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No of shares 1895934157

WACC 20%
Profit Margin 25.80%
Teminal Growth 16.25%

Dep (2007) 23533010


Gross Assets 265099314
Rate of Dep 9%
Assets to sales 1.49

Working Capital 2006-07 2005-06 2004-05


Net Sales 17851.61 11259.12 8142.44
Working Capital -5635.86 -3933.92 -2221.8
Working Capital/ sales -32% -35% -27%
Avg Working Capital -31%

2007 2008
Sales (Rs 000') 177944343 ###
Growth 0.26

PAT (Rs 000') 46013712 ###

Gross Assets (Rs 000') 265099314 ###

Dep (Rs 000') 23533010 29651592.6

Working Capital (Rs 000') -55635551.59 -70100795

FCF (Rs 000') 33037161.4


Discount Factor 1

DCF (Rs 000') 33037161.4

Sum DCF (Rs 000') 182551171.4

Terminal Value (Rs 000') 1244863160.92

Total PV (Rs) 1427414332345


Total PV (Rs Cr) 142741

Value Per Stock 752.88

Share Quality Index 37.17%


Rs Rs Cr
Brand Value Of Airtel 530569907333 53056.99
2009 2010 2011 2012
282504438.95 355955593.07 448504047.27 565115099.56
0.26 0.26 0.26 0.26

72886145.25 91836543.01 115714044.2 145799695.69

420871670.91 530298305.34 668175864.73 841901589.56

37361006.68 47074868.41 59314334.2 74736061.09

-88327001.7 -111292022.15 -140227947.91 -176687214.36

41626823.36 52449797.43 66086744.76 83269298.4


0.83 0.69 0.58 0.48

34689019.47 36423470.44 38244643.96 40156876.16

$ Cr $M
1205.84 12058.41
Growth Year Total
0.2 5 1
0.17 5 0.85
0.14 10 1.4
3.25
Terminal Growth 16%
Date Airtel Market Market Avg Airtel Avg
19-Jun-06 362.15 2916.9
20-Jun-06 352.2 2861.3 -1.91 -2.75
21-Jun-06 368.75 2923.45 2.17 4.7
22-Jun-06 364.7 2994.75 2.44 -1.1 8
23-Jun-06 370.4 3042.7 1.6 1.56
6
25-Jun-06 366.15 3050.3 0.25 -1.15
f(x) = 1.03x +
26-Jun-06 360.85 2943.2 -3.51 -1.45 4 R² = 0.52
27-Jun-06 361 2982.45 1.33 0.04
2
28-Jun-06 362.25 2981.1 -0.05 0.35
29-Jun-06 359.5 2997.9 0.56 -0.76 0
30-Jun-06 370 3128.2 4.35 2.92
-2
3-Jul-06 369.9 3150.95 0.73 -0.03
4-Jul-06 364.4 3138.65 -0.39 -1.49 -4
5-Jul-06 370 3197.1 1.86 1.54
-6
6-Jul-06 367.05 3156.4 -1.27 -0.8
7-Jul-06 371 3075.85 -2.55 1.08 -8
10-Jul-06 389.65 3142 2.15 5.03 -5 -4
11-Jul-06 382.25 3116.15 -0.82 -1.9
12-Jul-06 382.85 3195.9 2.56 0.16
13-Jul-06 371.3 3169.3 -0.83 -3.02
14-Jul-06 362 3123.35 -1.45 -2.5
17-Jul-06 355.45 3007.55 -3.71 -1.81
18-Jul-06 360.4 2993.65 -0.46 1.39
19-Jul-06 353.9 2932.75 -2.03 -1.8
20-Jul-06 364.45 3023.05 3.08 2.98
21-Jul-06 357.85 2945 -2.58 -1.81
24-Jul-06 365.25 2985.85 1.39 2.07
25-Jul-06 369.45 3040.5 1.83 1.15
26-Jul-06 382.6 3110.15 2.29 3.56
27-Jul-06 395.65 3156.15 1.48 3.41
28-Jul-06 385.65 3130.8 -0.8 -2.53
31-Jul-06 383.05 3143.2 0.4 -0.67
1-Aug-06 391.2 3147.8 0.15 2.13
2-Aug-06 393.05 3182.1 1.09 0.47
3-Aug-06 399.15 3190 0.25 1.55
4-Aug-06 400.7 3176.75 -0.42 0.39
7-Aug-06 392.3 3151.1 -0.81 -2.1
8-Aug-06 404.65 3212.4 1.95 3.15
9-Aug-06 404 3254.6 1.31 -0.16
10-Aug-06 409.05 3260.1 0.17 1.25
11-Aug-06 405.05 3274.35 0.44 -0.98
14-Aug-06 413 3313.1 1.18 1.96
16-Aug-06 413.7 3356.05 1.3 0.17
17-Aug-06 414.6 3353.9 -0.06 0.22
18-Aug-06 409.65 3356.75 0.08 -1.19
21-Aug-06 409.9 3366 0.28 0.06
22-Aug-06 409.4 3364.6 -0.04 -0.12
23-Aug-06 406 3335.8 -0.86 -0.83
24-Aug-06 415.3 3370.4 1.04 2.29
25-Aug-06 417.55 3385.95 0.46 0.54
28-Aug-06 416.7 3401.1 0.45 -0.2
29-Aug-06 415.25 3425.7 0.72 -0.35
30-Aug-06 413.8 3430.35 0.14 -0.35
31-Aug-06 411.05 3413.9 -0.48 -0.66
1-Sep-06 413.2 3435.45 0.63 0.52
4-Sep-06 418.6 3476.85 1.21 1.31
5-Sep-06 417.95 3473.75 -0.09 -0.16
6-Sep-06 427.25 3477.25 0.1 2.23
7-Sep-06 423.9 3454.55 -0.65 -0.78
8-Sep-06 430.45 3471.45 0.49 1.55
11-Sep-06 421.35 3366.15 -3.03 -2.11
12-Sep-06 423 3389.9 0.71 0.39
13-Sep-06 443.1 3454.55 1.91 4.75
14-Sep-06 439.1 3471.6 0.49 -0.9
15-Sep-06 446 3478.6 0.2 1.57
18-Sep-06 443.9 3492.75 0.41 -0.47
19-Sep-06 439.5 3457.35 -1.01 -0.99
20-Sep-06 462.4 3502.8 1.31 5.21
21-Sep-06 465.55 3553.05 1.43 0.68
22-Sep-06 469.2 3544.05 -0.25 0.78
25-Sep-06 473.65 3523.45 -0.58 0.95
26-Sep-06 479.55 3571.75 1.37 1.25
27-Sep-06 476.25 3579.3 0.21 -0.69
28-Sep-06 472.4 3571.75 -0.21 -0.81
29-Sep-06 469.25 3588.4 0.47 -0.67
3-Oct-06 467.45 3569.6 -0.52 -0.38
4-Oct-06 461.55 3515.35 -1.52 -1.26
5-Oct-06 459.95 3564.9 1.41 -0.35
6-Oct-06 460.35 3569.7 0.13 0.09
9-Oct-06 464.25 3567.15 -0.07 0.85
10-Oct-06 468.8 3571.05 0.11 0.98
11-Oct-06 472.8 3558.55 -0.35 0.85
12-Oct-06 475.85 3621.05 1.76 0.65
13-Oct-06 477.4 3676.05 1.52 0.33
16-Oct-06 486.1 3723.95 1.3 1.82
17-Oct-06 487.45 3715 -0.24 0.28
18-Oct-06 493.25 3710.65 -0.12 1.19
19-Oct-06 490.8 3677.8 -0.89 -0.5
20-Oct-06 497.15 3676.85 -0.03 1.29
21-Oct-06 499 3683.5 0.18 0.37
23-Oct-06 498.15 3657.3 -0.71 -0.17
26-Oct-06 503.25 3677.55 0.55 1.02
27-Oct-06 527.3 3739.35 1.68 4.78
30-Oct-06 542.05 3769.1 0.8 2.8
31-Oct-06 530.2 3744.1 -0.66 -2.19
1-Nov-06 541.1 3767.05 0.61 2.06
2-Nov-06 548.2 3791.2 0.64 1.31
3-Nov-06 547.5 3805.35 0.37 -0.13
6-Nov-06 543.7 3809.25 0.1 -0.69
7-Nov-06 543.8 3798.75 -0.28 0.02
8-Nov-06 543.65 3777.3 -0.56 -0.03
9-Nov-06 537.85 3796.4 0.51 -1.07
10-Nov-06 544 3834.75 1.01 1.14
13-Nov-06 564 3858.75 0.63 3.68
14-Nov-06 569.75 3865.9 0.19 1.02
15-Nov-06 578.65 3876.3 0.27 1.56
16-Nov-06 577.45 3876.85 0.01 -0.21
17-Nov-06 580.85 3852.8 -0.62 0.59
20-Nov-06 605 3856.15 0.09 4.16
21-Nov-06 623.85 3918.25 1.61 3.12
22-Nov-06 638.2 3954.75 0.93 2.3
23-Nov-06 622.05 3945.45 -0.24 -2.53
24-Nov-06 616.65 3950.85 0.14 -0.87
27-Nov-06 630.5 3968.9 0.46 2.25
28-Nov-06 628 3921.75 -1.19 -0.4
29-Nov-06 621.35 3928.2 0.16 -1.06
30-Nov-06 630.7 3954.5 0.67 1.5
1-Dec-06 633.3 3997.6 1.09 0.41
4-Dec-06 631.25 4001 0.09 -0.32
5-Dec-06 639.3 4015.75 0.37 1.28
6-Dec-06 647.35 4015.95 0 1.26
7-Dec-06 637.9 4015.35 -0.01 -1.46
8-Dec-06 634.4 3962 -1.33 -0.55
11-Dec-06 606.85 3849.5 -2.84 -4.34
12-Dec-06 575.95 3716.9 -3.44 -5.09
13-Dec-06 598 3765.2 1.3 3.83
14-Dec-06 610.4 3843.05 2.07 2.07
15-Dec-06 615.95 3888.65 1.19 0.91
18-Dec-06 619.25 3928.75 1.03 0.54
19-Dec-06 605.5 3832 -2.46 -2.22
20-Dec-06 604.7 3815.55 -0.43 -0.13
21-Dec-06 611.75 3833.5 0.47 1.17
22-Dec-06 614.9 3871.15 0.98 0.51
26-Dec-06 624.35 3940.5 1.79 1.54
27-Dec-06 631.3 3974.25 0.86 1.11
28-Dec-06 630.7 3970.55 -0.09 -0.1
29-Dec-06 629.95 3966.4 -0.1 -0.12
2-Jan-07 634.35 4007.4 1.03 0.7
3-Jan-07 640.55 4024.05 0.42 0.98
4-Jan-07 637.7 3988.8 -0.88 -0.44
5-Jan-07 636.3 3983.4 -0.14 -0.22
8-Jan-07 622.1 3933.4 -1.26 -2.23
9-Jan-07 623.2 3911.4 -0.56 0.18
10-Jan-07 613.65 3850.3 -1.56 -1.53
11-Jan-07 636.4 3942.25 2.39 3.71
12-Jan-07 663.8 4052.45 2.8 4.31
15-Jan-07 661.45 4078.4 0.64 -0.35
16-Jan-07 669.85 4080.5 0.05 1.27
17-Jan-07 668.1 4076.45 -0.1 -0.26
18-Jan-07 673.25 4109.05 0.8 0.77
19-Jan-07 685.05 4090.15 -0.46 1.75
22-Jan-07 676.4 4102.45 0.3 -1.26
23-Jan-07 689.9 4066.1 -0.89 2
24-Jan-07 687.05 4089.9 0.59 -0.41
25-Jan-07 721.1 4147.7 1.41 4.96
29-Jan-07 713.25 4124.45 -0.56 -1.09
31-Jan-07 709.25 4082.7 -1.01 -0.56
1-Feb-07 731.55 4137.2 1.33 3.14
2-Feb-07 770.6 4183.5 1.12 5.34
5-Feb-07 781.15 4215.35 0.76 1.37
6-Feb-07 770.65 4195.9 -0.46 -1.34
7-Feb-07 772.95 4224.25 0.68 0.3
8-Feb-07 766.65 4223.4 -0.02 -0.82
9-Feb-07 752 4187.4 -0.85 -1.91
12-Feb-07 726.1 4058.3 -3.08 -3.44
13-Feb-07 740.35 4044.55 -0.34 1.96
14-Feb-07 762.4 4047.1 0.06 2.98
15-Feb-07 793.35 4146.2 2.45 4.06
19-Feb-07 799.95 4164.55 0.44 0.83
20-Feb-07 791.65 4106.95 -1.38 -1.04
21-Feb-07 807.6 4096.2 -0.26 2.01
22-Feb-07 800.75 4040 -1.37 -0.85
23-Feb-07 755.95 3938.95 -2.5 -5.59
26-Feb-07 731.9 3942 0.08 -3.18
27-Feb-07 723.2 3893.9 -1.22 -1.19
28-Feb-07 718.9 3745.3 -3.82 -0.59
1-Mar-07 728.95 3811.2 1.76 1.4
2-Mar-07 706.65 3726.75 -2.22 -3.06
5-Mar-07 686.7 3576.5 -4.03 -2.82
6-Mar-07 720.7 3655.65 2.21 4.95
7-Mar-07 722.8 3626.85 -0.79 0.29
8-Mar-07 758.3 3761.65 3.72 4.91
9-Mar-07 750.4 3718 -1.16 -1.04
12-Mar-07 769.4 3734.6 0.45 2.53
13-Mar-07 765.3 3770.55 0.96 -0.53
14-Mar-07 729.9 3641.1 -3.43 -4.63
15-Mar-07 728.05 3643.6 0.07 -0.25
16-Mar-07 717.25 3608.55 -0.96 -1.48
19-Mar-07 733.65 3678.9 1.95 2.29
20-Mar-07 737.55 3697.6 0.51 0.53
21-Mar-07 761.6 3764.55 1.81 3.26
22-Mar-07 780.4 3875.9 2.96 2.47
23-Mar-07 784.2 3861.05 -0.38 0.49
26-Mar-07 770.7 3819.95 -1.06 -1.72
28-Mar-07 757.7 3761.1 -1.54 -1.69
29-Mar-07 763.5 3798.1 0.98 0.77
30-Mar-07 789.93 3821.55 0.62 3.46

Avg Stock Price 551.01 Mean 0.15 0.42


SD 1.4 2.01

Rm 29.09
8

6
f(x) = 1.03x + 0.27
4 R² = 0.52
2

0
Column E
-2 Linear Regre
Column E
-4

-6

-8
-5 -4 -3 -2 -1 0 1 2 3 4

Mean 0.15
Rm 29.23 Rm 29.00%
(E)Rm 20%
Column E
Linear Regression for
Column E

2 3 4 5

Rm 20.00
Beta 1.03
Rf 6.00
CAPM 20.42
Interest Rs. 2,820,714.00
Debt 2006-07 Rs. 53,108,052.00
Debt 2005-06 Rs. 47,962,908.00
Avg Debt Rs. 50,535,480.00
Cost of Debt 5.58%

No of Shares
Market Cap Stock Price * No of Shares
Stock Price as of 31/3

Debt

Cost of Equity
Cost of Debt

V
(1 - t)

WACC D/V*Kd*(1-t) + E/V*Ke


1895934157
Rs. 1,044,659,720,507.00
Rs. 551.00

Rs. 53,108,052.00

20.42%
5.58%

Rs. 1,044,712,828,559.00
0.70

20%