Bharti Airtel Ltd

Submitted By

Akshay Krishnan P
P16168
PGDM B
 Avera
Closin ge Dividen Divid
g Share d per end
Yea Price( Price year Growt Cost of Common
r Date Rs) (Year) (Rs) h (%) Stock (%)
 29-
03-
12 333.2
29-
06-
20 12 305 304.9
1 0% 0.32%
12 28- 75
09- 264.8
12 5
31-
12- 316.8
12 5
1219.
9
28-
03- 291.8
13 0
28-
06- 291.4
20 13 0 309.6
1 0.00% 0.30%
13 27- 875
09- 325.1
13 0
31-
12- 330.4
13 5
1238.
75
28-
03- 317.5
14 0
30-
06- 336.9
20 14 0 352.5 80.00
1.8 80.51%
14 30- 625 %
09- 404.2
14 5
29-
12- 351.6
14 0
1410.
25
20 30- 370.1 2.22 23.33 24.00%
15 03- 389.5 75 %
15 5
30-
06- 419.9
15 0
30-
09- 338.0
15 0
30- 333.2
12- 5
 15
1480.
70
31-
03- 350.9
16 0
29-
06- 356.6
-
20 16 5 331.7
1.36 38.74 -38.29%
16 30- 375
%
09- 314.0
16 5
30-
12- 305.3
16 5
1326.
95

COMPARISON OF BETA VALUES

R expected= Rf+(Rm-Rf)
of Bajaj =0.5
Rf=6.92%
Rm= (8185.80-7791.30)/7791.30
= 5.06%

Re = 6.92% +0.5(5.06-6.92)
From CAPM Re = 5.99%
From DCF Re = -38.29%
Substituting Re from DCF in CAPM
-38.29%=6.92%+ (5.06%-6.92%)
= 24.30