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Metrics | Range | Conclusion |
---|---|---|
Adjusted Dividend | ₹2.61 - ₹3.02 | ₹2.86 |
Adjusted Dividend Yield | 6.2% - 7.2% | 6.8% |
Perpetuity Growth Rate | 5.3% - 5.8% | 5.5% |
Discount Rate | 10.1% - 8.1% | 9.1% |
Fair Value | ₹56.37 - ₹134.43 | ₹83.12 |
Upside | 34.7% - 221.2% | 98.6% |
Calculate Adjusted Dividend | ||||||||
(INR in millions) | Latest | Notes | ||||||
Net Income To Common | 40 | |||||||
(-) Cash Dividends Paid | (0) | |||||||
(=) Cash Retained | 40 | 99.1% | ||||||
Low | Mid | High | ||||||
Required Retention Ratio | 20.0% | 12.5% | 7.5% | % of net income needed for future growth | ||||
Adj Net Income | 40 | 40 | 40 | |||||
(=) Cash Required | 8 | 5 | 3 | |||||
Cash Retained | 40 | 40 | 40 | |||||
(-) Cash Required | (8) | (5) | (3) | |||||
(=) Excess Retained | 32 | 35 | 37 | |||||
(/) FX Rate Adjustment | 1.00 | 1.00 | 1.00 | |||||
(=) Excess Retained (INR) | 32 | 35 | 37 | |||||
(/) Shares Outstanding | 12.3 | 12.3 | 12.3 | |||||
(=) Excess Retained per Share | 2.58 | 2.83 | 2.99 | |||||
Low | Mid | High | ||||||
LTM Dividend per Share | 0.03 | 0.03 | 0.03 | |||||
(+) Excess Retained per Share | 2.58 | 2.83 | 2.99 | |||||
Adjusted Dividend | 2.61 | 2.86 | 3.02 |
Sensitivity Analysis | ||||||||
Adjusted Dividend | 2.86 | |||||||
Cost of Equity | ||||||||
Growth Rate | 8.1% | 8.6% | 9.1% | 9.6% | 10.1% | |||
3.5% | 63.91 | 57.67 | 52.55 | 48.26 | 44.62 | |||
4.5% | 82.33 | 72.35 | 64.53 | 58.23 | 53.06 | |||
5.5% | 114.78 | 96.41 | 83.12 | 73.04 | 65.15 | |||
6.5% | 187.17 | 143.13 | 115.87 | 97.33 | 83.90 | |||
7.5% | NM | NM | 188.93 | 144.47 | 116.96 |