The relationship of POLYCAB with nifty 50
Author– Prakhar Srivastava.
Introduction – Polycab is engaged in the business of manufacturing and selling wires and cables and fast-moving electrical goods ‘FMEG’ under the ‘POLYCAB’ brand. Apart from wires and cables, we manufacture and sell FMEG products such as electric fans, LED lighting and luminaires, switches and switchgear, solar products, and conduits & accessories.
Our promoters collectively have more than four decades of experience among them. Our Company was incorporated as ‘Polycab Wires Private Limited’ on January 10, 1996, at Mumbai as a private limited company under the Companies Act, 1956.
Objective – to calculate BETA and find its significance.
Views and Reviews– Polycab has emerged as a clear winner in the Indian wire and cable sector, capitalizing on the growing demand for electrical infrastructure due to increased urbanization and infrastructure development.
- Polycab has emerged as a clear winner in the Indian wire and cable sector, capitalizing on the growing demand for electrical infrastructure due to increased urbanization and infrastructure development.
- The company’s strong brand recognition, wide product portfolio, and efficient distribution network have solidified its market position.
- Consistent financial performance and positive growth outlook fuel optimism for further potential in the future.
Data collection – data is collected from https://www.nseindia.com/reports-indices-historical-index-data, https://www.nseindia.com/get-quotes/equity?symbol=POLYCAB#info-historicaldata from 1 dec 2022 to 30 nov 2023.
Data analysis
Regression equation: Return of polycab = 21891.88 -0.97242 (return of nifty 50)
R square = 0.70062 (10.598)
F = 112.3313
Interpretation- in the above equation shows the relationship between nifty50 and polycab share . return of polycab is dependent variable and return of nifty 50 is dependent variable. Negative sign means if nifty 50 rises, polycab share price will fall by 0.97242 unit and visa versa. . No of observation are 50. Figure which is written in bracket 10.598 is t test for b. The P value for which is 3.65E-14 which means Nifty 50 is statistically insignificant at 5% level. R square is 0.70062 which means 70% of variances in polycab share price are explained by Nifty 50 in other words 30% is error means 30% is due to the variables which are no in the model. F is 112.3313 Overall model is statistically insignificant at 5% level.
Conclusion : beta is 21891.88 is less than means polycab is good for short term investment.
Reference:
https://www.nseindia.com/reports-indices-historical-index-data, https://www.nseindia.com/get-quotes/equity?symbol=POLYCAB#info-historicaldata