Title: – Relationship of KPIT TECHNOLOGIES LIMITED with Nifty 50

Author: -kunal Prakash kotgire (MMS First Year, Roll no. 0222093)

                 Kohinoor Business School, Kurla.

Introduction: – KPIT Technologies was founded in 1990 by Ravi Pandit and Kishor Patil. The company was originally called KPIT Infosystems. It was renamed KPIT Cummins Infosystems Ltd in 2002 after merging with the IT department of Cummins. In 2013, the company changed its name to KPIT Technologies Limited.

The current owners of KPIT Technologies are:

Ravi Pandit – Chairman and Group CEO

Kishor Patil – CEO and MD

Birlasoft Limited – 40.3%

Public shareholders – 59.7%

KPIT Technologies is a publicly traded company listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) of India

Objective: – To Calculate the Beta of and find out its significance.

Views and Reviews: –

1. B. (Ravi) Pandit Chairman Going forward, we believe that the future of mobility is already present, albeit unevenly distributed. At KPIT, we are excited to be part of this evolution and embrace the opportunities it brings. With our robust operating and financial positions, a strategic roadmap and a highly engaged team, we are well on track for FY 2023-24 and beyond. We will keep unlocking further opportunities by leveraging our deep domain expertise and software competence. On behalf of the team at KPIT, I want to thank our shareholders for their trust and cooperation throughout our journey. Your belief in our Company helps make it possible for us to do what we do best. I also want to extend my gratitude to our Board of Directors, whose guidance, passion, energy and strength propel us forward.

Kishor Patil, CEO & Managing Director We begin FY24 with the start of some key long-term engagements and a growing pipeline of programs. We aim to focus on the alignment and collaboration of practices to address client challenges with broader technological interventions. We are also committed to continuously build a robust competency framework leading to flawless execution of programs while we onboard the right talent across different pockets of the world. In closing, we would like to thank our clients for their faith in our capabilities, our colleagues for going above and beyond their professional responsibilities and our shareholders and analysts for keeping us on the right track to achieve excellence.

Data Collections: – Data is taken from 01-06-2022 to 31-07-2023. It has been downloaded from the NSE site, then Friday’s closing price was sorted and weekly returns of Nifty (i.e. X) and KPIT TECHNOLOGIES (i.e. Y) were calculated.

 

Data Analysis: – Equation “Y=2.0375-0.8670(X)”

                           (t_stat = 2.0450)

                            n = 50, R² = 0.0801, F = 4.1819

The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of KPIT TECHNOLOGIES (y) 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 0.8670, “n” means there are 50 observations, and figures in brackets are t_stat for “b”, so “b” is not as Calculated t_stat for b i.e. 2.0450 is higher than tabulated t(t0.5,49DF=1.677) so reject H0 and accept H1. R² is 0.0801 means 8.01% of y is explained by x. As the calculated value of F =4.1819 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, KPIT TECHNOLOGIES share is good for long term investment.

 

References

https://www.bseindia.com/xml-data/corpfiling/AttachLive/1e8d9403-e472-4763-bfcf-c8c528083557.pdf