1. Title: Relationship of Shree Cement Limited with Nifty 50
2. Author: Shital Palaskar
3. Introduction:
Shree Cement Ltd is one of India’s premier cement makers, founded in Beawar, Rajasthan, in 1979. The company’s manufacturing operations are spread over North and East India across six states. The company has a consolidated cement production capacity of 44.4 million tonnes per annum (MTPA) and a power generation capacity of 742 MW. The company is an energy conscious & environment friendly business organization. They have three brands under their portfolio namely Shree Ultra Jung Rodhak Cement, Bangur Cement and Rockstrong Cement. Now headquartered in Kolkata, it is one of the biggest cement makers in Northern India.
4. Objective: Calculate Beta of Shree Cement Limited and see its significance
5.Data collection: I have collected equity data of Shree cement limited and Nifty 50 from April 1, 2021 to March 31, 2022 from the website NSE – National Stock Exchange of India Ltd. (nseindia.com). the the data of Shree cement limited and Nifty 50 is then sorted only for Friday closing price. The collected data is then processed and return for Shree cements and Nifty calculated.
(I perform regression using Excel considering Return on Nifty 50 as X and return of Shree cement as Y.)
6.Data analysis:
The regression equation is written as follows:
Y= a + bX
Where,
Y = Shree cement return
X = Nifty 50 return
a = intercept
b = slope
Y= -1.0043 – 1.1378X
(5.216)
n = 45
R2 = 0.3875
F = 27.206
9.Conclusion:
The above equation in data analysis explains us the relationship between Return on Nifty 50(X) and Shree cement limited (Y).
If X rises by 1 unit, then Y will fall by 1.1378 units and vice versa.
Figure in bracket i.e. 5.216 (just below the value of b) is the value of t stat, the P value for which is 0.0000050 which is less than 0.05 which means b is statistically significant at 5% level.
R2 is 0.3875 which means 38.75% of Y is explained by X and remaining 61.25% is error.
The value F is 27.206 for which P value is 0.0000050 which is less than 0.05 which means that the relationship between the two variables i. e. return of Shree Cement Limited and return of nifty 50 is statistically significant at 5% level.