Title: – Relationship of Shyam Metalics & Energy Ltd with Nifty 50
Author: – SHIVAM INDRAJEET GUPTA (MMS First Year, Roll no. 0222177)
Kohinoor Business School, Kurla.
Introduction: We are a leading integrated metal producing company based in India mainly steel Industry in west bengal and steel industry in Odisha with a focus on Long Steel Products and Ferro Alloys. We have a consistent track record of delivering operating profitability, and since the commencement of our operations in Fiscal 2005, we have delivered a positive EBITDA in each of the Fiscals
Objective: – To Calculate the Beta of Shyam Metalics & Energy Ltd
and find out its significance.
Views and Reviews: –
Mahabir Prasad Agarwal Chairman Strong operational achievements were complemented by a robust financial performance that returned to the shareholders in form of dividend. This was made possible by the skill and commitment of our management and employees, who delivered the planned ramp-ups across our manufacturing units. Added, a disciplined capital allocation approach, underpinned by strong commodity prices, provided further strength to our performance. We celebrate a journey of continued resilience in the year gone by, coupled with optimism for a better future. As one of India’s largest ore to metal Company, we continue to create jobs, support our host communities and generate value along our entire supply chain. In midst of all:
Brij Bhushan Agarwal Vice-Chairman and Managing Director This fiscal year, Shyam Metalics, as an organisation, has been able to demonstrate what we can achieve by focusing on operational excellence, adopting capital prudence across the board, and leveraging our experienced and capable team. We have come a long way in the last four decades.
Data Collections: – Data is taken from 01-06-2022 to 31-07-2023. It has been downloaded from the NSE site, then Friday’s closing price was sorted and weekly returns of Nifty (i.e. X) and (i.e. Y) were calculated.
Data Analysis: – Equation “Y=1.0432-1.0969(X)”
(tstat = 3.3088)
n = 50, R2 = 0.1857, F = 10.9482
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Shyam Metalics & Energy Ltd (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 1.0969, “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. 3.3088 is higher than tabulated t(t0.5,49DF=1.677) so reject H0 and accept H1. R2 is 0.1857 means 18.57% of y is explained by x. As the calculated value of F =10.9482 is more than the tabulated F (F 0.05,1DF,49DF) = 4.038, the overall model is statistically significant at the 5% level.
So overall the model is statistically significant at the 5% level.
Conclusion:
If b<1, Shyam Metalics & Energy Ltd share is good for long term investment.
References
https://www.bseindia.com/bseplus/AnnualReport/543299/75193543299.pdf
https://www.bseindia.com/bseplus/AnnualReport/543299/75193543299.pdf