Intro: Madura Garments was established in 1988, acquired by the Aditya Birla Group in 1999 and was renamed Madura Fashion & Lifestyle in 2010.The garment activities of group holding company Aditya Birla Nuvo and another group entity, Madura Garments Lifestyle Retail, would be demerged into listed firm Pantaloons Fashion & Retail Ltd (PFRL) under the scheme of arrangement. Madura owns and retails brands such as Louis Philippe, Van Heusen, Allen Solly, Peter England. In 2012, Aditya Birla Nuvo acquired major stakes in Pantaloons. In 2015, Pantaloons was renamed Aditya Birla Fashion and Retail Ltd
Objective: To calculate Beta and its significance.
Views and Reviews: Aditya Birla Fashion & Retail has an overall rating of 3.9 out of 5, based on over 474 reviews left anonymously by employees. 74% of employees would recommend working at Aditya Birla Fashion & Retail to a friend and 73% have a positive outlook for the business. This rating has decreased by -3% over the last 12 months.
Data collection: Nifty and Aditya Birla Fashion closing prices were collected from NSE website and Yahoo finance. Weekly return of Nifty is termed as “X” and weekly return of South Indian Bank is termed as “Y”. Besides that, a few other things written in this report are taken from other websites and its information is provided in references.
Data Analysis:
Equation: Y= (-0.008295739) + 1.618852182(x)
Interpretation:
The above equation shows the relation between Nifty50 and Aditya Birla Fashion.
Return of Aditya Birla Fashion is dependent variable and return of Nifty50 is independent variable.
Positive sign means if Nifty50 rises by 1 unit then share price of Aditya Birla Fashion will also rise by 0.35 and vice-versa
Number of observations are 48
5.07 is the t-stat for Y, the p-value for which is 6.92769E-06.
R square is 0.35 which means 35% of variances in Aditya Birla Fashion are explained by Nifty.
Here the standard error is 3%. This is happened due to the variable which are not in the model.
Conclusion: Beta is which is less than 1, it means that Aditya Birla Fashion is good for long term investment.
Reference:
https://www.livemint.com/market/market-stats/stocks-south-indian-bank-share-price-nse-bse-s0003300
https://en.wikipedia.org/wiki/South_Indian_Bank
