Author: Abhishek phadtare
Introduction:
Introduction:
ACC Cement Ltd. is a leading manufacturer and supplier of cement and ready-mix concrete. The company operates across various segments of the construction industry, serving both domestic and international markets. Its products are widely used in infrastructure projects, real estate developments, and various construction applications.
Objective:
The objective of this analysis is to calculate the beta coefficient of ACC Cement Ltd. in relation to a market index (such as Nifty 50) and assess its significance. The beta coefficient indicates the stock’s sensitivity to market movements.
Views and reviews:
Sridhar Balakrishnan Managing Director and CEO
1. MACRO DYNAMICS ARE TURNING FAVOURABLE
The government’s focus on infrastructure and affordable housing is expected to bolster cement demand. Affordable housing initiatives are expected to pick up pace under the Pradhan Mantri Awas Yojana (PMAY) with enhanced budgetary allocations. The Government spending on housing and infrastructure projects is expected to increase demand for cement and building materials. Good monsoon has helped to improve the agricultural output which also augurs well for increased cement demand.
2. RE-IMAGINING THE FUTURE WITH TECHNOLOGY
The way business environment is changing, organisations which embrace technology and remain focused on digital innovation, intelligent use of data and excellence in customer services would be able to lead the way. Over the last few years, we have increasingly focused on transforming our business by leveraging IT and digital interventions. We are enhancing customer experience through upgraded versions of Dealer Connect App. This offers additional functionalities. The Concrete Club App comes with a singular social platform for construction professionals such as architects and engineers.
Data Collection:
The data for ACC Cement Ltd. and the market index (e.g., Nifty 50) is collected from the National Stock Exchange (NSE) for the period of 01-06-2022 to 31-07-2023. The closing prices of ACC Cement and the market index on Fridays are used to calculate the weekly returns..
Data analysis:
Equation
y=-0.48 – 0.012x +e
(ACC cement=0.48 – 0.12Nifty 50 + e)
T stat for b =- 0.025
R2 = 0.000013
F= 0.0006
The above equation do not show any relationship between nifty 50 (X) and ACC cement (Y). ACC cement runs on own fundamentals the t stat for b is -0.025 not statistically significant at 5 % level, R² is which means 0.0013% Y is explained by X. 99.99% is the error in model. 0.0006 Which is less than the table value which means overall them model is not statistically significant at 5% level.
Conclusion:
The Beta Of The ACC cement Is < 1 So The Company Is Good For Long Term Investment.