LeveragesDESCRIPTIONMar-13Mar-12Mar-11Mar-10Mar-09Mar-08Net Sales929.99798.09764.01640.90469.90446.61EBIT27.8712.8247.3158.5329.4049.06Earnings Per Share6.671.4212.7720.109.1818.40Percentage change in EBIT (A)1.17-0.73-0.190.99-0.40Percentage change in Sales (B)0.170.040.190.360.05Percentage change in EPS ( C )3.69-0.89-0.361.19-0.50DOL = A/B7.10-16.34-1.002.72-7.69DFL= C/A3.151.221.901.201.25DTL = DOL*DFL22.34-19.92-1.903.27-9.61

Capital StructureDescription201320122011201020092008Shareholder's Funds ( E )236.42171.22171.96146.63104.5183.44Total Debt (D)165.9199.1694.4360.0550.5311.76Debt to Equity Ratio (D/E)0.700.580.550.410.480.14D+E402.33270.38266.39206.69155.0495.19 Tax Paid-4.35-4.07-8.41-8.50-3.30-5.27Profit Before Tax20.662.7939.9357.0226.7346.88Tax = (Tax Paid / PBT)21.04%145.81%21.06%14.91%12.33%11.25%ROE (%)8.671.918.4136.7422.43DPS(Rs)1.501.501.501.500.00Earnings Per Share (Rs)6.671.4212.7720.109.18Dividend Payout Ratio (P)0.231.060.120.070g =(1- P)* ROE6.72-0.1116.2534.0022.43Average Growth15.8576417609Price Per share (P0)128.9123.2220.5234.8536.1Interest7.2110.037.381.512.67Long Term Debt55.205044.74.97Ke15.8715.8715.8615.8615.90Kd0.130.000.150.030.54ke * E / (D+E)9.3310.0510.2411.2510.72kd * D/(D+E)0.050.000.050.010.17

WACC9.3810.0510.2911.2610.89

Cash BudgetHitachi (crores)Mar'2013Monthly divisionGross Sales1019.2284.94Total Expenditure883.5573.63Opening Cash2.270.19

Forecast Cash BudgetDec'13Jan'14Feb'14Mar'14Increment 5%3%8%Monthly Sales84.9489.1891.8699.21Monthly Expenditure73.6377.3179.6386.00Net Cash Flow11.3111.8712.2313.21Opening Cash0.1911.5023.3735.59Cumulative Cash11.5023.3735.5948.80

Dividend Policy

Divend Policy for Hitachi Home

20132012201120102009Profit After Tax51.74-89.15155211.49180.29Dividend per Share(Rs)1.51.51.51.51rRF8.58.58.58.58.5RPM8.58.58.58.58.5Dividend Yield %1.161.210.680.624.38Dividend Payout Ratio 0.221.060.120.070.11Face Value10101010109331623693316236933162369331623693316236Dividend Amount4.083.443.443.441.47Walter model2799487080EPS6.671.4212.7720.19.18r %0.150.150.150.150.15Growth Firm9.34-4.242.802.191.17r %0.52-0.891.552.111.80Normal firm-2.3613.065.238.221.02r %0.090.090.090.090.09Decline firm 4.953.213.793.781.68Gordon modelEPS6.671.4212.7720.19.18r %0.150.150.150.150.15let b =Growth Firm 6.24-0.583.503.972.140.60.60.60.60.6r %0.52-0.891.552.111.80Normal firm12.89-1.598.249.505.090.40.40.40.40.4r %0.090.090.090.090.09Decline firm 11.81-1.427.468.594.610.10.10.10.10.1Market Price 20132012201120102009Hitachi Home149.9596.45220.4139.1549Return (capial gain+Dividend)0.60-0.550.611.91Return %59.70-54.6860.86191.00Walter modelGrowth Firm9.34-4.242.802.191.17Return (capial gain+Dividend)-4.01-1.291.862.12Return %-401.35-128.55185.63212.11Over valued /Under valuedYearMarket PriceEPSP/ E Ratiodivdend paid%price change2013149.956.670.220.0255.47201296.451.421.060.02-56.242011220.4012.770.120.0258.392010139.1520.100.070.02183.98200949.009.180.110.01Ke (Avg %price change)60.400.6040007906G (growth) -0.06(EPS5/EPS1)1/5-1G (growth) %-6.19

YearMarket PriceP0 overvalue 2013149.95201296.450.0296.432011220.40.02220.382010139.150.02139.132009490.0248.98

Graphs for Dividend Policy20132012201120102009WACC (k%) Blue Star8.398.238.512.9913.77WACC (k%) Hitachi Home9.3810.0510.2911.2610.89

20132012201120102009Dividend Yield % Blue Star1.90.531.882.24.52Dividend Yield % Hitachi Home1.161.210.680.624.38

20132012201120102009Dividend Payout ratio (Blue Star)0.52-0.10.4060.340.35Dividend Payout ratio (Hitachi Home)0.2241.060.120.0750.109

20132012201120102009Dividend Amount (Blue Star)26.988.9962.9671.9562.96Dividend Amount (Hitachi Home)4.083.443.443.441.47

InventoryHitachiMar-13Mar-12Mar-11Mar-10COGS(Cr)1019.22867.32829.89685.97Opening Inventory(Cr)268.07326.73180.4116.44Closing Inventory(Cr)305.64268.07326.73180.4Avg Inventory(Cr)286.86297.40253.57148.42Inventory Turnover Ratio3.552.923.274.62# of Days365365365365Inventory Turnover Ratio3.552.923.274.62Average Age of Inventory(Days)102.73125.16111.5278.97Industry Average Age of Inventory(Days)71.9368.259.3659.89YearMar-13Mar-12Mar-11Mar-10Average Age of Inventory(Days)- Hitachi102.73125.16111.5278.97Average Age of Inventory(Days) - Bluestar61.6862.3148.9136.23Industry Average Age of Inventory(Days)71.9368.259.3659.89

RecievablesHitachiMar-13Mar-12Mar-11Mar-10Sales(Cr)1019.22867.32829.89685.97Sundry Debtor Opening(Cr)148.14125.2195.9881.83Sundry Debtor Closing(Cr)164.53148.14125.2195.98Avg A/c Recievables(Cr)156.34136.68110.6088.91Recievable Turnover Ratio6.526.357.507.72# of Days365365365365Recievable Turnover Ratio6.526.357.507.72Average Collection Period(Days)55.9957.5248.6447.31Industry Average Collection Period(Days) 70.5864.8863.0569.66YearMar-13Mar-12Mar-11Mar-10Average Collection Period(Days) - Hitachi55.9957.5248.6447.31Average Collection Period(Days) - Bluestar84.1894.5988.5088.26Industry Average Collection Period(Days) 70.5864.8863.0569.66

PayablesHitachiMar-13Mar-12Mar-11Mar-10COGS(Cr)1019.22867.32829.89685.97Opening A/c Payable(Cr)334.32369.86229.60161.94Closing A/c Payable(Cr)433.27334.32369.86229.60Avg A/c Payable(Cr)383.79352.09299.73195.77Payment Turnover Ratio2.662.462.773.50# of Days365365365365Payable Turnover Ratio2.662.462.773.50Average Payment Period(Days)137.44148.17131.83104.17Industry Average Payment Period(Days)91.896.7990.5689.25YaerMar-13Mar-12Mar-11Mar-10Average Payment Period(Days) - Hitachi112.43121.65103.9559.09Average Payment Period(Days) - Bluestar94.9293.3385.7674.74Industry Average Payment Period(Days)91.896.7990.5689.25

Cash Conversion CycleHitachiMar-13Mar-12Mar-11Mar-10Average Age of Inventory(Days)102.73125.16111.5278.97Average Collection Period(Days)55.9957.5248.6447.31Operating Cycle(Days)158.71182.67160.16126.28Average Payment Period(Days)137.44148.17131.83104.17Cash Conversion Cycle(Days)21.2734.5028.3422.11Industry Cash Conversion Cycle(Days)50.7136.2931.8540.30Sales(Cr)1019.22867.32829.89685.97# of Days365365365365Each Day's Capital Requirement(Cr)2.792.382.271.88Money Blocked(Cr)59.4081.9864.4341.55YearMar-13Mar-12Mar-11Mar-10Cash Conversion Cycle(Days) - Hitachi21.2734.5028.3422.11Cash Conversion Cycle(Days) - Bluestar50.9463.5751.6549.75Industry Cash Conversion Cycle(Days)50.7136.2931.8540.3

Working CapitalHitachiMar-13Mar-12Mar-11Mar-10Current Assets(Cr)630.01438.42475.2333.06Current Liabilities(Cr)420.28316.58354.91246.13Net Working Capital(Cr)209.73121.84120.2986.93YearMar -13Mar -12Mar -11Mar -10Net Working Capital(Cr) - Hitachi209.73121.84120.2986.93Net Working Capital(Cr) - Bluestar326.4362.57628.98353.21

ROAHitachiMar-13Mar-12Mar-11Mar-10Mar-09Net Income(Cr)15.273.2529.3246.420.97Total Assets(Cr)416.09280.76270.89206.68155.04Return on Asset(%)3.671.1610.8222.4513.53Industry Return on Asset(%)4.222.077.5510.448.68YearMar-13Mar-12Mar-11Mar-10Mar-09Return on Asset(%) - Hitachi3.671.1610.8222.4513.53Return on Asset(%) - Bluestar5.75-10.4615.3636.3446.22Industry Return on Asset(%)4.222.077.5510.448.68

ROEHitachiMar-13Mar-12Mar-11Mar-10Mar-09PAT15.273.2529.3246.420.97D/E Ratio0.650.550.470.440.33Total Assets(Cr)416.09280.76270.89206.68155.04(D/E)+11.651.551.471.441.33Equity 252.18181.14184.28143.53116.57Debt163.9199.6286.6163.1538.47ROE(%)6.061.7915.9132.3317.99Industry ROE(%)126.1122.2930.3325.99YearMar-13Mar-12Mar-11Mar-10Mar-09ROE(%) - Hitachi6.061.7915.9132.3317.99ROE(%) - Bluestar10.17-18.4122.2740.3450.84Industry ROE(%)126.1122.2930.3325.99