Relationship of Cipla Limited with Nifty 50
Author: Charul Petkar(MMS FIRST YEAR 45)
Introduction:
Cipla Ltd Is A Prominent Indian Multinational Pharmaceutical And Biotechnology Company. Established In 1935, It Is Headquartered In Mumbai, India. Cipla Is Known For Its Diverse Range Of Pharmaceutical Products, Including Generic Medications, Active Pharmaceutical Ingredients (Apis), And Advanced Drug Delivery Systems. The Company Focuses On Providing Affordable Healthcare Solutions And Has A Global Presence, Exporting Its Products To Over 180 Countries. Cipla Has Been A Pioneer In Developing And Manufacturing A Variety Of Medicines, Including Antiretroviral For HIV/AIDS Treatment.
Objective:
To Calculate Beta of Cipla Limited and Observe Its Significance
Views and Reviews:
- Y K Hamied Chairman
Cipla’s purpose of ’Caring for Life’ has been our guiding mission over the years and reflects our culture of care and compassion. We strive to do our best to make a difference in the lives of all. We believe that success does not make a company great, what really matters is its contribution to the welfare of the society. We established a Palliative care and training centre in Pune over 25 years ago and have since addressed the needs of over 22,500 patients and their family.
- Samina Hamied Executive Vice-Chairperson
Partners in your wellness journey In line with the healthcare priorities and the massive shift in consumer mind set towards wellness, we are ascending the value chain to partner every consumer in their wellness journey. Our consumer business has grown rapidly by almost 5x in the last three years and has contributed significantly to our global consumer franchise. Backed by deep consumer insights and innovation we are creating solutions to address the unmet needs of consumers with 12 brands across 10 categories including pain, cold & cough, smoking cessation, gut health, skincare, feminine hygiene, etc. We forayed into the direct-to-consumer space with the launch of marquee brands like Rivela Derma science, MamaXpert and EveXpert. We also acquired Endura Mass which is a renowned nutritional supplement brand in the weight gain category.
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 Cipla Limited Were Calculated (Nifty Returns Taken As X And Equity Return Taken As Y) Y Was Regress On X.
Data Analysis:
|
Equation Y= -0.09-0.02x+E |
(Cipa Limited = -0.09-0.02Nifty 50 + E)
T Stat For B = -0.10
R2 = 0.00019
F=0.009
The Above Equation Show Relationship between Nifty 50 (X) and cipla ltd (Y). Cipla Limited Runs On Own Fundamentals The T Stat For B Is -0.10 Not Statistically Significant At 5 % Level, R2is 0.00019 Which Means 0.019% Y Is Explained By X. 99.9% Is The Error In Model. 0.009 Which Is Less Than The Table Value Which Means Overall Them Model Is Not Statistically Significant At 5% Level.
Conclusion:
The Beta Of The Cipla Limited Is < 1 So The Company Is Good For Long Term Investment.