Author: – Sanghraj Narayan Bagate Division “A” Roll No. 03, Kohinoor Business School, Kurla.
Introduction: Shakti Pumps is a leading manufacturer and supplier of a wide range of pumping solutions, catering to various industries and applications. Founded with the aim of providing efficient and reliable pumping solutions, Shakti Pumps has established itself as a prominent player in the global pump industry. The company offers a diverse portfolio of pumps, including submersible pumps, solar pumps, centrifugal pumps, and more. Shakti Pumps is known for its commitment to innovation, quality, and sustainability. One of the standout features of Shakti Pumps is its focus on energy-efficient and environmentally friendly pumping solutions, with a significant emphasis on solar-powered pumps.
The company’s products find applications in agriculture, domestic water supply, industrial processes, wastewater management, and more. Shakti Pumps has a strong research and development team that continuously works on improving product efficiency, reliability, and performance. This dedication to technological advancement has helped the company gain recognition not only in India but also on the international stage.
Objective: – To Calculate Beta for Shakti Pumps Ltd. and find out its significance.
Views and Reviews: –
Mr. Dinesh Patidar is the Chairman and Managing Director of Shakti Pumps Limited, stating, Shakti Pumps, the manufacturer of India’s first BEE 5 Star rated pumps, is renowned for producing stainless steel submersible pumps, energy saving submersible motors, vertical multistage centrifugal pumps, pressure booster, self-priming, end suction, open well and solar pumps in India. Founded in 1982, the company has grown phenomenally and become one of the few pioneers in the world to produce 100% stainless steel submersible pumps.
Owing to its dedicated efforts in R&D and technological innovation Shakti has emerged as a leading entity in the pump industry catering to domestic as well as international markets with a notable reach of more than 100 countries. Today Shakti is among the best brands in the world, thanks to state-of-the art technology and continuous innovation.
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 Shakti Pump(i.e. Y) were calculated.
Data Analysis: –Equation “Y=1.0008-0.8125(X)”
(tstat= 2.5422)
n = 50, R2 = 0.1257, F = 5.3654
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Shakti Pump(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 0.8125, “n”means there are 50observations, and figures in brackets aretstat for “b”, so “b” is not as Calculated tstat for b i.e. 2.5422 is higher than tabulated t(t0.5,49DF=1.677) so reject H0 and accept H1. R2 is 0.1187 means 11.87% of y is explained by x.As the calculated value of F =6.4629 ismore 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, Shakti Pump share is good for long term investment.