Apollo Tyres Ltd. came into inception in 1972 and has since been a trusted name in the business of manufacture and sale of tyres. With our corporate headquarters in Gurgaon, India, we cater to over a 100 countries across the globe. Our first plant was commissioned in Perambra, Thrissur, Kerala, India in 1975. In 2009, we acquired the Netherlands-based tyre maker Vredestein Banden B.V. which was later renamed as Apollo Vredestein B.V. Our manufacturing is spread over five facilities in India and one each in the Netherlands and Hungary.
Objectives:
To Calculate Beta And Find Its Significance.
View And Reviews:
Apollo Tyres Limited has earned its place as a reliable and quality-driven player in the competitive tire market. With a global presence and a diverse range of products catering to various vehicles, the company has consistently delivered performance and durability.
Data Collection:
Data was downloaded from nseindia.com for 01/11/2022 to 31/10/2023 for Nifty as well as for apollo tyre. All the columns were deleted for both the sheets except date and closing price and the Friday closing price were found for both of them. Returns for X and Y were calculate, X being Nifty and Y being Apollo Tyre . Finally data analysis was done.
Data Analysis
Y = 0.362 + 1.018 X
R Square = 0.172556007
F = 0.002996256
The above equation shows the relationship between Nifty 50 and Apollo Tyre. Return of Apollo Tyre is dependent variable and Return of Nifty 50 is independent variable. Positive sign means if Nifty50 increases Apollo Tyre also increases. If Nifty50 price rises by 1 unit, Apollo Tyre Share price will rise by 0.48 and vice versa. No of observation are 50. Figure which is written in bracket that is (3.130723166) is t- stat for b. The P value for which is 0.002996256 which means Nifty 50 is statistically insignificant at 5% level. R square 0.172556007 is which means 17.25% of variances in Apollo Tyre share price are explained by Nifty 50 in other words 0.31710 is error means 317.10% is due to the variables which are not in the model. F is 0.0029962. Overall model is statistically insignificant at 5% level.
Conclusion:
Beta 1.018926 is which is more than 1, therefore it is good for Short term investment.
References:
https://corporate.apollotyres.com/
https://finance.yahoo.com/