Sun Pharmaceuticals Industries

Date
sensex x
stock y
xy
4/1/2013
18864.75
812.65
3/25/2013
18835.77
818.95
3/18/2013
18735.6
820.5
3/11/2013
19427.56
833.6
3/4/2013
19683.23
817.95
2/25/2013
18918.52
799.35
2/18/2013
19317.01
811.55
2/11/2013
19468.15
786.2
2/4/2013
19484.77
746.1
1/28/2013
19781.19
719.9
1/21/2013
20103.53
728.7
1/14/2013
20039.04
712.05
1/7/2013
19663.64
739.25
12/31/2012
19784.08
735.15
12/24/2012
19444.84
739.5
12/17/2012
19242
729.45
12/10/2012
19317.25
718.95
12/3/2012
19424.1
699.9
11/26/2012
19339.9
709.85
11/19/2012
18506.57
705.3
11/12/2012
18309.37
679
11/5/2012
18683.68
694.2
10/29/2012
18755.45
696.95
10/22/2012
18625.34
694.9
10/15/2012
18682.31
694.8
10/8/2012
18675.18
713.25
10/1/2012
18938.46
682.55
9/24/2012
18762.74
695.55
9/17/2012
18752.83
669.5
9/10/2012
18464.27
678.15
9/3/2012
17683.73
664.6
8/27/2012
17380.75
668.4

15330439.09
15425553.84
15372559.8
16194814.02
16099897.98
15122518.96
15676719.47
15305859.53
14537586.9
14240478.68
14649442.31
14268798.43
14536345.87
14544266.41
14379459.18
14036076.9
13888136.89
13594927.59
13728428.02
13052683.82
12432062.23
12970210.66
13071610.88
12942748.77
12980468.99
13320072.14
12926445.87
13050423.81
12555019.69
12521544.7
11752606.96
11617293.3

X^2
355878792.6
354786231.5
351022707.4
377430087.6
387429543.2
357910399
373146875.3
379008864.4
379656262
391295477.8
404151918.5
401563124.1
386658738
391409821.4
378101802.6
370254564
373156147.6
377295660.8
374031732
342493133.2
335233029.8
349079898.3
351766904.7
346903290.1
349028706.9
348762348
358665267.2
352040412.3
351668633
340929266.6
312714306.7
302090470.6

8/20/2012
8/13/2012
8/6/2012
7/30/2012
7/23/2012
7/16/2012
7/9/2012
7/2/2012
6/25/2012
6/18/2012
6/11/2012
6/4/2012
5/28/2012
5/21/2012
5/14/2012
5/7/2012
4/30/2012
4/23/2012
4/16/2012
4/9/2012
4/2/2012

17783.21
665.6
17691.08
661.05
17557.74
675.45
17197.93
659.95
16839.19
632.45
17158.44
624.95
17213.7
616.35
17521.12
633.9
17429.98
635.8
16972.51
608.5
16949.83
594.2
16718.87
583.65
15965.16
569.05
16217.82
569.55
16152.75
581.75
16292.98
571.1
16831.08
601.3
17134.25
598.75
17373.84
588.8
17094.51
585.4
17486.02
564.1
966677.62 36238.35

EX^2

93456091609
Rm=7

B
ke=rf+B(rm-rf)
7+0.23(7-7)

Rf-7
0.23
Kd=0

11836504.58 316242557.9
11694688.43 312974311.6
11859375.48 308274233.9
11349773.9 295768796.3
10649945.72 283558319.9
10723167.08 294412063.2
10609664 296311467.7
11106637.97 306989646.1
11081981.28 303804202.8
10327772.34 288066095.7
10071588.99
287296737
9757968.476 279520614.1
9084974.298 254886333.8
9236859.381 263017685.6
9396862.313 260911332.6
9304920.878 265461197.3
10120528.4
283285254
10259132.19 293582523.1
10229716.99 301850316.3
10007126.15 292222272.1
9863863.882 305760895.4
664698554.4 17699761274

Ke=7.03
Wd=0.28 We=0.71
Wacc=(ke*we)+(kd*wd)
5.18+0
Wacc=5.18

Interpretation:
The weighted average cost of capital tell us about the financial decisions and investment desions for the company to withstand, and also defines the capital required
There are no term loans for the company and this will be a drawback for the company
As per profit and loss statement I concluded that they do not have any intrest for the company

Rate of interest is 0 so they have to maintain a little amount of interest and term loans.

d also defines the capital required to invest

Skoda To Invest Rs.300 Crores In India (expansion)

NET PROFIT VALUE
YEARS
OUT
IN FLOW PRESENT VALUE(20%) PRESENT VALUE@FINANCING
1
300
75
0.833
62.475
2
80
0.694
55.52
3
85
0.579
49.215
4
105
0.482
50.61
5
110
0.402
44.22
6
125
0.335
41.875
TOTAL
580
3.325
303.915
NPV=303.915-300=3.915

INTERNAL RATE OF RETURN

YEARS

OUT
1
2
3
4
5
6

300

TOTAL

IN FLOW PV AT 19%
75
0.84
80
0.706
95
0.593
110
0.499
115
0.419
125
0.352
600
3.409

PV @ FIN
63
56.48
56.335
54.89
48.185
44
327.12

NPV=327.12-300=27.12
YEARS

OUT
1
2
3
4
5
6

TOTAL

INFLOW PV AT 21%
300
75
0.826
80
0.683
95
0.564
110
0.461
115
0.386
125
0.319
600
3.239

PV @ FIN
61.95
54.64
53.58
50.71
44.39
39.875
305.145

19 + (327.12-300)
*(21-19)=
(327.12-305.145)

21.46

Interpretation:
NPV
The present value of SKODA is 3.195, and hey have the positive value as compared with the discount rate of 20% .
They have to concentrat on cash inflows and out flows.

Which also results the net present value for the company and also depends upon the discount rate.

IRR
The calculated value of internal rate of return is 21.46, they have maintained good discount rate that is nearly 21% and they c
They will gain more profit, if they maintain better Discount rate.

discount rate of 20% .

rate that is nearly 21% and they can go for the expansion process for next 6 years.

Dividend Declared
Announcemen
t Date

Effective Date

Dividen
d Type

Dividen
d (%)

Remarks

7/8/2012

14-08-12

Interim

425

Rs.4.25 per
share(425%)Interim Dividend
in lieu of Dividend declared on
29.05.2012

30-05-11

2/9/2011

Final

350

24-05-10

9/9/2010

Final

275

1/6/2009

21-08-09

Final

275

30-05-08

25-08-08

Final

210

2/3/2007

15-03-07

Interim

135

Interpretation

By the year ending March 2012, Sun Pharmaceutical Industries has declared an equity dividend of 425.00% amounting to Rs 4.
The company has a good dividend track report and has consistently declared dividends for the last 5 years.

Bonus History (Sun Pharmaceutical Industries)

Announcemen
t Date

Bonus Ratio

Record
Date

Ex-Bonus
Date

21-04-2004

1:01

29-05-2004 27-05-2004

9/2/2000

2:01

23-03-2000

6/3/2000

Interpretation

The last bonus that Sun Pharmaceutical Industries had announced was in 2004 in the ratio of 1:1.The share has been quoting e

Splits History (Sun Pharmaceutical Industries)

Announcement
Date

Old FV

New FV

24-09-2010

28-10-2002

10

ExSplit
Date
25-112010
13-012003

Interpretation
Sun Pharmaceutical Industries had last split the face value of its shares from Rs 5 to Rs 1 in 2010.The share has been quoting

d of 425.00% amounting to Rs 4.25 per share. At the current share price of Rs 857.45 this results in a dividend yield of 0.5%.

ast 5 years.

:1.The share has been quoting ex-bonus from May 27, 2004.

10.The share has been quoting on an ex-split basis from November 25, 2010.

dend yield of 0.5%.