AUTHOR:- Ashutosh Kumar Chowrasia
INTRODUCTION:-
Ashok Leyland is an Indian multinational automotive manufacturer, with their headquarters in Chennai. It is now owned by the Hinduja Group. It was founded in 1948 as Ashok Motors which became Ashok Leyland in the year 1955 after collaboration with British Leyland. Ashok Leyland is the second largest manufacturer of commercial vehicles in India (with a market share of 32.1% in 2016), the third largest manufacturer of buses in the world, and the tenth largest manufacturer of trucks.
Ashok Leyland is an Indian multinational automotive manufacturer, with their headquarters in Chennai. It is now owned by the Hinduja Group. It was founded in 1948 as Ashok Motors which became Ashok Leyland in the year 1955 after collaboration with British Leyland. Ashok Leyland is the second largest manufacturer of commercial vehicles in India (with a market share of 32.1% in 2016), the third largest manufacturer of buses in the world, and the tenth largest manufacturer of trucks.
OBJECTIVE:- To calculate beta and its significance
VIEWS AND REVIEWS:-
- Executive Chairman Dheeraj Hinduja said: “With the industry maintaining the growth in Q1, we have been able to post excellent results with focused market performance while reining in costs. We are pleased that we have continued to grow our market share in Q1. We are concurrently intensifying our efforts in international expansion. Through our Electric Vehicle subsidiary, Switch Mobility, we are actively moving towards net zero carbon mobility. The EV market is growing gradually, and we are geared to participating in this growth with a clear road map.
- Sanjeev Kumar, President- M&HCV, Ashok Leyland, said: “Our ULE buses represent the epitome of technology and safety in the commercial vehicle segment.”
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 Ashok Leyland 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:-
Ashok Leyland = -0.23+(-0.01) Nifty
N = 49, R square = 0.00, F =0.00 , P value = 0.96
The above equation shows us the relation between Nifty 50 index price and Ashok Leyland equity price. Ashok Leyland is dependent variable and Nifty 50 is independent variable. The “T” sign means the Nifty rises the Ashok Leyland also rises, vice versa. If Nifty rises by 1 unit the Ashok Leyland decreases by 1 paisa.
T state for B (Coefficient of Nifty) is -0.01 and the P value is 0.96 which means Nifty is statistically significant for Ashok Leyland at one percent level.
Number of observations are 49.
R square is 0.00 which means 0% of Ashok Leyland is explained by Nifty. Meaning 100% is the error due to the variable which are not in the model.
F is 0.00 and the P value of which is 0.96 overall model is statistically significant at 1% level.
CONCLUSION:- Beta is -0.01 is less than 1 it means Ashok Leyland is good for long term investment.
REFERENCES:- https://www.nseindia.com/reports-indices-historical-index-data
https://www.nseindia.com/get-quotes/equity?symbol=ASHOKLEY