Author:–Anchal Sharma
Introduction:-
Green Energy Limited, a subsidiary of the Adani Group, is a major player in India’s renewable energy sector. Established in 2015, it specializes in the development, operation, and maintenance of solar and wind power projects. Committed to sustainable energy, Adani Green Energy has played a significant role in advancing India’s renewable energy agenda.
Objective:- To calculate the beta of Adani Green Energy Limited and see its significance.
Literature Review:-
1.Adani Enterprises Ltd (Adani), a subsidiary of Adani Group, is a diversified company with operations in coal mining, coal logistics, solar module manufacturing, and edible oil. Its coal mining business involves mining, processing, acquisition, exploration, and development of mining assets. The company has coal mines in India, Indonesia, and Australia. Adani’s businesses include airports, roads, water management, data centers, solar manufacturing, defence and aerospace, edible oils and foods, mining, integrated resource solutions, and integrated agri products. The company operates modern controlled atmosphere storage facilities in India.Adani Enterprises Ltd (ADANIENT) – Power – Deals and Alliances Profile provides you with comprehensive data and trend analysis of the company’s Mergers and Acquisitions (M&As), partnerships and financings. The report provides detailed information on mergers and acquisitions, Equity/Debt Offerings, private equity, venture financing, and partnership transactions recorded by the company over a five year period. The report offers detailed comparative data on the number of deals and their value categorized into deal types, sub-sector, and regions.
2.Adani Group (Adani) is an infrastructure conglomerate company. The company, through its businesses, offers a wide range of services such as coal trading, coal mining, renewable ports, multi-modal logistics, power generation and transmission, and real estate services. In the oil and gas sector, it is involved in the business of exploration and development of oil and gas properties and gas distribution. It also carries out bulk handling, storage, and transportation of food grains. Adani offers end-to-end bulk supply chain solutions to Food Corporation of India and various state governments. The company has solar PV power plants in Gujarat, Punjab, and Tamil Nadu.
Data collection:-
The data for Nifty 50 and Equity of Adani Green Energy Limited has been downloaded from nseindia.com from the period 1st November 2022
To 31st October 2023. The data was analyzed to find out the Friday closing prices of Nifty 50 and Equity of Adani Green Energy Limited viz, as weekly returns of NSE Index Nifty 50 as ‘X’ and weekly returns of Equity of Adani Green Energy Limited on NSE as ‘Y’ .Wherein, ‘ Y’ (Equity of Adani Green Energy Limited) was regressed on ‘X’ (Nifty 50) and a relationship between the two plotted.
Data analysis:
Data Equation of Adani Green Energy Limited Shares = 641.0+0.00032 NIFTY ,
Where, n=48, R square =0.001, F=0.0039.
The above equation shows the relationship of Equity of Adani Green Energy Limited with Nifty 50 .
If Nifty rises by 1 unit, Adani Green Energy Limited will not rise by 0.0003 units
t-Stat for beta is0.06 and the p value is 0.94 which is more than 0.05.so b=0 meaning does nifty does impact Adani green energy LTD.
R square is 0.0014 , meaning 14%of Adani Green Energy Limited explained by Nifty , meaning 86% of Adani Green Energy Limited (Y) depends on Nifty 50 (X) .F = 0.0039 and p value is 0.949 is more than 0.05 .So the modal is not statistically significant at 5% level.
Conclusion:- As beta is 0.0003 is less than 1% so the company is good for the long term investment .
Reference:-
https://www.proquest.com/reports/adani-group/docview/2564108226/se-2?accountid=28682