Ashok Leyland
Topic Name: Relationship of Ashok Leyland with Nifty 50
Author: Aditi Bhoir
(MMS Batch, Roll No: 06)
Introduction:
A well-known Indian automaker with a focus on the creation of commercial vehicles is Ashok Leyland. The corporation was founded in 1948, and Chennai, India serves as its corporate headquarters. It is one of India’s top producers of trucks, buses, and other commercial vehicles, and it also conducts business abroad in a number of areas. The design and production of a wide variety of vehicles, including as trucks, buses, light commercial vehicles, and defense vehicles, are among Ashok Leyland’s specialties.
Objective: To calculated beta of Ashok Leyland and find out its significance.
Views & Reviews:
Chairman
Dheeraj Gopichand Hinduja
- We have taken an early lead in adopting the Environment, Social and Governance (ESG) targets in our plans and operations. Ten focus areas covering various aspects of ESG will be pursued as relevant to our industry and in line with UN SDG goals. Our sustainability initiatives focus on net zero carbon footprint and positive water balance. Our CSR programme “Road to School” covers today 969 schools with about 100,000 children benefitting from this initiative. To recall, this initiative is focusing on improving the quality of education, health, nutrition, social and civic awareness amongst children from Government schools. Our target is to reach 1 million students as soon as possible.
- You may recall we had a tagline Aap Ki Jeet Hamari Jeet for about 10 years. It symbolized a mission and a role for us as relevant then. With the changed business dynamics and our heightened self-belief together with our aspirational vision, Ashok Leyland management felt that the tag line needs to be renewed and be reflective of our current outlook. Also, this is our 75th year Anniversary and an occasion befitting a suitable tagline that galvanises the organisation towards a limitless horizon. On that basis, Koi Manzil Door Nahin (No Dream too far) has been chosen, which will guide and power all our strategies and actions from now on.
Data Collection:
The data for 01-07-2022 to 30-06-2023 has been download from NSE site and weekly closing prices were found out and weekly returns of nifty and weekly returns of Ashok Leyland were calculated. Nifty returns were taken as X and Nifty returns were taken as Y. Y was regressed on X and then data analysis.
Data Analysis:
Equation “Y= (-0.1538) + (0.0301) X”
(tstat= 0.0920)
n = 50, R2 =0.0001, F = 0.0084
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Ashok Leyland 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 (-0.0085), “n” means there are 50 observations. The t-stat for b is 0.0920, which means b is statistically significant at 5% level.R2 is 0.0001 means 0.081% of y is explained by x, balance 99.19% is error due to the variables which are not in model. As the calculated value of F =0.0084 is more than the tabulated F(F 0.05,1DF,47DF)=4.047, 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 -0.0085 which is less than 1, the share is good for long term.