Title: – Relationship of Ruchi Infrastructure ltd with Nifty 50
Author: – Rohan V. Narwane (MMS First Year Batch B, Roll no. 0222102) Kohinoor Business School, Kurla.
Introduction: – Ruchi Infrastructure Limited (RIL) was incorporated on 28 August 1984 as Columbia Leasing & Finance Limited. It changed its name to Ruchi Infrastructure & Finance Limited on 2 September 1994 and again to Ruchi Infrastructure Limited on 14 June 1995.
The 32-year old RIL is one of the largest private sector companies set up primarily, to set up of liquid/solid storage tank, warehousing and logistics services for letting out on rent and generation of Renewable energy
Objective: – To Calculate the Beta of Ruchi Infrastructure ltd and find out its significance.
Views and Reviews: –
Krishna Das Gupta, Director of Ruchi Infrastructure Limited, commented on the occasion “The Company is now at the threshold of a new era, new possibilities and a future that shall change the way we think about manufacturing at the component level. The company’s dictum of Aspire, Innovate and Achieve continues to be the mantra that drives it towards the creation of a customer centric, innovation driven, technology oriented, socially responsible organization, and the vision and mission statements in the context of this new reality have led to the definition of a new vision, a new mission.”
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 Ruchi Infrastructure ltd (i.e. Y) was calculated.
Data Analysis: – Equation “Y^= 0.02597+1.4782(X)”
(tstat = 2.05475)
n = 50, R2 = 0.08940, F = 4.2218
The above equation shows the relationship between Nifty 50 (X) and Ruchi Infrastructure ltd (Y). The positive sign means positive relationship meaning if X rises Y also rises and vice versa. If Nifty 50 (X) rises by 1 unit Ruchi Infrastructure ltd (Y) rise by 1.4782 unit. N means there are 45 observations. T stat for b is 2.05475, is less than tabulated t (t.05,48df = 2.08) therefor t stat for b is not statistically significant @5% level. R square is 0.08940 which means 8.9% of Y is explained by X balance 91.1% is error due to variables which are not in model. F is 4.2218 which is more than table value (F.05, 1df, 48df = 0.0460) so overall the model is statistically significant at 5% level.
So overall the model is statistically significant at the 5% level.
Conclusion:
Here, b>1, Ruchi Infrastructure ltd share is good for short term investment.