Title: – Relationship of Piramal Enterprise with Nifty 50
Author: – Pravin Sunil More (MMS First Year, Roll no. 0222099)
Kohinoor Business School, Kurla.
Introduction: – Piramal Enterprises Limited (PEL) is an Indian multinational conglomerate headquartered in Mumbai, Maharashtra. The company was founded in 1984 by Ajay Piramal, and it has since grown to become a major player in the healthcare, financial services, and real estate sectors. PEL’s healthcare business includes Piramal Pharma, which is one of India’s leading pharmaceutical companies. Piramal Capital & Housing Finance is the company’s financial services arm, and it provides a wide range of financial products and services to individuals and businesses. Piramal Realty is the company’s real estate business, and it develops and manages commercial and residential properties. PEL is a publicly traded company, and its shares are listed on the Bombay Stock Exchange and the National Stock Exchange of India. The company’s current chairman and managing director is Ajay Piramal.
Objective: – To Calculate the Piramal Enterprise and find out its significance.
Views and Reviews: –
Anand Kripalu Vice President said that he is “very bullish” on Piramal’s future. He cited the company’s strong financial position, its diversified business portfolio, and its focus on innovation as reasons for his optimism. He also praised Piramal’s management team. He said that the team is “very experienced and capable” and that they have a “proven track record of success.” Overall, Mr. Kripalu has a very positive view of Piramal Enterprises. He believes that the company is well-managed, diversified, and well-positioned for future growth. He believes that Piramal has a strong track record of innovation. For example, the company was the first to launch a generic version of the cancer drug Gleevec in India. He is impressed with Piramal’s focus on research and development. The company invests heavily in R&D, and it has a number of successful drug development programs in its pipeline. He is confident in Piramal’s management team. He believes that the team is experienced, capable, and has a proven track record of success.
Swati Piramal Vice-Chairperson of Piramal Group, a global business conglomerate with diverse interests in pharmaceuticals, financial services and real estate. Piramal is amongst India’s leading scientists and industrialists whose contributions to innovations, new medicines and public health services have touched many lives. Over the past three decades, Piramal’s efforts towards providing cost-effective and science-based healthcare globally have significantly contributed in shaping the Indian pharmaceutical industry. She founded the Gopikrishna Piramal Memorial Hospital in Mumbai and was instrumental in launching several pan-India public health campaigns against chronic diseases. Piramal has authored several books on nutrition and health, including one for patients with renal disease and related disorders, and has written public policy papers on topics such as patent protection, intellectual property and data protection. Her strong influence on important public policies and governance on healthcare and related issues, is widely recognized and has led to major policy changes that have helped reduce the burden of disease.
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 Piramal Enterprise (i.e. Y) were calculated.
Data Analysis: – Equation “Y=0.2012-2.1271(X)”
(tstat = 2.9275)
n = 50, R2 = 0.1515, F = 8.57
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Piramal Enterprise (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 2.1271, “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. 2.9275 is higher than tabulated t(t0.5,49DF=1.677) so reject H0 and accept H1. R2 is 0.1515 means 15.15% of y is explained by x. As the calculated value of F =8.57 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, Piramal Enterprise share is good for long term investment.
References
ANI. (2023). NewsVoir. ANI, 2. Retrieved from https://www.aninews.in/news/business/business/dominos-makes-independence-day-extra-delightful-launches-freedom-feast-offer20230811114412/
Dutta, S. (2023). Hong’s Kitchen Introduces a Flavourful Journey with ‘Taste Tibet’ food. Hong’s Kitchen, 2. Retrieved from https://www.Piramal enterprise .com/Uploads/Files/748jf-Hong-s-Kitchen.pdf