Title: RELATIONSHIP OF DISH TV WITH NIFTY 50
Author: Deepali Jain
Introduction: Dish TV India is an Indian Subscription based satellite television provider based in Noida, Uttar Pradesh with Yes Bank as its biggest stakeholder.
Dish TV was launched by the Zee Group on 2 October 2003. It ranked #437 and #5 on the list of media companies in Fortune India 500 roster of India’s largest corporations in 2011.
Dish TV was also voted India’s most trusted DTH brand according to the Brand Trust Report 2014, a study conducted by Trust Research Advisory.
On 22 March 2018, Dish TV completed a merger with Videocon d2h, creating the largest DTH provider in India at the time of merger.
Objective: To calculate the Beta of Dish TV and find its significance
Literature Review/ Views and Reviews: To improve user engagement and enhance the interface and entertainment experience, Dish TV, a direct-to-home company, has introduced a voice-activated search feature to its mobile app called ‘My Dish TV App’. This pioneering feature allows users to interact with the app using voice commands, in addition to the existing search capabilities.
The combined operating revenue of the four private direct-to-home (DTH) companies –Tata Play, Bharti Airtel-owned Bharti Telemedia, Dish TV, and Sun Direct — declined nearly 10% to `11,072 crore in FY23, compared with `12,284 crore the previous fiscal year, according to data obtained from the four firms’ regulatory filings.
Furthermore, the four DTH companies have incurred a net loss of `2,143 crore, with Dish TV posting the biggest loss of `1,684 crore. All four DTH operators recorded losses in FY23, while three of the four DTH operators — aside from Dish TV — reported profits in FY22.
Data Collection: The data for Nifty 50and equity for Dish TV has been downloaded from nseindia.com for the period 1St December 2022 to 30th November 2023. The data was manipulated for the closing price of nifty and equity (Dish TV). The weekly returns of nifty and equity were calculatedw, ‘Y’ (Equity of Dish TV) was regressed on ‘X’ (Nifty 50) and a relationship between the two plotted.
Data analysis: Return on Dish TV = 0.6996 +2.12709 Return on Nifty 50
The above equation shows the relationship between Nifty and Dish TV
Nifty is an independent variable and Dish TV is dependent variable.
N=49, R2= 0.17, T-stat= 3.15, F-value=9.9276
Coefficient for Nifty (2.12709): This coefficient represents the estimated change in the dependent variable (presumably the response variable for Dish TV) for a one-unit increase in Nifty. However, the p-value is 0.0028314, which is lesser than the common significance level of 0.05. This suggests that the coefficient statistically significant at 1% level.
Therefore, based on this analysis, there is a statistically significant relationship between a one-unit increase in Nifty and the change in Dish TV.
The regression analysis provides strong evidence to suggest that a one-unit increase in Nifty is associated with a significant change in Dish TV. The coefficient for Nifty is statistically significant.
R2 is 0.17 which means that 17% of variances in Dish TV is explained by Nifty50 which means remaining 83% of variances is due to the variables which is not in the model.
Conclusion: As beta is 0.699 which is less than 1% so the company is good for the long-term investment.
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