Mahindra & Mahindra Limited (M&M)
TITLE: Relationship of Mahindra & Mahindra Limited (M&M) with nifty fifty and to calculate beta.
Author : Monika Singh
Introduction:
Mahindra & Mahindra Limited (M&M) is an Indian multinational automotive manufacturing corporation headquartered in Mumbai. It was established in 1945 as Mahindra & Mohammed and later renamed Mahindra & Mahindra. Part of the Mahindra Group, M&M is one of the largest vehicle manufacturers by production in India. Its unit, Mahindra Tractors, is the largest manufacturer tractors in the world by volume. It was ranked 17th on a list of top companies in India by Fortune India 500 in 2018.Its major competitors in the Indian market include Maruti Suzuki India and TataMotors.
Objective: Calculate beta of Mahindra & Mahindra Limited (M&M) and see it’s significance.
Literature review :
• Shinde Govind P. & Dubey Manisha (2011) the study has been conducted considering the segments such passenger vehicle, commercial vehicle, utility vehicle, two and three wheeler vehicle of key players performance and also analyze SWOT analysis and key factors influencing growth of automobile industry.
• Dawar Varun (2012) Study to analyze the effect of various fundamental corporate policy variables like dividend, debit, capital expenditure on stock prices of automobile companies of India. The study tends that dividend & investment policy are relevant and capital structure irrelevant to stock prices.
Data collection : Data for nifty, eqity Mahindra & Mahindra Limited (M&M) site side, from 1st nov
2022 to 31st oct 2023 weekly return of nifty (x) equity (y) ,(y) was regress on (x).
Data analysis : Equation M&M.NS = 0.542 + 0.299* Ninfty n = 51, R2 = 0.017, F(1,48) = 0.85 The above equation shows the relationship of Mahindra & Mahindra Limited (M&M) If nify rises by 1 unit, Mahindra & Mahindra Limited (M&M) will rise 0.542 unit ,tstat for b is 1.220 and then P value=0.22 which is more than 0.05 so B=0, meaning nifty fifty does not impact Mahindra & Mahindra Limited (M&M) shares R square is 0.017 meaning 17%of Mahindra & Mahindra Limited (M&M) share is expilained by ninfty, 95% depends upon other things like fundamental F=0.85,and P value is more than 0.05, so the model is not stastically at 5% level.
Conclusion : A beta (0.542 )is less than 1,so good for long term investment.
References : “Mahindra appoints Anish Shah as the MD and CEO, effective from April 2”. Live mint.26 March 2021. Retrieved 12 July 2021.
“How we got here”. Mahindra Corporate website. Retrieved 30 August 2019