Title: – Relationship of Asian Paints Ltd. with Nifty 50
Author: – Ashwamegh Charandas Mundre (MMS First Year, Batch ‘A’ Roll no. 0222039)
Kohinoor Business School, Kurla.
Introduction:- Asian Paints Ltd is a leading multinational paint company headquartered in Mumbai, India. Established in 1942, the company has grown to become one of the largest and most well-known paint manufacturers not only in India but also globally. Asian Paints has played a pivotal role in transforming the paint industry in India and has expanded its presence to various international markets.
The company is renowned for its innovative and high-quality products, spanning a wide range of decorative and industrial paints, coatings, and related products. Asian Paints has consistently focused on research and development, enabling it to introduce a diverse array of paints that cater to various consumer needs and preferences.
Asian Paints has a strong commitment to sustainability and environmental responsibility. They have implemented eco-friendly practices in their manufacturing processes and have also been involved in various community and social initiatives, showcasing their dedication to corporate social responsibility.
Over the years, Asian Paints has received numerous accolades and awards for its excellence in business practices, innovation, and customer satisfaction. The company’s success can be attributed to its strong brand presence, quality products, efficient distribution network, and customer-centric approach.
With a presence in over 15 countries, Asian Paints has established itself as a global player in the paint industry. The company’s expansion and sustained growth reflect its adaptability, vision, and ability to cater to a diverse customer base while maintaining high standards of quality and service.
Objective :- To calculate the Beta of Asian Paints Ltd and find out its significance.
Views and Reviews :-
Deepak Satwalekar, EX Chairman of Asian Paints Ltd, commented on occasion “Asian Paints has always stood out as a brand that has been steadfast in upholding its ‘Customer first’ focus, always striving to better its own industry-beating benchmarks and thereby continuously bringing joy to its customers. This relentless pursuit has helped us deliver yet another year of robust performance despite the many challenges in the environment.
Amit Syngle, Managing Director & CEO of Asian Paints Ltd, The eventful last two years have bolstered our confidence in our ability to treat each and every challenge as an opportunity to evolve stronger in our journey to fulfil the aspirations of our customers. Our customer-first approach and innovation in products and services, is the source of this confidence and provides us the energy to continuously push the boundaries to deliver value that our customers cherish. As we look forward to this new financial year, the customer confidence appears strong despite the challenging inflation and geopolitical uncertainties. We foresee a strong consumer demand and with normal monsoons predicted we look forward to a good festival season ahead. We at Asian Paints continue to be committed to our stakeholders, igniting unlimited possibilities to take the Asian Paints journey beyond – Beyond the current realms and into a trajectory never seen before!
Data Collections: – Data is taken from 01-07-2022 to 30-06-2023. It has been downloaded from the NSE site, then Friday’s closing price was sorted and weekly returns of Nifty (i.e. X) and Asian Paints Ltd.(i.e. Y) were calculated.
Data Analysis: – Equation “Y=0.7681-0.8285(X)”
(tstat = 3.3277)
n = 50, R2 = 0.1875, F = 11.0736
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Asian Paints Ltd the negative sign means a negative relationship meaning if “x” rises “y” falls and vice versa. If “x” rises by 1 unit, “y” falls by 0.8285, “n” means there are 50 observations, and figures in brackets are tstat for “b”, so “b” is not as Calculated tstat for b i.e. 3.3277 is higher than tabulated t(t0.5,49DF=1.677) so reject H0 and accept H1. R2 is 0.1875 means 18.75% of y is explained by x. As the calculated value of F =11.0736 is more than the tabulated F (F 0.05,1DF,49DF) = 4.038, the overall model is statistically significant at the 5% level.
So overall the model is statistically significant at the 5% level.
Conclusion:
If b<1, Asian Paints Ltd share is good for long term investment.
References :
https://www.bseindia.com/bseplus/AnnualReport/500820/73104500820.pdf