Title: Relationship of ADITYA BIRLA CAPITAL with NIFTY50.
Author: ANUBHAV SINGH
BATCH – F4
ROLL NO- 21230023513
Intro: About Aditya Birla Capital Limited
.Aditya Birla Capital Limited (“ABCL”) is the holding company for the financial services businesses of the Aditya Birla Group. ditya Birla Capital Limited (ABCL) is the holding company for the financial services businesses of the Aditya Birla Group. With subsidiaries/JVs that have a strong presence across Protecting, Investing and Financing solutions, ABCL is a financial solutions group that caters to the diverse needs of its customers across their life cycle. Powered by about 42,000 employees, the businesses of ABCL have a nationwide reach with over 1,403 branches, more than 2,00,000 agents/channel partners and several bank partners.
. In December 2014, the company was converted from a private limited company to a public limited company, and was renamed as ‘Aditya Birla Financial Services Limited’.
Objective: To calculate Beta and its significance.
Views and Reviews: Globally, last two years were most difficult years for the fashion retail industry. The disruption caused by the first wave of COVID was further exacerbated by an even stronger 2nd wave in 2021. This resulted in massive value destruction across the entire apparel industry. And yet, your Company has emerged stronger, by remaining a step ahead with strategic technology interventions in driving sales and aggressive expansion to cater to growing demand across the country. Your Company’s revenue for FY22 stood at ` 8,136 Cr, with a 55% growth as compared to last year’s ` 5,249 Cr. It recorded an EBIDTA margin of 14.8 percent, despite the continuing headwinds caused by the pandemic. In FY 22, your Company also announced a tie-up with one of India’s youngest next-gen designer Masaba Gupta. In line with expanding the portfolio to cover new emerging segments, Your Company made a bold foray into the growing sportswear space through signing up for acquiring the India business of Iconic global sportswear brand, Reebok.
Data collection: Nifty and ADITYA BIRLA CAPITAL closing price was collected from NSE website. Weekly return of Nifty is termed as “X” and weekly return is Aditya birla capital termed as “Y”. Besides that, a few other things written in this report are taken from other websites and its information is provided in references.
Data Analysis:
Equation: Y=0.080+1.643x
Interpretation:
The above equation shows the relation between Nifty50 and ADITYA BIRLA CAPITAL
Return of ADITYA BIRLA CAPITAL is dependent variable and return of Nifty50 is independent variable.
Positive sign means if Nifty50 rises by 1 unit then share price of Aditya birla capital will also rise by 0.3624 and vice-versa.
Number of observations are 49.
5.1690 is the t-stat for Y, the p-value for which is 4.74
R square is 0.36244 which means 36% of variances in Aditya birla capital are explained by Nifty.
F is 26.7188, p-value for this is 4.74which means model is statistically significant at 1% level.
Conclusion: Beta is 0.08077 which is less than 1, it means that ADITYA BIRLA CAPITAL is good for long term investment.
Reference: