Industry Multiples in India - Duff & Phelps · 2019-07-22 · Industry Multiples in India -...
Transcript of Industry Multiples in India - Duff & Phelps · 2019-07-22 · Industry Multiples in India -...
F E B R UA RY 2 019 - S I X T H E D I T I O N
Industry Multiples in India
Industry Multiples in India - February 2019 - Sixth Edition
Industry Multiples in India - February 2019 - Sixth Edition
1Duff & Phelps
Foreword
Dear Readers
Wish you a very happy and prosperous new year!
It gives me great pleasure to share the sixth edition of our quarterly report, “Industry
Multiples in India”. This quarter’s report provides trading multiples for various key
industries in India as of December 31, 2018.
Global markets around the world in 2018 have largely been impacted by the trade conflict
between the United States and China, monetary tightening by the U.S. Federal Reserve
(Fed), higher oil prices (though these came down during the last quarter) and geopolitical
snafus like Brexit. Global equity markets posted sharp declines in the quarter ended
December 2018 on persistent concerns over global trade and slowing economic growth.
On the other hand, a divergence was seen in the growth momentum in developed markets
with the U.S. continuing to see steady growth, and EU’s growth momentum starting to
wane. Similarly, China is also witnessing slowdown in GDP growth mainly due to ongoing
trade issues with the U.S. This may also put pressure on China’s trading partners.
Overall, the Indian equity market (S&P BSE 500 Index) has experienced a slight
improvement during this quarter primarily due to sharp decline in crude oil. However, further
upward movement would depend upon oil prices remaining at lower levels and the benefits
of lower oil prices and currency appreciation flowing into corporate earnings.
The P/E multiples of most industries have declined from September 30, 2018 to December
31, 2018. Multiples in financials industry space have improved on account of capital
infusion in public sector banks and improvement in asset quality. Healthcare, Internet and
Software industries experienced a larger decline due to weakening global growth
prospects and U.S. monetary tightening.
Steady Index of Industrial Production (IIP) and PMI data, high credit growth and strong
currency during the month continue to reflect improvement in macro trends. The GDP
growth in the quarter ended September 2018 came in at 7.1% YoY, which was lower than
expectations. However, India continued to be the fastest growing major economy in the
world. While domestic flows have increased in the recent period, the Indian equity markets
are expected to be extremely volatile. This phenomenon can be attributed to the expected
volatility in other global markets including currency markets, and the upcoming Lok Sabha
elections.
Our report details the P/B, P/E, EV/ EBITDA and EV/Sales multiples of companies in the
S&P BSE 500 Index across 22 major industries for which such data is available. We hope
you find this report helpful to get a broad understanding of the trading multiples for major
industries in India. Contact us if you would like to receive further information or wish to
discuss any findings of this analysis.
Varun Gupta
Managing Director and
Asia Pacific Leader for
Valuation Advisory Services
Industry Multiples in India - February 2019 - Sixth Edition
2
1 Foreword
Industry Multiples
4 Consumer Discretionary: Apparel
6 Consumer Discretionary: Auto Parts and Equipment
8 Consumer Discretionary: Household Appliances
10 Electric and Gas Utilities
12 Energy
14 Financials: Banks
16 Financials: Consumer Finance
18 Financials: Specialized Finance
20 Household and Personal Products
22 Industrial Machinery
24 Internet Services and Infrastructure
26 Application Software
28 Materials: Chemicals
30 Materials: Construction and Material
32 Materials: Metals and Mining
34 Pharmaceuticals and Biotechnology
36 Real Estate
38 Other Industries
40 Industry Definitions
42 Contributors
Contents
Duff & Phelps
Industry Multiples in India - February 2019 - Sixth Edition
3Duff & Phelps Duff & Phelps
Industry EV/Sales EV/EBITDA P/E P/B
Consumer Discretionary : Apparel 2.3 20.1 44.5 4.3
Consumer Discretionary : Auto Parts and Equipment 1.7 12.9 25.1 4.4
Consumer Discretionary : Household Appliances 2.7 25.3 45.7 8.5
Electric and Gas Utilities 2.2 9.9 15.1 1.9
Energy Industry 0.8 5.6 7.6 1.2
Household and Personal Products 4.6 24.5 32.3 7.1
Industrial Machinery Industry 2.6 20.6 33.1 4.5
Internet Services and Infrastructure 2.1 12.9 17.9 4.0
Application Software 1.7 11.4 18.1 3.0
Materials : Chemicals 2.5 14.2 22.2 3.5
Materials : Construction Materials 1.8 10.9 27.6 3.1
Materials : Metals and Mining 1.0 6.2 9.1 1.3
Healthcare: Pharmaceuticals and Biotechnology 3.7 15.7 23.8 3.5
Real Estate 6.6 14.3 18.5 2.0
Automobile Manufacturers Industry 1.9 11.6 22.0 5.2
Media Industry 2.9 11.5 19.9 3.3
Healthcare Facilities and Services Industry 2.3 20.5 30.2 3.8
Independent Power and Renewable Electricity Producers Industry 2.9 9.3 8.6 0.8
IndustryMarket Cap/
RevenueP/TBV P/E P/B
Financials : Banks 4.6 0.6 18.1 0.6
Financials: Consumer Finance 5.2 2.1 18.1 2.2
Financials : Specialized Finance 5.5 1.5 10.2 1.5
Other Diversified Financial Services 2.9 3.0 20.4 2.5
Summary
A S O F D E C E M B E R 31 , 2 0 18
4Duff & Phelps
Consumer Discretionary: Apparel
EV/Sales EV/EBITDA P/E P/B
Number of Observations 21 21 21 21
Number of Outliers 4 1 3 1
Negative Multiples 0 0 0 0
High 5.7x 57.3x 68.4x 16.2x
Mean 2.9x 23.8x 40.3x 6.5x
Median 2.3x 20.1x 44.5x 4.3x
Low 1.2x 3.8x 10.6x 1.1x
Low Quartile 1.4x 8.4x 14.4x 2.5x
Upper Quartile 4.2x 36.9x 64.0x 10.7x
NU
MB
ER
OF
CO
MPA
NIE
S
EV/Sales
0
1
2
7
8
6
4
5
3
9
4.9 - 5.84.0 - 4.93.0 - 4.02.1 - 3.01.2 - 2.1
0%
EB
ITD
A M
AR
GIN
(%)
EV/Sales
0 1.0 2.0 3.0 4.0 5.0 6.0 7.0
10%
20%
30%A
DJU
STE
D R
OE
(%)
EV/EBITDA
0 10.0 30.020.0 40.0 50.0 60.00%
5%
10%
15%
20%
25%
30%N
UM
BE
R O
F C
OM
PAN
IES
EV/EBITDA
0
10
8
6
4
2
50.4 - 62.038.7 - 50.427.1 - 38.715.5 - 27.13.8 - 15.5
Industry Multiples in India - February 2019 - Sixth Edition
A S O F D E C E M B E R 31 , 2 0 18
5Duff & Phelps
NU
MB
ER
OF
CO
MPA
NIE
S
P/E
0
1
2
3
4
5
6
56.7 - 68.4 45.1 - 56.7 33.4 - 45.1 21.8 - 33.4 10.1 - 21.8
NU
MB
ER
OF
CO
MPA
NIE
S
P/B
0
6
4
2
10
8
12
13.2 - 16.310.2 - 13.27.1 - 10.24.1 - 7.11.0 - 4.1
0
– Q8 – Q7 – Q6 – Q5 – Q4 – Q3 – Q2 – Q1 12/31/2018
8.0
2.0
1.0
4.0
5.0
6.0
7.0
3.0
0
60.0
Median multiples
P/B
& E
V/S
ALE
S
EV
/EB
ITD
A &
P/E
P/B EV/Sales P/E EV/EBITDA
10.0
20.0
30.0
40.0
50.0
An industry must have a minimum of five company participants to be considered for analysis. For all reported multiples in India, we have considered all the S&P BSE 500 Index constituents. The S&P BSE 500 Index is comprised of the top 500 companies based on Float Adjusted Market Capitalization that are publicly-traded on the Bombay Stock Exchange (BSE). The S&P BSE 500 is designed to be a broad representation of the Indian market.
Any outliers including negative multiples in the industry have been excluded from the above analysis.
EV = Enterprise Value = Market value of equity on diluted basis plus book value of debt plus preferred stock less cash and cash equivalents, Sales = Revenue for latest 12 months, EBITDA = Earnings before interest, taxes, depreciation and amortization for latest 12 months, P/E = Share price divided by earnings per share on a diluted basis, P/B = Share price / book value per share on a diluted basis where book value per share equals total book value of equity divided by diluted number of shares. Return on equity = Net income / shareholder’s equity. Adjusted ROE is calculated as follows: ROE x (1-dividend payout ratio), Market value of equity is computed using diluted number of shares.
Financial information of companies reflect the latest available information based on company filings as of December 31, 2018.
Source: Data derived from Standard & Poor’s Capital IQ database.
Consumer Discretionary: Apparel – Continued
Industry Multiples in India - February 2019 - Sixth Edition
6Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Industry Multiples in India - February 2019 - Sixth Edition
Consumer Discretionary: Auto Parts and Equipment
NU
MB
ER
OF
CO
MPA
NIE
S
EV/Sales
0
4
6
5
3
2
1
8
9
7
10
4.2 - 5.0 3.3 - 4.22.5 - 3.31.6 - 2.5 0.8 - 1.6
0%
EB
ITD
A M
AR
GIN
(%)
EV/Sales
1.0 2.0 3.0 4.0 5.0 6.0
5%
10%
15%
20%
25%
30%
0
AD
JUS
TED
RO
E (%
)
EV/EBITDA
0 10.0 15.05.0 25.020.0 30.00%
5%
10%
15%
20%
25%N
UM
BE
R O
F C
OM
PAN
IES
EV/EBITDA
0
10
8
4
6
2
26.2 - 30.821.6 - 26.217.0 - 21.612.4 - 17.07.8 - 12.4
EV/Sales EV/EBITDA P/E P/B
Number of Observations 21 21 21 21
Number of Outliers 0 0 0 0
Negative Multiples 0 0 0 0
High 4.9x 26.8x 43.7x 7.8x
Mean 2.1x 13.6x 26.7x 4.2x
Median 1.7x 12.9x 25.1x 4.4x
Low 0.8x 6.7x 8.6x 1.1x
Low Quartile 1.0x 9.6x 19.9x 2.8x
Upper Quartile 2.9x 16.1x 32.7x 5.5x
7Duff & Phelps
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Industry Multiples in India - February 2019 - Sixth Edition
Consumer Discretionary: Auto Parts and Equipment – Continued
NU
MB
ER
OF
CO
MPA
NIE
S
P/E
0
4
3
2
1
5
6
7
36.9 - 44.229.6 - 36.922.2 - 29.6 14.9 - 22.2 7.6 - 14.9
NU
MB
ER
OF
CO
MPA
NIE
S
P/B
0
4
6
2
8
6.4 - 7.85.1 - 6.43.7 - 5.12.3 - 3.71.0 - 2.3
0
– Q8 – Q7 – Q6 – Q5 – Q4 – Q3 – Q2 – Q1 12/31/2018
2.0
3.0
6.0
4.0
7.0
8.0
1.0
5.0
0
40.0
Median multiples
P/B
& E
V/S
ALE
S
EV
/EB
ITD
A &
P/E
P/B EV/Sales P/E EV/EBITDA
10.0
5.0
15.0
20.0
25.0
30.0
35.0
An industry must have a minimum of five company participants to be considered for analysis. For all reported multiples in India, we have considered all the S&P BSE 500 Index constituents. The S&P BSE 500 Index is comprised of the top 500 companies based on Float Adjusted Market Capitalization that are publicly-traded on the Bombay Stock Exchange (BSE). The S&P BSE 500 is designed to be a broad representation of the Indian market.
Any outliers including negative multiples in the industry have been excluded from the above analysis.
EV = Enterprise Value = Market value of equity on diluted basis plus book value of debt plus preferred stock less cash and cash equivalents, Sales = Revenue for latest 12 months, EBITDA = Earnings before interest, taxes, depreciation and amortization for latest 12 months, P/E = Share price divided by earnings per share on a diluted basis, P/B = Share price / book value per share on a diluted basis where book value per share equals total book value of equity divided by diluted number of shares. Return on equity = Net income / shareholder’s equity. Adjusted ROE is calculated as follows: ROE x (1-dividend payout ratio), Market value of equity is computed using diluted number of shares.
Financial information of companies reflect the latest available information based on company filings as of December 31, 2018.
Source: Data derived from Standard & Poor’s Capital IQ database
Industry Multiples in India - February 2019 - Sixth Edition
8Duff & Phelps
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Consumer Discretionary: Household Appliances
NU
MB
ER
OF
CO
MPA
NIE
S
EV/Sales
0
1
2
3
3.9 - 4.63.3 - 3.92.6 - 3.3 2.0 - 2.61.3 - 2.0
0%
EB
ITD
A M
AR
GIN
(%)
EV/Sales
0 1.0 2.0 3.0 4.0 5.0
5%
10%
15%
20%
25%
30%A
DJU
STE
D R
OE
(%)
EV/EBITDA
0 10.0 15.05.0 25.020.0 30.0 35.0 40.00%
5%
10%
15%
20%
25%
30%
35%
40%
45%N
UM
BE
R O
F C
OM
PAN
IES
EV/EBITDA
0
3
2
1
31.5 - 34.328.8 - 31.5 26.0 - 28.8 23.2 - 26.0 20.5 - 23.2
EV/Sales EV/EBITDA P/E P/B
Number of Observations 7 7 7 7
Number of Outliers 1 1 0 0
Negative Multiples 0 0 0 0
High 4.6x 34.3x 61.5x 16.8x
Mean 2.7x 26.1x 47.3x 9.5x
Median 2.7x 26.3x 45.7x 8.5x
Low 1.3x 20.5x 32.8x 5.5x
Low Quartile 1.6x 23.7x 40.0x 7.1x
Upper Quartile 3.6x 29.6x 58.6x 12.5x
Industry Multiples in India - February 2019 - Sixth Edition
9Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Consumer Discretionary: Household Appliances – Continued
NU
MB
ER
OF
CO
MPA
NIE
S
P/E
0
3
2
1
4
55.7 - 61.6 49.9 - 55.7 44.0 - 49.9 38.2 - 44.032.3 - 38.2
NU
MB
ER
OF
CO
MPA
NIE
S
P/B
0
2
3
1
4
14.5 - 16.8 12.2 - 14.510.0 - 12.27.7 - 10.05.4 - 7.7
0
– Q8 – Q7 – Q6 – Q5 – Q4 – Q3 – Q2 – Q1 12/31/2018
14.0
4.0
2.0
12.0
8.0
10.0
6.0
0
70.0
60.0
Median multiples
P/B
& E
V/S
ALE
S
EV
/EB
ITD
A &
P/E
P/B EV/Sales P/E EV/EBITDA
20.0
10.0
30.0
40.0
50.0
An industry must have a minimum of five company participants to be considered for analysis. For all reported multiples in India, we have considered all the S&P BSE 500 Index constituents. The S&P BSE 500 Index is comprised of the top 500 companies based on Float Adjusted Market Capitalization that are publicly-traded on the Bombay Stock Exchange (BSE). The S&P BSE 500 is designed to be a broad representation of the Indian market.
Any outliers including negative multiples in the industry have been excluded from the above analysis.
EV = Enterprise Value = Market value of equity on diluted basis plus book value of debt plus preferred stock less cash and cash equivalents, Sales = Revenue for latest 12 months, EBITDA = Earnings before interest, taxes, depreciation and amortization for latest 12 months, P/E = Share price divided by earnings per share on a diluted basis, P/B = Share price / book value per share on a diluted basis where book value per share equals total book value of equity divided by diluted number of shares. Return on equity = Net income / shareholder’s equity. Adjusted ROE is calculated as follows: ROE x (1-dividend payout ratio), Market value of equity is computed using diluted number of shares.
Financial information of companies reflect the latest available information based on company filings as of December 31, 2018.
Source: Data derived from Standard & Poor’s Capital IQ database
10Duff & Phelps
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Industry Multiples in India - February 2019 - Sixth Edition
Electric and Gas Utilities
NU
MB
ER
OF
CO
MPA
NIE
S
EV/Sales
0
3
2
1
4
5
7.3 - 9.15.6 - 7.33.8 - 5.62.0 - 3.80.3 - 2.0
0%
EB
ITD
A M
AR
GIN
(%)
EV/Sales
0 1.0 3.02.0 4.0 6.0 7.0 8.0 9.05.0 10.0
20%
10%
30%
40%
60%
50%
70%
80%
100%
90%
AD
JUS
TED
RO
E (%
)
EV/EBITDA
0 8.0 12.04.02.0 6.0 10.0 14.0 16.0 18.00%
5%
10%
15%
20%
25%N
UM
BE
R O
F C
OM
PAN
IES
EV/EBITDA
0
5
2
3
4
1
13.0 - 15.510.6 - 13.08.1 - 10.65.6 - 8.13.1 - 5.6
EV/Sales EV/EBITDA P/E P/B
Number of Observations 11 11 11 11
Number of Outliers 0 0 1 0
Negative Multiples 0 0 1 0
High 9.0x 15.4x 31.6x 5.1x
Mean 3.4x 9.4x 16.2x 2.5x
Median 2.3x 9.9x 15.1x 1.9x
Low 0.8x 3.1x 5.6x 0.3x
Low Quartile 1.7x 6.7x 12.1x 1.2x
Upper Quartile 4.1x 12.8x 20.1x 4.0x
11Duff & Phelps
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Industry Multiples in India - February 2019 - Sixth Edition
Electric and Gas Utilities – Continued
NU
MB
ER
OF
CO
MPA
NIE
S
P/E
0
3
4
2
1
5
25.6 - 31.6 19.6 - 25.613.6 - 19.67.6 - 13.61.6 - 7.6
0
– Q8 – Q7 – Q6 – Q5 – Q4 – Q3 – Q2 – Q1 12/31/2018
6.0
2.0
1.0
4.0
5.0
3.0
0
30.0
Median multiples
P/B
& E
V/S
ALE
S
EV
/EB
ITD
A &
P/E
P/B EV/Sales P/E EV/EBITDA
10.0
5.0
15.0
20.0
25.0
An industry must have a minimum of five company participants to be considered for analysis. For all reported multiples in India, we have considered all the S&P BSE 500 Index constituents. The S&P BSE 500 Index is comprised of the top 500 companies based on Float Adjusted Market Capitalization that are publicly-traded on the Bombay Stock Exchange (BSE). The S&P BSE 500 is designed to be a broad representation of the Indian market.
Any outliers including negative multiples in the industry have been excluded from the above analysis.
EV = Enterprise Value = Market value of equity on diluted basis plus book value of debt plus preferred stock less cash and cash equivalents, Sales = Revenue for latest 12 months, EBITDA = Earnings before interest, taxes, depreciation and amortization for latest 12 months, P/E = Share price divided by earnings per share on a diluted basis, P/B = Share price / book value per share on a diluted basis where book value per share equals total book value of equity divided by diluted number of shares. Return on equity = Net income / shareholder’s equity. Adjusted ROE is calculated as follows: ROE x (1-dividend payout ratio), Market value of equity is computed using diluted number of shares.
Financial information of companies reflect the latest available information based on company filings as of December 31, 2018.
Source: Data derived from Standard & Poor’s Capital IQ database
NU
MB
ER
OF
CO
MPA
NIE
S
P/B
0
2
3
1
4
4.2 - 5.23.2 - 4.22.2 - 3.21.2 - 2.20.2 - 1.2
Industry Multiples in India - February 2019 - Sixth Edition
12Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Energy
NU
MB
ER
OF
CO
MPA
NIE
S
EV/Sales
0
3
2
1
4
5
6
2.2 - 2.71.7 - 2.21.2 - 1.70.7 - 1.20.2 - 0.7
0%
EB
ITD
A M
AR
GIN
(%)
EV/Sales
0 1.00.5 2.01.5 2.5 3.0
5%
10%
15%
25%
20%
30%
35%
40%
45%A
DJU
STE
D R
OE
(%)
EV/EBITDA
0 4.0 6.02.0 8.0 10.0 12.00%
10%
5%
15%
20%
25%
30%N
UM
BE
R O
F C
OM
PAN
IES
EV/EBITDA
0
6
4
2
8.8 - 10.27.5 - 8.86.1 - 7.54.8 - 6.13.4 - 4.8
EV/Sales EV/EBITDA P/E P/B
Number of Observations 10 10 10 10
Number of Outliers 0 1 1 0
Negative Multiples 0 0 0 0
High 2.7x 10.2x 17.2x 5.4x
Mean 0.9x 6.2x 8.0x 1.7x
Median 0.8x 6.1x 7.6x 1.2x
Low 0.2x 3.4x 0.0x 0.7x
Low Quartile 0.4x 5.0x 5.7x 0.9x
Upper Quartile 1.4x 7.2x 9.9x 1.9x
Industry Multiples in India - February 2019 - Sixth Edition
13Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Energy – Continued
An industry must have a minimum of five company participants to be considered for analysis. For all reported multiples in India, we have considered all the S&P BSE 500 Index constituents. The S&P BSE 500 Index is comprised of the top 500 companies based on Float Adjusted Market Capitalization that are publicly-traded on the Bombay Stock Exchange (BSE). The S&P BSE 500 is designed to be a broad representation of the Indian market.
Any outliers including negative multiples in the industry have been excluded from the above analysis.
EV = Enterprise Value = Market value of equity on diluted basis plus book value of debt plus preferred stock less cash and cash equivalents, Sales = Revenue for latest 12 months, EBITDA = Earnings before interest, taxes, depreciation and amortization for latest 12 months, P/E = Share price divided by earnings per share on a diluted basis, P/B = Share price / book value per share on a diluted basis where book value per share equals total book value of equity divided by diluted number of shares. Return on equity = Net income / shareholder’s equity. Adjusted ROE is calculated as follows: ROE x (1-dividend payout ratio), Market value of equity is computed using diluted number of shares.
Financial information of companies reflect the latest available information based on company filings as of December 31, 2018.
Source: Data derived from Standard & Poor’s Capital IQ database
NU
MB
ER
OF
CO
MPA
NIE
S
P/E
0
3
2
1
4
13.7 - 17.2 10.1 - 13.76.6 - 10.13.0 - 6.6-0.5 - 3.0
NU
MB
ER
OF
CO
MPA
NIE
S
P/B
0
4
6
2
8
4.5 - 5.5 3.5 - 4.52.5 - 3.51.5 - 2.50.6 - 1.5
0
– Q8 – Q7 – Q6 – Q5 – Q4 – Q3 – Q2 – Q1 12/31/2018
2.5
1.0
0.5
2.0
1.5
0
18.0
Median multiples
P/B
& E
V/S
ALE
S
EV
/EB
ITD
A &
P/E
P/B EV/Sales P/E EV/EBITDA
6.0
2.0
4.0
8.0
10.0
12.0
14.0
16.0
14Duff & Phelps
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Industry Multiples in India - February 2019 - Sixth Edition
14Duff & Phelps
Financials: Banks
P/B P/E P/TBV Market
Cap/Revenue
Number of Observations 35 35 35 35
Number of Outliers 0 19 0 11
Negative Multiples 1 19 1 10
High 6.3x 38.2x 6.3x 15.0x
Mean 1.4x 20.0x 1.4x 5.4x
Median 0.6x 18.1x 0.6x 4.6x
Low 0.2x 7.1x 0.2x 1.0x
Low Quartile 0.4x 10.0x 0.4x 2.0x
Upper Quartile 1.8x 28.4x 1.8x 8.7x
P/BV
AD
JUS
TED
RO
E (
%)
-50%
20%
-30%
-40%
-20%
-10%
7.01.0 2.0 3.0 4.0 5.0 6.00%
10%
AD
JUS
TED
RO
E (%
)
P/E
0 15.0 20.010.05.0 25.0 30.0 35.0 40.0 45.00%
4%
2%
6%
8%
10%
12%
14%
16%
18%
NU
MB
ER
OF
CO
MPA
NIE
S
P/BV
0
14
16
8
10
12
2
4
6
18
20
22
3.7 - 4.6 2.7 - 3.71.8 - 2.70.9- 1.80.0 - 0.9
NU
MB
ER
OF
CO
MPA
NIE
S
P/E
0
4
2
6
30.6 - 38.222.9 - 30.615.3 - 22.97.6 - 15.30 - 7.6
15Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Industry Multiples in India - February 2019 - Sixth Edition
Financials: Banks – Continued
NU
MB
ER
OF
CO
MPA
NIE
S
P/TBV
0
18
20
24
22
16
12
14
10
6
8
2
26
5.1 - 6.4 3.8 - 5.1 2.6 - 3.8 1.3 - 2.6 0 - 1.3
4N
UM
BE
R O
F C
OM
PAN
IES
Market Cap/Revenue
0
6
8
2
10
0.0 - 3.0 3.0 - 6.0 9.0 - 12.0 12.0- 15.0 15.0 - 18.0
4
6.0 - 9.0
0
– Q8 – Q7 – Q6 – Q5 – Q4 – Q3 – Q2 – Q1 12/31/2018
0.2
0.4
1.8
1.6
1.4
1.2
1.0
0.8
0.6
2.0
0
25.0
Median multiples
P/B
P/E
& M
arke
tCap
/Rev
enue
5.0
10.0
15.0
20.0
P/B Market Cap/Revenue P/E
An industry must have a minimum of five company participants to be considered for analysis. For all reported multiples in India, we have considered all the S&P BSE 500 Index constituents. The S&P BSE 500 Index is comprised of the top 500 companies based on Float Adjusted Market Capitalization that are publicly-traded on the Bombay Stock Exchange (BSE). The S&P BSE 500 is designed to be a broad representation of the Indian market.
Any outliers including negative multiples in the industry have been excluded from the above analysis.
EV = Enterprise Value = Market value of equity on diluted basis plus book value of debt plus preferred stock less cash and cash equivalents, Sales = Revenue for latest 12 months, EBITDA = Earnings before interest, taxes, depreciation and amortization for latest 12 months, P/E = Share price divided by earnings per share on a diluted basis, P/B = Share price / book value per share on a diluted basis where book value per share equals total book value of equity divided by diluted number of shares. Return on equity = Net income / shareholder’s equity. Adjusted ROE is calculated as follows: ROE x (1-dividend payout ratio), Market value of equity is computed using diluted number of shares.
Financial information of companies reflect the latest available information based on company filings as of December 31, 2018.
Source: Data derived from Standard & Poor’s Capital IQ database.
A S O F D E C E M B E R 31 , 2 0 18
16Duff & Phelps
Financials: Consumer Finance
P/B P/E P/TBV Market
Cap/Revenue
Number of Observations 13 13 13 13
Number of Outliers 0 0 1 0
Negative Multiples 0 0 0 0
High 8.8x 52.6x 6.2x 14.5x
Mean 3.1x 23.3x 2.7x 6.2x
Median 2.2x 16.1x 2.1x 5.2x
Low 1.1x 10.2x 1.1x 1.9x
Low Quartile 1.8x 11.6x 1.8x 3.3x
Upper Quartile 3.8x 26.9x 3.0x 7.2x
P/BV
AD
JUS
TED
RO
E (
%)
0%
25%
15%
5%
10%
20%
0 2.0 4.0 8.06.0 10.0
P/E
AD
JUS
TED
RO
E (
%)
0%
25%
15%
5%
10%
20%
0 20.010.0 40.030.0 50.0 60.0
NU
MB
ER
OF
CO
MPA
NIE
S
P/BV
0
2
4
6
4.5 - 5.63.3 - 4.52.2 - 3.31.1 - 2.20.0 - 1.1
NU
MB
ER
OF
CO
MPA
NIE
S
P/E
0
2
4
6
8
42.2 - 52.8 31.7 - 42.2 21.1 - 31.710.6 - 21.10.0 - 10.6
Industry Multiples in India - February 2019 - Sixth Edition
A S O F D E C E M B E R 31 , 2 0 18
17Duff & Phelps
Financials: Consumer Finance – Continued
NU
MB
ER
OF
CO
MPA
NIE
S
P/TBV
0
6
8
2
10
5.0 - 6.33.8 - 5.02.5 - 3.81.3 - 2.50.0 - 1.3
4
NU
MB
ER
OF
CO
MPA
NIE
S
Market Cap/Revenue
0
2
6
11.6 - 14.58.7 - 11.65.8 - 8.72.9 - 5.80 - 2.9
4
0
– Q8 – Q7 – Q6 – Q5 – Q4 – Q3 – Q2 – Q1 12/31/2018
3.5
0.5
1.0
3.0
2.5
2.0
1.5
0
35.0
30.0
Median multiples
P/B
P/E
& M
arke
tCap
/Rev
enue
5.0
10.0
15.0
20.0
25.0
P/B Market Cap/Revenue P/E
An industry must have a minimum of five company participants to be considered for analysis. For all reported multiples in India, we have considered all the S&P BSE 500 Index constituents. The S&P BSE 500 Index is comprised of the top 500 companies based on Float Adjusted Market Capitalization that are publicly-traded on the Bombay Stock Exchange (BSE). The S&P BSE 500 is designed to be a broad representation of the Indian market.
Any outliers including negative multiples in the industry have been excluded from the above analysis.
EV = Enterprise Value = Market value of equity on diluted basis plus book value of debt plus preferred stock less cash and cash equivalents, Sales = Revenue for latest 12 months, EBITDA = Earnings before interest, taxes, depreciation and amortization for latest 12 months, P/E = Share price divided by earnings per share on a diluted basis, P/B = Share price / book value per share on a diluted basis where book value per share equals total book value of equity divided by diluted number of shares. Return on equity = Net income / shareholder’s equity. Adjusted ROE is calculated as follows: ROE x (1-dividend payout ratio), Market value of equity is computed using diluted number of shares.
Financial information of companies reflect the latest available information based on company filings as of December 31, 2018.
Source: Data derived from Standard & Poor’s Capital IQ database.
Industry Multiples in India - February 2019 - Sixth Edition
18Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Industry Multiples in India - February 2019 - Sixth Edition
Financials: Specialized Finance
P/B P/E P/TBV Market
Cap/Revenue
Number of Observations 14 14 14 14
Number of Outliers 1 3 1 2
Negative Multiples 0 1 0 1
High 5.0x 19.9x 5.1x 10.6x
Mean 1.9x 10.3x 1.9x 5.3x
Median 1.5x 10.2x 1.5x 5.5x
Low 0.4x 4.8x 0.5x 1.9x
Low Quartile 0.7x 7.1x 0.7x 3.0x
Upper Quartile 2.4x 12.0x 2.4x 6.6x
P/BV
AD
JUS
TED
RO
E (
%)
0%
30%
15%
5%
10%
20%
25%
0 2.01.0 4.03.0 5.0 6.0
P/E
AD
JUS
TED
RO
E (
%)
0%
30%
15%
5%
10%
20%
25%
0 10.05.0 20.015.0 25.0
NU
MB
ER
OF
CO
MPA
NIE
S
P/BV
0
2
4
6
4.3 - 5.12.6 - 3.4 3.4 - 4.31.7 - 2.60.9 - 1.70.0 - 0.9
NU
MB
ER
OF
CO
MPA
NIE
S
P/E
0
4
2
6
16.0 - 20.0 12.0 - 16.08.0 - 12.04.0 - 8.00.0 - 4.0
19Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Industry Multiples in India - February 2019 - Sixth Edition
Financials: Specialized Finance – Continued
NU
MB
ER
OF
CO
MPA
NIE
S
P/TBV
0
2
6
4.1 - 5.13.1 - 4.12.0 - 3.1 1.0 - 2.0 0 - 1.0
4
NU
MB
ER
OF
CO
MPA
NIE
S
Market Cap/Revenue
0
1
6
8.5 - 10.6 6.4 - 8.5 4.2 - 6.4 2.1 - 4.2 0 - 2.1
3
4
5
2
0
– Q8 – Q7 – Q6 – Q5 – Q4 – Q3 – Q2 – Q1 12/31/2018
4.0
0.5
1.0
3.5
3.0
2.5
2.0
1.5
0
25.0
Median multiples
P/B
P/E
& M
arke
tCap
/Rev
enue
5.0
10.0
15.0
20.0
P/B Market Cap/Revenue P/E
An industry must have a minimum of five company participants to be considered for analysis. For all reported multiples in India, we have considered all the S&P BSE 500 Index constituents. The S&P BSE 500 Index is comprised of the top 500 companies based on Float Adjusted Market Capitalization that are publicly-traded on the Bombay Stock Exchange (BSE). The S&P BSE 500 is designed to be a broad representation of the Indian market.
Any outliers including negative multiples in the industry have been excluded from the above analysis.
EV = Enterprise Value = Market value of equity on diluted basis plus book value of debt plus preferred stock less cash and cash equivalents, Sales = Revenue for latest 12 months, EBITDA = Earnings before interest, taxes, depreciation and amortization for latest 12 months, P/E = Share price divided by earnings per share on a diluted basis, P/B = Share price / book value per share on a diluted basis where book value per share equals total book value of equity divided by diluted number of shares. Return on equity = Net income / shareholder’s equity. Adjusted ROE is calculated as follows: ROE x (1-dividend payout ratio), Market value of equity is computed using diluted number of shares.
Financial information of companies reflect the latest available information based on company filings as of December 31, 2018.
Source: Data derived from Standard & Poor’s Capital IQ database.
Industry Multiples in India - February 2019 - Sixth Edition
20Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Household and Personal Products
NU
MB
ER
OF
CO
MPA
NIE
S
EV/Sales
0
8
6
4
2
10
12
14
10.0 - 12.27.7 - 10.05.5 - 7.73.2 - 5.5 1.0 - 3.2
0%
EB
ITD
A M
AR
GIN
(%)
EV/Sales
0 4.02.0 6.0 8.0 10.0 12.0 14.0
5%
10%
15%
25%
20%
30%
35%A
DJU
STE
D R
OE
(%)
EV/EBITDA
0 20.0 30.010.0 40.0 50.0 60.00%
20%
10%
30%
40%
50%
60%N
UM
BE
R O
F C
OM
PAN
IES
EV/EBITDA
0
10
4
6
8
2
41.4 - 50.432.3- 41.423.3- 32.314.2 - 23.35.2 - 14.2
EV/Sales EV/EBITDA P/E P/B
Number of Observations 27 27 27 27
Number of Outliers 0 1 5 3
Negative Multiples 0 0 1 0
High 12.2x 50.3x 79.3x 28.8x
Mean 5.2x 25.0x 35.4x 8.8x
Median 4.6x 24.5x 32.3x 7.1x
Low 1.0x 5.2x 0.0x 0.8x
Low Quartile 1.6x 13.7x 18.9x 3.0x
Upper Quartile 8.3x 39.2x 51.8x 12.2x
Industry Multiples in India - February 2019 - Sixth Edition
21Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Household and Personal Products – Continued
NU
MB
ER
OF
CO
MPA
NIE
S
P/E
0
5
6
8
4
1
2
3
7
9
63.9 - 80.047.8 - 63.931.7 - 47.815.6 - 31.7-0.5 - 15.6
NU
MB
ER
OF
CO
MPA
NIE
S
P/B
0
10
4
2
8
14
23.3 - 28.917.6 - 23.312.0 - 17.66.3 - 12.00.7 - 6.3
6
0
– Q8 – Q7 – Q6 – Q5 – Q4 – Q3 – Q2 – Q1 12/31/2018
14.0
4.0
2.0
10.0
8.0
12.0
6.0
0
60.0
Median multiples
P/B
& E
V/S
ALE
S
EV
/EB
ITD
A &
P/E
P/B EV/Sales P/E EV/EBITDA
40.0
10.0
20.0
30.0
50.0
An industry must have a minimum of five company participants to be considered for analysis. For all reported multiples in India, we have considered all the S&P BSE 500 Index constituents. The S&P BSE 500 Index is comprised of the top 500 companies based on Float Adjusted Market Capitalization that are publicly-traded on the Bombay Stock Exchange (BSE). The S&P BSE 500 is designed to be a broad representation of the Indian market.
Any outliers including negative multiples in the industry have been excluded from the above analysis.
EV = Enterprise Value = Market value of equity on diluted basis plus book value of debt plus preferred stock less cash and cash equivalents, Sales = Revenue for latest 12 months, EBITDA = Earnings before interest, taxes, depreciation and amortization for latest 12 months, P/E = Share price divided by earnings per share on a diluted basis, P/B = Share price / book value per share on a diluted basis where book value per share equals total book value of equity divided by diluted number of shares. Return on equity = Net income / shareholder’s equity. Adjusted ROE is calculated as follows: ROE x (1-dividend payout ratio), Market value of equity is computed using diluted number of shares.
Financial information of companies reflect the latest available information based on company filings as of December 31, 2018.
Source: Data derived from Standard & Poor’s Capital IQ database.
22Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Industry Multiples in India - February 2019 - Sixth Edition
Industrial Machinery
NU
MB
ER
OF
CO
MPA
NIE
S
EV/Sales
0
3
2
1
4
4.4 - 5.33.5 - 4.4 2.7 - 3.51.8 - 2.70.9 - 1.8
0%
EB
ITD
A M
AR
GIN
(%)
EV/Sales
0 1.0 2.0 4.0 5.03.0 6.0
5%
10%
15%
20%
25%A
DJU
STE
D R
OE
(%)
EV/EBITDA
0 10.0 15.05.0 20.0 25.0 30.00%
6%
4%
2%
8%
10%
12%
14%
16%
18%N
UM
BE
R O
F C
OM
PAN
IES
EV/EBITDA
0
4
2
3
1
23.9 - 27.220.6 - 23.917.3 - 20.6 14.0 - 17.310.7 - 14.0
EV/Sales EV/EBITDA P/E P/B
Number of Observations 13 13 13 13
Number of Outliers 1 2 2 1
Negative Multiples 0 0 1 0
High 5.3x 27.2x 48.6x 6.9x
Mean 2.8x 19.9x 34.8x 4.3x
Median 2.6x 20.6x 33.1x 4.5x
Low 0.9x 10.7x 23.6x 0.0x
Low Quartile 1.6x 18.2x 26.6x 3.9x
Upper Quartile 3.4x 23.8x 38.1x 5.7x
23Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Industry Multiples in India - February 2019 - Sixth Edition
Industrial Machinery – Continued
NU
MB
ER
OF
CO
MPA
NIE
S
P/E
0
3
4
2
1
5
43.6 - 48.638.6 - 43.633.6 - 38.6 28.6 - 33.623.6 - 28.6
NU
MB
ER
OF
CO
MPA
NIE
S
P/B
0
2
4
6
5.6 - 7.0 4.2 - 5.62.8 - 4.21.4 - 2.80.0 - 1.4
0
– Q8 – Q7 – Q6 – Q5 – Q4 – Q3 – Q2 – Q1 12/31/2018
7.0
4.0
2.0
3.0
5.0
6.0
1.0
0
45.0
Median multiples
P/B
& E
V/S
ALE
S
EV
/EB
ITD
A &
P/E
P/B EV/Sales P/E EV/EBITDA
20.0
5.0
10.0
15.0
25.0
30.0
35.0
40.0
An industry must have a minimum of five company participants to be considered for analysis. For all reported multiples in India, we have considered all the S&P BSE 500 Index constituents. The S&P BSE 500 Index is comprised of the top 500 companies based on Float Adjusted Market Capitalization that are publicly-traded on the Bombay Stock Exchange (BSE). The S&P BSE 500 is designed to be a broad representation of the Indian market.
Any outliers including negative multiples in the industry have been excluded from the above analysis.
EV = Enterprise Value = Market value of equity on diluted basis plus book value of debt plus preferred stock less cash and cash equivalents, Sales = Revenue for latest 12 months, EBITDA = Earnings before interest, taxes, depreciation and amortization for latest 12 months, P/E = Share price divided by earnings per share on a diluted basis, P/B = Share price / book value per share on a diluted basis where book value per share equals total book value of equity divided by diluted number of shares. Return on equity = Net income / shareholder’s equity. Adjusted ROE is calculated as follows: ROE x (1-dividend payout ratio), Market value of equity is computed using diluted number of shares.
Financial information of companies reflect the latest available information based on company filings as of December 31, 2018.
Source: Data derived from Standard & Poor’s Capital IQ database.
Industry Multiples in India - February 2019 - Sixth Edition
24Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Internet Services and Infrastructure
NU
MB
ER
OF
CO
MPA
NIE
S
EV/Sales
0
4
5
3
1
2
6
4.1 - 4.83.3 - 4.12.6 - 3.31.8 - 2.61.1 - 1.8
0%
EB
ITD
A M
AR
GIN
(%)
EV/Sales
0 2.01.0 3.0 4.0 5.0 6.0
5%
15%
25%
20%
10%
30%A
DJU
STE
D R
OE
(%)
EV/EBITDA
0 10.0 15.05.0 20.0 25.0 30.00%
15%
10%
5%
20%
25%
30%N
UM
BE
R O
F C
OM
PAN
IES
EV/EBITDA
0
6
4
5
3
2
1
20.9 - 24.417.5 - 20.914.0 - 17.510.6 - 14.07.1 - 10.6
EV/Sales EV/EBITDA P/E P/B
Number of Observations 15 15 15 15
Number of Outliers 3 3 2 2
Negative Multiples 0 0 0 0
High 4.8x 24.3x 34.4x 8.7x
Mean 2.5x 13.8x 19.0x 4.5x
Median 2.1x 12.9x 17.9x 4.0x
Low 1.1x 7.1x 8.7x 1.4x
Low Quartile 1.8x 11.4x 15.6x 3.3x
Upper Quartile 3.6x 16.9x 22.5x 6.3x
Industry Multiples in India - February 2019 - Sixth Edition
25Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Internet Services and Infrastructure – Continued
NU
MB
ER
OF
CO
MPA
NIE
S
P/E
0
3
2
1
5
6
7
8
29.2 - 34.423.9 - 29.218.7 - 23.9 13.4 - 18.78.2 - 13.4
4
NU
MB
ER
OF
CO
MPA
NIE
S
P/B
0
4
5
3
1
2
6
7.2 - 8.75.7 - 7.24.2 - 5.72.8 - 4.21.3 - 2.8
0
– Q8 – Q7 – Q6 – Q5 – Q4 – Q3 – Q2 – Q1 12/31/2018
5.0
3.0
1.5
2.5
3.5
4.0
4.5
0.5
1.0
2.0
0
25.0
Median multiples
P/B
& E
V/S
ALE
S
EV
/EB
ITD
A &
P/E
P/B EV/Sales P/E EV/EBITDA
5.0
10.0
15.0
An industry must have a minimum of five company participants to be considered for analysis. For all reported multiples in India, we have considered all the S&P BSE 500 Index constituents. The S&P BSE 500 Index is comprised of the top 500 companies based on Float Adjusted Market Capitalization that are publicly-traded on the Bombay Stock Exchange (BSE). The S&P BSE 500 is designed to be a broad representation of the Indian market.
Any outliers including negative multiples in the industry have been excluded from the above analysis.
EV = Enterprise Value = Market value of equity on diluted basis plus book value of debt plus preferred stock less cash and cash equivalents, Sales = Revenue for latest 12 months, EBITDA = Earnings before interest, taxes, depreciation and amortization for latest 12 months, P/E = Share price divided by earnings per share on a diluted basis, P/B = Share price / book value per share on a diluted basis where book value per share equals total book value of equity divided by diluted number of shares. Return on equity = Net income / shareholder’s equity. Adjusted ROE is calculated as follows: ROE x (1-dividend payout ratio), Market value of equity is computed using diluted number of shares.
Financial information of companies reflect the latest available information based on company filings as of December 31, 2018.
Source: Data derived from Standard & Poor’s Capital IQ database.
Note - As per recent changes in the GICS structure, Internet Software and Services industry has been re-classified into two sub-industries. The sub-industries are now called “Internet Services and Infrastructure” industry and “Application Software” industry. All the historic multiples reflect the information of companies forming part of the new definition of the industry.
Industry Multiples in India - February 2019 - Sixth Edition
26Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Application Software
NU
MB
ER
OF
CO
MPA
NIE
S
EV/Sales
0
4
5
3
1
2
6
5.2 - 6.34.2 - 5.23.1 - 4.22.0 - 3.11.0 - 2.0
0%
EB
ITD
A M
AR
GIN
(%)
EV/Sales
0 2.01.0 3.0 4.0 5.0 6.0 7.0
5%
15%
25%
35%
30%
40%
20%
10%
45%A
DJU
STE
D R
OE
(%)
EV/EBITDA
0 4.0 8.02.0 12.0 14.0 16.010.06.0 18.00%
15%
10%
5%
20%
25%
35%
30%
40%N
UM
BE
R O
F C
OM
PAN
IES
EV/EBITDA
0
4
2
13.7 - 15.5 11.8 - 13.710.0 - 11.88.2 - 10.06.4 - 8.2
EV/Sales EV/EBITDA P/E P/B
Number of Observations 8 8 8 8
Number of Outliers 0 1 0 0
Negative Multiples 0 0 0 0
High 6.2x 15.4x 26.1x 7.9x
Mean 2.4x 11.5x 18.9x 3.9x
Median 1.7x 11.4x 18.1x 3.0x
Low 1.0x 6.4x 10.3x 1.3x
Low Quartile 1.3x 10.2x 16.2x 2.6x
Upper Quartile 3.5x 14.8x 24.2x 6.5x
Industry Multiples in India - February 2019 - Sixth Edition
27Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Application Software – Continued
NU
MB
ER
OF
CO
MPA
NIE
S
P/E
0
6
4
2
8
22.9 - 26.219.7 - 22.916.4 - 19.713.1 - 16.49.8 - 13.1
NU
MB
ER
OF
CO
MPA
NIE
S
P/B
0
2
4
6
6.6 - 7.95.2 - 6.63.9 - 5.2 2.6 - 3.91.2 - 2.6
0
– Q8 – Q7 – Q6 – Q5 – Q4 – Q3 – Q2 – Q1 12/31/2018
4.0
3.0
1.5
2.5
3.5
0.5
1.0
2.0
0
30.0
Median multiples
P/B
& E
V/S
ALE
S
EV
/EB
ITD
A &
P/E
P/B EV/Sales P/E EV/EBITDA
20.0
25.0
5.0
10.0
15.0
An industry must have a minimum of five company participants to be considered for analysis. For all reported multiples in India, we have considered all the S&P BSE 500 Index constituents. The S&P BSE 500 Index is comprised of the top 500 companies based on Float Adjusted Market Capitalization that are publicly-traded on the Bombay Stock Exchange (BSE). The S&P BSE 500 is designed to be a broad representation of the Indian market.
Any outliers including negative multiples in the industry have been excluded from the above analysis.
EV = Enterprise Value = Market value of equity on diluted basis plus book value of debt plus preferred stock less cash and cash equivalents, Sales = Revenue for latest 12 months, EBITDA = Earnings before interest, taxes, depreciation and amortization for latest 12 months, P/E = Share price divided by earnings per share on a diluted basis, P/B = Share price / book value per share on a diluted basis where book value per share equals total book value of equity divided by diluted number of shares. Return on equity = Net income / shareholder’s equity. Adjusted ROE is calculated as follows: ROE x (1-dividend payout ratio), Market value of equity is computed using diluted number of shares.
Financial information of companies reflect the latest available information based on company filings as of December 31, 2018.
Source: Data derived from Standard & Poor’s Capital IQ database.
Note - As per recent changes in the GICS structure, Internet Software and Services industry has been re-classified into two sub-industries. The sub-industries are now called “Internet Services and Infrastructure” industry and “Application Software” industry. All the historic multiples reflect the information of companies forming part of the new definition of the industry.
28Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Industry Multiples in India - February 2019 - Sixth Edition
Materials: Chemicals
NU
MB
ER
OF
CO
MPA
NIE
S
EV/Sales
0
20
15
5
10
25
9.1 - 10.85.7 - 7.4 7.4 - 9.14.0 - 5.7 2.3 - 4.0 0.6 - 2.3
0%
EB
ITD
A M
AR
GIN
(%)
EV/Sales
0 2.01.0 3.0 4.0 5.0 7.0 8.0 9.06.0 10.0
30%
40%
50%
20%
10%
60%A
DJU
STE
D R
OE
(%)
EV/EBITDA
0 10.0 15.05.0 20.0 30.0 35.025.0 40.00%
15%
10%
5%
20%
25%
30%N
UM
BE
R O
F C
OM
PAN
IES
EV/EBITDA
0
18
12
14
16
10
6
8
4
2
32.4 - 39.625.3 - 32.418.1 - 25.310.9 - 18.13.8 - 10.9
EV/Sales EV/EBITDA P/E P/B
Number of Observations 47 47 47 47
Number of Outliers 0 0 2 0
Negative Multiples 0 0 1 0
High 9.1x 39.5x 65.9x 14.4x
Mean 2.9x 16.7x 27.3x 4.9x
Median 2.5x 14.2x 22.2x 3.5x
Low 0.6x 3.8x 4.4x 0.6x
Low Quartile 1.3x 9.7x 14.8 2.0x
Upper Quartile 3.9x 22.7x 28.2x 7.1x
29Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Industry Multiples in India - February 2019 - Sixth Edition
Materials: Chemicals – Continued
NU
MB
ER
OF
CO
MPA
NIE
S
P/E
0
6
4
2
12
20
16
18
14
10
8
53.5 - 65.941.1 - 53.528.7 - 41.116.3 - 28.73.9 - 16.3
NU
MB
ER
OF
CO
MPA
NIE
S
P/B
0
8
12
16
18
24
4
28
11.7 - 15.58.9 - 11.7 6.1 - 8.9 3.3 - 6.10.5 - 3.3
0
– Q8 – Q7 – Q6 – Q5 – Q4 – Q3 – Q2 – Q1 12/31/2018
6.0
3.0
1.0
2.0
4.0
5.0
0
35.0
Median multiples
P/B
& E
V/S
ALE
S
EV
/EB
ITD
A &
P/E
P/B EV/Sales P/E EV/EBITDA
25.0
20.0
30.0
5.0
10.0
15.0
An industry must have a minimum of five company participants to be considered for analysis. For all reported multiples in India, we have considered all the S&P BSE 500 Index constituents. The S&P BSE 500 Index is comprised of the top 500 companies based on Float Adjusted Market Capitalization that are publicly-traded on the Bombay Stock Exchange (BSE). The S&P BSE 500 is designed to be a broad representation of the Indian market.
Any outliers including negative multiples in the industry have been excluded from the above analysis.
EV = Enterprise Value = Market value of equity on diluted basis plus book value of debt plus preferred stock less cash and cash equivalents, Sales = Revenue for latest 12 months, EBITDA = Earnings before interest, taxes, depreciation and amortization for latest 12 months, P/E = Share price divided by earnings per share on a diluted basis, P/B = Share price / book value per share on a diluted basis where book value per share equals total book value of equity divided by diluted number of shares. Return on equity = Net income / shareholder’s equity. Adjusted ROE is calculated as follows: ROE x (1-dividend payout ratio), Market value of equity is computed using diluted number of shares.
Financial information of companies reflect the latest available information based on company filings as of December 31, 2018.
Source: Data derived from Standard & Poor’s Capital IQ database.
Industry Multiples in India - February 2019 - Sixth Edition
30Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Materials: Construction Materials
NU
MB
ER
OF
CO
MPA
NIE
S
EV/Sales
0
4
2
12
6
8
10
5.1 - 6.24.0 - 5.12.9 - 4.0 1.8 - 2.90.7 - 1.8
0%
EB
ITD
A M
AR
GIN
(%)
EV/Sales
0 2.01.0 3.0 6.05.04.0 7.0
5%
15%
25%
20%
10%
30%A
DJU
STE
D R
OE
(%)
EV/EBITDA
0 10.0 15.05.0 20.0 25.0 30.0-0%
18%
8%
10%
4%
6%
2%
12%
14%
16%
20%N
UM
BE
R O
F C
OM
PAN
IES
EV/EBITDA
0
6
4
2
20.4 - 24.2 16.6 - 20.4 12.9 - 16.69.1 - 12.95.3 - 9.1
EV/Sales EV/EBITDA P/E P/B
Number of Observations 15 15 15 15
Number of Outliers 0 0 2 0
Negative Multiples 0 0 1 1
High 6.2x 24.1x 62.8x 6.7x
Mean 2.2x 12.2x 34.5x 3.0x
Median 1.8x 10.9x 27.6x 3.1x
Low 0.7x 5.3x 13.4x 0.6x
Low Quartile 1.4x 8.8x 22.0x 1.9x
Upper Quartile 2.5x 14.1x 51.9x 3.8x
Industry Multiples in India - February 2019 - Sixth Edition
31Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Materials: Construction Materials – Continued
NU
MB
ER
OF
CO
MPA
NIE
S
P/E
0
6
4
2
8
51.9 - 62.841.0 - 51.930.2 - 41.019.3 - 30.28.4 - 19.3
NU
MB
ER
OF
CO
MPA
NIE
S
P/B
0
2
4
6
5.5 - 6.8 4.3 - 5.53.0 - 4.31.7 - 3.00.5 - 1.7
0
– Q8 – Q7 – Q6 – Q5 – Q4 – Q3 – Q2 – Q1 12/31/2018
4.0
1.5
3.0
2.5
3.5
0.5
1.0
2.0
0
50.0
Median multiples
P/B
& E
V/S
ALE
S
EV
/EB
ITD
A &
P/E
P/B EV/Sales P/E EV/EBITDA
20.0
40.0
30.0
10.0
An industry must have a minimum of five company participants to be considered for analysis. For all reported multiples in India, we have considered all the S&P BSE 500 Index constituents. The S&P BSE 500 Index is comprised of the top 500 companies based on Float Adjusted Market Capitalization that are publicly-traded on the Bombay Stock Exchange (BSE). The S&P BSE 500 is designed to be a broad representation of the Indian market.
Any outliers including negative multiples in the industry have been excluded from the above analysis.
EV = Enterprise Value = Market value of equity on diluted basis plus book value of debt plus preferred stock less cash and cash equivalents, Sales = Revenue for latest 12 months, EBITDA = Earnings before interest, taxes, depreciation and amortization for latest 12 months, P/E = Share price divided by earnings per share on a diluted basis, P/B = Share price / book value per share on a diluted basis where book value per share equals total book value of equity divided by diluted number of shares. Return on equity = Net income / shareholder’s equity. Adjusted ROE is calculated as follows: ROE x (1-dividend payout ratio), Market value of equity is computed using diluted number of shares.
Financial information of companies reflect the latest available information based on company filings as of December 31, 2018.
Source: Data derived from Standard & Poor’s Capital IQ database.
32Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Industry Multiples in India - February 2019 - Sixth Edition
Materials:Metals and Mining
NU
MB
ER
OF
CO
MPA
NIE
S
EV/Sales
0
4
6
7
8
3
1
2
9
5
4.2 - 5.23.1 - 4.22.1 - 3.1 1.0 - 2.1 0.0 - 1.0
0%
EB
ITD
A M
AR
GIN
(%)
EV/Sales
0 2.01.0 3.0 4.0 6.05.0
10%
30%
50%
40%
20%
60%A
DJU
STE
D R
OE
(%)
EV/EBITDA
0 8.0 10.06.0 12.04.02.0 14.0 16.0 18.00%
10%
5%
35%
40%
25%
30%
15%
20%
45%N
UM
BE
R O
F C
OM
PAN
IES
EV/EBITDA
0
12
4
6
8
10
2
13.8 - 16.9 10.7 - 13.8 7.6 - 10.74.5 - 7.61.4 - 4.5
EV/Sales EV/EBITDA P/E P/B
Number of Observations 19 19 19 19
Number of Outliers 0 0 4 0
Negative Multiples 0 1 2 0
High 5.2x 16.9x 29.1x 4.9x
Mean 1.6x 7.6x 11.4x 1.9x
Median 1.0x 6.2x 9.1x 1.3x
Low 0.5x 2.4x 3.3x 0.5x
Low Quartile 0.8x 5.4x 8.0x 0.9x
Upper Quartile 2.3x 8.9x 14.3x 3.1x
33Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Industry Multiples in India - February 2019 - Sixth Edition
Materials:Metals and Mining – Continued
NU
MB
ER
OF
CO
MPA
NIE
S
P/E
0
3
2
1
6
5
4
23.8 - 29.118.6 - 23.813.3 - 18.68.1 - 13.32.8 - 8.1
NU
MB
ER
OF
CO
MPA
NIE
S
P/B
0
6
8
10
2
4
12
4.0 - 4.93.1 - 4.02.2- 3.11.3 - 2.20.4 - 1.3
0
– Q8 – Q7 – Q6 – Q5 – Q4 – Q3 – Q2 – Q1 12/31/2018
2.5
1.5
0.5
1.0
2.0
0
25.0
Median multiples
P/B
& E
V/S
ALE
S
EV
/EB
ITD
A &
P/E
P/B EV/Sales P/E EV/EBITDA
20.0
5.0
10.0
15.0
An industry must have a minimum of five company participants to be considered for analysis. For all reported multiples in India, we have considered all the S&P BSE 500 Index constituents. The S&P BSE 500 Index is comprised of the top 500 companies based on Float Adjusted Market Capitalization that are publicly-traded on the Bombay Stock Exchange (BSE). The S&P BSE 500 is designed to be a broad representation of the Indian market.
Any outliers including negative multiples in the industry have been excluded from the above analysis.
EV = Enterprise Value = Market value of equity on diluted basis plus book value of debt plus preferred stock less cash and cash equivalents, Sales = Revenue for latest 12 months, EBITDA = Earnings before interest, taxes, depreciation and amortization for latest 12 months, P/E = Share price divided by earnings per share on a diluted basis, P/B = Share price / book value per share on a diluted basis where book value per share equals total book value of equity divided by diluted number of shares. Return on equity = Net income / shareholder’s equity. Adjusted ROE is calculated as follows: ROE x (1-dividend payout ratio), Market value of equity is computed using diluted number of shares.
Financial information of companies reflect the latest available information based on company filings as of December 31, 2018.
Source: Data derived from Standard & Poor’s Capital IQ database.
Industry Multiples in India - February 2019 - Sixth Edition
34Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Pharmaceuticals and Biotechnology
NU
MB
ER
OF
CO
MPA
NIE
S
EV/Sales
0
8
12
10
6
2
4
14
8.6 - 10.36.8 - 8.65.1 - 6.83.3 - 5.11.6 - 3.3
0%
EB
ITD
A M
AR
GIN
(%)
EV/Sales
0 4.02.0 6.0 8.0 10.0 12.0
30%
40%
50%
20%
10%
60%A
DJU
STE
D R
OE
(%)
EV/EBITDA
0 10.0 15.05.0 20.0 25.0 30.00%
20%
10%
5%
30%
35%
25%
15%
40%N
UM
BE
R O
F C
OM
PAN
IES
EV/EBITDA
0
10
4
6
8
2
24.3 - 28.320.4 - 24.316.4 - 20.412.4 - 16.48.5 - 12.4
EV/Sales EV/EBITDA P/E P/B
Number of Observations 32 32 32 32
Number of Outliers 1 4 6 2
Negative Multiples 0 1 4 0
High 10.2x 28.2x 47.7x 9.0x
Mean 4.2x 16.8x 26.9x 4.0x
Median 3.7x 15.7x 23.8x 3.5x
Low 1.6x 8.5x 9.5x 1.6x
Low Quartile 2.7x 12.9x 18.5x 2.7x
Upper Quartile 5.2x 21.6x 36.7x 4.7x
Industry Multiples in India - February 2019 - Sixth Edition
35Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Pharmaceuticals and Biotechnology – Continued
NU
MB
ER
OF
CO
MPA
NIE
S
P/E
0
6
8
4
2
10
38.5 - 47.729.2 - 38.520.0 - 29.210.8 - 20.01.5 - 10.8
NU
MB
ER
OF
CO
MPA
NIE
S
P/B
0
6
8
10
2
4
12
7.6 - 9.16.1 - 7.64.5 - 6.13.0 - 4.51.5 - 3.0
0
– Q8 – Q7 – Q6 – Q5 – Q4 – Q3 – Q2 – Q1 12/31/2018
5.0
3.0
1.0
2.0
4.0
0
40.0
Median multiples
P/B
& E
V/S
ALE
S
EV
/EB
ITD
A &
P/E
P/B EV/Sales P/E EV/EBITDA
20.0
25.0
30.0
35.0
5.0
10.0
15.0
An industry must have a minimum of five company participants to be considered for analysis. For all reported multiples in India, we have considered all the S&P BSE 500 Index constituents. The S&P BSE 500 Index is comprised of the top 500 companies based on Float Adjusted Market Capitalization that are publicly-traded on the Bombay Stock Exchange (BSE). The S&P BSE 500 is designed to be a broad representation of the Indian market.
Any outliers including negative multiples in the industry have been excluded from the above analysis.
EV = Enterprise Value = Market value of equity on diluted basis plus book value of debt plus preferred stock less cash and cash equivalents, Sales = Revenue for latest 12 months, EBITDA = Earnings before interest, taxes, depreciation and amortization for latest 12 months, P/E = Share price divided by earnings per share on a diluted basis, P/B = Share price / book value per share on a diluted basis where book value per share equals total book value of equity divided by diluted number of shares. Return on equity = Net income / shareholder’s equity. Adjusted ROE is calculated as follows: ROE x (1-dividend payout ratio), Market value of equity is computed using diluted number of shares.
Financial information of companies reflect the latest available information based on company filings as of December 31, 2018.
Source: Data derived from Standard & Poor’s Capital IQ database.
36Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Industry Multiples in India - February 2019 - Sixth Edition
Real Estate
NU
MB
ER
OF
CO
MPA
NIE
S
EV/Sales
0
1
2
3
4
5
7.1 - 8.75.4 - 7.13.8 - 5.42.2 - 3.80.5 - 2.2
0%
EB
ITD
A M
AR
GIN
(%)
EV/Sales
0 2.01.0 3.0 4.0 5.0 6.0 8.0 9.07.0 10.0
10%
30%
40%
60%
70%
50%
20%
80%A
DJU
STE
D R
OE
(%)
EV/EBITDA
0 10.0 15.0 20.0 30.05.0 25.0 35.00%
10%
5%
30%
40%
45%
35%
25%
15%
20%
50%N
UM
BE
R O
F C
OM
PAN
IES
EV/EBITDA
0
6
4
2
27.3 - 33.221.3 - 27.315.4 - 21.39.5 - 15.43.5 - 9.5
EV/Sales EV/EBITDA P/E P/B
Number of Observations 11 11 11 11
Number of Outliers 0 0 1 1
Negative Multiples 0 1 0 0
High 8.6x 33.2x 30.9x 3.0x
Mean 5.3x 16.8x 16.9x 1.8x
Median 6.6x 14.3x 18.5x 2.0x
Low 1.5x 3.5x 2.0x 0.9x
Low Quartile 3.0x 12.4x 14.8x 1.3x
Upper Quartile 7.2x 23.9x 20.9x 2.1x
37Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
Industry Multiples in India - February 2019 - Sixth Edition
Real Estate – Continued
NU
MB
ER
OF
CO
MPA
NIE
S
P/E
0
2
3
1
4
25.1 - 31.019.2 - 25.113.3 - 19.27.4 - 13.31.5 - 7.4
NU
MB
ER
OF
CO
MPA
NIE
S
P/B
0
2
4
6
2.6 - 3.12.2 - 2.61.7 - 2.21.3 - 1.70.8 - 1.3
0
– Q8 – Q7 – Q6 – Q5 – Q4 – Q3 – Q2 – Q1 12/31/2018
9.0
3.0
1.0
2.0
4.0
6.0
5.0
7.0
8.0
0
40.0
Median multiples
P/B
& E
V/S
ALE
S
EV
/EB
ITD
A &
P/E
P/B EV/Sales P/E EV/EBITDA
20.0
25.0
30.0
35.0
5.0
10.0
15.0
An industry must have a minimum of five company participants to be considered for analysis. For all reported multiples in India, we have considered all the S&P BSE 500 Index constituents. The S&P BSE 500 Index is comprised of the top 500 companies based on Float Adjusted Market Capitalization that are publicly-traded on the Bombay Stock Exchange (BSE). The S&P BSE 500 is designed to be a broad representation of the Indian market.
Any outliers including negative multiples in the industry have been excluded from the above analysis.
EV = Enterprise Value = Market value of equity on diluted basis plus book value of debt plus preferred stock less cash and cash equivalents, Sales = Revenue for latest 12 months, EBITDA = Earnings before interest, taxes, depreciation and amortization for latest 12 months, P/E = Share price divided by earnings per share on a diluted basis, P/B = Share price / book value per share on a diluted basis where book value per share equals total book value of equity divided by diluted number of shares. Return on equity = Net income / shareholder’s equity. Adjusted ROE is calculated as follows: ROE x (1-dividend payout ratio), Market value of equity is computed using diluted number of shares.
Financial information of companies reflect the latest available information based on company filings as of December 31, 2018.
Source: Data derived from Standard & Poor’s Capital IQ database.
38Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18
MediaA S O F D E C E M B E R 31 , 2 0 18
Healthcare Facilities and ServicesA S O F S E P T E M B E R 3 0 , 2 0 18
An industry must have a minimum of 5 company participants to be considered for analysis. For all reported multiples in India, we have considered all of the S&P BSE 500 Index constituents. The S&P BSE 500 Index is comprised of the top 500 companies based on float adjusted market capitalization that are publicly-traded on the Bombay Stock Exchange (BSE). The S&P BSE 500 is designed to be a broad representation of the Indian market. Source: Data derived from Standard & Poor’s Capital IQ database. Any outliers including negative multiples in the industry have been excluded from above analysis.
EV = Enterprise Value = Market value of equity on diluted basis plus book value of debt plus preferred stock less cash and cash equivalents, Sales = Revenue for latest 12 months, EBITDA = Earnings before interest, taxes, depreciation and amortization for latest 12 months, P/E = Share price divided by earnings per share on a diluted basis, P/B = Share price/book value per share on a diluted basis where book value per share equals total book value of equity divided by diluted number of shares, ROE (Return on Equity) = Net income/equity shareholder’s equity, Adjusted ROE is calculated using as ROE x (1-dividend payout ratio), Market value of equity is computed using diluted number of shares.
Financial information of companies reflect the latest available information based on company filings as of Decemner 31, 2018.
EV/Sales EV/EBITDA P/E P/B
Number of Observations 7 7 7 7
Number of Outliers 1 0 0 1
Negative Multiples 0 0 1 0
High 2.8x 20.5x 41.6x 9.5x
Mean 1.7x 12.9x 24.4x 5.7x
Median 1.9x 11.6x 22.0x 5.2x
Low 0.2x 2.9x 15.3x 2.4x
Low Quartile 1.1x 8.4x 16.7x 4.2x
Upper Quartile 2.6x 20.4x 31.9x 8.4x
EV/Sales EV/EBITDA P/E P/B
Number of Observations 5 5 5 5
Number of Outliers 0 1 1 0
Negative Multiples 0 0 0 0
High 7.5x 18.7x 30.3x 5.6x
Mean 4.1x 11.6x 17.5x 3.4x
Median 2.9x 11.5x 19.9x 3.3x
Low 1.4x 0.0x 0.0x 0.9x
Low Quartile 2.8x 8.4x 14.0x 1.9x
Upper Quartile 6.8x 17.4x 28.0x 5.4x
EV/Sales EV/EBITDA P/E P/B
Number of Observations 7 7 7 7
Number of Outliers 0 2 4 0
Negative Multiples 0 0 2 0
High 7.2x 26.4x 39.1x 8.6x
Mean 3.3x 20.9x 29.9x 4.1x
Median 2.3x 20.5x 30.2x 3.8x
Low 1.4x 14.9x 20.4x 1.4x
Low Quartile 1.8x 17.6x 25.3x 1.9x
Upper Quartile 6.0x 25.7x 39.1x 6.3x
Other IndustriesAutomobile Manufacturers
Industry Multiples in India - February 2019 - Sixth Edition
39Duff & Phelps
A S O F D E C E M B E R 31 , 2 0 18EV/Sales EV/EBITDA P/E P/B
Number of Observations 8 8 8 8
Number of Outliers 1 1 3 2
Negative Multiples 0 0 2 0
High 5.8x 10.8x 11.6x 1.2x
Mean 3.0x 8.9x 8.8x 0.8x
Median 2.9x 9.3x 8.6x 0.8x
Low 0.8x 5.3x 5.5x 0.3x
Low Quartile 2.3x 7.8x 7.7x 0.6x
Upper Quartile 3.6x 10.7x 11.1x 1.0x
Other Diversified Financial ServicesA S O F D E C E M B E R 31 , 2 0 18
An industry must have a minimum of five company participants to be considered for analysis. For all reported multiples in India, we have considered all the S&P BSE 500 Index constituents. The S&P BSE 500 Index is comprised of the top 500 companies based on Float Adjusted Market Capitalization that are publicly-traded on the Bombay Stock Exchange (BSE). The S&P BSE 500 is designed to be a broad representation of the Indian market.
Any outliers including negative multiples in the industry have been excluded from the above analysis.
EV = Enterprise Value = Market value of equity on diluted basis plus book value of debt plus preferred stock less cash and cash equivalents, Sales = Revenue for latest 12 months, EBITDA = Earnings before interest, taxes, depreciation and amortization for latest 12 months, P/E = Share price divided by earnings per share on a diluted basis, P/B = Share price / book value per share on a diluted basis where book value per share equals total book value of equity divided by diluted number of shares. Return on equity = Net income / shareholder’s equity. Adjusted ROE is calculated as follows: ROE x (1-dividend payout ratio), Market value of equity is computed using diluted number of shares.
Financial information of companies reflect the latest available information based on company filings as of December 31, 2018.
Source: Data derived from Standard & Poor’s Capital IQ database.
P/B P/E P/TBV Market Cap/Revenue
Number of Observations 10 10 10 10
Number of Outliers 0 1 1 1
Negative Multiples 0 0 0 0
High 17.5x 33.6x 15.2x 10.6x
Mean 4.7x 20.1x 4.6x 4.3x
Median 2.5x 19.6x 3.0x 2.9x
Low 0.5x 2.3x 0.5x 0.2x
Low Quartile 2.2x 14.6x 2.6x 0.7x
Upper Quartile 4.8x 31.3x 5.5x 6.8x
Other Industries – ContinuedIndependent Power and Renewable Electricity Producers
Industry Multiples in India - February 2019 - Sixth Edition
Industry Definitions
40Duff & Phelps
The industry classification for the companies represented in this report is based on the 2017 Global Industry Classification
Standard®(GICS®). Below represents a brief description of sub-industries which are forming part of a particular industry based
on the 2017 GICS® guidelines.
Our analysis reflects the recent changes to the GICS structure by MSCI, effective from September 28, 2018.
Consumer Discretionary
Auto Parts & Equipment Companies that manufacture parts and accessories for automobiles and motorcycles including and tires and rubber.
Automobile Manufacturers Companies that produce mainly passenger automobiles and light trucks. Also includes companies produce motorcycles, scooters or three-wheelers.
Media Erstwhile Broadcasting, Cable and Satellite Industry.
Owners and operators of television or radio broadcasting systems, including programming including radio and television, broadcasting, radio networks, and radio stations. Providers of cable or satellite television and satellite radio services. Includes cable networks and program distribution.
Apparel Manufacturers of apparel, accessories and luxury goods. Includes companies primarily producing designer handbags, wallets, luggage, jewelry and watches and manufacturers of textile and related products
Household Appliances Manufacturers of electric household appliances and related products. Includes manufacturers of power and hand tools, including garden improvement tools but excludes TVs and other audio and video products
Financial Services
Banks Commercial diverse with a national footprint whose revenues are derived primarily from conventional banking operations, have significant business activity in retail banking and small and medium corporate lending, and provide a diverse range of financial services. This also includes regional banks that tend to operate in limited geographic regions.
Consumer Finance Providers of consumer finance services, including personal credit, credit cards, lease financing, travel-related money services and pawn shops.
Other Diversified Financial Services
Financial exchanges for securities, commodities, derivatives and other financial instruments, and providers of financial decision support tools and products including ratings agencies. Providers of a diverse range of financial services and/or with some interest in a wide range of financial services including banking, insurance and capital markets, but with no dominant business line.
Specialized Finance Providers of specialized financial services not classified elsewhere. Companies in this sub-industry derive a majority of revenue from one specialized line of business. Includes, but not limited to, commercial financing companies, central banks, leasing institutions, factoring services, and specialty boutiques. Financial institutions providing mortgage and mortgage related services. These include financial institutions whose assets are primarily mortgage related, savings & loans, mortgage lending institutions, building societies and companies providing insurance to mortgage banks
Healthcare
Healthcare Facilities and Services
Owners and operators of health care facilities, including hospitals, nursing homes, rehabilitation and retirement centers and animal hospitals. Providers of patient health care services not classified elsewhere. Includes dialysis centers, lab testing services, and pharmacy management services. Also includes companies providing business support services to health care providers, such as clerical support services, collection agency services, staffing services and outsourced sales & marketing services.
Pharmaceuticals and Biotechnology
Companies engaged in the research, development or production of pharmaceuticals. Includes veterinary drugs. Companies primarily engaged in the research, development, manufacturing and/or marketing of products based on genetic analysis and genetic engineering. Includes companies specializing in protein-based therapeutics to treat human diseases.
Global Industry Classification Standard® (GICS®) was developed by S&P Dow Jones Indices, an independent international financial data and investment services company and a leading provider of global equity indices, and MSCI, a premier independent provider of global indices and benchmark-related products and services
Industry Multiples in India - February 2019 - Fifth Edition
Industry Definitions — Continued
41Duff & Phelps
Materials
Chemicals Companies that primarily produce industrial chemicals and basic chemicals. Including but not limited to plastics, synthetic fibers, films, commodity-based paints and pigments, explosives and petrochemicals. Producers of fertilizers, pesticides, potash or other agriculture-related chemicals including industrial gases and other diversified range of chemical products.
Construction Material Manufacturers of construction materials including sand, clay, gypsum, lime, aggregates, cement, concrete and bricks.
Metals and Mining Producers of aluminum and related products, including companies that mine or process bauxite and companies that recycle aluminum to produce finished or semi-finished products. Companies engaged in copper ore mining, production of iron and steel and related products, including metallurgical (coking) coal mining used for steel production and having other diversified mining operations but excluding gold, silver and other precious metals.
Utilities
Electric & Gas Utilities Companies that produce or distribute electricity including both nuclear and non-nuclear facilities. Also, includes companies whose main charter is to distribute and transmit natural and manufactured gas.
Independent Power and Renewable Electricity Producers
Companies that operate as Independent Power Producers (IPPs), Gas & Power Marketing & Trading Specialists and/or Integrated Energy Merchants. Companies that engage in generation and distribution of electricity using renewable sources, including, but not limited to, companies that produce electricity using biomass, geothermal energy, solar energy, hydropower, and wind power.
All Other Industries
Energy Companies primarily involved in the production and mining of coal, related products and other consumable fuels related to the generation of energy. Companies engaged in the exploration and production of oil and gas. Companies engaged in the refining and marketing of oil, gas and/or refined products
Household and Personal Products
Producers of packaged foods including dairy products, fruit juices, meats, poultry, fish and pet foods. Producers of non-durable household products, including detergents, soaps, diapers and other tissue and household paper products. Manufacturers of personal and beauty care products, including cosmetics and perfumes.
Industrial Machinery Manufacturers of industrial machinery and industrial components. Includes companies that manufacture presses, machine tools, compressors, pollution control equipment, elevators, escalators, insulators, pumps, roller bearings and other metal fabrications.
*Internet Services and Infrastructure Erstwhile was part of Internet Software & Services Industry
Companies providing services and infrastructure for the internet industry including data centers and cloud networking and storage infrastructure. Also includes companies providing web hosting services. Excludes companies classified in the Software Industry.
*Application Software Erstwhile was part of Internet Software & Services Industry
Companies engaged in developing and producing software designed for specialized applications for the business or consumer market. Includes enterprise and technical software, as well as cloud-based software. Excludes companies classified in the Interactive Home Entertainment Sub-Industry. Also excludes companies producing systems or database management software classified in the Systems Software Sub-Industry.
Real Estate Companies that develop real estate and sell the properties after development and also engaged in diverse spectrum of real estate activities including real estate development & sales, real estate management or real estate services, but with no dominant business line.
Industry Multiples in India - February 2019 - Fifth Edition
Contributors
42Duff & Phelps
Varun Gupta is the Country Managing Director for Duff & Phelps India. He set up the firm’soperations in India and is responsible for its overall growth and strategic direction. He is alsothe APAC Leader for Valuation Services for the firm. Varun has over 20 years of experience in valuation and financial advisory services. He has advised clients across a wide range of industries including IT/ ITES, energy (conventional as well as renewable), pharma and life sciences, infrastructure, internet and eCommerce, telecom, sports, and media and entertainment. His prior experience includes stints with the valuation and financial advisory arms of Deloitte and PricewaterhouseCoopers.He is a regular and sought-after speaker on the valuation of trademarks, intangible assets,early stage companies and eCommerce companies and has spoken at forums organized byASSOCHAM, ICAI, INTA, IVCA, VCCircle and other similar bodies. He is also regularlyquoted by the financial press on evolving issues related to valuation of brands, celebritiesand sports franchises.
Abhishek is a managing director in the Mumbai office and part of the national managementin India. He is responsible for overseeing key engagements, relationships and strategicinitiatives for the Indian operations. He has more than a decade of experience in managing a range of financial advisory engagements across various industries. He has provided financial advisory services to clients for a number of purposes including, mergers and acquisitions, restructuring, negotiations, valuation settlement of disputes, accounting and tax reporting, and strategic assessment. Abhishek has been speaker at conferences organized by forums such as ASSOCHAM and VC Circle on valuation and M&A related topics. Abhishek’s prior work experience includes stints with the corporate finance and advisory divisions of Deloitte and Grant Thornton. At Deloitte he was part of the Industrial M&A team. Abhishek holds a Master of Business Administration degree from INSEAD (France).
Santosh is a Managing Director at Duff & Phelps and is based in Bangalore. Santosh is apart of national management of the India office. He is responsible for overseeing keyengagements, relationships and strategic initiatives for the Indian operations. Santosh has more than 15 years of experience in valuation and financial advisory services.In the last 15 years, Santosh has managed and has provided a range of financial advisoryservices including due diligence, valuation, IFRS and US GAAP assignments, business planreview, M&A, internal audit, accounting assistance and risk advisory services.He previously led the Financial Instrument Valuation practice at American Appraisal (AA)India earlier and used to chair the global Complex Financial Instruments Valuationcommittee in AA. In his earlier stints, he was South India Valuation leader in Deloitte andwas part of the founding team in Grant Thornton Bangalore.He has been a speaker at several seminars and workshops, including those organized bythe Institute of Chartered Accountants of India (ICAI). He was an International Keynotespeaker in a conference on business valuation organized by RICS in London.
Varun Gupta
Managing Director India and
APAC Leader for Valuation
Services
Abhishek PandeyManaging Director, Mumbai
Abhishek.Pandey@duff
andphelps.com
Santosh N Managing Director, Bangalore
Industry Multiples in India - February 2019 - Fifth Edition
Industry Multiples in India - February 2019 - Sixth EditionIndustry Multiples in India - April 2018 - Third Edition
43Duff & Phelps
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E D I TO R I A L T E A M
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