Title: – Relationship of Pidilite Industries with Nifty 50
Author: – Pawan Tukaram Rathod (MMS First Year, Roll No. 0222049)
Kohinoor Business School, Kurla.
Introduction: – Pidilite Industries Limited is an Indian adhesives manufacturing company based in Andheri (East), Mumbai.[4] The company is the dominant and leading adhesives company in India. Pidilite also manufactures products across verticals such as art materials and stationery; food and fabric care; car products, adhesives, and sealants; and speciality industrial products like adhesives, pigments; textile resins, leather chemicals, and construction chemicals.
Pidilite markets the Fevicol range of adhesives. Its other brands are FeviKwik, Dr. Fixit, Roff, Cyclo, Ranipal, Hobby Ideas, M-seal, and Acron. It also markets and manufactures WD-40 in India.
Objective: – To Calculate Beta for Pidilite Industries and find out its significance.
Views and Reviews: –
Chairman of Pidilite Industries Shri. M. B. Parekh
Since its inception in 1959, Pidilite Industries Limited has been a pioneer in consumer and specialty chemicals in India. Over two-thirds of the company’s sales come from products and segments it has pioneered in India. Pidilite is growing its international presence through acquisitions and by setting up manufacturing facilities and sales offices in important regions around the world. Pidilite Industries Limited is the market leader in adhesives and sealants, construction chemicals, hobby colors, and polymer emulsions in India. Our brand name Fevicol has become synonymous with adhesives for millions in India and is ranked among the most trusted brands in the country. Our product range includes adhesives and sealants, construction and paint chemicals, automotive chemicals, art materials, industrial adhesives, industrial and textile resins, and organic pigments. We have reached where we are today due to the close teamwork of our employees and our shared value system, which emphasizes commitment to excellence, closeness to customers, and the spirit of innovation.
Data Collection: – Data is taken from 01-07-2022 to 30-06-2023. It has been downloaded from the NSE website, then Friday’s closing price was sorted and weekly returns of Nifty (i.e. X) and Pidilite Industries (i.e. Y) were calculated.
Data Analysis: – Equation “^Y=0.7274-0.7767(X)”
(t stat= 3.2046)
n = 50, R2 = 0.184, F = 10.8739
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Pidilite Industries (Y) the negative sign means a negative relationship meaning if “x” rises “y” falls and vice versa. If “x” rises by 1 unit, “y” falls by 0.7767, “n” means there are 50 observations, and figures in brackets are tstat for “b”, so “b” is not as Calculated tstat for b i.e. 3.2046 is higher than tabulated t(t0.5,49DF=1.677) so reject H0 and accept H1. R2 is 0.184 means 18.4% of y is explained by x, balance 81.6% is error due to the variables which are not in the model. As the calculated value of F =10.8739 is more than the tabulated F (F 0.05,1DF,49DF=4.043) So, the overall model is statistically significant at the 5% level.
Conclusion:
If β<1, Pidilite Industries Share is good for long term investment.