Author- Smruti Sule
Batch: F1
Roll. No.: -21230023111
Introduction:
Shoppers Stop is home to a multitude of leading international and national brands for apparels, fragrances, accessories, cosmetics, footwear, home décor and furnishings catering to the needs of the entire family. We aspire to provide our customers a memorable international shopping experience. We are one of the largest chain of department stores across India.
Their Vision Is,
“To be an inspirational and trusted brand, transforming customers’ lives through fashion and delightful shopping experience every time”
They have a team of professional associates who strive endlessly to provide the best shopping experience to each of our customers. They have adopted a new philosophy of “Start Something New” to give retail a new dimension and innovation is their key driver to attain excellence in customer service.
Objective:
To Calculate Beta(β) and its significance of the equity stock of Shoppers Stop Ltd.
Data Collection:
Data was downloaded from nseindia.com for 01/11/2022 to 31/10/2023 for Nifty as well as for Shoppers Stop Ltd. All the columns were deleted for both the sheets except date and closing price and the Friday closing price were found for both. Returns for X and Y were calculated, X being Nifty and Y being Shoppers Stop Ltd. Finally, data analysis was done.
Weekly returns of Nifty = X
Weekly returns of Shoppers Stop Equity = Y
Linear Regression was carried out.
Data Analysis: –
The regression equation has the form:
Y = a + b*X
Where, Y is the dependent variable,
X is the independent variable,
a is the intercept,
b is the slope.
In our case Shoppers Stop Ltd is the dependent variable and Nifty 50 is the independent variable.
Intercept, a = 0.471
Slope, b = 0.021
R Square = 0.005454
F = 0.263213
So, the regression equation is given by-
Y (Shoppers Stop Ltd.) = 0471 + 0.021* X (Nifty)
The above equation shows us the relationship between Shoppers Stop Ltd and Nifty. The positive sign indicates that if Nifty rises then the price of Shoppers Stop Ltd shares will also rise and vice-versa. If Nifty rises one unit i.e., Nifty rises by one rupee then Equity will rise by 0.021 and vice versa. t-stat for b (co-efficient of Nifty) is 0.5130 and the p-value is 0.6102, statistically significant for Equity at 0.61% level. The number of observations is 50.
Conclusion: –
Beta is 0.021, which is lower than 1, it means Shoppers Stop Ltd is not good for short-term investment.
Reference: –
Views
According to Livemint, Shoppers Stop’s executive director and CEO Kavindra Mishra said that the company reported impressive financial results in Q2 2023. Mishra also said that the company saw a strong pick-up in the Beauty business and consistent performance from non-apparels.
Shoppers Stop is an Indian department store chain that sells clothing, accessories, and other products. Some say the company has a professional work environment, while others say the online shopping experience is poor.
Shoppers Stop has an overall rating of 3.9 out of 5 on Glassdoor, based on over 562 reviews. On Ambition Box, the company has a rating of 4.2 out of 5, based on 2,300 reviews. On Indeed, Shoppers Stop has a rating of 4.1 out of 5, based on 652 reviews. On Trustpilot, the company has a rating of 2.6 out of 5, based on 12 reviews.