Title: – Relationship of Vaibhav Global Limited (VGL) with Nifty 50
Author: – Vaibhav Mahadev Patil (MMS First Year, Roll No. 0222043)
Kohinoor Business School, Kurla.
Introduction: – Vaibhav Global Limited (VGL), formerly known as Vaibhav Gems, is a multi-national electronic retailer and manufacturer of fashion jewellery and lifestyle accessories. It sells its products through its home shopping channels, Shop LC in the United States and TJC in the United Kingdom. The company is headquartered in Jaipur, India.
VGL was founded as Vaibhav Enterprises in 1980. It was later incorporated as Vaibhav Gems Limited, in 1989 at Jaipur, India. The company became Vaibhav Global Limited in 1994 and went public in 1996-97. VGL continued expanding its manufacturing and retail capabilities and in 2005-06 acquired STS Group of companies.
Objective:-To Calculate Beta for Vaibhav Global Limited (VGL) and find out its significance.
Views and Reviews: –
Mr. Sunil Agrawal, Managing Director of Vaibhav Global Limited– The Group’s performance during FY23 was against the backdrop of moderating consumer demand owing to two macro environments. First the opening of economies after almost two years of travel restrictions led people to go out for revenge outings and in-person shopping, impacting the overall digital retailing industry. Secondly, the high inflation in western economies resulted in high level of uncertainty in consumers, leading to subdued spend on discretionary items. Even though the business environment for digitally native retailers was tough, we continued to gain market share against our competitors. We are optimistic about the future and confident in our ability to navigate challenges and achieve our goals. Our 4R framework of Widening Reach, New Customer Registration, Customer Retention and Repeat Purchases forms the basis of driving our operating performance and continue to be the future levers for growth. We continue to closely monitor the macro environment and business trends. I believe that we have a capable team with the experience to effectively manage growth in this environment. Despite near-term uncertainties, we believe that the medium- and long-term demand remains strong. We are well positioned to leverage our competitive advantages. We look forward to maintaining a balance between growth, investment, and pay-outs to generate sustainable value for our stakeholders.
Data Collection: – Data is taken from 01-07-2022 to 30-06-2023. It has been downloaded from the NSE website, then Friday’s closing price was sorted and weekly returns of Nifty (i.e. X) and Vaibhav Global Limited (i.e. Y) were calculated.
Data Analysis: – Equation “^Y=0.5623-1.0535(X)”
(tstat= 2.7523)
n = 50, R2 = 0.1363, F = 7.5749
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Vaibhav Global Limited (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 1.0535, “n” means there are 50 observations, and figures in brackets are tstat for “b”, so “b” is not as Calculated tstat for b i.e. 2.7523 is higher than tabulated t(t0.5,49DF=1.677) so reject H0 and accept H1. R2 is 0.1363 means 13.63% of y is explained by x, balance 86.37% is error due to the variables which are not in the model. As the calculated value of F =7.5749 is more than the tabulated F (F 0.05,1DF,49DF=4.043) So, the overall model is statistically significant at the 5% level.
Conclusion:
If β<1, Vaibhav Global Limited share is good for long term investment.
Reference:
https://www.vaibhavglobal.com/chairman-md-message