Author: Ashtadha S. Borkar
Introduction: Ambuja Cements Limited, formerly known as Gujarat Ambuja Cement Limited, is a major Indian cement producing company. The Group markets cement and clinker for both domestic and export markets. India’s leading cement company known for its hassle-free, home building solutions and sustainable development operations. Its unique products tailor-made for Indian climatic conditions, sustainable operations and initiatives that advance the company’s philosophy of contributing to the larger good of the society have made it the most trusted brand in Indian cement industry.
Objective: Calculate beta of the Ambuja Cements and see its significance
Data Collection:
Firstly, I downloaded the data of equities and Nifty-50 dated from 1st April 2021 to 31st March 2022 from the website of www.nseindia.com (National Stock Exchange) I took the data of Nifty-50 and deleted all the column except date and closing price and added the weekday column in the data using weekday function of excel, then again deleted all rows except the 5th day (Friday) rows. Then added another column named as Returns, where i found returns by using the values in closing price column and named it as X (which will be X for regression also). Similarly repeating all these steps for our selected company, I named it as Y (which will be Y for regression also) Here is how I collected the values of X and Y.
Data Analysis:
We can write the equation in the form of Y= a + b(X)
Where, Y Equity Return X=Nifty-50 Return
a = intercept and b = slope
Hence, the equation becomes
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept -140.332 28.21709 -4.97332 1.1E-05 -197.238 -83.4273 -197.238 -83.4273
X PRICE 0.023894 0.001901 12.56788 5.44E-16 0.02006 0.027728 0.02006 0.027728

A= -140.33
B= 0.023894
Y= -140.33 – 0.023894 X
T Stat = 12.56788
Since P Value is less than 0.05 so the model is significant @ 5%
The above equation shows the relationship between price and demand, if the price rises demand falls.