REPORT
TITLE – Relationship of NIFTY and Kamdhenu Pvt ltd
AUTHOR– KARAN SINGH DHILLON (SAP ID- 80012100004)
INTRODUCTION
KAMDHENU LTD. (KAMDHENU)
Kamdhenu Ispat Ltd is the largest manufacturer of international quality Steel Bars in India. The Company is a manufacturer of Steel Bars in India. The company operates in three segments namely Steels Power and Paints. They use CRM Belgium technology to manufacture their string of products such as CID bars thermo mechanical treated (TMT) bars TMT-Gal bars and Stainless steel in a flattering time of 18 seconds against 52 seconds of others. Their structural steel products include angelschannels flats and beams.The company is the first company to get the prestigious ISO 9001:2000 certifications. They have their manufacturing facility located at Bhiwadi in Rajasthan. Kamdhenu Paints a unit of the company has a production unit in Chopanki Rajasthan. They manufacture and market the paints under the trade mark Colour Dreamz. They also launched the Eco-Friendly paints Kamolite.
OBJECTIVE
To find beta of Kamdhenu Ltd and find its significance.
VIEWS AND REVIEWS
Manufacturer and seller of branded TMT Bars Kamdhenu Limited has reported a consolidated net profit of ₹6.08 crore for the quarter ended June 30, 2019. This was 2.9 per cent higher than the net profit of ₹5.91 crore recorded in the corresponding quarter last fiscal.
The total income of the company stood at ₹223.02 crore for the quarter under review.The total income was ₹ 399.83 crore in the same quarter last fiscal
DATA COLLECTION
The data of NIFTY and KAMDHENU LTD was collected through NSE Website and was downloaded from 1-March-2021 to 28-February-2022 in an excel sheet. The closing prices were found out. The data was filtered on weekly basis and then weekly returns of both NIFTY and KAMDHENU was calculated. The company returns have been regressed on nifty’s returns.
DATA ANALYSIS
Y= 0.621565 – 0.76537 X1
N = 45
R SQUARE =0.082217
F = 3.852014
T Stat Beta = -1.96265
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 KAMDHENU weekly returns.
The negative sign of Beta tells us the that there is a negative relationship between NIFTY and KAMDHENU weekly returns.
From the equation, it can be seen that if X rises by 1 unit, Y will rise by 0.096034units.
T calculated is more that T tabulated which means, β is statistically significant at 5% confidence level.
R^2 is 0.082217 which means 8% of Y (KAMDHENU) is explained by X. And the balance is explained by error.
F is 3.85 which is less than table value which means model is not statistically significant at 5% level.
CONCLUSION:
β is not statistically significant in case of NIFTY and KAMDHENU Also, it can be concluded that KAMDHENU is a low beta share. Since it is less than 1.