Title : Relationship between Asianpaint ltd and Nifty
Author : Akshada Chaudhari
MMS, Div. A
Kohinoor Business School, Mumbai
Introduction : Asian Paints Limited (BSE: 500820, NSE: ASIANPAINT) is an Indian multinational paint company headquartered in Mumbai, Maharashtra.The Company is engaged in the business of manufacturing, selling and distribution of paints, coatings, products related to home decor, bath fittings and providing of related services. Asian Paints is India’s largest and Asia’s third largest paints corporation. As of 2015, it has the largest market share with 54.1% in the Indian paint industry.Asian Paints is the holding company of Berger International.
Objective : To calculate the Beta value and see it’s statistical significance
Views and Reviews:Asian Paints has 67% market share in India which clearly indicates Asian Paints is the market leader in India.
For new innovation,new produts,products as per customer requirements Asian Paints is always one step ahed.Ex: Royale Aspira,Royale Atom
Data Collection :The data is collected from the NSE site: https://www.nseindia.com
Regress weekly return of Equity on indices from date 01/02/2018 to 31/01/2019
Data Analysis :
Equity = -0.152568 +0.4068457
Calculated t stat value is 4.9463
N is 48
R Square is 0.347205048
F is 24.46623117
P is 1.05226E-05
The above equation shows relationship between equity and indices. As per equation, t stat value is for b. The p value for which 1.05226E-05 less than 0.05 which means b is statistically significant at 5% level. R Square is 0.347205048 which means 34% of equity is explained by indices. F is 24.46623117 which is more than 0.05 which means b is statistically insignificant at 5% level. Overall, model is statistically insignificant at 5% level.
Conclusion : Equity of Asianpaints is statistically insignificant on indices of NIFTY. Invesment of this company is not good.