Author: – Uddhav Prashant Salvi
Introduction: – UltraTech Cement Limited is the cement flagship company of the Aditya Birla Group.
A USD 7.1 billion building solutions powerhouse, UltraTech is the largest manufacturer of grey cement, ready mix concrete (RMC) and white cement in India. It is the third largest cement producer in the world, excluding China.
• Revenue: Rs. 38,657 Cr
• Production capacity: 102.75 MTPA
• Employees: 120,000
• Market Share: 21.4 %
Objective: – To calculate the Beta and its Significance.
Data Collection: – Data for Equity & Nifty has been downloaded from NSE site for the period from 01st Jan 2022 to 31st Dec 2022.The data was edited and manipulated to get Friday closing price and weekly returns were found out of Nifty was considered as” X” and weekly report of equity of UltraTech were considered as “Y”.
Data Analysis: – Equity Y= -0.1651+1.1852 Niftyret X+ e (t-sat= 6.7419)
N=49, R2=0.4916, F=45.4537
T-sat of b is shown in bracket is (6.7419).
The P-value for this is 2.014E-08 which is less than 0.05 meaning ‘b’ is statistically significant at 5% level.
N = 49 & R^2 = 0.4916 which means 49% of Y is explained by X and balanced 51% is unexplained i.e., error.
F= 45.4537
P value for this is 2.014E-08 which is less than 0.05 which means that overall model is statistically significant at 5% level.
The above equation tells us about the relationship between Nifty and Equity returns. Highly Positive (+) sign direct relationship which means if market goes up share price goes up because (b=1.182).
Also if X is 0 then Y will have an inverse change by -0.1651 units.
Conclusion: – As Beta is more than 1 it is good for investment, if Beta is less than 1 it is not good for investment if Nifty rises.
Report By: -Uddhav Prashant Salvi -021230022264 -OSCM Batch