Kesar Petroprod

This excel sheet is for sole use of the buyer from drvijaymalik.com. Any copying and sharing of this excel sheet is prohibited. Steps to use this excel sheet: 1 Download and save the "Dr. "Dr. Vijay Malik Screener Excel Template" fle on yor compter ! lo in to screener.in we#site with yor ser name and password $ %&er loin in screener.in' screener.in' copy and paste the (ollowin link in the we#)#rowser and pload this excel sheet on this pae.  h&ps:''(((.screener.in'excel' To pload' once yo have reached the a#ove we#pae' click on the #0on "hoose 2ile". % new dialoe #ox window will open. 3n the new window' window' naviate to the (older where yo have saved the "Dr. Vijay Malik Screener Excel Template". Template". Select the fle and c lick open in t he dialoe #ox. %&er clickin "4pen" the dialoe #ox will close and yo wold see the a#rided path o( the selected fle next to the # 0on "hoose 2ile". 5ow' click on the #0on "6pload" to fnally pload the excel template in the screener system. * Done+ , 5ow onwards' whenever yo wold click on export to excel #0on on the company pae at screener we#site' yo wold et the data in this excel sheet (ormat and yo can analyse the stocks within a (ew mintes #y analysin the data on the )*r. +ijay !alik Analysis)  sheet.

Changes required in Sengs in !icroso" #xcel:

1

$n #xcel go to ,ile - p%ons - Trust Center - Trust Center Sengs - /rotected +ie(0 and then uncheck #nabled /rotected +ie( for 1les origina%ng from the $nternet. ther(ise0 (hen you (ould do(nload )#xport to #xcel) 1le of companies from screener.in0 the *ata sheet (ould be 1lled properly but )*r +ijay !alik Analysis) (orksheet (ould remain blank.

Target Company:

The aim o( the analysis is to fnd a de#t (ree company' company' which is rowin at a reasona#le pace with sstained/improvin sstained/improvin profta#ility marins' which has #een showin improvement in opera-n e7ciency and has #een enera-n posi-ve 2ree ash 2low over the years. 3( an investor is a#le to fnd sch a company that is availa#le at a cheap price 8/E ra-o 9 1:;' then investment in sch a company has a hih pro#a#ility o( crea-n wealth (or the shareholders.

$nstruc%ons: 1 Detailed interpreta-ons interpreta-ons and descrip-ons o( each o( the parameters sed (or analysis on "Dr. Vijay Malik %nalysis" sheet are provided in the "Descrip-on" sheet ! lease read the "Descrip-on" sheet thorohly #e(ore analysin the data o( any company. $ lease do not make any chane to any (ormla/sheet in this excel work#ook. %ny chane miht lead to corrp-on o( the (ormla links and miht lead to erroneos reslts  $nstruc%ons to the buyer:

This prchase is limited to the crrent version o( the excel sheet only. %ny (tre pdates/versions o( the excel sheet need to #e #oht separately. separately. 1

3( in (tre' #ecase o( any reasons' screener chanes the (ormat o( data it provides in the "Data Sheet" or makes this template invalid' then 3 wold not #e a#le to provide resol-on o( the isses in this excel template. 3n sch a scen ario' 3 miht come p with a new version o( the excel template.
! =inks to detailed ar-cles on drvijaymalik.com have #een provided nder each (ormla sement in the "Descrip-on" sheet' wh ich yo may read to learn more a#ot each o ( the analysis parameters. $ 3n case yo have any (rther >ery a&er oin throh the ar-cle links shared in the "Descrip-on" sheet' then yo may ask yor >ery on drvijaymalik.com as a comment to the "%sk ?or @eries" pae. ?o may visit the "% sk ?or @eries" pae on the (ollowin linkA

h&p:''(((.drvijaymalik.com'p'ask2your2queries.html

This excel sheet is for sole use of the buyer from drvijaymalik.com. Any copying and sharing of this excel sheet is prohibited. /arameter

This sheet consi sts of interpreta%on and des crip%on of various parameters use d in the sheet )*r. +ijay !alik Analysis) $nterpreta%on *escrip%on /ro" 3 4oss Statement Analysis

Sales


4pera-n roft


4p era-n rof t Marin 84M;

2ocs on th e t rend o( 4M over the years. $f /! h as been 9uctua%ng a lot over t he years in a cyclical manner0 then it means that the company does not have pricing po(er over i ts customers and is not able to pass on increase in ra( material costs to them.

Bepresents the opera-n income (or the company in a i ven fnancial year. The condi-onal (ormaLn hihlihts the years where sales increased (rom previos year as "Hreen" and years where sales decreased (rom previos year as "Bed" 3t represents EC3TD% ) 5on 4pera-n 3ncome. EC3 TD% G Earnins # e(ore 3nterest' Tax' Deprecia-on  %mor-Na-on.


n the contrary0 if /! is stable'improving over the years0 then it means that the company has sustainable advantages !AT; and is able to pass G 4pera-n roft/Sales. on the increase in ra( material costs to its buyers to p rotect its margins The condi-onal (ormaLn hihlihts the years where 4M increased (rom previos year as "Hreen" and years where 4M decreased (rom previos year as "Bed"

4ther 3ncome

ompare other income with the cash  3nvestments held #y the company. 3( the non opera-n income is not e>al to atleast the #ank 2D retrn on the cash  inve stments' then the investor shold analyse it deeper to see where the cash has #een invested #y the co mpany' which is not yi eldin atleast #ank 2D r etrn.

3nterest

Do not et inKenced #y a low interest expense. %lways try to fnd o t whether c ompany has #een ca pitaliNin the interest cost. Simple method is to ml-ply total de#t with a n assmed interest rate and then fnd ot th e total int erest oto as has #een explained in the cal cla-on o( interest coverae #elow.

roft #e(ore tax 8CT; Tax

Bepresents the non o pera-n in come (or the fnanci al year

Bepresents the interest amont expensed #y the company in a fnancial year Bepresents the proft #e(ore tax 8CT; (or the fnancial year

Tax payot ra-o shold #e near the standard corporate tax rate in 3ndia i .e. a#ot $:)$$. 3( the tax payot ra-o is low' t hen invetsor shold try to fnd GTax/Sales. Bepresents the tax payot o( the company (or the fnancial year. ot i( the company has any tax incen-ves like a nit opera-n o t o( The condi-onal (ormaLn hihlihts the years where Tax  i s I!P., as "Hreen" and years where Tax special economic None 8SEO; etc.  is 9!P., as "Bed" Bepresents the net proft reported #y the company (or the fnancial year

5 et p ro ft a&er tax 8%T;


5et rof t Marin 85M;

Ce wary o( companies' which show hih sales rowth with declinin/ not G%T/Sales. improvin 5M. ompanies' which chase rowth at the cost o( profta#ility sally do not create sstaina#le wealth (or shareholders The condi-onal (ormaLn hihlihts the years where 5M increased (rom previos year as "Hreen" and years where 5M decreased (rom previos year as "Bed"


5ou may read m ore abo ut the /ro1t and 4os s statem ent analysi s in the follo (ing ar%cle:
ash (rom 4p era-n %c-vi ty 824;


apex 85 2%F3 chaneDep;

%n investor shold always compare apex with 24 to see whether the company is a#le to (nd its capital expansion throh its opera-n cash Kow ompanies that show hih sales rowt h with ot mc h capex have the poten-al o ( trnin ot to #e ood i nvestments.

Bepresents the capital exp endit re done #y the company in a fnanci al year. apex G Deprecia-on  3ncrease in 852%F3; over the year. The condi-onal (ormaLn hihlihts the years where apex is less than 24 as "Hreen" and years where apex is hiher than 24 as "Bed"

=ower the de#t' the #e0er. Total De#t 8D;

ash  3nvestments 83 53;

22 82ree ash 2low;

De#t re presents the excess (nds sed #y the company than what it is enera-n (rom its opera-ons. 3t is like livin #eyond yor means. Very hih cash levels in companies' which do not payot dividends shold #e looked wi th ca-on. 3 t miht #e that the cash shown on th e #alance sheet is fc--os.

Bepresents the total de#t o( the company at the fnancia l year endin date. The condi-onal (ormaLn hihlihts the years where total de#t decreased (rom previos year as "Hreen" and years where total de#t inc reased (rom previos year as "Bed" Gash  e>ivalesnt  rrent 3nvestment s  5on rrent 3 nvestments held #y t he company at the end o( the fnancial years

2ree cash Kow is the most important parameter o( the company analysis. 3t is like the discre-onary srpls that the company makes' which can #e distri#ted to reward the shareholders.

$ believe that if a company is not able to generate ,C,0 then it should be avoided by investors0 ho(ever good its sales gro(th and pro1tability margins be. 22G24 ) apex. Bepresents total dividend paid #y the company over last 1: years

Total Di v 1 : ?rs ash3nvestments

Very hih cash levels in companies' which do not payot dividends shold #e looked wi th ca-on. 3 t miht #e that the cash shown on th e #alance sheet is fc--os.

Bepresents the cash  e>ivalent s  rrent 3nvestment  5on rrent 3 nvestment held #y the company at the end o( latest fnancial ye ar

$deally the ,C, generated by the company should be more or less similar to the sum of dividends paid out and the cash=investments held. $f there is a signi1cant di>erence in ,C, and *iv=cash=$nvestment0 then t he investor should do further analysis to see the usage'source s of cash Bepresents the propor-on o( 24' which has #ecome availa#le as (ree cash Kow 822; to the shareholders in last 1: years.

22/24

irements' which is a the # e0er. (eatre to iden-(y cash cows.

GSales Hrowth over last 1: years/propor-on o( 24 sed as apital Expenditre SH to apex

This is another parameter that 3 se to iden-(y companies where low amont o( capital expenditre 8apex; lead to ood sales rowth. irements.

5ou may read m ore about the ,ree Cash ,lo( analysis in the follo(ing ar%cle : ? Simple @ays to Asses s !argin of Safety (hi le buying stocks 6eturn 6a%os

Sel()Sstaina#le Hrowth Bate 8SSHB;

SSHB hiher than the sales rowth rate is desira#le.

 CT/%v. 5 2% 891 :' I! ,;


Bepresents the de#t)(ree sel( sstaina#le rowth rate poten-al o( a company. 3t has #een o#served that companies rowin at a h iher rate than SSHB are sin more resorces than their inherent opera-ons can prodce and there(ore' witness increasin de#t l evels. Similarly' the companies that are rowin at a rate less than or e>al to SSHB are a#le to sstain their rowth rates withot raisin de#t/see declinin de#t levels. 3t is to #e kept in mind t hat SSHB does not take into accont the (nds eLn #locked or released (rom workin capital ?o may read more a#ot SSHB in the (ollowin ar-cleA h0pA/ /www.drvij aymalik. com /! :1 ,/ :Q /sel()sstaina#le)rowth)rate)measre)o(.html

GCT/averae o( 5et 2ixed %ssets at the start and the end o( the fnancial year The condi-onal (ormaLn hihlihts the years where CT/52% is I !, as "Hreen" and years where CT/52% is 91: as "Bed". T his is to hihliht that i( a company is not a#le to earn at least 1: or Cank 2D rate (rom its fxed assets' then it shold ideally sell all its assets and pt the amont in a #ank fxed deposit and earn hiher retrn withot takin the pains o( rnnin a #siness.

ity 89J'I!, ;

ity at the start and the end o( t he fnanical year. *ebt'#quity. The condi-onal (ormaLn hihlihts the years where B4E is I !, as "Hreen" and years where B4E is 9Jas "Bed". This is to hihliht that i( a c ompany is not a#le to earn at least J post tax (rom its e>ity or shareholdersR (nds' then it shold ideally pt its en-re e>ity in a #ank fxed deposit and earn hiher retrn withot takin the pains o( rnnin a #siness. 3n sch companies hih le verae is the reason (or hih B4E' which is not sstaina#le

GEC3T/averae o( total assets at the start and the end o( the fnancial year. EC3T G Earnins #e(ore 3nterest and Tax.

B4E 8EC3T on %v E/T%; 891:'I$,;


3ncremental B4E $?r Bollin

3deally' incremental B4E $ years ro llin shold #e sta#le or improvin.

5et 2ixed %sset Trnover 8
GSales/averae o( net fxed assets at the start and end o( a fnanci al year. ire to do a lot o( capex; and years where 52%T decreas ed (rom previ os year as "Bed"

The condi-onal (ormaLn hihlihts the years where B4E is I $, as "Hreen" and years where B4E is 91: as "Bed". This is to hihliht that i( a company is not a#le to earn at least J pre)tax B4E (rom its assets' then it shold ideally pt its en-re assets in a #ank fxed deposit and earn hiher retrn withot takin the pains o( rnnin a #siness.

Bepresents the incremental retrns/profts enerat ed #y the e arnin s retained #y the company over any consec-ve three years period. Bepresents the e7ciency o( -liNa-on o( incremental money #ein deployed #y the company manaement in its o pera-ons. The condi-onal (ormaLn hihlihts the years where incremental B4E increased (rom the previos period as "Hreen" and years where incremental B4E decreased (rom previos years as "Bed"

pera%ng #7ci en cy 6a%os


Beceiva#les days 8=ow is #e0er;

=ower the receiva#les days' the #e0er. 3t means that the company is not ivin hiher credit period to cstomers to enerate sales.

$n case of 1c%%ous sales (here cash is not received from customers0 the company (ill see increasing receivables days.

G$Q,/8Sales/averae o( accont receiva#les at the start and end o( the fnancial year; The condi-onal (ormaLn hihlihts the years where receiva#les days decreased (rom previos year as "Hreen" and years where receiva#les days increased (rom previos year as "Bed"


4o(er i nventory turnover means that the company is accumula%ng a lot of inventory0 (hich might become obsolete later. $n the extreme cases0 the inventory being sho(n might be 1c%%ous and may be an indicator of underlying fraud.

GSales/averae o( inventory at the start and the end o( the fnancial year The condi-onal (ormaLn hihlihts the years where inventory trnover increased (rom previos year as "Hreen" and years where i nvenotry trnover decreased (rom previos year as "Bed"

5ou may read m ore about the assessm ent of ope ra%ng e7cie ncy of a company in the foll o(ing ar%cle :
5et 2ixed %ssets 852%;

apital Fork in roress 8F3;

3ncrease in 52% means that the company has done capaci ty addi-on' which Bepresents the net fxed asset s o( the company a&er (actorin in the accmlated deprecia-on at the shold lead to hiher sales/income in (tre. end o( a fnancia l year 3ncrease in F3 means that th e company is c rrent ly exec-n any project/capacity expans ion. 4nce the nderconstrc-on project is complete' it is shi&ed (rom F3 to Bepresents the capital work in proress 8F3; o( the company at the end o( a fnancial year. F3 sally shows the projects nder exec-on #y the company. 4nce the projects et completed and 52%. #ecome opera-onal' they are shi&ed (r om F3 to th e fxed assets 852%;.

ideally' share cap-al shold #e constant or decrease de to #y #ack. Share apital

3ncrease in share cap-al over the years' which is not de to #ons shares' represents dil-on o( stake o( exis-n shareholders.

Bepresents the issed and paid p share capital o( th e compa ny at the end o( fnancial year. apital increases de to either #y raisin (rther e>ity #y the co mpany or #y issance o( #ons shares. apital is decreased in cases o( share #y#ack #y the company. The condi-onal (ormaLn hihlihts the years where Share apital decreased (rom previos year as "Hreen" and years where Share apital increased (rom previos year as "Bed"

Dividend aid 8Div; Fithot DDT

% company' which enerates 22 shold pay dividends to shareholders to share the (r its o( rowth with the shareholders.

Dividend ayot 8Div/%T;

1. a sta#le dividend policy. !. is interested in sharin hiher rewards o( the rowth with shareholders with hiher rowth in #siness

Betained Earni ns 8BEG%T)Di v;

mla-ve retained earnins shold #e compared wit h cmla-ve increase in market capitaliNa-on over the years.

rice to earnin

=ower the /E ra-o' the #e0er.

Mcap


ash  3nvestments 83 53;

Very hih cash levels in companies' which do not payot dividends shold #e looked wi th ca-on. 3 t miht #e that the cash shown on th e #alance sheet is fc--os.

Bepresents the dividend paid #y the company in a fnancial ye ar. The dividend shown here does not inclde the dividend distri#-on tax 8DDT;. The condi-onal (ormaLn hihlihts the years where Dividend i ncreased (r om previos year a s "Hreen" and years where Dividend decreased (r om previos year a s "Bed"

its ood i( the dividend payot ra-o is constant or improvin. 3t means th at the company (ollowsA GDividend paid/net proft a&er tax. This criter ia helps in iden-fca-on o( any sta#le dividend payot policy' i( it is #ein (ollowed #y the company (or payin dividend year on year

G5et proft a&er tax ) Dividend ayot mla-ve retained earnins o ( last 1: years are compared with the increase in market capitaliNa-on o( the company over last 1: years to see whether the company has created atleast e>al wealth (or its shareholders than the earnins that has #een retained #y it over last 1: years. 3t helps in iden-(yin companies which have enerated wealth (or shareholders (rom those companies which have destroyed wealth (or shareholders. G Share market price/earnins per share (or the period /E ra-o is an important criter ia to arrive at vala-on levels o( any companyRs stock =ower the crrent market cap' the #e0er.

mla-ve retained earnins shold #e compared wit h cmla-ve increase in market capitaliNa-on over the years.

Bepresents the market capitaliNa-on o( a company (or the fnancial year. The share price taken here is the averae price (or the month o( april o( each fnancial year. Bepresents the cash  e>ivalent s  rrent 3nvestment  5on rrent 3 nvestment held #y the company at the end o( latest fnancial ye ar

=ower the de#t' the #e0er. Total De#t 8D;

Total E>ity 8E;

De#t re presents the excess (nds sed #y the company than what it is enera-n (rom its opera-ons. 3t is like livin #eyond yor means. ompare the increase in e>ity with the retained earnins (or the year. They shold ideally #e the same.

Bepresents the total de#t o( the company at the fnancia l year endin date. The condi-onal (ormaLn hihlihts the years where total de#t decreased (rom previos year as "Hreen" and years where total de#t inc reased (rom previos year as "Bed" Bepresents the total shareholdersR (nds invested in the company at the end o( fnanci al year. 3t incldes paid p capital and reserves incldin retained earnins.

lower the de#t to e>ity ra-o' the #e0er.

De#t to E> ity ra-o 8D/E;


GTotal De#t/Total E>ity 3t represents t he extent o( lever ae that a company has in its capital st rctre.
3t is a manal entry feld provided (or the investors to pt in the assmed cost o( de#t 83 nterest rate;' which the investor #elieves that lenders wold #e charin to the company (or their loans.

ost o( (nds

The de(alt vale is 1!. The investor can chane the vale to her pre(erence.

3nterest oto 8Bs. r.;

l ower the i nterest oto the #e0er.

3nterest overae 84/3nt. 4t;


Gost o( (nds8averae o( total de#t at th e start and end o( the fnancial yea r;. The interest oto' calclated on total de#t' takes care o( the int erest that has #een capitaliNed #y the company and there(ore' has not #ee n shown as interest expense in the = statement. G4pera-n proft/interest oto 3t represents t he servicin a#ility o( the company (or the total interest oto o( the company' incldin = and capitaliNed interest.

5ou may read m ore about the 8alance She et Analysis of a Company in the foll o(ing ar%cle :
ash (rom 4p era-n %c-vi ty 824;


ash (rom 3nves-n %c-vity 823;

3( hiher olow in 23' then read the annal report to fnd ot whether the same is (or capex or ot her i nvestments

ash (rom 2inancin %c-vity 822;

ontains de#t repayments' interest payments' dividend payments

5et ash 2low 8242322;

Bepresents the 23 (or the fnancial year as reported #y the company in its cash Kow statements. Bepresents the 22 (or the fnancial year as reported #y the company in its cash Kow statements.

net cash made/consmed #y the company in a year. The hiher the net cash Kow the #e0er

Bepresents the 5et cash inKow/olow 8242322; (or the fnancial year et reported#y t he company in its net Kow statements.