Author: Khushi Khandelwal
Introduction: Born in 1920 as Gahagan Paints, Kansai Nerolac has transformed through a century of innovation and unwavering passion, now standing as India’s second-largest paint company. Today, it’s a dynamic blend of Japanese technology and Indian spirit, excelling in both decorative and industrial coatings. From vibrant homes to gleaming cars, Nerolac’s colors touch countless lives, driven by a commitment to sustainability and customer delight. This legacy of unwavering dedication paints a bright future for Kansai Nerolac, where every brushstroke promises endless possibilities.
Objectives: To calculate beta and find its significance.
Views & Reviews: Nerolac has also collaborated with famous designers and architects to create unique color palettes and collections. This association with renowned personalities and a focus on innovation has helped Nerolac solidify its position as a leading paint brand in India.
Data Collection: Data is downloaded from https://www.nseindia.com/reports-indices-historical-index-data, https://www.nseindia.com/get-quotes/equity?symbol=KANSAINER for the period 1-10-22 to 30-09-23.
Regression Equation: Return of Kansai Nerolac Paints Limited = -275.162 + 0.031479Nifty50
(4.215168912) t Stat
N = 49, R2 = 0.274329, P Value = 0.00011242, F = 17.76764895
Interpretation: In the above equation shows the relationship between Nifty 50 and Kansai Nerolac Paints Limited share. Return of Kansai Nerolac Paints Limited is dependent variable and Return of Nifty 50 is independent variable. Negative sign means if Nifty 50 price rises, Britannia share price falls. If Nifty 50 price rises 1 unit, Britannia share price will fall by 0.031479 unit & vice versa. No of observation are 49. Figure which is written in bracket 4.215168912 is t test for b. The P value for which is 0.00011242 which means Nifty 50 is statistically insignificant at 5% level. R square is 0.274329 which means 27.43% of variances in Britannia share price are explained by Nifty 50 in other words 72.57% is error means 72.57% is due to the variables which are no in the model. F is 17.76764895. Overall model is statistically insignificant at 5% level.
Conclusion: Beta is 0.031479 is less than 1 it means Kansai Nerolac Paints Limited is good for long term investment.
References:
https://www.nseindia.com/reports-indices-historical-index-data