Author: Kamakshi Agarwal
Introduction: Kalyani Investment Company Limited (KICL) was formed in 2009 through the demerger of the investment business of Kalyani Steels Limited and the amalgamation of three wholly-owned subsidiaries of Kalyani Steels. The company’s primary objective is to generate long-term capital appreciation for its shareholders through a diversified portfolio of investments in both listed and unlisted companies.
Objectives: To calculate beta and find its significance.
Views & Reviews: Pune-based Kalyani Group showcased its range of indigenous products at Lucknow. Three new artillery platforms unveiled by them at the show included MarG Extended Range, a 155mm/52 cal UltraLight Howitzer; Garuda-105 V2, which is a 105mm gun mounted on their Go Anywhere Vehicle; and 4×4 MGS, which is a 155mm/39 cal gun system mounted on a 4×4 platform.
Data collection:
Data is downloaded from https://www.nseindia.com/reports-indices-historical-index-data https://www.nseindia.com/get-quotes/equity?symbol=KICL for the period 1-10-2022 to 30-09-2023
Data analysis:
Regression Equation: Return of KICL = 2835.497-0.05431Nifty
(-1.21413) t Stat
N = 49, R2 = 0.03041, P Value =0.2308, F = 1.474102
Interpretation: In the above equation shows the relationship between Nifty 50 and KICL share. Return of KICL is dependent variable and Return of Nifty 50 is independent variable. Negative sign means if Nifty 50 price rises, KICL share price falls. If Nifty 50 price rises 1 unit, Britannia share price will fall by 0.05431 unit & vice versa. No of observation are 49. Figure which is written in bracket 1.21413 is t test for b. The P value for which is 0.2308 which means Nifty 50 is statistically insignificant at 5% level. R square is 0.03041 which means 3.041% of variances in KICL share price are explained by Nifty 50 in other words 96.959% is error means 96.959% is due to the variables which are no in the model. F is 1.474102. Overall model is statistically insignificant at 5% level.
Conclusion: Beta is 0.05431 is less than 1 it means KICL is good for long term investment.
References:
https://www.nseindia.com/reports-indices-historical-index-data https://www.nseindia.com/get-quotes/equity?symbol=KICL