Corporate Finance Individu
Submitted By,
Jeswin Jose
PGDM
p241
Companies Choosen:
> JK Tyre & Inds. Ltd.
> JM Financial Ltd.
> JSW Energy Ltd.
Individual Assignment
Jeswin Joseph
PGDM - B
p24167
oosen:
. Ltd.
td.
d.
Year Declaration Date Ex-Dividend Date Dividend Type
Tuesday, May 21, 2024 Friday, July 26, 2024 Final
2024
### ### Interim
2023 ### ### Final
2022 Friday, May 20, 2022 ### Final
2021 ### ### Final
2020 Monday, June 15, 2020 ### Final
JK Tyre & Industr
company retains m
declaration, refle
8.35%, which is co
prioritizing reinve
J K Tyre & Inds. Ltd.
Earnings Per Share
Payment Date Dividend (Rs) Avg Share Price
(EPS)
### ₹ 3.50
₹ 30.16 ₹ 450.40
### ₹ 1.00
### ₹ 2.00 ₹ 10.66 ₹ 258.70
### ₹ 1.50 ₹ 8.53 ₹ 152.20
### ₹ 2.00 ₹ 12.97 ₹ 155.63
### ₹ 0.70 ₹ 6.12 ₹ 64.93
Calculation of Cost of Equity Source Dividend Payout Rati
Rf 6.82% https://www.rbi.org.in/
17.58%
15.42%
Beta (β) 0.92
https://finance.yahoo.com/quote/JKTYRE.NS/key-statistics/
11.44%
Rm (Nifty 500) 25.60%
https://niftyindices.com/market-data/return-profile
Ke 24.10% CAPM
2020 2021 2022
YEAR
Tyre & Industries Ltd. has a Dividend Payout Ratio (DPR
mpany retains most of its earnings for reinvestment. The
laration, reflecting a positive investor sentiment. Howe
5%, which is common as prices adjust post-dividend. Ov
oritizing reinvestment over high dividend payouts.
2
J K Tyre & Inds. Ltd.
Stock Price
Dividend Payout Dividend Yield Stock Price after
before
Ratio (DPR) Ratio (DYR) Declaration date
Declaration date
₹ 408.25 ₹ 424.45
14.92% 1.00%
₹ 533.90 ₹ 508.50
18.76% 0.77% ₹ 198.75 ₹ 180.95
17.58% 0.99% ₹ 124.35 ₹ 123.25
15.42% 1.29% ₹ 122.70 ₹ 125.60
11.44% 1.08% ₹ 59.75 ₹ 61.10
Dividend Payout Rati o (DPR) Dividend Yield Rati o (
18.76% 1.29%
17.58%
15.42% 1.08%
14.92%
0.99%
2021 2022 2023 2024 2020 2021 2022
YEAR
YEAR
Payout Ratio (DPR) of 14.92% during the last FY, indicati
einvestment. The stock price rose by 3.97% after the d
sentiment. However, after the dividend payment, the s
post-dividend. Overall, the company appears to be in a
nd payouts.
Impact of dividend
Stock Price before ex- Stock Price after Impact of dividend on
declaration date on stock
dividend date payment date stock price (% change)
price (% change)
3.97% ₹ 438.20 ₹ 401.60 -8.35%
-4.76% ₹ 499.20 ₹ 499.45 0.05%
-8.96% ₹ 252.15 ₹ 265.25 5.20%
-0.88% ₹ 139.70 ₹ 164.70 17.90%
2.36% ₹ 160.30 ₹ 150.95 -5.83%
2.26% ₹ 57.05 ₹ 72.80 27.61%
Dividend Yield Rati o (DYR)
1.29%
08%
0.99% 1.00%
0.77%
020 2021 2022 2023 2024
YEAR
ng the last FY, indicating that the
by 3.97% after the dividend
dend payment, the stock declined by
ny appears to be in a growth phase,
Dividend
Year Declaration Date Ex-Dividend Date
Type
2024 Friday, May 24, 2024 Friday, June 7, 2024 Final
2023 ### Friday, May 19, 2023 Final
### ### Interim
2022 ### Thursday, July 7, 2022 Final
### ### Interim
2021 ### Friday, May 28, 2021 Final
2020 ### Friday, May 15, 2020 Final
J M Financial Ltd. has a
between distributing pr
moderate and attractive
suggesting a positive ma
strong investor confiden
stable or growing firm w
J M Financial Ltd.
Dividend
Dividend Avg Share
Payment Date Earnings Per Share (EPS) Payout Ratio
(Rs) Price
(DPR)
### ₹ 2.00 ₹ 4.29 ₹ 68.55 46.62%
### ₹ 0.90 ₹ 6.26 63.95 14.38%
### ₹ 0.90
### ₹ 1.15 ₹ 8.10 ₹ 77.58 31.48%
### ₹ 0.50
### ₹ 0.50 ₹ 6.19 ₹ 74.98 8.08%
### ₹ 0.20 ₹ 6.48 ₹ 77.65 3.09%
Calculation of Cost of Equity Source
Dividend Payout Rati o
Rf 6.82% https://www.rbi.org.in/
Beta (β) 0.53 31.48%
https://finance.yahoo.com/quote/JMFINANCIL.NS/key-statistics/
14
Rm (Nifty 500) 25.60% https://niftyindices.com/ 8.08%
market-data/return-profile 3.09%
Ke 16.77% CAPM 2020 2021 2022 2
YEAR
ial Ltd. has a Dividend Payout Ratio (DPR) of 46.62% d
istributing profits and retaining earnings for growth. Th
and attractive to income-focused investors. After the di
a positive market reaction. Notably, after the dividend
stor confidence, possibly due to external factors beyon
rowing firm with strong market sentiment.
ancial Ltd.
Impact of dividend Stock Price
Dividend Yield Stock Price before Stock Price after
declaration date on before ex-
Ratio (DYR) Declaration date Declaration date
stock price (% change) dividend date
2.92% ₹ 79.90 ₹ 82.20 2.88% ₹ 78.30
1.41% ₹ 62.15 ₹ 64.85 4.34% ₹ 66.05
₹ 73.35 ₹ 71.75 -2.18% ₹ 71.15
3.29% ₹ 65.95 ₹ 61.35 -6.97% ₹ 61.50
₹ 72.70 ₹ 71.05 -2.27% ₹ 69.35
0.67% ₹ 81.10 ₹ 82.40 1.60% ₹ 87.50
0.26% ₹ 57.05 ₹ 65.40 14.64% ₹ 64.25
ividend Payout Rati o (DPR) Dividend Yield Rati o (DYR)
46.62% 3.29%
2.92
31.48%
1.41%
14.38%
8.08% 0.67%
0.26%
2021 2022 2023 2024 2020 2021 2022 2023 202
YEAR YEAR
R) of 46.62% during the last FY, indicating a balanced ap
for growth. The Dividend Yield Ratio (DYR) is 2.92%, w
rs. After the dividend declaration, the stock price rose b
r the dividend payment, the stock surged by 58.65%, in
factors beyond the dividend itself. The company show
nt.
Stock Price
Impact of dividend on
after payment
stock price (% change)
date
₹ 124.22 58.65%
₹ 89.65 35.73%
₹ 81.00 13.84%
₹ 63.90 3.90%
₹ 61.60 -11.18%
₹ 91.80 4.91%
₹ 81.65 27.08%
Rati o (DYR)
2.92%
1.41%
2023 2024
balanced approach
is 2.92%, which is
price rose by 2.88%,
y 58.65%, indicating
mpany shows signs of a
Year Declaration Date Ex-Dividend Date
2024 Tuesday, May 7, 2024 Friday, May 31, 2024
2023 Tuesday, May 23, 2023 Friday, June 2, 2023
2022 Wednesday, May 4, 2022 Monday, May 30, 2022
2021 Friday, June 25, 2021 Tuesday, July 27, 2021
2020 Wednesday, May 20, 2020 ###
J S W Energy
retains a sign
suggesting th
the dividend
concerns abo
indicating a re
over short-te
indicating a re
over short-te
J S W Energy
Earnings Per Share
Dividend Type Payment Date Dividend (Rs)
(EPS)
Final Sunday, July 28, 2024 ₹ 2.00 ₹ 10.47
Final Friday, July 28, 2023 ₹ 2.00 ₹ 8.99
Final Thursday, July 14, 2022 ₹ 2.00 ₹ 10.51
Final ### ₹ 2.00 ₹ 4.84
Final ### ₹ 1.00 ₹ 6.70
Calculation of Cost of Equity Source
Rf 6.82% https://www.rbi.org.in/
Beta (β) 0.08 https://finance.yahoo.com/quote/JSWENERGY.NS/key-sta
Rm (Nifty 200) 24.65% https://niftyindices.com/market-data/return-profile
Ke 8.25% CAPM
J S W Energy Ltd. has a Dividend Payout Ratio (DPR
retains a significant portion of earnings for expansio
suggesting that the stock is not primarily attractive
the dividend declaration, the stock price fell by 9.76
concerns about growth or external factors. Howeve
indicating a recovery. This suggests the company is
over short-term payouts.
indicating a recovery. This suggests the company is
over short-term payouts.
J S W Energy Ltd.
Dividend
Dividend Yield Stock Price before Stock Price after
Avg Share Price Payout Ratio
Ratio (DYR) Declaration date Declaration date
(DPR)
₹ 390.45 19.10% 0.51% ₹ 617.55 ₹ 557.25
₹ 275.03 22.25% 0.73% ₹ 245.15 ₹ 249.70
₹ 193.60 19.03% 1.03% ₹ 304.95 ₹ 314.70
₹ 64.95 41.32% 3.08% ₹ 158.15 ₹ 154.10
₹ 59.98 14.93% 1.67% ₹ 39.15 ₹ 41.90
Dividend Payout Rati o (DPR) Dividend Yie
41.32% 3.08%
22.25% 1.67%
19.03% 19.10%
14.93%
1.
2020 2021 2022 2023 2024 2020 2021 2
YEAR YE
Payout Ratio (DPR) of 19.10% during the last FY, indica
rnings for expansion. The Dividend Yield Ratio (DYR) is
rimarily attractive for dividend income but rather for ca
ck price fell by 9.76%, implying a negative market reacti
al factors. However, after the dividend payment, the sto
ts the company is in a growth phase, where investors p
ts the company is in a growth phase, where investors p
Impact of dividend
Stock Price before ex- Stock Price after Impact of dividend on
declaration date on
dividend date payment date stock price (% change)
stock price (% change)
-9.76% ₹ 609.00 ₹ 629.25 3.33%
1.86% ₹ 253.45 ₹ 288.70 13.91%
3.20% ₹ 283.40 ₹ 228.75 -19.28%
-2.56% ₹ 241.05 ₹ 256.70 6.49%
7.02% ₹ 45.60 ₹ 59.50 30.48%
Dividend Yield Rati o (DYR)
3.08%
1.67%
1.03%
0.73%
0.51%
2020 2021 2022 2023 2024
YEAR
e last FY, indicating that the company
Ratio (DYR) is very low at 0.51%,
ut rather for capital appreciation. After
e market reaction, possibly due to
ayment, the stock rose by 3.33%,
ere investors prioritize future potential
ere investors prioritize future potential
Dividend Payout Ratio (DPR)
Company Name
2020 2021 2022 2023
J K Tyre & Inds. Ltd. 11.44% 15.42% 17.58% 18.76%
J M Financial Ltd. 3.09% 8.08% 31.48% 14.38%
J S W Energy Ltd. 14.93% 41.32% 19.03% 22.25%
Dividend Payout Ratio
50.00%
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2020 2021 2022 2023 2024
J K Tyre & Inds. Ltd. J M Financial Ltd. J S W Energy Ltd.
Among the three companies, JM Financ
investors. The stock price reacted positi
indicating strong investor confidence. O
over high dividend distribution. While it
that investors are more interested in its
approach, focusing on expansion rather
to concerns over future earnings, thoug
three companies declared and paid divi
the most promising and rewarding divid
seeking long-term growth rather than im
to concerns over future earnings, thoug
three companies declared and paid divi
the most promising and rewarding divid
seeking long-term growth rather than im
(DPR) Dividend Yield Ratio (DYR)
Company Name
2024 2020 2021
14.92% J K Tyre & Inds. Ltd. 1.08% 1.29%
46.62% J M Financial Ltd. 0.26% 0.67%
19.10% J S W Energy Ltd. 1.67% 3.08%
Dividend Yield Ratio
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
2024 2020 2021 2022 2023
ergy Ltd. J K Tyre & Inds. Ltd. J M Financial Ltd. J S W Energy Ltd.
es, JM Financial Ltd. stands out as the best dividend
eacted positively to the dividend announcement an
onfidence. On the other hand, JK Tyre & Inds. Ltd.
tion. While its stock price initially rose post-announ
erested in its growth potential than dividend incom
ansion rather than payouts. However, its stock reac
rnings, though it recovered its share price after divi
and paid dividends only once most of the times, iss
warding dividend policy, J K Tyre & Inds. Ltd. and J
rather than immediate returns.
rnings, though it recovered its share price after divi
and paid dividends only once most of the times, iss
warding dividend policy, J K Tyre & Inds. Ltd. and J
rather than immediate returns.
Dividend Yield Ratio (DYR)
2022 2023 2024
0.99% 0.77% 1.00%
3.29% 1.41% 2.92%
1.03% 0.73% 0.51%
d Yield Ratio
2022 2023 2024
M Financial Ltd. J S W Energy Ltd.
best dividend-paying firm, making it attractive to in
uncement and surged significantly after the dividen
e & Inds. Ltd. follows a low payout policy, prioritizin
post-announcement then it fell after dividend paym
vidend income. JSW Energy Ltd. maintains a conser
its stock reacted negatively to the dividend declarati
rice after dividend payment, signaling long-term inv
the times, issuing final dividends. While J M Financ
ds. Ltd. and J S W Energy Ltd. are more suitable for
rice after dividend payment, signaling long-term inv
the times, issuing final dividends. While J M Financ
ds. Ltd. and J S W Energy Ltd. are more suitable for
ttractive to income-seeking
r the dividend payment,
y, prioritizing reinvestment
vidend payment, suggesting
ins a conservative dividend
end declaration, likely due
ong-term investor trust. All
J M Financial Ltd. offers
suitable for investors
ong-term investor trust. All
J M Financial Ltd. offers
suitable for investors
