Payout Policy

Section 2 – Group 5
DM242048 – Parva Patel
DM242058 – Rajan Mishra
DM242064 – Rohan c Bhowmick
DM242073 – Sehajdeep Singh
DM242093 – Vinay Anil Kurup
DM242083 – Sunidhi Jain
DM242069 – Samay Garg
 TCS
Buyback

• Company Recently Buyback shares in March ’22.

• Before that company also repurchased shares in November
’20.
• In march ’22 buyback offer is of 18000 Cr which is 1.08%
of shares

• Company is consistently paying dividend to shareholders

since last many years
• Dividend Yield is around 1-1.5%
• Whereas Payout ratio is around 35-40% and it is increasing
• There is less investment opportunity for Tech firm and it is
better to payout excess funds
TCS Price Tracking During
Buyback

• Price increased after announcement

• Almost kept constant between Record date and closing
• After Buyback generally prices falls but strong financials of TCS prevented that.
ANALYSIS
• Sales of the company is Increasing so is the
Profit.
• With profits, EPS of the increased in 2022
which is a reflection of share buyback.
• Company has huge Cashflow from operating
activity which is necessary for any company
• ROE is more than 40% in last 3 years which
shows great efficiency.
• Same ROA is also around 30% which means
company is showing good financial health
and Future Growth
 Quick Heal
Buyback

Company has repurchased shares in oct '22. total payout

was 150 cr at the buyback price of 300rs per share

Before this buyback company repurchased share a year

ago in month of may '21. At that time also payout was
155 Cr, at price of 245 per share

Company has paid dividend consistently over the last

many years.

Payout ratio is around 25% to 30%

Dividend yield is increased in last 4 year from around 1%

to 2.5%
Quick Heal Price Tracking During
Buyback

Price increased after announcement

Almost kept constant between Record date and closing

After Buyback prices falls mainly because of financials of this compnay is not so strong and traders just want to exit
from positions
ANALYSIS
compare to 2020 sales, operating profit, and net profit have
increased.

The EPS of the Company is increasing from 11.59 in 2020 to

14.34 in 2022.

Cashflow of the company is very poor and in some years it

Is negative against the profit of 80-100 cr. Which shows the
company's inability to convert profits into cash.

ROE is consistent and growing from 11.42% to 13.24%. The

same is the ROA, Consistent and growing from 10.62% to
11.61%.

Company is Debt free and it is good for company's financial.

Growth Opportunity of this business is very less and

company is not able to increase sales significantly thats why
to attract inevstors company is going for payouts at 30%
payout ratio.Compared
 GAIL
Buyback
Company has repurchased shares in May '22. total payout was
1083 cr at the buyback price of 190 rs per share

Before this buyback company repurchased share a year ago in

month of Feb '21. At that time also payout was 1047 Cr, at price
of 150 per share

Company has paid dividend consistently over the last many

years.

Payout ratio is around 25% to 35% and it is increasing year on

year

Dividend yield is fluctuating in last 4 year from around 2% to 8%

GAIL Price Tracking During
Buyback

Price increased after announcement

Almost kept constant between Opening date and closing date

Generally After Buyback prices falls, but here after record date it started to fall mainly because of financials of this
compnay is not so strong as debt is high and traders just want to exit from positions
ANALYSIS
In last 3 years Sales of the Company increased and so is the
NOPAT and PAT

EPS of the Company is increasing from 13.9 in 2020 to 18.4

in 2022. Because of Buyback

Operating cash flow is huge while the company is investing

huge amounts.

ROE is consistent at 19%. Same is the ROA, Consistent at

12%. Which is Good for Company from the Asset heavy
sector.

Growth Opportunity of this business is good and company is

investing in projects but at the same time company is
having high payout ratio of 30% due to their dividend policy.
Overall growth of the company is good and payout will help
to attract more investors
 IOC
Dividend

The company is paying Dividends regularly and in the last 2

year, only they have declared dividends 6 times.

Company has record of paying dividend and this company is

among highest dividend-paying company of Indian stock
exchange.

Payout ratio is high and it around 50%.

Dividend yield is increased in last 4 year from around 5% to

10%
IOC Price Tracking During Ex-
date

Price increased after athe nnouncement

As we learn in class the ex-date price of stock falls bydiv. amount per share paid but we are in dynamic market so fall
is not exactly to the dividend amount.

Here in every ex date price falls either opened low or falls during the day.
ANALYSIS
Compared to 2020 sales, operating profit and net profit has
increased over the last three years

EPS of the Company is increasing from negative in 2020 to

17.7 in 2022.

Operating CashFlow is huge but at the same time company

is investing huge amounts in projects

ROE is consistent at 19%. Same is the ROA, Consistent at

6%. Which is Good for the Company from the Asset heavy
sector.

Growth Opportunity of this business is good and company is

investing in projects but at the same time company is
having high payout ratio of 50% due to their dividend policy.

Overall growth of the company is good and payout will help

to attract more investors
 VEDANTA
Dividend

Company is paying Dividend regularly and in last 3 year only

they have declared dividends 8 times.

Historically Company is paying hefty dividend and for many

investor these stock dividends are source of income

Payout ratio is high and it around 50 - 60% and last year it

was more than 88%.

Dividend yield is fluctuating in last 4 year between 4-11 %

VEDANTA Price Tracking During Ex-
date

Price increased after the announcement

As we learn in class the ex-date price of stock falls bydiv. amount per share paid but we are in dynamic market so fall
is not exactly to the dividend amount.

Here in every ex date price falls either opened low or falls during the day.
ANALYSIS
• compare to 2020 sales, operating profit and net profit
has increased over the last three years and last year
there was significant growth which was main reason for
80% payout.

• EPS of the Company is increasing from negative in 2020

to 46.36 in 2022.

• Operating CashFlow is huge and also from investment

cash flow is high. Due to debts CFF is negative.

• ROE is growing from 13% to 22%. Same is the ROA,

Growing from 7% to 12%. Which is Good for the
Company from the Asset heavy sector.

• Investment Opportunity of this business is saturated

thats why company is having high payout ratio of 50%.
Remaining funds are used in debt service.

• Overall growth of the company is good and payout will

help to attract more investors
 HERO
Dividend

Company is paying Dividend regularly and in last 3 year only

they have declared dividends 7 times. because they paid
special dividend

Historically Company is paying good dividend along with

price gain to investors.

Payout ratio is high and it around 50 - 60% and last year it

was more than 80%.

Dividend yield is constant in last 4 year around 3-4 %

HERO Price Tracking During Ex-
date

Price increased after announcement

As we learn in class on the ex date price of stock falls bydiv. amount per share paid but we are in dynamic market so
fall is not exactly to the dividend amount.

Here in every ex date price falls either opened low or falls during the day.
ANALYSIS
compare to 2020 sales has increased over the last three years but
profits declined

EPS of the Company Decreased from 182 in 2020 to 115 in 2022.

because of decline in profits

Operating CashFlow is high. But due to investments and debts

CFF and CFI is negative.

Due to decline in profit ROE is decreasing from 25% to 15%. Same

is the ROA, decreasing from 18% to 10%. Which is Alarming for
the Company

Company is market leader in 2 wheeler segment but having

decline in profits in last 3 years. Company is having high payout
ratio of 50%. Remaining funds are used in debt service.

Overall growth opportunity of the company is good if company

increase profitability, along with that payout will help to attract
more investors
THANK
YOU