SUMMARY OUTPUT

Regression Statistics
Multiple R 0.3597371833
R Square 0.1294108411
Adjusted R Square 0.1144006832
Standard Error 0.0928501746
Observations 60

ANOVA
df SS MS F Significance F
Regression 1 0.0743277263 0.074328 8.621551 0.0047565652
Residual 58 0.50002698527 0.008621
Total 59 0.57435471157

Coefficients Standard Error t Stat P-value Lower 95% Upper 95%

Intercept -0.0002453514 0.01243970566 -0.019723 0.984332 -0.0251461278 0.0246554249
X Variable 1 0.6640536542 0.22615722759 2.936248 0.004757 0.2113507776 1.1167565308
 R hitachi= a+b R nifty

a -0.000245
b 0.664054 MARKET RISK

11% change in stocks of Hitachi is due to change in Nifty.

Lower 95.0% Upper 95.0%

-0.0251461278 0.0246554249
0.2113507776 1.1167565308
 DATE NIFTY SECTOR INDEX M&M Nifty ret Sector index ret M&M ret
1-Nov-16 8,224.50 9,113.80 592.55
1-Dec-16 8,185.80 9,141.75 592.35 -0.47% 0.31% -0.03%
1-Jan-17 8,561.30 9,837.75 620.05 4.59% 7.61% 4.68%
1-Feb-17 8,879.60 9,654.65 656.08 3.72% -1.86% 5.81%
1-Mar-17 9,173.75 9,880.20 643.45 3.31% 2.34% -1.93%
1-Apr-17 9,304.05 10,255.15 667.78 1.42% 3.79% 3.78%
1-May-17 9,621.25 10,870.80 708.47 3.41% 6.00% 6.09%
1-Jun-17 9,520.90 10,540.25 674.3 -1.04% -3.04% -4.82%
1-Jul-17 10,077.10 11,002.65 701.65 5.84% 4.39% 4.06%
1-Aug-17 9,917.90 10,612.55 672.4 -1.58% -3.55% -4.17%
1-Sep-17 9,788.60 10,811.25 627.13 -1.30% 1.87% -6.73%
1-Oct-17 10,335.30 11,370.00 672.4 5.59% 5.17% 7.22%
1-Nov-17 10,226.55 11,292.90 703.28 -1.05% -0.68% 4.59%
1-Dec-17 10,530.70 12,009.70 751.1 2.97% 6.35% 6.80%
1-Jan-18 11,027.70 11,611.90 763.05 4.72% -3.31% 1.59%
1-Feb-18 10,492.85 11,157.20 728.35 -4.85% -3.92% -4.55%
1-Mar-18 10,113.70 10,821.35 738.9 -3.61% -3.01% 1.45%
1-Apr-18 10,739.35 11,625.75 873.3 6.19% 7.43% 18.19%
1-May-18 10,736.15 10,994.45 922.95 -0.03% -5.43% 5.69%
1-Jun-18 10,714.30 10,709.05 897.7 -0.20% -2.60% -2.74%
1-Jul-18 11,356.50 10,973.75 935.95 5.99% 2.47% 4.26%
1-Aug-18 11,680.50 11,009.25 965.3 2.85% 0.32% 3.14%
1-Sep-18 10,930.45 9,590.25 860.95 -6.42% -12.89% -10.81%
1-Oct-18 10,386.60 8,820.55 765.95 -4.98% -8.03% -11.03%
1-Nov-18 10,876.75 9,270.20 790.9 4.72% 5.10% 3.26%
1-Dec-18 10,862.55 9,235.55 803.85 -0.13% -0.37% 1.64%
1-Jan-19 10,830.95 8,218.40 680.05 -0.29% -11.01% -15.40%
1-Feb-19 10,792.50 8,355.15 645.9 -0.36% 1.66% -5.02%
1-Mar-19 11,623.90 8,335.35 673.9 7.70% -0.24% 4.34%
1-Apr-19 11,748.15 8,350.60 645.3 1.07% 0.18% -4.24%
1-May-19 11,922.80 8,175.50 647.05 1.49% -2.10% 0.27%
1-Jun-19 11,788.85 7,928.05 655.35 -1.12% -3.03% 1.28%
1-Jul-19 11,118.00 6,851.65 550 -5.69% -13.58% -16.08%
1-Aug-19 11,023.25 7,009.30 528.8 -0.85% 2.30% -3.85%
1-Sep-19 11,474.45 7,493.15 547.15 4.09% 6.90% 3.47%
1-Oct-19 11,877.45 8,449.50 606.45 3.51% 12.76% 10.84%
1-Nov-19 12,056.05 8,086.00 530.55 1.50% -4.30% -12.52%
1-Dec-19 12,168.45 8,248.30 531.55 0.93% 2.01% 0.19%
1-Jan-20 11,962.10 8,086.55 567.15 -1.70% -1.96% 6.70%
1-Feb-20 11,201.75 6,903.95 457.05 -6.36% -14.62% -19.41%
1-Mar-20 8,597.75 4,731.30 284.95 -23.25% -31.47% -37.65%
1-Apr-20 9,859.90 5,901.40 366.65 14.68% 24.73% 28.67%
1-May-20 9,580.30 6,218.80 436.35 -2.84% 5.38% 19.01%
1-Jun-20 10,302.10 6,719.15 510.7 7.53% 8.05% 17.04%
1-Jul-20 11,073.45 7,279.75 606.45 7.49% 8.34% 18.75%
1-Aug-20 11,387.50 7,840.35 606.9 2.84% 7.70% 0.07%
1-Sep-20 11,247.55 7,908.10 607.9 -1.23% 0.86% 0.16%
1-Oct-20 11,642.40 7,758.40 594 3.51% -1.89% -2.29%
1-Nov-20 12,968.95 8,891.60 722 11.39% 14.61% 21.55%
1-Dec-20 13,981.75 9,193.50 720.6 7.81% 3.40% -0.19%
1-Jan-21 13,634.60 9,813.15 749.6 -2.48% 6.74% 4.02%
1-Feb-21 14,529.15 10,169.90 806.4 6.56% 3.64% 7.58%
1-Mar-21 14,690.70 9,862.45 795.25 1.11% -3.02% -1.38%
1-Apr-21 14,631.10 9,640.85 752.55 -0.41% -2.25% -5.37%
1-May-21 15,582.80 10,491.85 807.95 6.50% 8.83% 7.36%
1-Jun-21 15,721.50 10,600.35 777.7 0.89% 1.03% -3.74%
1-Jul-21 15,763.05 10,048.50 743.1 0.26% -5.21% -4.45%
1-Aug-21 17,132.20 10,034.45 793.3 8.69% -0.14% 6.76%
1-Sep-21 17,618.15 10,598.45 803.05 2.84% 5.62% 1.23%
1-Oct-21 17,671.65 11,297.45 884.25 0.30% 6.60% 10.11%
1-Nov-21 18,102.75 10,603.55 835.5 2.44% -6.14% -5.51%

Average 1.47% 0.58% 1.13%

Absolute 5 yr 120.11% 16.35% 41.00%
Annual SI 24.02 3.27 8.20
CAGR 17% 3% 7%
SD 5.34% 7.94% 10.33%
Prob(Ret<0) 39.16% 47.08% 45.65%
Prob(Ret<-5) 11.30% 24.12% 27.66%
COMPANY Beta 1.5018024
SECTOR Beta 1.20333296
LEVERED BETA AND UNLEVERED BETA

βL=βU{1+Debt/Equity(1-Tax)}

Year Debt
2017 680.29
2018 720.9
2019 954.78
2020 895.55
2021 920.77
Average Debt/Equity Ratio 1.40522310678605

CAPM MODEL
Rf+(Rm-Rf)*βL

Risk free return(Rf)

Company stock return(Rm)
Market Premium(Rm-Rf)

ke(Cost of equity) 5.68%

YEAR TOTAL DEBT(d)

2017 680.29
2018 720.9
2019 954.78
2020 895.55
2021 920.77
Equity D/E
440.23 1.545306
535.2 1.346973
612.99 1.557578
688.52 1.300688
721.85 1.27557

βL 1.317254
βU 0.664054

7%
6%
-1%

TOTAL EQUITY(e) We Wd Interest Cost kd βU βL ke

440.23 39% 61% 43.9 0.045 0.66 1.38 0.0562
535.2 43% 57% 19.8 0.019 0.66 1.29 0.0571
612.99 39% 61% 26.9 0.020 0.66 1.39 0.0561
688.52 43% 57% 50.2 0.039 0.66 1.27 0.0573
721.85 44% 56% 135.6 0.103 0.66 1.26 0.0574
WACC
4.95%
3.54%
3.40% MAXIMUM VALUE CREATION
4.71%
8.30%