Author: – Mansi Sunil Patil (MMS First Year, Roll no. 0222044)
Introduction:- Mahindra & Mahindra Ltd, commonly known as M&M, is an Indian multinational corporation headquartered in Mumbai, India. Founded in 1945, it is one of the largest automobile manufacturers in India and has a significant presence in various sectors, including automotive, farm equipment, aerospace, defense, and more. The company is known for its production of utility vehicles, tractors, and commercial vehicles. Over the years, Mahindra has expanded its global reach and is recognized for its innovative approaches to sustainability and technology.
Objective: – To Calculate the Beta of Mahindra & Mahindra Ltd and find out its significance.
Data Collections: – Data is taken from 01-07-2022 to 30-06-2023. It has been downloaded from the NSE site, then Friday’s closing price was sorted and weekly returns of Nifty (i.e. X) and Mahindra & Mahindra Ltd, (i.e. Y) were calculated.
Data Analysis: -Equation “Y=0.4657-0.0790(X)”
(tstat= 0.3047)
n = 50, R2 = 0.3104, F = 24.6217
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Mahindra & Mahindra Ltd,(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 0.0790, “n”means there are 50observations, and figures in brackets are tstat for “b”, so “b” is not as Calculated tstat for b i.e. 4.6428 is higher than tabulated t(t0.5,49DF=1.677) so reject H0 and accept H1. R2 is 0.3104 means 31.40% of y is explained by x. As the calculated value of F =24.6217 is less than the tabulated F(F 0.05,1DF,49DF)=4.038, the overall model is not statistically significant at the 5% level.
So overall the model is statistically not significant at the 5% level.
Conclusion: Mahindra & Mahindra Ltd,
If b<1, Mahindra & Mahindra Ltd share is good for long term investment.