By Simar Kaur saluja
SAP ID: 80012100679
Introduction:
Siemens is a global powerhouse focusing on the areas of electrification, automation and digitalization. One of the world’s largest producers of energy-efficient, resource-saving technologies, Siemens is a leading supplier of systems for power generation and transmission as well as medical diagnosis. In infrastructure and industry solutions the company plays a pioneering role.
Siemens’ technical expertise, comprehensive portfolio and long-standing experience are helping to pioneer a sustainable future across the globe. Find detailed information, news, insights, and references on the topic areas that exemplify Siemens’ success in providing state-of-the-art solutions in fields including IT, industry, finance, and energy.
Siemens is a global powerhouse positioned along the electrification value chain – from power generation, transmission and distribution to smart grid solutions and the efficient application of electrical energy – as well as in the areas of medical imaging and laboratory diagnostics. Today, Siemens has around 377,000 employees in more than 200 countries/regions. We operate in production and manufacturing plants worldwide. In addition, we have office buildings, warehouses, research and development facilities or sales offices in almost every country/region in the world.
Objective:
To calculate the beta of the company and find its significance
Views and Reviews of Siemens
Siemens Limited is a company that specialises in electrification, automation, and digitalization. It is a prominent manufacturer of combined cycle turbines for power generation, power transmission and distribution systems, infrastructure solutions for Smart Cities and transportation, industrial automation and software solutions, and healthcare equipment.
Siemens Limited has 21 facilities in India and has a nationwide sales and service network. Siemens Limited is Siemens AG’s flagship listed firm in India, with Siemens AG Germany owning 75% of the shares. Siemens Ltd began as the Siemens Engineering and Manufacturing Company of India Pvt Ltd in 1957.
Schuckertwerke AG, both of West Germany, signed into a cooperative arrangement with the corporation in March 1957.
Siemens & Halske AG changed its name to Siemens AG in 1966, and it also took over the manufacturing and business operations of Siemens-Schuckertwerke AG and Siemens-Reiniger-Werke AG.
The company’s name was changed from Siemens Engineering & Manufacturing Company of India Ltd to Siemens India Ltd in 1967
Data Collection:
Data of index and equity were collected from https://www1.nseindia.com/. 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 = 0.296398 + 1.104366 X
N=46, R Square= 0.320096, F= 20.71503
Tstat (beta) = 0.574816
Tstat (0.05,45)= 4.551377
The above regression equation tells us the relationship between X and Y. Where X is
NIFTY’s weekly returns and Y is Siemens Ltd’s weekly returns.
The positive sign of Beta tells us the that there is a positive relationship between NIFTY
and Siemens Ltd’s weekly returns.
From the equation, it can be seen that if X rises by 0.5 unit, Y will rise by 0.505015 units. T calculated is more that T tabulated which means, β is statistically significant at 5% confidence level.
R^2 is 0.320096which means 32% of Y (Siemens Ltd) is explained by X. And the balance is explained by error.
F is 20.71503 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 Siemens Ltd. Also, it can be concluded that Siemens ltd is a low beta share. Since it is around than 0.5.