Title: Relationship of Hero MotoCorp Ltd with Nifty
Author: Harshitha Poojary
Introduction: Hero MotoCorp Ltd is a global leader in motorcycle and scooter manufacturing, known for its innovation and quality. Established in 1984, it’s now the world’s largest two-wheeler manufacturer, headquartered in New Delhi, India. With a widespread presence and a focus on sustainable mobility, Hero MotoCorp remains a key player in the two-wheeler industry.
Objective: To calculate beta of Hero MotoCorp Limited and find out its significance.
Views & Reviews: Niranjan Gupta the CEO of Hero MotoCorp Ltd says it is time for Hero to ‘change gears’. He also says as part of Hero 2.0, the company will focus on premium products, with 2023 seeing the maximum number of launches in the premium category.
Data Collection: Data for this period has been downloaded from the NSE India site and only Friday closing price are taken. Has find weekly return “X” and weekly return “Y”.
Data Analysis: Y=0.0028+0.9073Xi
(3.9647)
N=50 , R²=0.24, F=15.71
The above equation shows the relationship between price(x) and demand (Y),The Positive sign means Positive relationship, meaning if X rises Y rises and vice versa. If X rises by one unit Y rises by 0.90 units. N means there are 50 observations. Figure in bracket is T stat for B. So, B is statistically significant at 5% level. R² is 0.24 which means 24% of Y is explained by X balance 76% is error due to the variables which are not in model. F is 15.71 which is more than the table value so overall the model is statistically significant at 5% level.
Conclusion: Beta = 0.9073, as Beta is less than 1 so Hero MotoCorp Ltd. is good for long term.