Relationship of Symphony with Nifty
Author: Shivansh Gupta
Introduction:
Symphony, a prominent Indian Multi-National Company operating in over 60 countries, stands as the world’s largest air-cooler manufacturer. Its legacy encompasses groundbreaking inventions, innovative strides, and unwavering commitment to energy efficiency and environmental stewardship. Across generations, Symphony has been a pioneer in delivering comfort cooling, holding an undisputed market leadership in residential, industrial, and commercial sectors. Since its inception in 1988 in Gujarat, India, Symphony Limited has been instrumental in introducing evaporative air-cooling on a global scale, reshaping the industry landscape. By revolutionizing an unorganized sector, the company has consistently set remarkable standards, redefining the essence of air cooling.
Objective:
To calculate beta of Symphony and observe its significance.
Views and reviews:
Chairman and Managing Director’s statement
- If I had to summaries Symphony’s FY2022-23 story in a sentence, it would be this: The Company reported higher revenues but lower profits when compared to the pre-Covid period. This divergence will surprise those accustomed to the extrapolation that a higher top line should translate into a superior bottom line on account of related economies (brand, distribution, procurement and overheads coverage). This time around, not only were we able to capitalise on these economies, but allowed cost increases to eat into our buffers
- It can be tedious for demanding shareholders to read yet another overview of the Company’s performance with the words ‘We could have done better, but…’ I have no option. For the second year running, Symphony Limited was affected by the same factor and at the same time of the financial year, resulting in much the same outcome. The coincidence and outcomes were unprecedented, which translated into lower revenues, compared to the pre Covid level.
Data collection:
Data for This Period (1/7/2022 to 30/6/2023) has been downloaded from NSE India Site and Weekly Closing Prices Where Found out Then Weekly Returns of Nifty a Weekly Return of Symphony were Calculated (Nifty Returns Taken as X and Equity Return Taken As Y) Y Was Regress On X.
Data analysis:
|
Equation y= 0.044+0.220x+e |
(Symphony =0.044+0.220 Nifty 50 + e)
T stat for b = 0.700
R2 = 0.010
F= 0.4903
The above equation do not show any relationship between nifty 50 (X) and Symphony (Y). Symphony runs on own fundamentals the t stat for b is 0.700 not statistically significant at 5 % level, R2is 0.010 which means 1% Y is explained by X. 99% is the error in model. 0.4903 Which is less than the table value which means overall them model is not statistically significant at 5% level.
Conclusion:
The Beta Of The Symphony Is < 1 So The Company Is Good For Long Term Investment.