Relation between Nifty50 and Muthoot Capital Services Limited
AUTHOR: MUDRA SONCHHATRA (FINANCE- 1)
INTRODUCTION: Muthoot Capital Services Ltd.
Established in 1994, Muthoot Capital Services Ltd. is one of India’s Most Progressive Automobile Finance Companies. With an aspiration to empower Indians and human ambition, we offer fund and non-fund-based financial services to retail, corporate, and institutional customers through the wide network of branches of Muthoot Fincorp Ltd. They also offer vital advice along with funds so you can give wheels to your dreams!
Muthoot Capital Services Ltd. promoted by the Muthoot Pappachan Group is a Non-Banking Finance Company (NBFC) registered with the Reserve Bank of India and its equity shares are listed in the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE).
Their portfolio includes retail finance products such as Two Wheeler Loans, Used Car Loans, and Investment Products in the form of Fixed Deposits.
Mission:
To provide timely small credit to millions of ordinary people, and also provide them with simple options to save their hard earnings.
Vision:
To be the most trusted financial service provider, at the door step of the common man, satisfying him immediately with easy and simple products.
OBJECTIVE OF THE REPORT
To Calculate Beta (β ) and its Significance of the Equity Stock of Muthoot Capital Services Ltd.
Views & reviews: Muthoot Capital Services Ltd. has TTM P/E ratio 4.47 as compared to the sector P/E of 30.64. There are 6 analysts who have initiated coverage on Muthoot Capital Services Ltd.. There are 4 analysts who have given it a strong buy rating & 1 analyst have given it a buy rating.
Data Collection:
- Firstly, I visited the NSE website.
- Then, I clicked on the Historical Data option under the Data and Reports section.
- I downloaded the data of Muthoot Capital Services Ltd. and Nifty 50 index from 01-Nov-2022 to 31-Oct-2023 in excel format.
- In the end, I sorted the data in Excel for analysis.
Data Analysis:
Equation: Y= 0.577538133+ 1.541599317X
Interpretation:
The above equation shows the relation between Nifty50 and Muthoot Capital Services Ltd.
Return of Muthoot Capital Services Ltd. is dependent variable and return of Nifty50 is independent variable.
A positive sign means if Nifty50 rises by 1 unit then the share price of Muthoot Capital Services Ltd. will also rise by 1.541599317 and vice-versa.
The number of observations are 49.
2.401976 is the t-stat for Y, the p-value for which is 0.020312.
R square is 0.109333796
which means 0.1% of variances in Muthoot Capital Services Ltd. are explained by Nifty.
F is 5.769489, p-value for this is 0.020312 which means the model is statistically significant at the 1% level.
Conclusion: Beta is 1.541599317
which is more than 1, it means that Muthoot Capital Service Limited is good for Short term investment.
Reference:
https://www.moneycontrol.com/india/stockpricequote/finance-investments/muthootcapitalservices/MCS02
https://www.nseindia.com/get-quotes/equity?symbol=MUTHOOTCAP
https://www.nseindia.com/get-quotes/equity?symbol=MUTHOOTCAP