Title: Relationship of Shree Cement with Nifty50.

Author: Shubhi Tripathi.

Introduction: Shree Cement is an Indian cement manufacturer, founded in Beawar, Rajasthan, in 1979. Now headquartered in Kolkata, it is one of the biggest cement makers in Northern India. Shree Cement has moved in the last two decades from having 2 million tonne (mt) production capacity to becoming the country’s third largest cement player, with an installed capacity of 43.3 mt in India and 47.4 mt overseas.

Objectives: To calculate beta and find its significance.

Views & Reviews: Shree Cement Limited is a Great Place to Work-Certified organization. The company has created a Great Place to Work FOR ALL their employees by excelling on the 5 dimensions of a High-Trust, High-Performance Culture – Credibility, Respect, Fairness, Pride and Camaraderie. 

Data collection:

Data is downloaded from https://www.nseindia.com/get-quotes/equity?symbol=SHREECEM for 1-12-2022 to 30-11-2023 period.

Regression Equation: Y=47874.13538−1.299855408×X Variable 1

Interpretation: In the above equation shows the relationship between Nifty 50 and Shree Cement limited share. Return of Shree Cement is dependent variable and Return of Nifty 50 is independent variable. The intercept is 47874.13538, the estimated Y when X Variable  1 is zero. The slope is -1.299855408, suggesting a negative relationship between Y and X Variable 1. The p-value 7.81E-10

indicates a highly significant relationship. The R-square value (0.5562) implies the model explains 55.62% of Y variability. The model provides a statistically meaningful fit to the data.

Conclusion: Beta is -1.29986 which is less than 1 it means Shree Cement is good for long term investment.

 

 

References:  

https://www.shreecement.com/

https://www.nseindia.com/reports-indices-historical-index-data

https://www.nseindia.com/get-quotes/equity?symbol=SHREECEM