Introduction
Adani Enterprises Ltd is an Indian multinational public company and a subsidiary of Adani Group. It is headquartered in Ahmedabad and has business interests in coal mining and trading, airport operations, edible oils, road, rail, and water infrastructure, data centers, hydrocarbon exploration, defense and aerospace, multimodal logistics, and agro commodities. It mainly deals with the group’s integrated resources management, power trading, and natural resources businesses on a standalone basis.
OBJECTIVE: To calculate the Beta Value of Adani Enterprises Ltd and find its significance.
VIEWS AND REVIEWS:
Adani Enterprise record loss of 12 crores in Q3 FY22, against a profit of 297 crores in Q3 FY 21. The loss was due to losses in developing business. Total income increased by 61% YoY during the quarter to Rs 18,963 crore due to improved realization on the back of higher index prices in the IRM segment.
EBIDTA increased by 4% YoY to Rs 977 crore in Q3 FY22. These results are not comparable with those of the previous period due to the consolidation of Mumbai Airport. In Q3 FY22, the company took over Jaipur, Guwahati, and Thiruvananthapuram airports. With this, AELs airports portfolio now includes 7 operational airports and 1 greenfield airport. During the quarter, Adani Airports witnessed significant improvement in its operations and handled 14.5 million passengers, 1,17,525 air traffic movements, and 1,80,353 MT cargo. In the Mining Services segment, a significant ramp-up in Gare Pelma III, Talabira, and Kurmitar mines led to increasing in productions volumes by 61% in Q3 FY22.
AEL is the flagship company of Adani Group, one of India’s largest business conglomerates. The company’s business investments are centered on the fields of airport management, technology parks, roads, data center, and water infrastructure.
DATA ANALYSIS:
Predicted Y = 1.075288+ 1.679969X
N=47, R Square= 0.208788, F= 11.8747802
T stat(beta) = 3.44598
T stat (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 Adani Enterprise’s weekly returns.
The positive sign of Beta tells us that there is a positive relationship between NIFTY and Adani Enterprise’s weekly returns.
From the equation, it can be seen that if X rises by 1 unit, Y will rise by 1.679969 units.
T calculated is more than T tabulated which means, β is statistically significant at a 5% confidence level.
R^2 is 0.208788 which means 20% of Y (Adani Enterprise) is explained by X. And the balance is explained by error.
F is 11.8747802 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 Enterprise.