Relationship of Sagar Cements Limited with Nifty.
Author: Sayali Dnyaneshwar Sambare. (113)
Introduction –
Sagar Cements Limited is an Indian multinational cement company. The company headquarter is in Hyderabad, India. It is one of India’s leading cement manufactures with an installed production capacity of 5.75 MTPA. The company is committed to creating lasting stakeholder value while maintaining a sustainable growth outlook with our robust foundation and a steady growth focus. Sagar Cements is making significant investments in research and development to develop different innovative solutions for products.
Objective: To calculate Beta of Sagar Cements Limited and find out its significance.
Views and Reviews:
- K. V. Vishnu Raju (Chairman):
Dear Stakeholders,
A warm welcome to all the readers as the new chairperson of Sagar Cements. I am privileged to work with a trusted and reputed brand in the Cement manufacturing sector today and I hope that with all your support, we can make it attain new heights. I am happy to share that we have become the successful bidder for Andhra Cement in the National Company Law Tribunal (NCLT) process. This acquisition essentially adds 2.6 MTPA capacity taking our total capacity over 10 MTPA. We have been able to achieve our targeted capacity of 10 MTPA two years in advance, and this I think will go a long way in strengthening our presence in the southern market.
- S. Anand Reddy (MD):
FY2023 has been a year of strategic growth for us at Sagar Cements. We launched our ESG Vision and Roadmap which lays out our 2030 and 2050 targets while we are also adding to our overall geographic presence, gaining market access, and enhancing production capacity, all in a sustainable manner.
Data Collection :
We collected weekly closing prices from Nifty.com 01-07-2022 to 30-06-2023. Then, we calculated the weekly returns for both Nifty 50 (X) and Sagar Cements Limited equity (Y) using the Friday closing prices. This helped us understand how both Nifty 50 and Sagar Cements Limited performed each week during this time.
Data Analysis:
We can write the equation in the form of Y = a + bx
Y = 0.0016+1.0042x
(2.5468)
N=50
R2 =0.1190
F = 6.4866
Interpretation:
The above Equation shows the relationship between the Nifty 50 (X) with Sagar Cements Limited (Y). The positive sign means the positive relation meaning that if nifty stock rises, then Sagar Cements Limited stock also rises and vice versa. If nifty 50 rises by 1 unit Sagar Cements Limited rises by 1.0042 units. N means there are 50 observations. T is 2.5468, is greater than tabulated T (t.05,48 2.0106). T stat for b is statically significant. R2 is 0.1190 which means 11.90% of Y is explained by X. F is 6.4866 which is greater than the table value ( F.05, 1, 48 4.0420). So, overall, the model is statistically significant 5% level of significance.
Conclusions:
- is greater than 1 so Sagar Cements Limited share is good for short term.