Title: Relationship of Havells India with Nifty50.
Author: Harsh Siroya
Introduction : Havells India Limited is an Indian multinational electrical equipment company, based in Noida. It was founded by Haveli Ram Gandhi, later sold to Qimat Rai Gupta who was his distributor. The company manufactures home appliances, lighting for domestic, commercial and industrial applications, LED lighting, fans, modular switches and wiring accessories, water heaters, industrial and domestic circuit protection switchgear, industrial and domestic cables and wires, induction motors, and capacitors among others. Havells owns brands like Havells, Lloyd, Crabtree, Standard Electric, Reo and Promptec.
Objectives: To calculate beta and find its significance.
Views & Reviews:
Havells electrifies investors with its brand dominance (No. 1 in India), diversified product portfolio (fans, appliances, etc.), and consistent growth (15% YTD gain), but its premium price tag (₹1,311, high P/E & P/B) throws a switch on excitement. Weigh its healthy financials (strong momentum, recent analyst upgrades) against potential headwinds like slowing growth and inefficient capital utilization before plugging in. Do your due diligence before flipping the switch on this investment.
Data Analysis:
Equation: Y= 0.067559+ 0.0791398x
Interpretation:
The above equation shows the relation between Nifty50 and Havells India Ltd.
Return of Havells Limited is dependent variable and return of Nifty50 is independent variable.
Positive sign means if Nifty50 rises by 1 unit then share price of Havells India Limited will also rise by 0.003821110 and vice-versa.
Number of observations are 49.
0.42459519 is the t-stat for Y, the p-value for which is 0.67306922
R square is 0.003821110 which means 0.38% of variances in Havells India Limited are explained by Nifty.
F is 0.1802810, p-value for this is 0.67306922 which means model is statistically significant at 1% level.
Conclusion: Beta is -0.067559697 which is less than 1, it means that Havells India Limited is good for long term investment.
References:
https://en.wikipedia.org/wiki/Havells
https://www.nseindia.com/reports-indices-historical-index-data ,
https://www.nseindia.com/get-quotes/equity?symbol=HAVELLS