Title: – Relationship of PVR Inox Limited with Nifty 50.
Author: – Pranay Purushottam Iswalkar. / MMS (Batch-B) / Roll No.- 222080.
Introduction: – PVR Inox Limited is a prominent player in the Indian cinema and entertainment industry. PVR Limited, founded in 1997, and Inox Leisure Limited, founded in 1999, are two major cinema chains in India. In 2021, they merged to create PVR Inox Limited, which operates a vast network of cinema screens across the country. PVR Inox Limited is dedicated to providing a world-class cinematic experience to its patrons through its diverse portfolio of cinema formats and facilities. As of the latest available data, PVR Inox Limited operates 1,500+ screens in various cities, making it one of the largest cinema exhibition companies in India.
Objective: – To Calculate the Beta of PVR Inox Limited and find out its significance.
Views and Reviews: – Rajeev Mishra, CEO of PVR Inox Limited, commented on the company’s commitment to delivering exceptional cinematic experiences: “At PVR Inox, our mission is to redefine entertainment by providing the finest cinema experience to our customers. We continuously strive to innovate and enhance our offerings, ensuring that every visit to our cinemas is memorable and enjoyable.”
Data Collection: – Data is collected from July 1, 2022, to June 1, 2023. It has been obtained from a reliable financial source, and weekly closing prices of Nifty (X) and PVR Inox Limited (Y) have been calculated.
Data Analysis: – Equation “Y= 0.6070+ 0.4206(X)”
(tstat = 0.9735)
n = 45, R2 = 0.0215, F = 0.9478
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of RBL Bank LTD. (y) the positive sign means a negative relationship meaning if “x” rises “y” rises and vice versa. If “x” rises by 1 unit, “y” rises by 0.4206, “n” means there are 45 observations. The t-stat for b is 0.9735, which means b is statistically significant at 5% level. R2 is 0.0215 means 2.15% of y is explained by x, balance 97.85% is error due to the variables which are not in model. As the calculated value of F =0.9478 is more than the tabulated F (F 0.05,1DF,44DF) = 4.062, the overall model is statistically not significant at the 5% level.
So overall the model is statistically not significant at the 5% level.
Conclusion: – As Beta is 0.4206 which is less than 1, PVR INOX Limited. share is good for long term investment.