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Corporate Finance Group10
VARIANCE
2016-17 2017-18
5.1586019217 1.7056029753
BETA
2016-17 2017-18
-0.1004230454 -0.6530040205
1 EBIT*(1-T)
2 Add: Dep & Amortization
3 Less: Changes in NWC
GROWTH RATE
AVERAGE GROWTH
YEAR
2018-19
2019-20
2020-21
2021-22
2022-23
2023-PERPETUITY
Value of equity
Number of shares
Year
2014 - 2015
2015 - 2016
2016 - 2017
2017 - 2018
2018 - 2019
Average PE
Year
2014 - 15
2015 - 16
2016 - 17
2017 - 18
2018 - 19
Stock Price
Present Value per Share
2018-19 2016-19
0.4726247952 -0.2834616851132
2017-18 2016-19
6.3623802935 4.6089994468
2018-19 2016-19
0.0742842731 -0.06
10% (Given)
6.45% (RBI WEBSITE)
Calculation of W
2077.51 9301.26
348%
198.5021%
295,856,061,869,070.00
2,436,592,943
121422.03018318
P/E
11.35
25.07
24.37
27.8
25.64
22.846
EPS
101.17
133.66
50.24
5.64
5.52
32%
-62%
-89%
-2.13%
-30%
10.9573183971
273.1768961007
141.449997
141.449997
Calculation of WACC
2769.9 1 5.511%
2017-18 2018-19
14286.65 13642.02
1484.4 1951.2
-19527.8 -8511.8
35298.85 24,105.02
280% -32%
VARIANCE
2016-17 2017-18
2.887928649 2.0991679886
BETA
2016-17 2017-18
-0.0122265976 -0.2660657602
Total Debt 0
Intrest 52.4
Kd 0%
Kd after Tax 0%
1% Addition to Cost of Debt 1.00%
1 EBIT*(1-T)
2 Add: Dep & Amortization
3 Less: Changes in NWC
GROWTH RATE
AVERAGE GROWTH
YEAR
2018-19
2019-20
2020-21
2021-22
2022-23
2023-PERPETUITY
Value of equity
Number of shares
Year
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
Average PE
Year
2014-15
2015-16
2016-17
2017-18
2018-19
EPS growth rate 1
EPS growth rate 2
EPS growth rate 3
EPS growth rate 4
Average Growth rate
Expected Eps
Stock Price
Present Value per Share
2018-19 2016-19
4.4557835686 1.3209154053671
2018-19 2016-19
8.6054465425 4.5702648841
2018-19 2016-19
0.5177864445 0.29
10% (Given)
6.45% (RBI WEBSITE)
Rf )
Calculation of WAC
6713.32 5996.26
-11%
18.3453%
175001.873755379
175,001,873,755.38
850,000,000
205.8845573593
P/E
21.14
27.65
19.01
28.17
28.28
24.85
EPS
5.72
6.43
7.34
7.95
7.85
12%
14%
8%
-1.26%
8%
8.5097486
236.3172527093
222.85
222.85
Calculation of WACC
7094.84 10,457.50
18% 47%
VARIANCE
2015-16 2016-17
6.054287579 2.8514888248
BETA
2015-16 2016-17
-0.098762648 -0.0526594526
1 EBIT*(1-T)
2 Add: Dep & Amortization
3 Less: Changes in NWC
GROWTH RATE
AVERAGE GROWTH
YEAR
2018-19
2019-20
2020-21
2021-22
2022-23
2023-PERPETUITY
Value of equity
Number of shares
Year
2013 - 2014
2014 - 2015
2015 - 2016
2016 - 2017
2017 - 2018
Average PE
Year
2013 - 14
2014 - 2015
2015 - 2016
2016 - 2017
2017 - 2018
Stock Price
Present Value per Share
2017-18 2015-18
0.2190985343 -0.0792397034195
2017-18 2015-18
2.0991679886 3.7117211226
2017-18 2015-18
0.1043739879 -0.0213485067
10% (Given)
7.17% (RBI WEBSITE)
Calculation of WA
Equity Share Capital
Debt
24.796 173.576
600%
174.5587%
-108,465,547,158.04
102,316,926
-1060.093880831
P/E
8.2
10.63
9.47
-1.38
-0.53
5.278
EPS
8.23
10.65
9.48
-1.39
-0.53
29%
-11%
-115%
-61.87%
-40%
-0.9251609628
0.3950004384
233.845764
233.845764
Calculation of WACC
Value Weightage Cost
20.41 0.2319318182 6.96% 1.613437%
88 1 10.495%
2016-17 2017-18
198.338 122.43
29.87 33.94
-31.32 223.48
259.528 -67.11
50% -126%
2,125.19
CURRENT ASSETS 2,676.41
CURRENT LIABILITIES 2,437.59 2,109.85
WORKING CAPITAL 238.82 15.34
CHANGES 223.48 -31.32
33.94 29.87
Depreciation
Amortization 0 0
0 0 0
Cost of Equity
Risk free rate 6.45%
Beta 2.103744
Risk premium 10%
Expected rate of return (Ke) 27.487%
Cost of Debt
Intrest paid 14.09
Total Debt 48.21
Kd after tax 20.458%
12 mths 12 mths
INCOME
Revenue From Operations [Gross] 735.20 765.69
Less: Excise/Sevice Tax/Other Levies 8.25 38.12
Revenue From Operations [Net] 726.95 727.57
Other Operating Revenues 1.17 1.22
Total Operating Revenues 728.12 728.78
Other Income 4.72 1.99
Total Revenue 732.84 730.78
EXPENSES
Cost Of Materials Consumed 279.24 209.08
Mar-19 Apr-18
12 mths 12 mths
12 mths 12 mths
Mar-19 Mar-18
12 mths 12 mths
- -
Mar-17 Mar-16
12 mths 12 mths
811.00 1,120.56
44.38 53.44
766.62 1,067
5.36 3.5
771.98 1,070.62
3.26 10.38
775.24 1,080.99
279.06 371.28
284.42 449.89
13.60 -31.18
71.04 73.28
28.79 32.92
11.63 14.15
124.60 167.21
813.13 1,077.55
May-17 Jun-16
12 mths 12 mths
-37.89 3.44
-33.19 3.44
-6.18 0.45
0 2.19
0.00 0.00
-6.18 2.64
-27.01 0.81
-27.01 0.81
-27.01 0.81
Mar-17 Mar-16
12 mths 12 mths
-1.38 0.05
-1.38 0.05
224.14 292.49
54.92 78.79
0 0
0 0
0 0
Mar-17 Mar-16
12 mths 12 mths
19.64 19.64
19.64 19.64
120.22 147.24
120.22 147.24
5.69 0.00
145.55 166.88
7.59 0.00
2.60 1.60
10.19 1.60
189.63 211.61
203.96 252.18
39.64 38.68
2.89 3.07
436.12 505.55
591.87 674.03
114.69 126.49
0.08 0.10
0.00 0.00
0.00 0.00
114.77 126.59
26.26 26.25
40.67 34.74
0.56 0.11
182.26 187.69
0.00 0.00
240.91 282.76
132.09 125.42
15.48 18.79
15.66 31.76
5.47 27.61
409.61 486.34
591.87 674.03
132.46 162.57
196.37 288.36
208.79 329.51
0.00 0.00
8.25 7.55
- -
17.40 9.11
- -
9.37 9.37
27.67 27.66
-
B1 0.3225050361
B2 -0.028528831
B3 -0.609509529
Bavg -0.105177775
Cost of Equity
Risk free rate 7.17%
Beta -0.105178
Risk premium 10%
Expected rate of return (Ke) 6.118%
Cost of Debt
Intrest paid 2831.00
Total Debt 24,503.95
Kd after tax 8.087%
- - - 10.37
- 562.57 - 376.89
- 483.70 - 616.94
- - - -
- 8.46 - 11.98
Date Closing price Return Nifty Return Q1.
1-Apr-15 25,570.70 7060.2
10-Apr-15 26,069.10 1.95% 7246.05 2.63%
17-Apr-15 25,574.55 -1.90% 7093.85 -2.10%
24-Apr-15 21,958.40 -14.14% 6826.55 -3.77%
30-Apr-15 22,503.80 2.48% 6749.65 -1.13% Q2.
8-May-15 21,608.75 -3.98% 6728.9 -0.31% Rf
15-May-15 22,868.65 5.83% 6827.05 1.46% RP
22-May-15 23,146.05 1.21% 6964.45 2.01% RM
29-May-15 23,668.85 2.26% 6959.85 -0.07% Beta
5-Jun-15 21,977.35 -7.15% 6700.7 -3.72%
12-Jun-15 20,283.90 -7.71% 6577.4 -1.84% CAPM
19-Jun-15 21,108.25 4.06% 6785.1 3.16% CAPM%
26-Jun-15 21,805.00 3.30% 6908.85 1.82%
3-Jul-15 22,988.30 5.43% 7003.95 1.38% Interest Paid
10-Jul-15 23,072.55 0.37% 6935.55 -0.98% Tax Rate
17-Jul-15 23,758.30 2.97% 7148.05 3.06% Interest post tax
24-Jul-15 23,255.10 -2.12% 7074.95 -1.02% Total debt
31-Jul-15 24,669.70 6.08% 7106.2 0.44% Cost of debt
7-Aug-15 26,036.40 5.54% 7183.85 1.09%
14-Aug-15 25,387.35 -2.49% 7112.5 -0.99%
21-Aug-15 24,122.15 -4.98% 6961 -2.13%
28-Aug-15 23,670.30 -1.87% 6694.45 -3.83% EBIT
4-Sep-15 21,819.70 -7.82% 6421.05 -4.08% EBIT(1-tax rate)
11-Sep-15 21,931.60 0.51% 6511.55 1.41% ADD: Dep. & amorti
18-Sep-15 21,879.45 -0.24% 6636.95 1.93% Less : Changes in
24-Sep-15 20,306.75 -7.19% 6573.9 -0.95% Cash Flows
1-Oct-15 19,306.40 -4.93% 6654.5 1.23% Growth Rate
9-Oct-15 21,271.40 10.18% 6829.4 2.63% Average Rate
16-Oct-15 21,067.55 -0.96% 6870.85 0.61%
23-Oct-15 21,743.45 3.21% 6913.05 0.61%
30-Oct-15 20,457.50 -5.91% 6750.95 -2.34% Particulars
6-Nov-15 19,365.25 -5.34% 6650.1 -1.49% Future Cashflows
13-Nov-15 18,986.80 -1.95% 6526.6 -1.86% Present Value
20-Nov-15 19,049.70 0.33% 6615.65 1.36% Value of Firm
27-Nov-15 18,863.10 -0.98% 6686.9 1.08% Value of Debt
4-Dec-15 18,376.35 -2.58% 6584.9 -1.53% Value of Equity
11-Dec-15 18,221.95 -0.84% 6425.45 -2.42% Value per share
18-Dec-15 18,215.55 -0.04% 6570.8 2.26%
24-Dec-15 18,205.25 -0.06% 6656.75 1.31%
31-Dec-15 18,647.95 2.43% 6724.75 1.02% WACC
1-Jan-16 19,199.10 2.96% 6753.65 0.43% Equity Funds
8-Jan-16 18,223.60 -5.08% 6490.85 -3.89% Debt
15-Jan-16 17,867.50 -1.95% 6262.4 -3.52% Total Value of Fund
22-Jan-16 17,303.90 -3.15% 6216.7 -0.73% Equity Weight
29-Jan-16 17,495.95 1.11% 6339.45 1.97% Debt Weight
5-Feb-16 16,089.10 -8.04% 6270.5 -1.09% WACC
12-Feb-16 15,948.30 -0.88% 5833.4 -6.97%
19-Feb-16 16,804.00 5.37% 6000.4 2.86%
26-Feb-16 16,711.15 -0.55% 5852.9 -2.46%
4-Mar-16 17,258.15 3.27% 6239.35 6.60% Year
11-Mar-16 18,016.30 4.39% 6258.45 0.31% 2014
18-Mar-16 18,774.10 4.21% 6322.65 1.03% 2015
23-Mar-16 20,217.50 7.69% 6423.7 1.60% 2016
1-Apr-16 19,888.55 -1.63% 6445.5 0.34% 2017
8-Apr-16 18,993.35 -4.50% 6346.65 -1.53% 2018
13-Apr-16 20,029.05 5.45% 6575.35 3.60% AVERAGE
22-Apr-16 19,788.00 -1.20% 6627.95 0.80%
29-Apr-16 19,664.00 -0.63% 6588.55 -0.59% Future EPS 2019
6-May-16 19,127.95 -2.73% 6504.55 -1.27% Value of Share
13-May-16 20,676.15 8.09% 6582.3 1.20%
20-May-16 21,049.55 1.81% 6513.1 -1.05% Stock is Under Valued as 366.52>331.85
27-May-16 21,947.00 4.26% 6797 4.36%
3-Jun-16 22,269.35 1.47% 6844.75 0.70%
10-Jun-16 21,492.45 -3.49% 6832.05 -0.19%
17-Jun-16 22,075.60 2.71% 6842.35 0.15%
24-Jun-16 21,159.75 -4.15% 6775.55 -0.98%
1-Jul-16 22,684.30 7.20% 7027.85 3.72%
8-Jul-16 22,789.15 0.46% 7039.4 0.16%
15-Jul-16 23,907.60 4.91% 7194.4 2.20%
22-Jul-16 24,315.70 1.71% 7227.45 0.46%
29-Jul-16 24,976.55 2.72% 7330 1.42%
5-Aug-16 25,035.10 0.23% 7364.05 0.46%
12-Aug-16 24,548.30 -1.94% 7347.45 -0.23%
19-Aug-16 23,980.05 -2.31% 7397.8 0.69%
26-Aug-16 23,695.35 -1.19% 7334.8 -0.85%
2-Sep-16 24,010.85 1.33% 7504.6 2.31%
9-Sep-16 24,164.05 0.64% 7575.55 0.95%
16-Sep-16 23,438.10 -3.00% 7487.2 -1.17%
23-Sep-16 23,340.10 -0.42% 7554.9 0.90%
30-Sep-16 22,797.85 -2.32% 7394.85 -2.12%
7-Oct-16 23,135.55 1.48% 7527.2 1.79%
14-Oct-16 22,803.85 -1.43% 7439.85 -1.16%
21-Oct-16 22,633.60 -0.75% 7541.7 1.37%
28-Oct-16 21,891.05 -3.28% 7494.1 -0.63%
4-Nov-16 21,511.00 -1.74% 7274.1 -2.94%
11-Nov-16 20,023.00 -6.92% 7126.5 -2.03%
18-Nov-16 19,226.85 -3.98% 6908.5 -3.06%
25-Nov-16 18,840.90 -2.01% 6960.75 0.76%
2-Dec-16 20,361.65 8.07% 6947.3 -0.19%
9-Dec-16 20,739.05 1.85% 7101.15 2.21%
16-Dec-16 20,123.45 -2.97% 6976.5 -1.76%
23-Dec-16 19,715.95 -2.03% 6814.9 -2.32%
30-Dec-16 21,049.95 6.77% 6982.8 2.46%
6-Jan-17 21,111.30 0.29% 7083.1 1.44%
13-Jan-17 21,270.00 0.75% 7228.3 2.05%
20-Jan-17 21,301.90 0.15% 7202.75 -0.35%
27-Jan-17 22,459.70 5.44% 7455.15 3.50%
3-Feb-17 22,419.35 -0.18% 7569.9 1.54%
10-Feb-17 22,680.40 1.16% 7631.25 0.81%
17-Feb-17 21,919.10 -3.36% 7638 0.09%
23-Feb-17 21,990.90 0.33% 7729.65 1.20%
3-Mar-17 21,158.95 -3.78% 7696.2 -0.43%
10-Mar-17 22,761.15 7.57% 7710.9 0.19%
17-Mar-17 22,798.80 0.17% 7933.1 2.88%
24-Mar-17 22,972.90 0.76% 7905.3 -0.35%
31-Mar-17 22,751.25 -0.96% 7995.05 1.14%
7-Apr-17 22,826.80 0.33% 8045.35 0.63%
13-Apr-17 23,272.75 1.95% 8044.9 -0.01%
21-Apr-17 22,406.25 -3.72% 8057.7 0.16%
28-Apr-17 22,991.60 2.61% 8214.3 1.94%
5-May-17 23,453.40 2.01% 8193.25 -0.26%
12-May-17 23,485.80 0.14% 8299.2 1.29%
19-May-17 22,997.45 -2.08% 8258.2 -0.49%
26-May-17 23,606.30 2.65% 8331.85 0.89%
2-Jun-17 23,811.35 0.87% 8406.55 0.90%
9-Jun-17 23,863.45 0.22% 8452.75 0.55%
16-Jun-17 24,467.30 2.53% 8411.45 -0.49%
23-Jun-17 23,795.50 -2.75% 8355.1 -0.67%
30-Jun-17 23,327.25 -1.97% 8331.6 -0.28%
7-Jul-17 23,585.30 1.11% 8479.45 1.77%
14-Jul-17 24,363.05 3.30% 8640.7 1.90%
21-Jul-17 23,971.45 -1.61% 8669.75 0.34%
28-Jul-17 23,804.40 -0.70% 8747.45 0.90%
4-Aug-17 24,560.20 3.18% 8776.2 0.33%
11-Aug-17 22,623.20 -7.89% 8427.7 -3.97%
18-Aug-17 22,034.00 -2.60% 8594.25 1.98%
24-Aug-17 21,676.25 -1.62% 8605.75 0.13%
1-Sep-17 22,167.95 2.27% 8755.25 1.74%
8-Sep-17 21,976.45 -0.86% 8749.95 -0.06%
15-Sep-17 21,819.00 -0.72% 8887.6 1.57%
22-Sep-17 21,495.05 -1.48% 8738 -1.68%
29-Sep-17 20,545.10 -4.42% 8600 -1.58%
6-Oct-17 21,073.60 2.57% 8787.4 2.18%
13-Oct-17 21,571.60 2.36% 8937.2 1.70%
19-Oct-17 21,538.70 -0.15% 8937.65 0.01%
27-Oct-17 21,303.50 -1.09% 9104.45 1.87%
3-Nov-17 21,047.90 -1.20% 9260.65 1.72%
10-Nov-17 20,457.05 -2.81% 9154.95 -1.14%
17-Nov-17 18,965.90 -7.29% 9137.1 -0.19%
24-Nov-17 18,957.35 -0.05% 9246.05 1.19%
1-Dec-17 19,988.15 5.44% 9060.4 -2.01%
8-Dec-17 19,550.25 -2.19% 9190.55 1.44%
15-Dec-17 19,730.30 0.92% 9216.75 0.29%
22-Dec-17 19,926.50 0.99% 9431.5 2.33%
29-Dec-17 20,165.55 1.20% 9490.65 0.63%
5-Jan-18 19,693.15 -2.34% 9573.45 0.87%
12-Jan-18 19,771.60 0.40% 9665.2 0.96%
19-Jan-18 19,976.15 1.03% 9723.1 0.60%
25-Jan-18 19,642.50 -1.67% 9810 0.89%
2-Feb-18 19,474.40 -0.86% 9409.8 -4.08%
9-Feb-18 19,482.60 0.04% 9251.1 -1.69%
16-Feb-18 19,553.60 0.36% 9235.6 -0.17%
23-Feb-18 18,920.60 -3.24% 9251.35 0.17%
1-Mar-18 18,707.50 -1.13% 9225.35 -0.28%
9-Mar-18 18,203.55 -2.69% 8986.4 -2.59%
16-Mar-18 17,921.70 -1.55% 9004.45 0.20%
23-Mar-18 17,361.80 -3.12% 8800.8 -2.26%
28-Mar-18 18,017.55 3.78% 8912.1 1.26%
Beta(for 3 years) 2015-16 2016-17 2017-18
7.17%
10%
17.17%
1.09
0.154
15.40%
345.8
30%
242.06
2224.4
0.1088203561
Future Cashflows
18-19 19-20 20-21 21-22 22-23
2,276.94 2214.3539897508 2153.4859417192 2094.2910314463 2036.723
1979.78 1674.0785897424 1415.582648452 1197.0012918609 1012.171
WACC
20,072
0
20,072
1
0
34580.00%
18.1735321118
366.0965864848
Results
Value By NPV EPS&PE
0 366.0965864848
Market 0 0
Over valued Under Valued
PV of 2023
2036.164
63.63011
7342.24
2224.4
5117.84
0.254974