Segment Count
Income Statement 32
Balance Sheet 74
Cash Flow 40
Scenerio Analysis 65
Ratio Analysis 37
WACC 23
Discounted Cash Flow 50
Financial Dashboard 25
Branch and Factories Dashboard 18
Shareholding pattern and Debt/Equtiy 36

Income Statement
Amount (in Rs Crores)
Particulars 2018A 2019A 2020A 2021A 2022E 2023E 2024E 2025E
Revenue from Operations 11,292 12,369 13,350 14,709 16,197 17,835 19,639 21,625
Manufacturing Expenses 344 341 314 409 443 488 537 591
Material Consumed 4,644 5,277 5,729 6,381 6,887 7,584 8,351 9,195
Employee Benefit Expenses 1,124 1,258 1,501 1,521 1,689 1,860 2,048 2,255
Selling Expenses 729 785 764 764 960 1,058 1,165 1,282
Administrative Expenses 1,833 1,782 1,841 2,042 2,361 2,600 2,863 3,153
Operating Profit 2,618 2,926 3,201 3,592 3,856 4,246 4,676 5,149
Other Income 259 247 146 120 115 110 105 101
EBITDA 2,877 3,173 3,347 3,712 3,971 4,356 4,781 5,250
Depreciation and Amortisation 336 370 370 390 345 380 419 461
EBIT 2,541 2,803 2,977 3,322 3,626 3,976 4,362 4,788
Interest 112 129 164 201 217 234 253 273
EBT (Earning Before Taxes) 2,429 2,674 2,813 3,121 3,409 3,742 4,109 4,515
Exceptional Items - - - 236 - - - -
Taxes 822 705 730 739 1,023 1,122 1,233 1,354
EAT (Earning After Taxes) 1,607 1,969 2,083 2,146 2,386 2,619 2,876 3,160
Assumptions
Revenue Growth Rate % 10% 10% 10% 10% 10%
Manufacturing Expenses % of Revenue 3% 3% 3% 3% 3%
Material Consumed % of Revenue 43% 43% 43% 43% 43%
Employee Benefit Expenses % of Revenue 10% 10% 10% 10% 10%
Selling Expenses % of Revenue 6% 6% 6% 6% 6%
Administrative Expenses % of Revenue 15% 15% 15% 15% 15%
Other Income Growth % -4% -4% -4% -4% -4%
Depreciation and Amortisation % of Fixed Assets 10% 10% 10% 10% 10%
Interest % of Lease liability 8% 8% 8% 8% 8%
Taxes 30% 30% 30% 30% 30%
Actuals Estimates

Balance Sheet Amount (in Rs Crores)
Particulars 2,018 2,019 2,020 2,021 2,022 2,023 2,024 2,025
Non Current Assets
Property/Plant/Equipment - Gross 3,485 3,719 3,998 5,117 3,458 3,808 4,193 4,617
(-) Accumulated Depreciation 1,085 1,377 1,819 2,123 345 380 419 461
Property/Plant/Equipment - Net 2,401 2,341 2,179 2,994 3,112 3,427 3,774 4,156
Capital Work in Progress 105 143 639 246 346 381 420 462
Long Term Investments 733 744 741 711 705 699 692 685
Long Term Receivable 43 47 47 49 51 53 54 56
Deferred Tax Assets (net) - - 20 26 12 12 12 12
Other Long Term Assets 69 80 89 1,445 476 524 577 635
Total Non Currents Assets 3,351 3,355 3,715 5,471 4,702 5,095 5,529 6,007
Current Assets
Inventory 977 1,290 1,433 1,596 1,645 1,811 1,994 2,196
Net Trade Receivables 211 198 232 294 292 321 354 390
Cash 1,599 1,293 1,755 719 1,727 1,901 2,094 2,305
Short Term Investments 1,925 1,007 723 63 131 144 159 175
Other Current Assets 24 28 43 67 49 54 60 66
Total Current Assets 4,736 3,817 4,185 2,739 3,843 4,232 4,660 5,131
Total Assets 8,088 7,172 7,900 8,210 8,546 9,328 10,189 11,138
Equity Shareholder's Funds
Equity Share Capital 96 96 96 96 96 96 96 96
Reserves & Surplus 3,577 1,822 1,923 1,988 1,633 1,728 1,835 1,952
Net Worth 3,673 1,918 2,019 2,084 1,729 1,825 1,931 2,049
Non Current Liabilities
Long Term Debt 35 53 32 27 47 52 57 63
Capital Lease Obligations - 90 66 190 136 149 164 181
Deferred Income Tax liability 59 13 - - 36 36 36 36
Other Liabilities 2,465 2,907 3,290 3,305 3,744 4,122 4,539 4,998
Total Non Current Liabilities 2,559 3,064 3,388 3,522 3,962 4,359 4,797 5,278
Current Liabilites
Accounts Payable 1,240 1,492 1,517 1,735 1,870 2,060 2,268 2,497
Accrued Expenses 138 185 235 218 241 266 293 322
Current Port. of LT Debt/Capital Leases - 46 50 48 44 48 53 58
Other Current liabilities 477 468 691 602 699 770 848 934
Total Current Liabilities 1,855 2,191 2,493 2,603 2,855 3,143 3,461 3,811
Total Liabilities and Shareholders' Equity 8,088 7,172 7,900 8,210 8,546 9,328 10,189 11,138
Actuals Estimates

Assumptions
Particulars 2018A 2019A 2020A 2021A 2022E 2023E 2024E 2025E Notes to information
Property/Plant/Equipment - Gross 2,401 2,341 2,179 2,994 3,112 3,427 3,774 4,156
% of Revenue 21% 19% 16% 20% 19% 19% 19% 19% Last 4 years Average
Capital Work in Progress 105 143 639 246 346 381 420 462
% of Revenue 1% 1% 5% 2% 2% 2% 2% 2% Last 4 years Average
Long Term Investments 733 744 741 711 705 699 692 685
Y-O-Y- Growth % - 1% 0% -4% -1% -1% -1% -1% Last 4 years Average % of growth
Long Term Receivable 43 47 47 49 51 53 54 56
Y-O-Y- Growth % - 9% -1% 5% 3% 3% 3% 3% Last 4 years Average % of growth
Other Long Term Assets 69 80 89 1,445 476 524 577 635
% of Revenue 1% 1% 1% 10% 3% 3% 3% 3% Last 4 years Average
Inventory 977 1,290 1,433 1,596 1645 1811 1994 2196
Days Inventory 77 89 91 91 87 87 87 87 Last 4 years Average
Total Net Trade Receivables 211 198 232 294 292 321 354 390
Days Receivables 7 6 6 7 7 7 7 7 Last 4 years Average
Cash 1,599 1,293 1,755 719 1,727 1,901 2,094 2,305
% of Revenue 14% 10% 13% 5% 11% 11% 11% 11% Last 4 years Average
Short Term Investment 1,925 1,007 723 63 131 144 159 175
% of Revenue 17% 8% 5% 0% 8% 8% 8% 8% Last 4 years Average
Other Current Assets 24 28 43 67 49 54 60 66
% of Revenue 0.2% 0.2% 0.3% 0.5% 0.3% 0.3% 0.3% 0.3% Last 4 years Average
Long Term Debt 35 53 32 27 47 52 57 63
% of Revenue 0% 0% 0% 0% 0.3% 0.3% 0.3% 0.3% Last 4 years Average
Capital Lease Obligations - 90 66 190 136 149 164 181

% of Revenue 0.7% 0.5% 1.3% 0.8% 0.8% 0.8% 0.8% Last 4 years Average
Other Liabilities 2,465 2,907 3,290 3,305 3,744 4,122 4,539 4,998
% of Revenue 22% 24% 25% 22% 23.1% 23.1% 23.1% 23.1% Last 4 years Average
Accounts Payable 1,240 1,492 1,517 1,735 1870 2060 2268 2497
Days Payables 97 103 97 99 99 99 99 99 Last 4 years Average
Accrued Expenses 138 185 235 218 241 266 293 322
% of Revenue 1% 1% 2% 1% 1% 1% 1% 1% Last 4 years Average
Current Port. of LT Debt/Capital Leases - 46 50 48 44 48 53 58
% of Revenue - 0.4% 0.4% 0.3% 0.3% 0.3% 0.3% 0.3% Last 4 years Average
Other Current liabilities 477 468 691 602 699 770 848 934
% of Revenue 4% 4% 5% 4% 4% 4% 4% 4% Last 4 years Average

Cash Flow Statement Amount (in Rs Crores)
Particulars 2018A 2019A 2020A 2021A 2022E 2023E 2024E 2025E
Cash From Operating Activities
Profit Before Tax 2,429 2,673 2,813 2,884 3,409 3,742 4,109 4,515
Adjustments:
Depreciation and Amortisation 336 370 370 390 345 380 419 461
Non-Cash Items (244) (239) (122) (122) (130) (139) (149) (403)
Changes in Working Capital 413 163 97 (152) 853 100 110 121
Income taxes paid (net of refunds) (881) (673) (703) (729) (780) (834) (893) (955)
Net Cash Generated From Operating Activities 2,052 2,295 2,454 2,271 3,697 3,248 3,596 3,739
Cash From Investing Activities
Capital Expenditures (166) (155) (478) (735) (464) (695) (766) (843)
Other Investing Cash Flow Items 114 238 157 (1,222) (230) (340) (594) (636)
Net Cash Generated From Investing Activities (52) 83 (321) (1,957) (694) (1,035) (1,360) (1,479)
Cash From Financing Activities
Payment of deferred VAT liabilities under state
government schemes - 18 3 (3) - - - -
Cash Dividends Paid (1,090) (2,950) (1,890) (1,928) (1,928) (1,928) (1,928) (1,928)
Interest on lease liabilities - (9) (1) (1) (1) (1) (1) (1)
Interest on bank overdraft (4) (2) (9) (8) (8) (8) (8) (8)
Prinicipal payment of lease liabilities - (52) (60) (78) (82) (86) (90) (95)
Other Financing Cash Flow Items (224) (606) 0 0 0 0 0 0
Net Cash Generated From Financing Activities (1,317) (3,602) (1,956) (2,019) (2,019) (2,023) (2,028) (2,032)
Foreign Exchange Effects - - - - - - - -
Net Change in Cash 683 (1,223) 177 (1,704) 984 190 209 229
Beginning Cash and Cash Equivalent 2,841 3,524 2,301 2,478 773 1,858 2,046 2,253
Closing Cash Cash and Cash Equivalent 3,524 2,301 2,478 773 1,858 2,046 2,253 2,480
Actuals Estimates

Ratio Analysis
Particulars 2018A 2019A 2020A 2021A Sparklines Trend
Liquidity Ratios 2018 2019 2020 2021
Current Ratio (X) Current Assets/Current Liabilities 2.55 1.74 1.68 1.05
Quick Ratio (X) Quick Aseets/Current Liabilities 2.03 1.16 1.11 0.45
Debt to Equity (x) Long term Debt/Shareholders Equity Fund 0.01 0.03 0.02 0.02
Interest Coverage Ratios (X) EBIT/Interest 22.7 21.71 20.39 18.45
Efficiency/Activity Ratios
Asset Turnover Ratio (%) Total Sales /Total Assets 139.61 172.43 1.77 1.83
Inventory Turnover Ratio (X) COGS/Average Inventory 11.7 9.64 4.11 4.11
Profitability Ratios
EBITDA Margin (%) EBITDA/Sales*100 25.47 25.65 25.07 25.23
EBIT Margin (%) EBIT/Sales*100 22.5 22.65 22.29 22.58
EBT Margin (%) EBT/Sales*100 21.5 21.61 21.06 19.6
Net Profit Margin (%) EAT/Sales*100 14.23 15.91 15.59 14.58
Return on Networth / Equity (%) PAT/Equity shareholder Funds*100 45.3 70.5 104.5 105.8
Return on Capital Employed (%) PAT/Capital Employed*100 40.76 56.25 55.05 59.24
Return on Assets (%) PAT/Total Assets*100 19.86 27.44 26.36 26.12
Basic EPS (Rs.) Profit available for ESH /No. of Equity share 166.67 204.28 215.98 222.46
Diluted EPS (Rs.) (PAT after diluted adjustment/ Diluted Shares 166.67 204.28 215.98 222.46
Cash EPS (Rs.) Operating Cash Flow / Equity Shares Outstanding 201.47 242.54 254.39 262.92
Book Value / Share (Rs.) Book Value of Assets /No. of Equity share 381.01 199.01 209.43 216.19
Dividend / Share (Rs.) Divident Paid /No. of Equity share 115 342 200 200
Dividend Payout Ratio (%) DPS/EPS*100 68% 150% 91% 90%
Earnings Retention Ratio (%) RPS/EPS*100 32% -50% 9% 10%
Earnings Yield EPS/MPS*100 2% 1% 1% 1%
Valuation Ratios
P/E Ratio MPS/EPS 66.51 72.38 85.15 88.58
Enterprise Value (Cr.) MV of (Equity Shares + Preferred Shares + Debt) +
Minority Interest – Cash and Equivalents
105521 141350 175604 189328
EV/Net Operating Revenue (X) 9.34 11.43 13.15 12.87
EV/EBITDA (X) 36.68 44.55 52.46 51.01
MarketCap/Net Operating Revenue (X) 9.48 11.53 13.28 12.92
Price/BV (X) 29.15 74.32 87.82 91.16
Price/Net Operating Revenue 9.48 11.53 13.28 12.92

Risk Free Rate 7.30% Government security 5.74% GS 2026
Market Return (Nifty) 13.37% Average of last 4 years Nifty Returns
Market Risk Premium 6.07%
Beta 0.26 Information available on Internet
Cost of Equity (Ke) 8.9%
Cost of Debt (kd) 0% Interest free, Payment of deferred VAT liabilities under state government schemes
WACC 8.7% Average of last 4 years of Debt/Equity ratio weightage
Particulars 2018A 2019A 2020A 2021A
Equity Shareholders Funds 3,674 1,919 2,019 2,084
Long Term Borrowing Debt 35 53 32 27
Total 3,709 1,972 2,051 2,112
% of Equity (We) 99% 97% 98% 99%
% of Debt (Wd) 1% 3% 2% 1%
Calculation of Weightage Average Cost of Capital
WACC = Ke* We + Kd* Wd

Discounted Cash Flow
Amount (in Rs Crores)
Particulars 2018A 2019A 2020A 2021A 2022E 2023E 2024E 2025E
Cash Flow From Operating Activities 2,052 2,295 2,454 2,271 3,697 3,248 3,596 3,739
Capital Expenditure (166) (155) (478) (735) (464) (695) (766) (843)
Free Cash Flow to Firm (UFCF) 1,886 2,141 1,976 1,537 3,233 2,553 2,831 2,896
Discount Factor @8.7% 0.92 0.85 0.78 0.72
Discounted Cash Flow (A) 2,974 2,161 2,204 2,075
1,30,633
2,62,588
2,62,588
Discounted Terminal Value (B) 1,88,091
Total Present Value of Firm , C = A+B 1,97,505
Discounted Cash Flow
Market Capitalisation
Enterprise Value (EV/EBITDA)
Assumptions
Discount Rate as per WACC 8.7%
Perputual Growth Rate 7%
EV/EBITDA Multiple 51
Value of Firm
1,97,505
1,89,993
1,89,328
Terminal Value
Actuals Estimates
Terminal Value
By Perputal Growth Calculation
By EV/EVITDA Multiple

Case 1 Best 1 Best
Case 2 Base Best Base
Case 3 Worse Worse
Particulars 2018A 2019A 2020A 2021A 2022E 2023E 2024E 2025E Notes to information
Revenue From Operations 11292 12369 13350 14709 16932 19491 22437 25828
Y-O-Y- Growth % 13% 9.5% 7.9% 10.2% 15% 15% 15% 15%
Best 15% 15% 15% 15% Base Case + 5%
Base 10% 10% 10% 10% Last 4 years Average of revenue growth
Worst 5% 5% 5% 5% Base Case -5%
Other Income 259 247 146 120 117 115 112 110
Y-O-Y- Growth % 46% -4.6% -40.9% -17.8% -2% -2% -2% -2%
Best -2% -2% -2% -2% Base Case + 2%
Base -4% -4% -4% -4% Last 4 years Average of % of Revenue
Worst -6% -9% -9% -9% Base Case -2%
Manufacturing Expenses 344 341 314 409 802 923 1062 1223
% of Revenue 3% 3% 2% 3% 5% 5% 5% 5%
Best 5% 5% 5% 5% Base Case + 2%
Base 3% 3% 3% 3% Last 4 years Avergage of % of Revenue
Worst 1% 1% 1% 1% Base Case -2%
Material Consumed 4,644 5,277 5,729 6,381 9413 13887 20486 30221
% of Revenue 41% 43% 43% 43% 48% 48% 48% 48%
Best 48% 48% 48% 48% Base Case + 2%
Base 43% 43% 43% 43% Last 4 years Avergage of % of Revenue
Worst 38% 38% 38% 38% Base Case -2%
Particulars 2018A 2019A 2020A 2021A 2022E 2023E 2024E 2025E Notes to information
Employee Benefit Expenses 1,124 1,258 1,501 1,521 1756 2026 2339 2700
Selected
Case
Scenerio Analysis

% of Revenue 10% 10% 11% 10% 15% 15% 15% 15%
Best 15% 15% 15% 15% Base Case + 5%
Base 10% 10% 10% 10% Last 4 years Avergage of % of Revenue
Worst 5% 5% 5% 5% Base Case -5%
Selling Expenses 729 785 764 764 848 940 1043 1157
% of Revenue 6% 6% 6% 5% 11% 11% 11% 11%
Best 11% 11% 11% 11% Base Case + 2%
Base 6% 6% 6% 6% Last 4 years Average of % of Revenue
Worst 1% 1% 1% 1% Base Case -2%
Administrative Expenses 1,833 1,782 1,841 2,042 2381 2775 3235 3772
% of Revenue 16% 14% 14% 14% 17% 17% 17% 17%
Best 17% 17% 17% 17% Base Case + 2%
Base 15% 15% 15% 15% Last 4 years Average of % of Revenue
Worst 13% 13% 13% 13% Base Case -2%
Depreciation and Amortisation 336 370 370 390 437 480 529 581
% of Fixed Assets 10% 10% 10% 10% 12% 10% 10% 10%
Best 12% 12% 12% 12% Base Case + 2%
Base 10% 10% 10% 10% Last 4 years Average of % of Revenue
Worst 8% 8% 8% 8% Base Case -2%
Interest 112 129 164 201 221 239 258 279
Interest % of Lease liability 8% 8% 8% 8% 10% 8% 8% 8%
Best 10% 10% 10% 10% Base Case + 2%
Base 8% 8% 8% 8% Last 4 years Average of % of Revenue
Worst 6% 6% 6% 6% Base Case -2%