Fmi S14

Drivers of Shareholder Vlaue
~ Reputation in the Capital Markets

~ Growth (Future Growth Prospects)
~ Current Profitability (earned / invested)
~ Risk (lower)
Assets … Shares
~ estimated future cash flows … current profitabiltity, future prospects …
~ expected rate of returm lower if the reputation in the capital markets is higher
risk if lower will lead to lower expected rate of return
… assume that SBI will go at a pace which is equal to economy

… 4.5%
…
IV of share price of SBI = D1/(ke-g)
D1 is the expected dividend by SBI … in the coming year
Ke is the expected rate of return by investors
g is the growth rate in the long run
IV of share price of SBI = D1/(.105-.045)
… constant growth model
FY==> 20 19 18 17 16 15 14 13 12
DPS 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81
Do 1.81
Ke 10.50% Y … axis … the intercept is the risk free rate of return, 6%
g 0%
IV D1/(ke-g)
IV 17.2381
Divyashakti Granites
11 10 9 8 7 6 5
1.81 1.81 1.81 1.81 1.81 1.81 1.81
ü SJVN … Last Year DPS 2.2 …. Ke 10% … Constant Dividend Model
IV D1/(ke-g)
IV 22
ü Revisiting SJVN …. Given EPS 4.23, BV 29.97 Constant Dividend Growth Model
DPS 2.2 2
EPS 4.23 4
BV 29.97 25
Ploughed Back Ratio 48.0% 50%

ROE 14.1% 16%
D0 2.2 2
Ke 10.0%
G 6.8% 8.00%
D1 2.349016
IV $72.80
Today's Market Price 21.75
eps 7.5 50 3.5
dps 4
80
Summer Co. expects to pay a dividend of $4.00 per

share—one year from now—out of earnings of $7.50
per share. If the required rate of return on the stock Seven-Seas Co. just paid a dividend of $3
is 15 percent and its dividends are growing at a per share out of earnings of $5 per share.
constant rate of 10 percent per year, calculate the If its book value per share is $40.00 and its
present value of growth opportunities for the stock market price is $52.50 per share, calculate
(PVGO). the required rate of return on the stock.
4 3
7.5 5
40
47% 40%
12.5%
15% 11%
10% 5.00%
4 3
80 52.5 50
d0 3
d1
eps 5
roe 0.125
plouback 0.4
g 0.05
51.72414 52.5
ü Hindustan Unilever … Last Year DPS 34.5 …. Ke 8.5% … Constant Dividend Model
IV 405.882352941176
For the year 2020 2019 2018 2017 2016
123.2 EPS (Rs) 31.2 27.9 24.2 20.8 19.1
170.3 BVPS (Rs) 38.2 36.5 33.8 31.3 30.5
109.5 DPS (Rs) 34.5 22.0 20.0 17.0 16.0
Ploughback Ratio -11% 21% 17% 18% 16%
Brands, Products, Monopoly traits, Abnormal Returns is very very high
History of over 100 years
ROE 81.7% 76.4% 71.6% 66.5% 62.6%
Expectation 8.50%
Ploughback Ratio using a five year data reflects on an average

Dividend Payout Ratio 89%
Ploughback Ratio 11%
ROE 72%
Growth Rate 8.045%
D0 34.5
Ke 8.5000%
D1 37.2753963593658
IV 8,185.69
… we can say that valuations severely depend on the estimates of growth rates
and estimates of expected rate of return
ü Issues: How to handle a loss making company in a DDM model?
Year 20 19 18 17 16 15
DPS 0.00 0.00 0.00 0.00 0.00 0.00
EPS 2.70 0.20 -1.00 -1.20 -3.90
BVPS 52.10 49.40 49.20 50.30 21.80
assumptions about the future and the potential turnaround
EPS1 5.00 Ploughback Ratio 80%

DPS1 1.00 ROE 10%
ROE 10% G 8.00%
Ke 14%
IV = D1/(ke-G)
IV = D1/(ke-G) $ 16.67
2020 2019 2018 2017 2016
EPS (Rs) $ 44.80 $ 12.70 $ 6.00 $ 8.20 $ 5.90
BVPS (Rs) $ 115.20 $ 77.60 $ 69.20 $ 56.00 $ 40.90
DPS (Rs) $ 4.50 $ 2.00 $ 1.30 $ 1.20 $ 1.20

ROE 39% 16% 9% 15% 14%
Ke 13%
When growth rates are higher than the cost of equity (market capitalization rate)
then … please make use of phased growth model
30% … for seven years and then a longterm constant growth of 4%
D0 D1 D2 D3 D4 D5 D7 D6 D8 = D7(1+4% LT Growth Rate)

4.5 P7 … this will based on a constant growht model
P7 = D8/(Ke-Constant LT Growth)
$ 5.85 $ 7.61 $ 9.89 $ 12.85 $ 16.71 $ 21.72 $ 28.24 $ 29.37
326.2923
PV $ 5.85 $ 7.61 $ 9.89 $ 12.85 $ 16.71 $ 21.72 $ 354.53
$196.07
ü Before Pandemic, around August 2019 (g 30%, ke 13%) 200-250
More Professional Board Members around February 2020 (g 30%, ke 12%) 300-350
After Pandemic around April 2020 (g 40%, ke 12%) 450-500
After China’s Exit around July 2020 (g 50%, ke 12%) 500-650
, After Credit Rerating Upward , around September 2020 (g 50%, ke 11%) 700-850
+4% LT Growth Rate)
on a constant growht model
t LT Growth)
From PGP_437_Nirmal_Gopi to Everyone: 11:05 AM
Tata
From PGP_456_Muskan_Valbani to Everyone: 11:05 AM
ratan
From 469_SHELLY BANSAL to Everyone: 11:05 AM
ratan tata
tata
From 459_Sonal Pardeshi to Everyone: 11:05 AM
tata
perceived
From POOJA JAISWAL to Everyone: 11:05 AM
percieved
From DEVESH BANSAL to Everyone: 11:05 AM
Perceieved
From PGP_455_Mehendi_Basu to Everyone: 11:05 AM
perceived
From PGP_482_T M Nived_ NA to Everyone: 11:05 AM
perceived
From PGP_450_Joel_Y to Everyone: 11:06 AM
perceived
perceived

mx+c
Y = a+bX
From PGP_452_Kshitij_ Ahluwalia to Everyone: 11:08 AM
return = m(risk) + c
From PGP_468_Sanchi _Virmani to Everyone: 11:08 AM
y= a + bx
From PGP_438_Anjana_Ramachandran to Everyone: 11:08 AM
return = mrisk+c
From 479_Sun Swrang Basumatary to Everyone: 11:08 AM
y=mx+c
From PGP_442_Ayushi_Saxena to Everyone: 11:08 AM
y = mx + c
From ADITI BISWAS to Everyone: 11:08 AM
y=mx+c
From PGP_465_Sunidhi_Raje to Everyone: 11:08 AM

linear equation
From PGP_445_Himanshu_Agrawal to Everyone: 11:08 AM
y = mx + c
From Akshay Raj to Everyone: 11:08 AM
y=mx+c
From JHANVI GUPTA to Everyone: 11:08 AM
y = mx + c
From PGP_450_Joel_Y to Everyone: 11:08 AM
y = return + risK
From Shubham Agrawal to Everyone: 11:08 AM
y=mx + c
From PGP_463_Priyadarshini_Balamurugan to Everyone: 11:08 AM
y=mx+c
From IPSA HARDAHA to Everyone: 11:08 AM
y = mx+c
straight line
From Uttama Hande to Everyone: 11:08 AM
y = mx + c
y= mx+c
expected return = m(risk)+c
return = fix returb + m. risk
From PGP_477_Srishti_NA . to Everyone: 11:09 AM
expected return = m(risk)+C
risk free rate is not 0
dividend + capital appreciation
Dividends
dividend and profit
capital gain
Increase in price of share
dividend
From PGP_467_Kartik_Narayana to Everyone: 11:18 AM
dividends and capital gain
dividend and profit
capital gain
From 441_ASHWARYA BISEN to Everyone: 11:18 AM
price rice
capital appreciation if price increasees
dividend , capital gain
Dividend
divdidend
dividend and capital profit
dividend and capital profit
price, didvident, yield
D1/0.045
return rate
g = growth
growth rate.
growth rate
p = cf / r-g
Po = D1 / (r-g)
zero
0
g=0
0
0
0
0
0
0
0\
Growth = 0
From Aditya Thapliyal to Everyone: 11:23 AM
0
0
growth rate 0 as dividend not increasing
g=0
0
0
p = 1.81/ o.105
17.23 = price
From PGP_464_Rahul_Garg to Everyone: 11:25 AM
17.23
1.81/0.105
From VISHWAJEET THRANGZAG NEGI to Everyone: 11:25 AM
17.23
17.23
17.23
17.23
1.81/0.105
1.81/.105=17.238
17.23
17.23
17.23
1.81/(1.05)
17.23
17.23
17.23
17.238
22
2.2/0.1 = 22
22
22
2.2/.1
22
22
2.2/0.1 = 22
22
From Aditya Thapliyal to Everyone: 11:28 AM
2.2/0.1
IV = 22
22
22
2.2/10% , 22
405.88
34.5/0.085 =
405.88
405.88
405.88
405.882
405.89
405.88
From SOUMYA PASI to Everyone: 11:31 AM
405.88
409.411
34.5/0.085 = 405.88

405.8
405.8
405.88
405.88

405.88 intrincsic value
405.8824

405.8823
retained earnings
reinvest.
reinvested
Reinvested
reinvested
Reinvested
Retained earning, (liquidity purposes or reinvestment)
reinvested in the company
Plough back ratio = 75.14%
75%
From 486_Tushar Kumar to Everyone: 11:34 AM
75.14
75.14%
Err:509
75%
75.13%
DP ratio 24.86%
24.86%
24.86%
24.86
more returns
same as equity returns.
Ke only
Same rate of return
10.50%
10.50%
10.50%
10.50%
10.50%
10.50%
10.5
Roe = eps / price
Roe =eps/bps
6.95
6.96%
6.96%
6.96%
6.96^
6.96%
rate of retained earnings * retention ratio = growth rate
retyurns on reinvested = ROE % × llloughed back amount
PB*ROE
6.96%
d1/(ke-g)
ke-g
D/ke-g
D/ke-g
D/(K-g)
d1/ke-g
Div/(ke-g)
Div/(Ke-g)
Div/(Ke-g)

1.905
ke 10.5
36.38
36.3
36.28
36.28
36.3
36.3
36.3
36.3
36.28
Retained ratio
2
g = 6.72%
g = 6.78%, IV = 68.18
73.125
68.2
68.2
68.2
g = 6.76% and IV = 68.2
Buy
buy
Buy
buy
undervalued
buy
Buy
Buy
From PGP_436_Akul_Khullar to Everyone: 11:47 AM
buy
BUY
buy
From PGP_444_Anu_Sahithi to Everyone: 11:47 AM
buyy
Buy
buy
buy
From KARU VYSALI to Everyone: 11:47 AM
buy
Growth trends. so buy
buy
buy
buy
From PGP_474_Sourabh_Gupta to Everyone: 11:49 AM
negative growth rate
sell
From PGP_474_Sourabh_Gupta to Everyone: 11:50 AM
ploughed back ratio*
market leader
corporate governance strong
High Reputation
super profits?
Abnormal Profits
company is in huge profit
High profits
profit
high profits
too high profit
very high profits
From SOUMYA PASI to Everyone: 11:53 AM
high profit
high profits
high profit
high profits
1-Dividend
ratio
1-0.8888
7452
7440
Bracket in the formula
brackets
7440
0.005
7440
7440
From PGP_465_Sunidhi_Raje to Everyone: 12:00 PM

divided by 0.5%
From Shubham Agrawal to Everyone: 12:00 PM
7440
From Akshay Raj to Everyone: 12:00 PM
7440
8191
From Uttama Hande to Everyone: 12:00 PM
8191.2
From 459_Sonal Pardeshi to Everyone: 12:00 PM
8191.2
From 441_ASHWARYA BISEN to Everyone: 12:00 PM
8191.2
From POOJA JAISWAL to Everyone: 12:01 PM
2,160
From PGP_452_Kshitij_ Ahluwalia to Everyone: 12:01 PM
BUY
From PGP_455_Mehendi_Basu to Everyone: 12:01 PM
Buy
From PGP_442_Ayushi_Saxena to Everyone: 12:01 PM
buy
From VISHWAJEET THRANGZAG NEGI to Everyone: 12:01 PM
Buy
From PGP_467_Kartik_Narayana to Everyone: 12:01 PM
buy
From PGP_450_Joel_Y to Everyone: 12:01 PM
Overpriced
From PGP_456_Muskan_Valbani to Everyone: 12:05 PM
what is the first row sir?
From PGP_474_Sourabh_Gupta to Everyone: 12:05 PM
dividends and growth rate would both be negative
per share?
year
@muskan.
okay
Capital appreciation maybe. and a hope that dividends will be there in future
Future worth can be high
From PGP_450_Joel_Y to Everyone: 12:07 PM
Compare with a similar company, at what level the company started paying dividend
high
high
From PGP_482_T M Nived_ NA to Everyone: 12:09 PM
high
From SOUMYA PASI to Everyone: 12:09 PM
high
4
80%?
From DEVESH BANSAL to Everyone: 12:09 PM
80%
80%
From VISHWAJEET THRANGZAG NEGI to Everyone: 12:09 PM
80
From PGP_437_Nirmal_Gopi to Everyone: 12:09 PM
80%
0.8
From Akshay Raj to Everyone: 12:09 PM
80
0.8
From ADITI BISWAS to Everyone: 12:09 PM
80
80%
From 459_Sonal Pardeshi to Everyone: 12:09 PM
80%
8%
From DEVESH BANSAL to Everyone: 12:10 PM
8%
8%
8%
8
From PGP_452_Kshitij_ Ahluwalia to Everyone: 12:10 PM
8%
8%
overvalued, sell
From Shubham Agrawal to Everyone: 12:10 PM
sell
Thank you sir
FY==> 20 19 18 17 16 15 14 13 12
DPS 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81
EPS 7.28
BVPS 104.6
ROE =earn/invested 7.0%
Ploughed back 5.47 75%

Reinvested amount 5.47 75%
we can reasonably assume that … reinvested amount … rate of return to be earned will be equal to ROE
Growth Rate =Ploughed Back Ratio X ROE 5.25
=Reinvested Ratio X ROE
=(1 - Dividend Payout Ratio) X ROE
IV D1/(Ke-G)
D1 D0*(1+G) $1.91
Ke 10.50%
G 5.25%
IV $36.29
11 10 9 8 7 6 5
1.81 1.81 1.81 1.81 1.81 1.81 1.81
Drivers of Shareholder Vlaue
~ Reputation in the Capital Markets
~ Growth (Future Growth Prospects)
~ Current Profitability (earned / invested)
~ Risk (lower)
Assets … Shares
~ estimated future cash flows … current profitabiltity, future prospects …
~ expected rate of returm lower if the reputation in the capital markets is higher
risk if lower will lead to lower expected rate of return
LT Growth of economy is going to be 4.5%
…
TVM … Dividiend of last year … and a perpetual growth rate of 4.5%
SBI if it is a mirror image of the Economy

… D1 = D0(1+4.5%)
IV = D1/(Ke-G)
Government of India instruments at 6% rate of return

Stock market investing will be a little risk
Ke = 10.50%
FY==> 20 19 18 17 16 15 14 13 12
DPS 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81 1.81
EPS 7.28
BVPS 104.6
Ploughback amount is 5.47 75%
Reinvestment amount is 5.47 75%
ü Revisiting Divyashakti Granites …. Given BV 104.6 Constant Dividend Growth Model
ROE =earned / invested 7.0%
assuming that the ploughed back money earns the same rate of return (as was happening in the past)
Growth =Ploughback Ratio X ROE 5.25%
Do 1.81
D1 1.905025 being Do X (1+g)
Ke 10.50%
Growth 5.25%
IV =D1/(ke-g) 36.28619
Divyashakti Granites
11 10 9 8 7 6 5
1.81 1.81 1.81 1.81 1.81 1.81 1.81
ü SJVN … Last Year DPS 2.2 …. Ke 10% … Constant Dividend Model
Do 2.2
Ke 10%
ü Revisiting SJVN …. Given EPS 4.23, BV 29.97 Constant Dividend Growth Model
DPS 2.2
Ke 10%
EPS 4.23
BVPS 29.97
ROE 14%
Ploughback Ratio 48%
Growth Rate 6.77%
Next year dividend, D1 $ 2.35
IV $ 72.80
For the
2020 2019 2018 2017 2016
year three years
EPS (Rs) $ 31.20 $ 27.90 $ 24.20 $ 20.80 $ 19.10 $ 83.30
BVPS (Rs) $ 38.20 $ 36.50 $ 33.80 $ 31.30 $ 30.50

$ 108.50
DPS (Rs) $ 34.50 $ 22.00 $ 20.00 $ 17.00 $ 16.00 $ 76.50
ROE 82% 76% 72% 66% 63% 77%
DivPayout 111% 79% 83% 82% 84% 92%
Ploughback -11% 21% 17% 18% 16% 8%
ü Hindustan Unilever … Last Year DPS 34.5 …. Ke 8.5% … Constant Dividend Model
Can we use the last three years averages to make sense
D0 $ 34.50
Growth 6.3%
D1 $ 36.66
Ke 8.50%
IV $ 1,642.04
MP $ 2,150.00
market seems to be overvaluing in comparison to our estimates
Year 20 19 18 17 16 15
DPS $ - $ - $ - $ - $ - $ -
EPS $ 2.70 $ 0.20 $ (1.00) $ (1.20) $ (3.90)
BVPS $ 52.10 $ 49.40 $ 49.20 $ 50.30 $ 21.80
Ke 14% … Constant Dividend Growth Model

EPS1 $ 5.00
DPS1 $ 1.00
BVPS $ 52.10
ROE 9.6%
Ke 14%
Growth 7.7%
IV $ 15.82
Per Share Indicators 2020 2019 2018 2017 2016
EPS (Rs) $ 44.80 $ 12.70 $ 6.00 $ 8.20 $ 5.90
BVPS (Rs) $ 115.20 $ 77.60 $ 69.20 $ 56.00 $ 40.90
DPS (Rs) $ 4.50 $ 2.00 $ 1.30 $ 1.20 $ 1.20
Before Pandemic, around August 2019 (g 30%, ke 13%),
ROE 39% 16% 9% 15% 14%
Dividend Payout Ratio 10% 16% 22% 15% 20%
Ploughback Ratio 90% 84% 78% 85% 80%
… constant dividend growth model does not work when the growth rates are higher than Ke
… Phased Growth model can be used .. To capture the near term jump growth rates
… Two phases growth 30% for seven years
4% in the longrun … till perpetuity
D0 D1 D2 D3 D4 D5 D6 D7 D8
4.5 P7 = USING A CONSTANT GROWTH
P7 = D8/(Ke-LT Growth Rate)
$ 5.85 $ 7.61 $ 9.89 $ 12.85 $ 16.71 $ 21.72 $ 28.24 $ 29.37
$ 326.29
$196.07 $ 5.85 $ 7.61 $ 9.89 $ 12.85 $ 16.71 $ 21.72 $ 354.53
Deepak Nitrite
200-250 Before Pandemic, around August 2019 (g 30%, ke 13%),
250-350 More Professional Board Members around February 2020 (g 30%, ke 12%),
400-550 After Pandemic around April 2020 (g 40%, ke 12%),
550-700 After China’s Exit around July 2020 (g 50%, ke 12%)
700-850 After Credit Rerating Upward around September 2020 (g 50%, ke 11%)
D0 D1 D2 D3 D4 D5 D6 D7 D8
4.5 P7 = USING A CONSTANT GROWTH
P7 = D8/(Ke-LT Growth Rate)
$ 6.75 $ 10.13 $ 15.19 $ 22.78 $ 34.17 $ 51.26 $ 76.89 $ 79.96
$ 1,142.32
$675.33 $ 6.75 $ 10.13 $ 15.19 $ 22.78 $ 34.17 $ 51.26 $ 1,219.20
A CONSTANT GROWTH MODEL FROM YEAR 8 ONWARDS
-LT Growth Rate)
A CONSTANT GROWTH MODEL FROM YEAR 8 ONWARDS

-LT Growth Rate)
From PGP_415_Sarthak_Agrawal to Everyone: 12:50 PM
Perceived.
From PGP_409_Rajkumar to Everyone: 12:51 PM
perceived
From PGP_418_ Shefali_Das to Everyone: 12:51 PM
perceived
From PGP_375_Abhijith_ES to Everyone: 12:51 PM
perceived
From PGP_410_Rishi_Kashyap to Everyone: 12:51 PM
percieved
From PGP_374_Aakanksha_Chaudhari . to Everyone: 12:51 PM
perceived
From 431_Vaibhav Gosar to Everyone: 12:51 PM
Perceived
From PGP_420_Shivam_Singh to Everyone: 12:51 PM
perceived
From PGP_385_ CT_Kousiek to Everyone: 12:51 PM
Perceived
From PGP_382_Avi_Gupta to Everyone: 12:51 PM
perceived
From 411_RITHANYA_ S to Everyone: 12:51 PM
perceived
From PGP_401_Parthapratim_Saren to Everyone: 12:51 PM
Perceived risk
From PGP_388_Eashan_Dutt to Everyone: 12:51 PM
Perceived
From 422_Sneha Bhasin to Everyone: 12:51 PM
perceived
From PGP_24_387_Divesh . to Everyone: 12:51 PM
perceived
From PGP_405_ Priyanka_Bompada to Everyone: 12:51 PM
perceived
From PGP_393_Jorge_Boro to Everyone: 12:51 PM
perceived
From PGP_394_Khushi_Poddar to Everyone: 12:51 PM
perceived
From Nikunj Gupta to Everyone: 12:51 PM
perceived
From PGP_425_Sukriti_Das to Everyone: 12:51 PM

percieved
From PGP_380_Anurag_ Priyadarshi to Everyone: 12:51 PM
perceived
From PGP_417_Sheena_Singh to Everyone: 12:51 PM
PErceived risk
From PRIYANSHU DHAWAN to Everyone: 12:51 PM
perceived
From C R VINUTHNA to Everyone: 12:51 PM
perceived
From PGP_423_Sonali_ Kumari to Everyone: 12:51 PM
Perceived
From Abhishek Paul to Everyone: 12:51 PM
percieved
From PGP_400_PANKAJ . to Everyone: 12:52 PM
percceived
y=mx+c
From PGP_403_Pavithra _K to Everyone: 12:53 PM
y=mx+c
y = mx + C where M > 0
y = mx +c
From 424_SOUMYA_ PATHAK to Everyone: 12:53 PM
y = mx + c
Return = A + B(Risk)
From PGP_386_Debashish_Ghosh to Everyone: 12:54 PM
y = mx + c
From PGP_416_Shalini_ Agarwal to Everyone: 12:54 PM
y=mx+c
y = mx+c
y = mx+c
From UNNATI NA to Everyone: 12:54 PM
y = mx + c
From PGP_404_Pranav_Pattan to Everyone: 12:54 PM
y=mx+c
mx+c
y = mx +c
y=mx+c
y = mx + c
y = mx + C
y=mx+c
From PGP_406_Priyanka_Bhatia to Everyone: 12:54 PM
y=mx+c
y= mx +c
y=mx+c
y = mx + c
mx + c
From PGP_381_Arpit_Jain to Everyone: 12:54 PM
y= mx+c
y=mx+c
From SHREYA HANS to Everyone: 12:54 PM
y=mx+c
y=mx+c
y=mx+c *
y=mx+c
From PGP_396_Mukul_Vashishtha to Everyone: 12:54 PM

y=mx+c
From PGP_412_Rohan _Ramachandran to Everyone: 12:55 PM

Yes
yes sir
Yes
yes sir
From PGP_390_Fiza_Azmi to Me: (Privately) 12:59 PM
Sorry sir, had a power-cut, have joined 5 mins late.
yes sir
From PGP_408_Priyanshu_ Dhawan to Everyone: 01:06 PM
Constant
constant
Constant
constant
constant
constant
constant
constant
Constant
constant
Constant
constant
COnstant
constant
From PGP_378_Amit_Kumar to Everyone: 01:06 PM
0
g=0
constant
0
0
0
0
0
0
0
0
perpetual
yes
We are assuming constant growth
dividends grow
possibility of capital gains
Dividends can grow in future
perceived returns concept
We have Assumption of constant growt
we assumed constant dividend growth
Expectation of Capital Gains
perceived growth and returns
2.2/0.1?
2.2/0.1 = 22
2.2/0.1
2.2/.1 = 22
22
22
22
22
22
22
22
2.2/0.1
22
2
22
22
22
22
22
From PGP_392_Ipseeta_Sethy to Everyone: 01:10 PM
2.2/0.1 = 22
2.2/0.1
2.2/0.1 = 22
22
22
22
22
From PGP_426_Sumanth_ Sunkavalli to Everyone: 01:10 PM
2.2
2.2/0.1
2.2/0.1
2.2/0.1 = 22
22
2.2
22
22
3
0
0
22
22
22
From PGP_413_Sakshi_Maurya to Everyone: 01:11 PM
22
From PGP_379_Anjana_Baburaj to Everyone: 01:11 PM
22
22
Buy
sell
sell
buy
Buy
sell
buy
buy
buy
buy
buy
buy
buy
buy
buy
buy
buy
buy
buy
buy
buy
buy
Buy
buy
buy
buy
buy
buy
buy
buy
buy
buy
share is undervalued in the market
Underpriced
reinvest
Retained
retained
retained earnings
retained
retained earnings
reinvested in business
retained earnings
retained earnings
retained earning
Retained
retained earning
retained
retained earnings
retained earnings
retained
5.47
5.47
5.47
5.47
5.47
75%
75%
Audio issue sir. IT keeps connecting and disconnecting.
retention ratio
yes
yes sir
Sorry for the inconvinience
yes sir
4.50%
10.5
Depends upon Roe of company typically 15%
7.28/104.6
7%
7%
7.28/104.6
6.80%
EPS/ BV
7.28/104.6
7/104
6.90%
6.94%
7.28/104.6
6.90%
7%
EPS/ BV
7.28/104.6
7
7.28/104.6
7%
7.28/104.6
6.90%
7.28/104.6
7.28/104.6
7.28/104.6
7%
7%
7%
7.28/104.6
7%
7%
7%
7%
7%
7%
7%
7%
7%
7%
7%
7%
7%
yes sir
yes
From PGP_391_Garima_Juneja to Everyone: 01:18 PM
7%
Yes
yes
yes sir
yes
yes
yes sir
yes
yes
yes
yes
5.25%
ploughback ratio * ROE
5.25
5.25
5.25
5.25
5.25
5.25
5.25
5.25
5.25%
0.0525
5.25
5.25
5.25%
5.35%
5.25
5.25% dividend growth rate
5.25%*
0.095025
1.905
1.905
1.9
1.81*(1+5.25%)
1.9
1.9
1.905025

1.9
1.905
1.81 * 1.0525
1.905
1.9
1.905
1.905
1.9
1.9
1.81(1+ 5.25%)
1.9
1.90503
1.9
1.905
1.905
1.9
1.905
1.905
1.90503
1.905
1.90503
1,905
1.905
36.29
D1/r-g
1.9/10.5- 5.25 %
1.905 /(0.105 - 0.0525)
1.905 / (.105 -0.0525)
36.28619

36
36.28
36.28
36.28
36.2
36.28
36.28
36.286
36.28
36.28
36.28
36
36.28
36.28
sell
*0.0475
undervalued
36.29
buy
Buy
Can Buy
buy
undervalued
buy
buy more
Buy
Under valued
1undervalued
Underpriced
Under Valued
undervalued
underpriced
unddervalued
From PGP_390_Fiza_Azmi to Everyone: 01:21 PM
underpriced
0.141141

0.141
0.14
14.11%
4.23/29.97
14.11%
ROE = 4.23/29.97 = 0.141
EPS/BVPS
14.11
14.14%
14.11%
14%
14.11%
14%
14%
14%
14.11
14.11%
Ploughback ratio/
14
14.11
14%
14%
14.11%
14.11%
14%
14%
0.48
48%
48%
0.48
48
48
48
From 424_SOUMYA_ PATHAK to Everyone: 01:24 PM
48
6.79%
.48*.14
growth 6.7%
48
6.80%
Growth: 6.7748
6.70%
48% *14%
6.7728
6.72
6.70%
6.70%
48* 14 = 6.7%
6.77
6.70%
6.70%
6.77%
6.77
6.7
6.70%
6.7
2.2 * 1.067
2.3489
2,2(1.0677)
2.34
2.34
2.34
2.34
2.34
2.349
2.35
2.34
2.35
value 72.7
2.34/0.1-0.0677
72.8
72.83352

72.8
72.8
72.8
72.8
72.76
72
consumer goods
personal care
yes
yes
yes
Yes
yes
Yes
yes
yes
yes
Yes
yes
yes
yes
yes
yes
yes
very
yes
It is
yes
yes
yes
Yes mature
constant growth
Regular dividend payments
market leader in personal care segment
Leader in FMCG
leader
spectrum of products
Major market player
stable growth
HUL Approx zero debt
2bn users
market leader in fmcg
market share high
Poor in product innovation
in food space
ROE = 81.67%
81.7
market leader, has a range of product mix
81.67%
constant growth over the years
negative ploughback
FMCG was stable
HUL*
Yes
retained earnings used
retained earning
retained earnings were used
retained earnings used
3 years
0.0792
7.92
79.20%
6.16%*
36.67
36.66
36.66
36.667
36.67
36.67
36.66
36.6
36.67
36.67
8.5
36.66/(0.085-0.063)
1642.04
1642
1642.04
1642.04
1642.04
1642.04
1642.04
1642.04
1642
sell
sell
sell
sell
sell
Overpriced -Sell
sell
sell
sell
sell
sell
sell
sell
sell
sell
overvalued
overvalued in the market
sell
sell
overvalued
sell
sell
sell
Sell
overvalued
overvalued
sell
Book value?
change in book value?
Future growth prospects
expected
expectation of growth
expected rate of returns
future growth
expectations
expectation
future growth
Future growth
expectation
expectations
expected grwoth
expectation
expected growth
high
high
High
exp growth
high
High
high
high
high
high
high
High risk premium
High
high
high
high
high
Yes
80%
80%
80%
80%
80%
80%
80%
80%
From PGP_419_Shilpi_Sharma to Everyone: 01:47 PM
sir,unable to mute
aggressive growth
Dividend don't have a constant growth , It is uneven
yes sir
4
4%
4
4%
4%
4
4
4%
4
4
4%
NPV of 7 year dividends + Present value of (p7)
NPV
13%
0.13
13%
13%
0.13
13
0.04
13
0.13
13
13
13
13
13%
13
13
196.07
196
196
Sell
increase the CMP
positive impact
increased faith in the company
increase credibility
positive impact on market reputation
increase the value
positive effect
Positive impact
increase market price
increase
Increased confidence
Increase
increase market value
Cost of equity
Err:509
cost of equity will decrease
increase market price
From 399 Omsiri to Everyone: 01:59 PM
cost of eq
cost of equity
cost of equity
cost of equity
Ke will reduce
Cost of equity
Cost of Equity
cost of equity
Cost of Equity

chemical consumption increased
700- now
increased further
yes
yes sir
Increased further
reduced Ke?

Fmi S14

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Fmi S14

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Drivers of Shareholder Vlaue

~ Reputation in the Capital Markets

… assume that SBI will go at a pace which is equal to economy

Ploughed Back Ratio 48.0% 50%

Summer Co. expects to pay a dividend of $4.00 per

Ploughback Ratio using a five year data reflects on an average

assumptions about the future and the potential turnaround

EPS1 5.00 Ploughback Ratio 80%

BVPS (Rs) $ 115.20 $ 77.60 $ 69.20 $ 56.00 $ 40.90

DPS (Rs) $ 4.50 $ 2.00 $ 1.30 $ 1.20 $ 1.20

30% … for seven years and then a longterm constant growth of 4%

D0 D1 D2 D3 D4 D5 D7 D6 D8 = D7(1+4% LT Growth Rate)

From POOJA JAISWAL to Everyone: 11:08 AM

From PGP_465_Sunidhi_Raje to Everyone: 11:08 AM

From Shubham Agrawal to Everyone: 11:31 AM

From PGP_437_Nirmal_Gopi to Everyone: 11:31 AM

From PGP_482_T M Nived_ NA to Everyone: 11:32 AM

From Uttama Hande to Everyone: 11:39 AM

From PGP_465_Sunidhi_Raje to Everyone: 12:00 PM

Ploughed back 5.47 75%

SBI if it is a mirror image of the Economy

Government of India instruments at 6% rate of return

BVPS (Rs) $ 38.20 $ 36.50 $ 33.80 $ 31.30 $ 30.50

Ke 14% … Constant Dividend Growth Model

A CONSTANT GROWTH MODEL FROM YEAR 8 ONWARDS

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