Topic Name: Relationship of Sheetal Cool Products with NIFTY 50
Author: Smeet Ajmera
Roll No. : 66
Introduction
Sheetal Cool Products Limited started as a small paan and cold drinks shop in Amreli, Gujarat state by Lt. Jagdishbhai Dakubhai Bhuva along with his brothers.After the demolition of their paan shop in the year 1987 by the municipal authorities, they ventured into the production of milk and buttermilk. In 1992, the family began its operations from a unit in Gujarat Industrial Development Corporation (GIDC) and launched the production of ice cream in the year 1994. In the year 2000, the company was launched as a sole proprietorship under the name Shree Shital Industries, which was later converted into a partnership firm in 2013.The company was then converted into a private limited company with the name of Sheetal Cool Products Pvt. Ltd., and finally went public in the year 2017, under the name Sheetal Cool Products Limited and was listed at the Bombay Stock Exchange.[3] Today, the company has a network of more than 200 distributors with a retail presence in the states of Gujarat, Maharashtra, and Rajasthan. Bhupatbhai D.Bhuva, Dinesh Kumar D.Bhuva, Sanjay D.Bhuva, Naynaben B.Bhuva, Kajalben D.Bhuva, and Asmitaben S.Bhuva have been listed as the promoters of the company.
Objective: To calculate beta of Sheetal Cool Products and find out its significance.
Views & reviews: Bhupatbhai D. Bhuva
- Based on the framework of internal financial controls and compliance systems established and maintained by the Company, the work performed by the internal, statutory and secretarial auditors and external consultants, PARTICILARS Revenue from Operations EBITDA Less: Depreciation Finance Costs Profit / (Loss) before tax Tax expenses Profit /(Loss) after tax 32676.83 4064.99 1090.29 491.94 2482.76 639.92 1842.84 23188.58 2959.67 1501.14 626.98 831.55 221.99 609.56 Year Ended 31.03.2022 Year Ended 31.03.2021 36 Sheetal Cool Products Limited | Annual Report 2021-22 including the audit of internal financial controls over financial reporting by the statutory auditors and the reviews performed by management and the relevant board committees, including the audit committee, the Board is of the opinion that the Company’s internal financial controls were adequate and effective during FY 2021-22.
- The First term of Mr. Ajaykumar Mandanka and Mrs. Kiranben Gajera as an Independent Directors of the Company are expiring on September 03, 2022. After receiving recommendation from the Nomination and Remuneration Committee the B o a r d o f D ir e c t o r s h a d a p p r o v e d t h e reappointment of both Directors for second term of five years at its meeting held on August 25, 2022 subject to approval of shareholder of the Company. The relevant details of the said Directors are given in the Notes/Annexures to the Notice of the AGM.
Data Analysis: – Equation “Y= 1.033+1.125(X)”
(tstat = 1.732)
n = 50, R2 = 0.100, F = 3.001
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of RBL Bank LTD. (y) the positive sign means a negative relationship meaning if “x” rises “y” rises and vice versa. If “x” rises by 1 unit, “y” rises by 1.12 unit, “n” means there are 50 observations. The t-stat for b is 1.732, which means b is statistically significant at 5% level. R2 is 0.100 means 10% of y is explained by x, balance 90% is error due to the variables which are not in model. As the calculated value of F =3.001 is more than the tabulated F (F 0.05,1DF,28DF) = 4.210, the overall model is statistically significant at the 5% level.
So overall the model is statistically significant at the 5% level.
Conclusion:
As Beta is 1.1255 which is more than 1, the share is good for short term.