Code

STOCK

CMP

Weight

ROCE

Weighted ROCE

500875

I T C LTD

254.4

9.76

46.8

4.56768

500325

RELIANCE

720.4

9.09

7.6

0.69084

500180

HDFC BANK LT

584.25

7.71

22.7

ROE

1.75017

532174

ICICI BANK L

928.2

7.5

17.2

ROE

1.29

500209

INFOSYS LTD

2,148.85

7.35

29.4

2.1609

500010

HOUSING DEVE

673.6

7.01

30.9

ROE

2.16609

500510

LARSEN & TOU

1,319.95

5.1

13.7

0.6987

532540

TCS LTD.

1,225.75

5.04

39.6

1.99584

500312

ONG CORP LTD

277.4

4.16

19.3

0.80288

500112

STATE BANK O

1,941.20

3.65

15

ROE

0.5475

500696

HIND UNI LT

464.7

3.52

83.8

2.94976

532454

BHARTI ARTL

307

2.86

12.3

0.35178

500570

TATA MOTORS

212.8

2.83

24.8

0.70184

500520

MAHINDRA & M

687.65

2.22

28.8

0.63936

500470

TATA STL

399.3

1.9

11.4

0.2166

524715

SUN PHARMACE

630.35

1.83

22.2

0.40626

532555

NTPC LTD

153.05

1.77

8.9

0.15753

532977

BAJAJ AUTO

1,582.05

1.6

59.2

0.9472

533278

COAL INDIA

353.7

1.57

44.8

0.70336

500124

DR.REDDY'S L

1,621.10

1.45

20.2

0.2929

507685

WIPRO LTD.

334.25

1.44

21.8

0.31392

500182

HEROMOTOCO

2,006.85

1.4

43.6

0.6104

500103

BHEL

208.25

1.25

20.7

0.25875

532155

GAIL INDIA

344.7

1.23

18.5

0.22755

500087

CIPLA LTD.

326.55

1.19

18.5

0.22015

532286

JINDAL STEEL

394.6

1.16

14.9

0.17284

532500

MARUTISUZUK

1,110.65

1.12

21.4

0.23968

500440

HINDALCO IN

117.45

1.11

8

0.0888

500400

TATA POWER

94.6

1.1

5.4

0.0594

500900

STERLITE IN

100.9

1.07

12.2

0.13054

ROCE=FY14E

ROE=FY14E

TOTAL

26.35922

Source:BSE,Brokerage Reports

Value of the sensex

V=100*(E/I)*SQRT((R+G)/(I+F))

E

EPS of the sensex in FY14E

=1437

(Source:Microsec Research)

I

RFR

8.11

R=1*SQRT(ROCE/I)

1.803

100*(E/I)

17719

G=Earnings Growth

14

(Assumed)

F=WPI

7.6

SQRT((R+G)/(I+F))

1.003

Value of the sensex

17771