 INR 15.12 INR 22.38

0.37 23.55 0.75 3.28

Total assets Operating assets Return on operating assets

17,175.15 15,396.74 15.0%

17,175.15 15,396.74 25.2%

Fixed assets excluding Goodwill Current assets excluding cash Current liabilities excluding debt Capital invested Return on capital invested

9,044.74 6,067.45 2,989.24 12,122.95 19.1%

9,044.74 6,067.45 2,989.24 12,122.95 32.0%

Cash & cash equivalents Debt Gross capex Sale of fixed assets Net capex Shareholders equity - book value Tangible Book Value (TBV) TBV/share Notional FCF1 before invst in WC

1,559.61 3,751.63 3,800.19 3,800.19 10,306.40 10,087.60 INR 97.31 -2,116.06

1,559.61 3,751.63 3,800.19 3,800.19 10,306.40 10,087.60 INR 97.31 -973.21

FCF1/share Price Mcap EV EV/Sales EV/EBITDA EV/EBIT EV/(EBITDA-Net capex) PE P/FCF1 P/TBV Net debt/EBITDA EBIT/Interest expense Dividend per share Dividend yield Earnings yield FCF1 yield

-INR 20.41

-INR 9.39 INR 206.25 21,381.62 23,573.64 0.8 5.4 6.1 40.6 9.2 na 2.1 0.5 12.3 INR 4.50 2.2% 10.8% -4.6%

Segment (amt in lakhs) FY 3/07 REVENUE Press sheet and auto %age on total sale Others %age on total sale Total

21,003.19 98.5% 330.60 1.5% 21,333.79

EBITDA Press sheet and auto Margin Others Margin Total Margin

2,583.74 12.3% 31.97 9.7% 2,615.71 12.3%

EBIT Press sheet and auto Margin Others Margin Total Margin

2,299.28 10.9% -2.79 -0.8% 2,296.49 10.8%

Depreciation Press sheet and auto Others Total

284.46 34.76 319.22

Assets Press sheet and auto Others Total

13,316.46 782.01 14,098.47

Liabilities Press sheet and auto Others Total

13,950.66 296.64 14,247.30

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