Relationship of Shree Cements with Nifty 50

Shree Cements

 

Topic Name: Relationship of Shree Cements with Nifty 50

 

Author: Sahil Rasal

                 (MMS Batch, Roll No: 48)

 

Introduction:

Leading cement manufacturer Shree Cements is well-known for its substantial position in the cement sector. The business was founded in 1979, and its headquarters are in Kolkata, India. Shree Cements has developed a reputation for its effective operations, superior goods, and environmentally friendly practices. The business, which is among the biggest cement makers in India, has a number of strategically placed cement factories throughout the nation.

 

Objective: To calculate beta of Shree Cement and find out its significance.

 

Views & Reviews:

Managing Director

  1. M. Bangur
  • We have been growing at a brisk pace setting footprints in newer markets, embracing newer technologies and reaching newer horizons. As we expand our sphere of working, each attempt brings with it hitherto unseen challenges in terms of customers, environment, people and resources. We are prepared as we are practicing daily. Each one of our team, when he goes out to work, he is not merely doing his daily task; he is taking the small step towards the giant leap. At Shree, we realise the importance of getting the entire equation right. Each and every member is inclined towards harnessing abilities as a daily routine to keep ticking the equation to a value, higher than yesterday. In fact, they work towards converting the equation where Hard work remains the only Talent we have!!
  • Pushing our limits to reimagine our future, we are growing with a renewed vigour while taking our sustainability and business commitments to greater heights. The purpose of Shree’s existence is about shared values. Our spirit of sharing and mutual growth is reflected through relationships we have nurtured with our stakeholders throughout our journey.

Looking forward to a year of well-being, collective growth, and success.

 

Data Collection:

The data from 01-07-2022 to 30-06-2023 has been download from NSE site, then Friday’s closing price was sorted and weekly returns of Nifty (i.e. X) and Shree Cements (i.e. Y) were calculated.

 

Data Analysis:

Equation “Y= -0.2696 + -0.1631 (X)”

                         (tstat= -0.4005)

                        n = 50, R2 = 0.0033, F = 0.1604

 

The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Shree Cements 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 -0.0204, “n” means there are 50 observations. The t-stat for b is -0.4005, which means b is statistically significant at 5% level.R2 is 0.0033 means 0.34% of y is explained by x, balance 99.66% is error due to the variables which are not in model. As the calculated value of  F = 0.1604  is more than the tabulated F(F 0.05,1DF,48DF)=4.043, 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 -0.0204 which is less than 1, the share is good for long term.

 

 

Leave a comment