RELATIONSHIP OF RAYMOND LTD. WITH NIFTY FIFTY AND TO CALCULATE BETA

AUTHOR : ROSHNI SHARMA

INTRODUCTION : Raymond Ltd Is Largest Integrated Manufacturer Of Fabric In The World Based In Mumbai, Maharashtra. It Has Over 60% Market Share In Suiting In India. It Is Also India’s Biggest Woolen Fabric Maker.Textile Division Of The Company Has A Distribution Network Of More Than 4,000 Multi-Brand Outlets And Over 637 Exclusive Retail Shops In The Domestic Market Itself. Suitings Are Available In India In Over 400 Towns Through 30,000 Retailers And An Exclusive Chain Is Present In Over 150 Cities Across India. Its Products Exports To Over 55 Countries Including US, Canada, Europe, Japan And The Middle East. It Has More Than 20,000 Design And Colours Of Suiting Fabric Which Makes It One Of Largest Collection Of Designs And Colours By Single Company. It Was Listed As India’s Most Trusted Apparel Brand By The Brand Trust Report In 2015.

OBJECTIVE : TO CALCULATE BETA OF RAYMOND AND SEE ITS SIGNIFICANCE

LITREATURE REVIEWS :

RAYMOND LTD COLLABORATES WITH DDB MUDRA GROUP FOR ITS LATEST CAMPAIGN

 

Raymond Ltd has partnered with DDB Mudra Group to launch its latest campaign for TechnoStretch. Through the campaign, the company aims to celebrate the energy that comes with wearing office wear that allows for free and fluid movement, it claimed.

For Gaurav Magotra, national head of integration, DDB Mudra Group, work should not feel tedious for the new-age working professionals and how productive we are at work is often linked to how free we feel. “We wanted the advertising to reflect this attitude,” he added.

The campaign film opens with two office-goers and highlights its new fabric. According to the company, the idea behind this campaign was to create a visual treat and bring delight to the consumers, to match the TechnoStretch fabric that combines technology and fashion, it claimed.

RAYMOND LTD. (INDIA) WITNESSES HIGHEST Q1 REVENUE AND PROFITABILITY IN LAST 10 YEARS

 

Raymond, one of India’s largest integrated worsted suiting manufacturers,has been continuously witnessing a momentum of strong growth. In Q1,Raymond’s branded textile segment sales reported strong growth of 129 per cent at Rs. 648 crore, while the same was Rs. 283 crore in the same period of the previous fiscal.

In the branded apparel segment, the surging consumer demand for company’s brands integral to wedding-season-related purchases propelled sales to Rs. 262 crore in the current quarter. The growth was witnessed across all channels, including online, during the quarter. The segment reported EBITDA margin of 5.6 per cent as compared to EBITDA loss in the previous year.

 

Raymond Ltd.’s garmenting segment reported Q1 sales of Rs. 247 crore at a robust growth of 153 per cent. This was mainly driven by high demand from existing customers in the US and Europe markets and new customer acquisitions. The company said in a statement that garmenting business demonstrated resilience with a strong order book. The sustained demand from home buyers contributed to its real estate business with diverse product offerings. Gautam Hari Singhania, CMD, Raymond Limited, said “At Raymond, our continued focus on operating and financial parameters across businesses, supported by expansive network, quality products and services led to highest first quarterly revenue and profitability. The growing demand in both domestic and international markets, along with new customer acquisitions in international markets, has been rewarding for the quarter.”

 

DATA COLLECTION :

THE DATA FOR NIFTY AND EQUITY OF RAYMOND LTD. HAS BEEN COLLECTED FROM YAHOO FINANCE.COM FROM 1ST NOVEMBER,2022 TO 31ST OCTOBER ,2023.DATA WAS MANUPILATED TO CALCULATE THE FRIDAY CLOSING PRICE.

DATA ANALYSIS :

Raymond Share= 0.0058 + 1.893 Nifty

 

n= 48, R square= 0.1719, F = 9.7568

 

Above equation shows the relationship of the company ‘Raymond Limited’ with ‘Nifty.’ t stat for b is 3.123, p value is 0.00305, which is less than 0.05 so, b is not equal to 0. Meaning Nifty does impact ‘Raymond Limited’.

 

R^2 = 0.1719 Meaning 17% of ‘Raymond limited’ share is explained by Nifty and 83% depends upon other things like fundamentals.

 

F = 9.7568 And p = 0.00305  which is less than 0.05, hence, the model is statistically significant at the 5% significance level, further Nifty does affect the share significantly.

CONCLUSION :

The results indicate that (Beta) i.e. b = 1.893 which is more than 1; so it has an highly correlated relationship with the market.

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