Relationship of VRL Logistics Ltd with Nifty 50
Author Name: Vivek Kirdat
Roll No : 29
Introduction : VRL Logistics Ltd , Founded in 1976, VRL is a Public Listed Company on NSE & BSE Exchange with a Market Capitalization of INR 55.89 billion (as on 31.03.2023), We grown into a nationally renowned logistics & Transport Company which is also currently the largest fleet owner of commercial vehicles in India. VRL has pioneered in providing a safe and reliable logistics network in the field of parcel service, ensuring last mile delivery even in remote locations. We integrated hub-and-spoke operating model which enables optimal aggregation of consignments from a diversified customer base across multiple industries and locations.
Objective: To calculate beta of AFF ltd and observe its significance.
Views and Reviews:
Dr. Vijay Sankeshwar, Chairman, Managing Director and Promoter of the Company. He is actively involved in the day to day affairs of the company, as a whole time Director. We have not only built a company, we also developed a culture among our staff, right from truck drivers to the top management. A sense of responsibility, honesty and dedication is included in each of our team member. This is what makes quality & on-time service possible. VRL has given employment to over 15,000 employees and our growth & success is attributed to the this strong workforce. This coupled with the strong in-house IT would propel the company to never growth pinnacles in the days to come.
Data collection: Data is taken from 01-06-2022 to 31-07-2023. downloaded from NSE site then Friday’s closing were find out then weekly return of Nifty (i.e.X) & weekly return of AFF ltd (i.e. Y)
Data Analysis: Equation “^y = -0.1316 + 0.1316x”
(tstat = -0.3018)
N= 50 , R^2 = 0.001894 , F = 0.09111
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of VRL logistics (y) the negative sign means a negative relationship meaning if “x” rises “y” falls or vice versa. If “x” rises by 1 unit, “y” falls by 0.0516, “n” means there are 50 observations, and figures in brackets are tstat for “b”, so “b” statistically significant at 5% level. Calculated tstat for b i.e. is 0.1316 lower than tabulated t(t0.5,49DF=1.6770) so accept H0 and Reject H1. R2 0.001894 is means 0.01% of y is explained by x, balance is 99.99. As the calculated value of F =0.0192 is less than the tabulated F (F 0.05,1DF,49DF) = 4.0430, the overall model is not statistically significant at the 5% level.
So overall the model is statistically not significant at the 5% level
Conclusion :
The Beta value for VRL logistic Is 0.764063, Which is <1. So, it is good for long term investment.
Refrence : http://www.vrlgroup.in/
