Author -> Joydip Mondal (Batch F1)
Roll No -> 21230023286
Company Name : Jindal Steel and Power Limited
Introduction:
Jindal Steel and Power Limited (JSPL) was established in 1990. The JSPL Foundation, the social arm of JSPL, was registered in July 2014 under the Societies Registration Act of 1860.Jindal Steel and Power Limited (JSPL) is an Indian steel company based in New Delhi. It was founded by Mr. Om Prakash Jindal. JSPL is a part of OP Jindal Group. Raigarh Pathalgaon Expressway Ltd. In terms of tonnage, it is the third largest private steel producer in India and only private player in India to produce rails.
Object:
In the regression analysis we performed to investigate the relationship between equities and the Nifty50, coefficient ‘B’ performs a crucial role. With each successive modification of one unit in the Nifty50, it captures the exact numerical impact on equity and offers a deep understanding of the dynamic interrelationship between these variables.
Reviews:
- Jindal Steel & Power is trading 1.11% upper at Rs 706.55 as compared to its last closing price. Jindal Steel & Power has been trading in the price range of 709.90 & 684.00. Jindal Steel & Power has given 20.14% in this year & -6.56% in the last 5 days.
Jindal Steel & Power has TTM P/E ratio 17.48 as compared to the sector P/E of 14.52.There are 23 analysts who have initiated coverage on Jindal Steel & Power. There are 12 analysts who have given it a strong buy rating & 4 analysts have given it a buy rating. 4 analysts have given the stock a sell rating.
The company posted a net profit of 1,387.82 Crores in its last quarter.
Listed peers of Jindal Steel & Power include JSW Steel (0.29%), Tata Steel (1.00%), Jindal Steel & Power (1.11%) etc.
Jindal Steel & Power has a 61.20% promoter holding & 37.33% public holding. The Mutual Fund holding in Jindal Steel & Power was at 2.90% in 30 Sep 2023. The MF holding has increased from the last quarter. The FII holding in Jindal Steel & Power was at 12.23% in 30 Sep 2023. The FII holding has decreased from the last quarter.
Link: https://www.livemint.com/market/market-stats/stocks-jindal-steel-power-share-price-nse-bse-s0003069
- JSP plans to incur a significant capex to enhance its crude steel capacity to 15.9mt from current 9.6mt and strengthen raw material integration and product enrichment. The planned capex could result in volume growth and a reduction in structural costs. With the planned capex, JSP will increase its flat steel capacity to 7.7mt from 2.2mt to cater to automotive and high-tensile steel, thereby enhancing its product mix. In 1QFY24, the company signed a mining lease for Gare Palma IV/6 and Utkal C, with total R&R of ~363mt and EC of ~7.4mt p.a. JSP has already entered the Gare Palma IV/6 mines and is in the final stage of entering Utkal-C mines. After the two mines become operational, they will ful-fill ~50% of JSP’s thermal coal requirement, thereby reducing its dependence on the import of coal and merchant mines. JSP over last few years has shifted its focus to high-margin VAP (~65% of sales). This has helped the company strengthen its product offering across the value chain and improve realizations.
Data Collection :
There are two different data that we are collected and then we start our analysis-
- Collecting the Nifty50’s historical data from January 11, 2022, to October 31, 2023, from the NSE India website. Only the Friday data are collected by shorting the total data once the complete data for the specified time period has been collected. Return values are gathered using the calculation of return based on the closing data of the Nifty 50 for the period.
- Collecting historical stock data (Jindal Steel and Power Limited) from the NSE India website between November 1, 2022, and October 31, 2023. Only the Friday data are collected by shorting the total data once the complete data for the specified time period has been collected. Using the return formula, return values are gathered based on the Nifty 50 closing data for that time period.
Equation:
Y = A + B * X
Y = (-0.6190) + 0.8664 * X
Interpretation:
The above equation, shows us the relationship between Nifty50 and Equity. Here Nifty50 is the independent variable and the Equity is the dependent variable. Here we get the value of A is negative that means when Nifty50 increase the equity is decrease and when Nifty50 decrease the Equity is increase. If the Nifty50 increase by 1 unit the Equity decrease by 0.8664 paisa. The t-Stat for B(The co-efficient of Nifty50) is 2.0768 and the P value is 0.0433, which means Equity is statically significant for Nifty50 at 1% significant level. And we also conclude that our Significance f value is lesser that 0.05 standard value, which means we consider the alternate hypothesis. That means the two variable that we take are very much depend on each other.
Here the no of observation is 49 and the value of R2 is 0.0841 which means if 1% of independent variable Nifty50 change happen then 8.41% of change is happen on the dependent variable Equity.
Here the standard error is 41% . This is happen due to the variable which are not in the model.
Here F value is the 4.313194 and the P value is 0.0433 which means overall model is statistically significant at 1% significant level.
Conclusion :
After doing all the analysis we conclude that our B value is 0.8664 which is less than 1 and it’s a good sign for doing long term investment.