TITLE : RELATIONSHIP OF ADANI POWER LTD. WITH NIFTY FIFTY AND TO CALCULATE BETA
AUTHOR : ANJALI SINGH
INDRODUCTION : Adani Power Limited is a holding company. The Company is a thermal power producer in India with a power generation capacity of approximately 12,450 megawatts (MW) comprising 12,410 MW of thermal power plants and a 40 MW solar power project. Adani Power Limited (APL) is a private thermal power producer in India. It is the largest private thermal power producer in India. APL is a subsidiary of the Adani Group and is based in Khodiyar in Ahmedabad, India. The Company was incorporated as Adani Power Limited on August 22, 1996 and received a certificate of commencement of business on September 4, 1996. The Company became a private limited company on June 3, 2002 and the name of the Company was subsequently changed to Adani Power Private Limited. The RoC issued a fresh certificate of incorporation on June 3, 2002.The company is promoted by Gautam S. Adani, Rajesh S. Adani and Adani Enterprises Limited .The company was, thereafter, converted into a public limited company on April 12, 2007 and the name of the company was changed to Adani Power Limited. Upon ceasing to be a private limited company, the word private was deleted through a special resolution at the EGM of the company held on March 28, 2007. The fresh certificate of incorporation consequent to the change of name was granted by the Ro C to the Company on April 12, 2007.
OBJECTIVE: TO CALCULATE BETA OF ADANI POWER LTD AND SEE ITS SIGNIFICANCE.
LITERATURE REVIEWS :
ADANI POWER LTD
1)Adani Power’s key activities include:
- Power generation: The company focuses on efficient and reliable power generation using a mix of thermal and renewable energy sources.
- Operations and maintenance: Adani Power ensures the smooth functioning of its power plants through regular maintenance and operational activities.
- Customer relationship management: The company maintains strong relationships with its customers, addressing their needs and providing timely support.
2) Adani Power’s business model contribute to its overall success in the following ways:
- Value proposition: By providing reliable and affordable power, Adani Power attracts and retains customers, leading to a strong market position.
- Target market: Focusing on industrial and commercial customers allows Adani Power to tap into a lucrative market segment with high energy demands.
- Revenue stream: Long-term PPAs provide a stable revenue stream, while surplus power sales and trading activities offer additional income sources.
- Key resources: Owning power plants and a robust infrastructure enables Adani Power to meet customer demands and expand its operations.
- Key activities: Efficient power generation, operations, and customer relationship management ensure smooth operations and customer satisfaction.
DATA COLLECTION :
THE DATA FOR NIFTY AND EQUITY OF ADANI POWER LTD .HAS BEEN COLLECTED FROM YAHOO FINANCE FROM 1ST NOVEMBER,2022 TP 31ST OCTOBER2023.DATA WAS MANUPILATED TP CALCULATE THE FRIDAY CLOSING PRICE.
DATA ANALYSIS
Adani power Ltd Share= 3.88+0.70
n= 48, R square= 0.1719, F = 9.7568
Above equation shows the relationship of the company ‘Adani power Limited’ with ‘Nifty.’ t stat for b is 3.123, p value is 0.00305, which is less than 0.05 so, b is not equal to 0. Meaning Nifty does impact ‘Adani power Limited’.
R^2 = 0.1719 Meaning 17% of ‘Adani power limited’ share is explained by Nifty and 83% depends upon other things like fundamentals.
F = 9.7568 And p = 0.00305 which is less than 0.05, hence, the model is statistically significant at the 5% significance level, further Nifty does affect the share significantly.
CONCLUSION :
The results indicate that (Beta) i.e. b = 1.893 which is more than 1; so it has an highly correlated relationship with the market.
REFRENCES :
https://www.nseindia.com/get-quotes/equity?symbol=ADANIPOWER
https://www.moneycontrol.com/india/stockpricequote/power-generationdistribution/adanipower/AP11
https://adityatrading.in/posts/adani-power-limited-research-report/
