Author – Abhishek Kumar Ojha (FM Batch)
Introduction – Apollo Hospitals Enterprise Limited is an Indian multinational healthcare group headquartered in Chennai. Along with the eponymous hospital chain, the company also operates pharmacies, primary care, and diagnostic centers, telehealth clinics, and digital healthcare services among others through its subsidiaries.
It was founded by Prathap C. Reddy in 1983 as the first corporate healthcare in India. The first branch at Chennai was inaugurated by the then President of India Zail Singh.
Fundamentals –
Return on Equity has increased versus the last 3 years average to 14.80%
Net Profit is growing at a healthy rate in the last 3 years at 22.17%
Debt to equity has declined to verse us last 3 years average to 0.33
Sales growth has been subdued in the last 3 years -9.90%
Sales growth is not so good in the last 4 quarters at 9.26%
Objectives – To Calculate Beta and its Significance
Data Collection – Data for Equity (Apollo Hospital) & Nifty has been downloaded from the NSE site for the period from 01st Jan 2022 to 31st Dec 2022. The data was edited, cleaned, and manipulated to get Friday’s closing price for both, weekly returns found out of Nifty were considered as” X” and weekly return of equity (Apollo Hospital) was considered as “Y”.
Then I found the correlation between both Nifty and Apollo Hospital and found out the regression equation from the data I extract and do further analysis on regression output.
Data Analysis –
y = a + bx + Error
Where Y = Apollo Hospital Return, X = Nifty Return
i.e., Apollo Hosp. Return Y = – 0.051 -1.355 X Nifty Return + e
(t-stat = -1.474)
N = 49, R2 = 0.044, F = 2.174
t-stat of b is shown in bracket = -1.474
The P-value for this is 0.146 which is more than 0.01 meaning ‘b’ is not statistically significant at the 1% level.
N = 49,
R2 = 0.044 which means 4.4% of Y is explained by X and balanced 95.6% is unexplained i.e., Error.
F = 2.174
The P-value for this is 0.146 which is more than 0.01 which means that the overall model is not statistically significant at the 1% level.
The above equation tells us about the relationship between NIFTY and Equity returns.
A negative (-) sign shows an inverse relationship which means if the market goes up share price goes up.
Conclusion – As if Beta is more than 1 it is good for investment, if Beta is less than 1 it is not good for investment if the Nifty rises. But in this case, Beta is less than 1 i.e., not good for investment at this point.
Report By – Abhishek Kumar Ojha – 021230022266 – FM Batch