NAME OF THE AUTHOR: SHILPA CHEMBIL

INTRODUCTION
Schaeffler India Ltd. manufactures high-precision components and systems for powertrain and chassis applications as well as rolling and plain bearing solutions for many industrial applications. The Schaeffler Group generated sales of approximately EUR 13.9 billion in 2021.
It all began 75 years ago, when two brothers, Wilhelm, and Georg Schaeffler, set up the company Industry GmbH in Herzogenaurach. This was the “big bang” moment that would ultimately give rise to a leading global automotive and industrial supplier with over 83,900 employees.
OBJECTIVES
To calculate beta of Schaeffler India Limited and its significance

DATA COLLECTION
Data of Schaeffler India Limited from 01-12-2021 to 30-11-2022 from NSE website
• Friday weekly closing prices has been found out
• Weekly Return have been calculated with the formula of (Y2-Y1)/Y1*100
• Weekly Return of Equity have been regressed on Weekly Return of Nifty

DATA ANALYSIS
Weekly Return of Schaeffler Ltd.= -0.089 + 0.131 Weekly Return of Nifty + E
• t-stat = 0.1634
• R2 = 0.000568
• F = 0.0267
• N = 49
The above equation tells us about the relationship between Weekly Return of Schaeffler India Ltd. and Weekly Return of Nifty. The positive sign means that there is a direct relationship. If nifty rises, equity rises and if nifty falls, equity falls. The co-efficient of weekly return of nifty is 0.1318, which means if nifty rises by .13 unit, Schaeffler India Ltd. will rise by 0.1318 units and vice versa.
Number of Observations are 49 and t-stat is 0.1634.
P value is 0.8708, which is more than 0.05, means that b is statistically not significant at 5%. Even it is less than 0.05, b is statistically significant at 5% level.
R2 is 0.000568, which means that 0.0568% of Y (Schaeffler India) is explained by X (nifty), balance of 99.9% is error. Error is due to the variables which are not in the model.
F is 0.0267, the P value for which is 0.870 < 0.05, means overall the model is statistically significant.

CONCLUSION
Since b = 0.163 is less than 5, it is statistically insignificant.
Schaeffler India Ltd. is a not a good option for investment because for every decrease in nifty there will a decrease in the equity of Schaeffler India.