Relationship of Vaishali pharma ltd with Nifty
Author: Vishwas Jadhav
Introduction: Vaishali Pharma Ltd is a pharmaceutical company based in India. They are involved in the manufacturing and distribution of pharmaceutical products, including generic medicines and other healthcare-related products.
Objective: To calculate Beta value of Ramco industries Ltd and find out its significance.
Views and Reviews: Atul Vasani, Managing Director, Vaishali Pharma
commented on the occasion, when Vaishali Pharma Receives Rs 600 Cr Order from Overseas Buyers, “We are happy to share the news of receiving this valuable order, This order is subject to initial advance payment as per the agreed terms of the contract and this order will be executed within 6 to 8 months. As per our Company’s policy we have done the Due diligence and respective contracts with the overseas Company. We have discussed various prospects with the company for the long term relations and also we look forward to achieve more orders from them.”
Data Collection: Data for the period has been downloaded from this site. Then Friday closing data were find out, weekly returns of Nifty is ‘X’ and weekly returns of Company is ‘Y’.
Data analysis: Equation “Y=-1.07-0.212(X)”
(tstat = 0.304)
n = 50, R^2 = 0.0019, F = 0.0928
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Vaishali Pharma Ltd (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 0.212 units, “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. 0.304 is lower than tabulated t(t0.5,49DF=2.013) so accept H0 and reject H1. R2 is 0.0019 means 0.1% of y is explained by x. As the calculated value of F = 0.092 is less than the tabulated F (F 0.05,1DF,49DF) = 3.982, the overall model is not statistically significant at the 5% level.
Conclusion: In this, b<1, which is 0.212, we can say the share is good for long term.
References
https://www.thehindubusinessline.com/companies/vaishali-pharma-bags-orders-worth-rs-600-crore-for-purchase-of-antibiotic-products/article66563361.ece