INTRODUCTION
Adani Ports and Special Economic Zone Limited (APSEZ) is the largest commercial ports operator in India accounting for nearly one-fourth of the cargo movement in the country. Its presence across 13 domestic ports in seven maritime states of Gujarat, Maharashtra, Goa, Kerala, Andhra Pradesh, Tamil Nadu and Odisha presents the most widespread national footprint with deepened hinterland connectivity. The port facilities are equipped with the latest cargo-handling infrastructure which is not only best-in-class but also capable of handling the largest vessels calling at Indian shores. Our ports are equipped to handle diverse cargo, from dry cargo, liquid cargo, crude to containers.
Through its subsidiary Adani Logistics Ltd., APSEZ operates three logistics parks located at Patli in Haryana, Kila-Raipur in Punjab and Kishangarh in Rajasthan. With the ability to handle 500,000 twenty-foot equivalent units (TEUs) annually, the Adani logistics business is growing at a rapid pace.
Over the years, APSEZ has evolved into a provider of integrated port infrastructure services, of which the Mundra SEZ in Gujarat is a landmark validation. Spanning over 8,000 hectares, the Mundra Economic Hub offers investment options as the largest multi-product SEZ, Free Trade and Warehousing Zone (FTWZ) and Domestic Industrial Zone.
The Company’s integrated services across three verticals, i.e. Ports, Logistics and SEZ, has enabled it to forge alliances with leading Indian businesses making APSEZ an undisputed leader in the Indian port sector.
Along with its expertise in providing end-to-end logistics solutions, operational excellence, low-cost operations and synergies through acquisitions, APSEZ was also certified as a Great Place to Work in FY 2021-22. The Company is backed by a young and dynamic workforce that propels it to greater heights.
OBJECTIVE
To calculate the beta of Adani Ports and find its significance.
VIEWS AND REVIEWS
• Vision- To be a world-class leader in businesses that enrich lives and contribute to nations in building infrastructure through sustainable value creation.
• Sustainability- Being one of the greenest port operators in the world, we are extremely mindful of resourceful habitat creation and have taken huge initiatives for mangrove preservation and environmental conservation.
• People are helpful, work pressure is up to the person – take it and shine or leave it and stay put. Ethical environment, and a culture of safety, ethics and hard work. It goes without saying that the above experience is relevant to the department which I served and is not necessarily indicative of all group companies or even departments within a company.
• The Adani logistics ltd is a good company but the area of the domestic warehouse is very bad even here management is not supportive. they don’t give a good salary hike and the bonus of every year is very low.
DATA COLLECTION
Data of index and equity were collected from https://www1.nseindia.com/ and https://www.nseindia.com/get-quotes/equity?symbol=ADANIPORTS respectively. Daily returns from 1st March-2021 to 28 Feb- 2022 were downloaded in excel format from these websites and it was sorted into a weekly format. Then weekly returns were calculated for both index and equity and then regression analysis was done.
DATA ANALYSIS
Predicted Y = 0.058006+0.505015X
N=45, R Square= 0.020881349
F= 0.917047
Tstat (beta) = -0.1531
Tstat = -0.9576
The above regression equation tells us the relationship between X and Y. Where X is
NIFTY’s weekly returns and Y is Adani Port’s weekly returns.
The positive sign of Beta tells us that there is a positive relationship between NIFTY
and Adani Port’s weekly returns.
From the equation, it can be seen that if X rises by 1 unit, Y will rise by 0.505015 units. T calculated is more than T tabulated which means, β is statistically significant at a 5% confidence level.
R^2 is 0.020881349 which means 47% of Y (Adani Port’s) is explained by X. And the balance is explained by error.
F is 5.386 which is more than the table value which means the model is statistically significant at a 5% level.
CONCLUSION
β is statistically significant in the case of NIFTY and Adani Ports. Also, it can be concluded that Adani Ports is a medium beta share. Since it is around 1.