Topic Name: Relationship of Sirca Paints with Nifty50.
Author: Shrutika Milind Kalambe (MMS First Year,Roll no. 0222021)
Kohinoor Business School, Kurla.
Introduction: Bringing the Italian finesse to your home, Sirca India beautifies your interiors & exteriors with a premium Italian range of products including wood coatings, effects, and wall paint emulsions. Because richness & beauty begins with Sirca, Your Italian Autograph…Sirca products are mainly intended for the furnishing segment and are often developed in collaboration with some of Italy’s most prestigious furniture stores.
The quality of the application, color customization, and duration over time are all distinctive traits of Sirca coatings, which are flanked by an equally important production of polymers, for various segments ranging from technological structures to fashion design.
Objective: To calculate beta of Sirca paints and find out its significance.
Views & Reviews:
Board of Directors -Anil Kumar Mehrotra, Anu Chauhan, Apoorv Agarwal, Gurjit Singh Bains
The Board of Directors recommended a final dividend of ?2 per equity share of ?10 each (20% of Face Value) for FY 2021-22. Dividend will be taxed in shareholders’ hands, with the Company withholding tax at source. The Company follows Regulation 43A of SEBI (Listing Obligations and Disclosure Requirements) Regulations. A policy on nomination and remuneration of Directors and Key Managerial Personnel is adopted, with the Nomination and Remuneration Committee reviewing potential appointments.
Operating income for the year grew by 33.9% YoY. Operating profit rose by 63.4% YoY, with a decline in operating profit margins to 23.0% (FY23) from 18.9% (FY22). Depreciation increased by 6.9%, finance costs decreased by 56.1% YoY, and other income grew by 10.1% YoY. Net profit saw a 66.3% YoY increase, with net profit margins expanding from 13.9% (FY22) to 17.2% (FY23).
Data Analysis: Equation “Y=0+0.0304(X)”
(tstat =0.6622)
N=45, R2 =0.0100, F=0.4385
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Sirca Paints, (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 0.0187, “n” means there are 45 observations. The t-stat for b is 0.6623, which means b is statistically not significant at 5% level. R2 is 0.0100 means 1% of y is explained by x, balance 99% is error due to the variables which are not in model. As the calculated value of F =0.4385 is more than the tabulated F (F 0.05,1DF,44DF) = 4.067, 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 0.0304 which is less than 1, the Company is good for long term.
