Author: Sudip Paul, PGDM – Operations & SCM, 021230022759.
Introduction: SML Isuzu Limited (SMLI) is a commercial vehicle manufacturer established in 1983. SMLI produces and sells buses, ambulances, and customized vehicles. Sumitomo Corporation and Isuzu Motors hold a 44% and 15% stake of the company respectively.
The company manufactures light commercial vehicles like trucks, buses, school buses, ambulances, police personnel carriers, water tankers and special vehicles. It exports its products to countries like Nepal, Zambia, Bangladesh, Kenya, Tanzania, Ghana, Ivory Coast, Rwanda, Seychelles, Syria, Jordan.
Objective: To calculate the Beta and its Significance.

Data Collection: Data for Equity & Nifty has been downloaded from NSE site for the period from 01st Jan,2022 to 31st Dec 2022.The data was edited and manipulated to get Friday closing price, weekly returns were found out of Nifty was considered as” X” and weekly report of equity were considered as “Y”.

Data Analysis:

Demand Y= 0.2695 – 0.657 NIFTY RET (X) + e
(t-sat= -1.454)
N=49, R^2= 0.043, F=2.114
t-sat of b is shown in bracket is (-1.454).
The P-value for this is 0.152 which is more than 0.05 meaning ‘b’ is statistically not significant at 5% level.
N = 49
R^2 = 0.043 which means 4.3% of Y is explained by X and balance 95.7% is unexplained i.e., error.
F= 2.114
P value for this is 0.152 which is more than 0.05 which means that overall model is not statistically significant at 5% level.
The above equation tells us about the relationship between Nifty and Equity returns. Negative (-) sign shows inverse relationship which means if market goes up share price goes up.

As Beta is more than 1 it is good for investment, if Beta is less than 1 it is not good for investment if Nifty rises.