AUTHOR:- MOHIT SEN
INTRODUCTION:-
Maruti Suzuki India Limited (MSIL), a subsidiary of Suzuki Motor Corporation, Japan, is India’s largest passenger car maker. Maruti Suzuki is credited with having ushered in the automobile revolution in the country. The Company is engaged in the business of manufacturing and sale of passenger vehicles in India. Making a small beginning with the iconic Maruti 800 car, Maruti Suzuki today has a vast portfolio of 16 car models with over 150 variants. Maruti Suzuki’s product range extends from entry level small cars like Alto 800, Alto K10 to the luxury sedan Ciaz. Other activities include facilitation of pre-owned car sales fleet management, car financing. The Company has manufacturing facilities in Gurgaon and Manesar in Haryana and a state of the art R&D centre in Rohtak, Haryana.
The Company, formerly known as Maruti Udyog Limited, was incorporated as a joint venture between the Government of India and Suzuki Motor Corporation, Japan in February, 1981. Presently, Suzuki Motor Corporation owns equity of 56.2%. The Company’s shares are traded on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
OBJECTIVE:- To calculate beta and its significance
VIEWS AND REVIEWS:-
- Shri Chandra Bhushan Singh (IAS), Transport Commissioner, Government of Uttar Pradesh said, “We are extremely delighted to partner with Maruti Suzuki in making the issuance of driving license more scientific and transparent. Under the MoA, test tracks at Driver Training and Testing Institutes (DTTIs) at Ayodhya, Gorakhpur, Mathura, Prayagraj and Varanasi will be automated. This will make our roads safer, help bring down road accidents and save lives.”
- Shashank Srivastava, Senior Executive Officer, Marketing & Sales, Maruti Suzuki India Limited said, “Maruti Suzuki takes immense pride in its association with Indian Navy’s ‘Khamree Mo Sikkim’ drive that embodies the essence of India’s indomitable spirit. Our association with the Indian Navy underscores our unwavering dedication to fostering progress in the Northeastern region and nurturing the potential of our nation’s youth. As the expedition unfolds, I extend my best wishes to the officers, and I am confident that our purpose-built SUVs will make this journey both thrilling and rewarding.”
“This initiative is a collaborative effort to contribute to the progress and well-being of Northeast India. Our primary goal is to enlighten and inspire the youth about the abundant prospects within the Navy. Moreover, this initiative seeks to cultivate and fortify our connections within the local communities of the region.” Said Commodore Mohit Goel, Commanding Officer, INS Shivaji, Indian Navy.
DATA COLLECTION:-
Collecting the historical data of Nifty50 from the website of NSE India from 01/11/2022 to 31/10/2023. After collection of the entire data of the given period only the data of Friday’s are taken by sorting the whole data. According to the closing data of Nifty 50 of the period, return values are collected using the formula of return.
Collecting the historical data of Maruti suzuki equity from the website of NSE India from 01/11/2022 to 31/10/2023. After collection of the entire data of the given period only the data of Friday’s are taken by sorting the whole data. According to the closing data of Nifty 50 of the period, return values are collected using the formula of return.
DATA ANALYSIS:-
Maruti Suzuki = 0.21+0.79 Nifty
N = 49, R square = 0.19, F =11.74 , P value = 0.00
The above equation shows us the relation between Nifty 50 index price and Maruti Suzuki equity price. Maruti Suzuki is dependent variable and Nifty 50 is independent variable. The “T” sign means the Nifty rises the Maruti Suzuki also rises, vice versa. If Nifty rises by 1 unit the Maruti Suzuki rises by 79 paisa.
T state for B (Coefficient of Nifty) is 0.79 and the P value is 0.00 which means Nifty is statistically significant for Maruti Suzuki at one percent level.
Number of observations are 49
R square is 0.19 which means 19% of Maruti Suzuki is explained by Nifty. Meaning 81% is the error due to the variable which are not in the model.
F is 11.74 and the P value of which is 0.00 overall model is statistically significant at 1% level.
CONCLUSION:- Beta is 0.79 is less than 1 it means Maruti suzuki is good for long term investment.
REFERENCES:- https://www.nseindia.com/reports-indices-historical-index-data
https://www.nseindia.com/get-quotes/equity?symbol=MARUTI