Student Name – Karan Malhotra
Batch – F1
Roll Number – 21230023355
Intro: KajariaCER is a leading name in the ceramics industry, renowned for its innovative and high-quality tiles. With a legacy spanning over three decades, the company has established itself as a trailblazer in crafting exquisite and durable tiling solutions. Known for its commitment to cutting-edge technology and trendsetting designs, KajariaCER continues to redefine spaces with its extensive range of tiles for homes, offices, and commercial spaces.
Objective: To calculate Beta and its significance.
Views and Reviews: Kajaria Ceramics Ltd is primarily engaged in manufacturing and trading of ceramic and vitrified tiles in India. It is the largest manufacturer of ceramic/ vitrified tiles in India and 8th largest in the world.
Data collection: Nifty and KajariaCER’s closing price was collected from NSE website. The weekly return of Nifty is termed as “X” and weekly return of KajariaCER is termed as “Y.
Data Analysis:
Equation: Y=0.2443+0.9872x
Interpretation: The above equation shows the relation between Nifty50 and KajariaCER.
Return of KajariCER is dependent variable and return of Nifty50 is independent variable.
Positive sign means if Nifty50 rises by 1 unit then share price of KaJariaCER will also rise by 0.98 and vice-versa.
Number of observations are 50.
27.39 is the t-stat for Y, the p-value for which is 0.00.
R square is 0.9398 which means 93% of variances in KajariaCER are explained by Nifty.
F is 750.42, p-value for this is 0.00 which means model is statistically significant at 1% level.
Conclusion: Beta is 0.2443 which is less than 1, it means that KajariaCER is good for long-term investment.
Reference:
https://www.nseindia.com/