Title: Relationship between Prestige Estate Projects Limited And Nifty50.
Author: Priya Pathak
Introduction: Prestige Estate Projects Ltd has over two decades of experience in real estate development, and is one of the leading real estate development companies in south India. The company has completed 142 real estate projects They have developed a diversified portfolio of real estate development projects focusing on the projects in residential (including apartments, villas, plotted developments, and integrated townships), commercial (including corporate office blocks, built-to-suit facilities, technology parks, and campuses and SEZs), hospitality (including hotels, resorts, and serviced accommodation) and retail (including shopping malls) segments of the real estate industry. Currently, the company has 33 ongoing Projects which comprise 10 residential projects,16 commercial projects, four hospitality projects, and three retail projects.
Objectives: To calculate beta and find its significance.
Views & Reviews: The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Prestige Estates Projects Ltd is likely to Rise in the short term.
Data collection:
Data is downloaded https://www.nseindia.com/get-quotes/equity?symbol=PRESTIGE , https://www.nseindia.com/reports-indices-historical-index-data for the 1-12-2022 to 30-11-2023 period.
Data analysis:
SUMMARY OUTPUT:
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Regression Statistics |
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Multiple R |
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R Square |
0.027275564 |
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Adjusted R Square |
0.0065793 |
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Standard Error |
5.178572583 |
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Observations |
49 |
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ANOVA |
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df |
SS |
MS |
F |
Significance F |
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Regression |
1 |
35.34287807 |
35.34287807 |
1.317897933 |
0.256779381 |
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Residual |
47 |
1260.427858 |
26.817614 |
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Total |
48 |
1295.770736 |
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Coefficients |
Standard Error |
t Stat |
P-value |
Lower 95% |
Upper 95% |
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Intercept |
-1.156535816 |
0.742824551 |
-1.556943447 |
0.126192727 |
-2.65090606 |
0.337834427 |
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X Variable 1 |
0.608879911 |
0.530384418 |
1.147997358 |
0.256779381 |
-0.458115912 |
1.675875733 |
Regression Equation:
Return of Prestige Estate Project = -1.156535816 – 0.608879911 (Return of Nifty 50)
R Square = 0.027275564, (1.147997358)
F = 1.317897933
Interpretation: The above equation shows the relationship between Nifty 50 and Prestige estate project share. Return of Prestige estate project is a dependent variable and Return of Nifty 50 is an independent variable. The negative sign means if the Nifty 50 price rises, Prestige Estate Project share price falls. If the Nifty 50 price rises 1 unit, Prestige Estate Project share price will fall by 0.608879911 unit & vice versa. No of observation are 49. The figure which is written in bracket 1.147997358 is t test for b. The P value is 0.256779381 which means Nifty 50 is statistically insignificant at the 5% level. R square is 0.027275564 which means 2.72% of variances in Prestige Estate Project share price are explained by Nifty 50 in other words 97.28% is error means 97,28% is due to the variables which are not in the model. F is 1.317897933. The overall model is statistically insignificant at a 5% level.
Conclusion: Beta is -1.156535816 is less than 1 which means Prestige Estate Project is good for long-term investment.
References:
https://www.nseindia.com/get-quotes/equity?symbol=PRESTIGE , https://www.nseindia.com/reports-indices-historical-index-data , https://www.moneycontrol.com/india/stockpricequote/constructioncontracting-real-estate/prestigeestatesprojects/PEP02
