Title: Relationship of Piramal Pharma with Nifty 50
Author: Pratik S Tulve ( MMS first year, Roll no. 123)
Kohinoor Business School, Kurla.
Introduction: Piramal Pharma Limited (PPL) offers a portfolio of differentiated products and services through end-to-end manufacturing capabilities across 15 global facilities and a global distribution network in over 100 countries. PPL includes Piramal Pharma Solutions (PPS), an integrated Contract Development and Manufacturing Organisation (CDMO), Piramal Critical Care (PCC), a Complex Hospital Generics business, and the India Consumer Healthcare business selling over-the-counter products.
Objective: to find out beta of Piramal Pharma and find out significance.
Views and Reviews
Nandini Piramal, the chairperson of Piramal Pharma Ltd, said she expects the business to grow 15% annually over 3-5 years and margins at the 20% level. As the business builds scale, she expects operating margins to improve, Piramal said in an interview.
Data Collections: – Data is taken from 01-06-2022 to 31-07-2023. It has been downloaded from the NSE site, then Friday’s closing price was sorted and weekly returns of Nifty (i.e. X) and Piramal Pharma (i.e. Y) were calculated.
Data Analysis: Equation
“Y= 1.032-1.569X”
N = 32
R2= 0.1528
F= -2.326
The above Equation shows the relationship between the Nifty 50 (X) with piramal pharma (Y). The negative sign means the negative relation meaning that if nifty stock rises, then piramal pharama stock fall and vice versa. If nifty 50 rises by 1 unit piramal stock fall by 1.56 units. N means there are 32 observations. T is -2.326, is less than tabulated T (t.05,30 2.042). T stat for b is statically not significant. R2 is 0.1528 which means 15.28 % of Y is explained by X. F is 5.4108 which is greater than the table value ( F.05, 1, 30 4.1708). So, overall, the model is not statistically significant @5% level of significance.
Conclusion: If b<1, is good for long term investment
Reference: https://www.livemint.com/companies/people/our-plan-will-allow-us-to-grow-15-annually-over-3-5-years/amp-11666198905620.html