Title: – Relationship of Salzer Electronic with Nifty 50
Author: – Saurav Bhandari (MMS First Year, Roll no. 0222068) Kohinoor Business School, Kurla.
Introduction:
Established 1985 with German collaboration for Cam Operated Rotary Switches, We are largest Rotary switch manufacturers and suppliers in India having more than 40% market share and serving to all segments in India. We manufacture Rotary switches in India & supply globally. Our Rotary Switches manufacturers are well accepted across all the continents.We have the complete range of Cam Operated Rotary switches from 6 Amps to 400 Amps and Rotary switch suppliers to Indian Railways.
Objective:
To Calculate the Beta of Salzer Electronic and find out its significance.
Views and Reviews
Mr. D Rajesh Kumar, Joint Managing Director, Salzer Electronics Ltd
“We have been able to showcase a healthy growth of over 16% this quarter despite the numerous macro-economic headwinds. Although we witnessed some teething problems with implementation of the very ambitious GST regime, we are confident that it will have very positive impact in the long term. Other than a slight decline in our Industrial Switchgear segment, all other business segments of Wires & Cables, Building Segment and Energy Management have shown robust growth. The market conditions in India as well as USA and Europe continue being very challenging, despite this we have been able to sustain and achieve this growth because of our long term association with large OEM’s. Looking ahead, we expect to see a pickup in demand especially because of our association with large and reputed companies like GE, Schneider, Honeywell, ABB & Siemens. We are confident that with our products of international standards, consistency in quality, timely delivery and some revival in the industry we will be able to achieve much healthier growth. We believe streamlining of GST will also prove to be advantageous to organised players like Salzer. In our Energy Management Business revenues have been able to book revenues from the recently implemented EESL project apart from the Operations & Maintenance of the earlier project. This business has a higher margin as compared to other business segments and will continue to give us Operations & Maintenance revenues in the coming quarters. Going forward, we will continue to focus on adding new, niche and high margin products, enter new geographies and offer total and customised electrical solutions to our existing and new customers. To aid to this we are constantly on the lookout for any new opportunities for technical associations to strengthen the base for our product offerings.”
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 Salzer Electronic(i.e. Y) were calculated.
Data Analysis: –Y^ = 1.2078 + 1.3294X
(1.9837)
N = 45
R square = 0.0838
F = 3.9353
The above equation shows the relationship between Nifty 50 (X) and SalzerElectronic(Y). The positive sign means positive relationship meaning if X rises Y also rises and vice versa. If Nifty 50 (X) rises by 1 unit Salzer Electronic(Y) rise by 1.3294 unit. N means there are 45 observation. T stat for b is 1.9837, is less than tabulated t (t.05,48df = 2.01063) therefor t stat for b is not statistically significant @5% level. R square is 0.0838 which means 8.3% of Y is explained by X balance 91.7% is error due to variables which are not in model. F is 3.9353 which is less than table value (F.05,1df,48df = 4.04265) so overall the model is statistically not significant at 5% level.
Conclusion:
As, Beta (b) is more than 1, which implies Salzer Electronic good for short term investment.