Author- Shubhangi Karmakar
Introduction:
Shoppers Stop is home to a multitude of leading international and national brands for apparels, fragrances, accessories, cosmetics, footwear, home décor and furnishings catering to the needs of the entire family. They aspire to provide their customers a memorable international shopping experience. They are one of the largest chains of department stores across India.
Objectives: To calculate Beta of Shoppers Stop Ltd and significance.
Data Collection: Data of Shoppers Stop Ltd from 01-12-2021 to 30-11-2022 from NSE website
• Friday weekly closing prices has been found out
• Weekly Return have been calculated with the formula of (Y2-Y1)/Y1*100
• Weekly Return of Equity have been regressed on Weekly Return of Nifty
Data Analysis:
Y = -0.1801 + 0.0351X + e
• N = 49
• R2 = 0.00737
• F = 0.34908
• T-stat = 0.5908
• The above equation tells us about the relationship between Weekly Return of Shoppers Stop Ltd and Weekly Return of Nifty. The negative sign means that there is an indirect relationship. If nifty rises, equity falls and if nifty falls, equity rises. The co-efficient of weekly return of nifty is 0.0351, which means if nifty rises by 1 unit, Shoppers Stop Ltd equity will fall by 0.0351 units and vice versa.
• Number of Observations are 49 and t-stat is 0.5908.
• P value is 0.5574, which is more than 0.05, means that b is statistically insignificant at 5%. Even it is more than 0.01, b is statistically insignificant at 1% level.
• R2 is 0.00737, which means that 0.737% of Y (Shoppers Stop) is explained by X (nifty), balance of 99.3% is error. Error is due to the variables which are not in the model.
• F is 0.34908, the P value for which is 0.5574> 0.01, means overall the model is statistically insignificant.
Conclusion
Since b = 0.0351 is less than 1, it is statistically insignificant.
Shoppers Stop Ltd is a not good option for investment because for every increase in nifty there will a decrease in the equity of Shoppers Stop.