Topic Name: Relationship of Motilal Oswal financial services LTD. with NIFTY.
Author: Mrunalini P Redkar, Roll No. : 50 div: A
Introduction: Motilal Oswal Financial Services Ltd is a prominent Indian financial conglomerate with a strong presence in various sectors, including asset management, investment banking, equity and commodity trading, and wealth management. Founded in 1987, the company is known for its commitment to providing innovative financial solutions, research-driven investment strategies, and personalized services to a diverse range of clients. With a focus on transparency, ethical practices, and long-term value creation, Motilal Oswal has emerged as a trusted name in India’s financial landscape.
Objective: To calculate the beta of Motilal Oswal financial services LTD. and find out its significance.
Views & reviews: In the Director’s message of Motilal Oswal Financial Services Ltd:
- The company highlights the resilience of the Indian economy with a 7.2% GDP growth in FY2023, amidst global economic uncertainties due to geopolitical tensions and supply chain disruptions.
- The RBI’s proactive measures curbed inflation, creating a more stable economic environment. The company achieved milestones with operating revenue of ₹4,319 crore and a consolidated ROE of 18%.
- Notably, the broking business thrived, adding 6.5 lakh clients and recording the highest-ever broking revenues.
- The wealth management business saw a growth of 51% YoY. The housing finance business reported a record PAT of ₹136 crore, with a 44% YoY growth.
- The company’s dedication, adaptability, and resilience positioned it for future growth and transformation.
Data Collection: Data for the period of 01/07/2022 to 30/06/2023 has been downloaded from the NSE India site & weekly closing prices are found.
Data Analysis: – Equation “Y= 0.107339935−0.431681815⋅X”
(tstat = -0.931460634)
n = 50, R2 = 0.017754475, F = 0.867618913
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Motilal Oswal Financial Services Ltd. (y). Negative sign explains if the price rises, the demand fall and vice-versa. If x rises by 1 unit demand will fall by 0.43 units. T state for b is -0.931460634 which means b is R2 is 0.0177 means 1.77% of y is explained by x, balance 98.23 % is the error due to the variables which are not in the model. As the calculated value of F = 0.867618913 is less than the tabulated F (F 0.05,1DF,48DF) = 4.043, the overall model is statistically not significant at the 5% level.
So overall the model is not statistically significant at the 5% level.
Conclusion:
Beta is 0.431681815, which is less than 1, so the share is good for the Long term.
