Company Overview - WatawalaPlantations

FY24E and FY25E
Revenue	12000	13000	25000

	Period		FY21	FY22	FY23	4Q23	1Q24	2Q24	3Q24E	4Q24E	FY24	1Q25E	2Q25E	3Q25E	4Q25E	FY25E	FY26E	FY27E	FY28E	FY29E
1	Plantations		3,283.4	5,780.7	7,573.3	0.0	2,016.9	1,892.7			6,867.1
	YoY		22.7	76.1	31.0						-9.3

2	Dairy		650.1	694.0	1,194.8	0.0	340.5	348.2			1,454.0
	YoY		11.3	6.8	72.2						21.7

3	Tea		0.0	0.0	0.0	0.0	0.0	0.0			0.0
	YoY		-100	nan	nan						0

4	Inter segment adjustments		0.0	0.0	0.0	0.0	0.0	-0.1			-0.2
	YoY		nan	nan	nan						0

5	Other		0.0	0.0	0.0	0.0	0.0	0.0			0.0
	0		0	0	0						0

	Period		FY21	FY22	FY23	3Q24E	4Q24E	FY24	1Q25E	2Q25E	3Q25E	4Q25E	FY25E	FY26E	FY27E	FY28E	FY29E
1	COGS		2,008.1	2,911.0	5,230.0	0.0	1,367.5	1,221.7			5,166.3
	- As a % of sales		46.3%	42.0%	57.4%	nan%	-4.2%	-4.3%			59.6%

2	Administration		65.6	125.2	166.3	0.0	38.8	24.1			241.1	0
	- As a % of sales		6.2%	4.8%	4.0%	nan%	5.9%	5.4%			5.2%

3	Selling & Distribution		0.0	0.0	79.0	0.0	43.9	42.4			150.7
	- As a % of sales		-0.3%	-0.2%	0.8%	nan%	1.9%	1.9%			1.6%

4	Capital Expenditure		146.6	425.3	354.0	0.0	35.7	31.9		0	289.6	00	0	00	0
	- As a % of sales		3.7%	6.6%	4.0%	nan%	1.5%	1.4%			3.5%

	Fixed Assets - Cost	FY21	FY22	FY23	4Q24E	FY24E	1Q25E	3Q25E	FY28E
1	Balance B/F	3,140.7	3,242.3	3,660.0	0.0	0.0	31.9	3,988.4	4,239.0
	Capital Expenditure	146.6	425.3	354.0	35.7	31.9	222
	Balance C/F	3,242.3	3,660.0	3,988.4	35.7	31.9		4,239.0

Depreciation	FY21	FY22	FY23	3Q24E	4Q24E	FY24	1Q25E	2Q25E	3Q25E	4Q25E	FY25E	FY26E	FY27E	FY28E	FY29E
Balance B/F	967.3	1,132.4	1,317.6	0.0	0.0	0.0	-2,420.8		1,505.1					1,683.1
Depreciation charge	185.3	192.9	194.7	0.0	100.0	97.2			203.1
- As a % of sales	4.7%	3.0%	2.2%	nan%	4.2%	4.3%			2.4%
Balance C/F	1,132.4	1,317.6	1,505.1	0.0	-2,433.6	-2,420.8	111	111	1,683.1	111	111	111	111	111	111	111	111	111
Net Book Value at end	2,110.0	2,342.4	2,483.3	0.0	2,469.3	2,452.7			2,555.9

2	Working Capital

Period	FY21	FY22	FY23	3Q24E	4Q24E	FY24	3Q25E
2.1 Accounts and notes receivables	292.3	256.3	497.4	0.0	363.1	416.5	334.7
- As a % of sales	7.4	4.0	5.7	nan	15.4	18.6	4.0
Four Qtr Cum. Revenue				2,240.8	4,598.2	4,598.2
Four Qtr Cum. COGS				-1,221.7	-2,589.2	-2,589.2

	2.2 Inventories		111.3	245.9	874.6	0.0	747.3	670.3			559.8
	- As a % of COGS		5.5	8.4	16.7	nan	54.6	54.9			10.8

	2.3 Prepayments		0.0	0.0	0.0	0.0	0.0	0.0			0.0
	- As a % of sales		0	0	0	nan	0	0			0

	2.4 Accounts payable		366.3	560.0	808.2	0.0	1,583.0	749.7			916.5
	- As a % of COGS		18.2	19.2	15.5	nan	115.8	61.4			17.7

2.5 Other	0.0	0.0	0.0	0.0	34.6	34.6	0.0
- As a % of COGS	0.0	0.0	0.0	0.0	0.0	0.0
Working Capital				42673.1
Change in Working Capital						686.7

Interest Bearing Debt	FY21	FY22	FY23	3Q24E	4Q24E	FY24	1Q25E	2Q25E	3Q25E	4Q25E	FY25E	FY26E	FY27E	FY28E	FY29E
Opening balance	763.7	597.7	372.6	372.6	2.5	0.7	5.6		372.6
Issuance of debt	247.9	0.0	0.0	0.0	100.0	0.0			154.9
Repayment of debt	413.9	225.1	410.2	0.0	3.0	39.2			28.8
Closing balance	597.7	372.6	2.5	372.6	0.7	5.6			128.6
Adjustments	0.0	0.0	40.1	0.0	0.0	0.0
Interest Expenses	36.3	30.5	70.0	0.0	0.0	0.0			13.4
Average Interest rate (%)	5.3	6.3	37.3	0	0	0	%	%	20.5	%	%	%	%	%	%	%	%	%

Leases	FY21	FY22	FY23	3Q24E	4Q24E	FY24	1Q25E	2Q25E	3Q25E	4Q25E	FY25E	FY26E	FY27E	FY28E	FY29E
Leases - Opening balance	244.0	250.3	256.4	0.0	0.0	0.0	409.9		274.0					404.8
Additions	2.2	0.0	0.0	0.0	410.2	409.9
Payments	37.1	41.2	43.5	0.0	15.3	-15.3			61.3
Closing balance	250.3	256.4	274.0	0.0	410.2	409.9			404.8
Adjustments	5.4	8.4	20.2	0.0	0.0	0.0			133.5
Lease Interest expenses	35.9	38.9	40.9	0.0	0.0	0.0			58.5
Average Interest rate (%)	14.5	15.4	15.4	0	0	0	%	%	17.2	%	%	%	%	%	%	%	%	%

Interest Income	FY21	FY22	FY23	3Q24E	4Q24E	FY24	1Q25E	2Q25E	3Q25E	4Q25E	FY25E	FY26E	FY27E	FY28E	FY29E
i. Cash & CE Balance C/F			1,427.0	0.0	1,963.5	1,432.8		857.0	797.4
ii. Interest Income	15.5	54.8	138.9	0.0	42.2	39.8			183.8
Average Interest Income Rate	2.3	2.7	14.7	0	2.1	2.0	%	%	10.3	%	%	%	%	%	%	%	%	%

Tax	FY21	FY22	FY23	3Q24E	4Q24E	FY24	1Q25E	2Q25E	3Q25E	4Q25E	FY25E	FY26E	FY27E	FY28E	FY29E
Profit Before Tax	1,751.7	3,331.8	2,953.5	0.0	833.8	926.4			2,765.8
Opening balance	52.6	0.0	0.8	0.8	4.5	4.2	-46.3
Current Income Tax	92.7	-126.0	621.7	0.0	0.0	0.0			421.1
Taxes paid	108.3	0.0	109.5	0.0	0.3	50.5	0.0		144.8					421.1
Closing balance - Calculated	0.0	0.8	4.5	0.8	4.2	-46.3			108.6
Effective Tax Rate (%)	0	0	0	0	0	0	%	%		%	%	%	%	%	%	%	%	%

Income Statement	FY21	FY22	FY23	1Q24	2Q24	FY24
Combined Revenue	3,933.5	6,474.7	8,768.0	2,357.4	2,240.8	8,320.9
COGS	2,008.1	2,911.0	5,230.0	1,367.5	1,221.7
Gross Profit	1,925.4	3,563.6	3,538.1	989.8	1,019.1	3,154.6
Administration Exp.	65.6	125.2	166.3	38.8	24.1
Selling & Distribution Exp.	0.0	0.0	79.0	43.9	42.4
Depreciation	185.3	192.9	194.7	100.0	97.2	203.1
7. Amortisation
Other Operating Expenses	12.1	15.0	-167.3	0.0	0.0	nan
Operating Income	1,818.1	3,346.8	2,930.7	809.3	906.6	2,660.7
Interest Expenses	82.0	69.8	116.2			78.6
Interest Income	15.5	54.8	138.9	42.2	39.8
Other (Expenses)/Income	0.0	0.0	0.0	0.0	0.0	nan
Profit Before Tax	1,751.7	3,331.8	2,953.5	833.8	926.4	2,765.8
Tax Expenses	92.7	-126.0	621.7	0.0	0.0
Profit After Tax	1,662.8	3,457.8	2,331.8	750.9	878.4
Other	0.0	0.0	0.0	0.0	0.0	nan
Net Income	1,662.8	3,457.8	2,331.8	750.9	878.4

Cash Flow Statement	Forecast Ref.	FY21	FY22	FY23	1Q24	2Q24	4Q24E	FY24	FY25E
Profit Before Tax	From IS	1,751.7	3,331.8	2,953.5	833.8	926.4		2,765.8
Depreciation	From OA 1.1	185.3	192.9	194.7	100.0	97.2		203.1
Change in Working Capital	From OA 2	98.6	95.0	-637.3	223.3	-173.8		686.7
Income Tax Paid	From OA 5	108.3	0.0	109.5	0.3	50.5		144.8
Other		209.1	173.1	309.1	9.3	12.8		245.5
Net Cash Flow from / (used in) Operating Activities		2,152.6	3,810.6	2,730.4	1,166.1	812.1		3,785.7
Capital Expenditure	From CA 4	146.6	425.3	354.0	35.7	31.9		289.6
Other		-171.3	-584.8	321.0	-43.1	-538.2		-1,189.4
Cash Flows from Investing Activities		-321.9	-1,025.7	-59.9	-78.8	-570.1		-1,491.5
Borrowings		247.9	0.0	0.0	100.0	0.0		154.9
Debt Repayments		413.9	410.2	410.2	3.0	39.2		28.8
10. Lease Additions
Lease Repayments		37.1	43.5	43.5	15.3	-15.3		61.3
Other		-1,219.9	-1,473.8	-2,846.3	0.0	-813.2		-2,439.7
Net Cash flows from / (used in) Financing Activities		-1,423.0	-1,740.2	-3,300.0	81.6<	-837.1		-2,374.9
Other		0.0	0.0	0.0	0.0	0.0		0.0
Net Increase/(Decrease) in Cash and Cash Equivalents		407.7	1,044.7	-629.5	1,168.9	-595.1		-80.8
Balance adjustments as per company		25.7	0.0	59.4	-2.9	64.3		80.6
Cash and CE at Start		-25.4	382.3	1,427.0	797.5	1,963.7	4Q	797.5	716.8
Cash and CE at End		382.3	1,427.0	797.5	1,966.5			716.8

Balance Sheet	Notes	FY21	FY22	FY23	1Q24	2Q24	3Q24E	4Q24E	FY24	1Q25E	2Q25E	3Q25E	4Q25E	FY25E	FY26E	FY27E	FY28E	FY29E
Assets
Property Plant and Equipment - Net Book value	From OA 1	2,110.0	2,342.4	2,483.3	2,469.3	2,452.7			2,555.9
2. Right-of-use assets		2,710.0	2,699.0	2,566.3	2,532.6	2,498.9	2,391.0	2,391.0	2,423.0	2,391.0	2,391.0	2,391.0	2,391.0	2,391.0	2,391.0	2,391.0	2,391.0	2,391.0
3. Intangible assets		149.7	72.3	53.3	44.5	44.8	18.6	18.6	51.4	18.6	18.6	18.6	18.6	18.6	18.6	18.6	18.6	18.6
4. Investment in an associate		19.2	28.3	47.4	49.6	52.3	46.4	46.4	48.1	46.4	46.4	46.4	46.4	46.4	46.4	46.4	46.4	46.4
5. Other financial assets		238.9	236.0	243.9	375.2	372.5	434.8	nan	359.9	nan	nan	nan	nan	nan	nan	nan	nan	nan
6. Deferred income tax assets		32.9	33.8	44.3	44.3	44.3	70.1	70.1	70.1	70.1	70.1	70.1	70.1	70.1	70.1	70.1	70.1	70.1
Other		749.3	943.2	893.1	934.4	967.8	1,182.5	1,182.5	1,165.6	1,182.5	1,182.5	1,182.5	1,182.5	1,182.5	1,182.5	1,182.5	1,182.5	1,182.5
Non Current Assets		6,009.9	6,354.9	6,331.5	6,449.8	6,433.3			6,674.0
Inventories	From OA 2.2	111.3	245.9	874.6	747.3	670.3			559.8
Trade and Other Receivables	From OA 2.1	292.3	256.3	497.4	363.1	416.5			334.7
Prepayments	From OA 2.3	0.0	0.0	0.0	0.0	0.0			0.0
Other		53.2	71.9	235.3	240.9	411.8	302.9	302.9	102.6	302.9	302.9	302.9	302.9	302.9	302.9	302.9	302.9	302.9
12. Other financial assets		207.5	514.9	4.9	5.3	436.2	1,506.7	1,506.7	924.0	1,506.7	1,506.7	1,506.7	1,506.7	1,506.7	1,506.7	1,506.7	1,506.7	1,506.7
13. Income tax recoverable		15.3	20.7	33.7	33.7	33.7	38.8	38.8	38.8	38.8	38.8	38.8	38.8	38.8	38.8	38.8	38.8	38.8
Cash and Cash Equivalents	From CFS	408.0	1,427.0	857.0	1,963.5	1,432.8			797.4
Current Assets		1,087.4	2,536.8	2,502.9	3,353.9	3,401.2			2,757.4
Total Assets		7,097.4	8,891.7	8,834.4	9,803.6	9,834.5
Equities and Liabilities
1. Stated capital		511.8	511.8	511.8	511.8	511.8	511.8	511.8	511.8	511.8	511.8	511.8	511.8	511.8	511.8	511.8	511.8	511.8
2. Reserves	5,768.3	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Retained Earnings		4,550.6	6,345.9	5,768.3	5,710.4	6,590.0			5,676.9
Other Adjustments		nan	nan	nan	nan	nan	0.0	nan	nan	nan	nan	nan	nan	nan	nan	nan	nan	nan
Equity attributable to equity holders of parent
5. Non-controlling interest		0.0	241.9	222.8	218.4	217.2	211.3	211.3	208.6	211.3	211.3	211.3	211.3	211.3	211.3	211.3	211.3	211.3
Total Equity		5,062.4	7,099.7	6,503.0	6,440.6	7,319.0			6,397.3
Long Term Debt	From OA 3	372.6	227.5	1.2	64.9	56.3			39.1
Financing and Lease Payables	From OA 4	250.3	256.4	274.0	410.2	409.9			404.8
Deferred tax liability		431.6	316.9	805.5	813.6	825.5	985.7	985.7	978.4	985.7	985.7	985.7	985.7	985.7	985.7	985.7	985.7	985.7
Defined benefit obligations		271.5	212.6	337.4	338.5	331.3	371.4	371.4	370.1	371.4	371.4	371.4	371.4	371.4	371.4	371.4	371.4	371.4
Deferred income and capital grants		92.0	41.4	39.1	38.5	37.9	36.1	36.1	36.7	36.1	36.1	36.1	36.1	36.1	36.1	36.1	36.1	36.1
Non Current Liabilities		1,415.8	1,052.6	1,455.6	1,662.5	1,657.7			1,825.9
Current Maturities of Long Term Debt	Added to LT debt in the forecast	225.1	225.1	1.3	0.0	0.0			89.5
Trade Payables	From OA 2.4	366.3	560.0	808.2	1,583.0	749.7			916.5
13. Amounts due to related parties		nan	nan	nan	34.6	34.6	0.0	0.0	nan	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Income Tax Liabilities	From OA 6	0.0	0.8	4.5	4.2	-46.3			108.6
Other Accruals	From OA 2.5	0	0	0	0	0
Other		0.0	31.3	0.8	0.0	0.0	0.0	0.0	9.7	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Bank Overdraft		25.7	0.0	59.4	0.7	5.6	54.3	nan	80.6	nan	nan	nan	nan	nan	nan	nan	nan	nan
Current Liabilities		619.2	739.5	875.8	1,735.1	892.4			1,208.1
Total Equity and Liabilities		7,097.4	8,891.7	8,834.4	9,838.3	9,869.1			9,431.3

DCF Valuation
Relative Valuation

DCF Enterprise Value

Period	Notes	FY25E
1. EBIT	From FF 6
2. Tax	From OA 4
3. Depreciation	From OA 1
4. Adjustments	User Input
5. Capital Expenditure	From CA 4
6. Changes in Working Capital	From OA 2
7. Free Cash Flow
8. Terminal Value
9. Total Free Cash Flow
10. Discount factor	Calculation
11. Present Value of Free Cash Flows	7*10=11

12. DCF Enterprise Value
13. Net (Debt)/Cash		1,178.3
14. Pension Underfunding	From BS
15. Other	User input cell
14. Adjustment	User Input
15. DCF Valuation - Equity Value
16. Number of Shares		203,308.6
17. Price per Share (Rs.)

Weighted Average Costs of Capital (WACC)

	Symbol		User Input	Reference	Source for Reference
1. Risk Free Rate	Rf		%	18.8%	SL 10yr bond yield
2. Long term cost of debt	Kd		%	25.0%	Weighted avg. int. rate
3. Equity risk premium	Rp		%	10.0%	External Source
4. Beta	B		%	125.0%	CSE
5.Tax Rate	t		%	30.0%	SL tax rate
6. Debt Weighting	Wd		%	50.0%
7. Equity Weighting	We		%	50.0%
8. Cost of Equity	Ke	1+(3*4)=8		25.0%
9. WACC	Dr	(6(2(1-5)))+(7*8)=9		21.0%
10. Terminal Growth Rate			%	5.0%

	Notes	Price to Earnings	Price to Book Value	Price to Sales
1. Earnings/Book Value/Sales			6,397.3
2. Adjusted Multiple
3. Valuation (Rs. Millions)	1*2=3
4. Number of Shares (Millions)		203,308.6	203,308.6	203,308.6
5. Price per Share(Rs.)

Peer Multiples	Notes		Price to Earnings		Price to Book Value		Price to Sales





Average
Adjustment
Adjusted Multiple

Date	Research Organisation	Recommendation	Target Price (Rs.)
0	235.995	0	0

Valuation

DCF Enterprise Value

Weighted Average Costs of Capital (WACC)

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Period		3Q24E	4Q24E	FY24E	1Q25E	2Q25E	3Q25E	4Q25E	FY25E	FY26E	FY27E	FY28E	FY29E
Revenue
YoY %
EBITDA
EBITDA Margin %
Net Profit
Net Profit Margin %
Free Cash Flow

Valuation		Rs.Million	Price per Share (Rs.)	Share	Adjusted Valuation
DCF Valuation				%
Price to Earnings				%
Price to Book Value				%
Price to Sales				%
EV to EBITDA				%
Blended Valuation (Rs.)