Headline : Relationship of ADANI GREEN with NIFTY
Author : Aditya Mehta
Introduction : Adani Green Energy Limited (AGEL) is India’s largest and world’s leading renewable energy solutions partner enabling the clean energy transition. AGEL develops, owns, and operates utility-scale grid-connected solar, wind and hybrid renewable power plants.
With a locked-in growth trajectory up to 20.4 Gigawatt (GW), AGEL currently has an operating renewable portfolio of 8.4 GW, the largest in India, spread across 12 states, offsetting over 41 million tonnes of CO2 emissions cumulatively.
Objective : to calculate beta and find its significance
View and review : Billionaire Gautam Adani’s renewable energy company Adani Green is targeting to set up 45 gigawatts (GW) of renewable energy capacity by 2030, as it looks to cut emissions and help India meet its carbon neutrality target. The target is to take their current capacity to 45,000 MW or 45 GW by 2030.
Data collection : nseindia.com
Data analysis : ADANIGREEN SHARES = -0.456 + 3.348 NIFTY
n= 50, R square= 0.641, F=23,45
The above equation shows the relationship of ADANIGREEN with Nifty
If Nifty rises by 1, then ADANIGREEN will rise by 3.654 units
t stat for b is 4.292 and the p value is 8.754 which is more than 0.05, so b=0, which means nifty does not impact ADANIGREEN shares
R square is 0.64 meaning 42% of ADANIGREEN shared is explained by NIFTY, remaining 58% depends on other things like fundamentals
F = 23.45 and p value is more than 0.05 so the model is not statistically significant at 5% level.
Conclusion : As beta (1.892) which is more than 1 , so good for short term investments
References : https://www.nseindia.com/get-quotes/equity?symbol=ADANIGREEN