RELATIONSHIP OF JK LAKSHMI CEMENT WITH NIFTY 50 AND TO CALCULATE BETA. AUTHOR :-LAXMI GUPTA INTRODUCTION : JK Lakshmi Cement Limited is a part of the prestigious JK Organisation. This eminent industrial house is over hundred and thirty-five years old and boasts operations in India and abroad with a leadership presence in the fields of tyre, cement, paper, power transmissions, sealing solutions, dairy products and textiles. We are a renowned and well-established name in the Indian Cement industry for four decades and have an annual turnover of over Rs 6000 crores. We have a formidable presence in Northern, Western and Eastern India’s cement markets.
OBJECTIVE :– TO CALCULATE THE BETA OF JK LAKSHMI CEMENT AND SEE ITS SIGNIFICANCE.
LITERATURE REVIEW :- The cement industry in India has witnessed a remarkable growth making India presently the second largest producer of cement in the world. However, the production of cement involves emission of pollutants that are considered to be a severe threat to the environment. The objective of this paper is to identify the environment management practices (EMP) adopted by this industry to reduce the impact of its operations on the environment and then assign sustainability scores to the frms according to the extent of EMP adopted by them. Sustainability scores have been assigned to the frms by undertaking content analysis of the annual reports/sustainability reports and environmental clearance reports. The results suggest that there has been considerable improvement in adoption of EMP in most of the cement frms throughout the time period 2010–2017 and that the cement industry is indeed approaching a path of sustainability.
Shahid Ali (2011)highlighted in this study titled “Working Capital Management and the Profitability of the Manufacturing Sector: A Case Study of Textile Industry, ” the efficiency of working capital management as reflected by three variables: cash conversion efficiency, days operating cycle, and days of working capital. We use return on assets, economic value added, return on equity, and profit margin in sales as proxies for profitability. Data set covering 160 textiles firm for the period 2000-05. Return on assets is found to be significantly and negatively related to average days receivable positively related to average days payable. The findings of the regression analysis show that average days in inventory, average days receivable, and average days payable have a significant economic impact on ROI.
DATA COLLECTION :- The data for nifty 50 and equity of JK Lakshmi Cement has been downloaded from yahoo finance from the period 1st November 2022 to 31 st October 2023.The data was analysed to find out the Friday closing prices of nifty 50 and jk Lakshmi cement as weekly returns of NSE index nifty 50 as X and weekly returns of equity of JK Lakshmi cement on NSE as Y. Wherein,Y is the equity of JK Lakshmi cement was regressed on X [NIFTY 50] and a relationship between the two is plotted.
DATA ANALYSIS :
DATA EQUATION OF JK LAKSHMI CEMENT ==613.21+2.6872 Nifty
n = 48 Rsquare =0.004 F = 0.20217
The above equation shows the reltionship of jk lakshmi cement with Nifty
If nifty rises by 1 unit ,jk lakshmi cement will rise 2.6872 unit
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TSTAT for beta is 0.449 and the p value is 0.655 which is more than 0.05,meaning nifty does not impact impacts jk lakshmi cement. |
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Rsquare is 0.004,meaning 4%of jk lakshmi cement is explained by nifty 96%of jk lakshmi cement(y)depends on NIFTY 50 (X).
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CONCLUSION : AS BETA (2.6872) IS MOE THAN 1,THE COMPANY IS NOT GOOD FOR LONG TERM INVESTMENT. REFERENCES :-
Agha, Hina (2014). “Impact of Working Capital Management on Profitability.” European Scientific Journal. 10(1). January: 374-81. |
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Barwal A, Rubina C (2016) Holistic approach to sustainability initiatives in Indian cement industry: future challenges and commitments. Sky J Soil Sci Environ Manag 5(4):077–084. http://www.skyjournals.org/sjssem/Pdf/2016/Jun/Barwal%20and%20Chaudhary%20pdf.pdf