------------------- in Rs. Cr.

-------------------
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
Income
Sales Turnover 41,711.03 38,199.43 33,933.46 29,396.35 26,757.60 26,843.53 22,191.43
Excise Duty 0 0 0 0 1,816.95 2,495.21 2,537.02
Net Sales 41,711.03 38,199.43 33,933.46 29,396.35 24,940.65 24,348.32 19,654.41
Other Income 645.88 227.51 1,397.44 1,176.45 1,241.08 603.07 586.41
Stock
155.18 404.6 220.72 173.65 -134.97 289.27 38.73
Adjustments
Total Income 42,512.09 38,831.54 35,551.62 30,746.45 26,046.76 25,240.66 20,279.55
Expenditure
Raw Materials 12,641.57 12,421.63 9,917.37 7,841.47 8,356.45 8,568.71 6,063.53
Power & Fuel
2,772.31 2,510.17 1,990.16 1,558.49 1,383.44 1,222.48 1,038.77
Cost
Employee Cost 3,673.08 3,608.52 3,047.26 2,837.46 2,361.48 2,305.81 1,589.77
Other
Manufacturing 0 0 0 0 2,419.89 2,127.48 1,654.96
Expenses
Selling and
0 0 0 0 417.9 400.24 247.77
Admin Expenses
Miscellaneous
9,962.35 8,937.47 7,662.62 5,850.29 1,287.04 1,180.08 1,029.30
Expenses
Preoperative Exp
0 0 0 0 -326.11 -343.65 -175.5
Capitalised
Total Expenses 29,049.31 27,477.79 22,617.41 18,087.71 15,900.09 15,461.15 11,448.60

Operating Profit 12,816.90 11,126.24 11,536.77 11,482.29 8,905.59 9,176.44 8,244.54

PBDIT 13,462.78 11,353.75 12,934.21 12,658.74 10,146.67 9,779.51 8,830.95

Interest 1,820.58 1,876.77 1,925.42 1,735.70 1,848.19 1,489.50 929.03
PBDT 11,642.20 9,476.98 11,008.79 10,923.04 8,298.48 8,290.01 7,901.92
Depreciation 1,928.70 1,640.38 1,151.44 1,146.19 1,083.18 973.4 834.61

Other Written Off 0 0 0 0 0 0 0

Profit Before Tax 9,713.50 7,836.60 9,857.35 9,776.85 7,215.30 7,316.61 7,067.31
Extra-ordinary
0 0 0 0 0 0 0
items
PBT (Post Extra-
9,713.50 7,836.60 9,857.35 9,776.85 7,215.30 7,316.61 7,067.31
ord Items)
Tax 3,301.31 2,773.63 3,160.93 2,911.16 2,168.50 2,114.87 2,380.28
Reported Net
6,412.19 5,062.97 6,696.42 6,865.69 5,046.80 5,201.74 4,687.03
Profit
Total Value
16,407.74 15,056.16 12,700.04 10,246.24 7,543.64 6,892.44 5,385.07
Addition
Preference
0 0 0 0 45.88 109.45 22.19
Dividend
Equity Dividend 971.21 776.97 1,165.46 1,151.06 709.77 1,168.95 1,168.93

Corporate
66.19 128.73 181.57 156.71 122.8 214.1 202.43
Dividend Tax
Per share data
(annualised)
Shares in issue
9,712.15 9,712.15 9,712.14 9,592.14 8,872.14 7,305.92 7,305.84
(lakhs)
Earning Per
66.02 52.13 68.95 71.58 56.37 69.7 63.85
Share (Rs)
Equity Dividend
100 80 120 120 80 160 160
(%)
Book Value (Rs) 629.6 568.46 541.81 487.55 418.94 331.68 298.78

Cost of Debt 0.0696825 0.07243 0.0812625 0.0663794 0.073227 0.0552769 0.0515507

Source:
http://www.dnaindia.com/money/report-tata-steel-completes-7-billion-debt-recast-2026799
----------
Mar '07 Mar '06 Mar '05

19,756.84 17,136.92 15,867.62

2,304.18 2,004.83 1,377.92
17,452.66 15,132.09 14,489.70
362.12 252.58 108.75

82.47 104.91 289.55

17,897.25 15,489.58 14,888.00

5,762.42 4,766.44 4,578.43

1,027.84 897.57 778.3

1,454.83 1,351.51 1,291.00

1,561.40 1,466.83 1,440.72

244.92 255.93 259.74

805.99 727.12 679.86

-236.02 -112.62 -204.82

10,621.38 9,352.78 8,823.23

6,913.75 5,884.22 5,956.02

7,275.87 6,136.80 6,064.77

251.25 168.44 228.8
7,024.62 5,968.36 5,835.97
819.29 775.1 618.78

0 0 0

6,205.33 5,193.26 5,217.19

57.29 47.5 80.79

6,262.62 5,240.76 5,297.98

2,040.47 1,734.38 1,823.82

4,222.15 3,506.38 3,474.16

4,858.96 4,586.34 4,244.80

0 0 0

943.91 719.51 719.51

160.42 100.92 101.86

 5,804.73 5,534.73 5,534.73

72.74 63.35 62.77

155 130 130

240.31 176.26 127.56

0.0260489 0.0669435 0.0835128 6.46%

 NOPLAT Mar '14 Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Operating Income 41,866.21 38,604.03 34,154.18 29,570.00 24,805.68 24,637.59
Operating Expense 29,049.31 27,477.79 22,617.41 18,087.71 15,900.09 15,461.15
Depreciation 1,928.70 1,640.38 1,151.44 1,146.19 1,083.18 973.4
EBIT 10,888.20 9,485.86 10,385.33 10,336.10 7,822.41 8,203.04
NOPLAT 7187.6468 6128.5027 7055.09407 7258.41743 5471.448 5831.9469

Reconciliation of NOPLAT
PAT 6,412.19 5,062.97 6,696.42 6,865.69 5,046.80 5,201.74
Increase in deferred tax 0.00 0.00 0.00 0.00 0.00 0.00
Post interest tax Payment 1,201.82 1,212.52 1,308.00 1,218.88 1,292.73 1,058.96
Post tax on other income -426.37 -146.99 -949.33 -826.15 -868.08 -428.75
NOPLAT Reconciliation 7,187.65 6,128.50 7,055.09 7,258.42 5,471.45 5,831.95

Tax Rate Calculation

Other income 645.88 227.51 1,397.44 1,176.45 1,241.08 603.07

Interest paid 1,820.58 1,876.77 1,925.42 1,735.70 1,848.19 1,489.50
Reported PBT 9,713.50 7,836.60 9,857.35 9,776.85 7,215.30 7,316.61

Cash taxes 3,301.31 2773.63 3160.93 2911.16 2168.5 2114.87

Provision for deferred taxation 203.29 1402.93 45.82 54.16 169.5 -75.13
Reported tax 3,504.60 4,176.56 3,206.75 2,965.32 2,338.00 2,039.74
Cash Tax Rate 0.33986822 0.3539328 0.32066732 0.29776053 0.3005419 0.2890505

Tax on other income 219.514089 80.523258 448.113339 350.300371 372.99655 174.3177

Tax benefit of paying interest 618.76 664.25 617.42 516.82 555.46 430.54

Operating Cash Taxes 3,700.55 3,357.36 3,330.24 3,077.68 2,350.96 2,371.09

Tax Rate 0.33987 0.35393 0.32067 0.29776 0.30054 0.28905

FCF
NOPLAT 7187.6468 6128.5027 7055.09407 7258.41743 5471.448 5831.9469
Depreciation 1,928.70 1,640.38 1,151.44 1,146.19 1,083.18 973.40
Gross CF 9,116.35 7,768.88 8,206.53 8,404.61 6,554.63 6,805.35
Gross Investment
 Mar '08 Mar '07 Mar '06 Mar '05
19,693.14 17,535.13 15,237.00 14,779.25
11,448.60 10,621.38 9,352.78 8,823.23
834.61 819.29 775.1 618.78
7,409.93 6,094.46 5,109.12 5,337.24
4914.2551 4090.4469 3402.84 3471.453

4,687.03 4,222.15 3,506.38 3,474.16

0.00 0.00 0.00 0.00
616.13 168.63 112.19 148.82
-388.91 -243.05 -168.23 -70.73
4,914.26 4,147.74 3,450.34 3,552.24
EBIT 10000
interest 1000
EBT 9000
PAT 5400

586.41 362.12 252.58 108.75 Tax 3600

929.03 251.25 168.44 228.8 Saving 400
7,067.31 6,205.33 5,193.26 5,217.19
PITP 600
NOPLAT 6000
2380.28 2040.47 1734.38 1823.82
-65 -52.51 127.58 -10.54
2,315.28 1,987.96 1,861.96 1,813.28
0.3368014 0.3288254 0.3339675 0.349579

197.50372 119.07425 84.353508 38.016715

312.90 82.62 56.25 79.98

2,495.67 2,004.01 1,706.28 1,865.79

0.33680 0.32883 0.33397 0.34958

4914.2551 4090.4469 3402.84 3471.453

834.61 819.29 775.10 618.78
5,748.87 4,909.74 4,177.94 4,090.23
6000

4000
Standalone Balance Sheet in Rs. Crores

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Sources Of Funds
Total Share Capital 971.41 971.41 971.41 959.41 887.41 6,203.45
Equity Share Capital 971.41 971.41 971.41 959.41 887.41 730.79
Share Application Money 0 0 0 178.2 0 0
Preference Share Capital 0 0 0 0 0 5,472.66
Reserves 60,176.58 54,238.27 51,649.95 45,807.02 36,281.34 23,501.15
Revaluation Reserves 0 0 0 0 0 0
Networth 61,147.99 55,209.68 52,621.36 46,766.43 37,168.75 29,704.60
Secured Loans 4,400.55 4,311.02 4,190.47 3,509.18 2,259.32 3,913.05
Unsecured Loans 21,726.23 21,600.49 19,503.35 22,639.00 22,979.88 23,033.13
Total Debt 26,126.78 25,911.51 23,693.82 26,148.18 25,239.20 26,946.18
Total Liabilities 87,274.77 81,121.19 76,315.18 72,914.61 62,407.95 56,650.78
Application Of Funds
Gross Block 39,019.72 38,056.28 23,081.58 22,497.83 22,306.07 20,057.01
Less: Accum. Depreciation 14,753.97 13,181.23 11,715.32 10,692.73 10,143.63 9,062.47
Net Block 24,265.75 24,875.05 11,366.26 11,805.10 12,162.44 10,994.54
Capital Work in Progress 18,509.40 8,722.29 16,058.49 5,612.28 3,843.59 3,487.68
Net PPE 42,775.15 33,597.34 27,424.75 17,417.38 16,006.03 14,482.22
Investments 54,661.80 50,418.80 50,282.52 46,564.94 44,979.67 42,371.78

Inventories 6,007.81 5,257.94 4,858.99 3,953.76 3,077.75 3,480.47

Sundry Debtors 770.81 796.92 904.08 424.02 434.83 635.98

Cash and Bank Balance 961.16 2,218.11 3,946.99 4,138.78 500.3 463.58
Total Current Assets 7,739.78 8,272.97 9,710.06 8,516.56 4,012.88 4,580.03
Loans and Advances 5,863.68 9,587.82 8,773.73 17,052.84 6,678.55 5,884.61
Fixed Deposits 0 0 0 0 2,733.84 1,127.02

Total CA, Loans & Advances 13,603.46 17,860.79 18,483.79 25,569.40 13,425.27 11,591.66

Operating Current Assets 7,595.65 12,602.85 13,624.80 21,615.64 10,347.52 8,111.19

Deffered Credit 0 0 0 0 0 0
Current Liabilities 19,957.78 17,098.06 15,958.34 12,037.59 8,699.34 8,965.76
Provisions 3,807.86 3,657.68 3,917.54 4,421.32 3,303.68 2,934.19
Total CL & Provisions 23,765.64 20,755.74 19,875.88 16,458.91 12,003.02 11,899.95
Net Current Assets -10,162.18 -2,894.95 -1,392.09 9,110.49 1,422.25 -308.29
Miscellaneous Expenses 0 0 0 0 0 105.07
Total Assets 87,274.77 81,121.19 76,315.18 73,092.81 62,407.95 56,650.78
Contingent Liabilities 17,398.71 18,999.02 18,039.57 14,288.41 13,184.61 12,188.55
Book Value (Rs) 629.6 568.46 541.81 487.55 418.94 331.68

Debt -Equity 0.4272713 0.4693291 0.45027 0.5591229 0.6790436 0.9071383

Crores

Mar '08 Mar '07 Mar '06 Mar '05

6,203.30 580.67 553.67 553.67

730.78 580.67 553.67 553.67
0 147.06 0 0
5,472.52 0 0 0
21,097.43 13,368.42 9,201.63 6,506.25
0 0 0 0
27,300.73 13,949.09 9,755.30 7,059.92
3,520.58 3,758.92 2,191.74 2,468.18
14,501.11 5,886.41 324.41 271.52
18,021.69 9,645.33 2,516.15 2,739.70
45,322.42 23,594.42 12,271.45 9,799.62

16,479.59 16,029.49 15,407.17 13,085.07

8,223.48 7,486.37 6,699.85 5,845.49
8,256.11 8,543.12 8,707.32 7,239.58
4,367.45 2,497.44 1,157.73 1,872.66
12,623.56 11,040.56 9,865.05 9,112.24
4,103.19 6,106.18 4,069.96 2,432.65

2,604.98 2,332.98 2,174.75 1,872.40

543.48 631.63 539.4 581.82

465 446.51 288.35 246.68
3,613.46 3,411.12 3,002.50 2,700.90
34,582.84 4,025.95 1,994.46 2,234.96
0.04 7,234.84 0.04 0.04

38,196.34 14,671.91 4,997.00 4,935.90

35,591.36 12,338.93 2,822.25 3,063.50

0 0 0 0
6,842.26 6,349.24 4,552.39 4,247.43
2,913.52 1,930.46 2,361.44 2,648.56
9,755.78 8,279.70 6,913.83 6,895.99
28,440.56 6,392.21 -1,916.83 -1,960.09
155.11 202.53 253.27 214.82
45,322.42 23,741.48 12,271.45 9,799.62
9,250.08 7,185.93 3,872.34 2,983.05
298.78 240.31 176.26 127.56

0.6601175 0.6914666 0.2579265 0.3880639 0.548975

Cash Flow Statement in Rs. Crores

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

Net Profit Before Tax 9713.5 7836.6 9857.35 9776.85 7214.3 7315.61

Net Cash From

12432.8 11068.67 10256.47 8339 8369.22 7397.22
Operating Activities
Net Cash (used
in)/from -9837.42 -8522.4 -2859.11 -13084.86 -5254.84 -9428.08
Investing Activities
Net Cash (used
in)/from Financing -3825.98 -4281.59 -7599.35 5650.99 -1473.13 3156.42
Activities
Net
(decrease)/increase In
-1230.6 -1735.32 -201.99 905.13 1641.25 1125.56
Cash and Cash
Equivalents
Opening Cash & Cash
2139.93 3900.53 4102.52 3191.29 1592.89 465.04
Equivalents
Closing Cash & Cash
909.33 2165.21 3900.53 4096.42 3234.14 1590.6
Equivalents
 Mar '08 Mar '07 Mar '06 Mar '05

7066.36 6261.65 5239.96 5297.28

6254.2 5118.1 3631.39 3816.83

-29318.58 -5427.6 -2464.59 -2604.13

15848.07 7702.46 -1125.13 -1216.72

-7216.31 7392.96 41.67 -4.02

7681.35 288.39 246.72 250.74

465.04 7681.35 288.39 246.72

key forecast drivers
year 1-5 year 6-10 terminal
operating expenses as % of sales 46% 93%
depreciation as % of sales 1.55 1.55
operating WC as % of sales 5.00 15.00
net PPE as % of sales 18.00 19.50
non operating income as % of OPENING non operating assets 10 10
assumed operating cash tax rate 17 17
deferred tax as % of cash taxes taxes 15 15
growth rate in SALES 17 12.5
growth rate in FCF 6
growth rate in Economic Profit 6
interest expense as % of OPENING debt 10 10
D/E ratio 3% 3%

INCOME STATEMENT 2019 2020 2021 2022

Sales 31687 37074 43376 50750
other income 722 214 251 293

operating expenses 24768 16965 19849 23223

depreciation 1670 575 672 787
interest expense 2158 13 62 120

PBT 3813 19736 23043 26914

tax (including deferred tax) 1382 3355 3917 4575
PAT 2431 16381 19126 22338
payout ratio 0.16 0.03 0.03 0.03
dividends and div tax 386 444 511 588

retained earnings 921 15936 18615 21751

DTL 503 588 686
BALANCE SHEET 2009 2010 2011 2012
Share Capital 367 367 367 367
Reserves and surplus 4068 20004 38619 60370
deferred tax liability -132 372 959 1646
loans 127 622 1198 1871
TOTAL 4431 21365 41144 64254
gross plant 1596 7510 9316 11430
acc depreciation 262 836 1509 2295
net plant(includes WIP) 1472 6673 7808 9135

operatin assets 1472 6673 7808 9135

investments 2142 2506 2932 3430
operating WC 1080 1854 2169 2538
non operating WC -56 0 0 0
TOTAL 4637 11033 12908 15103
IC 2496 8527 9977 11673
Change in IC 1635.2 6031 1450 1696
year 1 2 3
EBIT 19534.19 22855.00 26740.35
NOPLAT 1163.83 16213.37 18969.65 22194.49
FCF 10182.10 17520.06 20498.47

ROIC on opening capital 0.46 6.50 2.22 2.22

WACC 0.16 0.16 0.16
Spread 6.34 2.07 2.07
Economic Profit 15819.05 17622.39 20618.19

discount factor 0.8635578584 0.7457321748 0.6439828798

total
PV of FCF 58782.339138 8792.8351169 13065.274897 13200.666346
PV of Economic Profit 67468.927664 13660.668537 13141.580942 13277.763128
terminal WACC
terminal value of FCF #REF!
terminal value of Economic Profit #REF!
PV of
debt(taken as
book value -
non operating should use
assets total PV)
Operating Assets Firm value of PV of FCF #REF! 2086 #REF! 127
Operating Assets Firm Value from Economic Value #REF! 2086 #REF! 127
FCFE from operations 10666.409112 18044.495127 21072.124462
CoE 0.16 0.16 0.16
PV factor 0.862 0.743 0.641
PV of Cash flows 60236.394732 9195.1802689 13409.999351 13500.018234
PV of terminal value #REF!
Total #REF!
non operating capital 2086
total #REF!
value per share

fundamental growth in NOPLAT

RR 1.4050153279 0.3719936033 0.076416028 0.076416028
ROIC 0.46 6.50 2.22
RONIC 6.50 2.22 2.22
g from fundementals (RoNIC)*RR + ((RONIC-ROIC)/ROIC) 22.371909014 0.17 0.17
actual 12.931042113 0.17 0.17

ROIC is last year's ROIC

RONIC is current years ROIC (i.e year for which growth rate in NOPLAT is being calculated)

Cost of Equity (expected return) 0.17

Residual earnings Model 2009 2010 2011 2012
Earnings 2431 16381 19126 22338
Dividends 386 444 511 588
Book Value 1389 20371 38986 60737
expected earnings 231 3382 6472
residual earnings 16150 15744 15867
discount factor 0.862 0.743 0.641
PV of RE 13922.403 11700.660 10165.113
total 45936.392
PV of continuing value #REF!
Total #REF!
Per Share Equity Value after adding non operating items

Abnormal Earnings Growth Forecasts

Earnings 2431 16381 19126 22338
Dividends 386 444 511 588
Earnings on reinvested dividends 64.1258 73.74467 84.8063705
cum dividend earnings 16445 19200 22423
normal earnings 2834.546 19099.734902 22300.892333
AEG 13610 100 122
AEG rate 0.0073466885 1.2228880901
cum dividend earnings growth rate 1.1675335522 1.1678901129
normal earnings growth rate 6.7381989574 1.1676021917

PV of AEG 11732.880574 74.308464772 78.337014279

total PV of AEG from 2009 + earnings 2008 3647.647
PV of continuing value #REF!
TOtal #REF!
Capitalised #REF!
less current dividend
Per Share Equity Value after adding non operating items #REF!
CoE 0.16
Dividend Discount Model 1 2 3
Dividends 444 511 588
Discount factor 0.8620689655 0.7431629013 0.6406576735

PV of dividends 382.96982759 379.66836356 376.39536042

total 2626.6942821
terminal value of dividends #REF!
Total #REF!
Per Share Equity Value after adding non operating items

when we consider only dividends the CoE will be lower marginally because dividends being only a part of earnings, there is more certainty to receiving dividen
 2023 2024 2025
59378 69472 78156
343 401 470

27171 31790 72685

920 1077 1211
187 266 358

31442 36740 4371

5345 6246 743
26097 30495 3628
0.03 0.03 0.50
676 777 1814

25421 29718 1814

802 937 111
2013 2014 2015
367 367 367 Assuming there is no new issue of shares
85791 115509 117323
2447 3384 3496
2658 3578 3636
91264 122838 124821
13904 16797 20744
3216 4292 5504
10688 12505 15240

10688 12505 15240

4013 4696 5494
2969 3474 11723
0 0 0
17670 20674 32458
13657 15979 26964
1984 2322 10985
4 5 6
31286.21 36604.86 4259.51
25967.55 30382.04 3535.39
23983.21 28060.36 -7449.88

2.22 2.22 0.22

0.16 0.16 0.16
2.07 2.07 0.06
24123.29 28224.24 1010.78

0.5561164765 0.4802387534 0.4147139494

13337.460816 13475.672845 -3089.570883

13415.356529 13554.375767 419.18276102

Value per
Equity Value share
#REF! #REF!
#REF! #REF!
24614.573814 28759.365352 -7689.074995
0.16 0.16 0.16
0.552 0.476 0.410
13594.409996 13692.708159 -3155.921277

#REF!

0.076416028 0.076416028 3.1072301438

2.22 2.22 2.22
2.22 2.22 0.22
0.17 0.17 -0.883635453
0.17 0.17 -0.883635453

2013 2014 2015

26097 30495 3628
676 777 1814
86158 115876 117690
10082 14302 19235
16015 16192 -15607
0.552 0.476 0.410
8844.724 7709.346 -6405.852

#REF!

26097 30495 3628

676 777 1814
97.527326075 112.15642499 128.97988873
26194 30607 3757
26046.529969 30429.01315 35556.600944
148 178 -31799
1.2097323949 1.2010130189 -178.9953149
1.1681868867 1.1684409128 0.1227558076
1.1679590924 1.1682559322 1.1685098287

81.69553784 84.583969421 -13051.83986

4 5 6
676 777 1814
 0.5522910979 0.4761130154 0.4104422547

373.15057283 369.93375755 744.57640014

#REF!

more certainty to receiving dividends even if earnings fluctuate

Cost of Equity using CAPM
Risk Free rate of a 10 year
Government Bond = 8.50%

Beta 0.71
Market Rate 10.12%

COE 9.65%

WACC Calculation

Wt of Equity 0.70
Wt of Debt 0.30
D/E Ratio 0.43

Cost of Debt 6.46%

Cost of Equity 9.65%

Tax 33.99%

WACC 8.04%
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.7980033787
R Square 0.6368093925
Adjusted R Square 0.6311345392
Standard Error 0.091278646
Observations 66

ANOVA
df SS MS F Significance F
Regression 1 0.934960371729 0.9349603717 112.21601074 1.0370001E-15
Residual 64 0.533234637337 0.0083317912
Total 65 1.468195009066

Coefficients Standard Error t Stat P-value Lower 95%

Intercept -0.0060000511 0.011538377203 -0.5200082333 0.6048519566 -0.0290506094
X Variable 1 1.9575151012 0.184789677844 10.593205876 1.037E-15 1.588355282
 Upper 95% Lower 95.0% Upper 95.0%
0.0170505072 -0.0290506094 0.0170505072
2.3266749205 1.588355282 2.3266749205
 Returns for JSW Steel Bhushan Returns
Date Niity Adj Close Nifty Adj Close Returns JSW Adj Close Bhushan
10/1/2014 7945.55 -0.0024168843 1176.4 0.0176030449 114.7 0.008294
9/1/2014 7964.8 0.0013137466 1156.05 -0.07040045 117.6 0.011524
8/1/2014 7954.35 0.0301827412 1243.6 0.0535858008 101.02 0.000653
7/1/2014 7721.3 0.014445532 1180.35 -0.037305581 393.29 0.002625
6/2/2014 7611.35 0.0527527853 1226.09 0.020967433 387.06 0.002276
5/2/2014 7229.95 0.07967714 1200.91 0.1185094116 412.37 0.002084
4/1/2014 6696.4 -0.0011634498 1073.67 0.0453616077 444.8 0.002186
3/3/2014 6704.2 0.0680664973 1027.08 0.1827677142 451.07 0.002212
2/3/2014 6276.95 0.0307824945 868.37 -0.04512816 451.62 0.002108
1/2/2014 6089.5 -0.0340260152 909.41 -0.098156467 462.83 0.002013
12/2/2013 6304 0.0207088616 1008.39 0.1073907314 479.47 0.002076
11/1/2013 6176.1 -0.0195343816 910.6 0.0662888324 480.61 0.002096
10/1/2013 6299.15 0.0983122069 853.99 0.1806367771 478.82 0.002088
9/2/2013 5735.3 0.0481559999 723.33 0.3475855131 478.87 0.002319
8/1/2013 5471.8 -0.0470567746 536.76 -0.043208556 454.39 0.002157
7/1/2013 5742 -0.0171510732 561 -0.125841436 459.02 0.002147
6/3/2013 5842.2 -0.0240145674 641.76 -0.037566923 462.35 0.002168
5/1/2013 5985.95 0.009401032 666.81 -0.026682626 461.8 0.002235
4/1/2013 5930.2 0.0435807868 685.09 0.0452208406 454.54 0.002185
3/1/2013 5682.55 -0.0018443541 655.45 -0.090499119 456.08 0.002166
2/1/2013 5693.05 -0.0566220639 720.67 -0.162323322 458.92 0.002297
1/2/2013 6034.75 0.0219555977 860.32 0.0866879713 446.97 0.002016
12/3/2012 5905.1 0.0042943272 791.69 0.0932226794 470.86 0.002297
11/1/2012 5879.85 0.0462925067 724.18 0.0058893797 452.77 0.001941
10/1/2012 5619.7 -0.0146581804 719.94 -0.024379006 483.02 0.002019
9/3/2012 5703.3 0.0845868594 737.93 0.0911766011 489.1 0.002388
8/1/2012 5258.5 0.0056416141 676.27 0.0383227649 452.57 0.002101
7/2/2012 5229 -0.0094527269 651.31 -0.006649687 464.17 0.002253
6/1/2012 5278.9 0.07202112 655.67 0.0811251999 453.94 0.002441
5/1/2012 4924.25 -0.061716986 606.47 -0.093169652 431.22 0.002417
4/2/2012 5248.15 -0.0089509116 668.78 -0.039026353 422.35 0.002537
3/1/2012 5295.55 -0.0166474783 695.94 -0.107780669 408.05 0.002714
2/1/2012 5385.2 0.0357647738 780.01 0.1559642545 387.77 0.003214
1/3/2012 5199.25 0.1243323314 674.77 0.3791644524 347.37 0.003746
12/1/2011 4624.3 -0.0429941743 489.26 -0.144919431 304.52 0.003161
11/1/2011 4832.05 -0.0928453422 572.18 -0.092339663 310.4 0.002759
10/3/2011 5326.6 0.0775501947 630.39 0.1038751817 335.42 0.003137
9/1/2011 4943.25 -0.0115476905 571.07 -0.127484683 327 0.002906
8/1/2011 5001 -0.0877417001 654.51 -0.122134743 335.47 0.002289
7/1/2011 5482 -0.0292878139 745.57 -0.112722988 382.86 0.002083
6/1/2011 5647.4 0.0318466683 840.29 -0.095158616 428.73 0.002166
5/2/2011 5473.1 -0.0480737455 928.66 0.0296364463 444.92 0.001871
4/1/2011 5749.5 -0.0144418256 901.93 0.0347624565 487.71 0.002674
 3/1/2011 5833.75 0.0938452163 871.63 0.0528458231 427.07 0.003155
2/1/2011 5333.25 -0.0313572713 827.88 -0.038868766 367.94 0.002442
1/3/2011 5505.9 -0.1024696389 861.36 -0.230701903 388.14 0.001807
12/1/2010 6134.5 0.0463608917 1119.67 0.0435726802 463.5 0.002584
11/1/2010 5862.7 -0.0257573492 1072.92 -0.159502714 423.55 0.001801
10/1/2010 6017.7 -0.002031526 1276.53 0.0063699791 484.92 0.002936
9/1/2010 6029.95 0.1161613357 1268.45 0.1787473283 406.38 0.003253
8/2/2010 5402.4 0.0064833445 1076.1 0.0124855339 353.43 0.003865
7/1/2010 5367.6 0.0103717647 1062.83 0.052609165 302.4 0.003993
6/1/2010 5312.5 0.0444724063 1009.71 -0.033215243 275.2 0.003719
5/3/2010 5086.3 -0.036320576 1044.4 -0.097383068 272.03 0.002253
4/1/2010 5278 0.0055057057 1157.08 -0.005833985 347.47 0.003257
3/2/2010 5249.1 0.0663917274 1163.87 0.1536372377 326.64 0.003369
2/1/2010 4922.3 0.0082444875 1008.87 -0.074889504 311.37 0.00305
1/4/2010 4882.05 -0.0613337691 1090.54 0.1421539364 319.51 0.004004
12/1/2009 5201.05 0.033451229 954.81 0.0192141416 282.5 0.004148
11/3/2009 5032.7 0.0681282764 936.81 0.3179100488 260.96 0.005173
10/1/2009 4711.7 -0.0732206257 710.83 -0.095198697 224.6 0.003013
9/1/2009 5083.95 0.0904849746 785.62 0.2132377923 273.02 0.006347
8/3/2009 4662.1 0.0055322499 647.54 -0.014413784 207.41 0.009191
7/1/2009 4636.45 0.0804805295 657.01 0.1337923656 150.22 0.009441
6/1/2009 4291.1 -0.0354802819 579.48 0.1206126356 126.14 0.008384
5/4/2009 4448.95 0.2806603434 517.11 0.5964619802 122.66 0.019233
4/1/2009 3473.95 0.1499528294 323.91 0.4772872389 79.86 0.01366
3/2/2009 3020.95 0.0931015143 219.26 0.2506274241 76.46 0.022982
2/2/2009 2763.65 -0.0386635592 175.32 -0.11284283 57.68 0.0188
1/1/2009 2874.8 -0.0285048071 197.62 -0.082969838 55.39 0.015053
12/1/2008 2959.15 0.0740626475 215.5 0.1986206129 60.66 0.010535
11/3/2008 2755.1 -0.0452245633 179.79 -0.393482441 75.88 0.004696
10/1/2008 2885.6 -0.2641028257 296.43 -0.334044752 127.11 0.007808
9/1/2008 3921.2 -0.1006422018 445.12 -0.380029806 127.59 0.004986
8/1/2008 4360 0.0062428599 717.97 0.0465577307 159.96 0.00516
7/1/2008 4332.95 0.0723663858 686.03 -0.194204635 176.07 0.007471
6/2/2008 4040.55 -0.1703353114 851.37 -0.203679627 153.52 0.005049
5/2/2008 4870.1 -0.0572601096 1069.13 0.3190830465 174.37 0.007585
4/1/2008 5165.9 0.0911183863 810.51 0.062058573 151.62 0.009839
3/3/2008 4734.5 -0.093615392 763.15 -0.2269237 124.14 0.003361
2/1/2008 5223.5 0.0167495547 987.16 0.0847792881 192.18 0.004632
1/1/2008 5137.45 -0.1630909328 910.01 -0.255682515 203.69 0.002374
12/3/2007 6138.6 0.0652205978 1222.61 0.2933018808 292.92 0.004474
11/1/2007 5762.75 -0.0233703067 945.34 0.0615953015 255.87 0.00621
10/1/2007 5900.65 0.1751122706 890.49 0.1244128491 202.99 0.006518
9/17/2007 5021.35 791.96 176.47

Betas 1.6971909886 0.014314

Average Levered Beta 1.1905579435

Industry Debt to Equity Ratio 1.75
Industry Unlevered Beta 0.5524182229

Tata Steel
D/E 0.43
Levered Beta 0.7092182685

MARKET RETURN CALCULATION

Nifty Yearly Prices

2008 4198.8333333 -0.003665
2009 4183.4458333 0.305644
2010 5462.0916667 -0.027355
2011 5312.675 0.018425
2012 5410.5625 0.091954
2013 5908.0875 0.221958
2014 7219.435
10.12%
MARKET RETURNS 10.12%
 VISA
Tata Steel Returns SAIL Adj Returns SteelAdj
Adj Close Tata Steel Close SAIL Close Returns
448.8 -0.022329 70.55 0.013649 18.7 -0.015789
459.05 -0.105427 69.6 -0.141271 19 0.032609
513.15 -0.072732 81.05 -0.077405 18.4 -0.146172
553.4 0.068608 87.85 -0.074776 21.55 -0.1222
517.87 0.112192 94.95 0.085143 24.55 0.022917
465.63 0.185805 87.5 0.297257 24 0.481481
392.67 0.017016 67.45 -0.055322 16.2 -0.009174
386.1 0.145867 71.4 0.281867 16.35 0.012384
336.95 -0.034417 55.7 -0.101613 16.15 -0.012232
348.96 -0.160649 62 -0.114539 16.35 0.021875
415.75 0.058912 70.02 0.064619 16 -0.205955
392.62 0.196173 65.77 0.102968 20.15 -0.03125
328.23 0.233298 59.63 0.235343 20.8 0.032258
266.14 -0.008937 48.27 0.079866 20.15 0.002488
268.54 0.270293 44.7 0.12002 20.1 -0.088435
211.4 -0.187298 39.91 -0.178299 22.05 -0.125
260.12 -0.061718 48.57 -0.097044 25.2 -0.177814
277.23 -0.036325 53.79 -0.088305 30.65 -0.099853
287.68 -0.032293 59 -0.014531 34.05 -0.219931
297.28 -0.083883 59.87 -0.117742 43.65 -0.072264
324.5 -0.156595 67.86 -0.16408 47.05 -0.004233
384.75 -0.055063 81.18 -0.044604 47.25 -0.007353
407.17 0.109516 84.97 0.121864 47.6 0.001052
366.98 -0.015295 75.74 0.006913 47.55 -0.00627
372.68 -0.021683 75.22 -0.060924 47.85 0.011628
380.94 0.109286 80.1 0.092769 47.3 -0.034694
343.41 -0.128003 73.3 -0.08007 49 -0.021956
393.82 -0.033879 79.68 -0.053007 50.1 -0.005952
407.63 0.093633 84.14 -0.049802 50.4 0.019211
372.73 -0.1294 88.55 0.006822 49.45 -0.075701
428.13 -0.017171 87.95 0.004798 53.5 -0.061404
435.61 -0.001696 87.53 -0.086326 57 -0.034716
436.35 0.048238 95.8 0.025916 59.05 0.023397
416.27 0.344281 93.38 0.247229 57.7 -0.000866
309.66 -0.12941 74.87 0.016289 57.75 -0.00431
355.69 -0.202149 73.67 -0.285243 58 -0.010239
445.81 0.162386 103.07 0.06203 58.6 0.001709
383.53 -0.11185 97.05 -0.020884 58.5 0.026316
431.83 -0.170817 99.12 -0.13636 57 -0.031436
520.79 -0.057001 114.77 -0.081105 58.85 0.01448
552.27 0.036076 124.9 -0.022003 58.01 -0.053825
533.04 -0.044611 127.71 -0.117415 61.31 0.166476
557.93 -0.009234 144.7 -0.060756 52.56 0.182718
563.13 0.02486 154.06 0.111785 44.44 0.027277
549.47 -0.050887 138.57 -0.051865 43.26 -0.014579
578.93 -0.059812 146.15 -0.111604 43.9 0.208368
615.76 0.16348 164.51 0.033095 36.33 0.020506
529.24 -0.007818 159.24 -0.090109 35.6 -0.100556
533.41 -0.095793 175.01 -0.053386 39.58 0.041579
589.92 0.247083 184.88 0.09858 38 0.094785
473.04 -0.026627 168.29 -0.084833 34.71 -0.06568
485.98 0.123861 183.89 0.067328 37.15 0.044419
432.42 -0.030057 172.29 -0.066836 35.57 0.05549
445.82 -0.190919 184.63 -0.054053 33.7 -0.199905
551.02 -0.020896 195.18 -0.135607 42.12 0.037694
562.78 0.100469 225.8 0.155874 40.59 0.063958
511.4 0.009495 195.35 -0.059642 38.15 -0.051231
506.59 -0.077888 207.74 -0.025198 40.21 0.083827
549.38 0.067483 213.11 0.221401 37.1 0.071945
514.65 0.225883 174.48 0.189772 34.61 0.002898
419.82 -0.073858 146.65 -0.031374 34.51 -0.093274
453.3 0.200413 151.4 0.049276 38.06 0.184932
377.62 -0.084802 144.29 -0.068796 32.12 0.148784
412.61 0.232481 154.95 0.148203 27.96 0.172819
334.78 -0.029848 134.95 -0.105699 23.84 -0.171359
345.08 0.691817 150.9 0.571057 28.77 0.441383
203.97 0.152699 96.05 0.124312 19.96 0.130238
176.95 0.195285 85.43 0.284082 17.66 0.152742
148.04 -0.059227 66.53 -0.08813 15.32 -0.056069
157.36 -0.150324 72.96 0.088305 16.23 -0.060764
185.2 0.437888 67.04 0.170187 17.28 0.11054
128.8 -0.295096 57.29 -0.241995 15.56 -0.220441
182.72 -0.498463 75.58 -0.30933 19.96 -0.465453
364.32 -0.290004 109.43 -0.189107 37.34 -0.24413
513.13 -0.082582 134.95 0.112073 49.4 -0.066163
559.32 -0.0761 121.35 0.020691 52.9 0.196021
605.39 -0.194896 118.89 -0.15633 44.23 -0.160721
751.94 0.109334 140.92 -0.102134 52.7 0.180291
677.83 0.181341 156.95 0.002683 44.65 0.071771
573.78 -0.138688 156.53 -0.26797 41.66 -0.053182
666.17 0.088424 213.83 0.17315 44 0.037491
612.05 -0.211459 182.27 -0.238956 42.41 -0.245508
776.18 0.130914 239.5 0.092859 56.21 0.364652
686.33 -0.090231 219.15 -0.004994 41.19 0.303894
754.4 0.068328 220.25 0.255057 31.59 -0.16051
706.15 175.49 37.63

1.748308 1.5169 0.976078

ALCULATION