Company – Apollo Hospitals Enterprise Ltd
Author: Ankit D’Souza
SAP ID 80012100293
Company introduction –
Established by Dr Prathap C Reddy in 1983, Apollo Healthcare has a robust presence across the healthcare ecosystem. From routine wellness & preventive health care to innovative life-saving treatments and diagnostic services, Apollo Hospitals has touched more than 120 million lives from over 120 countries, offering the best clinical outcomes.
Reasons for them being one of the top hospital groups –
• 7,000+ Healing Hands
Largest network of the world’s finest and brightest medical experts who provide compassionate care using outstanding expertise and advanced technology.
• 4,000+ Pharmacies
Apollo Pharmacy is India’s first, largest and most trusted branded pharmacy network, with over 4000 plus outlets covering the entire nation
• Most Advanced Healthcare Technology
Apollo Hospitals has been the pioneer in bringing ground-breaking healthcare technologies to India.
• Best Clinical Outcomes
Leveraging its vast medical expertise & technological advantage, Apollo Hospitals has consistently delivered best in class clinical outcomes.
Objective –
To calculate the beta of Apollo Hospitals Enterprise Ltd. and find its significance
Views and Reviews –
• The first-ever healthcare services company to become part of the benchmark index – Apollo Hospitals (Money Control)
• Share price of Apollo Hospital jumps subsequently as Sensex gains 866.13 points (Hindustan Times)
• Brokerage firm Edelweiss Securities expects the inclusion of Apollo Hospitals into Nifty 50 to result in inflows of $143 million from exchange-traded funds that mirror the index. (Business Standard)
• Apollo Hospitals share price rises on entry in Nifty 50 index from March
Data Collection
• Secondary research was done in order to collect relevant data about the company’s financial performance along with the NIFTY 50 data.
• This data was sourced from websites like livemint, moneycontrol.com. Annual reports of the company were also studied. The data of the company and Nifty 50 (index) has been downloaded from nseindia.com.
• The data of the company was regressed with Nifty 50 by using data analysis technique.
• dependent variable (X) – company data & independent variable (Y) – Nifty 50 data
Data Analysis
Y^= 0.0118 -0.1121x
Where x=Apollo Hospitals Enterprises Ltd.
In the data, n= 47; R^2= 0.001609983; F-value= 0.0693
The above regression equation tells us the relationship between X and Y, where Y= Apollo Hospitals Enterprises Ltd. and X= Nifty 50 prices.
The negative sign implied that there is an inverse relationship between them; if the price rises of Nifty 50 then the price of Apollo Hospitals Enterprises Ltd. falls and vice versa.
From the equation, it can be seen if X rises by 1 unit, Y will fall by 0.1121 units (t-stat for b=-0.2633).
The figure in bracket is t-stat for b, which is less than the table value (2.571), which implies that b is not statistically significant at 5% level.
R^2 is 0.0016 which means 0.16% of Y is explained by X and the balance is error.
F= 0.0693 which is less than the table value, which means overall the model is not statistically significant at 5% level.
Conclusion
We can conclude based on the data analysis performed, that only 0.16% of Apollo Hospitals Enterprises Ltd. can be explained by Nifty 50. the functioning and the policies of Apollo Hospitals is responsible for the remaining. b value is not significant because the F value is lesser than the table value.