RELATIONSHIP OF VMART WITH NIFTY50
Author: Vishakha Karamchandani
Introduction of Vmart:
Vmart is a chain of family lifestyle store in India which operates in family lifestyle products. The company has a wide range of product portfolio for women, kids, and men. Products are cosmetics, luggage, footwear, clothing, etc.
Objective: To calculate beta & find its significance
Views & Reviews: In the year 2022, Due to higher inflation and after covid effects Vmart was facing some challenging scenarios in sales and growth. However, company still managed to stable its margin growth and revenue growth for the same year. Vmart mostly operates in metro cities.
DATA COLLECTION: Data was collected from NSE website and range of timeline is 1st Dec 2022 to 30th Nov 2023 and downloaded for Friday closing price. Weekly return of Nifty is “X” and weekly return of Equity(Vmart) is “Y”. Apart from that, few things are taken from other websites and references are given below.
DATA ANALYSIS:
In the above equation shows the relationship between Nifty 50 and Vmart.
Return of Vmart is dependent variable and Return of Nifty 50 is independent variable. Negative sign means if Nifty 50 price rises, Vmart share price falls.
If Nifty 50 price rises 1 unit, Vmart share price will fall by 0.085 unit & vice versa. No of observation are 50.
2.0475 is t-test for b. The P value for which is 0.0464.
R square is 0.085 which means 8.5% of variances in Britannia share price are explained by Nifty 50 in other words 91.5% is error means 91.5% is due to the variables which are no in the model.
F is 0.04646. Overall model is statistically insignificant at 5% level.
CONCLUSION: Beta is 0.2883 is less than 1 it means Vmart is good for long term investment.
References: https://www.nseindia.com/
https://www.icicidirect.com/research/equity/v-mart-retail-ltd/7745