Relationship of Solar Industries with Nifty
Author: Sandeep Namdev Chaure
Introduction:
Solar Industries is a renowned explosives manufacturer with a storied history and impressive
achievements. Founded in 1987, the company has emerged as a global leader in the
explosives and blasting solutions industry. With a commitment to innovation, safety, and
sustainability, Solar Industries has pioneered cutting-edge technologies for mining,
construction, and defence applications. Their relentless pursuit of excellence has garnered
numerous accolades, including ISO certifications for quality and environmental management.
Continually expanding their global footprint, Solar Industries remains dedicated to advancing
safety standards and enhancing the efficiency of explosive solutions, making them an
indispensable partner in various critical sectors worldwide.
Objective:
To calculate beta of Solar Industries and finding out its significance.
Views and reviews:
Mr. Satyanarayan Nandlal Nuwal, Chairman and Chief Executive Director.
1. At Solar, we believe ‘a healthy and safe worker is a productive worker’. We,
therefore, place great emphasis on workplace safety and employee wellness. We
continue to provide safety training across our sites and regularly conduct safety
awareness programmes. At Solar, our reliance on advanced technology enables us to
take timely action and mitigate risks. Our Safety, Health and Environment
management policies are based on ISO 14001/2015 and OHSAS/800/2007 principles,
complemented by stringent regulatory standards.
2. The Indian government is seeking to strengthen an indigenous defence market. We
believe that the emphasis on the Defence sector opens up numerous opportunities for
us. To make India ‘Atmanirbhar’ in defence procurement, the Government has listed
over Four thousand items that have to be procured from the domestic market instead
of relying on imports.
Data collection:
Data for This Period (1/7/2022 to 30/6/2023) has been downloaded from NSE India Site and
Weekly Closing Prices Where Found out Then Weekly Returns of Nifty a Weekly Return of
Solar Industries were Calculated (Nifty Returns Taken as X and Equity Return Taken As Y)
Y Was Regress On X.
Data analysis:
Equation y=-0.3052+0.6448X+ e (Solar Industries = 0.3052+0.6448 Nifty 50 + e)
T stat for b = -0.5327
R 2 =0.063057932
F= 3.230488662
The above equation do not show any relationship between nifty 50 (X) and nestle India (Y).
Nestle India runs on own fundamentals the t stat for b is -0.5327 not statistically significant at
5 % level, R 2 is 0.0630 which means 6.30% Y is explained by X. 93.7% is the error in model.
3.2304 Which is less than the table value which means overall them model is not statistically
significant at 5% level.
Conclusion:
Because the Beta Of Solar Industries Is < 1 So The Company Is Good For Long Term
Investment.
