Relationship of NIFTY and Rajesh Exports Ltd.
Author – Rhea Ajith
SAP ID- 80012100677
INTRODUCTION
Rajesh Exports Limited, based in Bangalore, Karnataka, is an Indian multinational gold retailer. Gold and jewellery are refined, designed, and sold by the company. With revenues of 1.96 trillion, it was rated 7th on the Fortune India 500 list in 2020, and 462nd on the Fortune Global 500. Prashant Mehta is the current managing director, while Rajesh Mehta is the executive chairman.
Rajesh Exports Limited was created in 1989 by Rajesh Mehta and his brother Prashant Mehta, both of whom were born into a middle-class Jain family. The brothers began manufacturing in a ten-person shop in their Bangalore garage.By 1990, the company had opened a retail location and was rapidly growing.The business opened a big production unit in Bangalore in 2001.By converting foreign currency convertible bonds issued in 2007, the corporation was able to raise $134.9 million in 2011.In 2015, the business paid $400 million for Valcambi of Balerna, Switzerland, the world’s largest gold refiner.They are now working on expanding their Shubh Jewellers retail store.
Mission Statement
Our objective is to firmly establish ourselves as a global leader in the value chain of Gold. We are currently the largest constituent of the global gold business. We would put all our efforts to ensure that we have a substantial global share in the entire value chain of gold by moving up the value chain by making available globally to the retail consumers, Gold jewellery and investment Gold of the finest quality and designs at the best prices.
OBJECTIVE
To calculate the beta of Rajesh Exports and find its significance.
VIEWS AND REVIEWS
-By HDFC Securities
Revenue rose by 0.19% to Rs. 43926.8 Cr in Q1FY19 when compared to the previous quarter. On the other hand, it decreased by 12.86%
when compared with Q1FY18. The Sales had been increasing from Q4FY18 to Q1FY19. It displayed an erratic but decreasing trend from
Q1FY18 to Q4FY18. EBITDA was Rs. 578.08 Cr for Q1FY19, a rise of 3.59% compared to Q4FY18.It grew by 29.84% compared to Q1FY18 .
The EBITDA had been increasing from Q4FY18 to Q1FY19. It displayed an erratic but increasing trend from Q1FY18 to Q4FY18. PAT for
Q1FY19 was Rs. 399.16 Cr, a rise of 8.09% when compared to Q4FY18 . The value of PAT has been increasing throughout the period.
DATA COLLECTION
Data of index and equity were collected from https://www1.nseindia.com/ and https://www.nseindia.com/ respectively. Daily returns from 1st March-2021 to 28 Feb-2022 were downloaded in excel format from these websites and it was sorted into weekly format. Then weekly returns were calculated for both index and equity and then regression analysis was done.
DATA ANALYSIS
Predicted Y = 0.215376+0.180461X
N=47, R Square= 0.16391, F= 8.625926
Tstat (beta) = 2.936993
Tstat (0.05,45)= 2.0141
The above regression equation tells us the relationship between X and Y. Where X is NIFTY’s weekly returns and Y is Rajesh Exports Ltd’s weekly returns.
The positive sign of Beta tells us the that there is a positive relationship between NIFTY and Rajesh Exports Ltd’s weekly returns.
From the equation, it can be seen that if X rises by 1 unit, Y will rise by 0.180416 units.
T calculated is more that T tabulated which means, β is statistically significant at 5% confidence level.
R^2 is 0.16391 which means 16% of Y (Rajesh Exports Ltd’s) is explained by X. And the balance is explained by error.
F is 38.944318 which is more than table value which means model is statistically significant at 5% level.
CONCLUSION
β is statistically significant in case of NIFTY and Rajesh Exports Ltd. Also, it can be concluded that Rajesh Exports Ltd is a low beta share. Since it is less than 1.