Date NIFTY 50 Adj CloNIFTY 50 Retu HCL Adj ClosHCL RETURN

4/1/2013 5930.200195 139.040833

5/1/2013 5985.950195 0.94% 143.951584 3.53% SUMMARY OUTPUT
6/1/2013 5842.200195 -2.40% 149.971664 4.18%
7/1/2013 5742 -1.72% 181.193253 20.82% Regression Statistics
8/1/2013 5471.799805 -4.71% 201.080002 10.98% Multiple R 0.373935
9/1/2013 5735.299805 4.82% 210.11499 4.49% R Square 0.139828
10/1/2013 6299.149902 9.83% 211.690094 0.75% Adjusted R 0.132538
11/1/2013 6176.100098 -1.95% 210.270935 -0.67% Standard E 0.07257
12/1/2013 6304 2.07% 244.454575 16.26% Observatio 120
1/1/2014 6089.5 -3.40% 284.569641 16.41%
2/1/2014 6276.950195 3.08% 307.483643 8.05% ANOVA
3/1/2014 6704.200195 6.81% 271.408356 -11.73% df
4/1/2014 6696.399902 -0.12% 273.789215 0.88% Regression 1
5/1/2014 7229.950195 7.97% 277.614807 1.40% Residual 118
6/1/2014 7611.350098 5.28% 293.584229 5.75% Total 119
7/1/2014 7721.299805 1.44% 304.338104 3.66%
8/1/2014 7954.350098 3.02% 319.143005 4.86% Coefficients
9/1/2014 7964.799805 0.13% 338.191986 5.97% Intercept 0.013213
10/1/2014 8322.200195 4.49% 317.217041 -6.20% NIFTY 50 0.609723
11/1/2014 8588.25 3.20% 329.177246 3.77%
12/1/2014 8282.700195 -3.56% 316.216919 -3.94%
1/1/2015 8808.900391 6.35% 354.800873 12.20%
2/1/2015 8844.599609 0.41% 400.394836 12.85% RESIDUAL OUTPUT
3/1/2015 8491 -4.00% 389.917664 -2.62%
4/1/2015 8181.5 -3.65% 350.205994 -10.18% ObservationPredicted Y
5/1/2015 8433.650391 3.08% 403.792877 15.30% 1 0.018944
6/1/2015 8368.5 -0.77% 367.438507 -9.00% 2 -0.001421
7/1/2015 8532.849609 1.96% 398.799103 8.53% 3 0.002726
8/1/2015 7971.299805 -6.58% 387.93277 -2.72% 4 -0.015505
9/1/2015 7948.899902 -0.28% 394.452057 1.68% 5 0.042601
10/1/2015 8065.799805 1.47% 350.093018 -11.25% 6 0.073149
11/1/2015 7935.25 -1.62% 351.830078 0.50% 7 0.001323
12/1/2015 7946.350098 0.14% 345.427368 -1.82% 8 0.025834
1/1/2016 7563.549805 -4.82% 349.729492 1.25% 9 -0.007518
2/1/2016 6987.049805 -7.62% 330.888672 -5.39% 10 0.031992
3/1/2016 7738.399902 10.75% 331.234497 0.10% 11 0.054735
4/1/2016 7849.799805 1.44% 305.276093 -7.84% 12 0.012481
5/1/2016 8160.100098 3.95% 301.003937 -1.40% 13 0.061808
6/1/2016 8287.75 1.56% 299.638794 -0.45% 14 0.045406
7/1/2016 8638.5 4.23% 308.86853 3.08% 15 0.021993
8/1/2016 8786.200195 1.71% 319.369904 3.40% 16 0.031626
9/1/2016 8611.150391 -1.99% 330.556 3.50% 17 0.014005
10/1/2016 8638 0.31% 315.369171 -4.59% 18 0.040589
11/1/2016 8224.5 -4.79% 334.707031 6.13% 19 0.032724
12/1/2016 8185.799805 -0.47% 344.763184 3.00% 20 -0.008493
1/1/2017 8561.299805 4.59% 337.767517 -2.03% 21 0.05193
 2/1/2017 8879.599609 3.72% 349.82251 3.57% 22 0.015713
3/1/2017 9173.75 3.31% 366.965363 4.90% 23 -0.011176
4/1/2017 9304.049805 1.42% 341.522095 -6.93% 24 -0.009042
5/1/2017 9621.25 3.41% 362.560516 6.16% 25 0.031992
6/1/2017 9520.900391 -1.04% 359.453705 -0.86% 26 0.008518
7/1/2017 10077.09961 5.84% 377.196136 4.94% 27 0.025163
8/1/2017 9917.900391 -1.58% 365.536804 -3.09% 28 -0.026907
9/1/2017 9788.599609 -1.30% 370.389801 1.33% 29 0.011506
10/1/2017 10335.29981 5.59% 362.345276 -2.17% 30 0.022176
11/1/2017 10226.54981 -1.05% 359.042786 -0.91% 31 0.003335
12/1/2017 10530.7002 2.97% 377.920471 5.26% 32 0.014066
1/1/2018 11027.7002 4.72% 418.683167 10.79% 33 -0.016176
2/1/2018 10492.84961 -4.85% 399.847198 -4.50% 34 -0.033248
3/1/2018 10113.7002 -3.61% 411.881317 3.01% 35 0.078758
4/1/2018 10739.34961 6.19% 447.664734 8.69% 36 0.021993
5/1/2018 10736.15039 -0.03% 387.11145 -13.53% 37 0.037297
6/1/2018 10714.29981 -0.20% 394.730652 1.97% 38 0.022724
7/1/2018 11356.5 5.99% 411.286987 4.19% 39 0.039004
8/1/2018 11680.5 2.85% 445.955048 8.43% 40 0.023639
9/1/2018 10930.4502 -6.42% 464.526215 4.16% 41 0.001079
10/1/2018 10386.59961 -4.98% 450.775757 -2.96% 42 0.015103
11/1/2018 10876.75 4.72% 434.319427 -3.65% 43 -0.015993
12/1/2018 10862.54981 -0.13% 412.64624 -4.99% 44 0.010347
1/1/2019 10830.9502 -0.29% 430.126038 4.24% 45 0.041199
2/1/2019 10792.5 -0.36% 450.964905 4.84% 46 0.035894
3/1/2019 11623.90039 7.70% 466.213287 3.38% 47 0.033395
4/1/2019 11748.15039 1.07% 507.327789 8.82% 48 0.021871
5/1/2019 11922.79981 1.49% 468.399811 -7.67% 49 0.034004
6/1/2019 11788.84961 -1.12% 457.295349 -2.37% 50 0.006872
7/1/2019 11118 -5.69% 444.366577 -2.83% 51 0.048821
8/1/2019 11023.25 -0.85% 472.629333 6.36% 52 0.003579
9/1/2019 11474.4502 4.09% 465.013336 -1.61% 53 0.005286
10/1/2019 11877.4502 3.51% 500.364929 7.60% 54 0.047296
11/1/2019 12056.04981 1.50% 486.108276 -2.85% 55 0.006811
12/1/2019 12168.4502 0.93% 489.793854 0.76% 56 0.031322
1/1/2020 11962.09961 -1.70% 509.882324 4.10% 57 0.041992
2/1/2020 11201.75 -6.36% 462.239471 -9.34% 58 -0.016359
3/1/2020 8597.75 -23.25% 377.507782 -18.33% 59 -0.008798
4/1/2020 9859.900391 14.68% 470.197845 24.55% 60 0.050955
5/1/2020 9580.299805 -2.84% 475.993805 1.23% 61 0.01303
6/1/2020 10302.09961 7.53% 481.703003 1.20% 62 0.011993
7/1/2020 11073.4502 7.49% 610.033264 26.64% 63 0.049735
8/1/2020 11387.5 2.84% 602.54425 -1.23% 64 0.03059
9/1/2020 11247.54981 -1.23% 704.240784 16.88% 65 -0.025931
10/1/2020 11642.40039 3.51% 732.606567 4.03% 66 -0.017151
11/1/2020 12968.9502 11.39% 718.634583 -1.91% 67 0.041992
12/1/2020 13981.75 7.81% 827.072266 15.09% 68 0.01242
1/1/2021 13634.59961 -2.48% 798.968567 -3.40% 69 0.011445
 2/1/2021 14529.15039 6.56% 798.186279 -0.10% 70 0.011018
3/1/2021 14690.7002 1.11% 862.430847 8.05% 71 0.060161
4/1/2021 14631.09961 -0.41% 788.970947 -8.52% 72 0.019737
5/1/2021 15582.79981 6.50% 838.640808 6.30% 73 0.022298
6/1/2021 15721.5 0.89% 872.622864 4.05% 74 0.006384
7/1/2021 15763.04981 0.26% 909.399902 4.21% 75 -0.02148
8/1/2021 17132.19922 8.69% 1055.340942 16.05% 76 0.00803
9/1/2021 17618.15039 2.84% 1142.147949 8.23% 77 0.03815
10/1/2021 17671.65039 0.30% 1020.930603 -10.61% 78 0.034614
11/1/2021 16983.19922 -3.90% 1024.689453 0.37% 79 0.022359
12/1/2021 17354.05078 2.18% 1187.079224 15.85% 80 0.018883
1/1/2022 17339.84961 -0.08% 989.367737 -16.66% 81 0.002847
2/1/2022 16793.90039 -3.15% 1022.688538 3.37% 82 -0.025566
3/1/2022 17464.75 3.99% 1056.08374 3.27% 83 -0.128548
4/1/2022 17102.55078 -2.07% 979.401367 -7.26% 84 0.10272
5/1/2022 16584.55078 -3.03% 960.239563 -1.96% 85 -0.004103
6/1/2022 15780.25 -4.85% 897.961182 -6.49% 86 0.059125
7/1/2022 17158.25 8.73% 875.033508 -2.55% 87 0.058881
8/1/2022 17759.30078 3.50% 876.045166 0.12% 88 0.030529
9/1/2022 17094.34961 -3.74% 869.887268 -0.70% 89 0.005713
10/1/2022 18012.19922 5.37% 971.398254 11.67% 90 0.034614
11/1/2022 18758.34961 4.14% 1056.177612 8.73% 91 0.08266
12/1/2022 18105.30078 -3.48% 979.37677 -7.27% 92 0.060832
1/1/2023 17662.15039 -2.45% 1057.496826 7.98% 93 -0.001908
2/1/2023 17303.94922 -2.03% 1024.656982 -3.11% 94 0.053211
3/1/2023 17359.75 0.32% 1031.931152 0.71% 95 0.019981
4/1/2023 18065 4.06% 1011.820007 -1.95% 96 0.010713
97 0.052845
98 0.018639
99 0.014798
100 0.066198
101 0.030529
102 0.015042
103 -0.010566
104 0.026505
105 0.012725
106 -0.005994
107 0.037541
108 0.000592
109 -0.005262
110 -0.016359
111 0.066442
112 0.034553
113 -0.009591
114 0.045955
115 0.038455
116 -0.008006
117 -0.001725
118 0.000835
119 0.015164
120 0.037968
RY OUTPUT

Security Characteristi
Y Predicted Y

SS MS F Significance F f(x) = 0.609723408410846

0.101018 0.101018 19.1818 2.59E-05
0.621429 0.005266

Y
0.722447 % % % % %
00 00 00 00 00 .0
3 0. 2 5. 2 0. 1 5. 1 0. -5
- - - - -
Standard Error t Stat P-value Lower 95%Upper 95%
Lower 95.0%
Upper 95.0%
0.006783 1.947818 0.053812 -0.00022 0.026646 -0.00022 0.026646
0.139216 4.379703 2.59E-05 0.334038 0.885408 0.334038 0.885408

AL OUTPUT X Varia

Residuals
0.016356 BETA 0.61
0.043221
0.205474
0.125305
0.002299
-0.065649
-0.008023
0.136766
0.171618
0.048508
-0.172035
-0.003681
-0.047808
0.012094
0.014607
0.016974
0.045695
-0.102589
0.004976
-0.030907
0.07007
 0.112787
-0.015024
-0.092758
0.121008
-0.098518
0.060137
-0.000293
0.005294
-0.134676
0.001665
-0.032266
0.028676
-0.020652
-0.077758
-0.100393
-0.051297
-0.027224
-0.008204
0.010361
0.033921
-0.061003
0.077293
0.019653
-0.061499
-0.000194
0.015605
-0.091171
0.027596
-0.015472
0.000579
-0.034479
0.008014
-0.068996
-0.015911
0.021278
0.065908
-0.028641
0.038898
0.035945
-0.14833
0.007707
-0.007835
0.05371
0.067531
-0.012449
-0.078492
-0.06232
0.030955
 0.037382
-0.026361
0.068463
-0.098998
-0.030084
-0.00682
0.05557
-0.05425
0.041386
-0.050859
-0.011283
0.038153
-0.067834
-0.054752
0.14278
0.016403
-0.047125
0.207519
-0.042829
0.163087
0.005686
-0.10176
0.090068
-0.032092
-0.054211
0.060519
-0.095913
0.010155
0.021861
0.027302
0.094302
0.051771
-0.121142
0.014266
0.131995
-0.179325
0.039694
-0.004841
-0.073192
-0.014338
-0.048541
-0.091942
-0.033353
0.002591
0.070745
0.048845
-0.064694
0.081525
-0.031935
-0.008064
-0.057468
Security Characteristics Line Fit Plot
Y Predicted Y Linear (Predicted Y)

30.00%

20.00%

10.00%
f(x) = 0.609723408410846 x + 0.0132127815522017

0.00%
% % % % % % % 0% 0% 0%
00 00 00 00 00 00 00 .0 .0 .0
5. 0. 5. 0. - 5. 0. 5. 10 15 20
-2 -2 -1 -1
-10.00%

-20.00%

-30.00%

X Variable 1
Date NIFTY 50 Adj CloNIFTY 50 Retu HCL Adj ClosHCL RETURN
4/1/2014 6696.399902 273.789215
5/1/2014 7229.950195 7.97% 277.614807 1.40%
6/1/2014 7611.350098 5.28% 293.584229 5.75%
7/1/2014 7721.299805 1.44% 304.338104 3.66%
8/1/2014 7954.350098 3.02% 319.143005 4.86%
9/1/2014 7964.799805 0.13% 338.191986 5.97%
10/1/2014 8322.200195 4.49% 317.217041 -6.20%
11/1/2014 8588.25 3.20% 329.177246 3.77%
12/1/2014 8282.700195 -3.56% 316.216919 -3.94%

1/1/2015 8808.900391 6.35% 354.800873 12.20%

2/1/2015 8844.599609 0.41% 400.394836 12.85%
3/1/2015 8491 -4.00% 389.917664 -2.62%
4/1/2015 8181.5 -3.65% 350.205994 -10.18%
5/1/2015 8433.650391 3.08% 403.792877 15.30%
6/1/2015 8368.5 -0.77% 367.438507 -9.00%
7/1/2015 8532.849609 1.96% 398.799103 8.53%
8/1/2015 7971.299805 -6.58% 387.93277 -2.72%
9/1/2015 7948.899902 -0.28% 394.452057 1.68%
10/1/2015 8065.799805 1.47% 350.093018 -11.25%
11/1/2015 7935.25 -1.62% 351.830078 0.50%
12/1/2015 7946.350098 0.14% 345.427368 -1.82%
1/1/2016 7563.549805 -4.82% 349.729492 1.25%
2/1/2016 6987.049805 -7.62% 330.888672 -5.39%
3/1/2016 7738.399902 10.75% 331.234497 0.10%
4/1/2016 7849.799805 1.44% 305.276093 -7.84%
5/1/2016 8160.100098 3.95% 301.003937 -1.40%
6/1/2016 8287.75 1.56% 299.638794 -0.45%
7/1/2016 8638.5 4.23% 308.86853 3.08%
8/1/2016 8786.200195 1.71% 319.369904 3.40%
9/1/2016 8611.150391 -1.99% 330.556 3.50%
10/1/2016 8638 0.31% 315.369171 -4.59%
11/1/2016 8224.5 -4.79% 334.707031 6.13%
12/1/2016 8185.799805 -0.47% 344.763184 3.00%
1/1/2017 8561.299805 4.59% 337.767517 -2.03%
2/1/2017 8879.599609 3.72% 349.82251 3.57%
3/1/2017 9173.75 3.31% 366.965363 4.90%
4/1/2017 9304.049805 1.42% 341.522095 -6.93%
5/1/2017 9621.25 3.41% 362.560516 6.16%
6/1/2017 9520.900391 -1.04% 359.453705 -0.86%
7/1/2017 10077.099609 5.84% 377.196136 4.94%
8/1/2017 9917.900391 -1.58% 365.536804 -3.09%
9/1/2017 9788.599609 -1.30% 370.389801 1.33%
10/1/2017 10335.299805 5.59% 362.345276 -2.17%
11/1/2017 10226.549805 -1.05% 359.042786 -0.91%
12/1/2017 10530.700195 2.97% 377.920471 5.26%
1/1/2018 11027.700195 4.72% 418.683167 10.79%
2/1/2018 10492.849609 -4.85% 399.847198 -4.50%
3/1/2018 10113.700195 -3.61% 411.881317 3.01%
4/1/2018 10739.349609 6.19% 447.664734 8.69%
5/1/2018 10736.150391 -0.03% 387.11145 -13.53%
6/1/2018 10714.299805 -0.20% 394.730652 1.97%
7/1/2018 11356.5 5.99% 411.286987 4.19%
8/1/2018 11680.5 2.85% 445.955048 8.43%
9/1/2018 10930.450195 -6.42% 464.526215 4.16%
10/1/2018 10386.599609 -4.98% 450.775757 -2.96%
11/1/2018 10876.75 4.72% 434.319427 -3.65%
12/1/2018 10862.549805 -0.13% 412.64624 -4.99%
1/1/2019 10830.950195 -0.29% 430.126038 4.24%
2/1/2019 10792.5 -0.36% 450.964905 4.84%
3/1/2019 11623.900391 7.70% 466.213287 3.38%
4/1/2019 11748.150391 1.07% 507.327789 8.82%
Rm Monthly 1.02%
Rm Annualized 12.91%

Ri Monthly 1.21%
Ri Annualized 15.53%

BETA 0.61
Rf Annualized Percentage 7.71%

COST OF EQUITY CAPM

Ke 10.88%

D/E 0.1
E/V 0.9
D/V 0.1

Tax Rate 34.94%

Kd(1-Tax Rate) 1.63%

WACC 10.04%
GORDON THEORY

Ri > Ke Don't Pay Dividend

Ri < Ke Pay Dividend

Analysis
Since the Annualized Return of the Company exceeds the Cost
of Equity, it is advisable for the Company not to distribute
dividends. This is because there are investment opportunities
within the Company that can be utilized instead.

Dividend is not Paid in accordance with Gordon Theory

Date NIFTY 50 Adj ClosNIFTY 50 ReturHCL Adj ClosHCL RETURN
4/1/2015 8181.5 350.205994
5/1/2015 8433.650391 3.08% 403.792877 15.30%
6/1/2015 8368.5 -0.77% 367.438507 -9.00%
7/1/2015 8532.849609 1.96% 398.799103 8.53%
8/1/2015 7971.299805 -6.58% 387.93277 -2.72%
9/1/2015 7948.899902 -0.28% 394.452057 1.68%
10/1/2015 8065.799805 1.47% 350.093018 -11.25%
11/1/2015 7935.25 -1.62% 351.830078 0.50%
12/1/2015 7946.350098 0.14% 345.427368 -1.82%
1/1/2016 7563.549805 -4.82% 349.729492 1.25%
2/1/2016 6987.049805 -7.62% 330.888672 -5.39%
3/1/2016 7738.399902 10.75% 331.234497 0.10%
4/1/2016 7849.799805 1.44% 305.276093 -7.84%
5/1/2016 8160.100098 3.95% 301.003937 -1.40%
6/1/2016 8287.75 1.56% 299.638794 -0.45%
7/1/2016 8638.5 4.23% 308.86853 3.08%
8/1/2016 8786.200195 1.71% 319.369904 3.40%
9/1/2016 8611.150391 -1.99% 330.556 3.50%
10/1/2016 8638 0.31% 315.369171 -4.59%
11/1/2016 8224.5 -4.79% 334.707031 6.13%
12/1/2016 8185.799805 -0.47% 344.763184 3.00%
1/1/2017 8561.299805 4.59% 337.767517 -2.03%

2/1/2017 8879.599609 3.72% 349.82251 3.57%

3/1/2017 9173.75 3.31% 366.965363 4.90%
4/1/2017 9304.049805 1.42% 341.522095 -6.93%
5/1/2017 9621.25 3.41% 362.560516 6.16%
6/1/2017 9520.900391 -1.04% 359.453705 -0.86%
7/1/2017 10077.099609 5.84% 377.196136 4.94%
8/1/2017 9917.900391 -1.58% 365.536804 -3.09%
9/1/2017 9788.599609 -1.30% 370.389801 1.33%
10/1/2017 10335.299805 5.59% 362.345276 -2.17%
11/1/2017 10226.549805 -1.05% 359.042786 -0.91%
12/1/2017 10530.700195 2.97% 377.920471 5.26%
1/1/2018 11027.700195 4.72% 418.683167 10.79%
2/1/2018 10492.849609 -4.85% 399.847198 -4.50%
3/1/2018 10113.700195 -3.61% 411.881317 3.01%
4/1/2018 10739.349609 6.19% 447.664734 8.69%
5/1/2018 10736.150391 -0.03% 387.11145 -13.53%
6/1/2018 10714.299805 -0.20% 394.730652 1.97%
7/1/2018 11356.5 5.99% 411.286987 4.19%
8/1/2018 11680.5 2.85% 445.955048 8.43%
9/1/2018 10930.450195 -6.42% 464.526215 4.16%
10/1/2018 10386.599609 -4.98% 450.775757 -2.96%
11/1/2018 10876.75 4.72% 434.319427 -3.65%
12/1/2018 10862.549805 -0.13% 412.64624 -4.99%
1/1/2019 10830.950195 -0.29% 430.126038 4.24%
2/1/2019 10792.5 -0.36% 450.964905 4.84%
3/1/2019 11623.900391 7.70% 466.213287 3.38%
4/1/2019 11748.150391 1.07% 507.327789 8.82%
5/1/2019 11922.799805 1.49% 468.399811 -7.67%
6/1/2019 11788.849609 -1.12% 457.295349 -2.37%
7/1/2019 11118 -5.69% 444.366577 -2.83%
8/1/2019 11023.25 -0.85% 472.629333 6.36%
9/1/2019 11474.450195 4.09% 465.013336 -1.61%
10/1/2019 11877.450195 3.51% 500.364929 7.60%
11/1/2019 12056.049805 1.50% 486.108276 -2.85%
12/1/2019 12168.450195 0.93% 489.793854 0.76%
1/1/2020 11962.099609 -1.70% 509.882324 4.10%
2/1/2020 11201.75 -6.36% 462.239471 -9.34%
3/1/2020 8597.75 -23.25% 377.507782 -18.33%
4/1/2020 9859.900391 14.68% 470.197845 24.55%
Rm Monthly 0.45%
Rm Annualized 5.57%

Ri Monthly 0.72%
Ri Annualized 9.04%

BETA 0.61
Rf Annualized Percentage 6.69%

COST OF EQUITY CAPM

Ke 6.01%

D/E 0.1 GORDON THEORY

E/V 0.9
D/V 0.1 Ri > Ke
Ri < Ke
Tax Rate 34.94%
Kd(1-Tax Rate) 6.80%
Analysis

Since the Annualized Return of the Company exceeds the

Cost of Equity, it is advisable for the Company not to
distribute dividends. This is because there are investment
opportunities within the Company that can be utilized
WACC 6.08% instead.

Dividend is not Paid in accordance with Gordon Theory

 Don't Pay Dividend
Pay Dividend

with Gordon Theory

Date NIFTY 50 Adj ClosNIFTY 50 ReturHCL Adj ClosHCL RETURN
4/1/2016 7849.799805 305.276093
5/1/2016 8160.100098 3.95% 301.003937 -1.40%
6/1/2016 8287.75 1.56% 299.638794 -0.45%
7/1/2016 8638.5 4.23% 308.86853 3.08%
8/1/2016 8786.200195 1.71% 319.369904 3.40%
9/1/2016 8611.150391 -1.99% 330.556 3.50%
10/1/2016 8638 0.31% 315.369171 -4.59%
11/1/2016 8224.5 -4.79% 334.707031 6.13%
12/1/2016 8185.799805 -0.47% 344.763184 3.00%
1/1/2017 8561.299805 4.59% 337.767517 -2.03%
2/1/2017 8879.599609 3.72% 349.82251 3.57%
3/1/2017 9173.75 3.31% 366.965363 4.90%
4/1/2017 9304.049805 1.42% 341.522095 -6.93%

5/1/2017 9621.25 3.41% 362.560516 6.16%

6/1/2017 9520.900391 -1.04% 359.453705 -0.86%
7/1/2017 10077.099609 5.84% 377.196136 4.94%
8/1/2017 9917.900391 -1.58% 365.536804 -3.09%
9/1/2017 9788.599609 -1.30% 370.389801 1.33%
10/1/2017 10335.299805 5.59% 362.345276 -2.17%
11/1/2017 10226.549805 -1.05% 359.042786 -0.91%
12/1/2017 10530.700195 2.97% 377.920471 5.26%
1/1/2018 11027.700195 4.72% 418.683167 10.79%
2/1/2018 10492.849609 -4.85% 399.847198 -4.50%
3/1/2018 10113.700195 -3.61% 411.881317 3.01%
4/1/2018 10739.349609 6.19% 447.664734 8.69%
5/1/2018 10736.150391 -0.03% 387.11145 -13.53%
6/1/2018 10714.299805 -0.20% 394.730652 1.97%
7/1/2018 11356.5 5.99% 411.286987 4.19%
8/1/2018 11680.5 2.85% 445.955048 8.43%
9/1/2018 10930.450195 -6.42% 464.526215 4.16%
10/1/2018 10386.599609 -4.98% 450.775757 -2.96%
11/1/2018 10876.75 4.72% 434.319427 -3.65%
12/1/2018 10862.549805 -0.13% 412.64624 -4.99%
1/1/2019 10830.950195 -0.29% 430.126038 4.24%
2/1/2019 10792.5 -0.36% 450.964905 4.84%
3/1/2019 11623.900391 7.70% 466.213287 3.38%
4/1/2019 11748.150391 1.07% 507.327789 8.82%
5/1/2019 11922.799805 1.49% 468.399811 -7.67%
6/1/2019 11788.849609 -1.12% 457.295349 -2.37%
7/1/2019 11118 -5.69% 444.366577 -2.83%
8/1/2019 11023.25 -0.85% 472.629333 6.36%
9/1/2019 11474.450195 4.09% 465.013336 -1.61%
10/1/2019 11877.450195 3.51% 500.364929 7.60%
11/1/2019 12056.049805 1.50% 486.108276 -2.85%
12/1/2019 12168.450195 0.93% 489.793854 0.76%
1/1/2020 11962.099609 -1.70% 509.882324 4.10%
2/1/2020 11201.75 -6.36% 462.239471 -9.34%
3/1/2020 8597.75 -23.25% 377.507782 -18.33%
4/1/2020 9859.900391 14.68% 470.197845 24.55%
5/1/2020 9580.299805 -2.84% 475.993805 1.23%
6/1/2020 10302.099609 7.53% 481.703003 1.20%
7/1/2020 11073.450195 7.49% 610.033264 26.64%
8/1/2020 11387.5 2.84% 602.54425 -1.23%
9/1/2020 11247.549805 -1.23% 704.240784 16.88%
10/1/2020 11642.400391 3.51% 732.606567 4.03%
11/1/2020 12968.950195 11.39% 718.634583 -1.91%
12/1/2020 13981.75 7.81% 827.072266 15.09%
1/1/2021 13634.599609 -2.48% 798.968567 -3.40%
2/1/2021 14529.150391 6.56% 798.186279 -0.10%
3/1/2021 14690.700195 1.11% 862.430847 8.05%
4/1/2021 14631.099609 -0.41% 788.970947 -8.52%
Rm Monthly 1.19%
Rm Annualized 15.23%

Ri Monthly 1.87%
Ri Annualized 24.86% GORDON THEORY

BETA 0.61 Ri > Ke Don't Pay Dividend

Rf Annualized Percentage 5.99% Ri < Ke Pay Dividend

COST OF EQUITY CAPM

Analysis

Since the Annualized Return of the Company

exceeds the Cost of Equity, it is advisable for the
Company not to distribute dividends. This is
because there are investment opportunities within
Ke 11.63% the Company that can be utilized instead.

D/E 0.1 Dividend is not Paid in accordance with Gordon Theory

E/V 0.9
D/V 0.1

Tax Rate 34.94%

Kd(1-Tax Rate) 6.44%

WACC 11.15%
Don't Pay Dividend
Pay Dividend

h Gordon Theory
Date NIFTY 50 Adj ClosNIFTY 50 ReturHCL Adj ClosHCL RETURN
4/1/2017 9304.049805 341.522095
5/1/2017 9621.25 3.41% 362.560516 6.16%
6/1/2017 9520.900391 -1.04% 359.453705 -0.86%
7/1/2017 10077.099609 5.84% 377.196136 4.94%
8/1/2017 9917.900391 -1.58% 365.536804 -3.09%
9/1/2017 9788.599609 -1.30% 370.389801 1.33%
10/1/2017 10335.299805 5.59% 362.345276 -2.17%
11/1/2017 10226.549805 -1.05% 359.042786 -0.91%
12/1/2017 10530.700195 2.97% 377.920471 5.26%
1/1/2018 11027.700195 4.72% 418.683167 10.79%
2/1/2018 10492.849609 -4.85% 399.847198 -4.50%
3/1/2018 10113.700195 -3.61% 411.881317 3.01%
4/1/2018 10739.349609 6.19% 447.664734 8.69%
5/1/2018 10736.150391 -0.03% 387.11145 -13.53%
6/1/2018 10714.299805 -0.20% 394.730652 1.97%
7/1/2018 11356.5 5.99% 411.286987 4.19%
8/1/2018 11680.5 2.85% 445.955048 8.43%
9/1/2018 10930.450195 -6.42% 464.526215 4.16%
10/1/2018 10386.599609 -4.98% 450.775757 -2.96%
11/1/2018 10876.75 4.72% 434.319427 -3.65%
12/1/2018 10862.549805 -0.13% 412.64624 -4.99%
1/1/2019 10830.950195 -0.29% 430.126038 4.24%

2/1/2019 10792.5 -0.36% 450.964905 4.84%

3/1/2019 11623.900391 7.70% 466.213287 3.38%
4/1/2019 11748.150391 1.07% 507.327789 8.82%
5/1/2019 11922.799805 1.49% 468.399811 -7.67%
6/1/2019 11788.849609 -1.12% 457.295349 -2.37%
7/1/2019 11118 -5.69% 444.366577 -2.83%
8/1/2019 11023.25 -0.85% 472.629333 6.36%
9/1/2019 11474.450195 4.09% 465.013336 -1.61%
10/1/2019 11877.450195 3.51% 500.364929 7.60%
11/1/2019 12056.049805 1.50% 486.108276 -2.85%
12/1/2019 12168.450195 0.93% 489.793854 0.76%
1/1/2020 11962.099609 -1.70% 509.882324 4.10%
2/1/2020 11201.75 -6.36% 462.239471 -9.34%
3/1/2020 8597.75 -23.25% 377.507782 -18.33%
4/1/2020 9859.900391 14.68% 470.197845 24.55%
5/1/2020 9580.299805 -2.84% 475.993805 1.23%
6/1/2020 10302.099609 7.53% 481.703003 1.20%
7/1/2020 11073.450195 7.49% 610.033264 26.64%
8/1/2020 11387.5 2.84% 602.54425 -1.23%
9/1/2020 11247.549805 -1.23% 704.240784 16.88%
10/1/2020 11642.400391 3.51% 732.606567 4.03%
11/1/2020 12968.950195 11.39% 718.634583 -1.91%
12/1/2020 13981.75 7.81% 827.072266 15.09%
1/1/2021 13634.599609 -2.48% 798.968567 -3.40%
2/1/2021 14529.150391 6.56% 798.186279 -0.10%
3/1/2021 14690.700195 1.11% 862.430847 8.05%
4/1/2021 14631.099609 -0.41% 788.970947 -8.52%
5/1/2021 15582.799805 6.50% 838.640808 6.30%
6/1/2021 15721.5 0.89% 872.622864 4.05%
7/1/2021 15763.049805 0.26% 909.399902 4.21%
8/1/2021 17132.199219 8.69% 1055.340942 16.05%
9/1/2021 17618.150391 2.84% 1142.147949 8.23%
10/1/2021 17671.650391 0.30% 1020.930603 -10.61%
11/1/2021 16983.199219 -3.90% 1024.689453 0.37%
12/1/2021 17354.050781 2.18% 1187.079224 15.85%
1/1/2022 17339.849609 -0.08% 989.367737 -16.66%
2/1/2022 16793.900391 -3.15% 1022.688538 3.37%
3/1/2022 17464.75 3.99% 1056.08374 3.27%
4/1/2022 17102.550781 -2.07% 979.401367 -7.26%
Rm Monthly 1.17%
Rm Annualized 14.98%

Ri Monthly 2.12%
Ri Annualized 28.59%

BETA 0.61
Rf Annualized Percentage 6.33%

COST OF EQUITY CAPM

Ke 11.61%
GORDON THEORY
D/E 0.1
E/V 0.9 Ri > Ke
D/V 0.1 Ri < Ke

Tax Rate 34.94%

Kd(1-Tax Rate) 3.96% Analysis

Since the Annualized Return of the Company exceeds

the Cost of Equity, it is advisable for the Company not to
distribute dividends. This is because there are
investment opportunities within the Company that can
be utilized instead.
WACC 10.91%
Dividend is not Paid in accordance with Gordon Theory
 Don't Pay Dividend
Pay Dividend

with Gordon Theory

Date NIFTY 50 Adj ClosNIFTY 50 ReturHCL Adj ClosHCL RETURN
4/1/2018 10739.349609 447.664734
5/1/2018 10736.150391 -0.03% 387.11145 -13.53%
6/1/2018 10714.299805 -0.20% 394.730652 1.97%
7/1/2018 11356.5 5.99% 411.286987 4.19%
8/1/2018 11680.5 2.85% 445.955048 8.43%
9/1/2018 10930.450195 -6.42% 464.526215 4.16%
10/1/2018 10386.599609 -4.98% 450.775757 -2.96%
11/1/2018 10876.75 4.72% 434.319427 -3.65%
12/1/2018 10862.549805 -0.13% 412.64624 -4.99%
1/1/2019 10830.950195 -0.29% 430.126038 4.24%
2/1/2019 10792.5 -0.36% 450.964905 4.84%
3/1/2019 11623.900391 7.70% 466.213287 3.38%
4/1/2019 11748.150391 1.07% 507.327789 8.82%
5/1/2019 11922.799805 1.49% 468.399811 -7.67%
6/1/2019 11788.849609 -1.12% 457.295349 -2.37%
7/1/2019 11118 -5.69% 444.366577 -2.83%
8/1/2019 11023.25 -0.85% 472.629333 6.36%
9/1/2019 11474.450195 4.09% 465.013336 -1.61%
10/1/2019 11877.450195 3.51% 500.364929 7.60%
11/1/2019 12056.049805 1.50% 486.108276 -2.85%

12/1/2019 12168.450195 0.93% 489.793854 0.76%

1/1/2020 11962.099609 -1.70% 509.882324 4.10%
2/1/2020 11201.75 -6.36% 462.239471 -9.34%
3/1/2020 8597.75 -23.25% 377.507782 -18.33%
4/1/2020 9859.900391 14.68% 470.197845 24.55%
5/1/2020 9580.299805 -2.84% 475.993805 1.23%
6/1/2020 10302.099609 7.53% 481.703003 1.20%
7/1/2020 11073.450195 7.49% 610.033264 26.64%
8/1/2020 11387.5 2.84% 602.54425 -1.23%
9/1/2020 11247.549805 -1.23% 704.240784 16.88%
10/1/2020 11642.400391 3.51% 732.606567 4.03%
11/1/2020 12968.950195 11.39% 718.634583 -1.91%
12/1/2020 13981.75 7.81% 827.072266 15.09%
1/1/2021 13634.599609 -2.48% 798.968567 -3.40%
2/1/2021 14529.150391 6.56% 798.186279 -0.10%
3/1/2021 14690.700195 1.11% 862.430847 8.05%
4/1/2021 14631.099609 -0.41% 788.970947 -8.52%
5/1/2021 15582.799805 6.50% 838.640808 6.30%
6/1/2021 15721.5 0.89% 872.622864 4.05%
7/1/2021 15763.049805 0.26% 909.399902 4.21%
8/1/2021 17132.199219 8.69% 1055.340942 16.05%
9/1/2021 17618.150391 2.84% 1142.147949 8.23%
10/1/2021 17671.650391 0.30% 1020.930603 -10.61%
11/1/2021 16983.199219 -3.90% 1024.689453 0.37%
12/1/2021 17354.050781 2.18% 1187.079224 15.85%
1/1/2022 17339.849609 -0.08% 989.367737 -16.66%
2/1/2022 16793.900391 -3.15% 1022.688538 3.37%
3/1/2022 17464.75 3.99% 1056.08374 3.27%
4/1/2022 17102.550781 -2.07% 979.401367 -7.26%
5/1/2022 16584.550781 -3.03% 960.239563 -1.96%
6/1/2022 15780.25 -4.85% 897.961182 -6.49%
7/1/2022 17158.25 8.73% 875.033508 -2.55%
8/1/2022 17759.300781 3.50% 876.045166 0.12%
9/1/2022 17094.349609 -3.74% 869.887268 -0.70%
10/1/2022 18012.199219 5.37% 971.398254 11.67%
11/1/2022 18758.349609 4.14% 1056.177612 8.73%
12/1/2022 18105.300781 -3.48% 979.37677 -7.27%
1/1/2023 17662.150391 -2.45% 1057.496826 7.98%
2/1/2023 17303.949219 -2.03% 1024.656982 -3.11%
3/1/2023 17359.75 0.32% 1031.931152 0.71%
4/1/2023 18065 4.06% 1011.820007 -1.95%
Rm Monthly 1.02%
Rm Annualized 13.01%

Ri Monthly 1.73%
Ri Annualized 22.80%

BETA 0.61
Rf Annualized Percentage 7.33%

COST OF EQUITY CAPM

Ke 10.80% GORDON THEORY

D/E 0.1 Ri > Ke

E/V 0.9 Ri < Ke
D/V 0.1

Tax Rate 34.94% Analysis

Since the Annualized Return of the Company exceeds

the Cost of Equity, it is advisable for the Company not
to distribute dividends. This is because there are
investment opportunities within the Company that can
Kd(1-Tax Rate) 5.20% be utilized instead.

WACC 10.29% Dividend is not Paid in accordance with Gordon Theory

 Don't Pay Dividend
Pay Dividend

Gordon Theory