Author: – Sayi Pravin Kirtikar
Introduction
Star Cement Limited is the leading cement company in North-Eastern India and one of the fastest growing cement brands in West Bengal & Bihar, acquiring strong foot hold in the Indian construction Industry. Part of Century Plyboards Group, the company has established itself as the most accredited brand in the region for providing high-quality cement and fair pricing.
In addition, the company has two grinding units, a 2 million tons per annum (MTPA) cement unit in Sonapur near Guwahati and another cement unit at Mohitnagar near Siliguri in West Bengal with a capacity of 2 million tonnes per annum (MTPA) thereby, aggregating an installed capacity of around 5.7 MTPA.
Objectives: –
Calculate beta of the Star Cement limited and see its significance
Data Collection: –
Firstly, I downloaded the data of Equities and Nity-50 dated from 1st April 2021 to 31st March 2022 from the website of National Stock Exchange(nseindia.com). I have taken the data of Nifty-50 and after deleting all the column except date and closing price, I have added the weekday column in the data using weekday function of excel, then we have deleted all rows except the 5th day (Friday) rows. Then we have added another column named as Returns column where we have found the 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, in how I have collected the X and Y values.
Data Analysis: –
We can write the equation in the form of Y= a + b(X)
Where,
Y Equities Return X=Nifty-50 Returns
a = intercept and b = slope
Hence, the equation becomes, Y=a+b
A= -1.77636E-15
B= 1
Y=-1.77636E-15 – 1
T stat=1.48
Hence, the P value is less than 0.05 so it is significance @5%.