Relationship of Suzlon Energy Ltd with nifty 50
Author: Sachin Gupta
Batch: F 4
Roll No: 21230023798
Introduction:
Suzlon Energy Ltd is a well-known Indian multinational corporation specializing in renewable energy solutions, specifically wind power. Suzlon, founded in 1995, has emerged as a global pioneer in the wind energy sector, greatly contributing to India’s and the world’s shift to sustainable and renewable energy sources.
Suzlon, based in Pune, India, has a diversified portfolio that includes designing, developing, manufacturing, and servicing wind turbines and related components. The company’s innovative technologies, commitment to environmental stewardship, and extensive operational presence in multiple countries have cemented its position as a key player in the renewable energy landscape, aiming to address the pressing challenges of climate change and energy security.
Objective:
To determine Suzlon Energy Ltd.’s beta and analyze its significance.
Views and reviews:
Suzlon Group Chairman and Managing Director Tulsi R. Tanti
“The crises of the recent past have triggered a heightened acceptance of ‘Climate Emergency’ and has put renewable energy firmly at the center of how the world is looking at its future, mainly in the global energy transition.”
The Suzlon Group has always responded to the ever-changing environment and ecosystems with agility and sustainability. Because of the growing acceptance of the need to reduce carbon emissions, the renewable energy sector has become more progressive and enticing. Despite the hurdles provided by the COVID-19 epidemic, global renewable energy installations reached a new high in FY 22. Except for huge hydro projects, the renewable energy sector saw massive global investments of US $303.5 billion for the low-carbon energy transition. During these times, this has been one of the most significant investments across industry sectors.
Data collection:
Data for this period (01.12.2022 to 30.11.2023) was obtained from the NSE India website and Weekly Closing Prices. Where discovered, weekly Nifty returns, and weekly Suzlon Energy Ltd returns were calculated (Nifty returns as X and equity returns as Y) Y was a regression on X.
Data analysis:
Regression Equation: Y= -1.9189+0.9713(X)+e
(Suzlon Energy Ltd = -1.9189+0.9713(Nifty 50) + e)
T stat for b = -1.648
R2 = 0.0768
F= 149.46
– Regression Model: Suzlon Energy Ltd = -1.9189 + 0.9713(Nifty 50) + e
– Coefficient for Nifty 50 : -1.648
– Indicates that, on average, Suzlon Energy Ltd stock returns decrease by approximately 1.648 units for each one-unit increase in Nifty 50.
– R 2 Value: 0.0768
– Represents the proportion of variation in Suzlon Energy Ltd returns explained by Nifty 50.
– Only 7.68% of the variability in Suzlon Energy Ltd returns is accounted for by changes in Nifty 50.
– F-Statistic: 149.46
– Indicates the overall statistical significance of the regression model.
– Suggests that at least one independent variable (Nifty 50) is making a meaningful contribution to the model.
– Interpretation:
– Negative relationship between Suzlon Energy Ltd stock returns and Nifty 50.
– The model as a whole is statistically significant.
– Limited explanatory capacity of Nifty 50 alone, as reflected in the low (R^2) value.
– Limitation:
– Lack of t-statistics and p-values for individual coefficients restricts a detailed assessment of the statistical significance of each variable.
Conclusion:
The Beta of Suzlon Energy Ltd Is < 1 So the Company Is Good for long-term investment.
References:
https://groww.in/stocks/suzlon-energy-ltd
