Relationship of Apollo Pipes Ltd Shares with nifty 50
Author: Aniket Dupargude (MMS First year, Roll no. 0222012)
Introduction:
Apollo Pipes Ltd is an Indian company that manufactures and distributes a variety of plastic pipes for applications such as agriculture, plumbing, infrastructure, and more. Established in 1985, the company produces pipes for irrigation, plumbing, electrical conduit, and various industrial uses. They likely prioritize quality, innovation, and sustainability in their operations. With a broad product range and a strong market presence in India, Apollo Pipes Ltd is a significant player in the plastic pipe industry. For the latest information, refer to their official website or recent industry reports.
Objective:
To calculate beta of Apollo Pipes Ltd and observe its significance.
Views and reviews:
Sanjay Gupta Chairman
We enhanced capacities at all our units through brownfield expansions. This augmented our capability to increase volumes of existing products as well as add new products in that Plant. For example, we added the water tank manufacturing capability at Tumkur and Sikandrabad. We have doubled our fittings capacity at Dadri. These investments will increase volumes and widen our market base from our diverse product categories.
Data collection:
Data for This Period (1/7/2022 to 30/6/2023) has been downloaded from NSE India Site and Weekly Closing Prices Were Found out Then Weekly Returns of Nifty a Weekly Return of Apollo Pipes Ltdwere Calculated (Nifty Returns Taken as X and Equity Return Taken As Y) Y Was Regress On X.
Data analysis:
|
Equation y=0.9027+0.6279x+e |
(Apollo Pipes Ltd =0.9027+0.6279xNifty 50+ e)
T stat for b = 1.7395
R2 = 0.0593
F=3.0260
The above equation do not show any relationship between nifty 50 (X) andApollo Pipes Ltd (Y).Apollo Pipes Ltd runs on own fundamentals the t stat for b is1.739555not statistically significant at 5 % level, R2is 0.05930which means 5.9% Y is explained by X. 94.07% is the error in model.3.0260Which is less than the table value which means overall them model is not statistically significant at 5% level.
Conclusion:
The Beta Of The Apollo Pipes Ltd Is < 1 So The Company Is Good For Long Term Investment.