Relationship of Suzlon Energy Ltd with nifty 50
Author: Saandaysh Sharrma
Section: A
Roll No.: 55
Introduction:
Suzlon Energy Ltd is a renowned Indian multinational company specializing in renewable energy solutions, primarily wind power. Established in 1995, Suzlon has emerged as a global leader in the wind energy sector, contributing significantly to India’s and the world’s transition towards sustainable and clean energy sources. With its headquarters in Pune, India, Suzlon has a diverse portfolio encompassing the design, development, manufacturing, and servicing of wind turbines and related components. The company’s innovative technologies, commitment to environmental stewardship, and extensive operational presence across several countries have solidified its position as a key player in the renewable energy landscape, striving to address the pressing challenges of climate change and energy security.
Objective:
To calculate beta of Suzlon Energy Ltd and observe its significance.
Views and reviews:
Tulsi R. Tanti Chairman and Managing Director, Suzlon Group
- “The crises of the recent past have triggered a heightened acceptance of ‘Climate Emergency’ and has put renewable energy firmly at the centre of how the world is looking at its future, mainly in the area of global energy transition.”
- We, at the Suzlon Group, have always remained acquiescent to the ever-evolving environment and ecosystems with agility and sustainability. The growing acceptance of the need to cut carbon emissions has made the renewable energy sector more progressive and appealing. The global renewable energy installations in FY 21 hit a record high, despite the challenges posed by the COVID-19 pandemic. The renewable energy sector, excluding the large hydro projects, witnessed massive global investments to the tune of US $303.5 billion for low-carbon energy transition. This is one of the highest investments across industry sectors during these times
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 Suzlon Energy Ltd were Calculated (Nifty Returns Taken as X and Equity Return Taken As Y) Y Was Regress On X.
Data analysis:
|
Equation Y=-0.80-1.09X+e |
(Suzlon Energy Ltd =-0.80-1.09Nifty 50 + e)
T stat for b = -1.47
R2 = 0.042
F= 2.186
The above equation do not show any relationship between nifty 50 (X) and Suzlon Energy Ltd Ltd (Y). Suzlon Energy Ltd runs on own fundamentals the t stat for b is -1.47 not statistically significant at 5 % level, R2is 0.042 which means 4.2% Y is explained by X. 95.80% is the error in model. 2.186 Which is less than the table value which means overall them model is not statistically significant at 5% level.
Conclusion: The Beta Of Suzlon Energy Ltd Is < 1 So The Company Is Good For Long Term Investment.