This report provides a financial analysis of American Express Company for the period of 2007-2011. It includes income statements, balance sheets, cash flow statements, ratio analysis, and valuation metrics. Key findings are that revenues grew 7.59% to $32.3 billion in 2011, net income grew 21.64% to $4.93 billion, and return on equity was strong at 26.26% despite a challenging macroeconomic environment. American Express maintains a robust capital structure and profitable business model focused on travel and financial services.

1. SRI KRISHNA CONSULTING
COMPANY FINALYTICS
American Express Co
Exclusive Fundamental Analysis of US Stocks
Prepared and Edited By‐
SRI KRISHNA CONSULTING
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Disclaimer
The information, opinions, estimates and forecasts contained in this document have been arrived at or obtained from public sources believed to be
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Monday, June 04, 2012

2. Description Page
Summary 3
Latest Result 3
Valuation Matrix 3
ROE Analysis 3
Income Statement 4
Balance Sheet 5
Cash flow Statement 6
Quarterly Result 6
Growth Analysis 7
Comparative Analysis 8
Income Statement 8
Balance Sheet 8
Index Analysis 9
Income Statement 9
Balance Sheet 9
Ratio Analysis 10
Annual 10
Quarterly 11
TTM Analysis 11
Valuation and Projection 12
CONTENT Technical Analysis 13
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Page 2

3. Summary
Latest Results At a glance
Annual Quarterly TTM Business Summary
% Change % Change % Change
12/31/2011 2012 Q1 2012 Q1
Sales 32282.00 7.59 8188.00 (1.55) 32846.00 1.75
American Express Company is primarily engaged in the
EBITDA 10005.00 9.61 2601.00 0.04 10243.00 0.48
business of providing travel related services, financial
Adjusted PAT 4899.00 20.75 1256.00 0.05 4978.00 1.61
advisory services and international banking services
Reported PAT 4935.00 21.64 1256.00 0.05 5014.00 1.60
throughout the world.
EPS 3.77 30.83 1.07 0.06 4.27 1.35
Credit Services
Industry
Valuation Data Latest 10 K filing 12/31/2011
Latest 10 Q Filing 3/31/2012
Company Industry Next Report Date 7/18/2012
P/E(TTM) 12.69 27.46 No. of Employee 62,500
No. Equity Share
P/E(Forward) 12.33 NA 1173
(Million)
PEG Ratio 1.05 NA Price 53.43
Price/Sales 1.87 7.33 Market Cap (Million) 62673.39
Dividend Yield(%) 1.50 1.85 Total Debt 126497.00
Price/Book 3.13 4.15 Enterprise Value 189170.39
Price/Free Cash Flow 5.43 0.95
Price/Enterprise Value 0.33 NA Market Data
Exchange Traded NYSE
Ticker AXP
ROE Analysis 52 Week High 61.42
52 Week Low 41.3
Particulars 2007 2008 2009 2010 2011 Short Interest Ratio 2.29
Reported PAT / PBT 0.70 0.75 0.75 0.68 0.71 Beta 1.83
Normalized PAT / PBT 0.59 0.67 0.53 0.58 0.65 Average Target Price 63.33
PBT / PBIT 0.59 0.50 0.56 0.71 0.75 One Year Return 8.42
PBIT / Sales 0.31 0.22 0.19 0.28 0.29 Three Months Return 0.43
Sales / Total Assets 0.25 0.29 0.23 0.22 0.23 One Month Return ‐11.1
Total Assets / Net
Worth(Without Treasury Analyst Rating
Stock) 1126.50 917.60 789.52 823.07 742.02
Reported ROE (Excluding
Treasury Stock) 36.38 22.79 14.79 25.00 26.26
Normalized ROE(Excluding Strong
Treasury Stock) 30.47 20.38 10.39 21.43 23.96 Buy
11 Hold
Reported ROE (Including
Treasury Stock) NA NA NA NA NA 8
Normalized ROE(Including
Treasury Stock) NA NA NA NA NA
ROE
30.47 83.57
23.96
21.43 Ownership (%)
20.38
42
10.39
0.00 0.00 0.00 0.00 0.00 0.92 1
2007 2008 2009 2010 2011 Institutional Top 10 Mutual Fund 5%/Insider
Ownership Institutions Ownership Ownership
(%) (%) (%) (%)
Normalized ROE(Excluding Treasury Stock) Normalized ROE(Including Treasury Stock)
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Page 3

4. Income Statement
Particulars (in Millions) 2007 2008 2009 2010 2011
Sales 31540.00 31920.00 26543.00 30005.00 32282.00
Operating Income
31,540 31,920 32,282 12000.00
cost of goods sold (601.00) (629.00) (930.00) (741.00) (729.00) 30,005
26,543 10000.00
Gross profit 32141.00 32549.00 27473.00 30746.00 33011.00
General selling and
administrative expenses 17352.00 20010.00 19000.00 18754.00 19899.00 8000.00
Research and development
expenses 0.00 0.00 0.00 0.00 0.00 6000.00
other operating
income/(Expenses) (4513.00) (4774.00) (2495.00) (2864.00) (3107.00) 4000.00
Operating profit 10276.00 7765.00 5978.00 9128.00 10005.00 2000.00
Other non‐operating
income/(expenses) 0.00 0.00 0.00 0.00 0.00 0.00
2007 2008 2009 2010 2011
EBITDA 10276.00 7765.00 5978.00 9128.00 10005.00
Depreciation 601.00 629.00 930.00 741.00 729.00
EBIT 9675.00 7136.00 5048.00 8387.00 9276.00 Operating profit EBITDA Sales
Interest expenses 3981.00 3555.00 2207.00 2423.00 2320.00
EBT 5694.00 3581.00 2841.00 5964.00 6956.00
Tax 1568.00 710.00 704.00 1907.00 2057.00
Financial Data Mining
EAT 4126.00 2871.00 2137.00 4057.00 4899.00
Non recurring income (114.00) (172.00) (7.00) 0.00 36.00 Get a Free Quote
Reported profit 4012.00 2699.00 2130.00 4057.00 4935.00
Minority Interest 0 0 0 0 0
Profit Levels
2007 2008 2009 2010 2011
Gross profit Operating profit EBITDA EBIT EBT EAT Reported profit
Profit Margins
2011 102.26 30.99 30.99 28.73 21.55 15.18
2010 102.47 30.42 30.42 27.95 19.88 13.52
2009 103.50 22.52 22.52 19.02 10.70 8.05
2008 101.97 24.33 24.33 22.36 11.22 8.99
2007 101.91 32.58 32.58 30.68 18.05 13.08
Gross profit Operating profit EBITDA EBIT EBT EAT
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5. Balance Sheet
Particulars (in Millions) 2007 2008 2009 2010 2011
Sources of Fund
Owners Fund
Sources of Fund
Redeemable Preferred Stock 0.00 0.00 0.00 0.00 0.00
Preferred Stock ‐ Non
Redeemable, Net 0.00 0.00 0.00 0.00 0.00
Common Stock 232.00 232.00 237.00 238.00 232.00
Additional Paid‐In Capital 10164.00 10496.00 11144.00 11937.00 12217.00
Retained Earnings
(Accumulated Deficit) 1075.00 2719.00 3737.00 4972.00 7221.00
Treasury Stock ‐ Common 0.00 0.00 0.00 0.00 0.00
ESOP Debt Guarantee 0.00 0.00 0.00 0.00 0.00
Unrealized Gain (Loss) (59.00) (779.00) 479.00 50.00 287.00
Other Equity, Total (383.00) (827.00) (1191.00) (967.00) (1163.00)
Total Equity 11029.00 11841.00 14406.00 16230.00 18794.00
Loan Fund
Long Term Debt 55285.00 60041.00 52338.00 66416.00 59570.00
Capital Lease Obligations 0.00 0.00 0.00 0.00 0.00 2007 2008 2009 2010 2011
Deferred Income Tax 0.00 0.00 0.00 0.00 0.00
Total Equity Total Loan Fund
Minority Interest 0.00 0.00 0.00 0.00 0.00
Other Liabilities, Total 57928.00 36771.00 46994.00 50938.00 61091.00
Total Loan Fund 113213.00 96812.00 99332.00 117354.00 120661.00
Total Fund 124242.00 108653.00 113738.00 133584.00 139455.00
Application of Funds
Uses of funds
Fixed Assets
Property/Plant/Equipment,
Total ‐ Net 2692.00 2948.00 2782.00 2905.00 3367.00
Goodwill, Net 1508.00 2301.00 2328.00 2639.00 3172.00
Intangibles, Net 204.00 717.00 717.00 972.00 1149.00
Long Term Investments 20392.00 31499.00 39411.00 28221.00 28526.00
Note Receivable ‐ Long Term 0.00 0.00 0.00 0.00 0.00
Other Long Term Assets, Total 24965.00 3924.00 5171.00 7569.00 3459.00
Other Assets, Total 55670.00 44021.00 32174.00 60002.00 63663.00 2007 2008 2009 2010 2011
Total Fixed Assets 105431.00 85410.00 82583.00 102308.00 103336.00
Net Current Assets Total Fixed Assets
Total Current Assets 44312.00 40664.00 42562.00 44381.00 50001.00
Total Net Current Assets
Total Current Liabilities 25501.00 17421.00 11407.00 13105.00 13882.00
Total Net Current Assets 18811.00 23243.00 31155.00 31276.00 36119.00
Total Assets 124242.00 108653.00 113738.00 133584.00 139455.00
% of Total Fund
91.12 89.10 87.33 87.85 86.52
Financial Data Mining
8.88 10.90 12.67 12.15 13.48 Get a Free Quote
2007 2008 2009 2010 2011
Total Loan Fund Total Equity
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6. Cash flow Statement
Particulars (in Millions) 2007 2008 2009 2010 2011
Cash Flow
Cash from Operating Activities 8011.00 7773.00 6337.00 8935.00 10475.00
Cash from Investing Activities (16621.00) 7561.00 (6752.00) (1229.00) (491.00)
Cash from Financing Activities 15466.00 (10440.00) (4647.00) (8084.00) (1384.00)
Foreign Exchange Effects 166.00 20.00 7.00 135.00 (63.00)
Net Change in Cash 7022.00 4914.00 (5055.00) (243.00) 8537.00
2007 2008 2009 2010 2011
Net Cash ‐ Beginning Balance 8246 16740 21654 16599 16356
Net Cash ‐ Ending Balance 15268 21654 16599 16356 24893
Cash from Operating Activities
Cash from Investing Activities
Quarterly Income Statement Cash from Financing Activities
Particulars (in Millions) 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1
Sales 7624.00 8195.00 8146.00 8317.00 8188.00
cost of goods sold (227.00) (278.00) (228.00) (185.00) (254.00)
Gross profit 7851.00 8473.00 8374.00 8502.00 8442.00
General selling and
administrative expenses 4628.00 5184.00 4999.00 5177.00 5017.00
Research and development
expenses
other operating
0.00 0.00 0.00 0.00 0.00
Financial Data Mining
income/(Expenses) (671.00) (669.00) (861.00) (817.00) (824.00)
Operating profit 2552.00 2620.00 2514.00 2508.00 2601.00
Other non‐operating Get a Free Quote
income/(expenses) 0.00 0.00 0.00 0.00 0.00
EBITDA 2552.00 2620.00 2514.00 2508.00 2601.00
Depreciation 227.00 278.00 228.00 185.00 254.00
EBIT 2325.00 2342.00 2286.00 2323.00 2347.00
Interest expenses 593.00 577.00 575.00 575.00 574.00
EBT 1732.00 1765.00 1711.00 1748.00 1773.00
Tax 555.00 470.00 476.00 556.00 517.00
EAT 1177.00 1295.00 1235.00 1192.00 1256.00
Non recurring income 0.00 36.00 0.00 0.00 0.00
Reported profit 1177.00 1331.00 1235.00 1192.00 1256.00
Minority Interest 0 0 0 0 0
Sales and Profit Margin
2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1
Sales Operating Profit Margin PAT Margin
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7. Growth Analysis
Average Median
Particulars (%) 2008 2009 2010 2011 5 Year CAGR
Growth Growth
Sales 1.20 (16.85) 13.04 7.59 1.25 4.40 1.00
cost of goods sold 4.66 47.85 (20.32) (1.62) 7.64 1.52 1.04
Gross profit 1.27 (15.59) 11.91 7.37 1.24 4.32 1.01
General selling and
administrative expenses 15.32 (5.05) (1.29) 6.11 3.77 2.41 1.03
Research and development
expenses 0.00 0.00 0.00 0.00 0.00 0.00 0.00
other operating
income/(Expenses) 5.78 (47.74) 14.79 8.48 (4.67) 7.13 0.93
Operating profit (24.44) (23.01) 52.69 9.61 3.71 (6.70) 0.99
Other non‐operating
income/(expenses) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
EBITDA (24.44) (23.01) 52.69 9.61 3.71 (6.70) 0.99
Depreciation 4.66 47.85 (20.32) (1.62) 7.64 1.52 1.04
EBIT (26.24) (29.26) 66.15 10.60 5.31 (7.82) 0.99
Interest expenses (10.70) (37.92) 9.79 (4.25) (10.77) (7.48) 0.90
EBT (37.11) (20.66) 109.93 16.63 17.20 (2.02) 1.04
Tax (54.72) (0.85) 170.88 7.87 30.80 3.51 1.06
EAT (30.42) (25.57) 89.85 20.75 13.65 (2.41) 1.03
Non recurring income 50.88 (95.93) (100.00) 0.00 (36.26) (47.97) (0.79)
Reported profit (32.73) (21.08) 90.47 21.64 14.58 0.28 1.04
Minority Interest 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Growth Rates (Year on Year)
2008 2009 2010 2011
Sales Gross profit Operating profit EBITDA EBIT EBT EAT Reported profit
Profit Index (Year on Year)
2007 2008 2009 2010 2011
Sales Gross profit Operating profit EBITDA EBIT EAT Reported profit
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8. Comparative Analysis
Income Statement
Particulars (%) 2007 2008 2009 2010 2011
Sales 100.00 100.00 100.00 100.00 100.00
cost of goods sold (1.91) (1.97) (3.50) (2.47) (2.26)
Gross profit 101.91 101.97 103.50 102.47 102.26
General selling and
administrative expenses 55.02 62.69 71.58 62.50 61.64
Research and development
expenses 0.00 0.00 0.00 0.00 0.00
other operating
income/(Expenses) (14.31) (14.96) (9.40) (9.55) (9.62) Source of Fund (%) 2011
Operating profit 32.58 24.33 22.52 30.42 30.99
Other non‐operating
income/(expenses) 0.00 0.00 0.00 0.00 0.00 13%
EBITDA 32.58 24.33 22.52 30.42 30.99
Depreciation 1.91 1.97 3.50 2.47 2.26
EBIT 30.68 22.36 19.02 27.95 28.73
Interest expenses 12.62 11.14 8.31 8.08 7.19
EBT 18.05 11.22 10.70 19.88 21.55
Tax 4.97 2.22 2.65 6.36 6.37
EAT 13.08 8.99 8.05 13.52 15.18 87%
Non recurring income (0.36) (0.54) (0.03) 0.00 0.11
Reported profit 12.72 8.46 8.02 13.52 15.29
Minority Interest 0.00 0.00 0.00 0.00 0.00
Total Equity Total Loan Fund
Balance Sheet
Particulars 2007 2008 2009 2010 2011
Sources of Fund
Owners Fund
Redeemable Preferred Stock 0.00 0.00 0.00 0.00 0.00
Preferred Stock ‐ Non
Redeemable, Net 0.00 0.00 0.00 0.00 0.00
Common Stock 0.19 0.21 0.21 0.18 0.17
Additional Paid‐In Capital 8.18 9.66 9.80 8.94 8.76
Retained Earnings 0.87 2.50 3.29 3.72 5.18 Application of Fund (%)
Treasury Stock ‐ Common 0.00 0.00 0.00 0.00 0.00 2011
ESOP Debt Guarantee 0.00 0.00 0.00 0.00 0.00
Unrealized Gain (Loss) (0.05) (0.72) 0.42 0.04 0.21
Other Equity, Total (0.31) (0.76) (1.05) (0.72) (0.83)
26%
Total Equity
0 8.88 10.90 12.67 12.15 13.48
Loan Fund
Long Term Debt 44.50 55.26 46.02 49.72 42.72
Capital Lease Obligations 0.00 0.00 0.00 0.00 0.00
Deferred Income Tax 0.00 0.00 0.00 0.00 0.00 74%
Minority Interest 0.00 0.00 0.00 0.00 0.00
Other Liabilities, Total 46.63 33.84 41.32 38.13 43.81
Total Loan Fund 91.12 89.10 87.33 87.85 86.52
Total Fund 100.00 100.00 100.00 100.00 100.00
Total Fixed Assets
Uses of funds
Fixed Assets Total Net Current Assets
Property/Plant/Equipment,
Total ‐ Net 2.17 2.71 2.45 2.17 2.41
Goodwill, Net 1.21 2.12 2.05 1.98 2.27
Intangibles, Net 0.16 0.66 0.63 0.73 0.82
Long Term Investments 16.41 28.99 34.65 21.13 20.46
Note Receivable ‐ Long Term 0.00 0.00 0.00 0.00 0.00 Equity Research Report
Other Long Term Assets, Total 20.09 3.61 4.55 5.67 2.48
Other Assets, Total 44.81 40.52 28.29 44.92 45.65
Total Fixed Assets 84.86 78.61 72.61 76.59 74.10 Get a Free Quote
Net Current Assets
Total Current Assets 35.67 37.43 37.42 33.22 35.85
Total Current Liabilities 20.53 16.03 10.03 9.81 9.95
Total Net Current Assets 15.14 21.39 27.39 23.41 25.90
Total Assets 100.00 100.00 100.00 100.00 100.00
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9. Index Analysis
Income Statement
Particulars 2007 2008 2009 2010 2011
(Base Year)
Sales 100.00 101.20 84.16 95.13 102.35
cost of goods sold 100.00 104.66 154.74 123.29 121.30
Gross profit 100.00 101.27 85.48 95.66 102.71 Credit/Bond Analysis
General selling and 100.00 115.32 109.50 108.08 114.68
Research and development 0.00 0.00 0.00 0.00 0.00
other operating
Operating profit
100.00
100.00
105.78
75.56
55.28
58.17
63.46
88.83
68.85
97.36
Get a Free Quote
Other non‐operating 0.00 0.00 0.00 0.00 0.00
EBITDA 100.00 75.56 58.17 88.83 97.36
Depreciation 100.00 104.66 154.74 123.29 121.30
EBIT 100.00 73.76 52.18 86.69 95.88
Interest expenses 100.00 89.30 55.44 60.86 58.28
EBT 100.00 62.89 49.89 104.74 122.16
Tax 100.00 45.28 44.90 121.62 131.19
EAT 100.00 69.58 51.79 98.33 118.73
Non recurring income 100.00 150.88 6.14 0.00 (31.58)
Reported profit 100.00 67.27 53.09 101.12 123.01
Minority Interest 0.00 0.00 0.00 0.00 0.00
Balance Sheet
Particulars 2007 2008 2009 2010 2011
Sources of Fund
Owners Fund
Index of Loan Fund and Fixed
Redeemable Preferred Stock 0.00 0.00 0.00 0.00 0.00 Assets
Preferred Stock ‐ Non 0.00 0.00 0.00 0.00 0.00
Common Stock 100.00 100.00 102.16 102.59 100.00
Additional Paid‐In Capital 100.00 103.27 109.64 117.44 120.20
Retained Earnings 100.00 252.93 347.63 462.51 671.72
Treasury Stock ‐ Common 0.00 0.00 0.00 0.00 0.00
ESOP Debt Guarantee 0.00 0.00 0.00 0.00 0.00
Unrealized Gain (Loss) 100.00 1320.34 (811.86) (84.75) (486.44)
Other Equity, Total 100.00 215.93 310.97 252.48 303.66
Total Equity 100.00 107.36 130.62 147.16 170.41
Loan Fund
Long Term Debt 100.00 108.60 94.67 120.13 107.75 2007 2008 2009 2010 2011
Capital Lease Obligations 0.00 0.00 0.00 0.00 0.00
Deferred Income Tax 0.00 0.00 0.00 0.00 0.00
Minority Interest 0.00 0.00 0.00 0.00 0.00 Total Loan Fund Total Fixed Assets
Other Liabilities, Total 100.00 63.48 81.12 87.93 105.46
Total Loan Fund 100.00 85.51 87.74 103.66 106.58
Total Fund 100.00 87.45 91.55 107.52 112.24
Uses of funds
Fixed Assets
Property/Plant/Equipment,
Total ‐ Net 100.00 109.51 103.34 107.91 125.07
Goodwill, Net 100.00 152.59 154.38 175.00 210.34
Intangibles, Net 100.00 351.47 351.47 476.47 563.24
Long Term Investments 100.00 154.47 193.27 138.39 139.89
Note Receivable ‐ Long Term 0.00 0.00 0.00 0.00 0.00
Other Long Term Assets, Total 100.00 15.72 20.71 30.32 13.86
Other Assets, Total 100.00 79.07 57.79 107.78 114.36
Total Fixed Assets 100.00 81.01 78.33 97.04 98.01
Net Current Assets
Total Current Assets 100.00 91.77 96.05 100.16 112.84
Total Current Liabilities 100.00 68.31 44.73 51.39 54.44
Total Net Current Assets 100.00 123.56 165.62 166.26 192.01
Total Assets 100.00 87.45 91.55 107.52 112.24
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Page 9

10. Ratio Analysis‐Annual
Particulars 2007 2008 2009 2010 2011
Per Share Ratio
Normalized EPS 2.84 2.08 1.00 2.88 3.77
Basic EPS 3.40 2.33 1.54 3.37 4.14
Diluted EPS 3.34 2.32 1.54 3.35 4.12
Adjusted Cash EPS 4.03 3.03 2.63 4.04 4.78 EPS Trend
Dividend Per Share 0.63 0.72 0.72 0.72 0.72
Operating Profit per Share 8.76 6.73 5.12 7.68 8.49
Book Value Per Share
(Excluding Treasury Stocks) 9.40 10.26 12.33 13.66 15.95
Book Value Per Share
(Including Treasury Stocks) 9.40 10.26 12.33 13.66 15.95
Net Operating Income Per
Share 26.89 27.66 22.73 25.26 27.40
Free Reserve Per Share 0.92 2.36 3.20 4.19 6.13
Profitability Ratio (%) 2007 2008 2009 2010 2011
Operating Margin 32.58 24.33 22.52 30.42 30.99
Gross Profit margin 101.91 101.97 103.50 102.47 102.26
Normalized EPS Basic EPS
Net profit Margin 12.72 8.46 8.02 13.52 15.29
Normalized Net Profit Margin 10.66 7.56 5.64 11.59 13.95 Diluted EPS
Adjusted Cash Margin 14.99 10.96 11.55 15.99 17.43
Effective Tax Rate 27.54 19.83 24.78 31.98 29.57
Normalized Return on Net
Worth (Excluding Treasury
Stock) 30.47 20.38 10.39 21.43 23.96
Reported Return on Net Worth
(Excluding Treasury Stock) 36.38 22.79 14.79 25.00 26.26 Debt‐Equity Ratio
Return on Long Term Fund 3.23 2.48 1.87 3.04 3.54
Leverage Ratio
Long term Debt/Equity 5.01 5.07 3.63 4.09 3.17
Total Debt/Equity 10.27 8.18 6.90 7.23 6.42
Owned Fund as % of Total
Fund 8.88 10.90 12.67 12.15 13.48
Fixed Assets Turnover Ratio 0.30 0.37 0.32 0.29 0.31
Liquidity Ratio 2007 2008 2009 2010 2011
Current Ratio 1.74 2.33 3.73 3.39 3.60
Current Ratio (Including St.
Loans) 1.74 2.33 3.73 3.39 3.60
Long term Debt/Equity
Quick Ratio 1.74 2.33 3.73 3.39 3.60 Total Debt/Equity
Inventory Turnover Ratio NA NA NA NA NA
Payout Ratio(%)
Dividend Payout Ratio 17.94 29.12 40.01 21.37 17.47
Dividend Pay out Ratio (Cash Liquidity Ratio
Profit) 15.65 23.89 27.88 18.07 15.21
Earning Retention Ratio 82.06 70.88 59.99 78.63 82.53
Cash Earning Retention Ratio 84.35 76.11 72.12 81.93 84.79
Coverage Ratio
Adjusted Cash flow Time Total
Debt 0.07 0.08 0.06 0.08 0.09
Financial Charges Coverage 2007 2008 2009 2010 2011
Ratio (Pre Tax) 2.43 2.01 2.29 3.46 4.00
Financial Charges Coverage
Current Ratio
Ratio (Post Tax) 2.04 1.81 1.97 2.67 3.11
Current Ratio (Including St. Loans)
Quick Ratio
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11. Ratio Analysis‐Quarter
Per Share Ratio Per Share Ratio (QoQ)
Particulars 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1
Operating Income Per
Share(Rs.) 6.36 6.85 6.90 7.15 7.02
Operating Profit Per Share(Rs.)
2.13 2.19 2.13 2.16 2.23
Adjusted EPS(Rs.) 0.97 1.07 1.03 1.01 1.07
Profitability Ratio
Operating Profit Margin 33.47 31.97 30.86 30.16 31.77
EBITDA Margin 33.47 31.97 30.86 30.16 31.77 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1
EBIT Margin 30.50 28.58 28.06 27.93 28.66
PAT Margin 15.44 15.80 15.16 14.33 15.34
Operating Income Per Share(Rs.)
Operating Profit Per Share(Rs.)
Adjusted EPS(Rs.)
TTM Analysis
Particulars (in Millions) 2011 Q4 % of Sales 2012 Q1 % of Sales Changes
Sales 32282.00 100.00 32846.00 100.00 1.75
cost of goods sold (918.00) (2.84) (945.00) (2.88) 2.94
Gross profit 33200.00 102.84 33791.00 102.88 1.78
General selling and 19988.00 61.92 20377.00 62.04 1.95
Research and development
other operating
0.00
(3018.00)
0.00
(9.35)
0.00
(3171.00)
0.00
(9.65)
NA
5.07
Fundamental Analysis and
Operating profit
Other non‐operating
10194.00
0.00
31.58
0.00
10243.00
0.00
31.18
0.00
0.48
NA
Modeling
EBITDA 10194.00 31.58 10243.00 31.18 0.48
Depreciation 918.00 2.84 945.00 2.88 2.94
EBIT 9276.00 28.73 9298.00 28.31 0.24 Get a Free Quote
Interest expenses 2320.00 7.19 2301.00 7.01 (0.82)
EBT 6956.00 21.55 6997.00 21.30 0.59
Tax 2057.00 6.37 2019.00 6.15 (1.85)
EAT 4899.00 15.18 4978.00 15.16 1.61
Non recurring income 36.00 0.11 36.00 0.11 0.00
Reported profit 4935.00 15.29 5014.00 15.27 1.60
Minority Interest 0.00 0.00 0.00 0.00 NA
EPS 4.21 4.27 1.35
SPS 27.76 28.17 1.49
Profit Margins (TTM)
2012 Q1 102.88 31.18 31.18 28.31 21.30 15.16 15.27
2011 Q4 102.84 31.58 31.58 28.73 21.55 15.18 15.29
Gross profit Operating profit EBITDA EBIT EBT EAT Reported profit
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12. Valuation and Projection
Price Estimates Analyst Recommendation
Average Target 63.33
Median Target 65.00
Strong Buy Buy Hold Underperform Sell
High Target 72.00
Low Target 50.00 7% 0%
No. of Analyst 21.00
Projection 26%
Quarter Quarter Year Ending Year Ending
41%
Ending Jun‐12 Ending Sep‐12 Dec‐12 Dec‐13
26%
Sales 8108.39 8096.58 32150.00 34429.00
EPS 1.09 1.07 4.33 4.79
Growth (1.06) (0.61) (0.41) 7.09
Performance Over Industry
Particulars Company Industry
Earning Surprise
Dividend Yield 1.5 1.85
Dividend Yield ‐ 5 Year Avg. 1.74 1.61
8%
Dividend 5 Year Growth Rate 4.78 17.33 7% 7%
Payout Ratio(TTM) 17.64 18.77
Quick Ratio (MRQ) ‐‐ 0.17
Current Ratio (MRQ) ‐‐ 1.13
LT Debt to Equity (MRQ) 285.55 359.67
Total Debt to Equity (MRQ) 304.43 394.64
Interest Coverage (TTM) 3.67 0.14
2%
Gross Margin (TTM) ‐‐ 41.42
Gross Margin ‐ 5 Yr. Avg. 100 60.63
EBITD Margin (TTM) 33.07 ‐‐
EBITD ‐ 5 Yr. Avg 28.75 29.27 Q1 Q2 Q3 Q4
Operating Margin (TTM) 21.3 30.37
Operating Margin ‐ 5 Yr. Avg. 16.44 21.77
Pre‐Tax Margin (TTM) 21.3 30.54
Pre‐Tax Margin ‐ 5 Yr. Avg. 16.44 21.72
Net Profit Margin (TTM) 15.16 21.44
Net Profit Margin ‐ 5 Yr. Avg. 11.88 14.84
Effective Tax Rate (TTM) 28.86 27.98
Effective Tax Rate ‐ 5 Yr. Avg. 27.74 32.02 Excel‐VBA Based Model
Revenue/Employee (TTM) 525536 1081578 Get a Free Quote
Net Income/Employee (TTM) 79648 94373
Receivable Turnover (TTM) 0.61 23.31
Inventory Turnover (TTM) ‐‐ 11.6
Asset Turnover (TTM) 0.22 0.1
Return on Assets (TTM) 3.37 2.36
Return on Assets ‐ 5 Yr. Avg. 2.63 2.41
Return on Investment (TTM) 3.73 3.09
Return on Investment ‐ 5 Yr.
Avg. 3 3.1
Return on Equity (TTM) 26.32 19.44
Return on Equity ‐ 5 Yr. Avg. 25.84 19.79
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13. Technical Analysis
Price Chart
70 16000000
60 14000000
12000000
50
10000000
40
8000000
30
6000000
20
4000000
10 2000000
0 0
22‐Nov 1‐Feb 16‐Apr
Volume Adj Close EMA(200) EMA(50)
3.00
2.00
1.00
0.00
‐1.00
MACD Signal line
100
80
60
40
20
0
RSI(14)
Technical Indicators
Price 53.43 AS On: 6/1/2012
EMA(13) 56.85 ADX 18
EMA(26) 56.78 DX 45
Technical Analysis
Get a Free Quote
EMA(50) 55.18 +DI 14
EMA(200) 49.39 ‐DI 37
RSI(14) 28.08 %K(Fast) 0
MACD 0.06 %K(Slow) 3.85
William(%R) ‐100.00 %d(Slow) 9.82
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