Relationship Piramal Enterprise Limited
with Nifty Fifty and to calculate Beta

Author: Prerna Uttam Chavan

Objective: To calculate beta of Piramal Enterprise Limited
And see its significance.
Literature Review:
Piramal Enterprise Limited (PEL) customer satisfaction surveys have been designed to understand the importance of delivery, quality, service, people, innovation and value in the minds of the customers engaged with the Company in the CDMO business. In FY21, the survey process was further strengthened and automated by securing responses from customers centrally. The Company has a strong track record of generating superior shareholder returns over the last three decades, delivering annualized shareholder returns of 24% over the last 33 years. Further, the Company has returned ₹7,335 Crore to shareholders since sale of Domestic Formulations business to Abbott in 2010.
The revolution in data and analytics is providing tremendous opportunities to organizations to maximize their ability to target, grow and service their clients, while achieving sustained efficiency. In 2020, organizations were embracing and enhancing their analytics capabilities to respond to COVID-19 challenges and prepare for the new normal.Piramal Foundation is committed to transforming health, education, water and social sector ecosystems through high impact solutions, thought leadership and partnerships.

Data Collection: https://www1.nseindia.com/live_market/dynaContent/live_watch/get_quote/GetQuote.jsp?symbol=PEL&illiquid=0&smeFlag=0&itpFlag=0#

Data:

SUMMARY OUTPUT

Regression Statistics

Multiple R
0.6855441629

R Square
0.4699707993

Adjusted R Square
0.4584484254

Standard Error
4.59280819

Observations
48

ANOVA

df
SS
MS
F
Significance F

Regression
1
860.3705302
860.3705302
40.78767121
0.00000007609823305

Residual
46
970.3188051
21.09388707

Total
47
1830.689335

Coefficients
Standard Error
t Stat
P-value
Lower 95%
Upper 95%
Lower 95%
Upper 95%
Intercept
0.2395483801
0.6976343301
0.3433724083
0.7328827781
-1.164716671
1.643813431
-1.164716671
1.643813431
X Variable 1
1.64475313
0.2575350041
6.386522623
0.00000007609823306
1.126362062
2.163144198
1.126362062
2.163144198

Shares= 0.2395+1.6447nlFTY

n= 47, Rsquare=0.46, F=40.78

Conclusion: In the above equation, the relationship between Y(demand) and X(price) positive sign means it has a relationship like If demand increases then Price also increases and if demand falls the price falls. If X rises 1.644 units then demand also rises by 0.2395 units. R square is 0.46 which means 46% of variance in demand is explained by X. F is 40.78 and the P value for this 0.000000076 which is less than 0.1 means overall this model is statistically significant at 1% level. A positive coefficient indicates that as the value of the independent variable increases, the mean of the dependent variable also tends to increase.

References:
https://www.piramal.com/wp-content/uploads/2021/06/Annual-Report-2020-21_vFinal.pdf
https://www.piramal.com/e-annual-report-2018-2019/pdf/PEL_AR%202018-19.pdf