Author: Payal Nimbalkar
Introduction:
Paisalo Digital Limited is an Indian financial services company focused on providing lending solutions to individuals and small businesses, especially in rural areas. Using technology, they offer various loans like personal, business, and two-wheeler loans to promote financial inclusion. The company emphasizes responsible lending and tailors its products to meet customer needs. Founded for financial inclusion, Paisalo Digital aims to bridge the credit gap with accessible services.
Objective: To calculate Beta of “Paisalo Digital Limited” and observe its significance.
View & Review :
Sunil Agarwal :Paisalo digital limited ceo Formerly known as S.E Investments Limited, Paisalo Digital Limited’s singular aim is to provide financial solutions like term loans and working capital to entrepreneurs and making their dreams a reality. The company currently operates in Delhi NCR, Haryana, Uttar Pradesh, Madhya Pradesh, Rajasthan, Gujarat, and Maharashtra. The ‘app only’ business model of Paisalo Digital Limited is a conscious step towards joining the digital revolution in India. This model will ensure a greater reach, and levels of efficiency and simplicity that will envisage resounding success for the company. The philosophy of the company is deeply rooted in the Indian tradition of ‘business with a social conscience’ and towards the attainment of this Paisalo Digital Limited operates.
Anoop Krishna is Executive Director & Executive Director-Strategy at Paisalo Digital Ltd.In the past he occupied the position of Chief GM-Northern & Eastern Regions at State Bank of India.
Data Collection:
Data for this period has been downloaded from NSE site and weekly closing prices were found out then quickly returns of Nifty and weekly return of Paisalo Digital Limited company were calculated, Nifty returns were taken as X and equity returns were taken as Y. Y was regrest on X.
Data Analysis:
Equation “Y= 31.87157-(-1.603138)(X)”
(tstat= -1.44222)
n = 50, R2 =0.0415, F =2.0800
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Paisalo Digital Limited (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 -1.603138, “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. -1.44222 is higher than tabulated t(t0.5,49DF=1.677) so reject H0 and accept H1. R2 is 0.0415 means of y is explained by x. As the calculated value of F = 2.0800 is less than the tabulated F (F 0.05,1DF,49DF) = 4.038 , the overall model is not statistically significant at the 5% level.
So overall the model is statistically not significant at the 5% level.
Conclusion:
If beta is less than 1 it is good for “short term” investment. Nifty is at low we can invest.