Relationship of Pioneer Embroideries Limited Shares with Nifty 50
Author: Priyal Vijay Shejwal [MMS 1st Year, Batch- B, Roll No- 0222115]
Kohinoor Business School
Introduction
Pioneer Embroideries Limited is a Public sector company incorporated on 25 October 1991. It is classified as Non-govt company and is registered at Registrar of Companies, Mumbai
Pioneer Embroideries Limited is one of the largest manufacturer-exporter of Embroideries, Torchon/Bobbin laces, Raschel laces and other garment accessories. We are associated with the leading retail brand for embroidered clothing “Hakoba”. A clear vision along with focus on quality, creativity and innovation has resulted in this spectacular, trail-blazing success.
Today, Pioneer Group has established an impeccable reputation and carved a permanent niche in the industry throughout the world. Our impressive international roster includes clients from the North America, Latin America, Europe, the Middle East and Africa. Pioneer is also the largest player in the domestic market. Catering to millions of satisfied customers already, Pioneer Group
OBJECTIVE
Calculate BETA of Pioneer Embroideries Limited and observe its significance.
VIEWS AND REVIEWS
- Harsh Vardhan Bassi
[Managing Director]
“The increased demand from the home textile segment has helped us grow in these difficult times of the ongoing pandemic and we continue to be a niche player in SPFY. We believe this is the right time to enhance our capacity to leverage the opportunity presented by the growing demand. Our focus continues to be on improving operating margins through increased capacity utilisations, thus increasing our share of value-added products and improving operational efficiencies”
- GopalKishnan Sivaraman
[Independent Non-Executive Director]
“As a director of Pioneer Embroideries limited, I am excited about the growth potential we have in the market. Over the past years, we’ve successfully expanded our product offerings to include custom embroidered apparel for corporate clients, sports teams, and events. This strategic move has led to increase in sales compared to the previous year. Overall, I am optimistic about our company’s future. Our dedicated team, commitment to quality, and willingness to adapt to market trends will undoubtedly propel us to new heights in the embroidery industry.”
DATA COLLECTION
The data for this period has been download on NSE India site and weekly closing prices were found out. Weekly returns of Nifty 50 and weekly returns of Pioneer Embroideries Limited were calculated. Nifty 50 returns were taken as X and equity returns Y (Y was regressed on X)
DATA ANALYSIS
Y = -0.529739198 + 2.974533473x
N= 50
(T stats = 0.183004)
R Square = 0.1162072
F = 0.048864
The above equation shows the shows the relationship between the closing price of Nifty 50 (x) and the closing price of Pioneer Embroideries Limited (y).The negative sign means a negative relationship meaning if ‘x’ falls ‘y’ rises and vice versa. If ‘x’ falls by 1 unit ‘y’ rises by 2.974, ‘n’ means there are 50 observations and the figure in the brackets are t stats for ‘b’ , so ‘b’ is not as calculated t stats for ‘b’ i.e. 0.183004 is lower than the tabulated t(t0.5,49 DF=1.6770) so reject H0. R2 is 0.1162072 means 11.62 % of y is explained by x. As the calculated value of F = 0.048864 is less than the tabulated F (F 0.05, 1DF, 49 DF) = 4.0430, the overall model is not statistically significant at the 5% level.
So, the overall model is statistically not significant at the 5 % level.
CONCLUSION
As Beta is 0.037405 which is less than 1 (B< 1). So, this share is good for long term
REFERENCE
https://www.nseindia.com/reports-indices-historical-index-data