Author: Prasad Shankar Salve. ( MMS First Year,Roll no.53)
Introduction: On May 16, 1990, Persistent Systems, a multinational provider of technology services, was founded in India. The National Stock Exchange and the Bombay Stock Exchange both list Persistent Systems. In March 2010, the company’s shares were admitted to trading on the National Stock Exchange of India. Persistent is a multinational provider of services and solutions that specializes in Digital Engineering and Enterprise Modernization with over 21,500 workers spread across 18 countries. With a focus on software engineering, data analytics, cloud computing, and digital transformation, Persistent Systems provides a comprehensive range of services to meet the changing needs of contemporary enterprises. The organization is renowned for providing cutting-edge solutions that promote business growth and success, thanks in part to its dedication to quality and its skilled team of specialists.
Objective: To Calculate the Beta of Persistent Systems Limited and find out its significance.
Views and Reviews: DR. ANAND DESHPANDE IS FOUNDER OF COMPANY, CEO OF THE COMPANY SANDEEP KALRA, Indian technology business Persistent Systems Ltd. has received praise and admiration for its contributions to the IT sector. The business has made a name for itself in the global technological landscape thanks to a solid foundation in software development, digital transformation, and consulting services. Persistent Systems is renowned for its emphasis on innovation and cutting-edge solutions, frequently utilizing cutting-edge technologies like cloud computing, AI, and IoT to handle challenging business issues. The company’s collaborative strategy, which tailors solutions to meet particular needs, reflects its dedication to providing value to its clients. Positive feedback has been given to Persistent Systems for their commitment to quality, punctuality, and capacity to foresee market trends.
Data Collection: Data is collected from July 1 2022 , to June 1, 2023. It has been obtained from areliable financial source, and weekly closing prices of Nifty (X) and PERSISTENT SYSTEM LTD (Y) have been calculated.
Data Analysis: Equation “Y= 0.65462+ 0.46561(X)”
(tstat = 1.00137)
n = 45, R2 = 0.022788, F = 1.00274
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Presistent system 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 0.46561, “n” means there are 45 observations. The t-stat for b is 1.00137, which means b is statistically significant at 5% level. R2 is 0.022788 means 2.15% of y is explained by x, balance 95.85% is error due to the variables which are not in model. As the calculated value of F =1.00274 is more than the tabulated F (F 0.05,1DF,44DF) = 4.072, the overall model is statistically significant at the 5% level.
So overall the model is statistically not significant at the 5% level.
Conclusion: As Beta is 0.46561 which is less than 1, the share is good for long term.