- Title: Relationship of Motherson Sumi wiring PVT ltd Share with Nifty50
Author: mohit nandi (MMS First year, Roll no.40) Kohinoor Business School, Kurla.
INTRODUCTION
Motherson Sumi Wiring Systems (MSWS) is a prominent player in the automotive industry, specializing in the design, manufacturing, and supply of wiring harnesses and electrical distribution systems for vehicles. As a subsidiary of Motherson Sumi Systems Ltd. (MSSL), MSWS is a key contributor to the global automotive supply chain, offering cutting-edge solutions to meet the complex electrical needs of modern vehicles.
OBJECTIVE
- Calculate BETA of Motherson sumi wiring Limited and observe its Significance
VIEW & Review
MSWIL offers a pure play on the India automotive market (>95% of revenues from India). With over 40% market share, the company enjoys a market leadership position in the Indian wiring harness industry, with strong headroom for sustained increase in content, benefiting from mega trends witnessed in the automotive industry (premiumization, electrification, connected vehicles, etc.).
DATA ANAYSIS
Equation “Y= 1.0238+1.6343 (X)”
(tstat = 1.728561)
n = 25, R2 = 0.11497, F = 2.987922
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of motherson sumi lt. (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 1.6343, “n” means there are 25 observations. The t-stat for b is 1.728561, which means b is statistically significant at 5% level. R2 is 0.11497 means 11.49% of y is explained by x, balance 88.51% is error due to the variables which are not in model. As the calculated value of F =2.987922 is less than the tabulated F (F 0.05,1DF,23DF) = 4.279, the overall model is not statistically significant at the 5% level.
So overall the model is not statistically significant at the 5% level.
CONCLUSION
As Beta is 1.6343 which is more than 1, the share of motherson wiring is good for short term