A full predictive finance engagement for a real ultrasonic cleaning equipment manufacturer — combining three-statement modelling, forecasting, ratio analysis, and DCF valuation to arrive at an intrinsic equity value for the business.
WaveUltra Pvt Ltd is an ultrasonic cleaning equipment manufacturer based in Bengaluru, serving clients across automotive, medical, electronics, and aerospace industries. By 2022, the company had scaled rapidly — but rapid growth brought a need for rigorous financial modelling to understand true performance, valuation, and the cost of capital funding that growth.
My role, completed during my tenure at Girish GR & Associates, was to build the full financial architecture: historical statement analysis, forward forecasts, and a complete valuation model.
The starting point was a full income statement, balance sheet, and cash flow reconstruction across FY19–FY22. Sales grew from ₹26.4L to ₹1.37Cr, with explosive growth years in FY20 (+560%) and FY22 (+662%) as the company scaled its manufacturing capacity.
| Metric | Mar-19 | Mar-20 | Mar-21 | Mar-22 |
|---|---|---|---|---|
| Sales | ₹26.4L | ₹1.74Cr | ₹1.80Cr | ₹13.72Cr |
| Sales Growth | 0.00% | 559.95% | 3.51% | 661.67% |
| Gross Profit | ₹4.51L | ₹11.13L | ₹23.95L | ₹1.01Cr |
| EBITDA | ₹19,469 | ₹2.13L | ₹8.76L | ₹51.79L |
| Net Profit | ₹19,469 | ₹1.98L | ₹9.08L | ₹30.65L |
| EPS | ₹1.95 | ₹19.83 | ₹90.77 | ₹306.52 |
Source: Income statement reconstruction, Waveultra Pvt Ltd historicals (FY19–FY22)
Despite the dramatic top-line growth, net margin actually declined slightly from 0.74% to 2.23% over the period — a signal of margin pressure even amid scale, which became a key input for the recommendations later in the engagement.
Beyond the headline numbers, a full ratio analysis surfaced how efficiently the business was actually running — turning over inventory, collecting receivables, and converting capital into returns.
| Ratio | Mar-19 | Mar-20 | Mar-21 | Mar-22 |
|---|---|---|---|---|
| Return on Capital Employed | 1.16% | 2.89% | 2.20% | 8.64% |
| Debtor Turnover | 2.95x | 20.89x | 3.75x | 19.75x |
| Inventory Turnover | 19.33x | 6.82x | 0.86x | 69.06x |
| Fixed Asset Turnover | 0.00x | 169.83x | 238.48x | 31.86x |
Source: Ratio analysis using three-statement model
Using trend-based forecasting techniques, I projected Sales, EBITDA, and EPS five years forward — modelling a deceleration from the historical hyper-growth phase into a more sustainable, mature growth curve.
| Year | Sales (Est.) | Growth | EBITDA (Est.) | EPS (Est.) |
|---|---|---|---|---|
| FY23E | ₹14.48Cr | 5.60% | ₹56.07L | ₹350.9 |
| FY24E | ₹18.52Cr | 27.90% | ₹72.21L | ₹449.4 |
| FY25E | ₹22.56Cr | 21.82% | ₹88.35L | ₹547.9 |
| FY26E | ₹26.60Cr | 17.91% | ₹1.04Cr | ₹646.3 |
| FY27E | ₹30.64Cr | 15.19% | ₹1.21Cr | ₹744.8 |
Source: Sales, EBITDA & EPS forecasting models
The core deliverable was a discounted cash flow valuation. This meant calculating Free Cash Flow to Firm (FCFF) across the forecast period, discounting it back using a calculated WACC, and estimating terminal value beyond the explicit forecast window.
Beyond the valuation itself, the engagement surfaced concrete areas where WaveUltra could improve its financial position: