Title: Relationship Bajaj Auto Limited with Nifty Fifty and to Calculate Beta.
Author: Sunidhi Mallick
Introduction: BAJAJ Auto Limited, a flagship company of the Bajaj Group, was incorporated under the Companies Act, 1956, with registered office at Mumbai – Pune Road, Akurdi, Pune – 411 035.
Manufacturing facilities are located at Chakan near Pune, Waluj near Aurangabad, and Pant Nagar in Uttarakhand. In the fiscal 2022-2023, the Company recorded landmark sales of over five million vehicles clocking the highest ever (1) turnover of Rs. 37,609 crores and (2) consolidated profit after tax of Rs.6,060 crores. The Company is India’s largest exporter of motorcycles, three-wheelers, and quadricycles, with over two million unit sales to 79 countries in 2018-2019.
The Company presently holds 47.99% of KTM AG of Austria, through its 100% subsidiary Bajaj Auto International Holdings BV Netherlands. KTM AG achieved the highest-ever sales of 261,529 units in the last fiscal (CY18) out of which 100,000 motorcycles were manufactured at the Chakan Plant.
The Company with an in-house, Govt. recognized R & D Centre has introduced Dominar, Pulsar, Discover, Boxer, Platina motorcycles, RE, Maxima three-wheelers, Qute quadricycles, and patented technologies – DTS-I and ExhausTEC.
The Economic Times has conferred “Company of the Year” award to the Company in the year 2010-11.
Objective: To calculate the Beta of Bajaj Auto Limited and see its significance
Literature Review/ Views and Reviews: Bajaj Auto Limited, a prominent player in the Indian two-wheeler and three-wheeler manufacturing sector, has garnered attention for its dynamic market presence and innovative product portfolio. With a rich history and a focus on technological advancements, the company has established itself as a global player, competing with other major manufacturers. Bajaj’s foray into international markets, strategic collaborations, and a commitment to corporate social responsibility further contribute to its multifaceted corporate identity.
However, Bajaj Auto Limited also faces challenges, such as adapting to evolving industry trends and regulatory changes. Consumer reviews and feedback play a crucial role in shaping the company’s reputation, making it imperative for Bajaj Auto to continually address customer concerns and enhance product offerings. A comprehensive literature review should delve into these facets, providing a nuanced understanding of Bajaj Auto Limited’s position in the industry and its strategies for sustained growth.
Data Collection: The data for nifty and equity for Baja Auto Limited has been downloaded from finance.yahoo.com for the period 1 November 2022 to 31 October 2023. The data was manipulated for the closing price of nifty and equity. The weekly returns of nifty and equity were found.
Data analysis: Coefficient for Nifty (2.15406947): This coefficient represents the estimated change in the dependent variable (presumably the response variable for Bajaj Auto Limited) for a one-unit increase in Nifty. However, the p-value is 0.40347263, which is greater than the common significance level of 0.05. This suggests that the coefficient is not statistically significant, and you cannot reject the null hypothesis that the coefficient is zero.
Therefore, based on this analysis, there is no statistically significant relationship between a one-unit increase in Nifty and the change in Bajaj Auto Limited. The low R-squared value also indicates that the model does not explain much of the variability in Bajaj Auto Limited based on the given independent variable.
Conclusion: “The regression analysis does not provide strong evidence to suggest that a one-unit increase in Nifty is associated with a significant change in Bajaj Auto Limited. The coefficient for Nifty is not statistically significant, and the low R-squared value indicates that the model does not explain much of the variability in Bajaj Auto Limited based on the given independent variable. Further investigation or refinement of the model may be necessary to better understand the relationship between these variables.”