Title: – Relationship of Apollo Hospital with Nifty 50
Author: – Ankita Rajesh Dalal Division “B” Roll No. 72
Kohinoor Business School, Kurla.
Introduction: – Dr. Prathap C. Reddy created Apollo Hospitals, a renowned healthcare organization in India, in 1983. It has developed into the world’s top healthcare provider with a goal of providing top-notch medical services. Modern hospitals and clinics that provide a wide range of specialized medical services make up the network. Apollo Hospitals, renowned for medical tourism, blends cutting-edge technology, research, and top-notch care across several disciplines. With a patient-centric philosophy at its foundation, it is a pioneer in bringing cutting-edge medical procedures to India. Apollo Hospitals continues to influence and improve the healthcare sector via its dedication to excellence and innovation.
Objective: – To Calculate Beta for Apollo Hospitals and find out its significance.
Views and Reviews: –
Dr. Prathap C. Reddy, the Apollo Hospitals Group’s chairman shared his insights on Apollo Hospitals by stating that the majority of patients in the 1980s had to travel abroad for complicated surgery, Dr. Reddy takes delight in this. Every treatment can now be performed within the nation and for a significantly reduced price. Dr. Reddy tells out that liver transplants and heart procedures can both be performed in our nation for as little as a tenth of the price. The goal was to create teams of skilled medical professionals who would adhere strictly to SOPs while yet operating at cheaper costs.
Dr. Preetha Reddy, the Executive Vice Chairperson of Apollo Hospitals Enterprise Limited and a member of its founding family, is widely acknowledged for her exceptional contributions to making high-quality healthcare accessible to millions and for her dedicated support to various entities and industry bodies, all working towards the betterment of India.
Data Collections: – Data is taken from 01-06-2022 to 30-07-2023. It has been downloaded from the NSE site, then Friday’s closing price was sorted and weekly returns of Nifty (i.e. X) and Apollo Hospital (i.e. Y) were calculated.
Data Analysis: – Equation “^Y= -0.3395-0.5674 (X)”
(tstat = -2.0603)
n = 50, R2 = 0.0812, F = 4.2446
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Apollo Hospital (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 0.5674, “n” means there are 50 observations, and figures in brackets are t stat for “b” is statistically significant at 5% level, so “b” is not as Calculated t stat for b i.e. 2.5422 is higher than tabulated t(t0.5,49DF=1.6766) so reject H0 and accept H1. R2 is 0.0812 means 8.12% of y is explained by x balance 91.88% is error due to the variables which are not in the model. As the calculated value of F=4.2446 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:
The Beta value for Apollo Hospital is 0.0448, which is <1, Apollo Hospital share is good for long term investment.
Reference:
https://www.apollohospitals.com