Author: – Arya Jayaprakash
Introduction: – Ambuja Cements was set up in 1986. The company had entered a strategic partnership with Holcim, the second-largest cement manufacturer in the world from 2006. Holcim had, in January, bought a 14.8 percent promoters’ stake in the GACL for INR 21.4 billion.
Currently Holcim holds 61.62% of the shares in Ambuja Cements. On 14 April 2022, Holcim announced that it would exit from the Indian market after 17 years of operations as part of a strategy to focus on core markets and listed its stakes in Ambuja Cements and ACC for sale. On May 15, 2022, Adani Group acquired Holcim’s stake in Ambuja Cements and ACC for US$10.5 billion.
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, weekly returns were found out of Nifty was considered as” X” and weekly report of equity were considered as “Y”.
Data Analysis: – Demand Y= 0.6138+0.9138 Nifty ret X+ e
(t-sat= 3.174)
N=51, R^2= 0.170, F=10.076
t-sat of b is shown in bracket is (3.174).
The P-value for this is 0.0026 which is less than 0.05 meaning ‘b’ is statistically significant at 5% level.
N = 51
R^2 = 0.017 which means 17% of Y is explained by X and balanced 83% is unexplained i.e., error.
F= 0.851
P value for this is 0.0026 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.
Conclusion: – As Beta is less than 5% it is good for investment, if Beta is more than 5% it is not good for investment if Nifty rises.
Report By: –
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