Title Name: – Relationship of Voltas LTD.
Author Name: – Vishakha balu bhosale/0222007
Introduction: –
Voltas Limited is an Indian Multional home applicances company headquartered in mumbai . It designs, develops, manufactures and sells products including air conditioners, air coolers, refrigerators, washing machines, dishwashers, The company was incorporated on 6 September 1954 in Mumbai, as a collaboration between Tata Sons and Volkart Brothers. The company is currently chaired by Noel Tata and Pradeep Bakshi is the company’s current chief executive officer and managing director. Microwaves, air purifiers, water dispensers. Voltas is India’s largest air conditioning company by market share.
Objective
Calculate BETA of Voltas Limited and observe its Significance
View & Review
Air conditioning and engineering services provider Voltas said on Monday that its MDand CEO Sanjay joshi would retire and Pradeep bakshi, who is currently the coo, would succeed him. Joshi retirement is effective February 10, 2018.Voltas also added that CEO anil George were named to the board of Voltas in june.
Bakshi,55, joined Voltas in 2001 from Electrolux kelvinator where he last held the post of senior manager, since moving to the ta-ta group company, he has held several senior managers. Since moving to the Tata group company, he has held several senior positions most notably as the lead of air cooling products business. Bakshi transformed the business, boosting its revenues and profitability. The unit’s profit crossed Rs.500 crores in fiscal 2017, a growth of 30% compared to fiscal to 2016
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 Voltas limited Were Calculated (Nifty Returns Taken as X and Equity Return Taken as Y) Y Was Regress On X.
Data Analysis
Equation y= -0.6827- 0.6852 x + e
T stat for b = 2.2919
R2 =0.10052
F= 5.2529
N= 50
The equation demonstrates the relationship between the closing price of nifty 50(X) and the closing price of Voltas Ltd (Y). The positive sign implies a positive relationship: as X increases, Y also increases, and vice versa. For every one-unit increase in X, Y is expected to rise by 0.2301 units. There are 50 observations. The t-statistic for coefficient B is 0.685223, indicating that B is statistically significant at the 5% level. The R² value of 0.10052 suggests that only 0.31% of the variation in Y can be explained by X balance 99.69 is error due to the variables which are not in the model. The F value of 5.2529 which is less than the table value so not statistically significant at the 5% level, indicating limited explanatory power of the model.
Conclusion:
Because the Beta of Voltas ltd Is < 1 So The Company Is Good for Long Term Investment.