Capital Structure Group 11

8/12/2019 Capital Structure Group 11

1/24

1

2

3

4

5

6

1

2

3

4

5

a)

b)

c)

d)

e)

f)


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Assumption and Approach

Market Analysis/Beta Calculation

Cement Industry-UltraTech

Pharma Industry-GlenMark

IT Software Industry-HCL

Industry Ratios

Amit Kumar

Madhu Prasad

Deepak Nauriyal

Jagdish Kumar Agarwal

Karthiksreenivas Vankadari

Hard coding and assumption in BLUE color

Formulas entered in the model should be in BLACK

Cells linked to other cells should be in GREEN color

Enter all negetive values with a negetive sign

Negative numbers be expressed as -ve 250.0, not (250.0) 0r (-250.0)

Use '%" instead of the word 'percent'

Capital Structure

Color Coding Convention Used

Group Members


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INDEX

S.No Description Parameter

1

eturn on

equity R s = R f+ s (R m- Rf)

2 Beta value s

3 Risk free rate R f

4 Market return R m5 WACC Cost of Capital

S.No Description Parameter

1 Industry Debt Equity Ratio

2 Debt Ratio Capital Structure

3 Market return Market Return

4 Risk free rate R f

5 Market return R m

Methodology: Capital Asset Pricing Model (CAPM) model is used to estimate the

expected by any power generation company operating in India considering the s

profitability

Govt Security rate

Arithmetic mean of BSE SENS

considered for 3 years

Methodology for calculating Return on Equity

Me

Using CAPM model

Hamada equation

364 day latest T- Bill rate take

Arithmetic mean of BSE SENS

Only Long term and short ter

Industry taken for particular se

diversification

Market Return of last 3 years

Ke* E/(D+E) + Kd* D/(D+E)*(

Assumption

As


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eturn on equity

ecific characteristics of the project type and not linked to subjective

Capital line Plus

364 day T-Bill

EX market return is BSE SENSEX

(www.bseindia.com)

hodology Reference

National Stock Exchange

of India Limited -

n as 8.6% RBI

X market return is considered for 3 y

BSE SENSEX

(www.bseindia.com)

debt considered

gment in India only based on its

Capitaline

MoneyControl

taken as 10% MoneyControl

-T)

sumption Reference


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INDEX

Date

BSE_SENS

EX

Ultratech

Price HCL GlenMark

Return(

Market)

Return(Ult

ratech )

Return(HC

L)

Return(Gl

enMark)

24/01/2014 21,133.56 1,699.90 1,413.45 509.05 -0.0113 -0.00575 0.001274 0.001376

23/01/2014 21,373.66 1,709.70 1,411.65 508.35 0.001685 0.005601 -0.02428 0.007008

22/01/2014 21,337.67 1,700.15 1,446.35 504.80 0.004064 -2.9E-05 0.003359 0.004467

21/01/2014 21,251.12 1,700.20 1,441.50 502.55 0.00217 -0.01155 0.006682 0.00189220/01/2014 21,205.05 1,719.95 1,431.90 501.60 0.006692 0.002212 0.036086 -0.01337

17/01/2014 21,063.62 1,716.15 1,381.15 508.35 -0.00952 -0.01716 -0.00775 0.007999

16/01/2014 21,265.18 1,745.85 1,391.90 504.30 -0.00114 0.023295 0.041439 0.00497

15/01/2014 21,289.49 1,705.65 1,335.40 501.80 0.012127 0.032323 0.009669 -0.00358

14/01/2014 21,032.88 1,651.40 1,322.55 503.60 -0.00481 -0.01437 -0.01668 -0.01469

13/01/2014 21,134.21 1,675.30 1,344.80 511.05 0.017938 0.001404 0.034458 -0.0077

10/1/2014 20,758.49 1,672.95 1,299.25 515.00 0.002176 -0.00679 0.01099 0.00068

9/1/2014 20,713.37 1,684.35 1,285.05 514.65 -0.00077 -0.00754 0.028334 0.001458

8/1/2014 20,729.38 1,697.10 1,249.15 513.90 0.001745 0.003453 -0.00483 -0.00126

7/1/2014 20,693.24 1,691.25 1,255.20 514.55 -0.00454 -0.01741 0.003112 -0.0063

6/1/2014 20,787.30 1,720.95 1,251.30 517.80 -0.00308 -0.00481 -0.00768 0.004355

3/1/2014 20,851.33 1,729.25 1,260.95 515.55 -0.00177 -0.00136 0.007523 -0.01673

2/1/2014 20,888.33 1,731.60 1,251.50 524.25 -0.012 -0.01964 -0.0053 -0.01091

1/1/2014 21,140.48 1,765.95 1,258.15 530.00 -0.00143 0.001473 -0.00393 -0.0063

31/12/2013 21,170.68 1,763.35 1,263.10 533.35 0.001308 0.013014 0.011987 0.00244

30/12/2013 21,143.01 1,740.55 1,248.05 532.05 -0.00239 -0.01712 -0.001 -0.01056

27/12/2013 21,193.58 1,770.60 1,249.30 537.70 0.00563 -0.00521 0.002484 0.008592

26/12/2013 21,074.59 1,779.85 1,246.20 533.10 0.001989 -0.00856 0.00644 -0.01619

24/12/2013 21,032.71 1,795.15 1,238.20 541.80 -0.00324 0.016003 -0.00343 0.025611

23/12/2013 21,101.03 1,766.65 1,242.45 528.10 0.00101 0.012646 0.004962 0.003509

20/12/2013 21,079.72 1,744.45 1,236.30 526.25 0.017761 0.00826 0.001903 0.00142619/12/2013 20,708.62 1,730.10 1,233.95 525.50 -0.00728 -0.01549 0.029943 0.006204

18/12/2013 20,859.86 1,757.10 1,197.55 522.25 0.011947 0.001965 0.020415 -0.00658

17/12/2013 20,612.14 1,753.65 1,173.35 525.70 -0.0023 -0.00962 -0.01169 0.010517

16/12/2013 20,659.52 1,770.60 1,187.15 520.20 -0.00271 -0.02016 0.004305 -0.00432

13/12/2013 20,715.58 1,806.65 1,182.05 522.45 -0.01009 -0.03446 0.001524 -0.00096

12/12/2013 20,925.61 1,870.00 1,180.25 522.95 -0.01168 -0.01715 0.003522 -0.00895

11/12/2013 21,171.41 1,902.35 1,176.10 527.65 -0.00395 -0.0137 0.01845 -0.01887

10/12/2013 21,255.26 1,928.60 1,154.60 537.70 -0.00334 -0.00075 0.010666 0.010657

9/12/2013 21,326.42 1,930.05 1,142.35 532.00 0.015589 0.024388 0.01344 0.013055

6/12/2013 20,996.53 1,883.55 1,127.10 525.10 0.001846 0.005483 0.016956 -0.00655

5/12/2013 20,957.81 1,873.25 1,108.15 528.55 0.011957 -0.00085 -0.00778 0.007311

4/12/2013 20,708.71 1,874.85 1,116.80 524.70 -0.00704 -0.01051 -0.00166 0.009286

3/12/2013 20,854.92 1,894.65 1,118.65 519.85 -0.00206 -0.00087 -0.01151 -0.00413

2/12/2013 20,898.01 1,896.30 1,131.60 522.00 0.005089 -0.00473 0.040625 0.011755

29/11/2013 20,791.93 1,905.30 1,086.55 515.90 0.012439 0.000472 0.022854 0.017994

28/11/2013 20,534.91 1,904.40 1,062.00 506.70 0.005599 0.018442 0.003915 0.03117

27/11/2013 20,420.26 1,869.60 1,057.85 491.15 -0.00023 0.006924 -0.00033 -0.02583

26/11/2013 20,425.02 1,856.70 1,058.20 504.00 -0.00878 -0.01643 0.004974 -0.01311


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25/11/2013 20,605.08 1,887.45 1,052.95 510.65 0.018995 0.03727 0.002663 -0.00117

22/11/2013 20,217.39 1,818.40 1,050.15 511.25 -0.00058 -0.01804 -0.01226 0.004312

21/11/2013 20,229.05 1,851.50 1,063.10 509.05 -0.01988 -0.02269 -0.02145 -0.01084

20/11/2013 20,635.13 1,894.00 1,086.15 514.60 -0.01231 -0.01384 -0.01535 -0.01782

19/11/2013 20,890.82 1,920.40 1,102.95 523.85 0.00192 -0.00607 0.006048 0.009398

18/11/2013 20,850.74 1,932.10 1,096.30 518.95 0.021883 0.025555 0.009624 0.018574

14/11/2013 20,399.42 1,883.35 1,085.80 509.40 0.010101 0.011106 -0.00679 0.02585213/11/2013 20,194.40 1,862.55 1,093.20 496.40 -0.00432 -0.01084 -0.00196 -0.02801

12/11/2013 20,281.91 1,882.85 1,095.35 510.50 -0.01025 -0.00988 -0.00814 -0.00108

11/11/2013 20,490.96 1,901.55 1,104.30 511.05 -0.00851 -0.01067 -0.0069 -0.02522

8/11/2013 20,666.15 1,921.95 1,111.95 524.10 -0.00755 -0.00638 0.007991 0.003153

7/11/2013 20,822.77 1,934.25 1,103.10 522.45 -0.00346 -0.00518 0.016683 0.004412

6/11/2013 20,894.94 1,944.30 1,084.85 520.15 -0.00381 0.000798 -0.014 -0.01375

5/11/2013 20,974.79 1,942.75 1,100.15 527.35 -0.01253 -0.00774 -0.0005 -0.03457

3/11/2013 21,239.36 1,957.85 1,100.70 545.90 0.002005 -0.00161 0.000909 0.010682

1/11/2013 21,196.81 1,961.00 1,099.70 540.10 0.001525 -0.00257 0.005883 -0.03957

31/10/2013 21,164.52 1,966.05 1,093.25 561.90 0.006187 -0.00198 0.007391 0.016147

30/10/2013 21,033.97 1,969.95 1,085.20 552.90 0.005003 -0.00824 0.004711 0.031416

29/10/2013 20,929.01 1,986.25 1,080.10 535.80 0.017289 0.024798 0.015535 0.006084

28/10/2013 20,570.28 1,937.60 1,063.45 532.55 -0.00549 -0.00332 -0.01447 -0.02988

25/10/2013 20,683.52 1,944.05 1,078.95 548.70 -0.00202 0.000257 0.023538 0.00082

24/10/2013 20,725.43 1,943.55 1,053.85 548.25 -0.00205 0.004538 -0.04762 -0.0187

23/10/2013 20,767.88 1,934.75 1,105.25 558.60 -0.00466 -0.01292 -0.00127 -0.00286

22/10/2013 20,864.97 1,959.90 1,106.65 560.20 -0.00139 0.002299 0.020633 0.004831

21/10/2013 20,893.89 1,955.40 1,084.05 557.50 0.000527 -0.00413 -0.01747 -0.0017

18/10/2013 20,882.89 1,963.50 1,103.15 558.45 0.022635 0.001351 0.018296 -0.00651

17/10/2013 20,415.51 1,960.85 1,083.15 562.10 -0.00645 -0.00427 -0.06889 0.005083

15/10/2013 20,547.62 1,969.25 1,160.40 559.25 -0.00291 -0.00342 0.000345 -0.0169314/10/2013 20,607.54 1,976.00 1,160.00 568.80 0.003838 0.005557 0.004406 0.006261

11/10/2013 20,528.59 1,965.05 1,154.90 565.25 0.012533 -0.00307 0.033815 -0.03725

10/10/2013 20,272.91 1,971.10 1,116.50 586.70 0.001167 0.000355 0.004218 0.027913

9/10/2013 20,249.26 1,970.40 1,111.80 570.55 0.013206 0.012461 0.004778 0.003512

8/10/2013 19,983.61 1,946.00 1,106.50 568.55 0.004439 0.021373 -0.00936 -0.00202

7/10/2013 19,895.10 1,904.85 1,116.90 569.70 -0.00105 -0.00136 0.019209 0.025511

4/10/2013 19,915.95 1,907.45 1,095.65 555.35 0.000697 0.009693 -0.00755 0.031368

3/10/2013 19,902.07 1,889.05 1,103.95 538.20 0.01953 0.041091 0.029695 0.001953

1/10/2013 19,517.15 1,813.00 1,071.65 537.15 0.007064 0.001905 -0.01542 0.01161

30/09/2013 19,379.77 1,809.55 1,088.30 530.95 -0.01777 -0.00908 0.016164 0.015373

27/09/2013 19,727.27 1,826.05 1,070.85 522.85 -0.00841 0.011235 0.016999 0.000957

26/09/2013 19,893.85 1,805.65 1,052.80 522.35 0.001892 0.006556 -0.00384 0.036357

25/09/2013 19,856.24 1,793.85 1,056.85 503.70 -0.00322 -0.0123 -0.0161 0.007673

24/09/2013 19,920.21 1,816.05 1,074.00 499.85 0.000967 0.014169 -0.01726 0.010154

23/09/2013 19,900.96 1,790.50 1,092.70 494.80 -0.01806 -0.03291 0.029298 -0.05953

20/09/2013 20,263.71 1,850.40 1,061.15 525.15 -0.01872 0.044055 0.036467 -0.01952

19/09/2013 20,646.64 1,770.65 1,023.15 535.50 0.033714 0.029313 -0.00769 0.013063

18/09/2013 19,962.16 1,719.50 1,031.05 528.55 0.007953 0.012789 -0.00643 -0.00397

17/09/2013 19,804.03 1,697.65 1,037.70 530.65 0.003113 0.025323 0.040513 -0.0016


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16/09/2013 19,742.47 1,655.20 996.50 531.50 0.000492 -0.03933 -0.04819 -0.006

13/09/2013 19,732.76 1,721.60 1,045.70 534.70 -0.00249 -0.01716 -0.02628 -0.0131

12/9/2013 19,781.88 1,751.40 1,073.55 541.75 -0.01084 0.010965 0.007761 0.011604

11/9/2013 19,997.45 1,732.30 1,065.25 535.50 1.8E-05 0.015885 0.005082 0.021709

10/9/2013 19,997.09 1,705.00 1,059.85 524.00 0.037034 0.062593 0.04186 -0.00912

6/9/2013 19,270.06 1,601.55 1,016.40 528.80 0.015179 0.043582 -0.00054 0.026832

5/9/2013 18,979.76 1,533.25 1,016.95 514.80 0.021958 0.03211 -0.02275 0.01314/9/2013 18,567.55 1,484.80 1,040.35 508.10 0.018091 0.029596 0.016915 -0.01193

3/9/2013 18,234.66 1,441.50 1,022.90 514.20 -0.0351 -0.03811 -0.01456 -0.00514

2/9/2013 18,886.13 1,497.50 1,037.90 516.85 0.014207 0.017413 -0.00034 0.005432

30/08/2013 18,619.72 1,471.65 1,038.25 514.05 0.011814 0.017203 0.020483 0.000389

29/08/2013 18,401.04 1,446.55 1,017.20 513.85 0.022249 -0.02107 0.039453 -0.00214

28/08/2013 17,996.15 1,477.35 977.85 514.95 0.001561 -0.05296 0.030738 -0.03642

27/08/2013 17,968.08 1,557.70 948.25 534.05 -0.03231 -0.02209 0.003327 -0.01929

26/08/2013 18,558.13 1,592.50 945.10 544.45 0.002087 0.007058 -0.00164 0.014989

23/08/2013 18,519.44 1,581.30 946.65 536.35 0.011213 -0.03395 0.047318 0.039941

22/08/2013 18,312.94 1,635.90 902.90 515.35 0.022477 0.007948 0.020759 -0.00116

21/08/2013 17,905.91 1,622.95 884.35 515.95 -0.01882 -0.01456 -0.01571 0.02066

20/08/2013 18,246.04 1,646.75 898.35 505.40 -0.00336 -0.00264 -0.03312 -0.05345

19/08/2013 18,307.52 1,651.10 928.60 533.15 -0.01575 -0.01887 0.009522 -0.00608

16/08/2013 18,598.18 1,682.55 919.80 536.40 -0.04054 -0.02622 -0.00109 0.007203

14/08/2013 19,367.59 1,727.25 920.80 532.55 0.007138 0.016697 -0.02096 -0.0265

13/08/2013 19,229.84 1,698.65 940.30 546.85 0.014819 0.005638 0.009295 -0.00883

12/8/2013 18,946.98 1,689.10 931.60 551.70 0.008355 0.010235 0.029411 -0.02956

8/8/2013 18,789.34 1,671.90 904.60 568.25 0.006646 0.017467 -0.00182 -0.00106

7/8/2013 18,664.88 1,642.95 906.25 568.85 -0.00365 -0.01642 -0.04018 0.028168

6/8/2013 18,733.04 1,670.15 943.40 553.05 -0.0237 -0.06035 -0.0065 0.008808

5/8/2013 19,182.26 1,774.05 949.55 548.20 0.000951 -0.00189 0.014373 -0.019242/8/2013 19,164.02 1,777.40 936.00 558.85 -0.00796 -0.02283 0.007022 -0.02378

1/8/2013 19,317.19 1,818.45 929.45 572.30 -0.00147 -0.00781 -0.00889 -0.00757

31/07/2013 19,345.70 1,832.70 937.75 576.65 -0.00014 -0.01822 0.03461 -0.00571

30/07/2013 19,348.34 1,866.40 905.85 579.95 -0.01258 -0.00726 0.009539 -0.00781

29/07/2013 19,593.28 1,880.00 897.25 584.50 -0.00788 0.008011 -0.00744 -0.01359

26/07/2013 19,748.19 1,865.00 903.95 592.50 -0.00286 0.006158 0.001882 0.014364

25/07/2013 19,804.76 1,853.55 902.25 584.05 -0.01433 -0.03402 0.003164 -0.03152

24/07/2013 20,090.68 1,917.70 899.40 602.75 -0.01047 0.00654 -0.00039 0.001162

23/07/2013 20,302.13 1,905.20 899.75 602.05 0.007069 -0.00802 0.010727 0.001746

22/07/2013 20,159.12 1,920.55 890.15 601.00 0.00046 -0.00672 -0.00264 -0.00266

19/07/2013 20,149.85 1,933.50 892.50 602.60 0.001065 0.00425 0.039248 0.007245

18/07/2013 20,128.41 1,925.30 858.15 598.25 0.008967 -0.00961 -0.01956 0.004439

17/07/2013 19,948.73 1,943.90 875.10 595.60 0.0049 0.003892 -0.00046 -0.01144

16/07/2013 19,851.23 1,936.35 875.50 602.45 -0.00919 -0.00399 0.001715 0.00241

15/07/2013 20,034.48 1,944.10 874.00 601.00 0.003801 0.001596 0.016032 0.005506

12/7/2013 19,958.47 1,941.00 860.10 597.70 0.014251 -0.01967 0.024302 -0.01148

11/7/2013 19,676.06 1,979.55 839.45 604.60 0.019602 0.013989 0.000536 0.021483

10/7/2013 19,294.12 1,952.05 839.00 591.75 -0.00751 0.012475 0.020774 0.010533

9/7/2013 19,439.48 1,927.85 821.75 585.55 0.005918 0.016448 0.004574 0.009351


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8/7/2013 19,324.77 1,896.40 818.00 580.10 -0.00881 -0.01148 0.029338 -0.0067

5/7/2013 19,495.82 1,918.30 794.35 584.00 0.004368 0.008875 -0.00565 0.016749

4/7/2013 19,410.84 1,901.35 798.85 574.30 0.01208 -0.00192 0.040165 0.010678

3/7/2013 19,177.76 1,905.00 767.40 568.20 -0.01481 -0.00985 0.001043 -0.01242

2/7/2013 19,463.82 1,923.85 766.60 575.30 -0.00582 -0.00101 0.009963 0.011802

1/7/2013 19,577.39 1,925.80 759.00 568.55 0.009318 0.026226 -0.02228 0.036723

28/06/2013 19,395.81 1,875.95 776.10 548.05 0.027168 -0.00029 -0.02368 0.0145227/06/2013 18,875.95 1,876.50 794.70 540.15 0.017305 0.05496 0.034826 0.034563

26/06/2013 18,552.12 1,776.15 767.50 521.80 -0.00414 -0.00547 0.021267 -0.0633

25/06/2013 18,629.15 1,785.90 751.35 555.90 0.004749 0.001429 -0.01164 0.012035

24/06/2013 18,540.89 1,783.35 760.15 549.25 -0.01251 -0.01699 0.000987 0.011721

21/06/2013 18,774.24 1,813.90 759.40 542.85 0.002931 -0.00182 -6.6E-05 -0.01916

20/06/2013 18,719.29 1,817.20 759.45 553.35 -0.02773 -0.01337 -0.02599 -0.03166

19/06/2013 19,245.70 1,841.65 779.45 571.15 0.001166 -0.01536 0.000963 -0.00689

18/06/2013 19,223.28 1,870.15 778.70 575.10 -0.00532 -0.01972 0.002507 0.010664

17/06/2013 19,325.87 1,907.40 776.75 569.00 0.007684 0.018226 0.01996 -0.00219

14/06/2013 19,177.93 1,872.95 761.40 570.25 0.01846 0.027415 0.007911 8.77E-05

13/06/2013 18,827.16 1,822.30 755.40 570.20 -0.0113 -0.00975 -0.00942 -0.02031

12/6/2013 19,041.13 1,840.15 762.55 581.90 -0.00534 -0.01081 0.008032 0.021013

11/6/2013 19,143.00 1,860.15 756.45 569.80 -0.01545 -0.01597 0.003509 0.027489

10/6/2013 19,441.07 1,890.10 753.80 554.35 0.000609 0.01791 0.01228 -0.03927

7/6/2013 19,429.23 1,856.55 744.60 576.55 -0.00463 -0.0225 -0.00402 -0.00441

6/6/2013 19,519.49 1,898.80 747.60 579.10 -0.00249 0.025658 0.027529 -0.03629

5/6/2013 19,568.22 1,850.70 727.30 600.50 0.001147 -0.0055 -0.01203 0.005092

4/6/2013 19,545.78 1,860.90 736.10 597.45 -0.0033 0.001291 -0.00704 0.020119

3/6/2013 19,610.48 1,858.50 741.30 585.55 -0.00761 -0.01636 -0.00739 -0.00952

31/05/2013 19,760.30 1,889.15 746.80 591.15 -0.02277 -0.05236 0.00692 0.030661

30/05/2013 20,215.40 1,990.70 741.65 573.30 0.003358 0.009362 -0.00618 0.0196429/05/2013 20,147.64 1,972.15 746.25 562.15 -0.00065 -0.00309 0.002079 0.006514

28/05/2013 20,160.82 1,978.25 744.70 558.50 0.006472 -0.01463 0.004374 -0.00286

27/05/2013 20,030.77 2,007.40 741.45 560.10 0.016431 0.030268 0.00697 0.016018

24/05/2013 19,704.33 1,947.55 736.30 551.20 0.001524 -0.00051 -0.00061 -0.03704

23/05/2013 19,674.33 1,948.55 736.75 572.00 -0.01952 -0.00251 -0.00838 0.015859

22/05/2013 20,062.24 1,953.45 742.95 563.00 -0.00246 0.010265 0.009127 -0.01891

21/05/2013 20,111.61 1,933.50 736.20 573.75 -0.00557 -0.04354 0.011063 0.000785

20/05/2013 20,223.98 2,019.55 728.10 573.30 -0.00307 0.002107 0.011673 0.002095

17/05/2013 20,286.12 2,015.30 719.65 572.10 0.001914 0.007621 -0.02477 -0.00905

16/05/2013 20,247.33 2,000.00 737.70 577.30 0.001699 0.014479 -0.01105 0.033555

15/05/2013 20,212.96 1,971.25 745.90 558.25 0.024575 0.00066 -0.00054 0.01917

14/05/2013 19,722.29 1,969.95 746.30 547.65 0.001554 0.008642 -0.0147 0.026646

13/05/2013 19,691.67 1,953.00 757.35 533.25 -0.02163 -0.01239 -0.01922 -0.0123

11/5/2013 20,122.32 1,977.35 772.05 539.85 0.001975 0.001442 -0.00272 0.000278

10/5/2013 20,082.62 1,974.50 774.15 539.70 0.007175 -0.01201 0.00544 0.028377

9/5/2013 19,939.04 1,998.35 769.95 524.60 -0.00256 0.01188 0.025719 -0.00152

8/5/2013 19,990.18 1,974.75 750.40 525.40 0.005077 0.024374 -0.00319 0.009082

7/5/2013 19,888.95 1,927.20 752.80 520.65 0.010885 0.008101 0.004727 0.008293

6/5/2013 19,673.64 1,911.65 749.25 516.35 0.004994 0.013747 -0.0012 0.033177


9/24

3/5/2013 19,575.64 1,885.55 750.15 499.50 -0.00815 -0.0005 0.017075 0.01249

2/5/2013 19,735.77 1,886.50 737.45 493.30 0.011804 -0.00771 0.02249 0.013983

30/04/2013 19,504.18 1,901.10 721.05 486.45 0.006 -0.00979 0.027915 0.016164

29/04/2013 19,387.50 1,919.80 701.20 478.65 0.005212 0.006532 0.025347 0.019408

26/04/2013 19,286.72 1,907.30 683.65 469.45 -0.00621 -0.01134 -0.04958 -0.01543

25/04/2013 19,406.85 1,929.05 718.40 476.75 0.011791 0.034115 -0.01944 0.003677

23/04/2013 19,179.36 1,864.35 732.50 475.00 0.000497 -0.00769 0.016171 -0.0173222/04/2013 19,169.83 1,878.75 720.75 483.30 0.008033 -0.02554 -0.0208 -0.00793

18/04/2013 19,016.46 1,927.35 735.90 487.15 0.015116 0.014792 -0.02051 0.004836

17/04/2013 18,731.16 1,899.05 751.15 484.80 -0.00073 0.002135 -0.01526 -0.02082

16/04/2013 18,744.93 1,895.00 762.70 495.00 0.020869 0.019395 -0.00393 0.006892

15/04/2013 18,357.80 1,858.60 765.70 491.60 0.006297 0.023958 -0.01349 0.009709

12/4/2013 18,242.56 1,814.60 776.10 486.85 -0.01629 0.019842 -0.0175 -0.01701

11/4/2013 18,542.20 1,778.95 789.80 495.20 0.006914 -0.00463 0.030532 -0.00574

10/4/2013 18,414.45 1,787.20 766.05 498.05 0.01026 -0.00341 0.033989 0.020897

9/4/2013 18,226.48 1,793.30 740.45 487.75 -0.01153 0.003967 -0.00639 -0.00918

8/4/2013 18,437.78 1,786.20 745.20 492.25 -0.00068 0.00897 -0.0163 0.053407

5/4/2013 18,450.23 1,770.25 757.45 466.65 -0.00322 0.01514 0.018723 -0.00075

4/4/2013 18,509.70 1,743.65 743.40 467.00 -0.01565 -0.05812 -0.04851 -0.01741

3/4/2013 18,801.64 1,848.00 780.35 475.20 -0.01265 0.002384 -0.01998 -0.02453

2/4/2013 19,040.95 1,843.60 796.10 487.00 0.009297 -0.00711 0.007692 0.040437

1/4/2013 18,864.75 1,856.75 790.00 467.70 0.001537 -0.00604 -0.0075 0.011072

28/03/2013 18,835.77 1,868.00 795.95 462.55 0.006992 0.009385 0.026544 -0.01948

26/03/2013 18,704.53 1,850.55 775.10 471.65 0.001236 -0.00681 0.008421 0.006488

25/03/2013 18,681.42 1,863.20 768.60 468.60 -0.0029 0.003629 0.001107 -0.03625

22/03/2013 18,735.60 1,856.45 767.75 485.90 -0.00305 0.00062 -0.0061 -0.01724

21/03/2013 18,792.87 1,855.30 772.45 494.35 -0.00485 0.005486 -0.00433 0.001113

20/03/2013 18,884.19 1,845.15 775.80 493.80 -0.00654 -0.02012 -0.00719 -0.0115819/03/2013 19,008.10 1,882.65 781.40 499.55 -0.01489 -0.00894 -0.02359 -0.0002

18/03/2013 19,293.20 1,899.55 800.05 499.65 -0.00694 -0.01256 0.010618 0.012892

15/03/2013 19,427.56 1,923.55 791.60 493.25 -0.00733 0.008536 0.00019 -0.00858

14/03/2013 19,570.44 1,907.20 791.45 497.50 0.010679 0.004072 0.01669 0.00524

13/03/2013 19,362.55 1,899.45 778.35 494.90 -0.0104 -0.00313 0.004507 0.015168

12/3/2013 19,564.92 1,905.40 774.85 487.45 -0.00415 0.006344 -0.01136 -0.03408

11/3/2013 19,646.21 1,893.35 783.70 504.35 -0.00188 -0.00382 0.013424 -0.00485

8/3/2013 19,683.23 1,900.60 773.25 506.80 0.013796 0.01159 0.001877 0.003558

7/3/2013 19,413.54 1,878.70 771.80 505.00 0.008324 -0.00964 0.021015 -0.0004

6/3/2013 19,252.61 1,896.90 755.75 505.20 0.005701 0.000237 0.012851 0.021508

5/3/2013 19,143.17 1,896.45 746.10 494.45 0.013951 0.026908 0.042717 -0.00836

4/3/2013 18,877.96 1,846.10 714.90 498.60 -0.00215 -0.02072 -0.01016 -0.0024

1/3/2013 18,918.52 1,884.75 722.20 499.80 0.003016 0.007777 -0.00332 -0.00469

28/02/2013 18,861.54 1,870.15 724.60 502.15 -0.0153 -0.01652 0.006716 -0.0106

27/02/2013 19,152.41 1,901.30 719.75 507.50 0.007193 -0.00208 -0.0083 -0.00118

26/02/2013 19,015.14 1,905.25 725.75 508.10 -0.01651 -0.00312 -0.00994 -0.00167

25/02/2013 19,331.69 1,911.20 733.00 508.95 0.00076 -0.01444 0.018103 -9.8E-05

22/02/2013 19,317.01 1,939.00 719.85 509.00 -0.00043 0.001109 0.000556 0.014047

21/02/2013 19,325.36 1,936.85 719.45 501.90 -0.01629 -0.0061 -0.00354 0.002893


10/24

20/02/2013 19,642.75 1,948.70 722.00 500.45 0.000358 0.001027 0.021914 -0.0189

19/02/2013 19,635.72 1,946.70 706.35 510.00 0.006881 0.021732 0.021971 0.019503

18/02/2013 19,501.08 1,904.85 691.00 500.15 0.00169 -0.01358 -0.01065 0.007425

15/02/2013 19,468.15 1,930.90 698.40 496.45 -0.00149 -0.00984 -0.00983 -0.01221

14/02/2013 19,497.18 1,950.00 705.30 502.55 -0.00567 0.007386 -0.00319 -0.00813

13/02/2013 19,608.08 1,935.65 707.55 506.65 0.002402 0.009812 0.042071 0.007727

12/2/2013 19,561.04 1,916.75 678.40 502.75 0.005149 0.00358 0.028407 0.02558611/2/2013 19,460.57 1,909.90 659.40 490.05 -0.00124 0.013654 -0.01722 -0.00234

8/2/2013 19,484.77 1,884.00 670.85 491.20 -0.00489 -0.01979 0.003061 -0.01083

7/2/2013 19,580.32 1,921.65 668.80 496.55 -0.00303 -0.02068 -0.00224 -0.01529

6/2/2013 19,639.72 1,961.80 670.30 504.20 -0.00102 0.022371 -0.00149 -0.0133

5/2/2013 19,659.82 1,918.40 671.30 510.95 -0.00464 0.013646 -0.01523 -0.00508

4/2/2013 19,751.19 1,892.40 681.60 513.55 -0.00152 0.016812 -0.00964 -9.7E-05

1/2/2013 19,781.19 1,860.85 688.20 513.60 -0.00574 -0.02195 -0.00094 0.022944

31/01/2013 19,894.98 1,902.15 688.85 501.95 -0.00551 0.008023 -0.00138 0.013236

30/01/2013 20,005.00 1,886.95 689.80 495.35 0.000705 0.01573 -0.0034 -0.01741

29/01/2013 19,990.90 1,857.50 692.15 504.05 -0.00561 -0.01697 -0.00713 0

28/01/2013 20,103.35 1,889.30 697.10 504.05 -9E-06 -0.01523

25/01/2013 20,103.53 1,918.30 p: www.

capitaline.co

m


11/24

Market data Market Ultrtech Cement HCL GlenMArk

Return(Daily) 0.000201 -0.000485421 0.00285 3.98015E-05

Variance(Daily) 0.000122 0.000311605 0.000331 0.000316253

SD(Daily) 0.011024 0.01765234 0.018186 0.017783501

Annual Returns 0.050168 -0.121355373 0.71256 0.009950377Annual Variance 0.030381 0.077901277 0.082685 0.079063231

Annual SD 0.1743 0.279108003 0.28755 0.281181847

Beta (Slope) 1 0.869129027 0.424015 0.366906255

Alpha ( Intercept) 0 -0.00065983 0.002765 -3.41358E-05

Covariance wrt Mkt 0.000122 0.000105618 5.17E-05 4.47669E-05

Correlation 1 0.54276214 0.257537 0.22789717

Coefficient Of Variance 3.474359 -2.299922914 0.403544 28.25841126


12/24

INDEX

Indifference Point Very poor

Tax Rate 20%

Actual Plan 1 Plan 2 Debt Cost 12%

Capital 108643.2 108643.2 108643.2 Face Value of Sha 2

Face Value 2 2 2 Capital 108643.2

Cost of Debt 12.2% 12.2% 12.2% Debt Percentage 89%Tax Rate 20% 20% 20% Debt Value 6.00

Debt 6% 0% 10% Equity Value 108637.20

Debt Value 6265.8 0 10864.32 Change in EBIT 500

Equity Value 102377.4 108643.2 97778.88 Less Interest @ 1 0.73

No Of Share 54321.6 54322 48889 PBT 499.27

Interest 764.6 0 1325.745966 TAX Value 99.98

0.19515 0.19515 PAT 399.28

13255.51 13255.51 No of Share 54318.60

EPS 0.01

Capital Debt Equity D/E Ratio

Interest

Coverage

Ratio Estimated Beta Cost of Equity

108,643.20 6,265.80 102,377.40 6.1% 66.22 0.42 9.4%

108,643.20 0.00 108,643.20 0.0% No debt 0.40 9.3%

108,643.20 4,000.00 104,643.20 3.8% 126.58 0.42 9.3%

108,643.20 10,000.00 98,643.20 10.1% 42.19 0.44 9.4%

108,643.20 20,000.00 88,643.20 22.6% 19.47 0.48 9.5%

108,643.20 50,000.00 58,643.20 85.3% 7.23 0.68 9.8%

108,643.20 70,000.00 38,643.20 181.1% 4.99 0.99 10.4%

Total Fund

Requirement Debt

Cost of

Debt Equity

Cost of

Equity EBIT Interest

108643.20 6265.80 12.2% 102377.40 9.4% 50631.10 764.60

108643.20 0.00 6.0% 108643.20 9.3% 50631.10 0.00

108643.20 4000.00 10.0% 104643.20 9.3% 50631.10 400.00108643.20 10000.00 12.0% 98643.20 9.4% 50631.10 1200.00

108643.20 20000.00 13.0% 88643.20 9.5% 50631.10 2600.00

108643.20 50000.00 14.0% 58643.20 9.8% 50631.10 7000.00

108643.20 70000.00 14.5% 38643.20 10.4% 50631.10 10150.00

Capital Structure

Cost of Capital Estimate with different Debt Equity Mix

EPS= (1-T)(EBIT-

Interest)/No of Share

EBIT ( Indifference Point)


13/24

Poor Regular Normal Good Very Good

20% 20% 20% 20% 20%

12% 12% 12% 12% 12%

2 2 2 2 2

108643.2 108643.2 108643.2 108643.2 108643.2

89% 89% 89% 89% 89%96692.45 96692.45 96692.45 96692.45 96692.45

11950.75 11950.75 11950.75 11950.75 11950.75

13255.51 100000 200000 300000 1000000

11799.14 11799.14 11799.14 11799.14 11799.14

1456.37 88200.86 188200.86 288200.86 988200.86

291.65 17663.07 37689.04 57715.00 197896.75

1164.72 70537.79 150511.82 230485.86 790304.11

5975.38 5975.38 5975.38 5975.38 5975.38

0.19 11.80 25.19 38.57 132.26

0.00

Cost of Debt Cost of Capital

12.20% 9.39% Cost of Debt 12.2%

6.00% 9.33% Return(HCL) 71.3%

10.00% 9.30% R m 10.4%

12.00% 9.41% R f 8.6%

13.00% 9.63% s 0.42

14.00% 10.46% Tax Rate 20%

14.50% 11.16% B Unlvered 0.40

EBT Value of Equity

Value of

Debt Value of Firm

Overall Cost of

Capital

49866.50 532578.11 6265.80 538843.91 9.39%

50631.10 542808.74 0.00 542808.74 9.33%

50231.10 537239.26 4000.00 541239.26 9.30%49431.10 526613.25 10000.00 536613.25 9.41%

48031.10 507787.16 20000.00 527787.16 9.63%

43631.10 444138.92 50000.00 494138.92 10.46%

40481.10 389927.63 70000.00 459927.63 11.16%

Impact of Finnacial Leverage

Constants

9.3

6.00

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

0.0

C

o

st

o

f

F

u

n

d

i

n

g

Debt


14/24

9.3% 9.4% 9.5%9.8%

10.4%

%

10.00%

12.00%13.00%

14.00%14.50%

9.33% 9.30% 9.41% 9.63%10.46%

11.16%

3.8% 10.1% 22.6% 85.3% 181.1%

Cost of Equity

Cost of Debt

Cost of Capital

Ratio


15/24

INDEX

Very poor

Tax Rate 17%






Debt Value 5806.5 0 3103.83 Change in EBIT 500

Equity Value 25231.8 31038.3 27934.47 Less Interest @ 1 0.45

No Of Share 31038.3 31038 27934 PBT 499.55

Interest 436.9 0 233.5422935 TAX Value 86.38

0.06211 0.06210 PAT 413.17

2330.92 2330.92 No of Share 31032.30

EPS 0.01


n eres

Coverage


31,038.3 5,806.5 25,231.8 23.0% 10.27 0.37 9.3%

31,038.3 0.0 31,038.3 0.0% No debt 0.31 9.2%

31,038.3 5,000.0 26,038.3 19.2% 12.82 0.36 9.2%

31,038.3 7,000.0 24,038.3 29.1% 8.84 0.38 9.3%

31,038.3 9,000.0 22,038.3 40.8% 6.65 0.41 9.3%

31,038.3 10,000.0 21,038.3 47.5% 5.61 0.43 9.4%

31,038.3 15,000.0 16,038.3 93.5% 2.72 0.55 9.6%

Total Fund

Requirement Debt

Cost of

Debt Equity

Cost of


31038.30 5806.50 7.5% 25231.80 9.3% 4486.90 436.90

31038.30 0.00 6.0% 31038.30 9.2% 4486.90 0.00

31038.30 5000.00 7.0% 26038.30 9.2% 4486.90 350.00

31038.30 7000.00 7.3% 24038.30 9.3% 4486.90 507.50

31038.30 9000.00 7.5% 22038.30 9.3% 4486.90 675.00

31038.30 10000.00 8.0% 21038.30 9.4% 4486.90 800.00

31038.30 15000.00 11.0% 16038.30 9.6% 4486.90 1650.00


Capital Structure

Indifference Point

EPS= (1-T)(EBIT-


EBIT ( Indifference Point)


16/24


17% 17% 17% 17% 17%

8% 8% 8% 8% 8%

1 1 1 1 1

31038.3 31038.3 31038.3 31038.3 31038.3

89% 89% 89% 89% 89%27624.09 27624.09 27624.09 27624.09 27624.09

3414.21 3414.21 3414.21 3414.21 3414.21

2330.92 100000 200000 300000 1000000

2078.53 2078.53 2078.53 2078.53 2078.53

252.39 97921.47 197921.47 297921.47 997921.47

43.64 16931.89 34223.18 51514.48 172553.53

208.75 80989.58 163698.29 246407.00 825367.94

3414.21 3414.21 3414.21 3414.21 3414.21

0.06 23.72 47.95 72.17 241.74

0.00


7.52% 8.69% Cost of Debt 7.5%

6.00% 9.15% R(GlenMark) 1.0%

7.00% 8.69% R m 10.4%

7.25% 8.55% R f 8.6%

7.50% 8.43% s 0.37

8.00% 8.48% Tax Rate 17%

11.00% 10.27% B Unlvered 0.31

EBT Value of Equity

Value of

Debt Value of Firm

Overall Cost of

Capital

4050.00 43734.46 5806.50 49540.96 8.69%

4486.90 49011.30 0.00 49011.30 9.15%

4136.90 44757.37 5000.00 49757.37 8.69%

3979.40 42842.42 7000.00 49842.42 8.55%

3811.90 40802.89 9000.00 49802.89 8.43%

3686.90 39335.53 10000.00 49335.53 8.48%

2836.90 29600.34 15000.00 44600.34 9.35%


Constants

9.2%

6.00%

9.15

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

0.0%

C

o

s

t

o

f

F

u

n

d

i

n

g

Debt Ratio


17/24

9.2% 9.3% 9.3% 9.4%9.6%

7.00% 7.25%7.50%

8.00%

11.00%

8.69% 8.55% 8.43% 8.48%

10.27%

19.2% 29.1% 40.8% 47.5% 93.5%

Cost of EquityCost of Debt

Cost of Capital


18/24

INDEX

Very poor

Tax Rate 26%






Debt Value 63686 0 21603.42 Change in EBIT 500

Equity Value 152348.2 216034.2 194430.78 Less Interest 2238.84

No Of Share 21603.42 21603 19443 PBT -1738.84

Interest 3300 0 1119.418491 TAX Value -455.38

0.38253 0.38253 PAT -1283.46

11195.74 11195.74 No of Share 17282.74

EPS -0.07

Check


n eres

Coverage


216,034.20 63,686.00 152,348.20 41.8% 122.27 0.87 10.2%

216,034.20 0.00 216,034.20 0.0% No debt 0.66 9.8%

216,034.20 20,000.00 196,034.20 10.2% 474.71 0.71 9.9%

216,034.20 40,000.00 176,034.20 22.7% 224.17 0.78 10.0%

216,034.20 50,000.00 166,034.20 30.1% 161.40 0.81 10.1%

216,034.20 60,000.00 156,034.20 38.5% 103.46 0.85 10.1%

216,034.20 80,000.00 136,034.20 58.8% 63.05 0.95 10.3%

Total Fund

Requirement Debt

Cost of

Debt Equity

Cost of


216034.20 63686.00 5.2% 152348.20 10.2% 403500.00 3300.00

216034.20 0.00 4.0% 216034.20 9.8% 403500.00 0.00

216034.20 20000.00 4.3% 196034.20 9.9% 403500.00 850.00216034.20 40000.00 4.5% 176034.20 10.0% 403500.00 1800.00

216034.20 50000.00 5.0% 166034.20 10.1% 403500.00 2500.00

216034.20 60000.00 6.5% 156034.20 10.1% 403500.00 3900.00

216034.20 80000.00 8.0% 136034.20 10.3% 403500.00 6400.00

Capital Structure

Indifference Point


EBIT(Indifference Point)

EPS= (1-T)(EBIT-



19/24


26% 26% 26% 26% 26%

5% 5% 5% 5% 5%

10 10 10 10 10

216034.2 216034.2 216034.2 216034.2 216034.2

20% 20% 20% 20% 20%43206.84 43206.84 43206.84 43206.84 43206.84

172827.36 172827.36 172827.36 172827.36 172827.36

11195.74 100000 200000 300000 1000000

2238.84 2238.84 2238.84 2238.84 2238.84

8956.90 97761.16 197761.16 297761.16 997761.16

2345.69 25602.31 51790.95 77979.58 261300.02

6611.21 72158.85 145970.22 219781.58 736461.15

17282.74 17282.74 17282.74 17282.74 17282.74

0.38 4.18 8.45 12.72 42.61

0.00


5.18% 8.30% Cost of Debt 5.2%

4.00% 9.80% R(Ultratech) -12.1% 2

4.25% 9.26% R m 10.4% 3

4.50% 8.76% R f 8.6% 4

5.00% 8.59% s 0.87 5

6.50% 8.65% Tax Rate 26% 6

8.00% 8.68% B Unlvered 0.66

EBT Value of Equity

Value of

Debt Value of Firm

Overall Cost of

Capital

400200.00 3937258.77 63686.00 4000944.77 8.30%

403500.00 4119220.10 0.00 4119220.10 9.80%

402650.00 4073107.14 20000.00 4093107.14 9.26%401700.00 4018583.01 40000.00 4058583.01 8.76%

401000.00 3985573.95 50000.00 4035573.95 8.59%

399600.00 3942822.40 60000.00 4002822.40 8.65%

397100.00 3849920.17 80000.00 3929920.17 8.68%


Constants

C

o

s

t

o

f

F

u

n

d

i

n

g


20/24

9.8% 9.9% 10.0% 10.1%10.1%

4.00% 4.25%4.50%

5.00%

6.50%

9.80%9.26%

8.76% 8.59% 8.65%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

0.0% 10.2% 22.7% 30.1% 38.5%

Cost

Cost

Cost

Debt Ratio


21/24

10.3%

8.00%8.68%

58.8%

of Equity

of Debt

of Capital


22/24


23/24

INDEX

Industry Sun Pharma Glenmark Cipla Dr. Reddy

Ranbaxy-Dec

122

Optimum

Glenmark0.35 0.01 0.23 0.06 0.25 2.38 0.41

Industry Ambuja Ultratech Birla JK Prism

Optimum

Ultratech

0.44 0.01 0.34 0.5 0.9 1.3 0.3

Industry

Infy/MS/TCS/C

ognizent/HP/C

apeg. HCL Wipro IBM

Tech

Mahindra

Optimum

HCL

0.11 0 0.1 0.23 0.25 0.33 0.038

Industry Capital Equity D/E Ratio

Interest

Coverage

Ratio

Estimated

Beta Cost of Equity

Cost of

Debt

HCL Current 108,643.20 102,377.40 6.12% 6621.91% 0.4240 9.36% 12.20%

HCL Optimal 108,643.20 104,643.20 3.82% ######## 0.4166 9.35% 10.00%

Glenmark Current 31,038.30 25,231.80 23.01% 1026.99% 0.3669 9.26% 7.52%

Glenmark Optimal 31,038.30 22,038.30 40.84% 664.73% 0.4124 9.34% 7.50%

Ultratech Current 216,034.20 152,348.20 41.80% ######## 0.8691 10.16% 5.18%

Ultratech Optimal 216,034.20 166,034.20 30.11% ######## 0.8118 10.06% 5.00%

Industry Analysis: Debt/Equity Ratio

Pharma

Cement

IT- Software


24/24

Cost of

Capital

9.39%

9.30%

8.69%

8.43%

8.30%

8.59%

Capital Structure Group 11

Documents

Transcript of Capital Structure Group 11