Title : Relationship OF Nelco Limited with nifty fifty and calculate Beta

Author : Namrata Bhandalkar

Introduction :

Nelco Limited is a prominent Indian company known for its expertise in providing cutting-edge technology solutions. As a leading player in the electronics and telecommunications industry, Nelco has consistently demonstrated innovation and a commitment to delivering high-quality products and services. With a diverse portfolio ranging from satellite communication to integrated security solutions, Nelco has carved a niche for itself in the market. The company’s relentless pursuit of excellence and technological advancements has positioned it as a trusted partner for businesses seeking reliable and state-of-the-art solutions

Objectives : To calculate Beta of Nelco limited and see its significance

LITERATUE REVIEW: 

Nelco buys 9% stake in Piscis Networks to expand satellite communications portfolio

New Delhi, June 7 –  Tata Group subsidiary, Nelco Limited, on Wednesday announced that it made a strategic investment in Mumbai-based satellite network software provider, Piscis Networks. Exchange filings made by Nelco, which offers satellite communications services to enterprises, revealed that the company has picked by a 9.09% stake in Piscis for a total investment of Rs.99,99,100, to acquire 1,111 equity shares in the company.

Nelco further disclosed in its filings that the company may acquire up to 30% of Piscis Networks, subject to gaining regulatory approval for its acquisition.

Shares of the company closed 0.95% down at Rs.711.80 apiece on Wednesday. The company’s stock had gained 2% during intraday trading following its investment announcement, but eventually closed lower than on Tuesday. The BSE Sensex index closed 0.56% up at 63142.96 points.

Nelco Limited offers satellite communications and network services to clients in various industries, including aviation and maritime services. The company is one of many partnerships around the world that are looking to capture a pie of a potentially growing global satellite communication services market, with other entities including Indian telecom operators Bharti Airtel (in partnership with UK satellite operator OneWeb) and Reliance Jio (in partnership with Luxembourg’s satellite operator, SES)..

In February last year, Nelco managing director and chief executive, Pradip J Nath, told Mint in an interview that LEO-based satellite broadband services will not look to rival on-ground telecom service providers, but instead cater to enterprises in areas where terrestrial networks are not predominantly available.

In a statement announcing the investment in Piscis, Nath said that the investment will be used by the company to “deliver comprehensive satellite communication solutions for our existing customers as well as new market segments.”

Nelco’s announcement comes as rival satellite service provider OneWeb completed the deployment of its 618 LEO satellites as part of a global constellation. The Bharti Enterprises-backed operator is expected to commence its satellite communications and network services in India – including in other markets – before the end of 2023.

 

Nelco share price jumps 16% as stock trades ex-dividend today
New Delhi, June 6

Nelco shares gained 16% on Tuesday’s trade. The stock is in focus today as the its trading ex-dividend for payment of Rs.2 per share final dividend to its eligible shareholders. Nelco share price opened at Rs.646.10 apiece on BSE.

Additionally, the Tata Group Company signed an agreement to invest an initial sum of Rs.99.99 lakhs in order to purchase a 9.09% share in Piscis Networks. It intends to raise its ownership stake in the business to at least 30%. According to information provided by the company in an exchange filing, the Tata Group company has entered into the agreement(s) with the promoters and other shareholders of Piscis Networks Private Ltd on June 5, 2023, in accordance with the board of directors’ approval, for an initial investment of Rs. 99,99,100 (Rupees ninety-nine lacs, ninety-nine thousand, and one hundred only) to subscribe 1,111 equity shares of Rs.10 each, representing 9.09% This will depend on any consents and approvals needed to comply with applicable laws.

On the technical front, Rajesh Bhosale – Equity Technical and Derivative Analyst, Angel One, said that the stock is up more than 4% (ex dividend adjusted) and has broken above its recent swing high of April Month, if prices continues to sustain the levels of 650 then it would confirm a breakout that can push prices towards 200sma at around 700 levels, bullish gap left today around 630 will now act as support.

At 9:46 IST, shares of the company touched an intraday high of Rs.687.15 and intraday low of Rs.640.05 on the BSE.

DATA ANALYSIS

The above equation shows the relationship of Nelco Limited with Nifty.
If Nifty rises by 1 unit, Asian Paint will rise by -55.964 units
t stat for b= -0.928 is  and the p value is 0.358  which is more than 0.05 so b=0, meaning Nifty does not impact Nelco Limited
R square is 0.01 , meaning  1 % of Nelco Limited share is explained by Nifty, meaning 9 % depends upon pther things like fundamentals.
F= 0.862576  , and p value is more than 0.05, so the model is not statistically significant at  5 % level.