PPFAS-Style DCF Valuation

Indian Equities · Buffett-Munger-Sampat Framework

"We start with an objective of delivering a 15% kind of return — a reasonable bond-beating return from equities."
— Rajeev Thakkar, CIO, PPFAS Mutual Fund

Quality FirstHigh ROCE · Moat · Low debt · Honest mgmt

Margin of SafetyIntrinsic value is a range, not a point

15% Hurdle RateBond-beating equity return as minimum bar

5–10 yr HorizonCompounders need time; avoid short-termism

Regulatory RiskBeware govt intervention in pricing power

Company Inputs

Company Name

Current Price (₹) Shares (Cr)

Base Year Financials (₹ Cr)

Revenue EBIT (Operating Profit)

Tax Rate (%) D&A (₹ Cr)

Capex (₹ Cr) Δ Working Capital (₹ Cr) +ve = cash outflow

Balance Sheet

Cash & Equivalents (₹ Cr) Total Debt (₹ Cr)

DCF Assumptions

Phase 1 FCF Growth (%) Yrs 1–5 (high growth) Phase 2 FCF Growth (%) Yrs 6–10 (moderation)

Terminal Growth Rate (%) — GDP-anchored Thakkar: India nominal GDP ~10-12%. Use conservative 5–7%. Discount Rate / Required Return (%) PPFAS hurdle: 15%. Adjust for moat quality.

Thakkar Quality Checklist

High ROCE (>20%) Capital efficiency criterion Economic moat exists Brand / network / cost advantage Honest & capable management Inner scorecard quality Minimal leverage Survives down-cycle without dilution Within circle of competence Business model understood deeply Low regulatory / political risk Pricing power not govt-capped FCF positive & growing Earns more than it deploys

Investment Thesis (optional)

Fill in the company inputs and click Run Valuation to see the PPFAS-style DCF analysis.

Pre-filled with sample data (paint sector proxy). Adjust all numbers for your target company.

Rajeev Thakkar on exits: "If the entire margin of safety is lost and price moves beyond the upper bound of intrinsic value, we start selling in stages." On cash: "Cash is the residue after deploying in equities — it increases where valuations are high and opportunities scarce." Disclaimer: Educational tool only. Not SEBI-registered advice. Verify all inputs independently.