Title – Relationship between the Nifty & Shree Cement Limited.

Author – Saurabh Mohan Giri

Introduction – Shree Cement is an Indian cement manufacturer, founded in Beawar, Rajasthan, in 1979. Now headquartered in Kolkata, West Bengal (Soon to be shifted entirely to Noida), it is one of the biggest cement makers in northern India. Shree cement has moved in the last two decades from having 2 million tons (MT) production capacity to becoming the country’s third largest cement player, with an installed capacity of 43.3 mt in India and 50.4 mt overseas. It also produces and sells power under the name Shree power and Shree mega power.
The company generates 13,942 crore revenue.
Since 2006, it has more than quadrupled its production capacity both by expanding into new areas and increasing the capacities of the existing plants.

Objectives – To calculate the Beta and its significance.

Data Collection – Data for equity and nifty has been downloaded from NSE site for the period from 01st Jan 2022 to 31st dec 2022. Data was edited, cleaned, and manipulated to find closing price of each weekend. Then with help of this data weekly returns were calculated.

Data Analysis-
Equity Y = 1.138701*Nifty X – 0.27557+ E
T stat – (4.951565)
N = 49, R2= 0.342, F = 24.518
The above equation tells us about the relationship between equity weekly return Y and Nifty weekly return X. the positive sign means direct relationship which means if nifty weekly return increases, then equities weekly return also increases and vice versa
If nifty’s weekly return increases by 1% then equity’s return increases by 1.138701%. the T stat of b is shown in bracket i.e., 4.951565 and P value for the is 0.00000990721 which means is less than 0.01 meaning B is statistically significant at 1% level
N = 49 and R2 is 0.342 which means 34.2% of Y is explained by X. Balance 65.8% is error.
F is 24.518 and P value for this is 0.00000990721 which is less than 0.01. thus, overall model is significant at 1% level.

Conclusion –
The beta is 1.138701 i.e., greater than 1 means Shree Cement Limited is good for short term investment.

Report By: –
Saurabh Mohan Giri – 021230022043 – OPS & SCM Batch